Document:

Exhibit
10.20

 

CERTAIN
CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL
AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

REAL
ESTATE OPTION AGREEMENT

 

This
Real Estate Option Agreement (“Agreement”) is made between Western Magnesium Corporation, a Delaware corporation (“Buyer”)
with an address at 3733 Howard Hughes Parkway-Suite 249, Las Vegas, Nevada 89169 and Harrison County Community Improvement Corporation,
an Ohio Corporation (“Seller”) with an address at 538 N. Main Street, Cadiz, OH 43907, as of the date of the last signature
on this Agreement (“Acceptance Date”).

 

RECITALS:

 

A.
Seller is the owner of the parcel of land (“Land”) comprising approximately 122 acres in the Village of Cadiz, Harrison County,
Ohio as further set forth on Exhibit A attached hereto and as further shown on the drawing attached hereto as Exhibit B (“Drawing”).

 

B.
Seller desires to grant to Buyer, and Buyer desires to receive from Seller, the exclusive right and option to purchase the Land, together
with all rights, fixtures, easements, rights-of-way, licenses, privileges and appurtenances thereunto belonging, and any right, title
and interest of Seller in and to the land lying within any adjoining street, alley, roadway or railroad right-of-way or any adjoining
strips and gores (collectively, “Property”), upon the terms and subject to the conditions hereinafter set forth. All patties
understand the Seller cannot convey oil and gas rights to the property due to lack of ownership.

 

NOW,
THEREFORE, in consideration of the mutual promises, agreements and covenants herein contained, Seller and Buyer agree as follows:

 

ARTICLE
I: OPTION TO PURCHASE PROPERTY

 

1.01
The Option. Seller gives and grants to Buyer the exclusive right and option (“Option”) to purchase the Property. The
Option shall remain in full force and effect until 5:00 P.M., E.S.T., on the date that is twenty four (24) months after the Acceptance
Date (“Termination Date”).

 

1.02
Manner of Exercise. The Option shall be exercisable by Buyer by the delivery of written notice to Seller on or before the Termination
Date. The failure of Buyer to exercise this Option shall not create any obligation or liability upon either Seller or Buyer.

 

1.03
Effect of Exercise of Option. Upon the exercise of the Option, Seller and Buyer shall be bound by an agreement for the sale and
purchase of the Property upon the te1ms and subject to the conditions set forth in this Agreement.

 

1.04
Option Consideration. In consideration for the grant of the Option, Buyer shall pay Seller the sum of $[***] (“Option Consideration”),
on or before that date occurring seven (7) days after the Acceptance Date. The Option Consideration shall be retained by Seller and non-refundable
to Buyer in the event that the Option is not exercised by Buyer.

 

1.05
Intended Use. Buyer intends to use the Property for the development, construction and operation of a magnesium extraction and
processing facility (“Intended Use”).

 

1.06
Seller Expenses. Buyer agrees to pay Seller expenses and legal fees to include title work to correct title defects. Buyer shall
pay Seller $[***] to be used as a retainer payable when the Option Consideration payment is made. If the retainer is depleted, Buyer
and Seller will discuss and establish an additional retainer.

 

    	1

     

    

 

ARTICLE
II: PURCHASE PRICE

 

2.01
Purchase Price. Buyer shall pay Seller a purchase price (“Purchase Price”) for the Property in the amount of $[***]
per acre, if and when they exercise the option to purchase.

 

ARTICLE
III: TITLE, SURVEY AND ENVIRONMENTAL AUDIT

 

3.01
Seller’s Information. Seller shall, within thirty (30) days after the Acceptance Date, deliver to Buyer all available information
pertaining to the Property, including but not limited to, existing title work, surveys, soil boring tests, environmental reports, engineering
feasibility studies, land use plans, plans and specifications, zoning permits, building permits, appraisals, inspection reports and utility
agreements, market studies and notices from governmental entities or agencies. Seller shall deliver this information to the extent the
above documents are prepared and available.

 

3.02
Evidence of Title. As evidence of title to the Property, Buyer shall obtain a commitment (“Commitment”) for the issuance
to Buyer of an ALTA Form B Owners Title insurance Policy (“Title Policy”) in an amount acceptable to Buyer, issued by a local
recognized title company (“Title Company”) acceptable to Buyer. The Commitment shall include legible copies of all documents
referred to as exceptions in the Commitment.

