Document:

<PAGE>

                                                                   EXHIBIT 10.60

                         EXECUTIVE EMPLOYMENT AGREEMENT

         This Executive Employment Agreement dated as of October 11, 2004, is
between Allis-Chalmers Corporation and Theodore F. Pound III. Certain
capitalized terms used herein are defined in Section 1 below.

                                R E C I T A L S:

         A. Company wishes to employ Executive, and Executive desires to accept
employment with Company, by entering into a written agreement to specify the
terms and conditions of Executive's continued employment with Company;

         B. Executive is to be employed as General Counsel, and shall be an
integral member of its management team;

         C. Company considers the maintenance of a sound management team,
including Executive, essential to protecting and enhancing its best interests
and those of its stockholders;

         D. Company recognizes that the possibility of a change in control of
Company may result in the departure or distraction of management to the
detriment of Company and its stockholders; and

         E. Company has determined that appropriate steps should be taken to
obtain and retain the continued attention and dedication of selected members of
Company's management team to their assigned duties without the distraction
arising from the possibility of a change in control of Company.

         NOW, THEREFORE, in consideration of Executive's past and future
employment with Company and other good and valuable consideration, the parties
agree as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, the following terms
will have the following meanings:

                  (a) AGREEMENT refers to the Executive Employment Agreement
         represented by this document.

                  (b) CAUSE has the meaning ascribed to it in Section 7(a)(ii).

                  (c) CHANGE IN CONTROL means:

                            (i) The acquisition after the date hereof by any
                   individual, entity or group, or a Person (within the meaning
                   of Section 13(d)(3) or 14(d)(2) of the Exchange Act) other
                   than an Excluded Person, of ownership of more than 50% of
                   either: (i) the then outstanding shares of Common Stock
                   ("Outstanding Common Stock"); or (ii) the combined voting
                   power of the then outstanding voting securities of the
                   Company entitled to vote generally in the election of
                   directors ("Outstanding Voting Securities");

<PAGE>

                             (ii) Individuals who, as of the date hereof,
                   constitute the Board of Directors of the Company ("Incumbent
                   Board") cease for any reason to constitute at least a
                   majority of the Board; provided, however, that any individual
                   becoming a director subsequent to the date hereof whose
                   election, or nomination for election by the Company's
                   stockholders, was approved by a vote of at least a majority
                   of the directors then comprising the Incumbent Board shall be
                   considered as though such individual were a member of the
                   Incumbent Board, but excluding, as a member of the Incumbent
                   Board, any such individual whose initial assumption of office
                   occurs as a result of either an actual or threatened election
                   contest (as such terms are used in Rule 14a-11 of Regulation
                   14A promulgated under the Securities Exchange Act of 1934) or
                   other actual or threatened solicitation of proxies or
                   consents by or on behalf of a Person other than the Board;

                            (iii) Approval by the stockholders of the Company of
                   a reorganization, merger or consolidation, in each case,
                   unless, following such reorganization, merger or
                   consolidation, (i) more than 50% of, respectively, the then
                   outstanding shares of common stock of the corporation
                   resulting from such reorganization, merger or consolidation
                   and the combined voting power of the then outstanding voting
                   securities of such corporation entitled to vote generally in
                   the election of directors is then beneficially owned,
                   directly or indirectly, by all or substantially all of the
                   individuals and entities who were the beneficial owners,
                   respectively, of the Outstanding Common Stock and Outstanding
                   Voting Securities immediately prior to such reorganization,
                   merger or consolidation, in substantially the same
                   proportions as their ownership, immediately prior to such
                   reorganization, merger or consolidation of the Outstanding
                   Common Stock and Outstanding Voting Securities, as the case
                   may be, or at least a majority of the members of the board of
                   directors of the corporation resulting from such
                   reorganization, merger or consolidation were members of the
                   Incumbent Board at the time of the execution of the initial
                   agreement providing for such reorganization, merger or
                   consolidation; or

