Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Lincoln Gold Corp. - Exhibit 10.9

 EXHIBIT 10.9 

 PROPERTY OPTION AGREEMENT 

THIS AGREEMENT made and entered into as of the 24th day of December, 2003. 

	 BETWEEN:  	
LARRY McINTOSH and SUSAN K. McINTOSH 
	
	  	
1955 Stephen Ct. 
	
	  	
P.O. Box 1388 
	
	  	
Gardnerville, Nevada 
	
	  	
USA 89410 
	
	 

	
	 

	
	  	
(herein called the “Optionor”) 
	
	 

	
	  	              
                           
                           
                           
                     OF THE FIRST PART 
    
	 

	
	 AND:  	
LINCOLN GOLD CORP. 
	
	  	
435 Martin Street 
	
	  	
Suite 1010 
	
	  	
Blaine, Wa., 
	
	  	
98230 
	
	 

	
	 

	
	  	
(herein called the “Optionee”) 
	
	 

	
	 

	
	  	              
                           
                           
                           
             OF THE SECOND PART  

  WHEREAS the Optionor has represented that it is the sole recorded and beneficial
  owner, in and to a property called the Lincoln Flat Project, described in Schedule
  “A” attached hereto (the “Property”); 

 AND WHEREAS the Optionor, subject to the Net Smelter Royalty
  reserved to the Optionor, now wishes to grant to the Optionee the exclusive
  right and option to acquire an undivided 100% right, title and interest in and
  to the Property on the terms and conditions hereinafter set forth; 

 NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration
  of the premises, the mutual covenants herein set forth and the sum of One Dollar
  ($1.00) of lawful money of U.S. currency now paid by the Optionee to the
  Optionor (the receipt whereof is hereby acknowledged), the Parties hereto do
  hereby mutually covenant and agree as follows: 

 1. Definitions. The following words,
  phrases and expressions shall have the following meanings: 

 1 

 EXHIBIT 10.9 

                a.
  “After Acquired Properties” means any and all mineral interests
  staked, located, granted or acquired by or on behalf of either of the parties
  hereto which are located in whole or in part within one-half of a mile of the
  existing perimeter of the Property, but excepting mineral interests acquired
  by the Optionee from unaffiliated third parties in arm’s length transactions;

                b.
  “Expenditures” includes all direct or indirect expenses [net of
  government incentives and not including payments to the Optionor pursuant to
  section 4 hereof] of or incidental to Mining Operations;

                c.
  “Facilities” means all mines and plants, including without limitation,
  all pits, shafts, adits, haulageways, raises and other underground workings,
  and all buildings, plants, facilities and other structures, fixtures and improvements,
  and all other property, whether fixed or moveable, as the same may exist at
  any time in, or on the Property and relating to the operator of the Property
  as a mine or outside the Property if for the exclusive benefit of the Property
  only; 

                d.
  “Force Majeure” means an event beyond the reasonable control of
  the Optionee that prevents or delays it from conducting the activities contemplated
  by this Agreement other than (1) the making of payments under Section 4; (2)
  maintenance of the Property (including payment of Federal annual mining claim
  maintenance fees and fees for the recording of notices of intent to hold) under
  Section 12; (3) maintenance of Optionee’s insurance coverage under Section
  15; and (4) Optionee’s defense, indemnification and hold harmless obligations
  under Section 14. Such events shall include but not be limited to acts of God,
  war, insurrection, action of governmental agencies reflecting an instability
  in government procedures, or delay in permitting unacceptable to both Optionor
  and Optionee; 

                e.
  “Gold Price” means Monthly Average Gold Price as defined in Schedule
  “B” attached hereto; 

                f.
  “Interest Rate” means LIBOR plus two percent (2%) per annum; 

                g.
  “Mineral Products” means the commercial end products derived from
  operating the Property as a mine; 

                h.
  “Mining Operations” includes: 

                          (i)
  every kind of work done on or with respect to the Property by or under the direction
  of the Optionee during the Option Period; and 

                          (ii)
  without limiting the generality of the foregoing, includes all work which qualifies
  for annual assessment work under applicable Federal and state laws and regulations,
  and the conduct of geophysical, geochemical and geological surveys, studies
  and mapping, investigating, drilling, designing, examining, equipping, improving,
  surveying, shaft sinking, raising, cross-cutting and drifting, searching for,
  digging, 

 2 

 EXHIBIT 10.9 

 trucking, sampling, working and procuring minerals, ores and
  metals, in surveying and bringing any mineral claims to lease or patent, in
  doing all other work usually considered to be prospecting, exploration, development,
  a feasibility study, mining work, milling, concentration, beneficiation of ores
  and concentrates, as well as the separation and extraction of Mineral Products
  and all reclamation, restoration and permitting activities; 

                g.
  “Net Smelter Royalty” means that Net Smelter Royalty as defined
  in Schedule “B” attached hereto (“NSR”); 

                h.
  “Option” means the option granted by the Optionor to the Optionee
  to acquire, subject to the NSR reserved to the Optionor, an undivided 100% right,
  title and interest in and to the Property as more particularly set forth in
  Section 4; 

                i.
  “Option Period” means the period from the date of this Agreement
  to the date at which Optionee has performed its obligations to acquire its 100%
  interest in the Property as prescribed in Section 4, which ever shall be the
  lesser period; 

                j.
  "Property" means and includes: 

                          (i)
  those mining claims described in Schedule A attached hereto; 

                          (ii)
  all rights and appurtenances pertaining to the mining claims including all water
  and water rights of way, and easements, both recorded and unrecorded, to which
  the Optionor and Optionee are entitled in respect thereof. 

2. Headings. Any heading, caption or index hereto shall not be used in any way in construing or interpreting any provision hereof. 

 3. Singular, Plural. Whenever the singular or masculine
  or neuter is used in this 

 Agreement, the same shall be construed as meaning plural or
  feminine or body politic or corporate or vice versa, as the context so requires.

 4. Option. The Optionor hereby grants to the Optionee
  the sole and exclusive right and option (the “Option”) to earn a
  100% interest in the Property, subject to Optionor’s NSR, for total consideration
  consisting of cash payments to the Optionor totalling $210,000 to be made
  as follows: 

	 	 a.      	 the payment to the Optionor of $5,000 upon signing of this Agreement;
    
	 
	 	 b.      	 $5,000 on January 10, 2005; 
	 
	 	 c.      	 $10,000 on January 10, 2006; 
	 
	 	 d.      	 $15,000 on January 10, 2007; 
	 
	 	 e.      	 $25,000 on January 10 of each year from 2008 to 2012; and 

 3 

 EXHIBIT 10.9 

	 	f.	$50,000 on January 10, 2013.

                Following
  which the Optionee shall be deemed to have exercised the Option (the “Exercise
  Date”) and shall be entitled to an undivided 100% right, title and interest
  in and to the Property with the full right and authority to equip the Property
  for production and operate the Property as a mine subject to the rights of the
  Optionor to receive the NSR.

                If
  prior to January 10, 2013 the Optionee completes a positive feasibility for
  the development or mining of Mineral Products on the Property and obtains all
  government approvals, consents, licenses and permits to construct, develop or
  operate a mine on the Property, the Optionee shall purchase the Property prior
  to the commencement of mining of Mineral Products. In that event the purchase
  price for the Property shall be the sum of all unpaid payments due to the Optionor
  pursuant to this article 4 through January 10, 2013. 

                g.
  The doing of any act or the incurrence of any cash payments by the Optionee
  shall not obligate the Optionee to do any further acts or make any further payments.

 5. Royalty. Optionee agrees that the Property shall
  be subject to a royalty in favour of the Optionor equal to 3% of Net Smelter
  Returns if the Gold Price is less than or equal to $400 per ounce, and 4%
  of Net Smelter Returns if the Gold Price is greater than $400 per ounce,
  to be calculated and paid according to and otherwise governed by Schedule B
  hereto. 

 Optionee may at any time elect to make a payment (the “Royalty
  Buydown Option”) to the Optionors to reduce the amount of the Net Smelter
  Royalty by 1%, up to a maximum of 2%, upon the payment of $500,000 for each
  1% of reduction as set out in the table below: 

	Gold Price

      (US$ per ounce) 	 Net Smelter Royalty

      payable on execution

      of the Agreement 	 Net Smelter Royalty

      payable after first

      payment of $500,000 	 Net Smelter Royalty

      payable after second

      payment of $500,000 
	 Less than or equal to $400  	 3%	2%	 1%
	 Greater than $400  	 4%	 3%	 2%

6. Transfer of Title. Upon execution of this Agreement, the Optionee shall
be entitled to record this Agreement against title to the Property.
 4 

 EXHIBIT 10.9 

                Upon
  Optionee exercising the option to acquire the Property pursuant to article 4,
  the Optionor shall deliver to Optionee duly executed transfers to Optionee of
  a 100% interest in and to the Property, and Optionor shall have no further rights
  to the Property other than the royalty interest pursuant to article 5. 

7. Mining Operations during Option.  During the Option Period, the Optionor may provide its mineral exploration expertise on the Property, on a consultation basis for and on behalf of the Optionee, at the election of the Optionee. However,
the Optionee has the exclusive right to determine what Expenditures and Mining Operations it will perform, when they will be performed, and by whom. If the Optionee elects to use the mineral expertise and consulting services of the Optionor, then
the Optionor shall invoice for time for consulting services and related travel expenses from time to time.

                During
  the currency of this Agreement, the Optionee, its servants, agents and workmen
  and any persons duly authorized by the Optionee, shall have the right of access
  to and from and to enter upon and take possession of and prospect, explore and
  develop the Property in such manner as the Optionee in its sole discretion may
  deem advisable and shall have the right to remove and ship therefrom ores, minerals,
  metals, or other products recovered in any manner therefrom. However, the Optionee
  shall purchase the Property, as described in article 4 herein, prior to the
  commencement of mining of Mineral Products. 

                Optionee
  shall reclaim the surface of the Property disturbed by its operations hereunder
  in accordance with applicable federal, state and local rules and regulations.

                Optionee
  and the Optionor agree to share all data relating to the Property. Upon termination
  of this agreement, Optionee agrees that it will, within 30 days after the effective
  date of termination, deliver to the Optionor copies of all raw data regarding
  the Property in Optionee’s possession and not hitherto delivered to the
  Optionor. Optionee does not make, and shall not be deemed to have made, directly
  or indirectly, any express or implied representation or warranty to the Optionor
  as to the accuracy or completeness of any such data delivered to the Optionor
  except that it was developed and delivered in good faith. Optionee shall not
  have any liability arising out of the use of or reliance on any data delivered
  to the Optionor hereunder so long as Optionee developed and delivered it in
  good faith. On the Optionor’s written request, Optionee shall transfer
  to the Optionor custody and possession of drill core, cuttings and pulps for
  the Optionor’s examination and review however, it is hereby agreed that
  such drill core, cuttings and pulps belong to the Optionee and must be returned
  to the Optionee, if so requested by the Optionee unless otherwise agreed between
  the parties. 

                Optionee
  shall deliever to Optionor on or before May 1 of each year a report in reasonable
  detail on Optionee’s activities on and in connection with the Property
  during the preceding calendar year. 

 5 

 EXHIBIT 10.9 

                Optionee
  shall allow the Optionor or any duly authorized agent or representative of the
  Optionor to inspect the Property upon giving Optionee 48 hours written notice;
  provided however that it is agreed and understood that the Optionor or any such
  agent or representative shall not interfere with Optionee's activities on the
  Property and shall be at his own risk and that Optionee shall not be liable
  for any loss, damage or injury incurred by the Optionor or its agent or representative
  arising from its inspection of the Property, however caused. 

 8. Assignment. During the Option Term, Optionee may
  not assign, sell or transfer its rights under this Agreement without Optionor’s
  prior written consent which shall not be withheld unreasonably. It will be a
  condition of any assignment under this Agreement that such assignee shall agree
  in writing to be bound by the terms of this Agreement applicable to the assignor.
  After Optionee has exercised and closed the Option, and subject to Optionor’s
  NSR, Optionee may assign, sell or transfer its interest in the Property without
  Optionor’s consent. 

 9. Termination. This Agreement shall forthwith terminate
  in circumstances where: 

                a.
  The Optionee shall fail to comply with any of its obligations hereunder, subject
  to Force Majeure, and within 30 days of receipt by the Optionee of written notice
  from the Optionor of such default, the Optionee has not: 

                          (i)
  cured such default, or commenced proceedings to cure such default and prosecuted
  same to completion without undue delay; or 

                          (ii)
  given the Optionor notice that it denies that such default has occurred. 

 In the event that the Optionee gives notice that it denies
  that a default has occurred, the Optionee shall not be deemed to be in default
  until the matter shall have been determined finally through such means of dispute
  resolution as such matter has been subjected to by either party; or 

                b.
  The Optionee gives notice of termination to the Optionor, which it shall be
  at liberty to do at any time after the execution of this Agreement. 

                On
  termination of this Agreement, except on Optionee’s exercise and closing
  of the Option, Optionee shall be fully liable for and shall pay all costs of
  maintenance of the Property, including Federal annual mining claim maintenance
  fees and fees for recording of any notice of intent to hold required to be recorded
  under applicable law, which have accrued on the termination date or which will
  accrue within ninety (90) days following the termination date. For example,
  if the Federal annual mining claim maintenance fees are due and payable on or
  before September 1 of any year, if this Agreement is terminated on or after
  June 2 of such year, Optionee shall be fully responsible for and shall pay the
  Federal annual mining claim maintenance fees which are due and payable on or
  before September 1 of that year. 

 6 

 EXHIBIT 10.9 

                On
  termination of this Agreement, Optionee shall have no obligations under this
  Agreement except such obligations which have accrued on or before the termination
  date or which expressly survive termination of this Agreement.

                Upon
  termination of this Agreement under this Section 9, the Optionee shall vacate
  the Property within a reasonable time after such termination, but shall have
  the right of access to the Property for a period of six months thereafter for
  the purpose of removing its chattels, machinery, equipment and fixtures. 