 

3.03
Survey. Buyer will obtain a survey of the Property (“Survey”) and a surveyor’s report in the form customarily
used by the Title Company, addressed to Buyer and the Title Company, both prepared by a licensed engineer or surveyor approved in advance
by the Title Company and Buyer. The Survey shall contain such items as may be required by Buyer or Title Company, including but not limited
to, the following: (i) a metes and bounds legal description of the Property based upon the Survey and showing the record legal description;
(ii) a computation of the gross number of acres (and the corresponding square feet and net useable square feet) contained therein for
the Property, and a computation of the acreage and square footage of all rights-of-way, flood plains, easement areas and other unbuildable
areas therein; (iii) the boundary lines of the Property, with all corners properly monumented, and showing the beatings and distances
in conformance with the legal description; (iv) the location of any structures or improvements and existing easements (with volume and
page reference), rights-of-way on or adjacent to the Property, utility lines (including water, sanitary sewer, storm sewer, gas, electric
and telephone) serving the Property, encroachments, conflicts and protrusions affecting the Property and set back lines; (v) the location
of all officially designated 100-year flood plains and flood prone areas, if any; (vi) the zoning use district in which the Property
are located; (vii) any physical evidence of occupation or use of the Property; and (viii) the names of all adjoining land owners and
the names of all providers of utilities. If subdivision approval is required in connection with the transfer and conveyance of the Property
then the Survey shall meet all subdivision requirements. The Survey shall also include a certificate certifying to Buyer and the Title
Company that the Survey was made by the surveyor on a certain date, made on the ground, that the Survey is a true, complete and accurate
representation of the Property, that there are no discrepancies, boundary line conflicts, encroachments, officially designated 100-year
flood plains or flood prone areas, power lines, easements, roads or rights-of-way except as shown on the Survey, and that the Survey
is made in accordance with the “Minimum Requirements for Land Title Surveys” adopted by ALTA and ACSM. The Survey shall be
sufficient to permit the Title Company to delete the standard survey exception in the Title Commitment.

 

3.04
Review and Approval of Commitment and Survey. Buyer shall have thirty (30) days after receipt of the last of the Commitment and
Survey to review and approve, or specify objections to, the Commitment and Survey. Seller shall use its best efforts to remove any such
objections to the Commitment and Survey within thirty (30) days thereafter. If Seller is unable to remove the objections within said
time pe1iod, then Buyer may (i) terminate this Agreement, (ii) extend the time for removing the objections, or (iii) waive the objections.
As used in this Agreement, the term “Permitted Exceptions’’ means any exceptions to the Commitment or Survey approved
in writing by Buyer.

 

    	2

     

    

 

3.05
Update of Commitment. At the Closing, the Commitment shall be updated with all exceptions to the title (including the general,
standard and preprinted exceptions) deleted except for the Permitted Exceptions, and with affirmative insurance that (i) all easements
appurtenant to the Property are not subject to any title exception except the Permitted Exceptions and such easements will not be terminated
or impaired if a tax foreclosure occurs; (ii) all separate parcels comprising the Property are contiguous and the Property are contiguous
to all appurtenant easements; and (iii) no improvements encroach on the Property and improvements intended to be located on the Property
does not encroach on setback lines, easements, or lands of others.

 

3.06
Environmental Audit. Buyer at its option may obtain an environmental report or site assessment (“Environmental Audit”)
of the Property from any registered engineer (“Engineer”) approved by Buyer. The Environmental Audit may include, at Buyer’s
option, any or all of the following: (i) a description of the scope of the Engineer’s investigation which includes (a) a search
and examination of the records of governmental agencies (local, state and federal) on environmental matters; (b) a physical inspection
of the Property to identify potential environmental problems (including but not limited to asbestos and underground storage tanks); (c)
a tour of the area around the Property to determine potential sources of environmental problems; (d) a review of the location of federal,
state and local hazardous waste sites in the vicinity and their effect on the Property; (e) interviews of employees of the Seller and
owners of land adjacent to the Property; and (f) a review of the proper ownership and use of the Property; and (ii) a written analysis
of the findings of the Engineer’s investigation in fom1 and substance satisfactory to Buyer.

 

3.07
Review and Approval of Environmental Audit. Buyer shall have thirty (30) days after the receipt of the Environmental Audit to
review and approve, or specify objections to, the Environmental Audit. If the Environmental Audit contains a recommendation that further
inspections or testing be performed, Buyer shall have the right to obtain such additional inspections or testing and Buyer shall have
thirty (30) days after the receipt of such additional inspections or testing to specify objections to the Environmental Audit. If Buyer
objects to any items, the Seller may, at Seller’s option, (i) notify Buyer that Seller will undertake such actions as may be required
to cure the objections, at Seller’s expense, and deliver evidence to Buyer that Seller has cured such objections; or (ii) elect
not to cure such objections. Seller shall notify Buyer within seven (7) days after receipt of Buyer’s objections of Seller’s
election. If Seller elects not to cure such objections, or if Seller cannot or does not cure such objections within thirty (30) days
after receipt of Buyer’s objections, then Buyer may (a) tem1inate this Agreement; (b) extend the time for removing the objections;
or (c) waive the objections and close the purchase of the Property in accordance with the other provisions of this Agreement. Buyer shall
notify Seller of Buyer’s election within seven (7) days after receipt of Seller’s notice.

 

ARTICLE
IV: SELLER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Seller
represents, warrants and agrees, as of the Acceptance Date and the Closing Date, as follows:

 

4.01
Organization, Authority and Enforceability. Seller is an improvement corporation duly organized, validly existing and in good
standing under the laws of the State of Ohio, Seller has the power and authority to execute, deliver and perform this Agreement and the
transactions contemplated hereby; Seller has taken all requisite action necessary to authorize the execution, delivery and performance
by Seller of this Agreement; and this Agreement constitutes a legal and binding obligations of Seller enforceable in accordance with
its terms.