                            (iv) Approval by the stockholders of the Company of
                   (i) a complete liquidation or dissolution of the Company or
                   (ii) the sale or other disposition of all or substantially
                   all of the assets of the Company, other than to a
                   corporation, with respect to which following such sale or
                   other disposition, (1) more than 50% of, respectively, the
                   then outstanding shares of common stock of such corporation
                   and the combined voting power of the then outstanding voting
                   securities of such corporation entitled to vote generally in
                   the election for directors is then beneficially owned,
                   directly or indirectly, by all or substantially all of the
                   individuals and entities who were the beneficial owners,
                   respectively, of the Outstanding Common Stock and Outstanding
                   Voting Securities immediately prior to such sale or other
                   disposition in substantially the same proportion as their

                                       2
<PAGE>
                   ownership, immediately prior to such sale or other
                   disposition, of the Outstanding Common Stock and Outstanding
                   Voting Securities, as the case may be; or (2) at least a
                   majority of the members of the board of directors of such
                   corporation were members of the Incumbent Board at the time
                   of the execution of the initial agreement or action of the
                   Board providing for such sale or other disposition of assets
                   of the Company.

                  (d) CODE means the Internal Revenue Code of 1986, as amended.

                  (e) COMMENCEMENT DATE has the meaning ascribed to it in
         Section 4.

                  (f) COMPANY means Allis-Chalmers Corporation.

                  (g) CONFIDENTIAL INFORMATION has the meaning ascribed to it in
         Section 9(b).

                  (h) CONSTRUCTIVELY TERMINATED with respect to an Executive's
         employment with Company will be deemed to have occurred if Executive
         terminates his employment within six months following the date on which
         Company:

                           (i) demotes Executive to a lesser position, either in
                  title or responsibility, than the highest position held by
                  Executive with Company at any time during Executive's
                  employment with Company after the date hereof unless the
                  Company reverses such demotion within 30 days after receiving
                  written notice of such demotion from Executive;

                           (ii) decreases Executive's salary below the highest
                  level in effect at any time during Executive's employment with
                  Company or reduces Executive's benefits and perquisites below
                  the highest levels in effect at any time during Executive's
                  employment with Company (other than as a result of any
                  amendment or termination of any Executive or group or other
                  executive benefit plan, which amendment or termination is
                  applicable to all executives of Company or any reduction in
                  benefits that Company cures within 30 days after receiving
                  written notice of such reduction from Executive);

                           (iii) requires Executive to relocate to a principal
                  place of business more than 50 miles from the principal place
                  of business occupied by Company on the date hereof, unless the
                  Company reverses such relocation within 30 days after
                  receiving written notice of Executive's intention to terminate
                  his employment in reliance on this Section;

                           (iv) is subject to a Change In Control, unless
                  Executive accepts employment with a successor to Company; or

                                       3
<PAGE>

                           (v) breaches any other material term of this
                  Agreement which is not cured by Company within 30 days after
                  receiving notice of such breach from Executive.

                  (i) DESIGNATED INDUSTRY has the meaning ascribed to it in
         Section 10(a)(i)(1).

                  (j) DETERMINATION has the meaning ascribed to such term in
         Section 1313(a) of the Code.

                  (k) DISABILITY with respect to Executive shall be deemed to
         exist if he meets the definition of disability under the terms of the
         Company's current long-term disability policy (or any replacement
         long-term disability policy). Any refusal by Executive to submit to a
         reasonable medical examination to determine whether Executive is so
         disabled shall be deemed conclusively to constitute evidence of
         Executive's disability.

                  (l) EXECUTIVE refers to Theodore F. Pound III.

                  (m) EXCLUDED PERSON means any Person who beneficially owns
         more than 10% of the outstanding shares of the Company's Common Stock
         at any time prior to the date hereof and any person who acquires from
         Energy Spectrum Partners LP shares constituting more than 10% of the
         outstanding shares of the Company's Common Stock on the date of
         acquisition.

                  (n) INCENTIVE PLAN means the Allis-Chalmers Corporation 2003
         Incentive Stock Plan, as amended from time to time.

