Document:

EX 10-1

 

OPTION
agreement

 

THIS
is effective as of the 17 day of June, 2011.

 

AMONG:

 

Minas
de Alta Ley La Palma, S.A. de C.V. a company incorporated under the laws of Mexico having his business address at Lázaro
Cárdenas 146BIS Parque Industrial Lagunero Gómez Palacio , Dgo. , México. C.P.
35090

 

(the
“Optionor”)

 

AND:

 

Minera
Arriba S.A. de C.V, a company incorporated under the laws of Mexico having an address for business at 2402-1277 Melville Street,
V6E 0A4 Vancouver, B.C. Canadá.

 

(the
“Optionee”)

 

WHEREAS:

 

A.                  The
Optionor is the sole legal and beneficial owner of 100% of the right, title and interest in and to the mineral concessions located
in Batopilas Chihuahua, Mexico as more particularly described in Schedule A to this Agreement (the “Property”);
and

 

B.                   The
Optionor has agreed to sell to the Optionee 50% of the Optionor’s right title and interest in the Property and grant the
exclusive and irrevocable right and option to the Optionee to acquire an additional thirty percent (30%) of the Optionor’s
right, title and interest in the Property free and clear of all Encumbrances (as defined below), based on the terms and conditions
provided herein (the “Option”).

 

NOW
THEREFORE in consideration of the payment of $10.00 from each party to the other, and the premises and the respective covenants,
agreements, representations and warranties of the Parties herein contained and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereto covenant and agree as follows:

 

	1.		DEFINITIONS

 

	1.1		For the purposes of this Agreement:

 

		(a)	“Assets”
                                                                                                                                                   mean
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Exploration
                                                                                                                                                   Data;
	 	 	 
		(b)	“Business
                                                                                                                                                   Day”
                                                                                                                                                   means
                                                                                                                                                   a
                                                                                                                                                   day
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   a
                                                                                                                                                   Saturday,
                                                                                                                                                   Sunday
                                                                                                                                                   or
                                                                                                                                                   a
                                                                                                                                                   day
                                                                                                                                                   on
                                                                                                                                                   which
                                                                                                                                                   chartered
                                                                                                                                                   banks
                                                                                                                                                   in
                                                                                                                                                   Vancouver,
                                                                                                                                                   British
                                                                                                                                                   Columbia
                                                                                                                                                   are
                                                                                                                                                   closed;
	 	 	 
		(c)	“Closing”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   ascribed
                                                                                                                                                   to
                                                                                                                                                   such
                                                                                                                                                   term
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   10.1
                                                                                                                                                   hereto;
	 	 	 
		(d)	“Closing
                                                                                                                                                   Date”
                                                                                                                                                   means
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   that
                                                                                                                                                   all
                                                                                                                                                   conditions
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   3.1
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   met;

 

    	 

    	 

    

 

		(e)	“Commencement
                                                                                                                                                   of
                                                                                                                                                   Commercial
                                                                                                                                                   Production”
                                                                                                                                                   means:

 

	(i) 		if a mill is located on the
Property, the last calendar day of a period of 40 consecutive calendar days in which, for not less than 30 calendar days, the
mill processed ore from the Property at 60% of its rated concentrating capacity, or

 

	(ii)		if a mill is not located on
the Property, the last day of a period of 30 consecutive calendar days during which ore has been shipped from the Property on
a reasonably regular basis for the purpose of earning revenues,

 

but
any period of time during which ore or concentrate is shipped from the Property for testing purposes, a bulk sample or during
which milling operations are undertaken as initial tune-up, will not be taken into account in determining the date of Commencement
of Commercial Production;

 

		(f)	“Common
                                                                                                                                                   Shares”
                                                                                                                                                   means
                                                                                                                                                   common
                                                                                                                                                   shares
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   capital
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		(g)	“Dispute”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   26.1;
	 	 	 
		(h)	“Encumbrance”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   2.2(a) herein;
	 	 	 
		(i)	“Exploration
                                                                                                                                                   Data”
                                                                                                                                                   means
                                                                                                                                                   a
                                                                                                                                                   digital
                                                                                                                                                   copy
                                                                                                                                                   and
                                                                                                                                                   hardcopy
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   data
                                                                                                                                                   related
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   including
                                                                                                                                                   drill
                                                                                                                                                   logs,
                                                                                                                                                   maps
                                                                                                                                                   and
                                                                                                                                                   reports
                                                                                                                                                   generated
                                                                                                                                                   from
                                                                                                                                                   said
                                                                                                                                                   data,
                                                                                                                                                   collected
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   and
                                                                                                                                                   its
                                                                                                                                                   contractors
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(j)	“Exploration
                                                                                                                                                   Expenditures”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   ascribed
                                                                                                                                                   to
                                                                                                                                                   such
                                                                                                                                                   term
                                                                                                                                                   in
                                                                                                                                                   Schedule
                                                                                                                                                   “B”
                                                                                                                                                   hereto;
	 	 	 
		(k)	“Governmental
                                                                                                                                                   Authorities”
                                                                                                                                                   mean
                                                                                                                                                   any
                                                                                                                                                   domestic
                                                                                                                                                   or
                                                                                                                                                   foreign
                                                                                                                                                   government,
                                                                                                                                                   whether
                                                                                                                                                   federal,
                                                                                                                                                   provincial,
                                                                                                                                                   state,
                                                                                                                                                   territorial,
                                                                                                                                                   local,
                                                                                                                                                   regional,
                                                                                                                                                   municipal
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   political
                                                                                                                                                   jurisdiction,
                                                                                                                                                   and
                                                                                                                                                   any
                                                                                                                                                   agency,
                                                                                                                                                   authority,
                                                                                                                                                   instrumentality,
                                                                                                                                                   court,
                                                                                                                                                   tribunal,
                                                                                                                                                   board,
                                                                                                                                                   commission,
                                                                                                                                                   bureau,
                                                                                                                                                   arbitrator,
                                                                                                                                                   arbitration
                                                                                                                                                   tribunal
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   tribunal,
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   quasi
                                                                                                                                                   governmental
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   entity,
                                                                                                                                                   insofar
                                                                                                                                                   as
                                                                                                                                                   it
                                                                                                                                                   exercises
                                                                                                                                                   a
                                                                                                                                                   legislative,
                                                                                                                                                   judicial,
                                                                                                                                                   regulatory,
                                                                                                                                                   administrative,
                                                                                                                                                   expropriation
                                                                                                                                                   or
                                                                                                                                                   taxing
                                                                                                                                                   power
                                                                                                                                                   or
                                                                                                                                                   function
                                                                                                                                                   of
                                                                                                                                                   or
                                                                                                                                                   pertaining
                                                                                                                                                   to
                                                                                                                                                   government;
	 	 	 
		(l)	“Material
                                                                                                                                                   Adverse
                                                                                                                                                   Effect”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   2.2(c),
herein;
	 	 	 
		(m)	“NI
                                                                                                                                                          43-101”
                                                                                                                                                          means
                                                                                                                                                          National
                                                                                                                                                          Instrument
                                                                                                                                                          43-101
                                                                                                                                                          -
                                                                                                                                                          Standards
                                                                                                                                                          Of
                                                                                                                                                          Disclosure
                                                                                                                                                          For
                                                                                                                                                          Mineral
                                                                                                                                                          Projects;
	 	 	 
		(n)	“NSR”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   ascribed
                                                                                                                                                   to
                                                                                                                                                   such
                                                                                                                                                   term
                                                                                                                                                   in
                                                                                                                                                   Schedule
                                                                                                                                                   “C”
                                                                                                                                                   hereto;
	 	 	 
		(o)	“Option”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   recital
                                                                                                                                                   B;
	 	 	 
		(p)	“Option
                                                                                                                                                   Period”
                                                                                                                                                   means
                                                                                                                                                   the
                                                                                                                                                   period
                                                                                                                                                   of
                                                                                                                                                   time
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   to
                                                                                                                                                   and
                                                                                                                                                   including
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   exercise
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Option
                                                                                                                                                   or
                                                                                                                                                   termination
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Options;

 

    	- 2 -

    	 

    

 

		(q)	“Party”
                                                                                                                                                   means
                                                                                                                                                   any
                                                                                                                                                   party
                                                                                                                                                   to
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   “Parties”
                                                                                                                                                   mean
                                                                                                                                                   all
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   parties;
	 	 	 
		(r)	“Permitted
                                                                                                                                                   Encumbrances”
                                                                                                                                                   means
                                                                                                                                                   any
                                                                                                                                                   encumbrances
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   paid
                                                                                                                                                   to
                                                                                                                                                   Governmental
                                                                                                                                                   Authorities
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   applicable
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   Mexico;
	 	 	 
		(s)	“Personal
                                                                                                                                                   Information”
                                                                                                                                                   means
                                                                                                                                                   any
                                                                                                                                                   information
                                                                                                                                                   about
                                                                                                                                                   an
                                                                                                                                                   identifiable
                                                                                                                                                   individual
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   and
                                                                                                                                                   includes
                                                                                                                                                   information
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   disclosure
                                                                                                                                                   required
                                                                                                                                                   by
                                                                                                                                                   any
                                                                                                                                                   stock
                                                                                                                                                   exchanges
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   applicable
                                                                                                                                                   laws;
	 	 	 
		(t)	“Property”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   recital
                                                                                                                                                   A
                                                                                                                                                   to
                                                                                                                                                   this
                                                                                                                                                   Agreement,
                                                                                                                                                   including
                                                                                                                                                   any
                                                                                                                                                   replacement
                                                                                                                                                   or
                                                                                                                                                   successor
                                                                                                                                                   area
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   mining
                                                                                                                                                   leases
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   mining
                                                                                                                                                   interests
                                                                                                                                                   derived
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(u)	“Transaction”
                                                                                                                                                   means
                                                                                                                                                   the
                                                                                                                                                   sale
                                                                                                                                                   of
                                                                                                                                                   a
                                                                                                                                                   50%
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   grant
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Option
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   in
                                                                                                                                                   consideration
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   cash,
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   and
                                                                                                                                                   Exploration
                                                                                                                                                   Expenditures
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   herein;
	 	 	 
		(v)	“U.S.
                                                                                                                                                   person”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   15.2(b);
and
	 	 	 
		(w)	“U.S.
                                                                                                                                                   Securities
                                                                                                                                                   Act”
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   meaning
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   15.2(b).

 

	2.		REPRESENTATIONS
                                                                                                                                                                                                                                                                                        AND
                                                                                                                                                                                                                                                                                        WARRANTIES
                                                                                                                                                                                                                                                                                        OF
                                                                                                                                                                                                                                                                                        THE
                                                                                                                                                                                                                                                                                        PARTIES

 

	2.1		Each Party represents and warrants
to the other Party that:

 

		(a)	each
                                                                                                                                                   has
                                                                                                                                                   the
                                                                                                                                                   full
                                                                                                                                                   right,
                                                                                                                                                   power,
                                                                                                                                                   capacity
                                                                                                                                                   and
                                                                                                                                                   authority
                                                                                                                                                   to
                                                                                                                                                   enter
                                                                                                                                                   into,
                                                                                                                                                   execute
                                                                                                                                                   and
                                                                                                                                                   deliver
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   bound
                                                                                                                                                   by
                                                                                                                                                   its
                                                                                                                                                   terms;
	 	 	 
		(b)	the
                                                                                                                                                   consummation
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   will
                                                                                                                                                   not
                                                                                                                                                   conflict
                                                                                                                                                   with
                                                                                                                                                   nor
                                                                                                                                                   result
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   breach
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   agreement
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   instrument
                                                                                                                                                   whatever
                                                                                                                                                   to
                                                                                                                                                   which
                                                                                                                                                   each
                                                                                                                                                   Party
                                                                                                                                                   hereto
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   party
                                                                                                                                                   or
                                                                                                                                                   by
                                                                                                                                                   which
                                                                                                                                                   each
                                                                                                                                                   Party
                                                                                                                                                   is
                                                                                                                                                   bound
                                                                                                                                                   or
                                                                                                                                                   to
                                                                                                                                                   which
                                                                                                                                                   each
                                                                                                                                                   Party
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   subject;
	 	 	 
		(c)	no
                                                                                                                                                   proceedings
                                                                                                                                                   are
                                                                                                                                                   pending
                                                                                                                                                   for,
                                                                                                                                                   and
                                                                                                                                                   each
                                                                                                                                                   Party
                                                                                                                                                   is
                                                                                                                                                   unaware
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   basis
                                                                                                                                                   for,
                                                                                                                                                   the
                                                                                                                                                   institution
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   proceedings
                                                                                                                                                   leading
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   placing
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Party
                                                                                                                                                   in
                                                                                                                                                   bankruptcy
                                                                                                                                                   or
                                                                                                                                                   subject
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   other
                                                                                                                                                   laws
                                                                                                                                                   governing
                                                                                                                                                   the
                                                                                                                                                   affairs
                                                                                                                                                   of
                                                                                                                                                   insolvent
                                                                                                                                                   parties;
	 	 	 
		(d)	each
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   corporation
                                                                                                                                                   duly
                                                                                                                                                   organized,
                                                                                                                                                   validly
                                                                                                                                                   existing
                                                                                                                                                   and
                                                                                                                                                   in
                                                                                                                                                   good
                                                                                                                                                   standing
                                                                                                                                                   under
                                                                                                                                                   its
                                                                                                                                                   applicable
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   incorporation
                                                                                                                                                   and
                                                                                                                                                   has
                                                                                                                                                   all
                                                                                                                                                   requisite
                                                                                                                                                   corporate
                                                                                                                                                   power
                                                                                                                                                   and
                                                                                                                                                   authority
                                                                                                                                                   to
                                                                                                                                                   own
                                                                                                                                                   its
                                                                                                                                                   properties
                                                                                                                                                   and
                                                                                                                                                   carry
                                                                                                                                                   on
                                                                                                                                                   its
                                                                                                                                                   business
                                                                                                                                                   as
                                                                                                                                                   now
                                                                                                                                                   being
                                                                                                                                                   conducted;
	 	 	 
		(e)	the
                                                                                                                                                   execution,
                                                                                                                                                   delivery
                                                                                                                                                   and
                                                                                                                                                   performance
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   matters
                                                                                                                                                   contemplated
                                                                                                                                                   herein
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   duly
                                                                                                                                                   authorized
                                                                                                                                                   by
                                                                                                                                                   all
                                                                                                                                                   necessary
                                                                                                                                                   corporate
                                                                                                                                                   action
                                                                                                                                                   and
                                                                                                                                                   no
                                                                                                                                                   other
                                                                                                                                                   corporate
                                                                                                                                                   proceedings
                                                                                                                                                   are
                                                                                                                                                   necessary
                                                                                                                                                   to
                                                                                                                                                   authorize
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   matters
                                                                                                                                                   contemplated
                                                                                                                                                   herein;
                                                                                                                                                   and

 

    	- 3 -

    	 

    

 

		(f)	the
                                                                                                                                                   Agreement,
                                                                                                                                                   when
                                                                                                                                                   delivered
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   terms
                                                                                                                                                   hereof,
                                                                                                                                                   will
                                                                                                                                                   constitute
                                                                                                                                                   a
                                                                                                                                                   valid
                                                                                                                                                   and
                                                                                                                                                   binding
                                                                                                                                                   obligation
                                                                                                                                                   enforceable
                                                                                                                                                   against
                                                                                                                                                   the
                                                                                                                                                   Party
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   its
                                                                                                                                                   terms,
                                                                                                                                                   except
                                                                                                                                                   (i)
                                                                                                                                                   as
                                                                                                                                                   such
                                                                                                                                                   enforceability
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   limited
                                                                                                                                                   by
                                                                                                                                                   applicable
                                                                                                                                                   bankruptcy,
                                                                                                                                                   insolvency,
                                                                                                                                                   reorganization,
                                                                                                                                                   moratorium,
                                                                                                                                                   liquidation
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   similar
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   general
                                                                                                                                                   application
                                                                                                                                                   affecting
                                                                                                                                                   enforcement
                                                                                                                                                   of
                                                                                                                                                   creditors’
                                                                                                                                                   rights
                                                                                                                                                   generally
                                                                                                                                                   and
                                                                                                                                                   (ii)
                                                                                                                                                   as
                                                                                                                                                   limited
                                                                                                                                                   by
                                                                                                                                                   laws
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   availability
                                                                                                                                                   of
                                                                                                                                                   specific
                                                                                                                                                   performance,
                                                                                                                                                   injunctive
                                                                                                                                                   relief
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   equitable
                                                                                                                                                   remedies.

