Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Rockwell Ventures Inc. - Exhibit 4.1

SALE OF BUSINESS AGREEMENT

between

FOLMINK DELWERY CC

REGISTRATION NO. CK 1990/021880/23

and

H C VAN WYK DIAMONDS LIMITED

REGISTRATION NO. 2001/006812/06

	TABLE OF
      CONTENTS 

	1. 	PARTIES 	1 
	2. 	INTERPRETATION 	1 
	3. 	INTRODUCTION 	8

	4. 	SALE AND
      PURCHASE 	9 
	5. 	CONSIDERATION AND PAYMENT 	9

	6. 	SALE
      LIABILITIES 	11 
	7. 	ALLOCATION OF THE CONSIDERATION 	11
  
	8. 	VALIDATION 	12 
	9. 	CLOSING 	13
  
	10. 	CONTRACTUAL OBLIGATIONS
      OF THE SELLER IN RESPECT OF THE BUSINESS 	 14
    
	11.
	OWNERSHIP, POSSESSION, RISK AND BENEFIT 	16
  
	13. 	INSURANCE 	16 
	14.
	EMPLOYEES 	16
  
	15. 	VALUE-ADDED
      TAX 	20 
	16.
	WARRANTIES AND UNDERTAKINGS BY THE SELLER 	21
  
	17. 	CONFIDENTIALITY 	22 
	18.
	INSOLVENCY ACT PUBLICATION 	24
  
	19. 	RESOLUTION 	25 
	20.
	BREACH 	25
  
	21. 	DOMICILIUM 	25 
	22.
	COSTS 	27
  
	23. 	ARBITRATION 	27 
	24.
	SEVERABILITY 	30
  
	25. 	APPLICABLE
      LAW AND JURISDICTION 	30 
	26.
	COUNTERPARTS 	31
  

	27. 	GENERAL 	31 

Page 2

---oOo---

	SCHEDULE A 	- 	WARRANTIES 
	SCHEDULE A1 	- 	DISCLOSURE SCHEDULE 
	SCHEDULE B 	- 	FIXED ASSETS 
	SCHEDULE C 	- 	SALE LIABILITIES 
	SCHEDULE D 	- 	TRANSFERRING EMPLOYEES
    

SALE OF BUSINESS AGREEMENT

	1. 	
      PARTIES

	 	 
	1.1 	
      FOLMINK DELWERY BK

	 	 
	1.2 	
      H C VAN WYK DIAMONDS LIMITED

	 	 
	2. 	
      INTERPRETATION

	 	 
	2.1 	
      The headnotes to the clauses of this Agreement are
      inserted for reference purposes only and shall in no way govern or affect
      the interpretation hereof.

	 	 
	2.2 	
      Unless inconsistent with the context, the expressions set
      forth below shall bear the following meanings:

		“Accounts Receivable” 	
      all and any amounts owed to the Seller by Debtors of the
      Business as at the Accounting Date including, without limitation,
      prepayments and deposits but excluding any provisions relating thereto
    

	 	  	
       

		“Act” 	
      the Close Corporations Act, 1984, as amended 

	 	  	
       

		“Agreement” 	
      this agreement read with all the schedules hereto
  

Page 2

		“Business” 	
      the diamond prospecting and mining business conducted by
      the Seller on the farm Makoenskloof, as a going concern, comprising the
      Sale Assets and the Sale Liabilities 

	 	  	
       

		“Business Day” 	
      any day other than a Saturday or a Sunday or a day which
      from time to time is a proclaimed public holiday in South Africa

	 	  	
       

	 	“Closing Date” 	
      The 1st June 2007 

	 	  	
       

		“Consideration” 	
      the purchase consideration payable by the Purchaser to
      the Seller for the Business in terms of 5 

	 	  	
       

		“Contracts” 	
      all written and oral contracts with customers and
      suppliers of the Business and all orders placed in connection with the
      Business with suppliers and all other agreements entered into in
      connection with the Business. 

	 	  	
       

	 	“DME” 	
      the Department of Minerals and Energy 

	 	  	
       

		“Effective Date” 	
      The day following the date of signature by the purchaser
      of this agreement 

Page 3

		“EMP” 	
      the Environmental Management Plan in respect of the
      Property 

	 	  	
       

		“Environmental Legislation” 	
      all laws (constitutional, statutory or common) (including
      but not limited to the National Water Act, 1998; the National
      Environmental Management Act, 1998; the Environment Conservation Act,
      1989; the Atmospheric Pollution Prevention Act, 1965 (to be replaced with
      the Air Quality Management Act, 2005); the Water Services Act, 1998; the
      Hazardous Substances Act, 1973; the National Heritage Resources Act, 1999;
      the World Heritage Convention Act, 1999; the Minerals Act, 1991; all
      statutory instruments, provincial ordinances and statutes, municipal
      government by-laws relating to the Environment, government notices,
      circulars, codes of practice, guidelines, decisions, regulations, orders,
      demands, and criteria, injunctions or judgements of any court,
      administrative or regulatory authorities, central government, provincial
      government, municipal or any other body with responsibility for the
      protection of the 

Page 4

		 	
      Environment (including but not limited to the health and
      safety of the public, employees, plants and animals) 

	 	  	
       
	
       

	 	“Excluded Assets” 	
      collectively, 

	 	  	
       
	
       

	 	  	
      o 
	
      Accounts Receivable; and 

	 	  	
       
	
       

	 	  	
      o 
	
      cash-on-hand and at the bank, 

	 	  	
       
	
       

	 	  	
      o 
	
      recovered diamonds 

	 	  	
       
	
       

	 	  	
      as at the date immediately preceding the 

	 	 	 
	 	 	Effective date 
	 	  	
       
	
       

		“Excluded Liabilities” 	
      all liabilities of the Business as at the Closing Date
      other than the Sale Liabilities 

	 	  	
       
	
       

		“Fixed Asset Register” 	
      the fixed asset register kept by the Seller in connection
      with the Business 

	 	  	
       
	
       

		“Fixed Assets” 	
      the fixed assets owned by the Seller and used exclusively
      in connection with the Business as at the Closing Date, including without
      limiting the generality of the foregoing, the Property, the plant,
      machinery and equipment, computer and office equipment, furniture and
      fittings and motor 

Page 5

	 	  	
      vehicles, all as reflected in Schedule B hereto

	 	  	
       

	 	“Income Tax Act” 	
      the Income Tax Act, 58 of 1962, as amended 

	 	  	
       

		“Inventory” 	
      the stock-in-trade of the Business as at the Closing
      Date, including stocks of raw and packaging materials, stock-in-transit,
      work-in- progress, machinery spares and other spares, stores and
      consumables 

	 	  	
       

	 	“JSE” 	
      the JSE Limited 

	 	  	
       

		“LRA” 	
      the Labour Relations Act, No. 66 of 1995 (as amended)
    

	 	  	
       

	 	“Minister” 	
      the Minister of the DME 

	 	  	
       

	 	“Month” 	
      a calendar month 

	 	  	
       

		“MPRD Act” 	
      the Mineral and Petroleum Resources Development Act, No.
      28 of 2002 

	 	  	
       

		“Parties” 	
      the Purchaser and the Seller, collectively, and “Party”
      shall refer to either of them, as the context requires 

	 	  	
       

		“Purchaser” 	
      H C van Wyk Diamonds Limited, registration number
      2001/006812/06 

Page 6

		“RV” 	
      Rockwell Ventures or any subsidiary company listed on the
      JSE 

	 	 	
       

	 	“Sale Assets” 	
      the assets of the Seller which constitute the 

	 	 	
       

	 	  	
      Business as at the Closing Date, comprising: 

	 	  	
      o 
	
      the Fixed Assets 

	 	  	
      o 
	
      the Inventory; 

	 	  	
      o 
	
      the Contracts; but 

	 	 	 	 
	 	  	
      specifically excluding the Excluded Assets 

	 	 	 
		“Sale Liabilities” 	
      such outstanding payments to creditors of the Business in
      respect of any of the Sale Assets at the Closing Date. 

	 	 	 
		“Seller” 	
      FOLMINK DELWERY BK, registration number CK 1990/021880/23
      

	 	 	 
	 	“Signature Date” 	
      the date of last signature of this Agreement 

	 	 	 
		“Transaction” 	
      the acquisition by the Purchaser of the Business from the
      Seller as contemplated in this Agreement 

	 	 	 
	 	“Transferring Employees” 	
      the persons employed by the Seller in

Page 7

		 	
      connection with the Business as at the Closing Date,
      details of whom, as at the Signature Date, are set out in Schedule
      D hereto 

	 	  	
       

		“VAT” 	
      value-added tax payable in terms of the VAT Act

	 	  	
       

		“VAT Act” 	
      the Value-Added Tax Act, No. 89 of 1991, as amended
    

	 	  	
       

		“Warranties” 	
      the warranties in connection with the Business given to
      the Purchaser by the Seller as set out in Schedule A hereto.
  

	2.3 	
      If any provision in a definition is a substantive
      provision conferring rights or imposing obligations on any Party,
      notwithstanding that it is only in the definition clause, effect shall be
      given to it as if it were a substantive provision of this
  Agreement.

	 	
       

	2.4 	
      Any reference to an enactment is to that enactment as at
      the Signature Date.

	 	
       

	2.5 	
      Unless inconsistent with the context, an expression which
      denotes:

	 	
       

	2.5.1 	
      any gender includes the other genders;

	 	
       

	2.5.2 	
      a natural person includes an artificial person and
      vice versa;

Page 8

	2.5.3 	the singular includes the plural and vice
      versa. 
	  	  
	2.6 	Where any term is defined within the context of
      any particular clause in this Agreement, the term so defined, unless it is
      clear from the clause in question that the term so defined has limited
      application to the relevant clause, shall bear the meaning ascribed to it
      for all purposes in terms of this Agreement, notwithstanding that that
      term has not been defined in this interpretation clause. 
	  	  
	2.7 	The rule of construction that a contract shall
      be interpreted against the party responsible for the drafting or
      preparation of such contract, shall not apply. 
	  	  
	2.8 	The schedules and annexures to this Agreement
      form an integral part hereof and words and expressions defined in this
      Agreement shall bear, unless the context otherwise requires, the same
      meaning in such schedules and/or annexures. 
	  	  
	3. 	INTRODUCTION 
	  	  
	3.1 	The Seller owns and conducts the Business.
  
	  	  
	3.2 	The Seller has agreed to sell the Business to
      the Purchaser, which has agreed to purchase the Business, as a going
      concern, on the terms and conditions contained in the Agreement. 
	  	  
	3.3 	The Parties wish to record their agreement in
      writing. 

Page 9

	4. 	
      SALE AND PURCHASE

	 	 
		
      With effect from the Signature Date the Seller sells and
      the Purchaser hereby purchases the Business as a going concern, subject to
      the terms and conditions of this Agreement, it being specifically recorded
      that:

	 	 
	4.1 	
      All amounts owing to the purchaser by the seller shall be
      set of against the purchase price and be deducted from the balance
      purchase price, which amounts shall include but not be limited to: all
      amounts advanced to the seller by the purchaser, settlement amounts paid
      to the financial institutions and or creditors regarding the encumbered
      assets referred to in “Schedule B” and all other amounts paid by the
      purchaser to the seller or by the purchaser on behalf of the
  seller.

	 	 
	5. 	
      CONSIDERATION AND PAYMENT

	 	 
	5.1 	
      The Consideration, inclusive of VAT at 0%, (ZERO
      PERCENT), as this transaction is concluded as sale of a going concern,
      shall be an amount equal to the aggregate of R21,300,000-00 (TWENTY ONE
      MILLION THREE HUNDRED THOUSAND RAND).

	 	 
	5.2 	
      The Consideration shall be discharged as
  follows:

	 	 
	5.2.1 	
      Payment in the amount of R500,000-00 (FIVE HUNDRED
      THOUSAND RAND) inclusive of VAT, to the seller by the purchaser on the
      30th of April 2007.