                  (o) INVENTIONS has the meaning ascribed to it in Section 8(a).

                  (p) SALARY has the meaning ascribed to it in Section 5(a).

                  (q) SEPARATION PAYMENT PERIOD has the meaning ascribed to it
         in Section 7(b)(ii).

                  (r) SEPARATION PAYMENTS has the meaning ascribed to it in
         Section 7(b)(ii).

         SECTION 2. EMPLOYMENT. Company hereby employs Executive, and Executive
hereby accepts employment by Company, upon the terms and subject to the
conditions hereinafter set forth.

         SECTION 3. DUTIES. Executive shall be employed as the General Counsel
of the Company. Executive agrees to devote substantially all of his business
time as is necessary to perform his duties attendant to his executive position
with Company. Executive shall be allowed to engage in other activities as an
investor as well as participate in activities of charitable organizations of his
choice so long as they do not materially interfere with his duties for Company.

                                       4
<PAGE>

         SECTION 4. TERM. The term of employment of Executive hereunder shall
commence on the date of this Agreement and terminate three years hence.

         SECTION 5. COMPENSATION AND BENEFITS. In consideration for the services
of Executive hereunder, Company shall compensate Executive as follows (except as
set forth herein, Executive acknowledges payment in full of all amounts due to
him for services rendered prior to the date hereof):

                  (a) SALARY. Company shall pay Executive, semi-monthly in
         arrears with its normal payroll procedures, a salary which is
         equivalent to an annual rate of $180,000 (the "Salary"). The Salary may
         not be decreased at any time during the term of Executive's employment
         hereunder and shall be reviewed no less than annually by Company. Any
         increase in the Salary shall be in the sole discretion of the
         Compensation Committee of the Board of Directors of the Company.

                  (b) MANAGEMENT INCENTIVE BONUS. Executive shall be entitled to
         receive a bonus equal to a maximum of 50% of his Salary based upon the
         performance of the duties set forth in Schedule A attached hereto
         (which shall be amended each year in the discretion of the Company).
         Such bonus shall be paid annually within 30 days after the completion
         of the Company's audited financial statements for each year. Executive
         shall also be eligible to receive from Company such annual management
         incentive bonuses as may be provided in management incentive bonus
         plans adopted from time to time by Company.

                  (c) STOCK OPTIONS In addition, the Compensation Committee of
         the Company has approved and recommended that the Board of Directors
         approve the grant to Executive of options to purchase 50,000 shares of
         the Company's Common Stock pursuant to the Incentive Plan. The exercise
         price for the options shall be equal to the fair market value of the
         Company's Common Stock on the date the options are approved by the
         Board of Directors, and the options shall vest and become exercisable
         as follows: one-third (16,666 2/3) shall vest on the date of grant and
         one-third (16,666 2/3) shall vest on each of October 11, 2005 and
         October 11, 2006 (provided Executive is employed by the Company on such
         dates).

                  (d) VACATION. Executive shall be entitled to three (3) weeks
         paid vacation per year. Unless otherwise approved by the Compensation
         Committee of the Board of Directors of the Company, a maximum of ten
         days accrued vacation not taken in any calendar year shall be carried
         forward and may be used in the next subsequent calendar year. Executive
         shall schedule his paid vacation to be taken at times which are
         reasonably and mutually convenient to both Company and Executive.

                  (e) INSURANCE BENEFITS. Company shall provide accident,
         health, dental, disability and life insurance for Executive under the
         group accident, health, dental, disability and life insurance plans as
         may be maintained by Company for its full-time, salaried Executives
         from time to time.

                                       5
<PAGE>

                  (f) OFFICE SPACE AND EXPENSES. Company shall provide and pay
         the expenses of maintaining an office for Executive during the term of
         this Agreement.

                  (g) ASSISTANT EXPENSES. Company shall assume and pay all
         salary and benefits of an Assistant to Executive.