10. Representations, Warranties and Covenants of the Optionor. The Optionor represents, warrants and covenants to and with the Optionee as follows: 

                a.
  Optionor is a person validly existing and in good standing under the laws of
  Nevada and the United States; 

                b.
  Optionor has full power and authority to carry on its business and to enter
  into this Agreement and any agreement or instrument referred to or contemplated
  by this Agreement; 

                c.
  Neither the execution and delivery of this Agreement, nor any of the agreements
  referred to herein or contemplated hereby, nor the consummation of the transactions
  hereby contemplated conflict with, result in the breach of or accelerate the
  performance required by, any agreement to which it is a party; 

                d.
  The execution and delivery of this Agreement and the agreements contemplated
  hereby will not violate or result in the breach of the laws of any jurisdiction
  applicable or pertaining thereto;

                e.
  The Agreement constitutes a legal, valid and binding obligation of the Optionor;

                f.
  The Property is accurately described in Schedule “A”, is in good
  standing under the laws of the jurisdiction in which it is located and is free
  and clear of all liens, charges and encumbrances; 

                g.
  The Optionor is the sole recorded and beneficial owner of the Property and has
  the exclusive right to enter into this Agreement and all necessary authority
  to transfer its interest in the Property in accordance with the terms of this
  Agreement; 

                h.
  No person, firm or corporation has any proprietary or possessors interest in
  the Property other than the Optionor, and no person, firm or corporation is
  entitled to any royalty or other payment in the nature of rent or royalty on
  any minerals, ores, metals or concentrates or any other such products removed
  from the Property other than the United States government or the government
  of the State of Nevada pursuant to statute; 

 7 

 EXHIBIT 10.9 

 notwithstanding any Federal, State or County royalties or
  net proceeds tax derived from mining operations. 

                i.
  Upon request by the Optionee, and at the sole cost of the Optionee, the Optionor
  shall deliver or cause to be delivered to the Optionee copies of all available
  maps and other documents and data in its possession respecting the Property.
  Nothing will be withheld, hidden, or kept from the Optionee, whether the data
  or information is held or not by the Optionor; 

                j.
  Subject to performance by the Optionee of its obligations under Section 4, during
  the Option Period, the Optionee will keep the Property in good standing, free
  and clear of all liens, charges and encumbrances, will carry out all Mining
  Operations on the Property in a miner-like fashion. If the Optionee elects to
  use the mining expertise and consulting services of the Optionor, the Optionor
  will obtain and maintain all necessary approvals, consents, licenses and permits
  as are required under Federal, state and local laws, regulations and ordinances;
  and 

                k.
  Optionor represents that subject to the paramount title of the United States,
  Optionor is the sole and only owner of the Property; that each of the unpatented
  claims included in the Property has been validly located, filed and recorded
  in compliance with the laws of the State of Nevada and of the United States
  as they relate to location and recordation of such claims; that Optionor has
  timely complied with all of the filing provisions of the Federal Land Policy
  and Management Act as they pertain to the unpatented claims included within
  the Property and that said claims are valid and subsisting mining claims; that
  Optionor has performed assessment work or fully and timely paid the applicable
  claim maintenance fee upon said claims through the assessment year ended September
  l, 2003, and has recorded and filed proof thereof, all of which work, payments,
  recordings and filings have been completed in accordance with the applicable
  state and federal statutes pertaining to assessment work; that Optionor’s
  rights in the Property are not subject to any prior agreement, encumbrance,
  burden or restriction created by any act or instrument of Optionor; that to
  the best of Optionor’s knowledge, the Property is free from liens and
  encumbrances and other adverse claims by third parties; and that the Property
  is not burdened with any royalties, overriding royalties, net profits interests
  or payments on production. 

 11. Title to Property. Upon request, Optionor shall
  make available to Optionee such abstracts of title and other title records pertaining
  to the Property which he may have to aid Optionee in any title searching it
  may wish to undertake. Optionee may, but shall have no obligation to, investigate
  and cure as it sees fit any defects in title to the Property which Optionor
  fails to remedy after notice by Optionee. Optionor shall cooperate fully with
  Optionee in the curing of any such title defects, and Optionee shall reimburse
  Optionor for Optionor’s actual expenses resulting from its cooperation
  in this effort. One-half of the expenses incurred by the Optionor and reimbursed
  by Optionee shall be taken as a credit by Optionee against cash consideration
  and the NSR payable hereunder to Optionor. Optionee may, but shall have no obligation
  to, investigate and cure as it sees fit any defects in the title, location,
  recordation or filing of the unpatented mining claims 

 8 

 EXHIBIT 10.9 

 comprising the Property, and Optionor shall cooperate fully
  with the curing of said deficiencies at the expense of Optionee. Additionally,
  Optionor authorizes Optionee, at its discretion reasonably exercised and on
  advance written notice to Optionor, to relocate, amend, restake, refile and
  rerecord any particular mining claim or claims in the Property or documents
  associated therewith. Where required for restaking or relocation, Optionor shall
  execute notices of abandonment of mining claims, and, in turn, Optionee agrees
  that any relocation, restaking or location of fractions within the perimeter
  of the mining claims covered or to be covered by this Agreement shall be accomplished
  in Optionor’s name until the full and complete exercise of the option
  by the Optionee. 

                Optionee
  and Optionor recognize that legislation to amend the mining laws of the United
  States or the state of Nevada may be enacted during the term of this Agreement
  and that any such legislation, if enacted, may contain provisions affecting
  Optionors or holders of existing unpatented mining claims, including but not
  limited to provisions (i) permitting or requiring conversion of existing unpatented
  claims to a new type of mining claim or interest, (ii) permitting or requiring
  Optionors or holders of existing mining claims to comply with some or all of
  the requirements of such amended mining laws, or (iii) permitting or requiring
  Optionors or holders of existing mining claims to commence patent proceedings
  within a specified period of time ("Claim Holder Rights"). For all purposes
  and during the term of this Agreement, Optionor grants to Optionee all Claim
  Holder Rights now or hereafter vested in Optionor, whether contained in federal
  legislation, regulations promulgated thereunder or similar state laws or regulations,
  together with Optionor’s rights to enforce any existing rights to the
  Property or any Claim Holder Rights against any third party, or to litigate
  or contest any such existing rights or Claim Holder Rights before any court
  or administrative agency. In this respect, said Claim Holder Rights shall revert
  back to Optionor at the expiration of this Agreement. Optionee may, but shall
  have no obligation to, exercise such rights as to any, all or none of the mining
  claims included in the Property, at any time and from time to time, in Optionee’s
  sole discretion. Optionor shall cooperate in Optionee’s exercise of such
  rights, including without limitation by executing required forms or documents,
  participating in any action or proceeding relating to such rights or allowing
  any such action or proceeding to be taken or prosecuted in Optionor’s
  name. 

                If
  the United States or any third party attacks the validity of the mining
  claims included in the Property, Optionee may, but shall have no obligation
  to, defend their validity. If any such attack occurs, Optionee shall immediately
  notify Optionor and indicate whether it intends to defend such action. If Optionee
  elects to defend such action, it shall not be precluded from withdrawing from
  such action provided that it first notifies Optionor of such decision within
  such time as may reasonably permit Optionor to continue with such defense if
  Optionor chooses to do so. 

 12. Property Maintenance. To the extent required by
  law, beginning with the annual assessment work period of September 1, 2004,
  to September 1, 2005, and for each succeeding annual assessment work year commencing
  during the term of this Agreement, Optionee shall perform for the benefit of
  the Property work of a type customarily deemed applicable as assessment work
  and of sufficient value to satisfy the annual assessment work requirements of
  all applicable federal, state and local laws, regulations and 

 9 

 EXHIBIT 10.9 

 ordinances, if any, and shall prepare evidence of the same
  in form proper for recordation and filing, and shall timely record and/or file
  such evidence in the appropriate federal, state and local office as required
  by applicable federal, state and local laws, regulations and ordinances, provided
  that if Optionee elects to terminate this Agreement more than 90 days before
  the deadline for performance of annual assessment work for the succeeding annual
  assessment year, Optionee shall have no obligation to perform annual assessment
  work nor to prepare, record and/or file evidence of the same for the following
  annual assessment year. 

                If
  under applicable federal laws and regulations federal annual mining claim maintenance
  fees are required to be paid for the unpatented mining claims which constitute
  all or part of the Property, beginning with the annual assessment work period
  of September 1, 2004, to September 1, 2005, Optionee shall timely and properly
  pay the federal annual mining claim maintenance fees, and shall execute and
  record or file, as applicable, proof of payment of the federal annual mining
  claim maintenance fees and of Optionor’s intention to hold the unpatented
  mining claims which constitute the Property. If Optionee elects to terminate
  this Agreement more than 90 days before the deadline for payment of the federal
  annual mining claim maintenance fees for the succeeding annual assessment year,
  Optionee shall have no obligation to pay the federal annual mining claim maintenance
  fees for the Property for the succeeding assessment year.

                Optionee
  shall perform its obligations under this Section, including payment of all fees
  and filing and recording of required documents, at least thirty (30) days before
  the applicable deadline and shall deliver to Optionor proof of Optionee’s
  performance of its obligations at least fifteen (15) days before the applicable
  deadline. 

 13. Representations, Warranties and Covenants of
  the Optionee. The Optionee represents, warrants and covenants to and with
  the Optionor that: 

                a.
  The Optionee is a company duly organized validly existing and in good standing
  under the laws of Nevada; 

                b.
  The Optionee has full power and authority to carry on its business and to enter
  into this Agreement and any agreement or instrument referred to or contemplated
  by this Agreement; 

                c.
  Neither the execution and delivery of this Agreement, nor any of the agreements
  referred to herein or contemplated hereby, nor the consummation of the transactions
  hereby contemplated conflict with, result in the breach of or accelerate the
  performance required by, any agreement to which it is a party; 

                d.
  The execution and delivery of this Agreement and the agreements contemplated
  hereby will not violate or result in the breach of the laws of any jurisdiction
  applicable or pertaining thereto or of its constating documents; and 

 10 

 EXHIBIT 10.9 

                e.
  This Agreement constitutes a legal, valid and binding obligation of the Optionee.

 14. Indemnity and Survival of Representation. The
  representation and warranties hereinbefore set out are conditions on which the
  parties have relied in entering into this Agreement and shall survive the acquisition
  of any interest in the Property by the Optionee and each of the parties will
  indemnify and save the other harmless from all loss, damage, costs, actions
  and suits arising out of or in connection with any breach of any representation,
  warranty, covenant, agreement or condition made by them and contained in this
  Agreement. 

                Optionee
  agrees to defend, indemnify and save harmless the Optionor from any liability
  to which it may be subject arising from any Mining Operations carried out by
  the Optionee or at its direction on the Property. 

                Optionor
  agrees to defend, indemnify and save harmless the Optionee from any liability
  arising from Optionor’s work done on or with respect to the Property before
  the effective date of this Agreement (the “Prior Operations”); Optionor’s
  obligations for Prior Operations shall terminate two (2) years after the effective
  date of this Agreement. Without limiting the generality of the foregoing, Prior
  Operations includes all work capable of receiving assessment credits pursuant
  to The Mines and Minerals Act of Nevada and the work of assessment, geophysical,
  geochemical and geological surveys, studies and mapping, investigating, drilling,
  designing, examining, equipping, improving, surveying, shaft sinking, raising,
  cross-cutting and drifting, searching for, digging, trucking, sampling, working
  and procuring minerals, ores and metals, in surveying and bringing any mineral
  claims to lease or patent, in doing all other work usually considered to be
  prospecting, exploration, development, a feasibility study, mining work, milling,
  concentration, beneficiation of ores and concentrates, as well as the separation
  and extraction of Mineral Products and all reclamation, restoration and permitting
  activities. 

15. Insurance and Indemnity. 

                a.
  Optionee’s Liability Insurance. Optionee shall, at Optionee’s
  sole cost, keep in force during this Agreement term a policy of commercial general
  liability insurance covering property damage and liability for personal injury
  occurring on or about the Property, with limits in the amount of at least One
  Million Dollars ($1,000,000) per occurrence for injuries to or death of
  person, .5 Million Dollars ($500,000) per occurrence for property damage,
  and with a contractual liability endorsement insuring Optionee’s performance
  of Optionee’s indemnity obligations of this Agreement. 

                b.
  Form and Certificates. The policy of insurance required to be carried by
  Optionee pursuant to this Section shall name Optionor as an additional insured
  and contain a cross-liability and severability endorsement. Optionee’s
  insurance policy shall also be primary insurance without right of contribution
  from any policy carried by Optionor. A certificate of insurance and a copy of
  Optionee’s insurance policy shall be 

 11 

 EXHIBIT 10.9 

provided to Optionor before any entry by Optionee or its agents or employees on the Property and shall provide that such policy is not subject to cancellation, expiration or change, except upon thirty (30) days prior written notice to Optionor.

 16. Liens and Notices of Non-Responsibility. Optionee
  agrees to keep the Property at all times during the term of this Agreement until
  the Exercise Date free and clear of all liens, charges and encumbrances of any
  and every nature and description done made or caused by Optionee, and to pay,
  and defend, indemnify and hold harmless Optionor from and against, all indebtedness
  and liabilities incurred by or for Optionee which may or might become a lien,
  charge or encumbrance; except that Optionee need not discharge or release any
  such lien, charge or encumbrance so long as Optionee disputes or contests the
  lien, charge or encumbrance and posts a bond sufficient to discharge lien acceptable
  to Optionor. Subject to Optionee’s right to post a bond in accordance
  with the foregoing, if Optionee does not within thirty (30) days following the
  imposition of any such lien, charge or encumbrance, cause the same to be released
  of record, Optionor shall have, in addition to Optionor’s contractual
  and legal remedies, the right, but not the obligation, to cause the lien to
  be released by such manner as Optionor deems proper, including payment of the
  claim giving rise to such lien, charge or encumbrance. All sums paid by Optionor
  for and all expenses incurred by it in connection with such purpose, including
  court costs and attorney’s fees, shall be payable by Optionee to Optionor
  on demand, with interest at the Interest Rate at the time of the occurrence,
  provided however, if it is determined by legal or some other means that the
  Optionee wins its disputes or contests of any such lien, charge or encumbrance,
  then the Optionee shall not be obliged to pay the Optionor for the Optionor’s
  expenses incurred by the Optionor in connection with such purpose, including
  court costs and attorney’s fees. 

 17. Confidentiality. The parties hereto agree to hold
  in confidence all information obtained in confidence in respect of the Property
  or otherwise in connection with this Agreement other than in circumstances where
  a party has an obligation to disclose such information in accordance with applicable
  securities legislation.