Page 10

	5.2.2 	
      Payment of an amount of R1,000,000-00 (ONE MILLION RAND)
      inclusive or VAT, on the closing date

	 	 
	5.2.3 	
      The balance owing by the purchaser to the seller after
      the set off or deduction of the amounts as referred to in clause 4.1
      supra shall be payable by the purchaser to the seller as
      follows:

	 	 
	5.2.3.1 	
      An amount of R3,000,000-00 (THREE MILLION RAND) of the
      balance purchase price shall be payable by way of RV shares, the said
      share price per share to be calculated as soon as possible after signature
      of this agreement, and if so required by the seller to be verified by an
      independent auditor agreed upon by both parties.

	 	 
	5.2.3.2 	
      The balance payable to the seller by the purchaser after
      deduction of the share allocation amount of R3,000,000-00 (THREE MILLION
      RAND) shall be payable by way of monthly payments of R500,000-00 (FIVE
      HUNDRED THOUSAND RAND) (VAT inclusive) until the purchase price plus
      interest has been paid in full.

	 	 
	5.2.3.3 	
      The said allocated shares as referred to in clause
      5.2.3.1 surpa shall not be exchanged, or traded, or sold in any
      manner, by the seller for a period of one (1) year after date of
      listing.

	 	 
	5.2.3.4 	
      In the event that such listing is not concluded or is not
      finalised on or before the 28th of February 2008, the
      outstanding balance shall be payable by the purchaser to the seller by way
      of monthly cash payments of R1,000,000-00 (ONE MILLION RAND) (VAT
      inclusive) on the same terms and conditions as set out
  hereunder.

Page 11

	5.2.4 	
      The monthly payments shall attract interest calculated at
      the prime rate of Standard Bank as effective from time to time. 

	  	
       

	5.2.5 	
      The said payment shall be payable by the purchaser to the
      seller on or before the 3rd day of each month with the first
      payment on the 3rd day of July 2007 and such payments shall
      subsist until the full purchase price plus interest has been paid in full
      by the purchaser to the seller. 

	  	
       

	  	
       

	6. 	
      SALE LIABILITIES 

	  	
       

	 	
      The Purchaser: 

	  	
       

	6.1 	
      shall assume responsibility and liability for the due and
      proper discharge of the Sale Liabilities with effect from the Effective
      Date; and 

	  	
       

	6.2 	
      accordingly, hereby indemnifies and holds the Seller
      harmless from and against all and any claims, loss, damages or expenses of
      whatsoever nature which the Seller may suffer or incur in respect of the
      Sale Liabilities after the Effective date. 

	  	
       

	7. 	
      ALLOCATION OF THE CONSIDERATION 

	  	
       

	 	
      The amount of the Consideration shall be allocated to the
      Sale Assets as follows: 

	  	
       

	7.1 	
      an amount equal to the net book value of the Fixed Assets
      as reflected in Schedule B annexed hereto; and

Page 12

	7.2 	to goodwill, NIL 
	  	  
	 	  
	  	  
	8. 	VALIDATION 
	  	  
	8.1 	For the purposes of determining and
      ascertaining that the Fixed Assets and the Inventory are available and
      present for transfer on the Effective Date, representatives of the Seller
      and the Purchaser shall conduct a physical stocktake on the day preceding
      the Effective Date. 
	  	  
	8.2 	The Seller and the Purchaser, or their duly
      authorised representatives, shall prepare stock sheets reflecting the
      quantity and presence of all items and sign same. The stock sheets are
      intended to identify the Fixed Assets and the Inventory and the value
      ascribed to same and shall be subject to correction for any manifest
      error. 
	  	  
	8.3 	Should any dispute arise as to the quality,
      quantity, identity or value of any of the items in relation to the Fixed
      Assets and/or the Inventory, the dispute shall be referred for decision to
      the Seller’s auditors, whose decision shall in the absence of manifest
      error, be final and binding on the Parties and who in so determining shall
      be acting as experts and not as arbitrators. 

Page 13

	9. 	
      CLOSING 

	  	
       

	9.1 	
      At 10:00 on the Closing Date, representatives of the
      Parties shall if necessary meet at the business site at the Farm
      Makoenskloof for purposes of a closing meeting. 

	  	
       

	9.1.1 	
      deliver the Business to the Purchaser as it then exists
      in such place or places as the Business shall then be situated, by placing
      the Purchaser in control thereof, in the event that this has not already
      transpired 

	  	
       

	9.1.2 	
      place the Purchaser in control of all books and records
      relating to the Business other than the statutory records and books of
      account of the Seller, to which the Purchaser shall be entitled to have
      reasonable access in relation to all matters affecting the Business. The
      Seller shall be entitled to have reasonable access to and to make copies
      of such documents and records of the Business which are transferred to the
      Purchaser, in so far as they refer to periods prior to the Closing Date
      and which are required by the Seller to meet its obligations arising prior
      to the Closing Date and for no other purpose. 

	  	
       

	9.2 	
      As soon as possible after the Closing Date and after
      being requested to do so in writing by the Purchaser, the Seller shall
      sign all such documents as may be necessary to effect registration of
      transfer of any of the Sale Assets in any public registry, the transfer of
      which are capable of being so registered, in the event that this has not
      already transpired. 

	  	
       

	. 	
       

Page 14

	10. 	
      CONTRACTUAL OBLIGATIONS OF THE SELLER IN RESPECT OF
      THE BUSINESS

	 	 
	10.1 	
      This Agreement constitutes the necessary cession and
      delegation of the Contracts as at the Closing Date to the Purchaser. On or
      as soon as possible after the Closing Date, the Seller shall deliver to
      the Purchaser such documents, duly prepared and completed by the relevant
      third parties at the Purchaser’s own cost as may be necessary and/or
      required to cede and delegate to the Purchaser all of the Seller’s rights
      and obligations respectively under such Contracts and to vest ownership in
      and to such Contracts in the Purchaser with effect from the Closing
      Date.

	 	 
	10.2 	
      Both the Seller and the Purchaser undertake together to
      approach the other party or parties to any of the Contracts as at the
      Closing Date to which the Seller is a party with a view to procuring the
      consent of such other party or parties to the cession by the Seller to the
      Purchaser, with effect from the Closing Date, of all the Seller’s rights
      and delegation of its obligations in terms of any such Contracts to the
      Purchaser.

	 	 
	10.3 	
      To the extent that any contracting party to any of the
      Contracts ceded and assigned to the Purchaser hereunder, does not agree to
      the delegation by the Seller to the Purchaser of the Seller’s obligations
      under such Contract, the Parties shall co-operate in such ways as may be
      necessary and/or incidental or otherwise in carrying into effect the
      intent and import of such proposed cession and delegation, and all
      benefits and risks emanating from any such Contract from the Closing Date
      shall be for the Purchaser’s account. Without waiving or abrogating any of
      the rights or remedies

Page 15

		
      arising from or in connection with the Contracts so ceded
      and assigned to it, the Purchaser undertakes to discharge such obligations
      and liabilities as and when they fall due for performance or payment, and
      hereby indemnifies the Seller accordingly.

	 	 
	10.4 	
      As between Seller and the Purchaser, from the Closing
      Date, the Purchaser shall be entitled to and shall be responsible for the
      rights and obligations of the Seller arising under or by virtue of the
      Contracts ceded and assigned to the Purchaser hereunder and in the event
      that this has not already transpired.

	 	 
	10.5 	
      Between the Signature Date and the Closing Date the
      Seller will not agree to any variation of a material nature to, or the
      cancellation of, any of the Contracts without the Purchaser’s prior
      written consent which consent will not be unreasonably withheld.

	 	 
	10.6 	
      The Purchaser shall account in full to the Seller in
      respect of any receipts and/or refunds received by it after the Closing
      Date which relates to the period prior to the Closing Date in respect of
      the Business and shall remit such receipts and refunds to the Seller
      immediately upon receipt of same.

	 	 
	10.7 	
      The Seller shall account in full to the Purchaser in
      respect of any receipts and/or refunds received by it after the Closing
      Date which relates to the period after the Closing Date in respect of the
      Business and shall remit such receipts and refunds to the Purchaser
      immediately upon receipt of same.

Page 16

	11. 	OWNERSHIP, POSSESSION, RISK AND
      BENEFIT 
	  	 
	11.1 	
      Ownership in and to the Business shall pass to the
      Purchaser on the Effective Date. 

	  	
       

	11.2 	
      Risk and benefit in and to the Business shall pass to the
      Purchaser on the date of signature hereof. 

	  	
       

	12. 	
      INSURANCE 

	  	
       

	 	
      The Seller shall, until the closing date, continue to
      maintain as current and paid- up to date all policies of insurance
      relating to and/or in connection with the Sale Assets on the same basis as
      such assets are insured in the ordinary course of conduct of the Business.
      

	. 	
       

	13. 	
      EMPLOYEES 

	  	
       

	13.1 	
      The Parties agree that with effect from the Closing Date,
      Section 197(2)(a) of the LRA shall be applicable in relation to the
      Transferring Employees and that accordingly: 

	  	
       

	13.1.1 	
      the Purchaser is automatically substituted as the “New
      Employer” in the place of the Seller as the “Old Employer” in respect of
      all contracts of employment in existence as at the Closing Date, between
      the Seller and the Transferring Employees; 

Page 17

	13.1.2 	
      all the rights and obligations between the Old Employer
      and the Transferring Employees as at the Closing Date shall continue in
      force as if they had been rights and obligations between the New Employer
      and the Transferring Employees; and 

	  	
       

	13.1.3 	
      anything done before the Closing Date by or in relation
      to the Old Employer, including the dismissal of any employee or the
      commission of an unfair labour practice or act of unfair discrimination,
      is considered to have been done by or in relation to the New Employer; and
      

	  	
       

	13.1.4 	
      the transfer does not interrupt the continuity of
      employment of the Transferring Employees, or any of them, and the contract
      of employment of the Transferring Employees, or any of them, continues
      with the New Employer as if with the Old Employer. 

	  	
       

	13.2 	
      The Seller, as the Old Employer, and the Purchaser, as
      the New Employer, hereby agree, for the purposes of Section 197(7) of the
      LRA that: 

	  	
       

	13.2.1 	
      the valuation as at the Closing Date of the leave pay
      accrued to the Transferring Employees shall be the aggregate amount as
      reflected in Schedule D and the proportionate share of such leave pay due
      to each Transferring Employee shall be as indicated in Schedule D hereto
      and payable to the Seller to the Purchaser by way of set of against the
      purchase price. 

	  	
       

	13.2.2 	
      the severance pay that would have been payable to the
      Transferring Employees as at the Closing Date in the event of a dismissal
      by 

Page 18

	 	
      reason of the employer’s operational requirements would
      have been the aggregate amount which would have been payable to each
      Transferring Employee shall be as reflected in Schedule D hereto; and
      payable to the Seller to the Purchaser by way of set of against the
      purchase price. 

	  	
       

	13.2.3 	
      the value of any other payments that have accrued to the
      Transferring Employees but have not been paid to them by the Old Employer,
      shall be the aggregate amount set out in Schedule D and the proportionate
      share of such amount due to each Transferring Employee shall be detailed
      in Schedule D hereto and payable to the Seller to the Purchaser by way of
      set of against the purchase price. 

	  	
       

	13.3 	
      The list of Transferring Employees contained in Schedule
      D hereto, shall detail the amounts due to each of the Transferring
      Employees in terms of 13.2.1, 13.2.2 and 13.2.3. 

	  	
       

	13.4 	
      The Seller and the Purchaser hereby agree, in terms of
      Section 197(7)(b) of the LRA that: 

	  	
       

	13.4.1 	
      the Purchaser is responsible for paying all of the
      amounts referred to in clause 13.2.1, it being specifically recorded that
      there shall be no apportionment of liability between the Seller and the
      Purchaser, and that the Purchaser shall be responsible for and shall pay
      the full amount specified in clause 13.2.1; and 

	  	
       

	13.4.2 	
      should any of the Transferring Employees be dismissed by
      reason of the operational requirements of either the Seller or the
      Purchaser, the 

Page 19

	 	
      amount as specified in terms of clause 13.2.2 shall be
      payable by the Purchaser to any of the Transferring Employees so dismissed
      and the Purchaser indemnifies the Seller in respect of any claim made
      against the Seller in respect thereof; and 

	  	
       

	13.4.3 	
      the Purchaser shall be liable to pay all accrued leave
      pay and the amounts envisaged in 13.2.3 to the Transferring Employees as
      and when the Transferring Employees shall become entitled to such payment.
      