         SECTION 6. EXPENSES. The parties anticipate that in connection with the
services to be performed by Executive pursuant to the terms of this Agreement,
Executive will be required to make payments for travel, entertainment of
business associates and similar expenses. Company shall reimburse Executive for
all reasonable expenses of types authorized by Company and incurred by Executive
in the performance of his duties hereunder, consistent with past practices.
Executive shall comply with such reporting requirements with respect to expenses
as Company may establish from time to time.

         SECTION 7. TERMINATION.

                  (a) GENERAL. Executive's employment hereunder shall commence
         on the Commencement Date and continue until the end of the term
         specified in Section 4, except that the employment of Executive
         hereunder shall terminate prior to such time in accordance with the
         following:

                           (i) DEATH OR DISABILITY. Upon the death of Executive
                  during the term of his employment hereunder or, at the option
                  of Company, in the event of Executive's Disability, upon 30
                  days' notice to Executive.

                           (ii) FOR CAUSE. For "Cause" immediately upon written
                  notice by Company to Executive. A termination shall be for
                  Cause if:

                                    (1) Executive commits a criminal act
                           involving dishonesty or moral turpitude; or

                                    (2) Executive commits a material breach of
                           any of the covenants, terms and provisions hereof or
                           fails to obey written directions delivered to
                           Executive by the Company's President or Chief
                           Executive Officer which are not inconsistent with
                           Executive's rights under this Agreement.

                           (iii) WITHOUT CAUSE. Without Cause upon notice by the
                  Board of Directors to Executive or upon notice by Executive to
                  the Board if Executive has been Constructively Terminated.

                  (b) SEVERANCE PAY.

                           (i) TERMINATION UPON DEATH OR DISABILITY OR FOR
                  CAUSE. Executive shall not be entitled to any severance pay or
                  other compensation upon termination of his employment pursuant
                  to Section 7(a)(i) or (ii) except for his Salary earned but
                  unpaid as of the date of termination, unpaid expense
                  reimbursements under Section 6 for expenses incurred in
                  accordance with the terms hereof prior to termination, and
                  compensation for accrued, unused vacation as of the date of
                  termination.

                                       6
<PAGE>

                           (ii) TERMINATION WITHOUT CAUSE. In the event
                  Executive's employment hereunder is terminated pursuant to
                  Section 7(a)(iii), Company shall pay Executive Separation
                  Payments as Executive's sole remedy in connection with such
                  termination. "Separation Payments" are payments made at the
                  semi-monthly rate of Executive's then current salary in effect
                  immediately preceding the date of termination. Separation
                  Payments shall be made for the lesser of one year following
                  termination of employment or the remaining term of this
                  Agreement (the "Separation Payment Period"), and shall be paid
                  by Company in equal semi-monthly payments in arrears or in
                  accordance with its then-current normal payroll procedure,
                  provided that Company's obligation to make Separation Payments
                  shall be reduced by any amounts earned by Executive for
                  services during the Separation Payment Period. Company shall
                  also pay Executive his Salary earned but unpaid as of the date
                  of termination, unpaid expense reimbursements under Section 6
                  for expenses incurred in accordance with the terms hereof
                  prior to termination, and compensation for accrued, unused
                  vacation as of the date of termination.

         SECTION 8. INVENTIONS; ASSIGNMENT.

                  (a) INVENTIONS DEFINED. All rights to discoveries, inventions,
         improvements, designs and innovations (including all data and records
         pertaining thereto) that relate to the business of Company, whether or
         not patentable, copyrightable or reduced to writing, that Executive may
         discover, invent or originate during the term of his employment
         hereunder, and for a period of six months thereafter, either alone or
         with others and whether or not during working hours or by the use of
         the facilities of Company ("Inventions"), shall be the exclusive
         property of Company. Executive shall promptly disclose all Inventions
         to Company, shall execute at the request of Company any assignments or
         other documents Company may deem necessary to protect or perfect its
         rights therein, and shall assist Company, at Company's expense, in
         obtaining, defending and enforcing Company's rights therein. Executive
         hereby appoints Company as his attorney-in-fact to execute on his
         behalf any assignments or other documents deemed necessary by Company
         to protect or perfect its rights to any Inventions.