 

    	3

     

    

 

4.02
No Conflict. The execution and delivery of this Agreement and the consummation of the transactions hereunder do not violate any
terms, provisions and conditions of any agreement or any decree, judgment, or other obligation binding upon Seller.

 

4.03
No Pending Litigation. There is no action or proceeding pending or, to the best of Seller’s knowledge, threatened which
will materially and adversely affect the Property or Seller’s ability to perform this Agreement.

 

4.04
Condemnation. There are no pending or, to the best of Seller’s knowledge, threatened condemnation, eminent domain or similar
proceedings or legislation affecting or relating to the Property, or any po1tion thereof, nor, to the best of Seller’s knowledge,
are any such proceedings contemplated by any governmental authority.

 

4.05
Assessments. Seller has not received notice of, nor does Seller have any knowledge of any proposed or actual assessments against
the Property relating to utilities, sewers, roadways or other improvements.

 

ARTICLE
V: CONDITIONS PRECEDENT

 

Buyer’s
obligations under this Agreement are subject to the satisfaction of each of the following conditions (“Conditions Precedent”).
Seller shall use its best efforts to fulfill any Condition(s) Precedent to be performed by Seller. In the event that any of the Conditions
Precedent are not satisfied on or before 5:00 P.M., E.S.T. on that date (“Contingency Date”) occurring sixty (60) days after
the date, if any, of Buyer’s exercise of the Option, Buyer may elect either: (a) to proceed toward the Closing of this transaction
regardless of the failure to satisfy said Condition Precedent, in which case the Closing shall constitute a waiver by Buyer of said Condition
Precedent; or (b) to notify Seller that all of the Conditions Precedent have not been satisfied or waived and that, therefore, Buyer
desires not to close this transaction, in which event this Agreement and all obligations of Seller and Buyer hereunder shall be terminated,
and Seller shall retain the Option Consideration.

 

5.01
Commitment and Survey. Buyer shall have reviewed and approved the Commitment and the Survey.

 

5.02
Environmental Audit. Buyer shall have reviewed and approved the Environmental Audit.

 

5.03
Uncured Breach. There shall be in existence no uncured breach of any representation or warranty of Seller and no uncured default
of any covenant or agreement of Seller set forth in this Agreement.

 

5.04
Engineering Feasibility. Buyer shall have approved the results of any soil boring tests or engineering feasibility studies of
the Property.

 

5.05
Utility Availability. Buyer shall have received such assurances as it may require that electricity, water, natural gas, sanitary
and storm sewers (or other appropriate drainage systems), fire protection, telephone and any other necessary utilities or services required
for the Intended Use of the Property are available, in sufficient quantities, and at a cost or expense acceptable to Buyer.

 

5.06
Permits. Buyer shall be satisfied that Buyer can obtain in due course all permits or approvals necessary to the completion of
construction, occupancy and operation of the Property in accordance with the Intended Use.

 

    	4

     

    

 

5.07
Subdivision Approvals. Seller shall have obtained all necessary parcel transfer and subdivision approvals required for the conveyance
and transfer of the Property to Buyer. Buyer shall have obtained assurances that the Buyer may obtain any fu1iher parcel transfer and
subdivision approvals required for the Intended Use.

 

5.08
Assessments. Buyer shall have obtained and approved a written confirmation from the governmental agency or agencies having jurisdiction
over the taxation of the Property that the Property is not subject to any special or general assessments, other than Approved Assessments
(as hereinafter defined).

 

5.09
Board of Directors: Exercise of Option. Buyer shall have obtained the approval of Buyer’s Board of Directors, and Buyer
shall have exercised the Option.

 

5.10
Economic Incentives and Tax Abatements. Buyer shall have obtained or be satisfied that Buyer can obtain in due course all economic
incentives and tax abatements with the Village of Cadiz, County of Harrison and the State of Ohio required for the feasibility of the
Intended Use.

 

ARTICLE
VI: CLOSING

 

6.01
Closing. The Closing (“Closing”) of the sale and purchase of the Property shall be held not later than thirty (30)
days after the earlier of the Contingency Date or the date of satisfaction or waiver of all Conditions Precedent by Buyer (“Closing
Date”), at a time and place agreed upon by the Seller and Buyer.

 

6.02
Conveyance and Possession. At the Closing, Seller shall convey to Buyer a good and marketable fee simple title to the Property
by executing and delivering to Buyer a transferable and recordable general warranty deed (“Deed”), subject only to Permitted
Exceptions and to taxes and the installments of Approved Assessments not yet due and payable.

 

6.03
Property Taxes. Seller shall pay (or have paid) in full (i) all ad valorem property taxes (both real and personal) due and payable
as of the Closing, (ii) all assessments against the Property other than those assessments approved by Buyer (“Approved Assessments”)
and (iii) all installments of Approved Assessments due and payable on or before Closing.