 

	2.2		The Optionor represents and
warrants to the Optionee that:

 

		(a)	except
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   Permitted
                                                                                                                                                   Encumbrances,
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   is
                                                                                                                                                   the
                                                                                                                                                   sole
                                                                                                                                                   legal
                                                                                                                                                   and
                                                                                                                                                   beneficial
                                                                                                                                                   owner
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   right,
                                                                                                                                                   title
                                                                                                                                                   and
                                                                                                                                                   interest
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   is
                                                                                                                                                   free
                                                                                                                                                   and
                                                                                                                                                   clear
                                                                                                                                                   of,
                                                                                                                                                   and
                                                                                                                                                   from,
                                                                                                                                                   all
                                                                                                                                                   claims,
                                                                                                                                                   liens,
                                                                                                                                                   security
                                                                                                                                                   interests,
                                                                                                                                                   charges
                                                                                                                                                   and
                                                                                                                                                   encumbrances
                                                                                                                                                   (each,
                                                                                                                                                   an
                                                                                                                                                   “Encumbrance”)
                                                                                                                                                   and
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   subject
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   judgment,
                                                                                                                                                   order
                                                                                                                                                   or
                                                                                                                                                   decree
                                                                                                                                                   entered
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   lawsuit
                                                                                                                                                   or
                                                                                                                                                   proceeding;
	 	 	 
		(b)	neither
                                                                                                                                                   the
                                                                                                                                                   execution,
                                                                                                                                                   delivery
                                                                                                                                                   and
                                                                                                                                                   performance
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement,
                                                                                                                                                   nor
                                                                                                                                                   the
                                                                                                                                                   exercise
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Options,
                                                                                                                                                   will
                                                                                                                                                   conflict
                                                                                                                                                   with,
                                                                                                                                                   result
                                                                                                                                                   in
                                                                                                                                                   a
                                                                                                                                                   violation
                                                                                                                                                   of,
                                                                                                                                                   cause
                                                                                                                                                   a
                                                                                                                                                   default
                                                                                                                                                   under
                                                                                                                                                   (with
                                                                                                                                                   or
                                                                                                                                                   without
                                                                                                                                                   notice,
                                                                                                                                                   lapse
                                                                                                                                                   of
                                                                                                                                                   time
                                                                                                                                                   or
                                                                                                                                                   both)
                                                                                                                                                   or
                                                                                                                                                   give
                                                                                                                                                   rise
                                                                                                                                                   to
                                                                                                                                                   a
                                                                                                                                                   right
                                                                                                                                                   of
                                                                                                                                                   termination,
                                                                                                                                                   amendment,
                                                                                                                                                   cancellation
                                                                                                                                                   or
                                                                                                                                                   acceleration
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   obligation
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   loss
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   material
                                                                                                                                                   benefit
                                                                                                                                                   under,
                                                                                                                                                   or
                                                                                                                                                   result
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   creation
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   Encumbrance
                                                                                                                                                   upon
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   instrument,
                                                                                                                                                   permit,
                                                                                                                                                   license,
                                                                                                                                                   judgment,
                                                                                                                                                   order,
                                                                                                                                                   decree,
                                                                                                                                                   statute,
                                                                                                                                                   law,
                                                                                                                                                   ordinance,
                                                                                                                                                   rule
                                                                                                                                                   or
                                                                                                                                                   regulation
                                                                                                                                                   applicable
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(c)	there
                                                                                                                                                   is
                                                                                                                                                   no
                                                                                                                                                   basis
                                                                                                                                                   for
                                                                                                                                                   and
                                                                                                                                                   there
                                                                                                                                                   is
                                                                                                                                                   no
                                                                                                                                                   action,
                                                                                                                                                   suit,
                                                                                                                                                   judgment,
                                                                                                                                                   claim,
                                                                                                                                                   demand
                                                                                                                                                   or
                                                                                                                                                   proceeding
                                                                                                                                                   outstanding
                                                                                                                                                   or
                                                                                                                                                   pending,
                                                                                                                                                   or
                                                                                                                                                   threatened
                                                                                                                                                   against
                                                                                                                                                   or
                                                                                                                                                   affecting
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   that,
                                                                                                                                                   if
                                                                                                                                                   adversely
                                                                                                                                                   resolved
                                                                                                                                                   or
                                                                                                                                                   determined,
                                                                                                                                                   would
                                                                                                                                                   have
                                                                                                                                                   a
                                                                                                                                                   material
                                                                                                                                                   adverse
                                                                                                                                                   effect
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   (a
                                                                                                                                                   “Material
                                                                                                                                                   Adverse
                                                                                                                                                   Effect”)
                                                                                                                                                   and
                                                                                                                                                   there
                                                                                                                                                   is
                                                                                                                                                   no
                                                                                                                                                   reasonable
                                                                                                                                                   basis
                                                                                                                                                   for
                                                                                                                                                   any
                                                                                                                                                   claim
                                                                                                                                                   or
                                                                                                                                                   action
                                                                                                                                                   that,
                                                                                                                                                   based
                                                                                                                                                   upon
                                                                                                                                                   the
                                                                                                                                                   likelihood
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   being
                                                                                                                                                   asserted
                                                                                                                                                   and
                                                                                                                                                   its
                                                                                                                                                   success
                                                                                                                                                   if
                                                                                                                                                   asserted,
                                                                                                                                                   would
                                                                                                                                                   have
                                                                                                                                                   such
                                                                                                                                                   a
                                                                                                                                                   Material
                                                                                                                                                   Adverse
                                                                                                                                                   Effect;
	 	 	 
		(d)	the
                                                                                                                                                   Optionor
                                                                                                                                                   holds
                                                                                                                                                   all
                                                                                                                                                   permits,
                                                                                                                                                   licences,
                                                                                                                                                   consents
                                                                                                                                                   and
                                                                                                                                                   authorities
                                                                                                                                                   issued
                                                                                                                                                   by
                                                                                                                                                   all
                                                                                                                                                   Governmental
                                                                                                                                                   Authorities
                                                                                                                                                   which
                                                                                                                                                   are
                                                                                                                                                   necessary
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   ownership
                                                                                                                                                   and
                                                                                                                                                   mineral
                                                                                                                                                   exploration
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(e)	the
                                                                                                                                                   Property
                                                                                                                                                   has
                                                                                                                                                   been
                                                                                                                                                   properly
                                                                                                                                                   staked,
                                                                                                                                                   located
                                                                                                                                                   and
                                                                                                                                                   recorded
                                                                                                                                                   pursuant
                                                                                                                                                   to
                                                                                                                                                   all
                                                                                                                                                   applicable
                                                                                                                                                   laws
                                                                                                                                                   and
                                                                                                                                                   regulations
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   jurisdiction
                                                                                                                                                   in
                                                                                                                                                   which
                                                                                                                                                   they
                                                                                                                                                   are
                                                                                                                                                   located
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   respective
                                                                                                                                                   interest
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   is
                                                                                                                                                   each
                                                                                                                                                   in
                                                                                                                                                   good
                                                                                                                                                   standing;
	 	 	 
		(f)	except
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   Permitted
                                                                                                                                                   Encumbrances,
                                                                                                                                                   and
                                                                                                                                                   as
                                                                                                                                                   contemplated
                                                                                                                                                   herein,
                                                                                                                                                   there
                                                                                                                                                   are
                                                                                                                                                   no
                                                                                                                                                   outstanding
                                                                                                                                                   agreements
                                                                                                                                                   or
                                                                                                                                                   options
                                                                                                                                                   to
                                                                                                                                                   acquire
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   portion
                                                                                                                                                   or
                                                                                                                                                   interest
                                                                                                                                                   thereof,
                                                                                                                                                   and
                                                                                                                                                   no
                                                                                                                                                   person,
                                                                                                                                                   firm
                                                                                                                                                   or
                                                                                                                                                   corporation,
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   ,
                                                                                                                                                   has
                                                                                                                                                   any
                                                                                                                                                   proprietary
                                                                                                                                                   or
                                                                                                                                                   possessory
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(g)	there
                                                                                                                                                   are
                                                                                                                                                   no
                                                                                                                                                   outstanding
                                                                                                                                                   orders
                                                                                                                                                   or
                                                                                                                                                   directions
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   environmental
                                                                                                                                                   matters
                                                                                                                                                   requiring
                                                                                                                                                   any
                                                                                                                                                   work,
                                                                                                                                                   repairs,
                                                                                                                                                   construction
                                                                                                                                                   or
                                                                                                                                                   capital
                                                                                                                                                   expenditures
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   conduct
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   operations
                                                                                                                                                   related
                                                                                                                                                   thereto,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   received
                                                                                                                                                   any
                                                                                                                                                   notice
                                                                                                                                                   of
                                                                                                                                                   same
                                                                                                                                                   and
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   aware
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   basis
                                                                                                                                                   on
                                                                                                                                                   which
                                                                                                                                                   any
                                                                                                                                                   such
                                                                                                                                                   orders
                                                                                                                                                   or
                                                                                                                                                   direction
                                                                                                                                                   could
                                                                                                                                                   be
                                                                                                                                                   made;

 

    	- 4 -

    	 

    

 

		(h)	the
                                                                                                                                                   Optionor’s
                                                                                                                                                   ownership
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   is
                                                                                                                                                   in
                                                                                                                                                   compliance
                                                                                                                                                   with,
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   in
                                                                                                                                                   default
                                                                                                                                                   or
                                                                                                                                                   violation
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   material
                                                                                                                                                   respect
                                                                                                                                                   under,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   been
                                                                                                                                                   charged
                                                                                                                                                   with
                                                                                                                                                   or
                                                                                                                                                   received
                                                                                                                                                   any
                                                                                                                                                   notice
                                                                                                                                                   at
                                                                                                                                                   any
                                                                                                                                                   time
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   material
                                                                                                                                                   violation
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   statute,
                                                                                                                                                   law,
                                                                                                                                                   ordinance,
                                                                                                                                                   regulation,
                                                                                                                                                   rule,
                                                                                                                                                   decree
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   applicable
                                                                                                                                                   regulation
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Optionor’s
                                                                                                                                                   ownership
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(i)	the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   duly
                                                                                                                                                   filed
                                                                                                                                                   all
                                                                                                                                                   reports
                                                                                                                                                   and
                                                                                                                                                   returns
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   filed
                                                                                                                                                   with
                                                                                                                                                   Governmental
                                                                                                                                                   Authorities
                                                                                                                                                   and
                                                                                                                                                   have
                                                                                                                                                   obtained
                                                                                                                                                   all
                                                                                                                                                   governmental
                                                                                                                                                   permits
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   governmental
                                                                                                                                                   consents,
                                                                                                                                                   except
                                                                                                                                                   as
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   required
                                                                                                                                                   after
                                                                                                                                                   the
                                                                                                                                                   execution
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   permits
                                                                                                                                                   and
                                                                                                                                                   consents
                                                                                                                                                   are
                                                                                                                                                   in
                                                                                                                                                   full
                                                                                                                                                   force
                                                                                                                                                   and
                                                                                                                                                   effect,
                                                                                                                                                   and
                                                                                                                                                   no
                                                                                                                                                   proceedings
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   suspension
                                                                                                                                                   or
                                                                                                                                                   cancellation
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   of
                                                                                                                                                   them,
                                                                                                                                                   and
                                                                                                                                                   no
                                                                                                                                                   investigation
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   of
                                                                                                                                                   them
                                                                                                                                                   is
                                                                                                                                                   pending
                                                                                                                                                   or
                                                                                                                                                   threatened
                                                                                                                                                   and
                                                                                                                                                   none
                                                                                                                                                   of
                                                                                                                                                   them
                                                                                                                                                   will
                                                                                                                                                   be
                                                                                                                                                   adversely
                                                                                                                                                   affected
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   entry
                                                                                                                                                   into
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   Transaction;
	 	 	 
		(j)	the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   held
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   in
                                                                                                                                                   material
                                                                                                                                                   compliance
                                                                                                                                                   with
                                                                                                                                                   all
                                                                                                                                                   laws,
                                                                                                                                                   rules,
                                                                                                                                                   statutes,
                                                                                                                                                   ordinances,
                                                                                                                                                   orders
                                                                                                                                                   and
                                                                                                                                                   regulations
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   received
                                                                                                                                                   any
                                                                                                                                                   notice
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   violation
                                                                                                                                                   thereof,
                                                                                                                                                   nor
                                                                                                                                                   is
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   aware
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   valid
                                                                                                                                                   basis
                                                                                                                                                   therefore;
	 	 	 
		(k)	there
                                                                                                                                                   is
                                                                                                                                                   no
                                                                                                                                                   adverse
                                                                                                                                                   claim
                                                                                                                                                   or
                                                                                                                                                   challenge
                                                                                                                                                   against
                                                                                                                                                   or
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   ownership
                                                                                                                                                   of
                                                                                                                                                   or
                                                                                                                                                   title
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   part
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   and
                                                                                                                                                   there
                                                                                                                                                   is
                                                                                                                                                   no
                                                                                                                                                   basis
                                                                                                                                                   for
                                                                                                                                                   such
                                                                                                                                                   adverse
                                                                                                                                                   claim
                                                                                                                                                   or
                                                                                                                                                   challenge
                                                                                                                                                   which
                                                                                                                                                   may
                                                                                                                                                   affect
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(l)	the
                                                                                                                                                   Optionor
                                                                                                                                                   has
                                                                                                                                                   advised
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   material
                                                                                                                                                   information
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   mineral
                                                                                                                                                   potential
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   of
                                                                                                                                                   which
                                                                                                                                                   it
                                                                                                                                                   has
                                                                                                                                                   knowledge;
	 	 	 