                  (b) COVENANT TO ASSIGN AND COOPERATE. Without limiting the
         generality of the foregoing, Executive hereby assigns and transfers to
         Company the worldwide right, title and interest of Executive in the
         Inventions. Executive agrees that Company may apply for and receive
         patent rights (including Letters Patent in the United States) for the
         Inventions in Company's name in such countries as may be determined
         solely by Company. Executive shall communicate to Company all facts
         known to Executive relating to the Inventions and shall cooperate with
         Company's reasonable requests in connection with vesting title to the
         Inventions and related patents exclusively in Company and in connection
         with obtaining, maintaining and protecting Company's exclusive patent
         rights in the Inventions.

                                       7
<PAGE>

                  (c) SUCCESSORS AND ASSIGNS. Executive's obligations under this
         Section 8 shall inure to the benefit of Company and its successors and
         assigns and shall survive the expiration of the term of this Agreement
         for such time as may be necessary to protect the proprietary rights of
         Company in the Inventions.

         SECTION 9. CONFIDENTIAL INFORMATION.

                  (a) ACKNOWLEDGMENT OF PROPRIETARY INTEREST. Executive
         acknowledges the proprietary interest of Company in all Confidential
         Information. Executive agrees that all Confidential Information learned
         by Executive during his employment with Company or otherwise, whether
         developed by Executive alone or in conjunction with others or
         otherwise, is and shall remain the exclusive property of Company.
         Executive further acknowledges and agrees that his disclosure of any
         Confidential Information will result in irreparable injury and damage
         to Company.

                  (b) CONFIDENTIAL INFORMATION DEFINED. "Confidential
         Information" means all confidential and proprietary information of
         Company, including without limitation (i) information derived from
         reports, investigations, experiments, research and work in progress,
         (ii) methods of operation, (iii) market data, (iv) proprietary computer
         programs and codes, (v) drawings, designs, plans and proposals, (vi)
         marketing and sales programs, (vii) client lists, (viii) historical
         financial information and financial projections, (ix) pricing formulae
         and policies, (x) all other concepts, ideas, materials and information
         prepared or performed for or by Company and (xi) all information
         related to the business, products, purchases or sales of Company or any
         of its suppliers and customers, other than information that is publicly
         available.

                  (c) COVENANT NOT TO DIVULGE CONFIDENTIAL INFORMATION. Company
         is entitled to prevent the disclosure of Confidential Information. As a
         portion of the consideration for the employment of Executive and for
         the compensation being paid to Executive by Company, Executive agrees
         at all times during the term of his employment hereunder and thereafter
         to hold in strict confidence and not to disclose or allow to be
         disclosed to any person, firm or corporation, other than to his
         professional advisors (who have the obligation to maintain the
         confidentiality of such information) and to persons engaged by Company
         to further the business of Company, and not to use except in the
         pursuit of the business of Company, the Confidential Information,
         without the prior written consent of Company.

                  (d) RETURN OF MATERIALS AT TERMINATION. In the event of any
         termination or cessation of his employment with Company for any reason,
         Executive shall promptly deliver to Company all documents, data and
         other information derived from or otherwise pertaining to Confidential
         Information. Executive shall not take or retain any documents or other
         information, or any reproduction or excerpt thereof, containing or
         pertaining to any Confidential Information.

                                       8
<PAGE>

         SECTION 10. NONCOMPETITION.

                  (a) Until termination of Executive's employment hereunder,
         Executive shall not do any of the following:

                           (i) engage directly or indirectly, alone or as a
                  shareholder, partner, director, officer, Executive of or
                  consultant to any other business organization, in any business
                  activities that:

                                    (1) relate to the oil and gas drilling
                           services industry (the "Designated Industry"); or

                                    (2) were either conducted by Company prior
                           to the termination of Executive's employment
                           hereunder or proposed to be conducted by Company at
                           the time of such termination;

                           (ii) approach any customer or supplier of Company in
                  an attempt to divert it to any competitor of Company in the
                  Designated Industry; or

                           (iii) solicit or encourage any employee or Executive
                  of Company to end his relationship with Company or commence
                  any such relationship with any competitor of Company.