	  	
       

	13.5 	
      The Parties hereby irrevocably and unconditionally
      acknowledge that this clause 13 and the arrangements contemplated in terms
      thereof constitute compliance by them with the provisions of Section 197
      of the LRA. 

	  	
       

	13.6 	
      The Seller shall have no claim of whatsoever nature
      against the Purchaser arising from any industrial action or unrest on the
      part of the Transferring Employees, or any of them, prior to the Closing
      Date; and the Purchaser shall have no claim of whatsoever nature against
      the Seller in respect of any industrial action or unrest on the part of
      the Transferring Employees, or any of them, with effect from the Closing
      Date. 

	  	
       

	13.7 	
      The Seller shall discharge any and all of its obligations
      to the Transferring Employees, arising from or in connection with the
      employment by the Seller of the Transferring Employees and which are due
      and owing prior to the Closing Date (including, but not limited to, any
      amounts which may be due to Transferring Employees arising from the
      failure by the Seller to comply with the provisions of applicable
      legislation and regulations relating to 

Page 20

	 	
      health and safety), excluding the amounts referred to in
      13.4 and indemnifies the Purchaser against any and all claims arising from
      or in connection with this obligation. 

	  	
       

	13.8 	
      The contents of this clause 13 do not constitute, nor
      shall they be deemed to constitute a stipulation for the benefit of the
      Transferring Employees, nor shall the Transferring Employees, or any of
      them, be entitled to accept and/or to enforce any of the obligations
      arising in terms of and/or in connection with this clause 13. 

	  	
       

	14. 	
       VALUE-ADDED TAX 

	  	
       

	14.1 	
      It is recorded that the Purchaser and the Seller are of a
      view that the sale of the Business as a going concern on the basis set out
      in this Agreement, will be zero-rated in terms of Section 11(1)(e) of the
      VAT Act for the reasons that the Purchaser and the Seller agree that:
    

	  	
       

	14.1.1 	
      the salient terms of this Agreement are the sale as one
      indivisible transaction of an enterprise (referred to herein as the
      Business); 

	  	
       

	14.1.2 	
      such enterprise is sold as a going concern as at the
      Closing Date to the Purchaser; 

	  	
       

	14.1.3 	
      such enterprise is and will be an income earning activity
      as at the Signature Date, the Closing Date and the Closing Date and will
      be transferred as such; 

Page 21

	14.1.4 	
      all the assets of such enterprise necessary for its
      continued operation are being sold in terms hereof. 

	  	
       

	14.2 	
      The Seller and the Purchaser warrant that at the Closing
      Date they will be registered as vendors for purposes of the VAT Act.
    

	  	
       

	14.3 	
      The Parties record that the Consideration referred to in
      5 is inclusive of VAT at the rate of zero percent. 

	  	
       

	14.4 	
      The Seller shall furnish the Purchaser with an
      appropriate tax invoice on a zero-rated basis by no later than the Closing
      Date. In the event that the Purchase Price or any part thereof, attracts
      VAT at a higher rate than zero percent, the Purchaser shall be obliged, on
      written demand delivered to it by the Seller, to pay the amount of such
      value-added tax including, without limitation all penalties and/or
      interest which shall have accrued in respect of and/or relating to the
      value-added tax payable in respect of the Consideration recorded in this
      Agreement to the Seller against delivery of an appropriate tax invoice.
      

	  	
       

	15. 	
      WARRANTIES AND UNDERTAKINGS BY THE
      SELLER 

	  	
       

	15.1 	
      The Seller gives to the Purchaser the Warranties set out
      in Schedule A hereto in connection with the Business. 

	  	
       

	15.2 	
      Save as otherwise specifically provided in this Agreement
      and in Schedule A hereto, the Seller gives no warranties or undertakings
      and makes no 

Page 22

		
      representations, whether express or implied, written or
      oral, in connection with the Business.

	 	 
	15.3 	
      Unless otherwise stated in Schedule A1, or otherwise
      required by the context, the Warranties shall apply as at the Signature
      Date and the Closing Date, and during the periods between those
    dates.

	 	 
	15.4 	
      The liability of the Seller in respect of all claims made
      in respect of any representations, undertakings or Warranties contained in
      this Agreement with respect to the ownership and entitlement of the Seller
      to dispose of the Sale Assets shall be limited to 100% of the
      Consideration referred to in 5.1.

	 	 
	15.5 	
      Notwithstanding any other provision of this Agreement,
      any representations, undertakings or Warranties herein contained, to the
      extent remediable if breached, shall not, if breached, entitle the
      Purchaser to commence an action for damages unless the Seller is given 14
      days prior written notice of such breach and such breach is not remedied
      within the 14 days notice period.

	 	 
	16. 	
      CONFIDENTIALITY

	 	 
	16.1 	
      None of the Parties shall issue any press release or any
      other public document or make any public statement in each case relating
      to or connected with or arising out of this Agreement, or the matters
      contained herein without obtaining the prior approval of the other Party
      to the contents thereof and the manner of its presentation and
      publication; provided that such approval shall not be unreasonably
      withheld or delayed.

Page 23

	16.2 	
      In the case of a release, announcement or document which
      is required to be given, made or published by law the Party liable so to
      give, make or publish the same shall give to the other Party as much
      advance warning thereof as is reasonable in the circumstances together
      with drafts or a copy thereof as soon as it is at liberty so to do.
  

	  	
       

	16.3 	
      Each of the Parties shall at all times keep confidential
      (and shall ensure that its employees, advisors and agents shall keep
      confidential) any confidential information which it has acquired or may
      acquire in relation to the other Party to this Agreement save for any
      information: 

	  	
       

	16.3.1 	
      which is publicly available or becomes publicly available
      through no act or default of the first mentioned Party; or 

	  	
       

	16.3.2 	
      which was in the possession of that Party prior to its
      disclosure otherwise than as a result of any breach by a Party of any
      obligation of confidentiality owed to the other Party whether pursuant to
      this Agreement, the Confidentiality Agreement or otherwise; or 

	  	
       

	16.3.3 	
      which is disclosed to that Party by a third party which
      did not acquire the information under an obligation of confidentiality; or
      

	  	
       

	16.3.4 	
      which is independently acquired by that Party as a result
      of work carried out by a person to whom no disclosure of such information
      has been made, 

	  	
       

	 	
      and shall not use or disclose such information except
      with the consent of the other Party or in accordance with an order of
      court of competent 

Page 24

		
      jurisdiction or in order to comply with any law or
      governmental regulations by which the Party concerned is bound.

	 	 
	16.4 	
      The Parties shall ensure that their respective advisors,
      officers, employees and agents shall observe a similar obligation of
      confidence in favour of the other of them.

	 	 
	16.5 	
      This confidentiality undertaking does not supersede the
      obligations of the Purchaser arising under any confidentiality agreement
      entered into between the Parties, but shall be in addition thereto and
      shall survive the termination of this Agreement for whatsoever reason for
      a period of 3 years after such termination.

	 	 
	17. 	
      INSOLVENCY ACT PUBLICATION

	 	 
	17.1 	
      The Parties agree that notice of the Transaction will not
      be published as contemplated in Section 34 of the Insolvency Act, No. 24
      of 1936 (as amended) ("the Insolvency Act").

	 	 
	17.2 	
      The Seller indemnifies the Purchaser against any loss or
      damage which the Purchaser may suffer as a result of notice of this
      transaction not being published in terms of the Insolvency
  Act.

Page 25

	18. 	
      RESOLUTION 

	  	
       

	 	
      On the Signature Date, the Seller shall deliver to the
      Purchaser a certified copy of a resolution of its members in respect of
      the sale of the Business to the Purchaser in terms of this Agreement.
    

	  	
       

	19. 	
      BREACH 

	  	
       

	 	
      Should any Party ("Defaulting Party") commit a breach of
      any of the provisions hereof, then any of the other Parties ("Aggrieved
      Party") shall, if it wishes to enforce its rights hereunder against the
      Defaulting Party arising from such breach, be obliged to give the
      Defaulting Party not less than 14 days written notice to remedy the
      breach. If the Defaulting Party fails to comply with such notice, the
      Aggrieved Party shall be entitled to claim immediate payment and/or
      performance by the Defaulting Party of all of the Defaulting Party's
      obligations whether or not the due date for payment and/or performance
      shall have arrived, without prejudice to the Aggrieved Party's rights to
      claim damages. The foregoing is without prejudice to such other rights as
      the Aggrieved Party may have at law. 

	  	
       

	20. 	
      DOMICILIUM 

	  	
       

	20.1 	
      The Parties choose domicilia citandi et executandi for
      all purposes of and in connection with this Agreement as follows:
  

Page 26

	  	
      the Seller: 
	
      The Farm Holpan 

	  	
       
	
      District Barkly West 

	  	
      and 
	
       

	  	
      the Purchaser: 
	
      35 Curlewis Street 

	  	
       
	
      Potch Industria 

	  	
       
	
      POTCHEFSTROOM 

	  	
                   . 
	
       

	  	
                   . 
	
       

	20.2 	
      Any Party shall be entitled to change its domicilium from
      time to time, provided that any new domicilium selected by it shall be an
      address other than a box number in South Africa, and any such change shall
      only be effective upon receipt of notice in writing by the other Parties
      of such 

	
      change. 
	
       

	  	
       
	
       

	20.3 	
      All notices, demands, communications or payments intended
      for any Party shall be made or given at such Party's domicilium for the
      time being. 

	  	
       
	
       

	20.4 	
      A notice sent by one Party to any of the other Parties
      shall be deemed to be received: 

	  	
       
	
       

	20.4.1 	
      on the same day, if delivered by hand, on a Business Day
      during normal business hours in the jurisdiction of the relevant Party,
      failing which, the next succeeding Business Day in that jurisdiction;
    

	  	
       
	
       

	20.4.2 	
      if transmitted by telefax on any Business Day during
      normal business hours in the jurisdiction of the relevant Party with
      receipt received confirming completion of transmission, on the date of
      transmission, alternatively the first Business Day immediately after the
      date of transmission; 

Page 27

	20.4.3 	
      on the seventh day after posting, if sent by prepaid
      registered mail. 

	 	  

	20.5 	
      Notwithstanding anything to the contrary herein contained
      a written notice or communication actually received by a Party shall be an
      adequate written notice or communication to it notwithstanding that it was
      not sent to or delivered at its chosen domicilium citandi et executandi.
      

	 	   

	21. 	
      COSTS 

	 	
       

	 	
      Each party will be responsible for payment of his own
      legal costs in connection with the preparation and all attendances with
      regard to the drawing of this option agreement.

	 	   

	22.  	
      ARBITRATION

	 	  

	22.1 	
      Save as otherwise specifically provided in this
      Agreement, any dispute amongst the Parties in regard to: 

	 	
       

	22.1.1 	
      the interpretation of; 

	 	
       

	22.1.2 	
      the effect of; 

	 	
       

	22.1.3 	
      the Parties' respective rights and obligations under;
    

	 	
       

	22.1.4 	
      a breach of; 

Page 28

	22.1.5 	
      any matter arising out of; this Agreement shall be
      decided by arbitration in the manner set out in this clause. 

	 	
       

	22.2 	
      The said arbitration shall be held subject to the
      provisions of this clause: 

	 	
       

	22.2.1 	
      at Kimberley; 

	 	
       

	22.2.2 	
      informally; 

	 	
       

	22.2.3 	
      otherwise in accordance with the rules of the Arbitration
      Foundation of Southern Africa or any successor or replacement body (if
      any) (“AFSA”); 

	 	
       

	 	
      it being the intention that if possible it shall be held
      and concluded within 21 Business Days after it has been demanded.
  