 

All
ad valorem property taxes (both real and personal) and Approved Assessments due and payable after the Closing Date shall be prorated
as of the Closing Date with Seller paying for that portion of the calendar year through the day before the effective date of Closing
and Buyer paying the remaining portion. If the actual amount of said taxes and Approved Assessments is not known on the Closing Date,
the same shall be prorated on the basis of the last available tax rate and valuation as shown on the County Auditor’s tax duplicate,
and shall be adjusted between the parties when the actual amount of said taxes is known.

 

In
addition, Seller shall pay any agricultural use recoupment charges or other recoupment charges which become payable on or after the Closing
Date.

 

6.04
Possession. Seller shall deliver exclusive possession of the Property to Buyer at Closing.

 

6.05
Closing Costs. Seller shall pay the following costs and expenses: (i) all applicable transfer taxes and conveyance fees; (ii)
the cost of recording releases of any mortgages given by Seller; (iii) the costs of recording title correction documents; (iv) delinquent
taxes and installments of Approved Assessments; (v) assessments against the Property that are not Approved Assessments; (vi) Seller’s
share of taxes and assessments on and after the Closing, as set forth in Section 6.03; (vii) Seller’s share of recoupment charges,
if any; and (viii) one-half (l/2) of the charges of the Escrow Agent, if any. Buyer shall pay (i) the recording fees for the Deed; (ii)
all title insurance costs; (iii) the cost of the Survey and Environmental Audit, if any; (iv) one-half (1/2) of the charges of the Escrow
Agent, if any, (v) the costs of correcting title defects

 

    	5

     

    

 

6.06
Closing Items to be Delivered by Seller. Seller shall deliver the following items at Closing: (i) the Deed; (ii) an affidavit
complying with Section 1445 of the Internal Revenue Code that Seller is not a foreign person or, in lieu thereof, Buyer may withhold
from the Purchase Price such amounts as may be required to comply with such law; (iii) such documents as may reasonably be requested
by Buyer and the Title Company to evidence Seller’s authority to execute and perform this Agreement and all documents required
hereunder; (iv) such authority and indemnity agreements as may be required by the Title Company to delete the general, standard or preprinted
exceptions to the Title Commitment; and (v) such other documents as may be required hereunder or reasonably requested by Buyer.

 

6.07
Closing Items to be Delivered by Buyer. Buyer shall deliver the following items at Closing: (i) the Purchase Price in accordance
with Section 2.01; and (ii) such other documents as may be required hereunder or reasonably requested by Seller.

 

ARTICLE
VII: DEFAULT AND REMEDIES

 

7.01
Default by Seller. If Seller defaults hereunder or fails to perform its obligations hereunder or if any representation, warranty
or agreement of Seller is breached, then Buyer shall be entitled (i) sue Seller in law or equity for specific performance; (ii) terminate
this Agreement; and/or (iii) proceed in law or equity to recover damages or pursue any other remedy available to Buyer of law or in equity.

 

7.02
Default by Buyer. If Buyer defaults hereunder, Seller shall be entitled to retain the Option Consideration as full and complete
liquidated damages.

 

ARTICLE
VIII: INTENTIONALLY DELETED 

 

ARTICLE
IX: MISCELLANEOUS

 

9.01
Broker. Seller and Buyer each represents and warrants to the other that neither has engaged or consulted with any real estate
broker, agent or salesman. Seller and Buyer shall each defend, indemnify and hold the other ha1mless from any claims, losses, liabilities,
expenses and commissions payable by reason of such party’s breach of such representation and warranty.

 

9.02
Cooperation and Access. At any time after the Acceptance Date, Buyer shall have the right and power to make application for such
changes, pe1mits and approvals as may, in Buyer’s sole discretion, be necessary for the Intended Use of the Property. Seller agrees,
at no cost to Seller, to cooperate with Buyer and execute any such applications which may be required by the authorities having jurisdiction
thereof. At any time after the Acceptance Date, Buyer shall have access to the Property during normal business hours, for the purpose
of inspecting the Property, conducting soil boring tests, water tests and other feasibility and environmental studies, and undertaking
such other studies and tests as Buyer deems necessary or desirable for the Intended Use of the Property.

 

9.03
Notices. Any notice to be given hereunder shall be in writing. All notices shall be personally delivered, or sent certified mail,
return receipt requested, postage prepaid, or sent by a nationally recognized overnight courier to the recipient’s address set
forth in the introductory paragraph of this Agreement. Notices shall be deemed to have been given on the earlier or actual receipt or
three (3) days after deposit with the U.S. mail or the overnight courier.

 

    	6

     

    

 

9.04
Assignment. This Agreement may be assigned by Buyer to any assignee approved by Seller which approval will not be unreasonably
withheld. The term “Buyer” includes any assignee of Buyer. Any Buyer hereunder shall be released from all liabilities hereunder
upon assigning this Agreement and giving written notice of the assignment to Seller.