                  (b) Executive's noncompetition obligations hereunder shall not
         preclude Executive from owning less than five percent of the common
         stock of any publicly traded corporation conducting business activities
         in the Designated Industry. If at any time the provisions of this
         Section 10 are determined to be invalid or unenforceable by reason of
         being vague or unreasonable as to area, duration or scope of activity,
         this Section 10 shall be considered divisible and shall be immediately
         amended to only such area, duration and scope of activity as shall be
         determined to be reasonable and enforceable by the court or other body
         having jurisdiction over the matter, and Executive agrees that this
         Section 10 as so amended shall be valid and binding as though any
         invalid or unenforceable provision had not been included herein.

         SECTION 11. GENERAL.

                  (a) NOTICES. All notices and other communications hereunder
         shall be in writing or by written telecommunication, and shall be
         deemed to have been duly given upon delivery if delivered personally or
         via written telecommunication, or five days after mailing if mailed by
         certified mail, return receipt requested or by written
         telecommunication, to the relevant address set forth below, or to such
         other address as the recipient of such notice or communication shall
         have specified to the other party in accordance with this Section
         11(a):

                                       9
<PAGE>

        If to Company, to:                 with a copy to:

        Allis-Chalmers Corporation         Joseph P. Bartlett
        7660 Woodway, Suite 200            Greenberg Glusker Fields Claman
        Houston, Texas  77063                Machtinger & Kinsella LLP
                                           1900 Avenue of the Stars, 21st Floor
                                           Los Angeles, CA  90067

         If to Executive, to the last address for Executive appearing on the
         Company's records

                  (b) WITHHOLDING. All payments required to be made to Executive
         by Company under this Agreement shall be subject to the withholding of
         such amounts, if any, relating to federal, state and local taxes as may
         be required by law.

                  (c) EQUITABLE REMEDIES. Each of the parties hereto
         acknowledges and agrees that upon any breach by Executive or Company of
         his or its obligations hereunder, Company and Executive shall have no
         adequate remedy at law and accordingly shall be entitled to specific
         performance and other appropriate injunctive and equitable relief.

                  (d) SEVERABILITY. If any provision of this Agreement is held
         to be illegal, invalid or unenforceable, such provision shall be fully
         severable, and this Agreement shall be construed and enforced as if
         such illegal, invalid or unenforceable provision never comprised a part
         hereof, and the remaining provisions hereof shall remain in full force
         and effect and shall not be affected by the illegal, invalid or
         unenforceable provision or by its severance herefrom. Furthermore, in
         lieu of such illegal, invalid or unenforceable provision, there shall
         be added automatically as part of this Agreement a provision as similar
         in its terms to such illegal, invalid or unenforceable provision as may
         be possible and be legal, valid and enforceable.

                  (e) WAIVERS. No delay or omission by either party in
         exercising any right, power or privilege hereunder shall impair such
         right, power or privilege, nor shall any single or partial exercise of
         any such right, power or privilege preclude any further exercise
         thereof or the exercise of any other right, power or privilege.

                  (f) COUNTERPARTS. This Agreement may be executed in multiple
         counterparts, each of which shall be deemed an original, and all of
         which together shall constitute one and the same instrument.

                  (g) CAPTIONS. The captions in this Agreement are for
         convenience of reference only and shall not limit or otherwise affect
         any of the terms or provisions hereof.

                  (h) REFERENCE TO AGREEMENT. Use of the words "herein,"
         "hereof," "hereto," "hereunder" and the like in this Agreement refer to
         this Agreement only as a whole and not to any particular section or
         subsection of this Agreement, unless otherwise noted.