		(m)	no
                                                                                                                                                   filing
                                                                                                                                                   or
                                                                                                                                                   registration
                                                                                                                                                   with,
                                                                                                                                                   no
                                                                                                                                                   notice
                                                                                                                                                   to
                                                                                                                                                   and
                                                                                                                                                   no
                                                                                                                                                   permit,
                                                                                                                                                   authorization,
                                                                                                                                                   consent,
                                                                                                                                                   or
                                                                                                                                                   approval
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   public
                                                                                                                                                   or
                                                                                                                                                   Governmental
                                                                                                                                                   Authorities
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   person
                                                                                                                                                   or
                                                                                                                                                   entity
                                                                                                                                                   is
                                                                                                                                                   necessary
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   exercise
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Options
                                                                                                                                                   contemplated
                                                                                                                                                   by
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   or
                                                                                                                                                   to
                                                                                                                                                   enable
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   to
                                                                                                                                                   acquire
                                                                                                                                                   up
                                                                                                                                                   to
                                                                                                                                                   a
                                                                                                                                                   one
                                                                                                                                                   hundred
                                                                                                                                                   percent
                                                                                                                                                   (100%)
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   exercise
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Options;
	 	 	 
		(n)	there
                                                                                                                                                   are
                                                                                                                                                   no
                                                                                                                                                   mine
                                                                                                                                                   workings
                                                                                                                                                   or
                                                                                                                                                   waste
                                                                                                                                                   dumps
                                                                                                                                                   or
                                                                                                                                                   mine
                                                                                                                                                   tailings
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		(o)	the
                                                                                                                                                   Property
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   subject
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   mining
                                                                                                                                                   royalties
                                                                                                                                                   imposed
                                                                                                                                                   by
                                                                                                                                                   any
                                                                                                                                                   Governmental
                                                                                                                                                   Authorities;
                                                                                                                                                   and
	 	 	 
		(p)	the
                                                                                                                                                   Optionor
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   a
                                                                                                                                                   “U.S.
                                                                                                                                                   Person”
                                                                                                                                                   (as
                                                                                                                                                   that
                                                                                                                                                   term
                                                                                                                                                   is
                                                                                                                                                   defined
                                                                                                                                                   in
                                                                                                                                                   Regulation
                                                                                                                                                   S
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   United
                                                                                                                                                   States
                                                                                                                                                   Securities
                                                                                                                                                   Act
                                                                                                                                                   of
                                                                                                                                                   1933,
                                                                                                                                                   as
                                                                                                                                                   amended).

 

2.3     The
representations and warranties contained in Section 2.2 are provided for the exclusive benefit of the Optionee, and a breach of
any one or more representations or warranties may be waived by the Optionee in whole or in part at any time without prejudice
to its rights in respect of any other breach of the same or any other representation or warranty, and the representations and
warranties contained in Section 2.2 will survive the execution and delivery of this Agreement.

 

    	- 5 -

    	 

    

 

	3.		SALE
                                                                                                                                                                                                                                    AND
                                                                                                                                                                                                                                    OPTION
                                                                                                                                                                                                                                    TO
                                                                                                                                                                                                                                    ACQUIRE
                                                                                                                                                                                                                                    INTEREST

 

3.1    The
Optionor hereby sells to the Optionee a fifty percent (50%) interest in and to the Property, free and clear of all claims, taxes,
liens or encumbrances, in consideration of which the Optionee will:

 

		(a)	pay
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   $35,000
                                                                                                                                                   within
                                                                                                                                                   15
                                                                                                                                                   days
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   execution
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Parties
                                                                                                                                                   hereto;
	 	 	 
		(b)	pay
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   a
                                                                                                                                                   further
                                                                                                                                                   $315,000
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   before
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date;
                                                                                                                                                   and
	 	 	 
		(c)	issue
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   1,500,000
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   before
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date.

 

3.2    Upon
satisfaction of the conditions set out in Section 3.1 (which, for greater certainty, totals payments of $350,000 and share issuances
of 1,500,000 Common Shares) a fifty percent (50%) undivided right, title and interest in the Property will automatically vest
in the Optionee, free and clear of all Encumbrances. The Optionor agrees to grant the Optionee the Option to acquire a further
30% interest in the Property (for a total of 80%) exercisable as follows: 

 

		(a)	upon:
                                                                                                                                                   (i)
                                                                                                                                                   incurring
                                                                                                                                                   cumulative
                                                                                                                                                   Exploration
                                                                                                                                                   Expenditures
                                                                                                                                                   equal
                                                                                                                                                   to
                                                                                                                                                   or
                                                                                                                                                   greater
                                                                                                                                                   than
                                                                                                                                                   $1,500,000
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   prior
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   that
                                                                                                                                                   is
                                                                                                                                                   twelve
                                                                                                                                                   (12)
                                                                                                                                                   months
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   and
                                                                                                                                                   (ii)
                                                                                                                                                   making
                                                                                                                                                   a
                                                                                                                                                   cash
                                                                                                                                                   payment
                                                                                                                                                   of
                                                                                                                                                   $300,000
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   a
                                                                                                                                                   further
                                                                                                                                                   ten
                                                                                                                                                   percent
                                                                                                                                                   (10%)
                                                                                                                                                   right,
                                                                                                                                                   title
                                                                                                                                                   and
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   (for
                                                                                                                                                   a
                                                                                                                                                   total
                                                                                                                                                   of
                                                                                                                                                   60%)
                                                                                                                                                   will
                                                                                                                                                   automatically
                                                                                                                                                   vest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   free
                                                                                                                                                   and
                                                                                                                                                   clear
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   Encumbrances;
	 	 	 
		(b)	upon:
                                                                                                                                                   (i)
                                                                                                                                                   incurring
                                                                                                                                                   cumulative
                                                                                                                                                   Exploration
                                                                                                                                                   Expenditures
                                                                                                                                                   equal
                                                                                                                                                   to
                                                                                                                                                   or
                                                                                                                                                   greater
                                                                                                                                                   than
                                                                                                                                                   $2,500,000
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   prior
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   that
                                                                                                                                                   is
                                                                                                                                                   twenty
                                                                                                                                                   four
                                                                                                                                                   (24)
                                                                                                                                                   months
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   and
                                                                                                                                                   (ii)
                                                                                                                                                   making
                                                                                                                                                   a
                                                                                                                                                   cash
                                                                                                                                                   payment
                                                                                                                                                   of
                                                                                                                                                   $300,000
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   a
                                                                                                                                                   further
                                                                                                                                                   ten
                                                                                                                                                   percent
                                                                                                                                                   (10%)
                                                                                                                                                   right,
                                                                                                                                                   title
                                                                                                                                                   and
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   (for
                                                                                                                                                   a
                                                                                                                                                   total
                                                                                                                                                   of
                                                                                                                                                   70%)
                                                                                                                                                   will
                                                                                                                                                   automatically
                                                                                                                                                   vest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   free
                                                                                                                                                   and
                                                                                                                                                   clear
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   Encumbrances;
	 	 	 
		(c)	upon:
                                                                                                                                                   (i)
                                                                                                                                                   incurring
                                                                                                                                                   cumulative
                                                                                                                                                   Exploration
                                                                                                                                                   Expenditures
                                                                                                                                                   equal
                                                                                                                                                   to
                                                                                                                                                   or
                                                                                                                                                   greater
                                                                                                                                                   than
                                                                                                                                                   $4,000,000
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   prior
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   that
                                                                                                                                                   is
                                                                                                                                                   thirty
                                                                                                                                                   six
                                                                                                                                                   (36)
                                                                                                                                                   months
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   and
                                                                                                                                                   (ii)
                                                                                                                                                   making
                                                                                                                                                   a
                                                                                                                                                   cash
                                                                                                                                                   payment
                                                                                                                                                   of
                                                                                                                                                   $300,000
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   a
                                                                                                                                                   further
                                                                                                                                                   ten
                                                                                                                                                   percent
                                                                                                                                                   (10%)
                                                                                                                                                   right,
                                                                                                                                                   title
                                                                                                                                                   and
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   (for
                                                                                                                                                   a
                                                                                                                                                   total
                                                                                                                                                   of
                                                                                                                                                   80%)
                                                                                                                                                   will
                                                                                                                                                   automatically
                                                                                                                                                   vest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   free
                                                                                                                                                   and
                                                                                                                                                   clear
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   Encumbrances;
                                                                                                                                                   and

 

3.3    Any
excess Exploration Expenditures incurred in any period set out in Section 3.2 shall
be carried forward and applied to subsequent period’s or periods’ Exploration Expenditures, and the incurring of the
Exploration Expenditures may be accelerated by the Optionee in its sole discretion.

 

    	- 6 -

    	 

    

 

3.4     If
the Optionee elects not to, or for whatever reason is unable to, meet the minimum Exploration Expenditures during any period set
out in Section 3.2 after the Closing Date, but desires to keep this
Agreement in full force and effect, or if for any reason it is subsequently determined that the minimum Exploration Expenditures
were not completed during any period set out in Section 3.2 following
the Closing Date, then, in order to keep the Option in good standing, the Optionee shall forward all unpaid expenditures into
the subsequent periods and “bond” the property by paying the Optionor $200,000 for every rolling 6 month period where
at least ninety 90 days of drilling has not occurred on the property. This fee is in addition to payments needed to satisfy terms
outlined in Section 3.3 hereto, and is non-refundable nor transferable. The parties understand that any Exploration Expenditures
so bonded can only be applied until the end of the periods detailed in 3.3 while not violating its provisions unless otherwise
agreed to by the parties. Should this clause not be satisfied in good faith, the Optionor, at their discretion, can terminate
this Agreement in accordance with Section 16.3 hereto. 

 

	4.		transfer
                                                                                                                                                                                                        of
                                                                                                                                                                                                        PROPERTY

 

4.1     Upon
Closing and each further percentage acquired by the Optionee under Section 3.2 :

 

		(a)	the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   promptly
                                                                                                                                                   register,
                                                                                                                                                   or
                                                                                                                                                   will
                                                                                                                                                   cause
                                                                                                                                                   its
                                                                                                                                                   agents
                                                                                                                                                   to
                                                                                                                                                   register,
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   name
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   applicable
                                                                                                                                                   laws,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   provide
                                                                                                                                                   all
                                                                                                                                                   assistance
                                                                                                                                                   necessary
                                                                                                                                                   to
                                                                                                                                                   transfer
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   into
                                                                                                                                                   the
                                                                                                                                                   name
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee;
                                                                                                                                                   and
	 	 	 
		(b)	the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   deliver,
                                                                                                                                                   or
                                                                                                                                                   will
                                                                                                                                                   cause
                                                                                                                                                   its
                                                                                                                                                   agent
                                                                                                                                                   to
                                                                                                                                                   deliver,
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   all
                                                                                                                                                   data
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   information
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   possession
                                                                                                                                                   or
                                                                                                                                                   control
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   which
                                                                                                                                                   have
                                                                                                                                                   not
                                                                                                                                                   been
                                                                                                                                                   previously
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee.

 

4.2     The
Optionor acknowledges and agrees that, upon the exercise of the Option, the Optionee may elect in its sole discretion to hold
the title of the Property in a wholly-owned subsidiary. Under such circumstances, the Optionor will transfer the Property into
such subsidiary as instructed by the Optionee while retaining equity in the subsidiary based on the provisions outlined in Section
3.

 

	5.		investigations
                                                                                                                                                                                                        and
                                                                                                                                                                                                        availability
                                                                                                                                                                                                        of
                                                                                                                                                                                                        records

 

5.1    The
Optionee and/or its directors, officers, auditors, counsel and other authorized representatives shall be permitted to make such
commercially reasonable investigations of the Assets as the Optionee reasonably deems necessary or desirable, provided always
that such investigations shall not unduly interfere with the operations of the Optionor. If reasonably requested, the Optionor
shall provide copies of the Optionor’s corporate records, including its minute books, share ledgers and the records maintained
in connection with the business of the Optionor, as applicable. Such investigations will not, however, affect or mitigate in any
way the representations and warranties contained in this Agreement, which representations and warranties shall continue in full
force and effect for the benefit of the Optionee.

 

	6.		necessary
                                                                                                                                                                                                        consents

 

6.1     The
Optionor shall use its respective best efforts to obtain from such directors, shareholders and all appropriate federal, state,
municipal or other governmental or administrative bodies such approvals or consents as are required (if any) to complete the Transaction
contemplated herein.

 

    	- 7 -

    	 

    

 

	7.		mutual
                                                                                                                                                                                                        CONDITIONS
                                                                                                                                                                                                        PRECEDENT

 

7.1     The
obligation of the Optionor to grant the Options on the Closing Date shall be subject to the prior completion of the following
mutual conditions:

 

		(a)	there
                                                                                                                                                   will
                                                                                                                                                   not
                                                                                                                                                   be
                                                                                                                                                   in
                                                                                                                                                   force
                                                                                                                                                   any
                                                                                                                                                   order
                                                                                                                                                   or
                                                                                                                                                   decree
                                                                                                                                                   restraining
                                                                                                                                                   or
                                                                                                                                                   enjoining
                                                                                                                                                   the
                                                                                                                                                   grant
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Option;
                                                                                                                                                   and
	 	 	 
		(b)	all
                                                                                                                                                   consents,
                                                                                                                                                   orders
                                                                                                                                                   and
                                                                                                                                                   approvals
                                                                                                                                                   required,
                                                                                                                                                   necessary
                                                                                                                                                   or
                                                                                                                                                   desirable
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   completion
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   transactions
                                                                                                                                                   provided
                                                                                                                                                   for
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   shall
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   obtained
                                                                                                                                                   or
                                                                                                                                                   received
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   persons,
                                                                                                                                                   authorities
                                                                                                                                                   or
                                                                                                                                                   bodies
                                                                                                                                                   having
                                                                                                                                                   jurisdiction
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   circumstances,
                                                                                                                                                   all
                                                                                                                                                   on
                                                                                                                                                   terms
                                                                                                                                                   satisfactory
                                                                                                                                                   to
                                                                                                                                                   each
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Parties
                                                                                                                                                   hereto,
                                                                                                                                                   acting
                                                                                                                                                   reasonably.