 

9.05
Confidentiality. Seller shall not, without the prior written consent of the Buyer, disclose this Agreement or any of the terms
of this Agreement to any third party.

 

9.06
Memorandum of Option. At the election of Buyer, the parties shall execute and record a memorandum of this Agreement and/or of
the Option not later than three (3) days after the Acceptance Date.

 

9.07
Risk of Loss. Subject to Article 11, all risk of loss, destruction or damage to the Property prior to completion of the Closing
shall be borne by Seller.

 

9.08
Miscellaneous. No representations, warranties or promises pertaining to this Agreement, the Property have been made by, or shall
be binding upon, either Seller or Buyer, except as expressly stated herein. This Agreement shall be binding and inure to the benefit
of Seller’s and Buyer’s respective successors and assigns. All representations, warranties, covenants and indemnities of
Seller hereunder shall survive the Closing and shall not be merged into the conveyance of the Property by execution, delivery and recording
of the Deed. The headings contained herein are for the convenience of reference only, and are not to be used in interpreting this Agreement.
This Agreement shall be construed and enforced pursuant to the laws of the State of Ohio. No amendments or variations of the terms and
conditions of this Agreement shall be valid unless the same are in writing and signed by all parties hereto. This Agreement may be executed
in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one document.
Time is of the essence in this Agreement.

 

[Signature
page follows.]

 

    	7

     

    

 

IN
WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the dates below indicated, through their respective duly authorized
representatives.

 

	 	BUYER:
	 	 	 
	 	Western
    Magnesium Corporation
	 	 	 
	 	By:	/s/
    Sam Ataya
	 	Name:	Sam
    Ataya
	 	Title:	Executive
    President & CEO
	 	 	 
	 	Dated:
    	August
    2, 2021
	 	 	 
	 	SELLER:
	 	 	 
	 	Harrison
    County Community Improvement Corporation
	 	 	 
	 	By:	/s/
    Dale Arbaugh
	 	Name:	Dale
    Arbaugh
	 	Title:	President
	 	Dated:	8-4-2021

 

    	8

     

    

 

EXHIBITS

 

	Exhibit
    A 	–
    	             Legal
    Description
	Exhibit
    B 	-
    	             Drawing

 

    	9

     

    

 

Exhibit
A

 

Legal
Description

 

[To
be attached upon completion of the title commitment.]

 

    	10

     

    

 

Exhibit
B

 

Drawing

 

[***]

 

    	11Exhibit
10.21

 

CERTAIN
CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL
AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

INTERNALY
HEATED LAB FURNACE FABRICATION AGREEMENT

 

THIS
AGREEMENT (the “Agreement”) is made and entered into this 24 day of July, 2020 by and between Industrial Surplus Ltd.,
located at [***], (hereinafter referred to as “ISL”), and Western Magnesium Corp., located at Suite 9, 580 Hornby
Street, Vancouver, British Columbia, Canada, V6C 386, (hereinafter referred to as the “Company” or “WMG”).

 

Whereas:

 

For
and consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows:

 

1.
DEFINITIONS

 

	 	a.	Definitions;
    When used in this Agreement (including the Recitals and any Schedules hereto) or any amendment hereto, the following terms shall,
    unless otherwise expressly provided or the context otherwise requires, have the following meanings, respectively:
	 	b.	“Confidential
    Information” means all information, know-how and records (whether or not confidential and no matter in what form held)
    including (without prejudice to the generality of the foregoing) all formulae, designs, specifications, drawings, data, manuals and
    instructions and all technical or other information or expertise and all computer software and all correspondence, orders and enquiries
    whether tangible or intangible; and however stored, compiled or memorialized, physically, photographically, in writing or otherwise,
    and notwithstanding anything to the contrary, all Project Results will be deemed to be Confidential Information until it becomes
    part of the public domain, other than by breach of this Agreement, or without any third party breaching confidentiality obligations
    owed by the third party.
	 	c.	“Enhancement”
    means any present or future corrections, modifications, additions, upgrades, variations, revisions, improvements, derivatives
    or enhancements.
	 	d.	“Intellectual
    Property” means, in relation to the Project and Project Results any (existing or future) patents, trademarks and service
    marks, trade secrets, rights in designs, ideas, inventions and innovations, trade or business names, copyrights, topography rights,
    know-how, moral rights, rights in works of authorship, {whether or not any of these is registered and including applications for
    registration, renewals, extensions, continuations, divisions or reissues of any such thing) and rights under licenses and consents
    in relation to any such thing and all rights or forms of protection having equivalent or similar effect to any of these which may
    subsist anywhere in the world and including any such rights existing in any Confidential Information;
	 	e.	“Project
    Results” means any or any portion of reports, studies, analysis, documents, user manuals, drawings, specifications, trade
    secrets, methods, algorithms, charts, know-how and all other tangible or electronic work created by a Party in the course of the
    Project; and know-how, ideas, processes, improvements, discoveries, designs, trade-marks, formulas, manufacturing techniques, trade
    secrets, artwork, graphics, software, software source documents, works of authorship or any other copyright or patentable works solely
    or jointly with others, creates, makes, conceives or reduces to practice in the course of performing its obligations under this Agreement,
    and shall include any Intellectual Property therein and all Enhancements of or to any of the foregoing.;
	 	f.	“Clauses,
    Headings, etc.” Sections and Clauses are to Sections and Clauses of this Agreement. Where the context requires references
    to the singular include the plural and vice versa.