                                       10
<PAGE>

                  (i) BINDING AGREEMENT. This Agreement shall be binding upon
         and inure to the benefit of the parties and shall be enforceable by the
         personal representatives and heirs of Executive and the successors and
         assigns of Company. This Agreement may be assigned by the Company or
         any Company to any Company or, subject to Section 7(b)(iii), to any
         successor to all or substantially all of the Company's business as a
         result of a merger, consolidation, sale of stock or assets, or similar
         transaction; provided that in the event of any such assignment, the
         Company shall remain liable for all of its obligations hereunder and
         shall be liable for all obligations of all such assignees hereunder. If
         Executive dies while any amounts would still be payable to him
         hereunder, such amounts shall be paid to Executive's estate. This
         Agreement is not otherwise assignable by Executive.

                  (j) ENTIRE AGREEMENT. This Agreement contains the entire
         understanding of the parties, supersedes all prior agreements and
         understandings relating to the subject matter hereof and may not be
         amended except by a written instrument hereafter signed by each of the
         parties hereto.

                  (k) GOVERNING LAW. This Agreement and the performance hereof
         shall be construed and governed in accordance with the laws of the
         State of Texas, without regard to its choice of law principles.

                  (l) GENDER AND NUMBER. The masculine gender shall be deemed to
         denote the feminine or neuter genders, the singular to denote the
         plural, and the plural to denote the singular, where the context so
         permits.

         EXECUTED as of the date and year first above written.

                                            Allis-Chalmers Corporation

                                        By /S/ Munawar H. Hidayatallah
                                           ------------------------------
                                             Munawar H. Hidayatallah, Chief
                                             Executive Officer

                                             EXECUTIVE

                                             /S/ Theodore F. Pound III
                                             ----------------------------
                                             Theodore F. Pound III

                                       11
<PAGE>

                                   SCHEDULE A

                                     DUTIES

1.       Documentation for acquisitions.

2.       Play an important role in the due diligence process for acquisitions.

3.       Assume the role of Corporate Secretary and handle the Board minutes.

4.       Prepare SEC disclosure documents, with the assistance of outside
         counsel as necessary.

5.       Assist in the review of press releases.

6.       Reduce outside counsel fees for the above to less than $50,000 per
         year.

7.       Work with our CFO in implementing necessary corporate governance and
         internal control measures.

8.       Respond to and handle outside claims or litigation, with the assistance
         of outside counsel as necessary.

9.       Handle all routine contractual arrangements and agreements.

10.      Review bank agreements.

11.      Assist in assembling and reviewing personnel and corporate policies.<PAGE>

                                                                    EXHIBIT 10.1

RESTATEMENT OF PURCHASE OPTION AGREEMENT-REPUBLIC OF PANAMA CONCESSIONS

THIS Restatement of Purchase Option Agreement - Republic of Panama Concessions
(hereinafter, "POA") is entered into effective this 15th day of September, 2004,
by and between the following parties:

Calais Resources, Inc., A British Columbia corporation with its headquarters in
Colorado, USA
8400 East Crescent Parkway #675
Greenwood Village, CO 80111 (hereinafter, "Calais"); and

Panama Mining of Golden Cycle, a corporation of Panama
1337 West 5th Street
Marysville, OH 43040 (hereinafter "PMGC"); and

Golden Cycle of Panama Mining
1337 West 5th Street
Marysville, OH 43040 (hereinafter "GCPM")

("PMGC" and "GCPM" known together as the "Panama parties"); and

(and all parties together known as the "Parties" hereto);

      WHEREAS PMGC and GCPM are the concession holders as to certain placer
concessions in the Republic of Panama, including one placer exploitation
concession, multiple placer exploration concessions, including marine placer
concessions, (together, the "placer concessions"), and applications for hardrock
exploration concessions and hardrock exploration concessions ("hardrock
applications and concessions"), which properties together are known as the Faja
de Oro Project ("Faja de Oro Project") in the Province of Veraguas (the hardrock
concessions and hardrock concession applications, together with a map of the
concession areas, are attached and incorporated as Exhibit A hereto, and further
described at Section 4 hereof); and