 

	8.		Optionor’s
                                                                                                                                                                                                        conditions
                                                                                                                                                                                                        precedent

 

8.1     The
obligation of the Optionor to consummate the Transaction on the Closing Date shall be subject to the prior completion of the following
conditions:

 

		(a)	the
                                                                                                                                                   representations
                                                                                                                                                   and
                                                                                                                                                   warranties
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   true
                                                                                                                                                   and
                                                                                                                                                   correct
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   shall
                                                                                                                                                   be
                                                                                                                                                   true
                                                                                                                                                   and
                                                                                                                                                   correct
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   same
                                                                                                                                                   force
                                                                                                                                                   and
                                                                                                                                                   effect
                                                                                                                                                   as
                                                                                                                                                   if
                                                                                                                                                   such
                                                                                                                                                   representations
                                                                                                                                                   and
                                                                                                                                                   warranties
                                                                                                                                                   had
                                                                                                                                                   been
                                                                                                                                                   made
                                                                                                                                                   on
                                                                                                                                                   and
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   save
                                                                                                                                                   and
                                                                                                                                                   except
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   case
                                                                                                                                                   which
                                                                                                                                                   would
                                                                                                                                                   not
                                                                                                                                                   have
                                                                                                                                                   a
                                                                                                                                                   Material
                                                                                                                                                   Adverse
                                                                                                                                                   Effect;
	 	 	 
		(b)	the
                                                                                                                                                   Optionee
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   performed,
                                                                                                                                                   fulfilled
                                                                                                                                                   or
                                                                                                                                                   complied
                                                                                                                                                   with,
                                                                                                                                                   in
                                                                                                                                                   all
                                                                                                                                                   material
                                                                                                                                                   respects,
                                                                                                                                                   all
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   obligations,
                                                                                                                                                   covenants
                                                                                                                                                   and
                                                                                                                                                   agreements
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   fulfilled
                                                                                                                                                   or
                                                                                                                                                   complied
                                                                                                                                                   with
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   at
                                                                                                                                                   or
                                                                                                                                                   prior
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date;
	 	 	 
		(c)	the
                                                                                                                                                   Optionee
                                                                                                                                                   will
                                                                                                                                                   deliver
                                                                                                                                                   or
                                                                                                                                                   cause
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   the
                                                                                                                                                   closing
                                                                                                                                                   documents
                                                                                                                                                   as
                                                                                                                                                   set
                                                                                                                                                   forth
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   12.1 in
a form satisfactory to the Optionor acting reasonably;
	 	 	 
		(d)	all
                                                                                                                                                   proceedings
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   taken
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   transactions
                                                                                                                                                   contemplated
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   will
                                                                                                                                                   be
                                                                                                                                                   satisfactory
                                                                                                                                                   in
                                                                                                                                                   form
                                                                                                                                                   and
                                                                                                                                                   substance
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   acting
                                                                                                                                                   reasonably,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   received
                                                                                                                                                   copies
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   instruments
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   evidence
                                                                                                                                                   as
                                                                                                                                                   it
                                                                                                                                                   may
                                                                                                                                                   reasonably
                                                                                                                                                   request
                                                                                                                                                   in
                                                                                                                                                   order
                                                                                                                                                   to
                                                                                                                                                   establish
                                                                                                                                                   the
                                                                                                                                                   consummation
                                                                                                                                                   or
                                                                                                                                                   closing
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   transactions
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   taking
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   necessary
                                                                                                                                                   proceedings
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   therewith;
                                                                                                                                                   and
	 	 	 
		(e)	this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   other
                                                                                                                                                   documents
                                                                                                                                                   necessary
                                                                                                                                                   or
                                                                                                                                                   reasonably
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   close
                                                                                                                                                   the
                                                                                                                                                   Transaction,
                                                                                                                                                   all
                                                                                                                                                   in
                                                                                                                                                   form
                                                                                                                                                   and
                                                                                                                                                   substance
                                                                                                                                                   reasonably
                                                                                                                                                   satisfactory
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   executed
                                                                                                                                                   and
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor;

 

    	- 8 -

    	 

    

 

	9.		OptionEE’s
                                                                                                                                                                                                        conditions
                                                                                                                                                                                                        precedent

 

9.1    The
obligation of the Optionee to consummate the Transaction on the Closing Date shall be subject to the prior completion of the following
conditions:

 

		(a)	the
                                                                                                                                                   representations
                                                                                                                                                   and
                                                                                                                                                   warranties
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   true
                                                                                                                                                   and
                                                                                                                                                   correct
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   shall
                                                                                                                                                   be
                                                                                                                                                   true
                                                                                                                                                   and
                                                                                                                                                   correct
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   same
                                                                                                                                                   force
                                                                                                                                                   and
                                                                                                                                                   effect
                                                                                                                                                   as
                                                                                                                                                   if
                                                                                                                                                   such
                                                                                                                                                   representations
                                                                                                                                                   and
                                                                                                                                                   warranties
                                                                                                                                                   had
                                                                                                                                                   been
                                                                                                                                                   made
                                                                                                                                                   on
                                                                                                                                                   and
                                                                                                                                                   as
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   save
                                                                                                                                                   and
                                                                                                                                                   except
                                                                                                                                                   in
                                                                                                                                                   any
                                                                                                                                                   case
                                                                                                                                                   which
                                                                                                                                                   would
                                                                                                                                                   not
                                                                                                                                                   have
                                                                                                                                                   a
                                                                                                                                                   Material
                                                                                                                                                   Adverse
                                                                                                                                                   Effect
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Assets;
	 	 	 
		(b)	the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   performed,
                                                                                                                                                   fulfilled
                                                                                                                                                   or
                                                                                                                                                   complied
                                                                                                                                                   with,
                                                                                                                                                   in
                                                                                                                                                   all
                                                                                                                                                   material
                                                                                                                                                   respects,
                                                                                                                                                   all
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   obligations,
                                                                                                                                                   covenants
                                                                                                                                                   and
                                                                                                                                                   agreements
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   fulfilled
                                                                                                                                                   or
                                                                                                                                                   complied
                                                                                                                                                   with
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   at
                                                                                                                                                   or
                                                                                                                                                   prior
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date;
	 	 	 
		(c)	the
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   deliver
                                                                                                                                                   or
                                                                                                                                                   cause
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   the
                                                                                                                                                   closing
                                                                                                                                                   documents
                                                                                                                                                   as
                                                                                                                                                   set
                                                                                                                                                   forth
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   11.1 in
a form satisfactory to the Optionee acting reasonably;
	 	 	 
		(d)	all
                                                                                                                                                   proceedings
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   taken
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   transactions
                                                                                                                                                   contemplated
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   will
                                                                                                                                                   be
                                                                                                                                                   satisfactory
                                                                                                                                                   in
                                                                                                                                                   form
                                                                                                                                                   and
                                                                                                                                                   substance
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee,
                                                                                                                                                   acting
                                                                                                                                                   reasonably,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   received
                                                                                                                                                   copies
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   instruments
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   evidence
                                                                                                                                                   as
                                                                                                                                                   it
                                                                                                                                                   may
                                                                                                                                                   reasonably
                                                                                                                                                   request
                                                                                                                                                   in
                                                                                                                                                   order
                                                                                                                                                   to
                                                                                                                                                   establish
                                                                                                                                                   the
                                                                                                                                                   consummation
                                                                                                                                                   or
                                                                                                                                                   closing
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   transactions
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   taking
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   necessary
                                                                                                                                                   proceedings
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   therewith;
	 	 	 
		(e)	this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   other
                                                                                                                                                   documents
                                                                                                                                                   necessary
                                                                                                                                                   or
                                                                                                                                                   reasonably
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   close
                                                                                                                                                   the
                                                                                                                                                   Transaction,
                                                                                                                                                   all
                                                                                                                                                   in
                                                                                                                                                   form
                                                                                                                                                   and
                                                                                                                                                   substance
                                                                                                                                                   reasonably
                                                                                                                                                   satisfactory
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee,
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   executed
                                                                                                                                                   and
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		(f)	the
                                                                                                                                                   Optionee
                                                                                                                                                   completing
                                                                                                                                                   and
                                                                                                                                                   being
                                                                                                                                                   reasonably
                                                                                                                                                   satisfied
                                                                                                                                                   with
                                                                                                                                                   its
                                                                                                                                                   due
                                                                                                                                                   diligence
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Assets;

 

	10.		CLOSING

 

10.1  Closing
of the Transaction (the “Closing”) will take place on the Closing Date at the offices of the counsel for the
Optionee or at such other location as agreed to by the Parties. Notwithstanding the location of the
Closing, each Party agrees that the Closing may be completed by the exchange of undertakings between the respective legal counsel
for the Parties, provided such undertakings are satisfactory to each Party’s respective legal counsel.

 

    	- 9 -

    	 

    

 

	11.		closing
                                                                                                                                                                                                         deliveries
                                                                                                                                                                                                         of
                                                                                                                                                                                                         the
                                                                                                                                                                                                         Optionor

 

11.1  At
Closing, the Optionor will deliver or cause to be delivered the following, duly executed and in the form and substance reasonably
satisfactory to the Optionee:

 

		(a)	all
                                                                                                                                                   other
                                                                                                                                                   information
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   possession
                                                                                                                                                   or
                                                                                                                                                   control
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   (including
                                                                                                                                                   the
                                                                                                                                                   Exploration
                                                                                                                                                   Data),
                                                                                                                                                   which
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   been
                                                                                                                                                   previously
                                                                                                                                                   delivered
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		(b)	a
                                                                                                                                                   title
                                                                                                                                                   opinion
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   if
                                                                                                                                                   one
                                                                                                                                                   is
                                                                                                                                                   requested
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee,
                                                                                                                                                   at
                                                                                                                                                   the
                                                                                                                                                   Optionee’s
                                                                                                                                                   expense;
	 	 	 
		(c)	a
                                                                                                                                                   certified
                                                                                                                                                   copy
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   resolutions
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   directors
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   approving
                                                                                                                                                   and
                                                                                                                                                   authorizing
                                                                                                                                                   the
                                                                                                                                                   entry
                                                                                                                                                   into
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   transactions
                                                                                                                                                   contemplated
                                                                                                                                                   herein;
	 	 	 
		(d)	a
                                                                                                                                                   certificate
                                                                                                                                                   of
                                                                                                                                                   a
                                                                                                                                                   senior
                                                                                                                                                   officer
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   attesting
                                                                                                                                                   that:

 

		(i)	the
                                                                                                                                                 representations
                                                                                                                                                 and
                                                                                                                                                 warranties
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 Optionor
                                                                                                                                                 are
                                                                                                                                                 true
                                                                                                                                                 and
                                                                                                                                                 correct
                                                                                                                                                 at
                                                                                                                                                 the
                                                                                                                                                 Closing
                                                                                                                                                 Date
                                                                                                                                                 as
                                                                                                                                                 if
                                                                                                                                                 made
                                                                                                                                                 at
                                                                                                                                                 that
                                                                                                                                                 time,
	 	 	 
		(ii)	all
                                                                                                                                                  agreements,
                                                                                                                                                  covenants
                                                                                                                                                  and
                                                                                                                                                  conditions
                                                                                                                                                  required
                                                                                                                                                  by
                                                                                                                                                  this
                                                                                                                                                  Agreement
                                                                                                                                                  to
                                                                                                                                                  be
                                                                                                                                                  complied
                                                                                                                                                  with
                                                                                                                                                  or
                                                                                                                                                  performed
                                                                                                                                                  by
                                                                                                                                                  the
                                                                                                                                                  Optionor
                                                                                                                                                  on
                                                                                                                                                  or
                                                                                                                                                  before
                                                                                                                                                  the
                                                                                                                                                  Closing
                                                                                                                                                  Date
                                                                                                                                                  have
                                                                                                                                                  been
                                                                                                                                                  complied
                                                                                                                                                  with
                                                                                                                                                  or
                                                                                                                                                  performed,
                                                                                                                                                  and
	 	 	 
		(iii)	all
                                                                                                                                                   conditions
                                                                                                                                                   precedent
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   obligations
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   satisfied
                                                                                                                                                   or
                                                                                                                                                   waived;
                                                                                                                                                   and

 

		(e)	such
                                                                                                                                                   other
                                                                                                                                                   closing
                                                                                                                                                   documents
                                                                                                                                                   as
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   required
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee,
                                                                                                                                                   acting
                                                                                                                                                   reasonably.

 

	12.		closing
                                                                                                                                                                                                         deliveries
                                                                                                                                                                                                         of
                                                                                                                                                                                                         the
                                                                                                                                                                                                         Optionee

 

12.1  At
Closing, the Optionee will deliver or cause to be delivered the following, duly executed and in the form and substance reasonably
satisfactory to the Optionor:

 

		(a)	a
                                                                                                                                                   share
                                                                                                                                                   certificate
                                                                                                                                                   registered
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   name
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   representing
                                                                                                                                                   1,500,000
                                                                                                                                                   Common
                                                                                                                                                   Shares;
	 	 	 
		(b)	payment
                                                                                                                                                   of
                                                                                                                                                   $315,000;
	 	 	 
		(c)	a
                                                                                                                                                   certified
                                                                                                                                                   copy
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   resolutions
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   directors
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   approving
                                                                                                                                                   and
                                                                                                                                                   authorizing
                                                                                                                                                   the
                                                                                                                                                   entry
                                                                                                                                                   into
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   transactions
                                                                                                                                                   contemplated
                                                                                                                                                   herein;
	 	 	 
		(d)	a
                                                                                                                                                   certificate
                                                                                                                                                   of
                                                                                                                                                   a
                                                                                                                                                   senior
                                                                                                                                                   officer
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   attesting
                                                                                                                                                   that:

 

		(i)	the
                                                                                                                                                 representations
                                                                                                                                                 and
                                                                                                                                                 warranties
                                                                                                                                                 of
                                                                                                                                                 the
                                                                                                                                                 Optionee
                                                                                                                                                 are
                                                                                                                                                 true
                                                                                                                                                 and
                                                                                                                                                 correct
                                                                                                                                                 at
                                                                                                                                                 the
                                                                                                                                                 Closing
                                                                                                                                                 Date
                                                                                                                                                 as
                                                                                                                                                 if
                                                                                                                                                 made
                                                                                                                                                 at
                                                                                                                                                 that
                                                                                                                                                 time,
	 	 	 
		(ii)	all
                                                                                                                                                  agreements,
                                                                                                                                                  covenants
                                                                                                                                                  and
                                                                                                                                                  conditions
                                                                                                                                                  required
                                                                                                                                                  by
                                                                                                                                                  this
                                                                                                                                                  Agreement
                                                                                                                                                  to
                                                                                                                                                  be
                                                                                                                                                  complied
                                                                                                                                                  with
                                                                                                                                                  or
                                                                                                                                                  performed
                                                                                                                                                  by
                                                                                                                                                  the
                                                                                                                                                  Optionee
                                                                                                                                                  on
                                                                                                                                                  or
                                                                                                                                                  before
                                                                                                                                                  the
                                                                                                                                                  Closing
                                                                                                                                                  Date
                                                                                                                                                  have
                                                                                                                                                  been
                                                                                                                                                  complied
                                                                                                                                                  with
                                                                                                                                                  or
                                                                                                                                                  performed,
                                                                                                                                                  and

 

    	- 10 -

    	 

    

 

		(iii)	all
                                                                                                                                                   conditions
                                                                                                                                                   precedent
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   obligations
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   contained
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   have
                                                                                                                                                   been
                                                                                                                                                   satisfied
                                                                                                                                                   or
                                                                                                                                                   waived;
                                                                                                                                                   and

 

		(e)	such
                                                                                                                                                   other
                                                                                                                                                   closing
                                                                                                                                                   documents
                                                                                                                                                   as
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   required
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   acting
                                                                                                                                                   reasonably.