 18. Memorandum for Recording. Not applicable. 

 19. Notice. All notices, consents, demands and requests
  (in this Section 19 called the “Communication”) required or permitted
  to be given under this Agreement shall be in writing and may be delivered personally
  sent by telegram, by telex or telecopier or other electronic means or may be
  forwarded by first class prepaid registered mail to the parties at their addresses
  first above written. Any Communication delivered personally or sent by telegram,
  telex or telecopier or other electronic means including email shall be deemed
  to have been given and received on the second business day next following the
  date of sending. Any Communication mailed as aforesaid shall be deemed to have
  been given and received on the fifth business day following the date it is posted,
  addressed to the parties at their addresses first above written or to such other
  address or addresses as either party may from time to time specify by notice
  to the other; provided, however, that if there shall be a mail strike, slowdown
  or other labour dispute which might effect delivery of the Communication by
  mail, then the Communication shall be effective only 

 12 

 EXHIBIT 10.9 

 if actually delivered. For purposes of this agreement and
  as a definition of address the Optionor’s email shall be defined as larrylmcintosh@charter.net
  and the Optionor’s telecopier number is 775-782-403. The Optionee’s
  email shall be defined as c/o mad@senategroup.com
  and the Optionee’s telecopier number is c/o 604-689-1722. Notice will
  be provided to each party should their respective email address change. 

 20. Further Assurances. Each of the parties
  to this Agreement shall from time to time and at all times do all such further
  acts and execute and deliver all further deeds and documents as shall be reasonably
  required in order to fully perform and carry out the terms of this Agreement.

 21. Entire Agreement. The parties hereto acknowledge
  that they have expressed herein the entire understanding and obligation of this
  Agreement and it is expressly understood and agreed that no implied covenant,
  condition, term or reservation, shall be read into this Agreement relating to
  or concerning any matter or operation provided for herein. 

 22. Proper Law and Arbitration. This Agreement
  will be governed by and construed in accordance with the laws of the State of
  Nevada and the laws of the United States of America applicable herein. The parties
  hereto hereby irrevocably attorn to the jurisdiction of the Courts of Nevada.
  All disputes arising out of or in connection with this Agreement, or in respect
  of any defined legal relationship associated therewith or derived therefrom,
  shall be referred to and finally resolved by a sole arbitrator by arbitration
  under Chapter 38 of the Nevada Revised Statutes. The arbitration shall be conducted
  in Reno, Nevada. 

 23. Enurement. This Agreement will enure to
  the benefit of and be binding upon the parties hereto and their respective successors
  and permitted assigns. 

24. After Acquired Properties. 

                a.
  The parties covenant and agree, each with the other, that any and all After
  Acquired Properties, excepting mineral interests acquired by the Otionor from
  unaffiliated third parties in arms length transactions, shall be subject to
  the terms and conditions of this Agreement and shall be added to and deemed,
  for the purposes hereof, to be included in the Property. All such After Acquired
  Properties subject to this Agreement shall be acquired in Optionor’s name.
  Any costs incurred by the Optionor in staking, locating, recording or otherwise
  acquiring any “After Acquired Properties” will be deemed to be Mining
  Operations for which the Optionor will be entitled to reimbursements as part
  of the Expenditures payable by the Optionee hereunder. 

                b.
  Any additional claims agreed by the Optionee to be staked by the Optionor within
  half of a mile from the existing perimeter of the Property boundaries shall
  form part of this Agreement. All such additional claims shall be located in
  Optionor’s name. The Optionee will reimburse the Optionor for the costs
  of staking the additional claims, unless the Optionee does not elect to own
  such additional claims. The Optionee has the 

 13 

 EXHIBIT 10.9 

 exclusive right to determine if the staking of any additional
  claims is warranted for any After Acquired Properties. If Optionee elects to
  not own such additional claims, such additional claims shall belong to Optionor
  and Optionor shall be free to assign, sell, transfer or otherwise dispose of
  such additional claims as Optionor determines in Optionor’s sole discretion.

 25. Default. Notwithstanding anything in this Agreement
  to the contrary if any party (a “Defaulting Party”) is in default
  of any requirement herein set forth the party affected by such default shall
  give written notice to the Defaulting Party specifying the default and the Defaulting
  Party shall not lose any rights under this Agreement, unless thirty (30) days
  after the giving of notice of default by the affected party the Defaulting Party
  has failed to take reasonable steps to cure the default by the appropriate performance
  and if the Defaulting Party fails within such period to take reasonable steps
  to cure any such default, the affected party shall be entitled to seek any remedy
  it may have on account of such default including, without limiting, termination
  of this Agreement.

 26. Payment. All references to monies herein
  shall be in U.S. funds unless otherwise specified. The Optionee shall make payments
  for the Expenditures incurred by the Optionor no later than 15 days after the
  receipt of invoices delivered by the Optionor which for the purposes of this
  Agreement shall constitute prompt and due payment. All contractors will invoice
  the Optionee directly and any costs arising with respect to work performed shall
  be solely borne by the Optionee and not the Optionor. 

 27. Option Only. This is an option only and except
  as herein specifically provided otherwise nothing herein contained shall be
  construed as obligating the Optionee to do any acts or make any payments hereunder,
  and any act 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
  or payments. 

 28. Supersedes Previous Agreements. This Agreement
  supersedes and replaces all previous oral or written agreements, memoranda,
  correspondence or other communications between the parties hereto relating to
  the subject matter hereof. 

 IN WITNESS WHEREOF the Parties hereto have duly executed
  this Agreement effective as of the 12th day of January, 2004. 

	 LARRY McINTOSH  	 	 SUSAN K. McINTOSH  
	

    	 	

	 /s/ Larry McIntosh  	 	 /s/ Susan K. McIntosh  
	  	 	 
	  	 	 
	 LINCOLN GOLD CORP.  	 	  
	 	 	 
	              
           /s/ Paul F. Saxton  	 	  
	 Per:  _________________________	 	  
	          Authorized Signatory 
    	 	  

14 

 EXHIBIT 10.9 

 SCHEDULE “A” 

Lincoln Flat Project, Sections 4 and 9 in Township 13 North, Range 24 East, Lyon County, Nevada. 

	  	 BLM  	 COUNTY  
	 CLAIM NAME  	 NMC NUMBER  	 RECORD  
	 NUMBER  	  	  
	  	 	 
	 Grand Tour  1	 NMC842830  	 289812  
	 Grand Tour  2	 NMC842831  	 289813  
	 Grand Tour  3	 NMC842832  	 289814  
	 Grand Tour  4	 NMC842833  	 289815  
	 Grand Tour  5	 NMC842834  	 289816  
	 Grand Tour  6	 NMC842835  	 289817  
	 Grand Tour  7	 NMC842836  	 289818  
	 Grand Tour  8	 NMC842837  	 294214  
	 Grand Tour  9	 NMC842838  	 289820  
	 Grand Tour  10	 NMC842839  	 294215  
	 Grand Tour  11	 NMC842840  	 289822  
	 Grand Tour  12	 NMC842841  	 294216  

15 

 EXHIBIT 10.9 

 SCHEDULE “B” 

  Net Smelter Returns 

 Payor:      Optionee, as described
  in the Agreement to which this schedule is attached. 

 Payee:     Optionor, as described
  in the Agreement to which this schedule is attached. 

 Net Smelter Returns Provisions. The terms defined in
  the instrument to which this Exhibit is attached and made part of shall have
  the same meanings in this Exhibit. The following definitions shall apply to
  this Exhibit. 

 1. Definitions. 

                1.1
  "Gold Production" means the quantity of refined gold outturned to Payor's account
  by an independent third party refinery for gold produced from the Property during
  the month on either a provisional or final settlement basis. 

                1.2
  "Gross Value" shall be determined on a monthly basis and have the following
  meanings with respect to the following Minerals: 

                               1.2.1
  Gold. 

                                              (a)
  If Payor sells unprocessed gold ores, or gold dore or gold concentrates produced
  from Minerals, then Gross Value shall be equal to the proceeds received by Payor
  during the month from such sales. Payor shall have the right to sell such unprocessed
  gold ores, gold dore and gold concentrates to an affiliated party, except that
  such sales shall be considered, solely for the purpose of determining Gross
  Value, to have been sold at prices and on terms no less favorable than those
  that would be obtained from an unaffiliated third party in similar quantities
  and under similar circumstances. 

                                              (b)
  If Payor produces refined gold (meeting the specifications of the London Bullion
  Market Association, and if the London Bullion Market Association no longer prescribes
  specifications, the specifications of such other association generally accepted
  and recognized in the mining industry) from Minerals, and if Section 1.2.1(a)
  above is not applicable, then for purposes of determining Gross Value, the refined
  gold shall be deemed to have been sold at the Monthly Average Gold Price for
  the month in which it was refined. The Gross Value shall be determined by multiplying
  Gold Production during the month by the Monthly Average Gold Price. 

                               1.2.2
  Silver. 

                                              (a)
  If Payor sells unprocessed silver ores, or silver dore or silver concentrates
  produced from Minerals, then Gross Value shall be equal to the proceeds received
  by Payor during the month from such sales. Payor shall have the right to sell
  such unprocessed silver ores, silver dore and silver concentrates to an affiliated
  party, provided that such sales shall be considered, solely for the purpose
  of determining Gross Value, to have been sold at prices and on terms no less
  favorable than those that would be obtained from an unaffiliated third party
  in similar quantities and under similar circumstances. 

 16 

 EXHIBIT 10.9 

                                              (b)
  If Payor produces refined silver (meeting the specifications for refined silver
  subject to the New York Silver Price published by Handy & Harmon, and if
  Handy & Harmon no longer publishes such specifications, the specifications
  of such other association or entity generally accepted and recognized in the
  mining industry) from Minerals, and if Section 1.2.2(a) above is not applicable,
  the refined silver shall be deemed to have been sold at the Monthly Average
  Silver Price for the month in which it was refined. The Gross Value shall be
  determined by multiplying Silver Production during the month by the Monthly
  Average Silver Price. 

                               1.2.3
  All Other Minerals. 

                                              (a)
  If Payor sells unprocessed ores, dore or concentrates of any Minerals other
  than gold or silver, then the Gross Value shall be equal to the amount of proceeds
  received by Payor during the month from such sales. Payor shall have the right
  to sell such unprocessed ores, dore or concentrates to an affiliated party,
  provided that such sales shall be considered, solely for the purpose of determining
  Gross Value, to have been sold at prices and on terms no less favorable than
  those that would be obtained from an unaffiliated third party in similar quantities
  and under similar circumstances. 

                                              (b)
  If Payor produces refined or processed metals from Minerals other than refined
  gold or refined silver, and if Section 1.2.3(a) above is not applicable, then
  Gross Value shall be equal to the amount of the proceeds received by Payor during
  the month from the sale of such refined or processed metals. Payor shall have
  the right to sell such refined or processed metals to an affiliated party, provided
  that such sales shall be considered, solely for purposes of determining Gross
  Value, to have been sold at prices and on terms no less favorable than those
  that would be obtained from an unaffiliated third party in similar quantities
  and under similar circumstances. 

                               1.3
  “Minerals” means all minerals and mineral materials, including gold,
  silver, platinum and platinum group metals, base metals (including antimony,
  chromium, cobalt, copper, lead, manganese, mercury, nickel, molybdenum, titanium,
  tungsten, zinc), and other metals and mineral materials which are on, in or
  under the Property.

                               1.4
  "Monthly Average Gold Price" means the average London Bullion Market Association
  Afternoon Gold Fix, calculated by dividing the sum of all such prices reported
  for the month by the number of days for which such prices were reported during
  that month. If the London Bullion Market Association Afternoon Gold Fix ceases
  to be published, all such references shall be replaced with references to prices
  of gold for immediate sale in another established market selected by Payor,
  as such prices are published in Metals Week magazine, and if Metals Week magazine
  no longer publishes such prices, the prices of such other association or entity
  generally accepted and recognized in the mining industry. 

                               1.5
  "Monthly Average Silver Price" means the average New York Silver Price as published
  daily by Handy & Harmon, calculated by dividing the sum of all such prices
  reported for the month by the number of days in such month for which such prices
  were reported. If the Handy & Harmon quotations cease to be published, all
  such references shall be replaced with references to prices of silver for immediate
  sale in another established market selected by Payor as published in Metals
  Week magazine, and if Metals Week magazine no longer publishes such prices,
  the prices of such other association or entity generally accepted and recognized
  in the mining industry. 

 17 

 EXHIBIT 10.9 

                1.6
  "Net Smelter Returns" means the Gross Value of all Minerals, less only the following
  costs, charges and expenses paid or incurred by Payor with respect to the refining
  and smelting of such Minerals, without limitation:

                               1.6.1
  Charges for smelting and refining (including assaying, penalty and sampling
  charges); and

                               1.6.2
  Actual costs of transportation (including freight, insurance, security, transaction
  taxes, handling, port, demurrage, delay and forwarding expenses incurred by
  reason of or in the course of such transportation) of concentrates or dore metal
  from the Property to the smelter or refinery, but in no event charges or costs
  of agglomeration, crushing, extraction, leaching, milling, mining, processing
  or transportation of Minerals or ores from any mine on the Property to an agglomerator,
  autoclave, concentrator, crusher, heap or other leach process, mill or plant.

                1.7
  "Property" means the interests and properties described in the instrument to
  which this Exhibit is attached and is made a part. 

                1.8
  "Silver Production" means the quantity of refined silver outturned to Payor's
  account by an independent third-party refinery for silver produced from the
  Property during the month on either a provisional or final settlement basis.

 2. Payment Procedures. 

                2.1
  Accrual of Obligation. Payor's obligation to pay the royalty shall accrue
  upon the sale or shipment from the Property of unrefined metals, dore metal,
  concentrates, ores or other Minerals products or, if refined metals are produced,
  upon the outturn of refined metals meeting the requirements of the specified
  published price to Payor's account. 

                 2.2
  Quarterly Calculations and Payments.  Net Smelter Returns royalties shall
  be determined on a quarterly basis. Payor shall pay Payee each quarterly royalty
  payment on or before the last business day of the month immediately following
  the last day of the month in which the royalty payment obligation accrued. 