 

    	 

     

    

 

2
PRINCIPLES

 

	 	a.	This
    agreement does not constitute or imply a partnership and accordingly no Party will have authority to act for or assume any obligations
    on behalf of the other Parties or the right or ability to bind the other Party except as specifically conferred pursuant to and in
    accordance with the terms of this Agreement and nothing contained herein will be construed as creating an agency between the Parties.
	 	b.	The
    Project Results and Intellectual Property generated from the Project or created as a result of consultation: not for resale to third
    parties and solely the ownership of WMG.

 

3
SERVICE

 

ISL
as an independent contractor will provide its services to construct a prototype internally heated testing lab furnace as per the furnace
designs, drawings and consultations provided from WMG for the eventual testing 1 a magnesium production process, and ISL does hereby
accept its position as an independent contractor to the Company upon the terms and conditions hereinafter set forth within this agreement.

 

	 	 	a.	It
    is further understood by WMG that ISL may engage sub-contractors during the term of this agreement, to assist in the performance
    of its duties and obligations, as described in Section 3 herein.

 

4
TERM

 

ISL
will endeavor to complete the furnace build by December 31, 2020 and will apply their experience and knowledge in performance of their
task(s) as professionals in good faith.

 

5
DUTIES AND OBLIGATIONS OF ISL

 

	 	 	a.	ISL
    will review and analyze the furnace designs provided by the Company and fabricate the lab furnace.
	 	 	b.	ISL
    may engage sub-contractors with the understanding those sub-contractors will be compensated by ISL from the initial stock compensation
    received from WMG unless previously discussed and approved by WMG in order to achieve the desired outcome.
	 	 	c.	ISL
    also agrees that any consultant or subcontractors will be subject to the same non- disclosure obligations as ISL.
	 	 	d.	WMG
    will provide as needed, additional technical expertise to assist ISL during the fabrication.
	 	 	e.	Owing
    to the presence of unknown variables, no warranty, guarantees implied or otherwise are provided for this work by ISL and the use
    of the equipment provided is at the risk of the user.

 

    	Page 2 of 7

     

    

 

6
COMPENSATION

 

For
the services listed herein, ISL will be paid up to CAD$200,000 in cash or the issuance of common shares of WMG currently listed on the
TSX Venture Exchange (TSX-V.WMG) as compensation for the services rendered by ISL under this agreement. The number of shares to be issued
will depend on market closing price as at the date of issuance. The number of Shares issued will not be issued below $0.05 CDN and is
subject to a twelve (12) month plus one day hold period from the date of issuance.

 

Any
extraordinary additional expenses will be considered only upon prior consultation and written notice to and approved by WMG. Share issuances
are subject to a hold period of 4 months plus one day from the date of issuance. Payments will be made against invoices submitted.

 

7
COMPANY’S DUTIES AND OBLIGATIONS

 

Company
shall have the following duties and obligations under this Agreement:

 

	 	 	a.	Cooperate
    fully and timely with ISL so as to enable ISL to perform its obligations under this Agreement.
	 	 	b.	The
    Company will act diligently and promptly confirm designs submitted to ISL and inform ISL of any design changes prior to the procurement
    of materials needed for the changes.
	 	 	c.	Promptly
    give written notice to ISL of any change in the Company’s financial condition or in the nature of its business or operations
    which had or might have an adverse material effect on its operations, assets, properties or prospects of its business.
	 	 	d.	The
    Company will be responsible for all pre-approved additional extraordinary expenses incurred by ISL under the provisions of this Agreement.

 

8
LIABILITY

 

	 	 	a.	Exclusion.
    THE PARTIES ACKNOWLEDGE AND AGREE THAT EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF
    ANY KIND, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, OWNERSHIP AND FITNESS FOR A PARTICULAR PURPOSE, RESPECTING THIS AGREEMENT,
    THE PROJECT RESULTS, THE EXPLOITABLE TECHNOLOGY AND THE WORK RELATING TO ITS OBLIGATIONS UNDER THIS AGREEMENT.
	 	 	b.	Exclusion
    of Indirect Damages. Notwithstanding anything in this Agreement, neither Party, its affiliates, nor their directors, officers, employees,
    agents or independent contractors (excluding the other party) will be liable to the other Party for any indirect, special, incidental,
    punitive or consequential loss or damages, even if such party has been informed of the possibility thereof.
	 	 	c.	Indemnity.
    Each Party will indemnify, defend and hold the other Party harmless from and against any and all losses, damages, claims, penalties,
    fees, fines, proceedings, liabilities, obligations, actions, causes of action, suits, debts, dues, accounts, demands, expenses or
    costs (including reasonable legal costs) (each a “Claim”) that the other Party, its affiliates or any of their directors,
    officers, employees, agents or independent contractors (excluding the respective other Party) may have, suffer or incur, including
    any third-party Claim, that arises from, is connected with or relates to any act or omission of the respective Party, including without
    limitation, breach of this Agreement, willful misconduct or negligence (“Indemnification”), however no Indemnification
    can be claimed in any event of a slight degree of negligence.