	 	
       

	22.3 	
      If AFSA ceases to exist or declines to accept the hearing
      of the dispute, the dispute shall be submitted to and decided by
      arbitration in accordance with rules of AFSA in force immediately before
      AFSA ceased to exist or declined to accept the hearing of the dispute (as
      the case may be). 

	 	
       

	22.4 	
      The arbitrator shall be if the question in issue is:
    

	 	
       

	22.4.1 	
      primarily an accounting matter, an independent accountant
      with no less than 10 years standing agreed upon amongst the Parties;
    

Page 29

	22.4.2 	
      primarily a legal matter, a practising Senior Counsel
      with no less than 10 years standing agreed upon amongst the Parties;
    

	  	
       

	22.4.3 	
      any other matter, an independent person agreed upon
      amongst the Parties. 

	  	
       

	22.5 	
      If the Parties cannot agree upon a particular arbitrator
      in terms of 22.4 above within 7 Business Days after the arbitration has
      been demanded, the nomination in terms of 22.4.1, 22.4.2 and 22.4.3, as
      the case may be, shall be made by AFSA at the request of any Party to such
      dispute. 

	  	
       

	22.6 	
      The Parties irrevocably agree that the submission to
      arbitration in terms of this clause 22 is subject to the Parties’ rights
      of appeal set out hereunder. 

	  	
       

	22.7 	
      Any Party to the arbitration may appeal a decision of the
      arbitrator within a period of 20 Business Days after the arbitrator’s
      ruling has been handed down by giving written notice to that effect to the
      other Party to the arbitration. The appeal shall be dealt with in
      accordance with the rules of AFSA by a panel of three arbitrators
      appointed by AFSA. 

	  	
       

	22.8 	
      The decision of the arbitrator shall be final and binding
      on the Parties to the arbitration after the expiry of the period of 20
      Business Days referred to in 22.7 if no appeal has been lodged by either
      Party within such period. A decision which becomes final and binding in
      terms of this clause 22.8 may be made an order of court at the instance of
      either Party to the arbitration. 

	  	
       

	22.9 	
      Nothing herein contained shall prevent or prohibit any
      Party from applying to the appropriate court for interim or urgent relief.
      

Page 30

	22.10 	
      The provisions of this clause 22 shall be divisible from
      any other part of the Agreement and shall survive the termination or
      cancellation of this Agreement notwithstanding that the rest of the
      Agreement may be void or voidable. 

	 	 
	22.11 	
      The Parties irrevocably agree that the decision in these
      arbitration proceedings: 

	 	 
	22.11.1 	
      shall be binding on them, 

	 	 
	22.11.2 	
      shall be carried into effect, 

	 	 
	22.11.3 	
      may be made an order of any Court of competent
      jurisdiction. 

	 	 
	23. 	
       

	 	 
	24. 	
      SEVERABILITY 

	 	 
	 	
      If any clause or term of this Agreement should be
      invalid, unenforceable or illegal, then the remaining terms and provisions
      of this Agreement shall be deemed to be severable therefrom and shall
      continue in full force and effect unless such invalidity, unenforceability
      or illegality goes to the root of this Agreement. 

	 	
       

	25. 	
      APPLICABLE LAW AND JURISDICTION 

	 	 
	 	
      This Agreement shall be governed in all respects by and
      shall be interpreted in accordance with the laws of South Africa, and,
      subject to the provisions of 22, the 

Page 31

	 	Parties hereby consent and submit to the
      non-exclusive jurisdiction of the High Court of South Africa (Northern
      Cape Provincial Division). 
	  	  
	26. 	COUNTERPARTS 
	  	  
	26.1 	This Agreement may be executed in any number of
      counterparts and by the different Parties hereto on separate counterparts,
      each of which when so executed and delivered shall be an original, but all
      such counterparts together shall constitute one and the same instrument.
    
	  	  
	25.2 	This agreement shall only become binding upon
      signature thereof by the representative of the purchaser 
	  	  
	27. 	GENERAL 
	  	  
	27.1 	This document read with the Property Sale
      Agreement constitutes the sole record of the agreement between the Parties
      in regard to the subject matter hereof. 
	  	  
	27.2 	No Party shall be bound by any express or
      implied term, representation, warranty, promise or the like, not recorded
      herein. 
	  	  
	27.3 	No addition to, variation or consensual
      cancellation of this Agreement shall be of any force or effect unless in
      writing and signed by or on behalf of all of the Parties.

Page 32

	27.4 	
      No indulgence which any of the Parties ("the Grantor")
      may grant to any of the other Parties ("the Grantee") shall constitute a
      waiver of any of the rights of the Grantor, who shall not thereby be
      precluded from exercising any rights against the Grantee which might have
      arisen in the past or which might arise in the future.

	 	 
	27.5 	
      The Parties undertake at all times to do all such things,
      to perform all such acts and to take all such steps and to procure the
      doing of all such things, the performance of all such actions and the
      taking of all such steps as may be open to them and necessary for or
      incidental to the putting into effect or maintenance of the terms,
      conditions and import of this Agreement.

	 	 
	27.6 	
      No Party shall be entitled to cede, make-over or
      otherwise transfer all or any of its rights, interest or delegate any of
      its obligations under and in terms of this Agreement except with the prior
      written consent of the other Parties.

	 	 
	27.7 	
      The provisions of this Agreement novate and supersede all
      prior agreements, written or oral, regarding the subject matter
    hereof.

	 	 
	27.8 	
      Should the Parties fail to agree on any matter which is
      expressed, in this Agreement, to be subject to agreement amongst the
      Parties on such matter, such failure shall not be regarded as material to
      this Agreement and shall not affect the validity and enforceability of
      this Agreement.

Page 33

THUS DONE and SIGNED at ___________________________on this the
________________day of ________________________2007.

	 	For and on behalf of 
	 	FOLMINK DELWERY BK 
	 	  
	 	by  
	 	
	 	who warrants his authority hereto

28.

THUS DONE and SIGNED at ___________________________on this the
________________day of ________________________2007.

	 	For and on behalf of 
	 	H C VAN WYK DIAMONDS LIMITED 
	 	  
	 	by 
	 	
	 	who warrants his authority hereto

SCHEDULE A

WARRANTIES

	1. 	
      The Warranties in this Schedule are given by the Seller
      on the basis set forth in clause 15 of the Agreement to which this
      Schedule A is attached ("the Agreement"):

	 	 
	2. 	
      These Warranties shall apply except as qualified or
      otherwise amended by the provisions of the Agreement and by the
      disclosures contained in the disclosure schedule, if any, annexed as
      Schedule A1 to the Agreement (“the Disclosure Schedule”).

	 	 
	3. 	
      Words and expressions defined in the Agreement shall have
      the same meaning herein as assigned to them in the
  Agreement.

Business

	4. 	
      The Seller will, against delivery of the Business on the
      Closing Date, give the Purchaser free and unencumbered ownership of the
      Business as it exists at the Closing Date.

	 	 
	5. 	
      On the Effective Date no person will have any right
      (including, inter alia, any option or right of first refusal) to
      purchase any of the assets of the Business other than in the ordinary
      course of the Business.

	 	 
	6. 	
      The Seller is not at the Signature Date party to any
      agreement other than the Contracts and at the Effective Date will not be a
      party to any other contracts other than those arising in the ordinary
      course of the Business.

Page 2

	7. 	
      All the Sale Assets owned and used exclusively by the
      Seller in the conduct of the Business as at the Effective Date (save and
      except such assets as may have been sold and/or disposed of by the Seller
      in the ordinary course of the conduct of the Business), will have been
      sold to the Purchaser in terms of the Agreement.

	 	 
	8. 	
      There will be no amounts owing to creditors of the
      Business as at the Effective Date which are not reflected in Schedule B
      and or Schedule C.

	 	 
	9. 	
      The material assets of the Seller required for the
      conduct of the Business are not at the Signature Date and will not at the
      Effective Date, except in the ordinary course of the conduct of the
      Business, be subject to any:

	 	 
	9.1 	
      hire-purchase agreement unless as referred to in Annexure
      B; or

	 	 
	9.2 	
      credit agreement, instalment sale transaction, leasing
      transaction or credit transaction unless as referred to in Annexure B;
      or

	 	 
	9.3 	
      pledge, mortgage, lien, notarial bond; or

	 	 
	9.4 	
      other right in favour of any third person.

	 	 
	10. 	
      The Seller:

	 	 
	10.1 	
      has maintained a register of the Fixed Assets materially
      in accordance with generally accepted accounting practice; and

	 	 
	10.2 	
      will have, between the Signature Date and the Effective
      Date, continued in all material respects to carry on the Business in the
      ordinary course and in

Page 3

accordance with the usual and normal
trading style, standards and practices adopted by the Seller as at the Signature
Date.

Legal Proceedings

	11. 	
      As at the Signature Date, no legal proceedings of a
      material nature have been instituted against the Seller in respect of the
      Business.

Contracts

	12. 	
      The Contracts in force on the Signature Date have been
      entered into in the ordinary and regular course of the Business and at the
      Effective Date any additional Contracts which may have been entered into
      between the Signature Date and the Effective Date will have been entered
      into in the ordinary and regular course of the Business.

	 	 
	13. 	
      The Seller is not at the Signature Date in breach of any
      of its material obligations under the Contracts.

Operations

	14. 	
      Between the Signature Date and the Effective
  Date:

	 	 
	14.1 	
      none of the Fixed Assets of the Business will have been
      sold or otherwise disposed of for a consideration which is lower than its
      market value;

	 	 
	14.2 	
      no Fixed Asset will have been acquired for the Business
      for a consideration which is greater than its market value;
  and

Page 4

	14.3 	
      in any event the Seller will not have acquired or
      disposed of any Sale Assets otherwise than under bona fide
      transactions entered into in the ordinary and regular course of the
      conduct of the Business. 

	  	
       

	15. 	
      The Inventory comprising raw materials or
      work-in-progress shall, at the Effective Date be capable of being used for
      the production of finished product. 

Environmental matters

	16. 	
      To the best of the knowledge and belief of the Seller at
      the Signature Date there has been no atmospheric or ground pollution of a
      material nature arising out of the conduct of the Business and the
      operating procedures employed within the Business do not contravene
      applicable environmental or safety regulations or laws.

	 	 
	17. 	
      To the best of the Seller’s knowledge and belief, the
      conduct of the Business on the Property has not contaminated the land
      surrounding any mine or property or any water.

	 	 
	18. 	
      The Seller is not aware of any deficiencies in the waste
      disposal arrangements carried on at or in respect of the Property or any
      other property forming part of the Business, which may lead to a failure
      by the Seller to comply with any Environmental Legislation.

	 	 
	19. 	
      The Seller is not in breach of any of its obligations
      under the EMP applicable to the Property and has complied with all its
      rehabilitation obligations in accordance with such
  programme.

Page 5

	20. 	
      The Seller is not aware of any disputes claims or
      investigations or other proceedings pending or threatened regarding the
      use of any property, including the Property, or the release of any
      substances from any of the forementioned Property forming part of the
      Business.

	 	 
	21. 	
      The Seller is not aware of any claims, investigations or
      other proceedings of an environmental nature pending or threatened against
      the Seller in connection with the conduct of the Business and there is no
      actual or contingent liability of the Seller to make good, repair,
      reinstate or clean up the Property or any property forming part of or
      being used in the conduct thereof.

	 	 
	22. 	
      The Seller is not aware of any water, whether surface or
      ground water, which may have been contaminated, polluted or the quality
      thereof altered in the conduct of the Business in such a way that the
      provisions of current South African water law whether common law or
      statutory law will have been materially breached.

	 	 
	23. 	
      The Seller is not aware of any dust contamination caused
      as a result of the operation of the Business which may have materially
      exceeded any requirement laid down by current South African
  law.

Transferring Employees

	24. 	
      The Seller will not increase or agree to increase any of
      the remuneration including all perquisites, incentive arrangements and
      other benefits and emoluments (nor change any of the terms or conditions
      of employment of any of the Transferring Employees) other than any normal
      and bona fide increases

Page 6

granted or other bona fide
changes made in the ordinary and regular course of carrying on the Business.