                 2.3
  Futures or Forward Sales. Except as provided in Sections 1.2.1(a), 1.2.2(a)
  and 1.2.3 above (regarding sales of unprocessed gold and silver and sales of
  Minerals other than gold and silver), Gross Value shall be determined irrespective
  of any actual arrangements for the sale or other disposition of Minerals by
  Payor, specifically including but not limited to forward sales, futures trading
  or commodities options trading, and any other price hedging, price protection,
  and speculative arrangements that may involve the possible delivery of gold,
  silver or other metals produced from Minerals. 

                 2.4
  Sampling and Commingling.  Payor shall have the right to commingle Minerals
  and ores from the Property and materials from other properties, provided, that
  Payor first informs Payee, in writing, of Payor’s intention to commingle
  and delivers to Payee a detailed written description of Payor’s commingling
  plan. Payee shall have sixty (60) days during which to review and comment on
  Payor’s proposed commingling plan. In any and all events, all Minerals
  and ores shall be measured and sampled by Payor in accordance with sound mining
  and metallurgical practices for metal and mineral content before commingling
  of any such Minerals or ores with materials from any other property. Representative
  samples of materials from the Property intended to be commingled shall 

 18 

 EXHIBIT 10.9 

 be retained by Payor, and assays of these samples shall be
  made before commingling to determine the metal content of each ore. Detailed
  records shall be kept by Payee showing measurements, assays of metal content
  and gross metal content of the materials from the Property. 

                 2.5
  Statements. At the time of payment of the royalty, Payor shall accompany
  such payment with a statement which shows in detail the quantities and grades
  of refined gold, silver or other metals or dore, concentrates, Minerals or ores
  produced from the Property sold or deemed sold by Payor in the preceding quarter;
  the Monthly Average Gold Price and Monthly Average Silver Price, as applicable;
  costs and other deductions; and other pertinent information in detail to explain
  the calculation of the payment with respect to such quarter. Payor shall deliver
  payment to Payee at the address provided in the instrument to which this Exhibit
  is attached or such other address as Payee designates in writing or by wire
  transfer to an account designated by Payee. 

                 2.6
  Inventories and Stockpiles. Payor shall include in all quarterly statements
  a description of the quantity and quality of any gold or silver dore that has
  been retained as inventory for more than ninety (90) days. Payee shall have
  thirty (30) calendar days after receipt of the statement to either: (a) elect
  that the dore be deemed sold, with Gross Value to be determined as provided
  in Sections 1.2.1(b) for gold and 1.2.2(b) for silver, as of such thirtieth
  (30th) day utilizing the mine weights and assays for such dore and utilizing
  a reasonable recovery rate for refined metal and reasonable deemed charges for
  all deductions specified in Section 1.6 above, or (b) elect to wait until such
  time as the royalty payment otherwise would become payable pursuant to Sections
  1.2.1(b) and 1.2.2(b) . The Payee’s failure to respond within such time
  shall be deemed to be an election to use the methods described in Sections 1.2.1(b)
  and 1.2.2(b) . No royalty payments shall be due regarding stockpiles of other
  Minerals, concentrates or ores unless and until such Minerals, concentrates
  or ores are actually sold. 

                 2.7
  Audit. Upon thirty (30) days’ advance notice and at a reasonable time,
  the Payee shall have the right to audit and examine the Payor’s accounts
  and records relating to the calculation and payment of the Net Smelter Returns
  royalty payments. If such audit determines that there has been a deficiency
  or an excess in the payment made to Payee, such deficiency or excess shall be
  resolved by adjusting the next quarterly royalty payment due Payee. Payee shall
  pay all costs of such audit unless the audit reveals an underpayment during
  the audit period of five percent (5%) or more of the royalty payments paid during
  the audit period. All accounts, books and records used by Payor to calculate
  the royalty payments shall be kept in accordance with generally accepted accounting
  principles applicable to the mining industry. 

 19Filed by Automated Filing Services Inc. (604) 609-0244 - Rapa Mining Inc. - Exhibit 10.1

 SHARE PURCHASE AGREEMENT 

THIS AGREEMENT is dated for reference as of the 7th day of April, 2005. 

 AMONG: 

	 	CLYVIA CAPITAL HOLDING GMBH., a company duly formed under the
        laws of Germany, with its principal office at Kosterstr. 1a, 47053 Duisburg,
        Germany 

       (hereinafter called the "Vendor") 

OF THE FIRST PART 

 AND: 

	 	RAPA MINING INC., a corporation duly formed under the
        laws of Nevada with its principal office at Suite 900, 555 Burrard Street
        Vancouver, British Columbia, Canada V7X 1M8 

       (hereinafter called the "Purchaser") 

OF THE SECOND PART 

 AND: 

	 	CLYVIA TECHNOLOGY GMBH, a company with limited liability
        duly formed under the laws of Germany with its principal office at Friedrich-List-Allee
        10, 41844 Wegberg, Germany 

       (hereinafter called the "Company") 

OF THE THIRD PART 

 AND:

	 	BRIAN CHESTON of #206 - 4170 Nanaimo Street, Vancouver,
        British Columbia, Canada

       (hereinafter called the "Principal Shareholder") 

OF THE FOURTH PART 

WHEREAS: 

 A. The Purchaser has offered to purchase all of the issued
  and outstanding shares of the Company; 

 B. The Vendor has agreed to sell to the Purchaser all of the
  issued and outstanding shares of the Company held by the Vendor on the terms
  and conditions set forth herein; 

 1

 C. In order to induce the Vendor to sell the shares of the
  Company to the Purchaser, the Principal Shareholder has agreed to sell and transfer
  to the Vendor certain shares of the Purchaser; 

 D. In order to record the terms and conditions of the agreement
  among them the parties wish to enter into this Agreement; 

 NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration
  of the foregoing and of the sum of $1.00 paid by the Purchaser to the Vendor
  and to the Company, the receipt of which is hereby acknowledged, the parties
  hereto agree each with the other as follows: 

 1. INTERPRETATION 

 1.1 Where used herein or in any amendments or Schedules hereto,
  the following terms shall have the following meanings:

	 	(a) "Business" means the business in which the Company is engaged, namely:
    

	 	 	 (i)      	 the manufacture of fuels from organic waste through the process known
      as “catalytic depolymerization”; and 
	 
	 	 	 (ii)      	 any other enterprise that is directly related to the foregoing. 
	 

	 	 (b)      	 "Closing Date" means the fifth business day following
        the day on which the Company delivers the financial statements referred
        to in Article 5 to the Purchaser or such other date as may be mutually
        agreed upon by the parties hereto but in any event not more than 60 days
        from the date of this Agreement. 

	 
	 	 (c)      	 "Company Financial Statements" means those unaudited
        financial statements of the Company, as at December 31, 2004, which are
        attached as Schedule "A" hereto. 

	 
	 	 (d)      	 "Company Shares" means the one share of the capital
        stock of the Company held by the Vendor, being all of the issued and outstanding
        shares of the Company. 

	 
	 	 (e)      	 “License Agreement” means the license
        agreement executed by the Company on December 13, 2004 between the Company
        and ECO Impact GmbH relating to the exclusive grant of a worldwide license
        with respect to those patents listed in Schedule “I” hereto.
      

	 
	 	 (f)      	 "Principal Shares" means the 14,000,000 presently
        issued restricted common shares of the Purchaser to be transferred to
        the Vendor as described in paragraph 2.4. 

	 
	 	 (g)      	 "Purchaser Audited Financial Statements" means those
        audited financial statements of the Purchaser as at January 31, 2004,
        attached as Schedule “B” hereto. 

 2

 

	 	 (h)      	 "Purchaser Financial Statements" means, collectively,
        the Purchaser Audited Financial Statements and the Purchaser Unaudited
        Financial Statements. 

	 
	 	 (i)      	 "Purchaser Shares" means those fully paid and non-assessable
        shares in the common stock of the Purchaser to be issued by the Purchaser
        to the Vendor as set out in Article 2. 

	 
	 	 (j)      	 “Purchaser Unaudited Financial Statements”
        means those unaudited financial statements of the Purchaser as at October
        31, 2004, attached as Schedule “C” hereto. 

	 
	 	 (k)      	 “Securities Act” means the United States
        Securities Act of 1933. 

 1.2 All dollar amounts referred to in this Agreement are in
  United States funds, unless expressly stated otherwise.

 1.3 The following schedules are attached to and form part
  of this Agreement:

	 	Schedule A - Company Financial Statements 

      Schedule B – Purchaser Audited Financial Statements Schedule C - Purchaser
      Unaudited Financial Statements 

      Schedule D - Employment, Service & Pension Agreements of the Company
      

      Schedule E - Real Property & Leases of the Company 

      Schedule F - Encumbrances on the Company's Assets 

      Schedule G - Company Litigation Schedule H - Purchaser Litigation 

      Schedule I - Registered Trademarks, Trade Names & Patents of the Company
    

2. SHARE EXCHANGE AND PURCHASE OF SHARES 

 2.1 The Vendor hereby covenants and agrees to sell, assign
  and transfer to the Purchaser, and the Purchaser covenants and agrees to purchase
  from the Vendor, the Company Shares held by the Vendor. 

 2.2 In consideration for the sale of the Company Shares by
  the Vendor to the Purchaser, the Purchaser shall allot and issue to the Vendor
  or its nominees the Purchaser Shares. 

 2.3 The total number of Purchaser Shares to be allotted and
  issued by the Purchaser to the Vendor or its nominees shall be 55,000,000 shares.

 2.4 In consideration for the Vendor entering into this Agreement
  and completing the sale of the Company Shares to the Purchaser, the Principal
  Shareholder agrees to transfer the Principal Shares to the Vendor on the Closing
  Date at and for an aggregate price of $10,000. 

 2.5 The Vendor acknowledges that the Purchaser Shares are
  “restricted securities” within the meaning of the Securities Act
  and will be issued to the Vendor in accordance with 

 3

 Regulation S of the Securities Act. Any certificates representing
  the Purchaser Shares will be endorsed with the following legend in accordance
  with Regulation S of the Securities Act: 

   “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
    HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND
    HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
    OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH SECURITIES
    MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN
    ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION
    UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER
    THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
    UNLESS IN COMPLIANCE WITH THE ACT”. 

 3. COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE VENDOR AND THE COMPANY

 The Vendor and the Company jointly and severally covenant
  with and represent and warrant to the Purchaser as follows, and acknowledge
  that the Purchaser is relying upon such covenants, representations and warranties
  in connection with the purchase by the Purchaser of the Company Shares: 

 3.1 The Company has been duly incorporated and organized,
  is a validly existing company with limited liability and is in good standing
  under the laws of Germany; it has the corporate power to own or lease its property
  and to carry on the Business; it is duly qualified as a company with limited
  liability to do business and is in good standing with respect thereto in each
  jurisdiction in which the nature of the Business or the property owned or leased
  by it makes such qualification necessary; and it has all necessary licenses,
  permits, authorizations and consents to operate its Business in accordance with
  the terms of its business plan. 

 3.2 The paid in capital of the Company consists of one share
  with a par value of € 25,000. 

 3.3 The Company Shares owned by the Vendor are owned by it
  as the beneficial and recorded owner with good and marketable title thereto,
  free and clear of all mortgages, liens, charges, security interests, adverse
  claims, pledges, encumbrances and demands whatsoever. 

 3.4 No person, firm or corporation has any agreement or option
  or any right or privilege (whether by law, pre-emptive or contractual) capable
  of becoming an agreement or option for the purchase from the Vendor of any of
  the Company Shares held by it. 

 3.5 No person, firm or corporation has any agreement or option,
  including convertible securities, warrants or convertible obligations of any
  nature, or any right or privilege (whether by law, pre-emptive or contractual)
  capable of becoming an agreement or option for the purchase, subscription, allotment
  or issuance of any of the unissued shares in the capital of the Company or of
  any securities of the Company. 

 4

 3.6 The Company does not have any subsidiaries or agreements
  of any nature to acquire any subsidiary or to acquire or lease any other business
  operations and will not prior to the Closing Date acquire, or agree to acquire,
  any subsidiary or business without the prior written consent of the Purchaser.

 3.7 The Company will not, without the prior written consent
  of the Purchaser, issue any additional shares from and after the date hereof
  to the Closing Date or create any options, warrants or rights for any person
  to subscribe for or acquire any unissued shares in the capital of the Company.

 3.8 The Company is not a party to or bound by any guarantee,
  warranty, indemnification, assumption or endorsement or any other like commitment
  of the obligations, liabilities (contingent or otherwise) or indebtedness of
  any other person, firm or corporation. 

 3.9 The books and records of the Company fairly and correctly
  set out and disclose in all material respects, in accordance with generally
  accepted accounting principles, the financial position of the Company as at
  the date hereof, and all material financial transactions of the Company relating
  to the Business have been accurately recorded in such books and records. 

 3.10 The Company Financial Statements present fairly the assets,
  liabilities (whether accrued, absolute, contingent or otherwise) and the financial
  condition of the Company as at the date thereof and there will not be, prior
  to the Closing Date, any material increase in such liabilities other than increases
  arising as a result of carrying on the Business in the ordinary and normal course.

 3.11 The entering into of this Agreement and the consummation
  of the transactions contemplated hereby will not result in the violation of
  any of the terms and provisions of the constating documents or bylaws of the
  Company or of any indenture, instrument or agreement, written or oral, to which
  the Company or the Vendor may be a party. 

 3.12 The entering into of this Agreement and the consummation
  of the transactions contemplated hereby will not, to the best of the knowledge
  of the Company and the Vendor, result in the violation of any law or regulation
  of Germany or of any states in which they are resident or in which the Business
  is or at the Closing Date will be carried on or of any municipal bylaw or ordinance
  to which the Company or the Business may be subject. 

 3.13 This Agreement has been duly authorized, validly executed
  and delivered by the Company and the Vendor. 

 3.14 The Business has been carried on in the ordinary and
  normal course by the Company since the date of the Company Financial Statements
  and will be carried on by the Company in the ordinary and normal course after
  the date hereof and up to the Closing Date. 

 3.15 Except in connection with the real property leases described
  on Schedule E hereto, no capital expenditures in excess of $5,000 have been
  made or authorized by the Company since the date of the Company Financial Statements
  and no capital expenditures in excess of $5,000 will be made or authorized
  by the Company after the date hereof and up to the Closing Date without the
  prior written consent of the Purchaser. 

5

 3.16 Except as disclosed in the Schedules hereto, the Company
  is not a party to any written or oral employment, service or pension agreement,
  and, the Company does not have any employees who cannot be dismissed on not
  more than one months notice without further liability. 