 

    	Page 3 of 7

     

    

 

	 	 	d.	No
    Personal Liability. Under no circumstance shall the shareholders, directors, officers or employees of a Party, or any other person
    or persons who may be the shareholders, directors, officers or employees of a Party from time to time, have any personal liability
    arising from or in connection with any provision of this Agreement.

 

9
CONFIDENTIALITY

 

	 	 	a.	Disclosure
    to Other Party. In the course of undertaking the Project and thereafter, on the terms and conditions hereof, each of the Parties
    will disclose Confidential Information to the other, in consideration ISL and its employees or sub-contractors hired by ISL agrees
    to the following;

 

	 	 	i.	not
    to disclose any Confidential Information other than as permitted under this Agreement;
	 	 	ii.	to
    use the Confidential Information only for the purpose of completing the Project (“the Permitted Purpose”);
	 	 	iii.	not
    to disclose the Confidential Information to anyone other than to such of its officers and employees as are strictly necessary for
    the Permitted Purpose and to professional advisers or consultants engaged to advise in connection with the Permitted Purpose, unless
    otherwise permitted by this agreement; and
	 	 	iv.	To
    procure that any person who is given access to any Confidential Information shall comply with the terms of this agreement as if it
    had given the obligations herein to the same extent as to both Parties.

 

	 	 	b.	Non-Disclosure.
    ISL will not disclose any of the Confidential or Proprietary Information to any third party without the WMG’s prior written
    authorization.
	 	 	c.	Exclusion.
    Clauses 9(a) and 9(b) above shall not apply in respect of any Confidential Information if:

 

	 	 	i.	it
    is or becomes public knowledge other than as a result of the information being disclosed in breach of this agreement;
	 	 	i.	the
    recipient can establish that it received the information from a source not connected with the party disclosing such Confidential
    Information and that the source is not under any obligation of confidence in respect of such information;
	 	 	ii.	the
    recipient can establish that such information was known by it before the date of this agreement and that it was not under any obligation
    of confidence in respect of such information; or

 

	 	 	d.	Duties
    upon Termination. ISL having received Confidential Information must, after the termination of this Agreement or promptly upon
    the written request of the WMG, return all information or confirm in writing that it has to the best of its knowledge destroyed or
    permanently erased all Confidential Information supplied to it and all copies thereof (including copies provided the third parties
    under the terms of this Clause) or the persons to whom the Confidential Information has been disclosed are, required to keep by law.
    The parties shall cooperate in identifying Confidential Information which is to be destroyed or permanently erased and where appropriate
    waiving the strict application of the obligation to destroy or erase confidential information which is trivial, or unlikely to pose
    a danger to WMG’s business interests by its continued existence.
	 	 	e.	Permitted
    Disclosure. A Party may disclose Confidential Information to the extent required by:

 

	 	 	i.	any
    order of any court of competent jurisdiction or any competent judicial, governmental or regulatory body;

 

    	Page 4 of 7

     

    

 

	 	 	ii.	the
    rules of any listing authority or stock exchange on which the shares of WMG are listed or traded; or

 

10
PERSONNEL

 

	 	 	a.	Nondisclosure
    Agreements. Prior to performing any portion of the obligations under this Agreement, Lindon will have sub-contractors and any
    other person who will perform any of the works related thereto, sign a nondisclosure agreement, in form and substance to this agreement.

 

11
INTELLECTUAL PROPERTY RIGHTS

 

	 	 	a.	Existing
    Intellectual Property. WMG will remain the owner of all Intellectual Property as is existing on the date hereof (“Existing
    IP”).
	 	 	b.	New
    Intellectual Property (“New IP”). All right, title and interest in and to any New IP, including any Project Results
    and Exploitable Technologies relating thereto, and including inventions during the development of the project will be the property
    of WMG for their own use.

 

12
PROTECTION OF KNOWLEDGE

 

	 	 	a.	Protection.
    Where any Intellectual Property relating to the Project and created under this Agreement is capable of industrial or commercial
    application, its creator shall provide for its adequate and effective protection, in conformity with relevant legal provisions, included
    in this Agreement.
	 	 	b.	Infringements
    by third parties. In the event that Lindon finds any illegal exploitation of the Project Results by a third party, it shall inform
    the WMG without delay. WMG shall decide on appropriate action to stop the illegal use by the third party, including but not limited
    to initiation of court proceedings against such illegal user.
	 	 	c.	Publicity.
    Lindon acknowledges that WMG is a publicly traded company and as such, has obligations to disclose information regarding the
    progress of the project and its results to the public and to regulators. WMG will be the only Party responsible for the disclosure
    of information as it sees necessary.