 

	13.		right
                                                                                                                                                                                                         of
                                                                                                                                                                                                         entry

 

13.1  Throughout
the Option Period, the directors and officers of the Optionee and its servants, agents and independent contractors, shall have
the sole and exclusive right in respect of the Property to:

 

		(a)	enter
                                                                                                                                                   thereon;
	 	 	 
		(b)	have
                                                                                                                                                   exclusive
                                                                                                                                                   and
                                                                                                                                                   quiet
                                                                                                                                                   possession
                                                                                                                                                   thereof;
	 	 	 
		(c)	do
                                                                                                                                                   such
                                                                                                                                                   prospecting,
                                                                                                                                                   exploration,
                                                                                                                                                   development
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   mining
                                                                                                                                                   work
                                                                                                                                                   thereon
                                                                                                                                                   and
                                                                                                                                                   thereunder
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   in
                                                                                                                                                   its
                                                                                                                                                   sole
                                                                                                                                                   discretion
                                                                                                                                                   may
                                                                                                                                                   determine
                                                                                                                                                   advisable;
	 	 	 
		(d)	bring
                                                                                                                                                   upon
                                                                                                                                                   and
                                                                                                                                                   erect
                                                                                                                                                   upon
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   such
                                                                                                                                                   buildings,
                                                                                                                                                   plant,
                                                                                                                                                   machinery
                                                                                                                                                   and
                                                                                                                                                   equipment
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   may
                                                                                                                                                   deem
                                                                                                                                                   advisable;
                                                                                                                                                   and
	 	 	 
		(e)	remove
                                                                                                                                                   therefrom
                                                                                                                                                   and
                                                                                                                                                   dispose
                                                                                                                                                   of
                                                                                                                                                   reasonable
                                                                                                                                                   quantities
                                                                                                                                                   of
                                                                                                                                                   ores,
                                                                                                                                                   minerals
                                                                                                                                                   and
                                                                                                                                                   metals
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   purposes
                                                                                                                                                   of
                                                                                                                                                   obtaining
                                                                                                                                                   assays
                                                                                                                                                   or
                                                                                                                                                   making
                                                                                                                                                   other
                                                                                                                                                   tests.

 

	14.		OBLIGATIONS
                                                                                                                                                                                                              OF
                                                                                                                                                                                                              THE
                                                                                                                                                                                                              OPTIONEE
                                                                                                                                                                                                              DURING
                                                                                                                                                                                                              OPTION
                                                                                                                                                                                                              PERIOD

 

14.1  During
the Option Period, the Optionee shall:

 

		(a)	maintain
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   in
                                                                                                                                                   good
                                                                                                                                                   standing
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   doing
                                                                                                                                                   and
                                                                                                                                                   filing
                                                                                                                                                   of
                                                                                                                                                   assessment
                                                                                                                                                   work
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   making
                                                                                                                                                   of
                                                                                                                                                   payments
                                                                                                                                                   in
                                                                                                                                                   lieu
                                                                                                                                                   thereof,
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   payment
                                                                                                                                                   of
                                                                                                                                                   taxes
                                                                                                                                                   and
                                                                                                                                                   rentals,
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   performance
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   other
                                                                                                                                                   actions
                                                                                                                                                   which
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   necessary
                                                                                                                                                   in
                                                                                                                                                   that
                                                                                                                                                   regard
                                                                                                                                                   and
                                                                                                                                                   in
                                                                                                                                                   order
                                                                                                                                                   to
                                                                                                                                                   keep
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   free
                                                                                                                                                   and
                                                                                                                                                   clear
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   liens
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   charges
                                                                                                                                                   arising
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Optionee’s
                                                                                                                                                   activities
                                                                                                                                                   thereon
                                                                                                                                                   except
                                                                                                                                                   those
                                                                                                                                                   at
                                                                                                                                                   the
                                                                                                                                                   time
                                                                                                                                                   contested
                                                                                                                                                   in
                                                                                                                                                   good
                                                                                                                                                   faith
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		(b)	duly
                                                                                                                                                   record
                                                                                                                                                   all
                                                                                                                                                   exploration
                                                                                                                                                   work
                                                                                                                                                   carried
                                                                                                                                                   out
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   as
                                                                                                                                                   assessment
                                                                                                                                                   work;
	 	 	 
		(c)	permit
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   or
                                                                                                                                                   their
                                                                                                                                                   representatives
                                                                                                                                                   duly
                                                                                                                                                   authorized
                                                                                                                                                   in
                                                                                                                                                   writing,
                                                                                                                                                   to
                                                                                                                                                   visit
                                                                                                                                                   and
                                                                                                                                                   inspect
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   at
                                                                                                                                                   all
                                                                                                                                                   reasonable
                                                                                                                                                   times
                                                                                                                                                   and
                                                                                                                                                   intervals,
                                                                                                                                                   and
                                                                                                                                                   data
                                                                                                                                                   obtained
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   as
                                                                                                                                                   a
                                                                                                                                                   result
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   operations
                                                                                                                                                   thereon,
                                                                                                                                                   provided
                                                                                                                                                   always
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   or
                                                                                                                                                   their
                                                                                                                                                   representatives
                                                                                                                                                   shall
                                                                                                                                                   abide
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   rules
                                                                                                                                                   and
                                                                                                                                                   regulations
                                                                                                                                                   laid
                                                                                                                                                   down
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   matters
                                                                                                                                                   of
                                                                                                                                                   safety
                                                                                                                                                   and
                                                                                                                                                   efficiency
                                                                                                                                                   in
                                                                                                                                                   its
                                                                                                                                                   operations
                                                                                                                                                   and,
                                                                                                                                                   notwithstanding,
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   shall
                                                                                                                                                   be
                                                                                                                                                   under
                                                                                                                                                   no
                                                                                                                                                   liability
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   or
                                                                                                                                                   their
                                                                                                                                                   representatives
                                                                                                                                                   for
                                                                                                                                                   any
                                                                                                                                                   personal
                                                                                                                                                   injury,
                                                                                                                                                   including
                                                                                                                                                   death,
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   damage
                                                                                                                                                   to
                                                                                                                                                   property
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   such
                                                                                                                                                   as
                                                                                                                                                   might
                                                                                                                                                   be
                                                                                                                                                   occasioned
                                                                                                                                                   by
                                                                                                                                                   or
                                                                                                                                                   through
                                                                                                                                                   any
                                                                                                                                                   negligence
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   part
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee,
                                                                                                                                                   its
                                                                                                                                                   servants
                                                                                                                                                   or
                                                                                                                                                   agents;

 

    	- 11 -

    	 

    

 

		(d)	do
                                                                                                                                                   all
                                                                                                                                                   work
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   in
                                                                                                                                                   a
                                                                                                                                                   good
                                                                                                                                                   and
                                                                                                                                                   workmanlike
                                                                                                                                                   fashion
                                                                                                                                                   and
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   all
                                                                                                                                                   applicable
                                                                                                                                                   laws,
                                                                                                                                                   regulations,
                                                                                                                                                   orders
                                                                                                                                                   and
                                                                                                                                                   ordinances
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   governmental
                                                                                                                                                   authority;
	 	 	 
		(e)	permit
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   at
                                                                                                                                                   its
                                                                                                                                                   own
                                                                                                                                                   expense,
                                                                                                                                                   total
                                                                                                                                                   access
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   results
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   work
                                                                                                                                                   done
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property;
                                                                                                                                                   and
	 	 	 
		(f)	deliver
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor,
                                                                                                                                                   forthwith
                                                                                                                                                   upon
                                                                                                                                                   receipt
                                                                                                                                                   thereof,
                                                                                                                                                   copies
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   reports,
                                                                                                                                                   maps,
                                                                                                                                                   assay
                                                                                                                                                   results
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   technical
                                                                                                                                                   data
                                                                                                                                                   compiled
                                                                                                                                                   by
                                                                                                                                                   or
                                                                                                                                                   prepared
                                                                                                                                                   at
                                                                                                                                                   the
                                                                                                                                                   direction
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   with
                                                                                                                                                   respect
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property.
	 	 	 
		(g)	the
                                                                                                                                                   Optionee
                                                                                                                                                   will
                                                                                                                                                   complete
                                                                                                                                                   drilling
                                                                                                                                                   program
                                                                                                                                                   based
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   budget
                                                                                                                                                   conditions
                                                                                                                                                   outlined
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   3.3
                                                                                                                                                   hereto
                                                                                                                                                   and
                                                                                                                                                   a
                                                                                                                                                   drilling
                                                                                                                                                   program
                                                                                                                                                   approved
                                                                                                                                                   by
                                                                                                                                                   both
                                                                                                                                                   Optionee
                                                                                                                                                   and
                                                                                                                                                   Optionor;
                                                                                                                                                   and
	 	 	 
		(h)	at
                                                                                                                                                   the
                                                                                                                                                   conclusion
                                                                                                                                                   of
                                                                                                                                                   drilling
                                                                                                                                                   and
                                                                                                                                                   exploration
                                                                                                                                                   outlined
                                                                                                                                                   in
                                                                                                                                                   3.3,
                                                                                                                                                   Optionee
                                                                                                                                                   will
                                                                                                                                                   supply
                                                                                                                                                   completed
                                                                                                                                                   NI
                                                                                                                                                   43-101
                                                                                                                                                   resource
                                                                                                                                                   estimate
                                                                                                                                                   to
                                                                                                                                                   Optionor
                                                                                                                                                   with
                                                                                                                                                   understanding
                                                                                                                                                   Optionor
                                                                                                                                                   will
                                                                                                                                                   provide
                                                                                                                                                   all
                                                                                                                                                   necessary
                                                                                                                                                   means
                                                                                                                                                   to
                                                                                                                                                   facilitate
                                                                                                                                                   the
                                                                                                                                                   execution
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   document.
		(i)	

 

	15.		securities
                                                                                                                                                                                                                   laws

 

15.1   The
Parties hereto acknowledge that the issuance of the Common Shares by the Optionee to the Optionor as contemplated herein will
be made pursuant to an exemption from the registration and prospectus requirements of applicable securities laws pursuant to Section
2.13 of National Instrument 45-106.

 

15.2   The
Optionor confirms to and covenants with the Optionee that:

 

		(a)	it
                                                                                                                                                   will
                                                                                                                                                   comply
                                                                                                                                                   with
                                                                                                                                                   all
                                                                                                                                                   requirements
                                                                                                                                                   of
                                                                                                                                                   applicable
                                                                                                                                                   securities
                                                                                                                                                   laws
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   issuance
                                                                                                                                                   to
                                                                                                                                                   it
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   resale
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Common
                                                                                                                                                   Shares;
                                                                                                                                                   and
	 	 	 
		(b)	the
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   have
                                                                                                                                                   not
                                                                                                                                                   been
                                                                                                                                                   registered
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   United
                                                                                                                                                   States
                                                                                                                                                   Securities
                                                                                                                                                   Act
                                                                                                                                                   of
                                                                                                                                                   1933,
                                                                                                                                                   as
                                                                                                                                                   amended
                                                                                                                                                   (the
                                                                                                                                                   “U.S.
                                                                                                                                                   Securities
                                                                                                                                                   Act”)
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   securities
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   State
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   United
                                                                                                                                                   States
                                                                                                                                                   and
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   does
                                                                                                                                                   not
                                                                                                                                                   intend
                                                                                                                                                   to
                                                                                                                                                   register
                                                                                                                                                   the
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   U.S.
                                                                                                                                                   Securities
                                                                                                                                                   Act,
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   securities
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   State
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   United
                                                                                                                                                   States
                                                                                                                                                   and
                                                                                                                                                   has
                                                                                                                                                   no
                                                                                                                                                   obligation
                                                                                                                                                   to
                                                                                                                                                   do
                                                                                                                                                   so.
                                                                                                                                                   The
                                                                                                                                                   Optionor
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   a
                                                                                                                                                   “U.S.
                                                                                                                                                   person”
                                                                                                                                                   (as
                                                                                                                                                   that
                                                                                                                                                   term
                                                                                                                                                   is
                                                                                                                                                   defined
                                                                                                                                                   in
                                                                                                                                                   Regulation
                                                                                                                                                   S
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   U.S.
                                                                                                                                                   Securities
                                                                                                                                                   Act)
                                                                                                                                                   and
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   purchasing
                                                                                                                                                   the
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   account
                                                                                                                                                   or
                                                                                                                                                   benefit
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   U.S.
                                                                                                                                                   persons;
                                                                                                                                                   provided,
                                                                                                                                                   however,
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   may
                                                                                                                                                   sell
                                                                                                                                                   or
                                                                                                                                                   otherwise
                                                                                                                                                   dispose
                                                                                                                                                   the
                                                                                                                                                   Common
                                                                                                                                                   Shares
                                                                                                                                                   pursuant
                                                                                                                                                   to
                                                                                                                                                   registration
                                                                                                                                                   thereof
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   U.S.
                                                                                                                                                   Securities
                                                                                                                                                   Act
                                                                                                                                                   and
                                                                                                                                                   any
                                                                                                                                                   applicable
                                                                                                                                                   State
                                                                                                                                                   securities
                                                                                                                                                   laws
                                                                                                                                                   or
                                                                                                                                                   pursuant
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   available
                                                                                                                                                   exemption
                                                                                                                                                   from
                                                                                                                                                   such
                                                                                                                                                   registration
                                                                                                                                                   requirements.

 

    	- 12 -

    	 

    

 

15.3   Upon
the issuance of the Common Shares to the Optionor, and until such time as is no longer required under applicable securities laws,
the certificates representing the Common Shares will bear the following legend required under National Instrument 45-102 in substantially
the following form:

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES BEFORE THE DATE THAT IS FOUR
MONTHS AND ONE DAY AFTER THE LATER OF: (I) THE DATE OF ISSUE, AND (II) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE
OR TERRITORY IN CANADA.

 

15.4   If
any of the Common Shares are required to be escrowed pursuant to the policies of a stock exchange, and all rights of protest or
appeal has been exhausted by the Parties, the Optionor agrees to sign any such escrow agreement and abide by any such restrictions
as may be so imposed by such stock exchange.

 

	16.		termination

 

16.1  Optionee
may at any time terminate this Agreement in its entirety on thirty (30) days written notice to the Optionor and except for the
obligations set out in Section 16 hereto, shall thereafter have no liability to the Optionor as a result of such termination.
For greater certainty, if terminated pursuant this Section 16.1 before the Closing Date, the Optionee shall not be entitled to
pay or issue to the Optionor the cash or Common Shares set out in Subsections 3.1(b) and
3.1(c).  Optionor will receive, in an orderly fashion, all sampling,
assay and technical information with respect to the property.

 

16.2  Upon
termination pursuant to Section 16.1 hereof prior to the Closing Date the Optionee shall have no legal or beneficial
interests in or to any lands or mineral rights within the Property. The Option is an option only in respect of the Property
and except as specifically provided otherwise, nothing in this Agreement shall be construed as obligating the Optionee to do
any acts or make any payments hereunder and any act or acts or payment or payments as shall be made hereunder shall not be
construed as obligating the Optionee to do any further act or make any further payment.