	25. 	
      All:

	 	 
	25.1 	
      contributions payable at the Effective Date by the Seller
      and the Transferring Employees or on their behalf to the Seller’s Funds
      and to the medical aid scheme of which they are members;

	 	 
	25.2 	
      statutory levies and contributions payable at the
      Effective Date by the Seller and the Transferring Employees or on their
      behalf,

	 	 
	29. 	
      will be paid by the Seller when due.

	 	 
	26. 	
      As at the Effective Date, there will be no material
      liabilities of the Seller to the Seller’s Funds in respect of the
      Transferring Employees arising by reason of past service recognised by the
      Seller.

	 	 
	27. 	
      All Transferring Employees who are participants under any
      of the incentive schemes of the Seller will be entitled to exercise their
      rights under such schemes arising from them ceasing to be employed by the
      Seller and no liability will attach to the Purchaser arising out of the
      exercise of such rights under such schemes.

SCHEDULE “A1”

DISCLOSURE SCHEDULE

 

FIXED ASSETS - SCHEDULE B

FOLMINK DELWERY BK -
CK1990/021880/23

	YEAR 	MAKE 	TYPE 	MODEL NR 	REG NR 	VALUE 	SETTLEMENT 
	
2003 	MERCEDES 
BENZ 	
ACTROS 	
2-3348/45 	
	
FPL612NW 	
480 000.00 	
459 853.59 
	
2007 	MERCEDES 
BENZ 	
	
1317 	
	
	
394 000.00 	
314 000.00 
	  	JOHN
      DEERE 	TRACTOR 	2140
    	  	X000062 	20
      000.00 	  
	1995 	JOHN
      DEERE 	TRACTOR 	2351
    	  	  	60
      000.00 	  
	2005 	TOYOTA
    	LWB
    	3.0
    	  	FKK298NW 	101
      000.00 	  
	1999 	TOYOTA
    	LWB
    	2.4
    	  	DXC654NW 	42
      000.00 	  
	
2007 	
TOYOTA 	
LWB 	2.5D-4D 
R/B 	
	
FVB975NW 	
184 192.00 	
159 352.25 
	  	NISSAN
    	D/CAB 	  	  	  	140
      000.00 	  
	1983 	GYPSEY
    	CARAVAN 	  	  	CLR589NW 	20
      000.00 	  
	
2002 	
BELL 	DUMP 
TRUCK 	
B40CM 	
	
BAT6042 	
950 000.00 	
716 589.46 
	2005 	BELL
    	  	B30D
    	  	5165
    	925
      000.00 	799
      840.68 
	2005 	BELL
    	  	B30D
    	  	5436
    	925
      000.00 	799
      840.68 
	
2005 	FINLAY 
MEGATRACK 	
SCREEN 	
883 	
	
FRT540583 	
1 100 000.00 	
962 588.87 
	
	
FURUKAWA 	FRONT-END 
LOADER 	
230 	
	
	
450 000.00 	

	
2004 	
KOMATSU 	
BACKACTOR 	PC800 
SE-7 	
	
112823 	
2 100 000.00 	
1 553 418.19 
	
2006 	
KOMATSU 	
EXCAVATOR 	PC350LC- 
7 	
	
25229 	
1 401 500.00 	
1 396 653.66 
	2006 	KOMATSU 	EXCAVATOR 	WA
      380-5 	1
	62027 	1 251
      500.00 	1 247
      172.84 
	2006 	KOMATSU 	EXCAVATOR 	WA
      380-5 	2
	62028 	1 251
      500.00 	1 247
      127.84 
	2006 	KOMATSU 	EXCAVATOR 	WA
      380-5 	3
	62031 	1 251
      500.00 	1 247
      172.84 
	
	RECOVERY 
PLANT 	
	
	
	
	
1 200 000.00 	

	

2007 	FLOWSORT 
X-RAY 
DIAMOND 
RECOVERY
      
MACHINE 	

	

	

	

413 	

690 000.00 	

650 140.76 
	2006 	SKANIA
    	  	250KVA 	  	  	190
      000.00 	  
	
2001 	250KVA 
CUMMINS 	
	
	
	
	
190 000.00 	

	
2007 	45KVA 
PERKINS 	
	
	
	
	
75 000.00 	

	  	500KVA
      No 2 	  	  	  	  	110
      000.00 	  
	

	16mm HIGH 
VOLT CABLE 
2,000m 	

	

	

	

	

160 000.00 	

	  	25KVA
      TRANS 	  	  	  	  	12
      000.00 	  
	
	100KVA 
TRANS 	
	
	
	
	
23 000.00 	

	

	PAN 
NOMMER 1 
Scrubber 	

	

	

	

	

450 000.00 	

	

	PAN 
NOMMER 2 
Scrubber 	

	

	

	

	

450 000.00 	

	
	PAN 
NOMMER 3 	
	
	
	
	
300 000.00 	

Page 2

	
	PAN 
NOMMER 4 	
	
	
	
	
400 000.00 	

	 	SCREEN
      6x12 	 	 	 	 
    	80
      000.00 	 
	
	SCREEN 4x8 
2 No 	
	
	
	
	
160 000.00 	

	
	DEWATERING 
SCREEN 9x4 	
	
	
	
	
25 000.00 	

	
	SEPERATOR 
COMPLETE 	
	
	
	
	
30 000.00 	

	 	CONVEYOR 	 	 	 	 
    	100
      000.00 	 
	 	CONVEYOR 	 	 	 	 
    	100
      000.00 	 
	 	FEEDER
      BIN 	 	 	 	 
    	720
      000.00 	 
	
	3 
CONTAINERS 	
	
	
	
	
30 000.00 	

	
	OLIE 
CONTAINER 	
	
	
	
	
70 000.00 	

	 	CONTAINERS 	 	 	 	 
    	27
      000.00 	 
	

	6m 
CONTAINER 
CONVERT TO 
ABLUSION
	

	

	

	

CWLU8214895 	

52 750.00 	

	

	SLEEPING 
QUARTERS 
324m 	

	

	

	

	

145 000.00 	

	

	GENERAL 
EQUIPMENT 
TO OPERATE 
SITE
    	

	

	

	

	

2 500 000.00 	

SCHEDULE C

SALE LIABILITIES

 

SCHEDULE D

	TRANSFERRING EMPLOYEES 
	 

	EMPLOYEE 
NUMBER 	
NAME 	
JOB TITLE 	
ID NUMBER 
	004 	MR A
      THOM 	ELECTRICIAN 	6410255584083 
	005 	MR P
      PHUTIAGAE 	FOREMAN 	8309255621069 
	006 	MR WM
      HALOM 	WELDER
    	7008150 1001 
	008 	MR LL
      PHITIAGE 	DUMPER
    	7901315535086 
	009 	MR MJ
      MOKHALI 	DUMPER
    	5
      0514530608 
	011 	MR IA
      KUBU 	LAAIGRAAF 	7009096515089 
	012 	MR MD
      DIRE 	LAAIGRAAF 	7904235760085 
	015 	MR LG
      SEIPATO 	FINLAY
    	6811165290085 
	020 	MR MP
      MEDUPE 	PORREL
    	8201146099086 
	023 	MR TE
      BOUMAN 	CONVEYOR BELT H 	83
  
	024 	MR D
      SEI 	LAAIGRAAF DRYWER 	7806266190064 
	025 	MR T
      BOIKANYO 	LOSHAND 	5801155871086 
	028 	MR D
      KOPANE 	LOSHAND 	 
    
	029 	MR PJ
      BOIKANYO 	CONVEYOR BELT H 	7807025485068 
	031 	MR S
      MADIBO 	LOSHAND 	7808305538083 
	035 	MR R
      MADISO 	 
    	7308185940087 
	036 	MR BD
      MOKGWAFTSO 	 
    	6212095129088 
	037 	MR D
      KADI 	 
    	 
    
	040 	MR CP
      MOHONO 	BACKACTOR DRYWER 	7504186012088 
	019 	MR ES
      LUKOZI 	 
    	 
    
	051 	MR TG
      NTSANE 	 
    	8106166720086 
	065 	MR S
      MONGALE 	LAAIGRAAF DRYWER 	 
    
	070 	MNR H
      NTSIDI 	 
    	 
    
	074 	MNR H
      BOGATSU 	 
    	 
    
	082 	MNR S
      MATWA 	 
    	 
    
	083 	MNR G
      VAN DER LINDE 	 
    	 
    
	0 	MNR K
      KGENGWE 	PORREL
    	8303305348086 
	088 	MNR
      HARRY TLIBAKOGOANA 	 
    	860616672085 
	095 	MNR N
      ILHOILHOMISANG 	 
    	 
    
	097 	MNR PP
      NKETSI 	 
    	8009106128008 
	104 	MNR AM
      PHITIAGAE 	FINALY
    	6812165637085 
	105 	MNR N
      NTSIDI 	 
    	7802035912080 
	101 	MNR D
      MAREBE 	 
    	 
    
	112 	MNR S
      LEBOPO 	 
    	 
    
	113 	MNR I
      BOIKANYO 	 
    	 
    

	Page 2 
	 

	EMPLOYEE 
NUMBER 	
NAME 	
JOB TITLE 	
ID NUMBER 
	114 	MNR J
      MOOKAPILO 	 
    	 
    
	118 	MNR S
      MADISO 	 
    	700709512 
	121 	MNR J
      MADUNA 	DUMPER
      DRIVER 	 
    
	123 	MNR S
      GALEEMELME 	 
    	 
    
	129 	MNR AD
      MOKOENA 	PORREL
    	7701185874084 
	135 	MR J
      MATSEPE 	 
    	8610095690085 
	136 	MR S
      BOTLHOKWANE 	LOSHAND 	 
    
	137 	MR H
      SEBOGODI 	LOSHAND 	 
    
	138 	MR P
      MATTHEWS 	 
    	 
    
	139 	MR J
      MOKWENA 	PORREL
    	 
    
	144 	MR A
      KHOZA 	CONVEYOR BELT H 	 
    
	149 	MR JAN
      SESINYI 	PANDRYWER 	5506135719087 
	151 	MR D
      DINTWE 	LOSHAND 	 
    
	152 	MR J
      DINTWE 	LOSHAND 	 
    
	158 	MR T
      HLAGAASWANE 	LOSHAND 	 
    
	159 	MR M
      NKOMO 	LOSHAND 	 
    
	160 	MR MA
      MAHIATSI 	LAAIGRAAF DRYWER 	8411215 
	161 	MR T
      SEPOLE 	LOSHAND 	 
    
	165 	MR J
      RAMPAI 	LOSHAND 	6211105716085 
	166 	MR L
      WANA 	MECHANIC HANDLANGER 	 
    
	167 	MR C
      RAMARJDANA 	LOSHAND 	 
    
	168 	MR A
      THUTHAGAF 	FINLAY
    	 
    
	179 	MR I
      SIMON 	CONVEYOR BELT H 	 
    
	173 	MR M
      GAFJ 	CONVEYOR BELT H 	8602235989089 
	175 	MR H
      JULY 	DRYWER
    	 
    
	176 	MR D
      MATLOATANE 	DUMPER
      DRIVER 	 
    
	177 	MR P
      DAMP 	LAAIGRAAF DRYWER 	 
    
	178 	MR J
      NTSIDI 	CONVEYOR BELT H 	 
    
	179 	MR J
      SEIPHETOHO 	CONVEYOR BELT H 	 
    
	181 	MR V
      MOLIDI 	WELDER
    	 
    
	182 	MR BS
      KWASA 	BACKACTOR DRYWER 	6201015825084 
	183 	MR A
      SET HOLHO 	BACKACTOR DRYWER 	 
    
	184 	MR J
      SERAKE 	CONVEYOR BELT H 	 
    
	186 	MR R
      MOTLHABANE 	BACKACTOR DRYWER 	 
    
	187 	MR A
      GOLDEN 	PORREL
    	 
    
	188 	MR J
      MOTIATELE 	CONVEYOR BELT H 	 
    
	189 	MR J
      PORRELMAN 	PORREL
    	 
    