 

13
REPRESENTATIONS AND WARRANTIES

 

	 	 	a.	Each
    Party represents and warrants to the respective other Party, and acknowledges and confirms that it is relying upon such other Party’s
    representations and warranties in entering into this Agreement, that:

 

	 	 	i.	it
    will perform its obligations under this Agreement with due skill and care in accordance with the industry standards prevailing;
	 	 	ii.	it
    has the requisite power, authority and approvals to enter into, execute and deliver this Agreement and to perform its obligations
    under this Agreement.

 

14
DURATION, TERMINATION

 

	 	 	a.	Duration.
    It is mutually recognized that the duration of the Project may be subject to change and that unforeseen events may occur by either
    Party, the contemplated time period for the Project as defined in Clause 4, are only good faith guidelines subject to adjustment
    by mutual agreement to accommodate for unforeseen or extenuating circumstances as the scope of works proceeds. In the event of Termination
    for default, WMG will retain all IP, drawings, designs and reports developed.

 

    	Page 5 of 7

     

    

 

	 	 	b.	Termination
    for default. WMG may terminate this Agreement with immediate effect by 10 days written notice to ISL unless an Event of Default
    (as defined hereunder) has occurred.
	 	 	c.	Event
    for Default on the part of a Party shall have occurred,

 

	 	 	i.	if
    such Party enters into liquidation, whether compulsorily or voluntarily, other than for the purpose of amalgamation or reconstruction,
    or a petition in bankruptcy is filed by or against such Party in any competent court; or
	 	 	ii.	if
    the other Party is adjudicated bankrupt or insolvent or if the other ceases to do business, or otherwise terminates its business
    operations.

 

Death
or departure of a person responsible for the Project does not constitute an Event of Default, but the Parties acknowledge that if a key
individual departs or dies, a suitable replacement or replacements with the same or nearly the same caliber and expertise should be recruited
as soon as practicable, to ensure the smooth running of the Project.

 

15
MISCELLANEOUS

 

	 	 	a.	Amendments
    to agreement. The terms herein stipulated may not be modified in any way without the consent of each Party in writing.
	 	 	b.	Assignment.
    No right or obligation related to this Agreement shall be directly or indirectly assigned or transferred by ISL by operation
    of law or otherwise except as specifically provided for herein or with the prior written permission of the WMG.
	 	 	c.	Workers
    Compensation. ISL will be responsible for its own coverage and will comply in all respect with all applicable workers’
    compensation legislation.
	 	 	d.	Notices.
    Notices under this Agreement shall be sent by registered mail or email with a return receipt request or delivered by hand, return
    receipt requested to the address of either Party as set out first herein unless changed by written notice.
	 	 	e.	Independent
    Entities, No Partnership. The relationship of the Parties to this Agreement is that of independent entities and not as agents
    of each other or partners.
	 	 	f.	Waivers.
    No waiver of any one provision of this Agreement will constitute a waiver of any other provision (whether similar or not}, nor
    will such waiver constitute a continuing waiver or subsequent waiver unless otherwise expressly provided.
	 	 	g.	Counterparts.
    This Agreement may be executed in counterpart and such counterparts together shall constitute a single instrument. Delivery of
    an executed counterpart of this Agreement by electronic means, including by facsimile transmission or by electronic delivery in portable
    document format (“.pdf’), shall be equally effective as delivery of a manually executed counterpart hereof.

 

16
APPLICABLE LAW and DISPUTE RESOLUTION

 

	 	 	a.	Legal
    Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws in force in Canada, Province of British
    Columbia (“Applicable Law”).

 

17
ISL’S REPRESENTATIONS AND WARRANTIES

 

	 	 	d.	ISL
    represents and warrants to the Company for the purpose of inducing the Company to enter into and consummate this Agreement as follows:

 

	 	 	i.	ISL
    has the power and authority to execute, deliver and perform under this Agreement.

 

    	Page 6 of 7

     

    

 

	 	 	ii.	The
    execution and delivery by ISL of this Agreement have been duly and validly authorized by all requisite action by ISL. No license,
    consent or approval of any form is required for ISL’s execution and delivery of this Agreement.
	 	 	iii.	ISL
    will not disseminate any documentation or statements concerning the Company unless approved by the Company,

 

Both
Parties understand that this agreement is subject to approval by the TSX Venture Exchange.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the day and year as follows:

 

CONFIRMED
AND AGREED ON THIS 24 DAY OF JULY, 2020.

 

	Industrial
    Surplus Ltd.	 
	 	 
	By:	/s/
    Don Stirling	 
	 	Duly
    Authorized, Don Stirling President	 
	 	 	 
	WESTERN
    MAGNESIUM CORP.	 
	 	 	 
	By:
    	/s/
    Edward Leee	 
	 	Duly
    Authorized 	 
	 	Edward
    Lee, 	 
	 	Executive
    Chairman	 

 

    	Page 7 of 7

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