 

16.3  Subject
to Section 17, a party may terminate this Agreement if at any time:

 

		(a)	a
                                                                                                                                                   Party
                                                                                                                                                   fails
                                                                                                                                                   to
                                                                                                                                                   perform
                                                                                                                                                   any
                                                                                                                                                   obligation
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   performed
                                                                                                                                                   by
                                                                                                                                                   it
                                                                                                                                                   hereunder,
                                                                                                                                                   or
                                                                                                                                                   a
                                                                                                                                                   party
                                                                                                                                                   is
                                                                                                                                                   in
                                                                                                                                                   breach
                                                                                                                                                   of
                                                                                                                                                   a
                                                                                                                                                   warranty
                                                                                                                                                   given
                                                                                                                                                   by
                                                                                                                                                   it
                                                                                                                                                   hereunder,
                                                                                                                                                   which
                                                                                                                                                   failure
                                                                                                                                                   or
                                                                                                                                                   breach
                                                                                                                                                   materially
                                                                                                                                                   interferes
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   implementation
                                                                                                                                                   and
                                                                                                                                                   operation
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement;
                                                                                                                                                   or

 

16.4   the
Optionee does not issue the Common Shares, make the cash payments, Exploration Expenditures or bond payments in accordance
with all provisions of Section 3. Notwithstanding any other provisions hereof, in the event of termination of this
Agreement, the Optionee shall:

 

		(a)	have
                                                                                                                                                   the
                                                                                                                                                   right
                                                                                                                                                   and
                                                                                                                                                   obligation
                                                                                                                                                   to
                                                                                                                                                   remove
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   within
                                                                                                                                                   180
                                                                                                                                                   days
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   effective
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   termination
                                                                                                                                                   all
                                                                                                                                                   equipment
                                                                                                                                                   erected,
                                                                                                                                                   installed
                                                                                                                                                   or
                                                                                                                                                   brought
                                                                                                                                                   upon
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   by
                                                                                                                                                   or
                                                                                                                                                   at
                                                                                                                                                   the
                                                                                                                                                   instance
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		(b)	if
                                                                                                                                                   the
                                                                                                                                                   termination
                                                                                                                                                   has
                                                                                                                                                   occurred
                                                                                                                                                   after
                                                                                                                                                   the
                                                                                                                                                   Closing
                                                                                                                                                   Date,
                                                                                                                                                   file
                                                                                                                                                   or
                                                                                                                                                   have
                                                                                                                                                   filed
                                                                                                                                                   all
                                                                                                                                                   applicable
                                                                                                                                                   assessment
                                                                                                                                                   work
                                                                                                                                                   to
                                                                                                                                                   keep
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   in
                                                                                                                                                   good
                                                                                                                                                   standing
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   maximum
                                                                                                                                                   period
                                                                                                                                                   of
                                                                                                                                                   time
                                                                                                                                                   permitted
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   applicable
                                                                                                                                                   mining
                                                                                                                                                   laws
                                                                                                                                                   of
                                                                                                                                                   Mexico
                                                                                                                                                   following
                                                                                                                                                   the
                                                                                                                                                   termination
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement;
                                                                                                                                                   and

 

    	- 13 -

    	 

    

 

		(c)	perform
                                                                                                                                                   all
                                                                                                                                                   reclamation
                                                                                                                                                   work
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   required
                                                                                                                                                   under
                                                                                                                                                   applicable
                                                                                                                                                   mining
                                                                                                                                                   and
                                                                                                                                                   environmental
                                                                                                                                                   laws
                                                                                                                                                   as
                                                                                                                                                   a
                                                                                                                                                   result
                                                                                                                                                   of
                                                                                                                                                   operations
                                                                                                                                                   carried
                                                                                                                                                   out
                                                                                                                                                   by
                                                                                                                                                   or
                                                                                                                                                   on
                                                                                                                                                   behalf
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Optionee.
	 	 	 
		(d)	forfeit
                                                                                                                                                   complete
                                                                                                                                                   equity
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   property
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   monies
                                                                                                                                                   and/or
                                                                                                                                                   stocks
                                                                                                                                                   paid
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   outlined
                                                                                                                                                   in
                                                                                                                                                   Section
                                                                                                                                                   3,
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   paying
                                                                                                                                                   back
                                                                                                                                                   all
                                                                                                                                                   Drilling
                                                                                                                                                   and
                                                                                                                                                   Exploration
                                                                                                                                                   expenses
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   within
                                                                                                                                                   1
                                                                                                                                                   year
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   default
                                                                                                                                                   date.

 

	17.		default

 

17.1   If
at any time during the Option Period, the Optionee is in default of any material provision in this Agreement, the Optionor may
terminate this Agreement, but only if:

 

		(a)	it
                                                                                                                                                   shall
                                                                                                                                                   have
                                                                                                                                                   first
                                                                                                                                                   given
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   a
                                                                                                                                                   notice
                                                                                                                                                   of
                                                                                                                                                   default
                                                                                                                                                   containing
                                                                                                                                                   particulars
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   obligation
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   performed,
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   warranty
                                                                                                                                                   breached;
                                                                                                                                                   and
	 	 	 
		(b)	the
                                                                                                                                                   Optionee
                                                                                                                                                   has
                                                                                                                                                   not,
                                                                                                                                                   within
                                                                                                                                                   60
                                                                                                                                                   calendar
                                                                                                                                                   days
                                                                                                                                                   following
                                                                                                                                                   delivery
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   notice
                                                                                                                                                   of
                                                                                                                                                   default,
                                                                                                                                                   cured
                                                                                                                                                   such
                                                                                                                                                   default
                                                                                                                                                   or
                                                                                                                                                   commenced
                                                                                                                                                   proceedings
                                                                                                                                                   to
                                                                                                                                                   cure
                                                                                                                                                   such
                                                                                                                                                   default
                                                                                                                                                   by
                                                                                                                                                   appropriate
                                                                                                                                                   payment
                                                                                                                                                   or
                                                                                                                                                   performance,
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   hereby
                                                                                                                                                   agreeing
                                                                                                                                                   that
                                                                                                                                                   should
                                                                                                                                                   it
                                                                                                                                                   so
                                                                                                                                                   commence
                                                                                                                                                   to
                                                                                                                                                   cure
                                                                                                                                                   any
                                                                                                                                                   default
                                                                                                                                                   it
                                                                                                                                                   will
                                                                                                                                                   undertake
                                                                                                                                                   same
                                                                                                                                                   to
                                                                                                                                                   completion
                                                                                                                                                   without
                                                                                                                                                   undue
                                                                                                                                                   delay.

 

17.2   Should
the Optionee fail to comply with the provision of Section 17.1(b), the Optionor may thereafter terminate this Agreement by giving
written notice thereof to the Optionee.

 

	18.		power
                                                                                                                                                                                                                   to
                                                                                                                                                                                                                   charge
                                                                                                                                                                                                                   property

 

18.1   At
any time after the Optionee has exercised the First Option, the Optionee may grant mortgages, charges or liens (each of which
is herein called a “mortgage”) of and upon the Property or any portion thereof, any mill or other fixed assets
located thereon, and any or all of the tangible personal property located on or used in connection with the Property to secure
financing of development of the Property, provided that, unless otherwise agreed to by the Optionor, it shall be a term of each
mortgage that the mortgagee or any person acquiring title to the Property upon enforcement of the mortgage shall hold the same
as if the mortgagee or any such person had executed this Agreement. Notwithstanding the foregoing, during the Option Period the
Optionee may only grant, mortgages, charges or liens against the property with the written consent and approval of the Optionor
with the understanding that any such obligation is the complete responsibility of the Optionee should the
Optionee default under any provision of this Agreement.

 

	19.		restrictive
                                                                                                                                                                                                         covenants

 

19.1   Until
the earlier of the exercise of the Options or the termination of this Agreement, both the Optionee and the Optionor will not,
without the prior written consent of the parties hereto, allow the Property to become subject to any Encumbrance of any nature
or kind whatsoever or enter into any agreement (whether written or verbal) that may result in the creation of any such Encumbrance
or otherwise restrict in any manner whatsoever the exercise of the Options by the Optionee as contemplated by this Agreement.

 

    	- 14 -

    	 

    

 

	20.		NOTIFICATION

 

20.1   Between
the date of this Agreement and the exercise of the Options, each of the Parties to this Agreement will promptly notify the other
Party in writing if it becomes aware of any fact or condition that causes or constitutes a material breach of any of its representations
and warranties as of the date of this Agreement, if it becomes aware of the occurrence after the date of this Agreement of any
fact or condition that would cause or constitute a material breach of any such representation or warranty had such representation
or warranty been made as of the time of occurrence or discovery of such fact or condition. During the same period, each Party
will promptly notify the other Parties of the occurrence of any material breach of any of its covenants in this Agreement or of
the occurrence of any event that may make the satisfaction of such conditions impossible or unlikely.

 

	21.		confidential
                                                                                                                                                                                                         information

 

21.1   No
information furnished by the Optionee to the Optionor hereunder in respect of the activities carried out on the Property by the
Optionee, or related to the sale of minerals, ore, bullion or other product derived from the Property, shall be published or disclosed
by the Optionor without the prior written consent of the Optionee, but such consent in respect of the reporting of factual data
shall not be unreasonably withheld, and shall not be withheld in respect of information required to be publicly disclosed pursuant
to applicable securities or corporation laws, regulations or policies.

 

	22.		INDEMNITY

 

22.1   The
Optionor covenants and agrees with the Optionee (which covenant and agreement will survive the execution, delivery and termination
of this Agreement) to indemnify and save harmless the Optionee against all liabilities, claims, demands, actions, causes of action,
damages, losses, costs, expenses or legal fees suffered or incurred by the Optionee, directly or indirectly, by reason of or arising
out of any warranties or representations on the part of the Optionor herein being untrue.

 

22.2   The
Optionee covenants and agrees with the Optionor (which covenant and agreement will survive the execution, delivery and termination
of this Agreement) to indemnify and save harmless the Optionor against all liabilities, claims, demands, actions, causes of action,
damages, losses, costs, expenses or legal fees suffered or incurred by the Optionor, directly or indirectly, by reason of or arising
out of any warranties or representations on the part of the Optionee herein being untrue.

 

	23.		personal
                                                                                                                                                                                                                                                                       information

 

23.1   If
required by the a stock exchange or any Governmental Authority, the Optionor shall obtain and deliver to the Optionee the express
written consent of each individual connected to the Optionor with respect to the disclosure of Personal Information of such individuals
by the Optionee to the stock exchange and all Governmental Authorities; and

 

    	- 15 -

    	 

    

 

	24.		GOVERNING
                                                                                                                                                                                                                   LAW

 

24.1  This
Agreement will be exclusively construed and in all respects exclusively governed by the laws of Mexico 

 

	25.		NOTICES

 

25.1   All
notices, payments and other required communications and deliveries to the Parties hereto will be in writing, and will be addressed
to the Parties as follows or at such other address as the Parties may specify from time to time:

 

		(a)	to
                                                                                                                                                   the
                                                                                                                                                   Optionor:

 

Minas
de Alta Ley La Palma, S.A. de C.V.

Lázaro
Cárdenas 146BIS Parque Industrial Lagunero Gómez Palacio, Dgo. ,

México, C.P. 35090

 

Attention
: Mr. Luis Salvador Necochea Gamez (legal representative)

 

Facsimile:

 

And:

 

		(b)	to
                                                                                                                                                   the
                                                                                                                                                   Optionee:

 

Minera
Arriba S.A. de C.V.

 

2402-1277
Melville Street, V6E0A4 Vancouver, B.C. Canada.

 

Attention:
Mr. Matthew Hamilton

 

Fax
Number: ♦

 

All
such notices and other communications will be deemed to have been received (i) in the case of personal delivery, on the date of
such delivery, (ii) in the case of a fax, when the Party sending such fax has received electronic confirmation of its delivery,
(iii) in the case of delivery by internationally-recognized express courier, on the business day following dispatch and (iv) in
the case of mailing, on the fifth business day following mailing.

 

	26.		ARBITRATION

 

26.1   If
there is any disagreement, dispute or controversy (collectively, a “Dispute”) among the Parties with respect
to any matter arising under this Agreement or the construction hereof, then the Dispute will be determined by arbitration in accordance
with the following procedures:

 

All
disputes arising in connection with the present contract shall be finally settled under the Rules of Arbitration of the Arbitration
Center of Mexico (CAM) by one arbitrator appointed in accordance with the said Rules and the place of arbitration shall be Vancouver,
British Columbia, Canada

 

    	- 16 -

    	 

    

 

	27.		ENTIRE
                                                                                                                                                                                                                   AGREEMENT

 

This
Agreement constitutes the entire agreement among the Parties and will supersede and replace any other agreement or arrangement,
whether oral or in writing and including the Letter Agreement, previously existing among the Parties with respect to the subject
matter of this Agreement.

 

	28		CONSENT
                                                                                                                                                                                                        OR
                                                                                                                                                                                                        WAIVER

 

28.1   No
consent or waiver, express or implied, by any Party hereto in respect of any breach or default by any of the other Parties in
the performance by such other Party of its obligations under this Agreement will be deemed or construed to be consent to or waiver
of any other breach or default.

 

	29.		non-business
                                                                                                                                                                                                         days

 

29.1   If
any day on which action is required under this Agreement falls on a day which is not a Business Day, the date that such action
is required will be extended to the next Business Day.

 

	30.		force
                                                                                                                                                                                                         majeure

 

30.1  The
obligations of the Parties hereto and the time frames established in this Agreement shall be suspended to the extent and for the
period that performance is prevented by any cause beyond either Party’s reasonable control, whether foreseeable or unforeseeable,
including, without limitation, labour disputes, acts of God, laws, regulations, orders, proclamations or requests of any governmental
authority, inability to obtain on reasonable terms required permits, licenses, or other authorization s, or any other matter similar
to the above.

 

	31.		Funds

 

31.1All
funds set out herein are stated in United States currency.

 

	32.		FURTHER
                                                                                                                                                                                                         ASSURANCES

 

32.1   The
Parties will promptly execute, or cause to be executed, all bills of sale, forms of transfer, documents, conveyances and other
instruments of further assurance which may be reasonably necessary or advisable to carry out the full intent and purpose of this
Agreement, or to record wherever appropriate the respective interests from time to time of the Parties hereto in and to the Property.

 

    	- 17 -

    	 

    

 

	33.		SEVERABILITY

 

33.1   If
any provision of this Agreement is or will become illegal, unenforceable or invalid for any reason whatsoever, such illegal, unenforceable
or invalid provisions will be severable from the remainder of this Agreement and will not affect the legality, enforceability
or validity of the remaining provisions of this Agreement.

 

	34.		non-merger

 

34.1   The
representations and warranties, covenants and agreements of the Parties set forth herein will survive the exercise or termination
of this Agreement and, notwithstanding the completion of the transactions contemplated hereby, the waiver of any condition contained
herein (unless such waiver expressly releases a Party of any such representation, warrant, covenant or agreement) or any investigation
made by the Party, the same will remain in full force and effect.