	Page 3 
	 

	EMPLOYEE 
NUMBER 	
NAME 	
JOB TITLE 	
ID NUMBER 
	191 	MR B
      DUMPER DRYWER 	DUMPER
      DRIVER 	 
    
	192 	MR S
      SANCOERE 	DOZER
      DRYWER 	7103037134088 
	194 	MR J
      MODIKE 	BACKACTOR DRYWER 	 
    
	195 	MR J
      SAKJWE 	PORREL
    	 
    
	196 	MR D
      MADIBO 	LOSHAND 	 
    
	199 	MR I
      LEBOPO 	LOSHAND 	 
    
	200 	MR J
      MASILO 	DRYWER
    	 
    
	201 	MR J
      DLAMINI 	DOZER
      DRYWER 	 
    
	202 	MR I
      SATSEPE 	FINLAY
    	 
    
	001 	MR DT
      JANSE VA RENSBURG 	 
    	580325113087 
	007 	MR M
      ERASMUS 	 
    	800916568038 
	008 	MR R
      ERASMUS 	 
    	 
    
	009 	MR J
      DE BEER 	 
    	 
    
	010 	MR DA
      VILJOEN 	 
    	8404175256083 
	011 	MR BVD
      BURCKARD 	 
    	3503185020Filed by Automated Filing Services Inc. (604) 609-0244 - Rockwell Ventures Inc. - Exhibit4.2

LOAN AGREEMENT

THIS AGREEMENT dated for reference January 26, 2007 is
between:

	               
                         
         AMARC RESOURCES LTD. a British Columbia company,
      having an 
	               
                         
         office at Suite 1020-800 West Pender Street , Vancouver,
      British 
	               
                         
         Columbia V6C 2V6 
	  
	               
                         
                         
                         
                         
                         
                         
                         
                         
             (the "Lender") 
	  
	AND: 
	               
                         
         ROCKWELL VENTURES INC., a British Columbia company,
      having 
	               
                         
         its chief executive office at Suite 1020, 800 West Pender
      Street, 
	               
                         
         Vancouver, BC V6C 2V6 
	  
	               
                         
                         
                         
                         
                         
                         
                         
                         
             (the "Borrower") 

BACKGROUND

A. The Lender has agreed to lend to the Borrower and the
Borrower has agreed to borrow from the Lender the aggregate principal amount of
$5,500,000 on the terms and subject to the conditions of this Agreement.

AGREEMENTS

For good and valuable consideration, the receipt and
sufficiency of which each party acknowledges, the parties agree as follows:

	1. 	
      Definitions. In this Agreement:

	 	 	 
		(a) 	
      "Advance" means the advance of the Loan
  hereunder;

	 	 	 
		(b) 	
      "Business Day" means a day which is not a Saturday,
      Sunday or a statutory holiday in British Columbia;

	 	 	 
		(c) 	
      "Event of Default" has the meaning set forth in paragraph
      11 below;

	 	 	 
		(d) 	
      "Exchange" means the TSX Venture Exchange;

	 	 	 
		(e) 	
      "Loan" means the $5,500,000 to be lent by the Lender to
      the Borrower pursuant to this Agreement;

	 	 	 
		(f) 	
      "Interest Payment Shares" has the meaning set forth in
      subparagraph 5 below;

	 	 	 
		(g) 	
      "N9C" means N9C Resources Inc, a Cayman Island company
      wholly-owned by the Borrower;

	 	 	 
		(h) 	
      "N10C" means N10 Resources Inc., a Cayman Island company
      wholly-owned by N9C;

	 	 	 
		(i) 	
      "Outstanding Balance" has the meaning set forth in
      subparagraph 4(a) below;

- 2 -

	 	(j) 	
      "Rockwell Resources South Africa" means Rockwell
      Resources RSA (Proprietary) Limited, a South African company wholly owned
      by N10C; and

	 	 	 
	 	(k) 	
      "Subsidiaries" means, with respect to the Borrower, any
      corporation of which at least a majority of the outstanding shares to
      which there is attached voting power under ordinary circumstances to elect
      a majority of the board of directors of such corporation, shall at the
      relevant time be owned directly or indirectly by the Borrower, one or more
      Subsidiaries of the Borrower, or any combination thereof, and "Subsidiary"
      shall mean any one of them.

	2. 	
      Loan Advance. Subject to and upon the fulfilment
      of the conditions precedent contained in paragraph 7 of this Agreement, as
      the case may be, the Lender will advance the principal amount of the Loan
      to the Borrower or as the Borrower may otherwise direct.

	 	 	 	 
	3. 	
      Use of Proceeds. The Borrower covenants and agrees
      with the Lender that the Loan proceeds will be used by the Borrower to
      fund its strategic acquisition and working capital requirements.

	 	 	 	 
	4. 	
      Term and Prepayment.

	 	 	 	 
		(a) 	
      The principal amount of each Advance, together with all
      accrued but unpaid interest, bonus and other costs or charges payable
      hereunder from time to time in connection with such Advance (collectively
      in respect of all Advances, the "Outstanding Balance"), will be
      immediately due and payable by the Borrower to the Lender on April 26,
      2007 (the “Repayment Date”).

	 	 	 	 
		(b) 	
      Notwithstanding paragraph (a) hereof, the Outstanding
      Balance, will be immediately due and payable by the Borrower to the Lender
      on the earlier of:

	 	 	 	 
			(i) 	
      the date of any change of control of the Borrower
      ("control" being defined as ownership of or control or direction over,
      directly or indirectly, 20% or more of the outstanding voting securities
      of the Borrower); or

	 	 	 	 
			(ii) 	
      the occurrence of an Event of Default, as defined in
      paragraph 11 hereof.

	 	 	 	 
		(c) 	
      If after the Initial Advance of the Loan, the Borrower or
      any of its Subsidiaries sell or otherwise dispose of any assets outside of
      the ordinary course of business, close one or more equity or debt
      financings, the Borrower will pay or cause to be paid to the Lender all
      proceeds from such sale, disposition or financing, net of legal fees,
      financing fees and any other actual out-of-pocket costs incurred by the
      Borrower in connection with such sale or financing, up to the full amount
      of the Outstanding Balance, to be applied on account of the Loan, after
      settlement of any amounts outstanding under the Quest Capital Corp. loan
      agreement.

	 	 	 	 
		(d) 	
      The Borrower may prepay the Loan or the Outstanding
      Balance in respect of the Advance, in either case in whole at any time
      before maturity, without notice or penalty, provided that such prepayment
      is made on the last Business Day of the calendar month and the Borrower
      has provided to a Lender not less than ten (10) Business Days’ prior
      written notice of its intention to prepay the Loan, after settlement of
      any amounts outstanding under the Quest Capital Corp. loan
    agreement.

- 3 -

	5. 	
      Interest. Interest will accrue on the Outstanding
      Balance from the date of advance at the rate of twenty percent (20%) per
      annum, calculated daily and compounded quarterly, and be payable by the
      Borrower to the Lender on the Repayment Date. Interest payable shall be
      payable in the form of common shares in the capital of the Borrower (the
      "Interest Payment Shares"), based upon the 10 day average closing price of
      the Borrower's common shares through the facilities of the Exchange
      immediately preceding such Repayment Date, less a 10% discount. Interest
      payable after maturity, default and judgment, if any, shall be payable to
      the Lender by certified cheque or bank draft. The Interest Payment Shares
      shall be subject to applicable resale restrictions Canadian securities
      legislation.

	 	 	 
	6. 	
      Security. As security for the repayment of the
      Loan the Borrower will execute and deliver to the Lender a promissory
      note, in the form attached as Schedule "A" hereto (the "Note"), together
      with personal guarantees provided by David Copeland, Ron Thiessen, Jeffrey
      Mason and Scott Cousens in the forms attached as Schedule “B” hereto, all
      in form and terms satisfactory to the Lender and its counsel (the
      "Security"). The Loan is otherwise unsecured and acknowledged by the
      Lender to be subordinate to prior ranking indebtedness owed by the
      Borrower.

	 	 	 
	7. 	
      Conditions Precedent to Advance. As conditions
      precedent to the Advance under the Loan by the Lender:

	 	 	 
		
      (a) 
	the Borrower will have:
	 	 	 
			
      (i) 
	executed and delivered or caused to be executed and
      delivered the promissory note referred to above ;
	 	 	 
			
      (ii) 
	received approval from the Exchange for the transactions
      contemplated herein, including the issuance of the Interest Payment Shares
      in respect of interest payments due or coming due hereunder; and
	 	 	 
			
      (iii) 
	delivered a certified copy of its and each relevant
      Subsidiary’s directors' resolutions authorizing the borrowing of the Loan,
      the grant of the Security and the execution and delivery of this Agreement
      and all agreements, documents and instruments referred to herein, together
      with an officer's certificate, certifying certain factual matters.
	 	 	 
			
      all in form and terms satisfactory to the Lender and its
      counsel;

	 	 	 
		(b)	
       the representations and warranties of the Borrower
      contained in paragraph 8 will be true and correct in all material respects
      and the Borrower will have complied with all covenants required to be
      complied with by it prior to the Initial Advance under the Loan by the
      Lender;

	 	 	 
		(c) 	
      there shall have been no adverse material change in the
      business, operations, assets or ownership of the Borrower or any of its
      Subsidiaries since the date of the Term Sheet;

	 	 	 
		(d) 	
      the Lender will have received the approval of its Board
      of Directors and completed and, in its sole and absolute discretion, be
      satisfied with its due diligence review of the Borrower and its
      Subsidiaries; and

- 4 -

	 	(e) 	
      the Lender will, in its sole and absolute discretion, be
      satisfied as to the creditworthiness of the Borrower and its Subsidiaries
      and the adequacy of the collateral security contemplated
  herein.

If any of the foregoing conditions precedent are not satisfied
or waived by the Lender in writing on or before January 26, 2007, this Agreement
will terminate, and the Lender will be under no further obligation to the
Borrower in connection with the transaction contemplated herein.

	8. 	
      Representations and Warranties. The Borrower
      represents and warrants to the Lender as follows:

	 	 	 
		(a) 	
      the Borrower exist as a company under the Business
      Corporations Act (British Columbia), has not discontinued or been
      dissolved under that Act and is in good standing with respect to the
      filing of annual reports thereunder;

	 	 	 
		(b) 	
      each of N9C and N10C exist as a company under the laws of
      the Cayman Islands, has not discontinued or been dissolved under those
      laws, and is in good standing with respect to the filing of any reports
      thereunder;

	 	 	 
		(c) 	
      Rockwell Resources South Africa exists as a company under
      the laws of the Republic of South Africa, has not discontinued or been
      dissolved under those laws, and is in good standing with respect to the
      filing of any reports thereunder;

	 	 	 
		(d) 	
      each of the Borrower and its Subsidiaries has the power
      and authority to (i) carry on its businesses as now being conducted and is
      licensed or registered or otherwise qualified in all jurisdictions where
      in the nature of its assets or the business transacted makes such
      licensing, registration or qualification necessary, (ii) acquire, own,
      hold, lease and mortgage or grant security in its assets including real
      property and personal property and (iii) enter into and perform its
      obligations under this Agreement and all other documents or instruments
      delivered hereunder;

	 	 	 
		(e) 	
      this Agreement and all ancillary instruments or documents
      issued, executed and delivered hereunder by the Borrower, has been duly
      authorized by all necessary action of the Borrower and each constitutes or
      will constitute a legal, valid and binding obligation of each, enforceable
      against the Borrower in accordance with their terms, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium and other similar laws
      affecting the rights and remedies of creditors and to the general
      principles of equity;

	 	 	 
		(f) 	
      neither the Borrower nor any Subsidiary is in breach of
      or in default under any material obligation in respect of borrowed money
      and the execution and delivery of this Agreement and all ancillary
      instruments or documents issued and delivered hereunder or thereunder, and
      the performance of the terms hereof and thereof will not be, or result in,
      a material violation or breach of, or default under the Borrower's or any
      Subsidiary's constating documents, any law, any judgment, agreement or
      instrument to which they are a party or may be bound;