 3.17 Except as disclosed in the Schedules hereto, the Company
  does not have outstanding any bonds, debentures, mortgages, notes or other indebtedness,
  and the Company is not under any agreement to create or issue any bonds, debentures,
  mortgages, notes other indebtedness, except liabilities incurred in the ordinary
  course of business. 

 3.18 Except as disclosed in the Schedules hereto, the Company
  is not the owner, lessee or under any agreement to own or lease any real property.

 3.19 Except as disclosed in the Schedules hereto, the Company
  owns, possesses and has good and marketable title to its undertaking, property
  and assets, and without restricting the generality of the foregoing, all those
  assets described in the balance sheet included in the Company Financial Statements,
  free and clear of any and all mortgages, liens, pledges, charges, security interests,
  encumbrances, actions, claims or demands of any nature whatsoever or howsoever
  arising. 

 3.20 The Company has its property insured against loss or
  damage by all insurable hazards or risks on a replacement cost basis and such
  insurance coverage will be continued full force and effect to and including
  the Closing Date; to the best of the knowledge of the Company and the Vendor,
  the Company is not in default with respect to any of the provisions contained
  in any such insurance policy and has not failed to give any notice or present
  any claim under any such insurance policy in due and timely fashion. 

 3.21 Except as disclosed herein the Company does not have
  any outstanding material agreements, contracts or commitments, whether written
  or oral, of any nature or kind whatsoever, including, but not limited to, employment
  agreements, except: 

	
(a)      		
the License Agreement;	
	 
	
(b)      		
agreements, contracts and commitments in the ordinary course of business;	
	 
	
(c)      		
service contracts on office equipment;	
	 
	
(d)      		
the employment, services and pension agreements described in the Schedules hereto; and	
	 
	
(e)      		
the lease described in the Schedules hereto.	
	 

 3.22 Except as provided in the Schedules hereto, there are
  no actions, suits or proceedings (whether or not purportedly on behalf of the
  Company), pending or threatened against or affecting the Company or affecting
  the Business, at law or in equity, or before or by any federal, state, municipal
  or other governmental department, commission, board, bureau, agency or instrumentality,
  domestic or foreign and neither the Company nor the Vendor are aware of any
  existing ground on which any such action, suit or proceeding might be commenced
  with any reasonable likelihood of success. 

 6

 3.23 The Company is not in material default or breach of any
  contracts, agreements, written or oral, indentures or other instruments to which
  it is a party and there are no facts, which, after notice or lapse of time or
  both, that would constitute such a default or breach, and all such contracts,
  agreements, indentures or other instruments are now in good standing and the
  Company is entitled to all benefits thereunder. 

 3.24 The Company has the right to use all of the registered
  trademarks, trade names and patents, both domestic and foreign, in relation
  to the Business as set out in the Schedules hereto. 

 3.25 To the best of the knowledge of the Company and the Vendor,
  the conduct of the Business does not infringe upon the patents, trade marks,
  trade names or copyrights, domestic or foreign, of any other person, firm or
  corporation. 

 3.26 To the best of the knowledge of the Company and the Vendor,
  the Company is conducting and will conduct the Business in compliance with all
  applicable laws, rules and regulations of each jurisdiction in which the Business
  is or will be carried on, the Company is not in material breach of any such
  laws, rules or regulations and is, or will be on the Closing Date, fully licensed,
  registered or qualified in each jurisdiction in which the Company owns or leases
  property or carries on or proposes to carry on the Business to enable the Business
  to be carried on as now conducted and its property and assets to be owned, leased
  and operated, and all such licenses, registrations and qualifications are or
  will be on the Closing Date valid and subsisting and in good standing and that
  none of the same contains or will contain any provision, condition or limitation
  which has or may have a materially adverse effect on the operation of the Business.

 3.27 All facilities and equipment owned or used by the Company
  in connection with the Business are in good operating condition and are in a
  state of good repair and maintenance. 

 3.28 Except as disclosed in the Company Financial Statements
  and salaries incurred in the ordinary course of business since the date thereof,
  the Company has no loans or indebtedness outstanding which have been made to
  or from directors, former directors, officers, shareholders and employees of
  the Company or to any person or corporate body not dealing at arm's length with
  any of the foregoing, and will not, prior to closing, pay any such indebtedness
  unless in accordance with budgets agreed in writing by the Purchaser. 

 3.29 The Company has made full disclosure to the Purchaser
  of all aspects of the Business and has made all of its books and records available
  to the representatives of the Purchaser in order to assist the Purchaser in
  the performance of its due diligence searches and no material facts in relation
  to the Business have been concealed by the Company or the Vendor. 

 3.30 There are no material liabilities of the Company of any
  kind whatsoever, whether or not accrued and whether or not determined or determinable,
  in respect of which the Company or the Purchaser may become liable on or after
  the consummation of the transaction contemplated by this Agreement, other than
  liabilities which may be reflected on the Company Financial Statements, liabilities
  disclosed or referred to in this Agreement or in the Schedules attached hereto,
  or liabilities incurred in the ordinary course of business and attributable
  to the period since the date of the Company Financial Statements, none of which
  has been materially 

 7

 adverse to the nature of the Business, results of operations,
  assets, financial condition or manner of conducting the Business. 

 3.31 The Articles, bylaws and other constating documents of
  the Company in effect with the appropriate corporate authorities as at the date
  of this Agreement will remain in full force and effect without any changes thereto
  as at the Closing Date. 

 3.32 The directors and officers of the Company are as follows:

	
Name 
		
Position 
	
	 

	
	
Dr. Manfred Sappok 
		
Executive Board Member 
	
	
Dr. Dieter Wagels 
		
Executive Board Member 
	

 3.33 The Vendor represents and warrants to the Purchaser and
  the Principal Shareholder that the Vendor is not a “U.S. Person”
  as defined by Regulation S of the United States Securities Act of
  1933 and is not acquiring the Purchaser Shares for the account or benefit
  of a U.S. Person. 

 3.34 The Vendor represents and warrants to the Purchaser that
  it is acquiring the Purchaser Shares for investment purposes, only, with no
  present intention of dividing its interest with others or reselling or otherwise
  disposing of any or all of the Purchaser Shares. 

 3.35 The Vendor acknowledges that the Vendor was not in the
  United States at the time the offer to acquire the Purchaser Shares was received
  it.

 4. COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND
  THE PRINCIPAL SHAREHOLDER

 The Purchaser and the Principal Shareholder covenant with
  and represent and warrant to the Vendor and the Company as follows and acknowledge
  that the Vendor is relying upon such covenants, representations and warranties
  in entering into this Agreement: 

 4.1 The Purchaser has been duly incorporated and organized
  and is validly subsisting under the laws of the State of Nevada; it is a reporting
  issuer under the United States Securities Exchange Act of 1934
  and is in good standing with respect to all filings required to be made under
  such statutes with the United States Securities and Exchange Commission; it
  has the corporate power to own or lease its properties and to carry on its business
  as now being conducted by it; and it is duly qualified as a corporation to do
  business and is in good standing with respect thereto in each jurisdiction in
  which the nature of its business or the property owned or leased by it makes
  such qualification necessary. 

 4.2 The authorized capital of the Purchaser consists of 525,000,000
  shares of common stock with a par value $0.001 per share, of which 42,805,000
  shares are currently issued and outstanding as fully paid and non-assessable.

 4.3 No person, firm or corporation has any agreement or option,
  including convertible securities, warrants or convertible obligations of any
  nature, or any right or privilege (whether by 

 8

 law, pre-emptive or contractual) capable of becoming an agreement
  or option for the purchase, subscription, allotment or issuance of any of the
  unissued shares in the capital of the Purchaser.

 4.4 The Purchaser will not, without the prior written consent
  of the Vendor, issue any additional shares from and after the date hereof to
  the Closing Date or create any options, warrants or rights for any person to
  subscribe for any unissued shares in the capital of the Purchaser. 

 4.5 The directors and officers of the Purchaser are as follows:

	
Name 
		
Position 
	
	 

	
	
Brian Cheston 
		
Director, President, Secretary and Treasurer 
	
	
Paul Chung 
		
Director 
	

  4.6 The Purchaser Audited Financial Statements present fairly the assets, liabilities
  (whether accrued, absolute, contingent or otherwise) and the financial condition
  of the Purchaser as at the date thereof. 

 4.7 The Purchaser Unaudited Financial Statements present fairly
  the assets, liabilities (whether accrued, absolute, contingent or otherwise)
  and the financial condition of the Purchaser as of the date thereof and there
  will not be, prior to the Closing Date, any material increase in such liabilities.

 4.8 There have been no material adverse changes in the financial
  position or condition of the Purchaser or damage, loss or destruction materially
  affecting the business or property of the Purchaser since the date of the Purchaser
  Unaudited Financial Statements except as may be disclosed by the Purchaser in
  Current Reports on Form 8-K filed with the United States Securities and Exchange
  Commission. 

 4.9 The Purchaser has made full disclosure to the Company
  of all material aspects of the Purchaser's business and has made all of its
  books and records available to the representatives of the Company in order to
  assist the Company in the performance of its due diligence searches and no material
  facts in relation to the Purchaser's business have been concealed by the Purchaser.

 4.10 The Purchaser is not a party to or bound by any agreement
  or guarantee, warranty, indemnification, assumption or endorsement or any other
  like commitment of the obligations, liabilities (contingent or otherwise) or
  indebtedness or any other person, firm or corporation. 

 4.11 Except as disclosed in the Schedules attached hereto,
  there are no actions, suits or proceedings (whether or not purportedly on behalf
  of the Purchaser), pending or threatened against or affecting the Purchaser
  or affecting the Purchaser's business, at law or in equity, or before or by
  any federal, state, municipal or other governmental department, commission,
  board, bureau, agency or instrumentality, domestic or foreign and the Purchaser
  is not aware of any existing ground on which any such action, suit or proceeding
  might be commenced with any reasonable likelihood of success. 

 9

 4.12 The Purchaser's common shares are quoted on the NASD
  OTC Bulletin Board and the Purchaser is not in breach of any regulation, by-law
  or policy of, or any of the terms and conditions of its quotation on the NASD
  OTC Bulletin Board applicable to the Purchaser or its operations. 

 4.13 The Purchaser does not currently have any employees and
  is not party to any collective agreements with any labour unions or other association
  of employees. 

 4.14 The Purchaser does not have any subsidiaries or agreements
  of any nature to acquire any subsidiary or to acquire or lease any other business
  operations and will not prior to the Closing Date acquire, or agree to acquire,
  any subsidiary or business without the prior written consent of the Company.

 4.15 The business of the Purchaser now and until the Closing
  Date will be carried on in the ordinary and normal course after the date hereof
  and upon to the Closing Date and no material transactions shall be entered into
  until the Closing Date without the prior written consent of the Vendor. 

 4.16 No liability, cost or expense will be incurred or payable
  by the Purchaser in connection with the disposition of any of its properties.

 4.17 No capital expenditures in excess of $5,000 have
  been made or authorized by the Purchaser since the date of the Purchaser Audited
  Financial Statements and no capital expenditures in excess of $5,000 will
  be made or authorized by the Purchaser after the date hereof and up to the Closing
  Date without the prior written consent of the Vendor. 

 4.18 The Purchaser is not indebted to any of its directors
  or officers nor are any of the Purchaser's directors or officers indebted to
  the Purchaser.  

 4.19 The Purchaser has good and marketable title to its properties
  and assets as set out in the Purchaser Audited Financial Statements and such
  properties and assets are not subject to any mortgages, pledges, liens, charges,
  security interests, encumbrances, actions, claims or demands of any nature whatsoever
  or howsoever arising. 

 4.20 The Corporate Charter, Articles of Incorporation and
  Bylaws and any other constating documents of the Purchaser in effect with the
  appropriate corporate authorities as at the date of this Agreement will not
  have been materially changed as at the Closing Date. 

 4.21 There are no material liabilities of the Purchaser of
  any kind whatsoever, whether or not accrued and whether or not determined or
  determinable, in respect of which the Purchaser or the Company may become liable
  on or after the consummation of the transaction contemplated by this Agreement,
  other than liabilities which may be reflected on the Purchaser Audited Financial
  Statements, liabilities disclosed or referred to in this Agreement or in the
  Schedules attached hereto, or liabilities incurred in the ordinary course of
  business and attributable to the period since the date of the Purchaser Audited
  Financial Statements, none of which has been materially adverse to the nature
  of the Purchaser's business, results of operations, assets, financial condition
  or manner of conducting the Purchaser's business. 

 4.22 The entering into of this Agreement and the consummation
  of the transactions contemplated hereby will not result in the violation of
  any of the terms and provisions of the 

 10

 constating documents or bylaws of the Purchaser or of any
  indenture, instrument or agreement, written or oral, to which the Purchaser
  may be a party. 

 4.23 The entering into of this Agreement and the consummation
  of the transactions contemplated hereby will not, to the best of the knowledge
  of the Purchaser, result in the violation of any law or regulation of the United
  States or the State of Nevada or of any local government bylaw or ordinance
  to which the Purchaser or the Purchaser's business may be subject. 

 4.24 This Agreement has been duly authorized, validly executed
  and delivered by the Purchaser. 

 4.25 The Purchaser has no contracts with any officers, directors,
  accountants, lawyers or others which cannot be terminated with not more than
  one month's notice. 

 4.26 No agreement has been made with Purchaser in respect
  of the purchase and sale contemplated by this Agreement that could give rise
  to any valid claim by any person against the Company or the Vendor for a finder's
  fee, brokerage commission or similar payment. 

5. ACTS IN CONTEMPLATION OF CLOSING 

 5.1 The Company covenants and agrees with the Purchaser and
  the Principal Shareholder to, prior to or on the Closing Date, deliver to the
  Purchaser those audited annual financial statements and unaudited interim financial
  statements of the Company as are required by Item 310 of Regulation SB of the
  United States Securities and Exchange Commission in order to permit the Purchaser
  to make the United States Securities and Exchange Commission filings required
  in respect of the purchase and sale of the shares of the Company in accordance
  with this Agreement.