 

	35.		ENUREMENT

 

35.1   This
Agreement will enure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns, as
permitted.

 

	36.		Right
                                                                                                                                                                                                         of
                                                                                                                                                                                                         First
                                                                                                                                                                                                         Refusal

 

36.1   No
party will sell, assign, transfer or otherwise dispose of an interest in the Property except in accordance with the following
conditions:

 

		(a)	if
                                                                                                                                                   a
                                                                                                                                                   party
                                                                                                                                                   (the
                                                                                                                                                   “Seller”)
                                                                                                                                                   desires
                                                                                                                                                   to
                                                                                                                                                   sell,
                                                                                                                                                   assign,
                                                                                                                                                   transfer
                                                                                                                                                   or
                                                                                                                                                   otherwise
                                                                                                                                                   dispose
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   part
                                                                                                                                                   of
                                                                                                                                                   an
                                                                                                                                                   interest
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   to
                                                                                                                                                   a
                                                                                                                                                   third
                                                                                                                                                   party
                                                                                                                                                   (the
                                                                                                                                                   “Offered
                                                                                                                                                   Interest”),
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   will
                                                                                                                                                   first
                                                                                                                                                   offer
                                                                                                                                                   (the
                                                                                                                                                   “Offer”)
                                                                                                                                                   the
                                                                                                                                                   same
                                                                                                                                                   in
                                                                                                                                                   writing
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   other
                                                                                                                                                   party
                                                                                                                                                   for
                                                                                                                                                   cash.
                                                                                                                                                   The
                                                                                                                                                   Offer
                                                                                                                                                   will
                                                                                                                                                   state
                                                                                                                                                   the
                                                                                                                                                   purchase
                                                                                                                                                   price
                                                                                                                                                   payable
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   third
                                                                                                                                                   party
                                                                                                                                                   in
                                                                                                                                                   cash
                                                                                                                                                   in
                                                                                                                                                   Canadian
                                                                                                                                                   dollars
                                                                                                                                                   or,
                                                                                                                                                   if
                                                                                                                                                   the
                                                                                                                                                   purchase
                                                                                                                                                   price
                                                                                                                                                   is
                                                                                                                                                   for
                                                                                                                                                   consideration
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   cash,
                                                                                                                                                   the
                                                                                                                                                   cash
                                                                                                                                                   equivalent
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   consideration
                                                                                                                                                   in
                                                                                                                                                   Canadian
                                                                                                                                                   dollars,
                                                                                                                                                   and
                                                                                                                                                   will
                                                                                                                                                   state
                                                                                                                                                   the
                                                                                                                                                   other
                                                                                                                                                   terms
                                                                                                                                                   and
                                                                                                                                                   conditions
                                                                                                                                                   on
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   is
                                                                                                                                                   willing
                                                                                                                                                   to
                                                                                                                                                   sell;
	 	 	 
		(b)	the
                                                                                                                                                   other
                                                                                                                                                   party
                                                                                                                                                   will
                                                                                                                                                   have
                                                                                                                                                   sixty
                                                                                                                                                   (60)
                                                                                                                                                   days
                                                                                                                                                   to
                                                                                                                                                   accept
                                                                                                                                                   the
                                                                                                                                                   Offer.
                                                                                                                                                   If
                                                                                                                                                   the
                                                                                                                                                   Offer
                                                                                                                                                   is
                                                                                                                                                   accepted
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   other
                                                                                                                                                   party
                                                                                                                                                   (in
                                                                                                                                                   this
                                                                                                                                                   s.36.1
                                                                                                                                                   the
                                                                                                                                                   “Purchasing
                                                                                                                                                   Party”)
                                                                                                                                                   ,
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   will
                                                                                                                                                   forthwith
                                                                                                                                                   transfer
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Purchasing
                                                                                                                                                   Party
                                                                                                                                                   the
                                                                                                                                                   subject
                                                                                                                                                   matter
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Offer,
                                                                                                                                                   upon
                                                                                                                                                   the
                                                                                                                                                   Purchasing
                                                                                                                                                   Party
                                                                                                                                                   paying
                                                                                                                                                   the
                                                                                                                                                   purchase
                                                                                                                                                   price;
	 	 	 
		(c)	the
                                                                                                                                                   Purchasing
                                                                                                                                                   Party
                                                                                                                                                   will
                                                                                                                                                   be
                                                                                                                                                   prohibited
                                                                                                                                                   from
                                                                                                                                                   transferring,
                                                                                                                                                   assigning,
                                                                                                                                                   selling,
                                                                                                                                                   conveying
                                                                                                                                                   or
                                                                                                                                                   pledging
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   other
                                                                                                                                                   third
                                                                                                                                                   party
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   an
                                                                                                                                                   affiliate
                                                                                                                                                   such
                                                                                                                                                   Offered
                                                                                                                                                   Interest
                                                                                                                                                   for
                                                                                                                                                   a
                                                                                                                                                   period
                                                                                                                                                   of
                                                                                                                                                   one
                                                                                                                                                   year
                                                                                                                                                   after
                                                                                                                                                   the
                                                                                                                                                   completion
                                                                                                                                                   of
                                                                                                                                                   sale;
	 	 	 
		(d)	the
                                                                                                                                                   Purchasing
                                                                                                                                                   Party
                                                                                                                                                   must
                                                                                                                                                   provide
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   an
                                                                                                                                                   undertaking
                                                                                                                                                   that
                                                                                                                                                   it
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   entered
                                                                                                                                                   into
                                                                                                                                                   any
                                                                                                                                                   negotiations
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   sort
                                                                                                                                                   with
                                                                                                                                                   parties
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   sale,
                                                                                                                                                   assignment,
                                                                                                                                                   transfer,
                                                                                                                                                   conveyance
                                                                                                                                                   or
                                                                                                                                                   pledge
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Offered
                                                                                                                                                   Interest;
                                                                                                                                                   and

 

    	- 18 -

    	 

    

 

		(e)	if
                                                                                                                                                   the
                                                                                                                                                   Offer
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   accepted
                                                                                                                                                   as
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   whole
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   subject
                                                                                                                                                   matter
                                                                                                                                                   thereof
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   other
                                                                                                                                                   party
                                                                                                                                                   within
                                                                                                                                                   sixty
                                                                                                                                                   (60)
                                                                                                                                                   days
                                                                                                                                                   following
                                                                                                                                                   receipt
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Offer,
                                                                                                                                                   then,
                                                                                                                                                   at
                                                                                                                                                   any
                                                                                                                                                   time
                                                                                                                                                   during
                                                                                                                                                   the
                                                                                                                                                   further
                                                                                                                                                   period
                                                                                                                                                   of
                                                                                                                                                   one
                                                                                                                                                   hundred
                                                                                                                                                   twenty
                                                                                                                                                   (120)
                                                                                                                                                   days
                                                                                                                                                   immediately
                                                                                                                                                   thereafter,
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   may
                                                                                                                                                   sell,
                                                                                                                                                   assign,
                                                                                                                                                   transfer
                                                                                                                                                   or
                                                                                                                                                   otherwise
                                                                                                                                                   dispose
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   subject
                                                                                                                                                   matter
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Offer
                                                                                                                                                   to
                                                                                                                                                   a
                                                                                                                                                   third
                                                                                                                                                   party,
                                                                                                                                                   but
                                                                                                                                                   only
                                                                                                                                                   at
                                                                                                                                                   a
                                                                                                                                                   price
                                                                                                                                                   and
                                                                                                                                                   on
                                                                                                                                                   terms
                                                                                                                                                   and
                                                                                                                                                   conditions
                                                                                                                                                   the
                                                                                                                                                   same
                                                                                                                                                   as
                                                                                                                                                   or
                                                                                                                                                   more
                                                                                                                                                   favourable
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Seller
                                                                                                                                                   than
                                                                                                                                                   those
                                                                                                                                                   set
                                                                                                                                                   out
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Offer.

 

	37.		Programs
                                                                                                                                                                                                         and
                                                                                                                                                                                                         Budgets
                                                                                                                                                                                                         /
                                                                                                                                                                                                         DILUTION

 

37.1   Upon
the Optionee earning its 80% interest as set out in Section 3.2 , the Optionee and Optionor will be engaged in the joint venture
development of the Property. Optionee will propose the work programs and budgets of the joint venture. Each party will have thirty
(30) days from the date of receipt of a program to notify the Optionee as to whether it will participate at its interest level
or whether it will not participate. If the Optionor choses to participate, they will be given six months (6) to obtain the capital
necessary to invest at their interest level with no penalties and/or charges. The participating interest of a party which elects
not to participate will be proportionately dilute in accordance with the dilution formula set out in Section 37.2. A party which
fails to so notify the Optionee within the time required will be deemed to have elected to participate in the work program at
its interest level. . A party which elects not to participate in a program will not be subject to dilution only to the extent
that the expenditures under such program exceed one hundred fifteen percent (115%) of the budget for such program. If a party
fails to pay six months (6) after electing to participate that party will suffer an accelerated dilution of one-hundred twenty-five
percent (125%) of the monies not paid. Monies required for a work program must be paid no later than thirty days (30) prior to
commencement of a work program.

 

37.2Dilution

 

The
dilution formula will be as follows:

 

	percentage participating interest of party Y =        	(A + B) x 100
	 
	 	C	 

 

where:

 

A
= deemed expenditures of party Y

 

B
= actual expenditures of party Y

 

C
= total expenditures (deemed and actual) of all parties

 

    	- 19 -

    	 

    

 

Deemed
expenditures are assigned a value based on work done by the Optionee in order to earn its participating interest. Thus, the deemed
expenditures for the parties will be as follows:

 

	If the participating interests of the parties are:	 	Their deemed expenditures upon formation of the joint venture will be:
	 	 	 	 	 
	Optionee	 	 	80	%	 	$	5,400,000	 	 
	 	 	 	 	 	 	 	 	 	 
	Optionor	 	 	20	%	 	$	1,350,000	 	 

 

For
the purposes of calculating B and C above, actual expenditures are those direct and indirect expenditures made by a party in the
exploration and development of the Property. Both the Optionee and Optionor acknowledge that neither party will invest monies
in excess to what is provisioned in this Section without the written consent of the other party in an effort to maintain an 80%
/ 20% equity split. Should one of the parties fail to seek approval from the other prior to incurring additional deemed and actual
expenditures, these monies will not be applied towards the dilution formula.

 

Where
any party’s joint venture interest is diluted to be below 10% as a result of the formula above, its interest will be converted
to a two percent (2%) NSR and such party will have no further interest in the Property or in the joint venture except the NSR
interest. The party who retains the Property may purchase and fully extinguish half of the NSR at any time by making a payment
to the holder of the NSR of $500,000 for each one-half percent (0.5%) purchased, total purchase price $1,000,000.

 

	38.		AMENDMENTS

 

38.1   This
Agreement may only be amended in writing with the mutual consent of each Party.

 

	39.		TIME

 

39.1   Time
is of the essence. 

 

	40.		COUNTERPARTS

 

40.1   This
Agreement may be executed in any number of counterparts with the same effect as if all Parties hereto had signed the same document.
All counterparts will be construed together and constitute one and the same agreement.

 

	41.		Fax
                                                                                                                                                                                                         Execution

 

41.1   This
Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

 

	42.		schedules

 

42.1   The
Schedules attached to this Agreement are incorporated herein and form part of this Agreement.

 

    	- 20 -

    	 

    

 

	43.		OPTION
                                                                                                                                                                                                         ONLY

 

43.1   The
Parties agree and acknowledge that this Agreement represents an elective option only, and there is no requirement for, or obligation
on the part of the Optionee, to exercise the Option, in part or in full.

 

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

 

	MINERA
    ARRIBA S.A. DE C.V. 	 
	 	 	 
	Per:        	 	 
	 	 /s/
    Matthew Hamilton	 
	 	Matthew Hamilton
Authorized
Signatory	 
	 	 	 
	MINAS
    DE ALTA LEY LA PALMA, S.A. DE C.V.	 
	 	 	 
	Per:	 	 
	 	/s/ Mr. Luis Salvador
    Necochea Gamez	 
	 	Mr. Luis Salvador
    Necochea Gamez	 
	 	Authorized Signatory	 

 

    	- 21 -

    	 

    

 

Schedule
A

 

PROPERTY
DESCRIPTION

 

Mineral
Concessions

 

	Mineral
    Concession	 	Title	 	 	Area (Hectares)	 	 	Record Number
	LA PALMA	 	 	226922	 	 	 	145	 	 	016/33705
	MPL LA PALMA	 	 	227492	 	 	 	2,455	 	 	016/34026

 

    	- 22 -

    	 

    

 

SCHEDULE
B

 

Exploration
Expenditures

 

 All
capitalized terms not otherwise defined in this Schedule shall have the meaning ascribed to such term in the Option Agreement
between Minas de Alta Ley la Palma, S.A. de C.V. and Minera Arriba S.A. de C.V dated June 17, 2011 (the “Option
Agreement”)

 

“Exploration
Expenditures” shall mean and include all costs or fees, expenses, liabilities and charges paid, incurred or occurred by
the Optionee which are related to the Property, including without limitation:

 

		a)	All
                                                                                                                                                   costs
                                                                                                                                                   and
                                                                                                                                                   expenses
                                                                                                                                                   incurred
                                                                                                                                                   conduction
                                                                                                                                                   exploration
                                                                                                                                                   and
                                                                                                                                                   prospecting
                                                                                                                                                   activities
                                                                                                                                                   on
                                                                                                                                                   or
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   including,
                                                                                                                                                   without
                                                                                                                                                   limitation,
                                                                                                                                                   the
                                                                                                                                                   active
                                                                                                                                                   pursuit
                                                                                                                                                   of
                                                                                                                                                   required
                                                                                                                                                   state
                                                                                                                                                   or
                                                                                                                                                   local
                                                                                                                                                   authorizations
                                                                                                                                                   or
                                                                                                                                                   permits
                                                                                                                                                   and
                                                                                                                                                   performance
                                                                                                                                                   of
                                                                                                                                                   required
                                                                                                                                                   environmental
                                                                                                                                                   protection
                                                                                                                                                   or
                                                                                                                                                   reclamation
                                                                                                                                                   obligations,
                                                                                                                                                   the
                                                                                                                                                   building,
                                                                                                                                                   maintenance
                                                                                                                                                   and
                                                                                                                                                   repair
                                                                                                                                                   of
                                                                                                                                                   roads,
                                                                                                                                                   drill
                                                                                                                                                   site
                                                                                                                                                   preparation,
                                                                                                                                                   drilling,
                                                                                                                                                   tracking,
                                                                                                                                                   sampling,
                                                                                                                                                   trenching,
                                                                                                                                                   digging
                                                                                                                                                   test
                                                                                                                                                   pits,
                                                                                                                                                   shaft
                                                                                                                                                   sinking,
                                                                                                                                                   acquiring,
                                                                                                                                                   diverting
                                                                                                                                                   and/or
                                                                                                                                                   transporting
                                                                                                                                                   water
                                                                                                                                                   necessary
                                                                                                                                                   for
                                                                                                                                                   exploration,
                                                                                                                                                   logging
                                                                                                                                                   of
                                                                                                                                                   drill
                                                                                                                                                   holes,
                                                                                                                                                   and
                                                                                                                                                   drill
                                                                                                                                                   core,
                                                                                                                                                   completion
                                                                                                                                                   and
                                                                                                                                                   evaluation
                                                                                                                                                   of
                                                                                                                                                   geological,
                                                                                                                                                   geophysical,
                                                                                                                                                   geochemical
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   exploration
                                                                                                                                                   data
                                                                                                                                                   and
                                                                                                                                                   preparation
                                                                                                                                                   of
                                                                                                                                                   interpretive
                                                                                                                                                   reports,
                                                                                                                                                   and
                                                                                                                                                   surveying
                                                                                                                                                   and
                                                                                                                                                   laboratory
                                                                                                                                                   costs
                                                                                                                                                   and
                                                                                                                                                   charges
                                                                                                                                                   (including
                                                                                                                                                   assays
                                                                                                                                                   or
                                                                                                                                                   metallurgical
                                                                                                                                                   analyses
                                                                                                                                                   and
                                                                                                                                                   tests);
	 	 	 