	 	 	 
		(g) 	
      no litigation or administrative proceedings before any
      court or governmental authority are presently ongoing, or have been
      threatened in writing received by the Borrower, or to the best of the
      Borrower's knowledge are pending, against the Borrower or any Subsidiary
      or any of their respective properties or assets or affecting any of
      their

- 5 -

	 		
      properties or assets which could have a material adverse
      effect on their business, properties or assets;

	 	 	 
	 	(h) 	
      the audited annual consolidated financial statements for
      Borrower for the fiscal year ended May 31, 2006 and the quarterly
      financial statements for the fiscal periods ended August 31, 2006 and
      November 30, 2006, including the respective management's discussion and
      analysis publicly disclosed in connection therewith (collectively, the
      "Financial Statements"), fairly present the financial affairs of Borrower
      and its Subsidiaries as of the date to which they are made, and have been
      prepared in accordance with Canadian generally accepted accounting
      principles, consistently applied; except as may be otherwise specified in
      such financial statements or the notes thereto;

	 	 	 
	 	(i) 	
      the Borrower is in compliance, in all material respects,
      with its continuous disclosure obligations under applicable securities
      laws and, without limiting the generality of the foregoing, there has been
      no adverse material change (actual, contemplated or threatened) in the
      property, assets, business or operations of the Borrower or any of its
      Subsidiaries since the date of release of the Financial Statements, other
      than as publicly disclosed in writing by the Borrower prior to the date of
      this Agreement;

	 	 	 
	 	(j) 	
      the Borrower and its Subsidiaries are the legal and
      beneficial owners of or have the right to acquire the interests in the
      properties, business and assets referred to in the information circulars,
      prospectuses, annual information forms, offering memoranda, financial
      statements, material change reports and news releases filed with the
      Exchange and the Securities Commissions in those jurisdictions in which
      the Borrower is a reporting issuer on or during the twelve (12) months
      preceding the date hereof (collectively, the "Public Record"), and any and
      all agreements pursuant to which the Company holds or will hold any such
      interest in property, business or assets are in good standing in all
      material respects under the applicable statutes and regulations of the
      jurisdictions in which they are situated;

	 	 	 
	 	(k) 	
      the Public Record is complete and accurate in all
      material respects and omits no facts, the omission of which makes the
      Public Record, or any particulars therein, misleading, misrepresentative
      or incorrect in any material respect;

	 	 	 
	 	(l) 	
      the Borrower and its Subsidiaries have conducted and are
      conducting their respective businesses in material compliance with all
      applicable laws, bylaws, rules and regulations of each jurisdiction in
      which their businesses are now carried on and hold all licenses,
      registrations, permits, consents or qualifications (whether governmental,
      regulatory or otherwise) required in order to enable their businesses to
      be carried on as now conducted or as proposed to be conducted, and all
      such licenses, registrations, permits, consents and qualifications are
      valid and subsisting and in good standing and neither the Borrower nor any
      Subsidiary has received any notice of proceedings relating to the
      revocation or modification of any such licenses, registrations, permits,
      consents or qualifications which, if the subject of an unfavourable
      decision, ruling or finding, would materially adversely affect the
      condition of such businesses, operations, condition (financial or
      otherwise) or income of the Borrower or any Subsidiary;

	 	 	 
	 	(m) 	
      no order ceasing or suspending trading in securities of
      the Borrower or prohibiting the sale of securities by the Borrower has
      been issued and no proceedings for this
purpose

- 6 -

	 		
      have been instituted or, to the best of the knowledge of
      the Borrower, are pending, contemplated or threatened;

	 	 	 
	 	(n) 	
      neither Canada Revenue Agency nor any other taxation
      authority has asserted or, to the best of the Borrower's knowledge, has
      threatened to assert any assessment, claim or liability for taxes due or
      to become due in connection with any review or examination of the tax
      returns of the Borrower or any Subsidiary filed for any year which would
      have material adverse effect on the assets, properties, business, results
      of operations, prospects or condition (financial or otherwise) of the
      Borrower or any Subsidiary;

	 	 	 
	 	(o) 	
      neither the Borrower nor any Subsidiary is a party to any
      material contract other than as disclosed in the Public Record;

	 	 	 
	 	(p) 	
      the Borrower is a reporting issuer (where such concept
      exists) under the Securities Acts of British Columbia, Alberta and
      Ontario, and is in compliance with its material obligations under those
      Acts and under the rules, regulations and policies of the Exchange, and
      will use its best efforts to maintain such status, without default, from
      the date hereof until repayment in full of the Loan to the
  Lender;

	 	 	 
	 	(q) 	
      as at the date of this Agreement, except as disclosed in
      the Financial Statements, in any filings within any governmental body or
      securities regulatory authority or to the Lender in writing and as
      contemplated by this Agreement, no holder of outstanding shares in the
      capital of the Borrower will be entitled to any pre-emptive or any similar
      rights to subscribe for any of the shares in the capital of the Borrower
      or other securities of the Borrower, and no rights, warrants or options to
      acquire, or instruments convertible into or exchangeable for any shares in
      the capital of the Borrower are outstanding;

	 	 	 
	 	(r) 	
      upon issuance, the Interest Payment Shares will be duly
      and validly issued as fully paid non-assessable common shares in the
      capital of the Borrower;

	 	 	 
	 	(s) 	
      except as disclosed on the Public Record, the Borrower
      has no direct or indirect subsidiary corporations;

	 	 	 
	 	(t) 	
      except as disclosed to the Lender in writing prior to the
      date of this Agreement, the Borrower and all Subsidiaries own their
      respective business, operations and assets, as more particularly described
      in the Public Record, and hold good title thereto, free and clear of all
      liens, claims or encumbrances whatsoever;

	 	 	 
	 	(u) 	
      all factual information previously or contemporaneously
      furnished to the Lender by or on behalf of the Borrower for purposes of or
      in connection with this Agreement or any transaction contemplated hereby,
      is true and accurate in every material respect and such information is not
      incomplete by the omission of any material fact necessary to make such
      information not misleading;

	 	 	 
	 	(v) 	
      the Borrower and each Subsidiary is solvent and is
      generally able to pay its debts as they come due and will be able to do so
      after giving effect to the transactions contemplated in this Agreement;
      and

 

	 	(w) 	
      the chief executive, principal place of business and
      place where the Borrower and each Subsidiary keep their books and records
      is located at Suite 1020, 800 West Pender Street, Vancouver, BC V6C
      2V6.

- 7 -

	9. 	
      Positive Covenants of the Borrower. The Borrower
      covenants and agrees that so long as any monies will be outstanding under
      this Agreement, it will:

	 	 	 
		(a) 	
      at all times maintain its corporate existence and the
      corporate existence of all of its Subsidiaries;

	 	 	 
		(b) 	
      duly perform its obligations under this Agreement and all
      other agreements and instruments executed and delivered hereunder or
      thereunder;

	 	 	 
		(c) 	
      promptly pay when due all agency or finders' fees
      incurred by the Borrower that are payable in connection with the Loan or
      this Agreement and indemnify and save harmless the Lender from all claims
      in respect of any such fees;

	 	 	 
		(d) 	
      carry on and conduct its business in a proper
      business-like manner in accordance with good business practice and will
      keep or cause to be kept proper books of account in accordance with
      generally accepted accounting principles;

	 	 	 
		(e) 	
      at all times comply with all applicable laws, except such
      voluntary non-compliance as shall, in its good faith business judgment,
      not have a material adverse effect on the business of the Borrower or any
      Subsidiary, taken as a whole;

	 	 	 
		(f) 	
      pay and discharge promptly when due, all taxes,
      assessments and other governmental charges or levies imposed upon it or
      upon its properties or assets or upon any part thereof, as well as all
      claims of any kind (including claims for labour, materials and supplies)
      which, if unpaid, would by law become a lien, charge, trust or other
      claims upon any such properties or assets, provided however that the
      Borrower shall not be required to pay any such tax, assessment, charge or
      levy or claim if the amount, applicability or validity thereof shall
      currently be contested in good faith by appropriate proceedings and if the
      Borrower shall have set aside on its books the reserve the extent required
      by generally accepted accounting principles in an amount which is
      reasonably adequate with respect thereto;

	 	 	 
		(g) 	
      furnish and give to the Lender within three (3) Business
      Days of filing on SEDAR copies of all documents or instruments publicly
      filed by the Borrower on SEDAR, together with such other reports,
      certificates, updated financial statements, including monthly internal
      financial and operational reports and documents and such other information
      with respect to the Borrower or the Subsidiaries as the Lender may request
      from time to time during the term of this Agreement;

	 	 	 
		(h) 	
      provide the Lender with written notice of any proposed
      financing made by or to the Borrower concurrently with, but not prior to,
      public disclosure of such financing;

	 	 	 
		(i) 	
      furnish and give to the Lender (if such is the case)
      notice that an Event of Default has occurred and, if applicable, is
      continuing or notice in respect of any event which would constitute an
      Event of Default hereunder and specifying the nature of same;
and

	 	 	 
		(j) 	
      perform and do all such acts and things as are necessary
      to perfect and maintain the security provided to the Lender pursuant to
      this Agreement.

- 8 -

	10. 	
      Negative Covenants of the Borrower. The Borrower
      covenants and agrees with the Lender that the Borrower will not without
      first obtaining the written consent of the Lender:

	 	 	 
		(a) 	
      except as set forth in subparagraph (g) hereof or as
      contemplated in connection with the concurrent loan arrangements being
      undertaken by the Company with Quest Capital Corp., make, give, create or
      permit or attempt to make, give or create any mortgage, charge, lien or
      encumbrance over any assets of the Borrower or any Subsidiary (but greater
      certainty, the existing charges are acceptable to the Lender);

	 	 	 
		(b) 	
      change the name of the Borrower or any
  Subsidiary;

	 	 	 
		(c) 	
      allot and issue any new shares of any
  Subsidiary;

	 	 	 
		(d) 	
      in respect of itself or any Subsidiary, declare or
      provide for any dividends or other payments based on share
  capital;

	 	 	 
		(e) 	
      redeem or purchase any of its shares or the shares of any
      Subsidiary;

	 	 	 
		(f) 	
      make any sale of or dispose of any substantial or
      material part of its business, assets or undertaking, or that of any
      Subsidiary, including its interest in the shares or assets of any
      Subsidiary outside of the ordinary course of business;

	 	 	 
		(g) 	
      save and except for purchase money security interests,
      chattel mortgages, equipment leases entered into in the ordinary course of
      business, and inter-company loans between the Borrower and any of its
      Subsidiaries, borrow or cause any Subsidiary to borrow money from any
      person other than the Lender without first obtaining and delivering to the
      Lender a duly signed assignment and postponement of claim by such person
      in favour of the Lender, in form and terms satisfactory to the
    Lender;

	 	 	 
		(h) 	
      in respect of itself or any Subsidiary, pay out any
      shareholders loans or other indebtedness to non-arm's length parties;
      or

	 	 	 
		(i) 	
      in respect of itself or any Subsidiary, guarantee the
      obligations of any other person, directly or indirectly.