6. CONDITIONS OF CLOSING 

 6.1 All obligations of the Purchaser under this Agreement
  are subject to the fulfilment, at or prior to the Closing Date, of the following
  conditions: 

	 	 (a)      	 The respective representations and warranties of
        the Vendor and the Company contained in this Agreement or in any Schedule
        hereto or certificate or other document delivered to the Purchaser pursuant
        hereto shall be substantially true and correct as of the date hereof and
        as of the Closing Date with the same force and effect as though such representations
        and warranties had been made on and as of such date, regardless of the
        date as of which the information in this Agreement or any such Schedule
        or certificate is given, and the Purchaser shall have received on the
        Closing Date certificates dated as of the Closing Date, in forms satisfactory
        to counsel for the Purchaser and signed under seal by the Vendor and by
        two senior officers of the Company to the effect that their respective
        representations and warranties referred to above are true and correct
        on and as of the Closing Date with the same force and effect as though
        made on and as of such date, provided that the acceptance of such certificates
        and the 

 11

 

	 	 	 closing of the transactions herein provided for
        shall not be a waiver of the respective representations and warranties
        contained in Articles 3 and 4 or in any Schedule hereto or in any certificate
        or document given pursuant to this Agreement which covenants, representations
        and warranties shall continue in full force and effect for the benefit
        of the Purchaser; 

	 
	 	 (b)      	 the Company shall have caused to be delivered to
        the Purchaser either a certificate of an officer of the Company or, at
        the Purchaser's election, an opinion of legal counsel acceptable to the
        Purchaser's legal counsel, in either case, in form and substance satisfactory
        to the Purchaser, dated as of the Closing Date, to the effect that: 

	 	 	 (i)      	 the Company owns, possesses and has good and marketable
        title to its undertaking, property and assets, and without restricting
        the generality of the foregoing, those assets described in the balance
        sheet included in the Company Financial Statements, free and clear of
        any and all mortgages, liens, pledges, charges, security interests, encumbrances,
        actions, claims or demands of any nature whatsoever and howsoever arising;
      

	 
	 	 	 (ii)      	 the Company has been duly incorporated, organized
        and is validly existing under the laws of Germany, it has the corporate
        power to own or lease its properties and to carry on its business that
        is now being conducted by it and is in good standing with respect to filings
        with the appropriate governmental authorities; 

	 
	 	 	 (iii)      	 the issued and authorized capital of the Company
        is as set out in this Agreement and all of the issued and outstanding
        shares have been validly issued as fully paid and non-assessable; 

	 
	 	 	 (iv)      	 all necessary approvals and all necessary steps
        and corporate proceedings have been obtained or taken to permit the Company
        Shares to be duly and validly transferred to and registered in the name
        of the Purchaser; and 

	 
	 	 	 (v)      	 the consummation of the purchase and sale contemplated
        by this Agreement, including, but not limited to, the transfer of the
        Company Shares to the Purchaser, will not be in breach of any laws of
        Germany , and, in particular but without limiting the generality of the
        foregoing, the execution and delivery of this Agreement by the Vendor
        and the Company has not breached and the consummation of the purchase
        and sale contemplated hereby will not be in breach of any laws of Germany
        or of any other country or state in which a Vendor is resident or the
        Company carries on business; 

	 	 	 	 
	 	 	
and, without limiting the generality of the foregoing, that
        all corporate proceedings of the Company, its shareholders and directors
        and all other matters which, in the reasonable opinion of counsel for
        the Purchaser, are material in connection with the transaction of purchase
        and sale contemplated by this Agreement, have been taken or are otherwise
        favourable to the completion of such transaction.

 12

 

	 	 (c)      	 At the Closing Date there shall have been no materially
        adverse change in the affairs, assets, liabilities, or financial condition
        of the Company or the Business (financial or otherwise) from that shown
        on or reflected in the Company Financial Statements. 

	 
	 	 (d)      	 No substantial damage by fire or other hazard to
        the Business shall have occurred prior to the Closing Date. 

	 
	 	 (e)      	 The Company shall have delivered to the Purchaser
        those financial statements of the Company specified in paragraph 5.1 hereof.
      

 6.2 In the event any of the foregoing conditions contained
  in paragraph 6.1 hereof are not fulfilled or performed at or before the Closing
  Date to the reasonable satisfaction of the Purchaser, the Purchaser may terminate
  this Agreement by written notice to the Vendor and in such event the Purchaser
  shall be released from all further obligations hereunder but any of such conditions
  may be waived in writing in whole or in part by the Purchaser without prejudice
  to its rights of termination in the event of the non-fulfilment of any other
  conditions. 

 6.3 All obligations of the Vendor under this Agreement are
  subject to the fulfilment, at or prior to the Closing Date, of the following
  conditions: 

	 	 (a)      	 The representations and warranties of the Purchaser
        contained in this Agreement or in any Schedule hereto or certificate or
        other document delivered to the Company and the Vendor pursuant hereto
        shall be substantially true and correct as of the date hereof and as of
        the Closing Date with the same force and effect as though such representations
        and warranties had been made on and as of such date, regardless of the
        date as of which the information in this Agreement or any such Schedule
        or certificate is given, and the Vendor shall have received on the Closing
        Date a certificate dated as of the Closing Date, in a form satisfactory
        to the Vendor and signed under seal by two senior officers of the Purchaser,
        to the effect that such representations and warranties referred to above
        are true and correct on and as of the Closing Date with the same force
        and effect as though made on and as of such date, provided that the acceptance
        of such certificate and the closing of the transaction herein provided
        for shall not be a waiver of the representations and warranties contained
        in Article 4 or in any Schedule hereto or in any certificate or document
        given pursuant to this Agreement which covenants, representations and
        warranties shall continue in full force and effect for the benefit of
        the Vendor. 

	 
	 	 (b)      	 The Purchaser shall have caused to be delivered
        to the Vendor either a certificate of an officer of the Purchaser or,
        at the Vendor's election, an opinion of legal counsel acceptable to counsel
        to the Vendor, in either case, in form and substance satisfactory to the
        Vendor, dated as of the Closing Date, to the effect that: 

	 	 	 (i)      	 the Purchaser has been duly incorporated and organized
        and is validly subsisting under the laws of the State of Nevada, it has
        the corporate 

 13

 

	 	 	 	 power to own or lease its properties and to carry
        on its business that is now being conducted by it and is in good standing
        with respect to all filings with the appropriate corporate authorities
        in Nevada and with respect to all annual and quarterly filings with the
        United States Securities and Exchange Commission; 

	 
	 	 	 (ii)      	 the issued and authorized capital of the Purchaser
        is as set out in this Agreement and all issued shares have been validly
        issued as fully paid and non-assessable; 

	 
	 	 	 (iii)      	 all necessary approvals and all necessary steps
        and corporate proceedings have been obtained or taken to permit the Purchaser
        Warrants to be duly and validly issued to the Vendor and the Purchaser
        Shares to be duly and validly allotted and issued to and registered in
        the name of the Vendor; 

	 
	 	 	 (iv)      	 the consummation of the purchase and sale contemplated
        by this Agreement, including, but not limited to, the issuance and delivery
        of the Purchaser Shares to the Vendor, in consideration of the purchase
        of the Company Shares from the Vendor, will not be in breach of any laws
        of Nevada and, in particular, but without limiting the generality of the
        foregoing, the execution and delivery of this Agreement by the Purchaser
        has not breached, and the consummation of the purchase and sale contemplated
        hereby will not be in breach of, any securities laws of the United States
        of America; 

	 	 	 and, without limiting the generality of the foregoing,
        that all corporate proceedings of the Purchaser, its shareholders and
        directors and all other matters which, in the reasonable opinion of counsel
        for the Company, are material in connection with the transaction of purchase
        and sale contemplated by this Agreement, have been taken or are otherwise
        favourable to the completion of such transaction. 

	 
	 	 (c)      	 At the Closing Date there shall have been no materially
        adverse change in the affairs, assets, liabilities, financial condition
        or business (financial or otherwise) of the Purchaser from that shown
        on or reflected in the Purchaser Audited Financial Statements. 

 6.4 In the event that any of the conditions contained in paragraph
  6.3 hereof shall not be fulfilled or performed by the Purchaser at or before
  the Closing Date to the reasonable satisfaction of the Vendor then the Vendor
  shall have all the rights and privileges granted to the Purchaser under paragraph
  6.2, mutatis mutandis. 

7. CLOSING ARRANGEMENTS 

 7.1 The closing shall take place on the Closing Date at the
  offices of O’Neill Law Corporation at Suite 1880, 1055 West Georgia Street,
  Vancouver, British Columbia, Canada V6E 3P3, or at such other time and place
  as the parties may mutually agree. 

 14

 7.2 On the Closing Date, upon fulfilment of all the conditions
  set out in Article 6 which have not been waived in writing by the Purchaser
  or by the Vendor, as the case may be, then: 

	 	(a)	 the Vendor shall deliver to the Purchaser: 

	 	 	 (i)      	 certificates representing all the Company Shares
        duly endorsed in blank for transfer or with a stock power of attorney
        (in either case with the signature guaranteed by the appropriate official)
        with all applicable security transfer taxes paid; 

	 
	 	 	 (ii)      	 the certificates and officer's certificate or opinion
        referred to in paragraph 6.1; and 

	 
	 	 	 (iii)      	 evidence satisfactory to the Purchaser and its legal
        counsel of the completion by the Company and the Vendor of those acts
        referred to in paragraph 5.1. 

	 	 (b)      	 the Vendor and the Company shall cause the Company
        Shares to be transferred into the name of the Purchaser, or its nominee,
        to be duly and regularly recorded in the books and records of the Company;
      

	 
	 	 (c)      	 the Purchaser shall issue and deliver to the Vendor:
      

	 	 	 	 (i)      	 certificates representing the Purchaser Shares and
        the Purchaser Warrants duly endorsed with legends, acceptable to the Purchaser's
        counsel, respecting restrictions on transfer as required by or necessary
        under the applicable securities legislation of the United States or any
        state, including, but not limited to, the non-transferability of such
        shares for a period of one year from the Closing Date; 

	 
	 	 	 	 (ii)      	 the certificates and officer's certificate or opinion referred to in
      paragraph 6.3; and 
	 
	 	 	 	 (iii)      	 sequential resignations and directors resolutions
        such that all of the directors and officers of the Purchaser will have
        resigned and the following will have been appointed directors and/or officers
        of the Purchaser immediately following closing: 

	 	 Name  	 Position  
	 	 Walter P.W. Notter  	 Director, President, Secretary and Treasurer  

	 	(d)	 The Principal Shareholder shall deliver to the Vendor
        the certificates representing all the Principal Shares duly endorsed in
        blank for transfer or with a stock power of attorney (in either case with
        the signature guaranteed by the appropriate official) with all applicable
        security transfer taxes paid. 

15 

8. GENERAL PROVISIONS 

 8.1 Time shall be of the essence of this Agreement. 

 8.2 This Agreement contains the whole agreement between the
  parties hereto in respect of the purchase and sale of the Company Shares and
  there are no warranties, representations, terms, conditions or collateral agreements
  expressed, implied or statutory, other than as expressly set forth in this Agreement.

 8.3 This Agreement shall enure to the benefit of and be binding
  upon the parties hereto and their respective successors and permitted assigns.
  The Purchaser may not assign this Agreement without the consent of the Company
  which consent may be withheld for any reason whatsoever. 

 8.4 Any notice to be given under this Agreement shall be duly
  and properly given if made in writing and delivered or telecopied to the addressee
  at the address as set out on page one of this Agreement. Any notice given as
  aforesaid shall be deemed to have been given or made on, if delivered, the date
  on which it was delivered or, if telecopied, on the next business day after
  it was telecopied. Any party hereto may change its address for notice from time
  to time by providing notice of such change to the other parties hereto in accordance
  with the foregoing. 

 8.5 This Agreement may be executed in one or more counter-parts,
  each of which so executed shall constitute an original and all of which together
  shall constitute one and the same agreement. 

 8.6 This Agreement shall be construed and enforced in accordance
  with, and the rights of the parties shall be governed by, the laws of the State
  of Nevada, and each of the parties hereto irrevocably attorns to the jurisdiction
  of the courts of the State of Nevada. 

 8.7 No claim shall be made by the Company or the Vendor against
  the Purchaser, or by the Purchaser against the Company or the Vendor, as a result
  of any misrepresentation or as a result of the breach of any covenant or warranty
  herein contained unless the aggregate loss or damage to such party exceeds $5,000.

  

-- INTENTIONALLY LEFT BLANK --

 

 16

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. 

CLYVIA TECHNOLOGY GMBH 

 /s/Dieter Wagels

  /s/Manfred Sappok 

_______________________________
 By Its Authorized Signatory 

RAPA MINING INC. 

/s/Brian Cheston 

_______________________________
 By Its Authorized Signatory 

CLYVIA CAPITAL HOLDING GMBH 

 /s/Dieter Wagels 

  /s/Manfred Sappok 

_______________________________
 By Its Authorized Signatory 

SIGNED, SEALED AND DELIVERED BY BRIAN CHESTON in the presence of:

	 /s/ Christian I. Cu  	 /s/Brian Cheston  
	 Signature of Witness  	 BRIAN CHESTON  

 Christian I. Cu   

  Name 

 Suite 1880, Royal Centre

  1055 West Georgia Street, Box 11122

  Vancouver, B.C. V6E 3P3

  Address 

 17

SCHEDULE "A" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

COMPANY FINANCIAL STATEMENTS 

 

 

 

 

 

 

 

SCHEDULE "B" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

PURCHASER AUDITED FINANCIAL STATEMENTS 

 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Balance Sheet 

	 
    	 
    	
      January 31, 2004 	 
    
	  	 	 	 
	  	 	 	 
	 ASSETS  	  	 	  
	  	 	 	 
	 Current Assets  	  	 	  
	        Cash and cash equivalents 
    	 $	 18,883 	  
	
             Deferred tax asset less valuation allowance of
      $9,141  	 
    	
      - 	 
    
	  	 	 	 
	
      Total Assets  	
      $	
      18,883 	 
    
	  	 	 	 
	 LIABILITIES AND STOCKHOLDERS’ EQUITY  	  	 	  
	  	 	 	 
	 Current Liabilities  	  	 	  
	
             Accounts payable and accrued liabilities 
    	
      $	
      5,000 	 
    
	
      Total Current Liabilities  	 
    	
      5,000 	 
    
	  	 	 	 
	 Stockholders’ Equity  	  	 	  
	        Common stock, $0.001 par value;
      75,000,000 shares authorized,  	  	 	  
	               5,800,000
      issued and outstanding  	  	 5,800 	  
	        Additional paid-in capital 
    	  	 34,200 	  
	
             Deficit accumulated during the exploration stage 
    	 
    	
      (26,117 	
      )  
	  	 	 	 
	
      Total Stockholders’ Equity  	 
    	
      13,883 	 
    
	  	 	 	 
	
      Total Liabilities and Stockholders’ Equity  	
      $	
      18,883 	 
    

 The accompanying notes are an integral part of these financial
  statements. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Statement of Operations 

  For the period from inception (December 11, 2003) to January 31, 2004

	 EXPENSES 
    	 
    	
    	 
    
	        Bank charges  	 $	 84 	  
	        Filing fees  	  	 1,004 	  
	        Mineral property expenditures 
    	  	 19,748 	  
	        Office expenses  	  	 34 	  
	
             Professional fees  	 
    	
      5,247 	 
    
	  	 	 	 
	 Loss before income taxes  	  	 26,117 	  
	  	 	 	 
	
      Provision for income taxes  	 
    	
      - 	 
    
	  	 	 	 
	
      Net loss  	
      $	
      (26,117 	
      )  
	  	 	 	 
	
      Basic and diluted net loss per share  	
      $	
      (0.01 	
      )  
	  	 	 	 
	 Weighted average number of shares  	  	 	  
	
             of common stock outstanding  	 
    	
      2,847,059 	 
    

 The accompanying notes are an integral part of these financial
  statements. 

  Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Statement of Stockholders’ Equity 

	  	
      Common Stock  	 	  	  		 	 	  	 	 	  
	  	  	 	  	  	 	  	  		 	 Deficit 	  	 	 	  
	  	  	 	  	  	 	  	  		 	 Accumulated 	  	 	 Total 	  
	  	  	 	  	  	 	  	 Additional  		 	 During 	  	 	 Stockholders’ 	  
	 
    	
      Shares  	 	 
    	
      Amount  	 	 
    	
      Paid-in Capital  	 	 	Exploration
      Stage	 
    	
    	
      Equity 	 
    
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Balance, December 11, 2003 (date of inception) 
    	 –  	 	 $	 –	 	 $	 –  		$	 – 	  	$	 – 	  
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Common stock issued for cash at $0.001 per  	  	 	  	  	 	  	  		 	 	  	 	 	  
	 share, December 2003  	 2,000,000  	 	  	 2,000  	 	  	 –  		 	 – 	  	 	 2,000 	  
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Common stock issued for mineral property at  	  	 	  	  	 	  	  		 	 	  	 	 	  
	 $0.01 per share, January 2004  	 200,000  	 	  	 200  	 	  	 1,800  		 	 – 	  	 	 2,000 	  
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Common stock issued for cash at $0.01 per  	  	 	  	  	 	  	  		 	 	  	 	 	  
	 share, January 2004  	 3,600,000  	 	  	 3,600  	 	  	 32,400  		 	 – 	  	 	 36,000 	  
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      Net loss  	
      –  	 	 
    	
      –  	 	 
    	
      –  		
    	
      (26,117 	
      )  	
    	
      (26,117 	
      )  
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      Balance, January 31, 2004  	
      5,800,000  	 	
      $	
      5,800  	 	
      $	
      34,200  	 	
      $	
      (26,117 	
      )  	
      $	
      13,883 	 
    

 The accompanying notes are an integral part of these financial
  statements. 

  Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Statement of Cash Flows

   For the period from inception (December 11, 2003) to January 31, 2004

	 Cash
      flows from operating activities  	 
    	
    	 
    
	        Net loss  	 $	 (26,117 	 )  
	        Adjustments to reconcile net loss
      to cash used by operating activities  	  	 	  
	               Stock
      issued for mineral property acquisition  	  	 2,000 	  
	        Change in liabilities:  	  	 	  
	
                    Increase in accounts
      payable and accrued liabilities  	 
    	
      5,000 	 
    
	 	 	 	 
	
      Net cash used in operating activities  	 
    	
      (19,117 	
      )  
	 	 		 
	 Cash flows from financing activities  	  	 	  
	
             Proceeds from issuing common stock  	 
    	
      38,000 	 
    
	 	 	 	 
	
      Net cash provided by financing activities  	 
    	
      38,000 	 
    
	  	 	 	 
	 Change in cash and cash equivalents for the period 
    	  	 18,883 	  
	 	 	 	 
	
      Cash and cash equivalents, beginning of period  	 
    	
      – 	 
    
	 	 	 	 
	
      Cash and cash equivalents, end of period  	
      $	
      18,883 	 
    
	  	 	 	 
	
      Cash paid during the period for interest  	
      $	
      – 	 
    
	 	 	 	 
	
      Cash paid during the period for income taxes  	
      $	
      – 	 
    

 The accompanying notes are an integral part of these financial
  statements. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Financial Statements

  January 31, 2004 

 1.     HISTORY AND ORGANIZATION OF
  THE COMPANY 

 The Company was incorporated on December 11, 2003, under the
  Laws of the State of Nevada and is in the business of exploring mineral properties.
  The Company has not yet determined whether its properties contain mineral resources
  that may be economically recoverable. The Company therefore has not reached
  the development stage and is considered to be an exploration stage company.

 The recoverability of mineral property costs is dependent
  upon the existence of economically recoverable reserves, confirmation of the
  Company's interest in the underlying mineral claims, the ability of the Company
  to obtain necessary financing to complete the exploration and upon future profitable
  production. 

 The Company’s fiscal year end is January 31st. 

 2.     GOING CONCERN 

 These financial statements have been prepared in conformity
  with generally accepted accounting principles in the United States of America
  with the on-going assumption that the Company will be able to realize its assets
  and discharge its liabilities in the normal course of business. However, certain
  conditions noted below currently exist which raise substantial doubt about the
  Company’s ability to continue as a going concern. These financial statements
  do not include any adjustments to the amounts and classifications of assets
  and liabilities that might be necessary should the Company be unable to continue
  as a going concern. 

 The operations of the Company have primarily been funded by
  the issuance of common stock. Continued operations of the Company are dependent
  on the Company’s ability to complete equity financings or generate profitable
  operations in the future. Management’s plan in this regard is to secure
  additional funds through future equity financings. Such financings may not be
  available or may not be available on reasonable terms. 

	 	 	 
	 Deficit accumulated during the exploration stage  	 $ (26,117 	 )  
	 Working capital  	 13,883 	 
	 	 	 

 3.     SIGNIFICANT ACCOUNTING POLICIES 

 The financial statements of the Company have been prepared
  in accordance with generally accepted accounting principles in the United States
  of America and are stated in US dollars. The significant accounting policies
  adopted by the Company are as follows: 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Financial Statements

  January 31, 2004 

 3.     SIGNIFICANT ACCOUNTING POLICIES
  (continued)

Use of estimates 

 The preparation of financial statements in conformity with
  generally accepted accounting principles in the United States of America requires
  management to make estimates and assumptions that affect the reported amount
  of assets and liabilities and the disclosure of contingent assets and liabilities
  at the date of the financial statements and the reported amount of revenues
  and expenses during the reporting period. Actual results could differ from these
  estimates. 

 Foreign currency translation 

 Transaction amounts denominated in foreign currencies are
  translated into United States currency at exchanges rates prevailing at transactions
  dates. Carrying values of monetary assets and liabilities are adjusted at each
  balance sheet date to reflect the exchange rate at that date. Gains and losses
  from restatement of foreign currency monetary assets and liabilities are included
  in income. 

 Cash and cash equivalents 

 The Company considers cash held at banks and all highly liquid
  investments with original maturities of three months or less to be cash and
  cash equivalents. 

 Mineral properties 

 Costs of acquisition, exploration, carrying, and retaining
  unproven properties are expensed as incurred.

 Environmental requirements 

 At the report date, environmental requirements related to
  mineral claims acquired are unknown and therefore an estimate of any future
  cost cannot be made. 

 Income taxes 

 A deferred tax asset or liability is recorded for all temporary
  differences between financial and tax reporting and net operating loss carryforwards.
  Deferred tax expenses (benefit) result from the net change during the period
  of deferred tax assets and liabilities. 

 Deferred tax assets are reduced by a valuation allowance when,
  in the opinion of management, it is more likely than not that some portion or
  all of the deferred tax assets will not be realized. Deferred tax assets and
  liabilities are adjusted for the effects of changes in tax laws and rates on
  the date of enactment. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Financial Statements

  January 31, 2004 

 3.     SIGNIFICANT ACCOUNTING POLICIES
  (continued)

Net loss per share 

 Basic net loss per share is computed by dividing loss attributable
  to common stockholders by the weighted average number of shares of common stock
  outstanding during the period. Diluted earnings per share takes into consideration
  shares of common stock outstanding (computed under basic earnings per share)
  and potentially dilutive shares of common stock. 

 Recent Accounting Pronouncements 

 In April 2003, FASB issued Statements of Financial Accounting
  Standards No. 149 “Amendment of Statement 133 on Derivative Instruments
  and Hedging Activities” (“SFAS 149”). SFAS 149 amends and
  clarifies financial accounting and reporting for derivative instruments, including
  certain derivative instruments embedded in other contracts and for hedging activities
  under FASB Statement No. 133 “Accounting for Derivative Instruments and
  Hedging Activities”. SFAS 149 is generally effective for contracts entered
  into or modified after June 30, 2003. 

 In May 2003, FASB issued Statements of Financial Accounting
  Standards No. 150 “Accounting for Certain Financial Instruments with Characteristics
  of both Liabilities and Equity” (“SFAS 150”). SFAS 150 establishes
  standards for how an issuer classifies and measures certain financial instruments
  with characteristics of both liabilities and equity. SFAS 150 is effective for
  financial instruments entered into or modified after May 31, 2003. 

 The adoption of these new pronouncements is not expected to
  have a material effect on the Company's financial position or results of operations.

 4.     MINERAL PROPERTY 

 Pursuant to an option agreement dated January 5, 2004, the
  Company has the right to acquire a 100% interest in certain mining claims located
  in the Kamloops Mining Division of British Columbia, Canada for $10,000
  (paid), the issuance of 200,000 shares of the Company’s common stock (issued)
  and incurring exploration and expenditures of $100,000 in various stages
  by October 2005. As the claims do not contain any known reserves, the acquisition
  costs were expensed during the period ended January 31, 2004. The mineral property
  claims expire February 19, 2005. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Financial Statements

  January 31, 2004 

 5.     COMMON STOCK 

 On December 18, 2003, the Company issued 2,000,000 shares
  of common stock at a price of $0.001 per share under Regulation S of the
  Securities Act of 1933 for total proceeds of $2,000.

 On January 5, 2004, the Company issued 200,000 shares of common
  stock at a price of $0.01 per share under Regulation S of the Securities
  Act of 1933 in conjunction with the signing of an option agreement for certain
  mining claims. 

 On January 16, 2004, the Company issued 3,600,000 shares of
  common stock at a price of $0.01 per share under Regulation S of the Securities
  Act of 1933 for total proceeds of $36,000. 

 6.     RELATED PARTY TRANSACTIONS 

 During the period from inception (December 11, 2003) to January
  31, 2004, the Company issued 2,000,000 shares of its common stock for proceeds
  of $2,000 to an officer and director of the Company.

 7.     INCOME TAXES 

 A reconciliation of income taxes at statutory rates with the
  reported taxes is as follows: 

	 	 	 	 	 
	  	 
    	
      January 31, 2004 	 
    	 
	 Net loss  	 $	 (26,117 	 )  	 
	 Expected income tax recovery  	
      $	
      9,141 	 
    	 
	 Unrecognized current benefit of operating
      losses  	  	 (9,141 	 )  	 
	
      Total income taxes  	
      $	
      - 	 
    	 
	 The Company’s total future income
      tax asset is as follows:  	  	 	  	 
	  	 
    	
      January 31, 2004 	 
    	 
	 Tax benefit of net operating loss carryforward 
    	 $	 9,141 	  	 
	 Valuation allowance  	 
    	
      (9,141 	
      )  	 
	 
    	
      $	
      - 	 
    	 

 The Company has net operating loss carryforwards of approximately
  $26,000 available for deduction against future years taxable income. The
  valuation allowance increased to $9,141 during the period ended January
  31, 2004, since the realization of the net operating loss carryforwards are
  doubtful. It is reasonably possible that the Company's estimate of the valuation
  allowance will change. The operating loss carryforwards will expire in 2024.

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Financial Statements

  January 31, 2004 

 8.     FINANCIAL INSTRUMENTS 

 The Company's financial instruments consist of cash and cash
  equivalents and accounts payable and accrued liabilities. Unless otherwise noted,
  it is management's opinion that the Company is not exposed to significant interest,
  currency or credit risks arising from these financial instruments. The fair
  value of these financial instruments approximate their carrying values, unless
  otherwise noted. 

 9.     SEGMENT INFORMATION 

 The Company operates in one reportable segment, being the
  exploration of mineral properties, in Canada. 

SCHEDULE "C" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

PURCHASER UNAUDITED FINANCIAL STATEMENTS 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Balance Sheet

  (Unaudited) 

	  	  	 October 31, 	  
	 
    	 
    	
      2004 	 
    
	  	 	 	 
	 ASSETS  	  	 	  
	  	 	 	 
	 Current Assets  	  	 	  
	          Cash and cash equivalents 
    	 $	 57,386 	  
	
               Deferred tax asset, less valuation
      allowance of $24,028  	 
    	
      - 	 
    
	  	 	 	 
	
      Total Assets  	
      $	
      57,386 	 
    
	  	 	 	 
	 LIABILITIES AND STOCKHOLDERS’ EQUITY  	  	 	  
	  	 	 	 
	 Current Liabilities  	  	 	  
	
               Accounts payable and accrued liabilities 
    	
      $	
      23,038 	 
    
	
      Total Current Liabilities  	 
    	
      23,038 	 
    
	  	 	 	 
	 Contingency (Notes 2 and 4)  	  	 	  
	  	 	 	 
	 Stockholders’ Equity  	  	 	  
	          Common stock, $0.001
      par value; 75,000,000 shares authorized,  	  	 	  
	              
           6,115,000 shares issued and outstanding  	  	 6,115 	  
	          Additional paid-in
      capital  	  	 96,885 	  
	
               Deficit accumulated during the exploration
      stage  	 
    	
      (68,652 	
      )  
	  	 	 	 
	
      Total Stockholders’ Equity  	 
    	
      34,348 	 
    
	  	 	 	 
	
      Total Liabilities and Stockholders’ Equity  	
      $	
      57,386 	 
    

 The accompanying notes are an integral part of these interim
  financial statements. 