		b)	Salaries,
                                                                                                                                                   wages,
                                                                                                                                                   expenses
                                                                                                                                                   and
                                                                                                                                                   benefits
                                                                                                                                                   of
                                                                                                                                                   employees
                                                                                                                                                   or
                                                                                                                                                   consultants
                                                                                                                                                   engaged
                                                                                                                                                   in
                                                                                                                                                   operations
                                                                                                                                                   directly
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   including
                                                                                                                                                   salaries
                                                                                                                                                   and
                                                                                                                                                   fringe
                                                                                                                                                   benefits
                                                                                                                                                   of
                                                                                                                                                   those
                                                                                                                                                   who
                                                                                                                                                   are
                                                                                                                                                   temporarily
                                                                                                                                                   assigned
                                                                                                                                                   to
                                                                                                                                                   and
                                                                                                                                                   directly
                                                                                                                                                   employed
                                                                                                                                                   on
                                                                                                                                                   work
                                                                                                                                                   relating
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   periods
                                                                                                                                                   of
                                                                                                                                                   time
                                                                                                                                                   such
                                                                                                                                                   employees
                                                                                                                                                   are
                                                                                                                                                   engaged
                                                                                                                                                   in
                                                                                                                                                   such
                                                                                                                                                   activities
                                                                                                                                                   and
                                                                                                                                                   reasonable
                                                                                                                                                   transportation
                                                                                                                                                   expenses
                                                                                                                                                   from
                                                                                                                                                   all
                                                                                                                                                   such
                                                                                                                                                   employees
                                                                                                                                                   to
                                                                                                                                                   and
                                                                                                                                                   from
                                                                                                                                                   their
                                                                                                                                                   regular
                                                                                                                                                   place
                                                                                                                                                   of
                                                                                                                                                   work
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property;
	 	 	 
		c)	All
                                                                                                                                                   costs
                                                                                                                                                   incurred
                                                                                                                                                   in
                                                                                                                                                   performing
                                                                                                                                                   any
                                                                                                                                                   reclamation
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   restoration
                                                                                                                                                   or
                                                                                                                                                   clean-up
                                                                                                                                                   work
                                                                                                                                                   required
                                                                                                                                                   by
                                                                                                                                                   an
                                                                                                                                                   federal,
                                                                                                                                                   state
                                                                                                                                                   or
                                                                                                                                                   local
                                                                                                                                                   agency
                                                                                                                                                   or
                                                                                                                                                   authority,
                                                                                                                                                   and
                                                                                                                                                   all
                                                                                                                                                   costs
                                                                                                                                                   of
                                                                                                                                                   insurance
                                                                                                                                                   obtained
                                                                                                                                                   or
                                                                                                                                                   in
                                                                                                                                                   force
                                                                                                                                                   to
                                                                                                                                                   cover
                                                                                                                                                   activities
                                                                                                                                                   undertaken
                                                                                                                                                   by
                                                                                                                                                   or
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Optionee’s
                                                                                                                                                   behalf
                                                                                                                                                   on
                                                                                                                                                   the
                                                                                                                                                   Property.
	 	 	 
		d)	All
                                                                                                                                                   costs
                                                                                                                                                   incurred
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   preparation
                                                                                                                                                   of
                                                                                                                                                   mining
                                                                                                                                                   plans,
                                                                                                                                                   economic
                                                                                                                                                   studies
                                                                                                                                                   and
                                                                                                                                                   technical
                                                                                                                                                   reports
                                                                                                                                                   pertaining
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   whether
                                                                                                                                                   carried
                                                                                                                                                   out
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   or
                                                                                                                                                   third
                                                                                                                                                   parties
                                                                                                                                                   under
                                                                                                                                                   contract
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Optionee;
	 	 	 
		e)	Taxes
                                                                                                                                                   and
                                                                                                                                                   assessments,
                                                                                                                                                   other
                                                                                                                                                   than
                                                                                                                                                   income
                                                                                                                                                   taxes,
                                                                                                                                                   assessed
                                                                                                                                                   or
                                                                                                                                                   levied
                                                                                                                                                   upon
                                                                                                                                                   or
                                                                                                                                                   against
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   improvements
                                                                                                                                                   thereon
                                                                                                                                                   situated
                                                                                                                                                   thereon
                                                                                                                                                   for
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   is
                                                                                                                                                   responsible
                                                                                                                                                   or
                                                                                                                                                   for
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   reimburses
                                                                                                                                                   Optionor;
	 	 	 
		f)	Any
                                                                                                                                                   tax
                                                                                                                                                   payments
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   made
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   regulatory
                                                                                                                                                   authority
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   incurred
                                                                                                                                                   before
                                                                                                                                                   or
                                                                                                                                                   after
                                                                                                                                                   the
                                                                                                                                                   parties
                                                                                                                                                   entry
                                                                                                                                                   into
                                                                                                                                                   the
                                                                                                                                                   Option
                                                                                                                                                   Agreement;
	 	 	 
		g)	Cost
                                                                                                                                                   of
                                                                                                                                                   material,
                                                                                                                                                   equipment
                                                                                                                                                   and
                                                                                                                                                   supplies
                                                                                                                                                   acquired,
                                                                                                                                                   leased
                                                                                                                                                   or
                                                                                                                                                   hired,
                                                                                                                                                   for
                                                                                                                                                   use
                                                                                                                                                   in
                                                                                                                                                   conducting
                                                                                                                                                   exploration
                                                                                                                                                   or
                                                                                                                                                   development
                                                                                                                                                   operations
                                                                                                                                                   related
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Property
                                                                                                                                                   provided,
                                                                                                                                                   however,
                                                                                                                                                   that
                                                                                                                                                   equipment
                                                                                                                                                   owned
                                                                                                                                                   and
                                                                                                                                                   supplied
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionor
                                                                                                                                                   shall
                                                                                                                                                   be
                                                                                                                                                   chargeable
                                                                                                                                                   at
                                                                                                                                                   rates
                                                                                                                                                   no
                                                                                                                                                   greater
                                                                                                                                                   than
                                                                                                                                                   comparable
                                                                                                                                                   market
                                                                                                                                                   rental
                                                                                                                                                   rates
                                                                                                                                                   available
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   area
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property.
	 	 	 
		h)	Costs
                                                                                                                                                   and
                                                                                                                                                   expenses
                                                                                                                                                   of
                                                                                                                                                   establishing
                                                                                                                                                   and
                                                                                                                                                   maintaining
                                                                                                                                                   field
                                                                                                                                                   offices,
                                                                                                                                                   camps
                                                                                                                                                   and
                                                                                                                                                   housing
                                                                                                                                                   facilities;
                                                                                                                                                   and
	 	 	 
		i)	Costs
                                                                                                                                                   incurred
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Optionee
                                                                                                                                                   in
                                                                                                                                                   examining
                                                                                                                                                   and
                                                                                                                                                   curing
                                                                                                                                                   title
                                                                                                                                                   to
                                                                                                                                                   any
                                                                                                                                                   part
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   in
                                                                                                                                                   maintaining
                                                                                                                                                   the
                                                                                                                                                   Property,
                                                                                                                                                   whether
                                                                                                                                                   through
                                                                                                                                                   the
                                                                                                                                                   performance
                                                                                                                                                   of
                                                                                                                                                   assessment
                                                                                                                                                   work,
                                                                                                                                                   the
                                                                                                                                                   payment
                                                                                                                                                   of
                                                                                                                                                   claim
                                                                                                                                                   maintenance
                                                                                                                                                   fees
                                                                                                                                                   or
                                                                                                                                                   otherwise,
                                                                                                                                                   in
                                                                                                                                                   making
                                                                                                                                                   required
                                                                                                                                                   payments
                                                                                                                                                   or
                                                                                                                                                   performing
                                                                                                                                                   other
                                                                                                                                                   required
                                                                                                                                                   obligations
                                                                                                                                                   under
                                                                                                                                                   any
                                                                                                                                                   underlying
                                                                                                                                                   agreements,
                                                                                                                                                   in
                                                                                                                                                   satisfying
                                                                                                                                                   surface
                                                                                                                                                   use
                                                                                                                                                   or
                                                                                                                                                   damage
                                                                                                                                                   obligations
                                                                                                                                                   to
                                                                                                                                                   landowners,
                                                                                                                                                   or
                                                                                                                                                   in
                                                                                                                                                   conducting
                                                                                                                                                   any
                                                                                                                                                   analyses
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   environmental
                                                                                                                                                   conditions
                                                                                                                                                   at
                                                                                                                                                   the
                                                                                                                                                   Property.

 

    	- 23 -

    	 

    

 

SCHEDULE
C

 

Net
Smelter Returns

 

All
capitalized terms not otherwise defined in this Schedule shall have the meaning ascribed to such term in the Option Agreement
between Minas de Alta Ley la Palma, S.A. de C.V. and Minera Arriba S.A. de C.V dated June 17, 2011

 

“Net
Smelter Returns” shall mean the net amount of money received by Optionee for its own account from the sale of minerals
or concentrates extracted and derived from the ore mined from the Property (“Mineral Production”) to a mill,
smelter or other ore buyer after deduction of all Permissible Deductions.

 

“Permissible
Deductions” means the aggregate (to the extent not previously deducted or accrued) that is paid or accrued in each monthly
period relating to the Mineral Production as follows:

 

		(i)	weighing,
                                                                                                                                                   sampling,
                                                                                                                                                   assaying
                                                                                                                                                   and
                                                                                                                                                   representation
                                                                                                                                                   costs,
                                                                                                                                                   and
                                                                                                                                                   metal
                                                                                                                                                   losses;
	 	 	 
		(ii)	processor,
                                                                                                                                                    refinery
                                                                                                                                                    or
                                                                                                                                                    smelter
                                                                                                                                                    charges;
	 	 	 
		(iii)	ore
                                                                                                                                                     treatment
                                                                                                                                                     charges,
                                                                                                                                                     penalties
                                                                                                                                                     ,
                                                                                                                                                     and
                                                                                                                                                     any
                                                                                                                                                     and
                                                                                                                                                     all
                                                                                                                                                     charges
                                                                                                                                                     made
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     purchaser
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     Mineral
                                                                                                                                                     Production;
	 	 	 
		(iv)	any
                                                                                                                                                    and
                                                                                                                                                    all
                                                                                                                                                    shipping,
                                                                                                                                                    handling,
                                                                                                                                                    forwarding
                                                                                                                                                    and
                                                                                                                                                    insurance
                                                                                                                                                    costs
                                                                                                                                                    which
                                                                                                                                                    may
                                                                                                                                                    be
                                                                                                                                                    incurred
                                                                                                                                                    in
                                                                                                                                                    connection
                                                                                                                                                    with
                                                                                                                                                    the
                                                                                                                                                    transportation
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    Mineral
                                                                                                                                                    Production;
	 	 	 
		(v)	all
                                                                                                                                                   umpire
                                                                                                                                                   charges
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   purchaser
                                                                                                                                                   may
                                                                                                                                                   be
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   pay;
                                                                                                                                                   and
	 	 	 
		(vi)	government
                                                                                                                                                    imposed
                                                                                                                                                    production,
                                                                                                                                                    royalties
                                                                                                                                                    and
                                                                                                                                                    ad
                                                                                                                                                    valorem
                                                                                                                                                    taxes
                                                                                                                                                    (excluding
                                                                                                                                                    taxes
                                                                                                                                                    on
                                                                                                                                                    income).Exhibit 10.2

 

FIRST AMENDMENT TO OPTION AGREEMENT

 

THIS AMENDMENT AGREEMENT (the “Agreement”)
dated as of September 8, 2011 is made among ARRIBA RESOURCES INC., a company incorporated under the laws of British Columbia
(“Arriba”), MINERA ARRIBA S.A. DE C.V., a company incorporated under the laws of Mexico (“Arriba
Mexico”) and MINAS DE ALTA LEY LA PALMA, S.A. DE C.V., a company incorporated under the laws of Mexico (the
“Optionor” and together with Arriba and Arriba Mexico, the “Parties”).

 

WHEREAS:

 

A.                 
Arriba Mexico and the Optionor entered into an Option Agreement (the “Option Agreement”) dated effective
June 17, 2011, pursuant to which Arriba Mexico was required to, among other things, issue 1,500,000 common shares (the “Arriba
Mexico Shares”) of Arriba Mexico to the Optionor in consideration of a 50% interest in the Property; and

 

B.                 
The Parties wish to amend the terms of the Option Agreement to provide for the issuance of 1,500,000 shares of Arriba to
the Optionor in place of the Arriba Mexico Shares.

 

NOW THEREFORE this Agreement witnesses
that for and in consideration of the mutual covenants, agreements, representations and warranties set forth in this Agreement and
for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the Parties,
the Parties hereby agree as follows:

 

		1.	INTERPRETATION

 

		1.1	Capitalized terms not otherwise defined in this Agreement have the meanings assigned to them in
the Option Agreement.

 

		2.	AMENDMENT TO THE Option Agreement

 

		2.1	Section 1.1(f) of the Option Agreement is hereby deleted it in its entirety and replaced with the
following:

 

“(f)“Common
Shares” means common shares in the capital of Arriba Resources Inc.;” 

 

		2.2	Section 3.1(c) of the Option Agreement is hereby deleted it in its entirety and replaced with the
following:

 

“(c)cause Arriba Resources Inc. to issue to the Optionor 1,500,000 Common Shares on or before the Closing
Date.”

 

		3.	GENERAL

 

		3.1	The Option Agreement, as amended by this Agreement, remains in full force and effect. If there
is any conflict with or inconsistency between the terms of the Option Agreement and the terms of this Agreement, then the terms
of this Agreement will prevail to the extent of such conflict or inconsistency.

 

		3.2	The Optionor acknowledges that the representations and warranties of the Optionor contained in
the Option Agreement are true and correct as of the date hereof.

 

		3.3	This Agreement, which includes any interest granted or right arising under this Agreement, may
not be assigned or transferred.

 

		3.4	The Parties may amend this Agreement only in writing.

 

		3.5	This Agreement enures to the benefit of and is binding upon the Parties and, as the case may be,
their respective heirs, executors, administrators and successors.

 

		3.6	This Agreement is governed by the laws of Mexico.

 

    	 

    	 

    
 

		3.7	This Agreement may be executed in counterparts, each of which when delivered will be deemed to
be an original and all of which together will constitute one and the same document.

 

IN WITNESS WHEREOF the Parties have
executed this Agreement as of the date first set forth above.

 

	ARRIBA RESOURCES INC.	 	MINERA ARRIBA S.A. DE C.V
	 	 	 	 	 
	Per:	 	 	Per:	 
	 	Authorized Signatory	 	 	Authorized Signatory
	 	 	 	 	 
	MINAS DE ALTA LEY LA PALMA, S.A. DE C.V.	 	 	 
	 	 	 	 
	Per:	 	 	 	 
	 	Authorized Signatory

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