	 	 	 
	11. 	
      Events of Default. Each and every of the events
      set forth in this paragraph will be an event of default ("Event of
      Default"):

	 	 	 
		(a) 	
      if the Borrower fails to make any payment of principal or
      interest when due hereunder, and such failure continues for two (2)
      Business Days;

	 	 	 
		(b) 	
      if either the Borrower or any Subsidiary defaults in
      observing or performing any material term, covenant or condition of this
      Agreement or any other collateral document delivered hereunder or in
      connection with the Loan, other than the payment of monies as provided for
      in subparagraph (a) hereof, on its part to be observed or performed and
      such failure continues for five (5) Business Days;

	 	 	 
		(c) 	
      if the Borrower is in default of prescribed filings with
      applicable securities regulatory authorities, the stock exchange or market
      on which its shares trade (collectively, the

- 9 -

	 		
      "Authorities"), or is subject to any suspension in excess
      of two (2) trading days or cease trade order issued by any such
      Authority;

	 	 	 
	 	(d) 	
      if any of the Borrower's representations, warranties or
      other statements in this Agreement or any other collateral document
      delivered hereunder or in connection with the Loan were at the time given
      false or misleading in any material respect;

	 	 	 
	 	(e) 	
      if the Borrower defaults, in any material respect, in
      observing or performing any term, covenant or condition of any debt
      instrument or obligation by which it is bound;

	 	 	 
	 	(f) 	
      if the Borrower permits any sum which has been admitted
      as due by the Borrower, or is not disputed to be due by it, and which
      forms or is capable of being made a charge upon any of the assets or
      undertaking of the Borrower to remain unpaid or not challenged for 30 days
      after proceedings have been taken to enforce the same;

	 	 	 
	 	(g) 	
      if the Borrower, either directly or indirectly through
      any Subsidiary, ceases or threatens to cease to carry on
  business;

	 	 	 
	 	(h) 	
      if any order is made or issued by a competent regulatory
      authority prohibiting the trading in shares of the Borrower or if the
      Borrower's Common shares are suspended or de-listed from trading on any
      stock exchange;

	 	 	 
	 	(i) 	
      if, in the reasonable opinion of the Lender, an adverse
      material change occurs in the financial condition of the
  Borrower;

	 	 	 
	 	(j) 	
      if the Lender in good faith and on commercially
      reasonable grounds believes that the ability of the Borrower or any
      Subsidiary to pay any of the Outstanding Balance to the Lender or to
      perform any of the covenants contained in this Agreement or any other
      collateral agreement or other document is impaired or any security granted
      by the Borrower or any Subsidiary to the Lender is or is about to be
      impaired or in jeopardy;

	 	 	 
	 	(k) 	
      if the Borrower or any Subsidiary petitions or applies to
      any tribunal for the appointment of a trustee, receiver or liquidator or
      commences any proceedings under any bankruptcy, insolvency, readjustment
      of debt or liquidation law of any jurisdiction, whether now or hereafter
      in effect; or

	 	 	 
	 	(l) 	
      if any petition or application for appointment of a
      trustee, receiver or liquidator is filed, or any proceedings under any
      bankruptcy, insolvency, readjustment of debt or liquidation law are
      commenced, against the Borrower or any Subsidiary which is not opposed by
      the Borrower or any such Subsidiary in good faith, or an order, judgment
      or decree is entered appointing any such trustee, receiver, or liquidator,
      or approving the petition in any such
proceeding.

	12. 	
      Effect of Event of Default. If any one or more of
      the Events of Default occur or occurs and is or are continuing for a
      period of greater than 15 Business Days, the Lender may without limitation
      in respect of any other rights it may have in law or pursuant to this
      Agreement or any other document or instrument delivered hereunder, demand
      immediate payment of all monies owing
hereunder.

- 10 -

	13. 	
      Lender's Legal Fees. The Borrower will pay for the
      Lender's legal fees and other costs, charges and expenses (including due
      diligence expenses) of and incidental to the preparation, execution and
      completion of this Agreement and the security hereunder, as may be
      required by the Lender to complete this transaction, including in respect
      of any enforcement or collection process thereof. All amounts will be
      payable within 30 days of presentment of an invoice. If not paid within
      that time, such amount will be added to and form part of the principal
      amount of the Loan and shall accrue interest from such date as if it had
      been advanced by the Lender to the Borrower hereunder.

	 	 	 
	14. 	
      Indemnity. The Borrower agrees to indemnify and
      save harmless the Lender and each of its directors, officers, employees
      and agents from and against all liabilities, claims, losses, damages and
      reasonable costs and expenses in any way caused by or arising directly or
      indirectly from or in consequence of the occurrence of any Event of
      Default under this Agreement.

	 	 	 
	15. 	
      Notices. In this Agreement:

	 	 	 
		(a) 	
      any notice or communication required or permitted to be
      given under this Agreement will be in writing and will be considered to
      have been given if delivered by hand, transmitted by facsimile
      transmission or mailed by prepaid registered post to the address or
      facsimile transmission number of each party set out
  below:

	 	(i) 	if to the Lender: 	  
	 	  	  	  
	 	  	Amarc Resources Ltd. 
	 	 	Suite 1020-800 West
      Pender Street 
	 	  	Vancouver, BC 	V6C 3P1 
	 	  	  	  
	 	  	Attention: 	Bob Dickinson , Director 
	 	  	Fax No: 	(604) 684-8092 
	 	  	  	  
	 	(ii) 	if to the Borrower: 
	 	  	  	  
	 	  	Rockwell Ventures Inc. 
	 	 	Suite 1020, 800 West
      Pender Street 
	 	  	Vancouver, BC 	V6C 2V6 
	 	  	  	  
	 	  	Attention: 	David Copeland 
	 	  	Fax No: 	(604) 684 8092 

or to such other address or facsimile
transmission number as any party may designate in the manner set out above;
and

	 	(b) 	
      notice or communication will be considered to have been
      received:

	 	 	 	 
	 		(i) 	
      if delivered by hand during business hours on a Business
      Day, upon receipt by a responsible representative of the receiver, and if
      not delivered during business hours, upon the commencement of business on
      the next Business Day;

	 	 	 	 
	 		(ii) 	
      if sent by facsimile transmission during business hours
      on a Business Day, upon the sender receiving confirmation of the
      transmission, and if not transmitted

- 11 -

				during business hours, upon the commencement of business
      on the next Business Day; and
	 	 	 	 
			(iii) 	
      if mailed by prepaid registered post upon the fifth
      Business Day following posting; except that, in the case of a disruption
      or an impending or threatened disruption in postal services every notice
      or communication will be delivered by hand or sent by facsimile
      transmission.

	 	 	 	 
	16. 	
      Assignment. The Borrower acknowledges and agrees
      that the Lender may assign all or part of the Loan, this Agreement and all
      collateral agreements, documents or instruments delivered hereunder to one
      or more assignees, free from any right of set-off or counterclaim or
      equity, subject only to the Lender's notification of such assignment or
      assignments being given in writing to the Borrower.

	 	 	 	 
	17. 	
      Agreement to Pay. Upon receipt of written notice
      and direction from the Lender, the Borrower covenants and agrees to make
      all payments of interest, principal and structuring fees due under this
      Agreement to the Lender and any assignee, pro rata in accordance with
      their respective proportionate interests in the Loan as set out in such
      written notice and direction, absent which all such payments may be made
      to the Lender.

	 	 	 	 
	18. 	
      Enurement. This Agreement will enure to the
      benefit of and be binding upon the parties hereto and their respective
      successors and permitted assigns.

	 	 	 	 
	19. 	
      Waivers. No failure or delay on the Lender's part
      in exercising any power or right hereunder will operate as a waiver
      thereof.

	 	 	 	 
	20. 	
      Remedies are Cumulative. The Lender's rights and
      remedies hereunder are cumulative and not exclusive of any rights or
      remedies at law or in equity.

	 	 	 	 
	21. 	
      Time. Time is of the essence of this Agreement and
      all documents or instruments delivered hereunder.

	 	 	 	 
	22. 	
      Criminal Code Compliance. In this paragraph the
      terms "interest", "criminal rate" and "credit advanced" have the meanings
      ascribed to them in Section 347 of the Criminal Code (Canada) as amended
      from time to time. The Borrower and the Lender agree that, notwithstanding
      any agreement to the contrary, no interest on the Loan or the credit
      advanced by the Lender under this Agreement will be payable in excess of
      that permitted under the laws of Canada. If the effective rate of
      interest, calculated in accordance with generally accepted actuarial
      practices and principles, would exceed the criminal rate on the credit
      advanced, then:

	 	 	 	 
		(a) 	
      the elements of return which fall within the term
      "interest" will be reduced to the extent necessary to eliminate such
      excess;

	 	 	 	 
		(b) 	
      any remaining excess that has been paid will be credited
      towards prepayment of the Loan; and

	 	 	 	 
		(c) 	
      any overpayment that may remain after such crediting will
      be returned forthwith to the Borrower upon demand, and, in the event of
      dispute, a Fellow of the Canadian Institute of Actuaries appointed by the
      Lender will perform the relevant calculations and determine the
      reductions, modifications and credits necessary to effect the foregoing
      and

- 12 -

the same will be conclusive and binding on the parties. This
Agreement, the Note and all related agreements and documents will automatically
be modified to reflect such modifications without the necessity of any further
act or deed of the Borrower and the Lender to give effect to them.

	23. 	
      Invalidity. If at any time any one or more of the
      provisions hereof is or becomes invalid, illegal or unenforceable in any
      respect under any law, the validity, legality and enforceability of the
      remaining provisions hereof will not in any way be affected or impaired
      thereby to the fullest extent possible by law.

	 	 
	24. 	
      Governing Laws. This Agreement will be governed by
      and interpreted in accordance with the laws of the Province of British
      Columbia and the laws of Canada applicable therein. The Borrower submits
      to the non-exclusive jurisdiction of the Courts of the Province of British
      Columbia and agrees to be bound by any suit, action or proceeding
      commenced in such Courts and by any order or judgment resulting from such
      suit, action or proceeding, but the foregoing will in no way limit the
      right of the Lender to commence suits, actions or proceedings based on
      this Agreement in any jurisdiction it may deem appropriate.

	 	 
	25. 	
      Amendment. This Agreement supersedes the Term
      Sheet and all prior agreements and discussions between the parties with
      respect to the subject matter set forth herein. This Agreement may be
      varied or amended only by or pursuant to an agreement in writing signed by
      the parties hereto.

	 	 
	26. 	
      Schedules. All Schedules attached hereto will be
      deemed fully a part of this Agreement.

	 	 
	27. 	
      Currency. All references herein to "dollars" or
      "$" are to Canadian dollars, unless otherwise indicated.

	 	 
	28. 	
      Counterparts. This Agreement may be signed in one
      or more counterparts, originally or by facsimile, each such counterpart
      taken together will form one and the same
agreement.

TO EVIDENCE THEIR AGREEMENT each of the parties has executed
this Agreement on the date first above written.

	AMARC RESOURCES LTD. 	 
	 	 
	Per: 	 
	 	 
	Authorized Signatory 	 
	 	 
	 	 
	ROCKWELL VENTURES INC. 	 
	 	 
	Per: 	 
	 	 
	Authorized Signatory 	 

SCHEDULE "A"

PROMISSORY NOTE

Principal Amount: Cdn$5,500,000

For value received, ROCKWELL VENTURES INC. (the "Borrower")
hereby promises to pay TO AMARC RESOURCES LTD. (the "Lender") the principal sum
of FIVE MILLION FIVE HUNDRED THOUSAND CANADIAN DOLLARS (Cdn.$5,500,000) on the
earlier of:

	 	(a) 	
      April 26, 2007 (the “Repayment Date”);

	 	 	 
	 	(b) 	
      any change of control of the Borrower ("control" being
      defined as ownership of or control of direction over, directly or
      indirectly, 20% or more of the outstanding voting securities of the
      Borrower); and

	 	 	 
	 	(c) 	
      the occurrence of an Event of Default (as defined in the
      Loan Agreement between the Borrower and the Lender dated for reference
      January 26, 2007),

together with interest accruing on the outstanding principal
amount from the date hereof at a rate of TWENTY PERCENT (20%) per annum payable
by the Borrower to the Lender on the Repayment Date. Interest payable at the
Lender’s election in the form of common shares in the capital of the Borrower
(the "Interest Payment Shares"), based upon the 10 day average closing price of
the Borrower's common shares through the facilities of the Exchange, less a 10%
discount, immediately prior to such Repayment Date. Interest payable after
maturity, default and judgment, if any, shall be payable to the Lender by
certified cheque or bank draft. The Interest Payment Shares shall be subject to
applicable resale restrictions Canadian securities legislation..

The undersigned is entitled to prepay this promissory note, in
whole or in part, without notice or penalty. The undersigned waives demand and
presentment for payment, notice of non-payment, protest, notice of protest and
notice of dishonour. This promissory note will be governed by and construed in
accordance with the laws of British Columbia and the federal laws of Canada
applicable therein. In this promissory note, "Business Day" means a day which is
not a Saturday, Sunday or a statutory holiday in British Columbia.

Dated: January 26, 2007.

ROCKWELL VENTURES INC.

Per:

	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]