 Rapa Mining Inc. 

  (An Exploration Stage Company)

  Statements of Operations

  (Unaudited)  

	  	  	 Cumulative 	  	  	 	  	  	 	  
	  	  	 amounts from 	  	  	 	  	  	 	  
	  	  	 inception 	  	  	 	  	  	 	  
	  	  	 (December 11, 	  	  	Three-month 	  	  	Nine-month 	  
	  	  	 2003) to	  	  	period ended	  	  	period ended	  
	 
    	 
    	
      October 31, 2004 	 	 	October
      31, 2004	 	 	October
      31, 2004	 
    
	  	 	 	 	 	 	 	 	 	 
	 EXPENSES  	  	 	  	  	 	  	  	 	  
	          Bank charges 
    	 $	 484 	  	 $	 124 	  	 $	 400 	  
	          Filing
      fees  	  	 5,400 	  	  	 1,668 	  	  	 4,396 	  
	          Mineral property expenditures 
    	  	 27,513 	  	  	 7,765 	  	  	 7,765 	  
	          Office
      expenses  	  	 655 	  	  	 213 	  	  	 621 	  
	          Professional fees 
    	  	 33,600 	  	  	 14,653 	  	  	 28,353 	  
	
               Transfer agent  	 
    	
      1,000 	 
    	 
    	
      500 	 
    	 
    	
      1,000 	 
    
	  	 	 	 	 	 	 	 	 	 
	 Loss before income taxes  	  	 68,652 	  	  	 24,923 	  	  	 42,535 	  
	  	 	 	 	 	 	 	 	 	 
	
      Provision for income taxes  	 
    	
      - 	 
    	 
    	
      - 	 
    	 
    	
      - 	 
    
	  	 	 	 	 	 	 	 	 	 
	
      Net loss  	
      $	
      (68,652 	
      )  	$	
      (24,923 	
      )  	$	
      (42,535 	
      )  
	  	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 
	
      Basic and diluted net loss per share  	 
    	
    	 
    	
      $	
      - 	 
    	
      $	
      (0.01 	
      )  
	  	 	 	 	 	 	 	 	 	 
	 Weighted average number of shares of  	  	 	  	  	 	  	  	 	  
	
               common stock outstanding 
    	 
    	
    	 
    	 
    	
      5,916,413 	 
    	 
    	
      5,839,088 	 
    

 The accompanying notes are an integral part of these interim
  financial statements. 

 Rapa Mining Inc. 

  (An Exploration Stage Company)

  Statements of Cash Flows

  (Unaudited) 

	  	  	 Cumulative 	  	  	 	  
	  	  	 amounts from 	  	  	 	  
	  	  	 inception 	  	  	 	  
	  	  	 (December 11, 	 	  	 Nine-month 	  
	  	  	 2003) to	 	  	 period ended 	  
	 
    	 
    	
      October 31, 2004 	 	 
    	
      October 31, 2004 	 
    
	 Cash flows from operating activities  	  	 	  	  	 	  
	          Net loss  	 $	 (68,652 	 )  	 $	 (42,535 	 )  
	          Adjustments to reconcile
      net loss to cash used by operating activities  	  	 	  	  	 	  
	              
          Stock issued for mineral property acquisition  	  	 2,000 	  	  	 - 	  
	          Change in liabilities: 
    	  	 	  	  	 	  
	
                      
       Increase in accounts payable and accrued liabilities  	 
    	
      23,038 	 
    	 
    	
      18,038 	 
    
	 	 	 	 	 	 	 
	
      Net cash used in operating activities  	 
    	
      (43,614 	
      )  	 
    	
      (24,497 	
      )  
	  	 	 	 	 	 	 
	 Cash flows from financing activities  	  	 	  	  	 	  
	
               Proceeds from sale and issuing common
      stock  	 
    	
      101,000 	 
    	 
    	
      63,000 	 
    
	 	 	 	 	 	 	 
	
      Net cash provided by financing activities  	 
    	
      101,000 	 
    	 
    	
      63,000 	 
    
	  	 	 	 	 	 	 
	 Change in cash and cash equivalents for the period 
    	  	 57,386 	  	  	 38,503 	  
	 	 	 	 	 	 	 
	
      Cash and cash equivalents, beginning of period  	 
    	
      – 	 
    	 
    	
      18,883 	 
    
	 	 	 	 	 	 	 
	
      Cash and cash equivalents, end of period  	
      $	
      57,386 	 
    	$	
      57,386 	 
    
	  	 	 	 	 	 	 
	
      Cash paid during the period for interest  	
      $	
      – 	 
    	
      $	
      – 	 
    
	  	 	 	 	 	 	 
	
      Cash paid during the period for income taxes  	
      $	
      – 	 
    	
      $	
      – 	 
    

 The accompanying notes are an integral part of these interim
  financial statements. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Interim Financial Statements 

  October 31, 2004

  (Unaudited) 

 1.      HISTORY AND ORGANIZATION OF
  THE COMPANY 

 The Company was incorporated on December 11, 2003, under the
  Laws of the State of Nevada and is in the business of exploring mineral properties.
  The Company has not yet determined whether its properties contain mineral resources
  that may be economically recoverable. The Company therefore has not reached
  the development stage and is considered to be an exploration stage company.

 The recoverability of mineral property costs is dependent
  upon the existence of economically recoverable reserves, confirmation of the
  Company’s interest in the underlying mineral claims, the ability of the
  Company to obtain necessary financing to complete the exploration and upon future
  profitable production. 

 The accompanying unaudited financial statements have been
  prepared by the Company in conformity with generally accepted accounting principles
  in the United States of America for interim financial statements. In the opinion
  of management, the accompanying unaudited financial statements contain all adjustments
  necessary (consisting of normal recurring accruals) to present fairly the financial
  information contained therein. The accompanying unaudited financial statements
  do not include all disclosures required by generally accepted accounting principles
  in the United States of America and should be read in conjunction with the audited
  financial statements of the Company for the period ended January 31, 2004. The
  results of operations for the nine-month period ended October 31, 2004, are
  not necessarily indicative of the results to be expected for the year ending
  January 31, 2005. 

 2.     GOING CONCERN 

 These financial statements have been prepared with the on-going
  assumption that the Company will be able to realize its assets and discharge
  its liabilities in the normal course of business. However, certain conditions
  noted below currently exist which raise substantial doubt about the Company’s
  ability to continue as a going concern. These financial statements do not include
  any adjustments to the amounts and classifications of assets and liabilities
  that might be necessary should the Company be unable to continue as a going
  concern. 

 The operations of the Company have primarily been funded by
  the sale of common stock. Continued operations of the Company are dependent
  on the Company’s ability to complete additional equity financings or generate
  profitable operations in the future. Management’s plan in this regard
  is to secure additional funds through future equity financings. Such financings
  may not be available or may not be available on reasonable terms. 

	  	
    	
      October 31, 	 
    	 
	 
    	
    	
      2004 	 
    	 
	  	 	 	 	 
	 Deficit accumulated during the exploration
      stage  	 $	 (68,652 	 )  	 
	 Working capital  	 	 34,348 	  	 
	 		 	 	 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Interim Financial Statements 

  October 31, 2004

  (Unaudited) 

 3.     SIGNIFICANT ACCOUNTING POLICIES
  

 Use of estimates 

 The preparation of financial statements requires management
  to make estimates and assumptions that affect the reported amount of assets
  and liabilities and the disclosure of contingent assets and liabilities at the
  date of the financial statements and the reported amount of revenues and expenses
  during the reporting period. Actual results could differ from these estimates.

 Foreign currency translation 

 Transaction amounts denominated in foreign currencies are
  translated into United States currency at exchanges rates prevailing at transactions
  dates. Carrying values of monetary assets and liabilities are adjusted at each
  balance sheet date to reflect the exchange rate at that date. Gains and losses
  from restatement of foreign currency monetary assets and liabilities are included
  in income. 

 Cash and cash equivalents 

 The Company considers cash held at banks and all highly liquid
  investments with original maturities of three months or less to be cash and
  cash equivalents. 

 Mineral properties 

 Costs of acquisition, exploration, carrying, and retaining
  unproven properties are expensed as incurred.

 Environmental requirements 

 At the report date, environmental requirements related to
  mineral claims acquired are unknown and therefore an estimate of any future
  cost cannot be made. 

 Income taxes 

 A deferred tax asset or liability is recorded for all temporary
  differences between financial and tax reporting and net operating loss carryforwards.
  Deferred tax expenses (benefit) result from the net change during the period
  of deferred tax assets and liabilities. 

 Deferred tax assets are reduced by a valuation allowance when,
  in the opinion of management, it is more likely than not that some portion or
  all of the deferred tax assets will not be realized. Deferred tax assets and
  liabilities are adjusted for the effects of changes in tax laws and rates on
  the date of enactment. 

 Net loss per share 

 Basic net loss per share is computed by dividing the net loss
  by the weighted average number of shares of common stock outstanding during
  the period. Diluted earnings per share takes into consideration shares of common
  stock outstanding (computed under basic earnings per share) and potentially
  dilutive shares of common stock. As of October 31, 2004 there were no potentially
  dilutive securities outstanding. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Interim Financial Statements 

  October 31, 2004

  (Unaudited) 

 3.     SIGNIFICANT ACCOUNTING POLICIES
  (continued)

 Recent Accounting Pronouncements 

 In January 2003, FASB issued Financial Interpretation No.
  46 “Consolidation of Variable Interest Entities” (“FIN 46”)
  (revised on December 17, 2003). The objective of FIN 46 is to improve financial
  reporting by companies involved with variable interest entities. A variable
  interest entity is a corporation, partnership, trust, or any other legal structure
  used for business purposes that either (a) does not have equity investors with
  voting rights or (b) has equity investors that do not provide sufficient financial
  resources for the entity to support its activities. FIN 46 requires a variable
  interest entity to be consolidated by a company if that company is subject to
  a majority of the risk of loss from the variable interest entity’s activities
  or entitled to receive a majority of the entity’s residual returns or
  both. FIN 46 also requires disclosures about variable interest entities that
  the company is not required to consolidate but in which it has significant variable
  interest. The consolidation requirements of FIN 46 are required in financial
  statements of public entities that have interests in variable interest entities
  for periods ending after December 15, 2003. The consolidation requirements for
  all other types of entities are required in financial statements for periods
  ending March 15, 2004. 

 The adoption of the new pronouncement did not have a material
  effect on the Company’s financial position or results of operations. 

 4.     MINERAL PROPERTY 

 Pursuant to an option agreement dated January 5, 2004, the
  Company has the right to acquire a 100% interest in certain mining claims located
  in the Kamloops Mining Division of British Columbia, Canada for $10,000
  (paid), the issuance of 200,000 shares of the Company’s common stock (issued)
  and incurring exploration and expenditures of $100,000 in various stages
  by October 2005. As the claims do not contain any known reserves, the acquisition
  costs were expensed during the period ended January 31, 2004. The mineral property
  claims expire February 19, 2005. 

 5.     COMMON STOCK 

 On December 18, 2003, the Company issued 2,000,000 shares
  of common stock at a price of $0.001 per share under Regulation S of the
  Securities Act of 1933 for total proceeds of $2,000.

 On January 5, 2004, the Company issued 200,000 shares of common
  stock at a price of $0.01 per share under Regulation S of the Securities
  Act of 1933 in conjunction with the signing of an option agreement for certain
  mining claims. 

 On January 16, 2004, the Company issued 3,600,000 shares of
  common stock at a price of $0.01 per share under Regulation S of the Securities
  Act of 1933 for total proceeds of $36,000.

 On September 27, 2004, the Company issued 315,000 shares of
  common stock at a price of $0.20 per share for total proceeds of $63,000.

 6.     RELATED PARTY TRANSACTIONS 

 During the period from inception (December 11, 2003) to July
  31, 2004, the Company issued 2,000,000 shares of its common stock, for proceeds
  of $2,000, to an officer and director of the Company.

 At October 31, 2004, included in accounts payable is $40
  owed to an officer and director of the Company. 

 Rapa Mining Inc. 

  (An Exploration Stage Company) 

  Notes to Interim Financial Statements 

  October 31, 2004

  (Unaudited) 

 7.     FINANCIAL INSTRUMENTS 

 The Company’s financial instruments consist of cash
  and cash equivalents and accounts payable and accrued liabilities. Unless otherwise
  noted, it is management's opinion that the Company is not exposed to significant
  interest, currency or credit risks arising from these financial instruments.
  The fair value of these financial instruments approximate their carrying values,
  unless otherwise noted. 

 8.     SEGMENT INFORMATION 

 The Company operates in one reportable segment, being the
  exploration of mineral properties, in Canada. 

SCHEDULE "D” 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

EMPLOYMENT, SERVICE & PENSION AGREEMENTS OF THE COMPANY 

None. 

SCHEDULE "E" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

REAL PROPERTY & LEASES OF THE COMPANY 

None.

SCHEDULE "F" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

ENCUMBRANCES ON THE COMPANY'S ASSETS 

None. 

SCHEDULE "G" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

COMPANY LITIGATION 

None. 

SCHEDULE "H" 

     to that Share Purchase Agreement dated for reference as of the 7th day of April, 2005 

PURCHASER LITIGATION 

   None.

SCHEDULE "I" 

      to that Share Purchase Agreement
  dated for reference as of the 7th day of April, 2005 

 

 REGISTERED TRADEMARKS, TRADE NAMES & PATENTS OF THE
  COMPANY 

 

	 Identification No.  	 Description  
	 DE 19837277  	 Plant for distilling and cracking bitumens, asphalt, tars 
      and tar sludges comprises double screw conveyor in  heating chamber
      connected to distillation column  recovering valuable hydrocarbons. 
    
	 DE 19837276  	 Apparatus for distilling and cracking used oil comprises distillation
      and cracking chambers either built-in horizontally or in a slanting plane. 
    
	 DE 19708384  	 Distillation plant for waste oil and oil mixed with other waste
      or scrap materials.

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