                                        1
<PAGE>

      WHEREAS the parties entered into a Purchase Option Agreement for the
hardrock concessions on October 6, 2000, and for the placer concessions on
December 31, 2001, which agreements were superseded in their entirety by a
certain Purchase Option Agreement dated February 28, 2003; and which February
28, 2003 Purchase Option Agreement was extended for a period of 210 days by a
certain Extension Purchase Option Agreement and Partial Acknowledgement of
Performance dated January 31, 2004; and

      WHEREAS the parties entered into an interim Purchase Option Agreement on
or about September 5, 2004 intended to be replaced by a more thorough and
inclusive replacement agreement; and

      WHEREAS the parties wish to enter into a new Purchase Option Agreement
superseding in its entirety the prior agreements, which agreement shall be
substituted in full for all of the prior agreements, including, but not limited
to, the interim Purchase Option Agreement of September 5, 2004;

      NOW THEREFORE in consideration of certain payments made by Calais by and
on behalf of PMGC and GCPM pursuant to the interim agreement, and in further
consideration of the agreement by Calais to vend certain assets to PMGC and
GCPM, and to surrender its option to explore, operate and obtain title to the
placer concessions, and in further consideration of the mutual promises and
covenants of the parties, the receipt and adequacy of which are hereby
acknowledged and confirmed; the parties enter into the following Agreement:

1. Surrender of Placer Concessions and Deposits.

      Calais does hereby agree to surrender any and all options or agreements
which it may have had in and to explore, develop, operate and mine, and/or to
acquire title to the placer concessions which were part of the Faja de Oro
Project, Republic of Panama. Calais shall

                                        2
<PAGE>

execute such other documents as may be required to fully affect the surrender of
rights under the laws of the Republic of Panama, or to evidence such surrender
of contract rights under the laws of the State of Colorado. Calais shall retain
no rights to receive or to obtain royalties or payments from the placer
concessions.

2. Surrender of "Tin Goose" Boat.

      Calais purchased a certain ocean-going boat and related and appurtenant
fixtures known generally as the "Tin Goose." Calais has paid for repairs and
berthing of the boat in the past, but shall be liable for no further costs and
expenses, or any attendant liabilities, unless specifically outlined in the
Interim Agreement and specifically re-stated here. Calais shall take all acts
necessary to surrender and transfer any title it may have in and to the Tin
Goose to PMGC under the applicable laws of the Republic of Panama. The following
liabilities or costs attributable to Calais are restated here: None.

      PMGC and GCPM for their part hereby agree to accept any and all
liabilities associated with the acquisition, operation, repair, maintenance,
protection, refurbishment or berthing of the Tin Goose, bar none, and agree to
hold Calais, its affiliates and subsidiaries, harmless therefore, and to
indemnify them for any further costs, liabilities and expenses associated with
the Tin Goose, its acquisition, operation, repair, maintenance, protection,
refurbishment and berthing.

3. Surrender of Lands and Buildings.

      Calais hereby agrees to surrender to GCPM all of the land, buildings, real
estate, leases or landholdings of Calais, or for which Calais funded
acquisition, at the Conception Village at the mouth of the Rio Conception, not
including any mineral rights herein related to the hardrock concessions. Calais
shall also surrender all small boats and motors located at the Conception

                                        3
<PAGE>

Village. Calais shall take any acts as may be required by the laws of Panama to
affect such transfer or surrender.

      In the event that Calais undertakes exploration operations at its hardrock
concessions as retained herein, PMGC shall make such lands and buildings
available at a reasonable local rental rate during the course of such
exploration, unless such lands and buildings are then subject to a prior sale or
lease commitment. Calais shall not be liable for any past or future cost,
expense, liability or tax related to such real estate, personalty, or its
management.

      GCPM hereby agrees to hold Calais harmless from any future cost, expense,
liabilities or taxes related to such lands, buildings, or boats and to indemnify
Calais from any costs, expenses, claims, actions or liabilities which may
henceforth be asserted by any third party with relation to such lands, buildings
or boats.

4. Option to Purchase Hardrock and Terrestrial Concessions and Applications.

      PMGC is the concession holder of the following terrestrial mining
concessions in the Veraguas District, Republic of Panama:

1-a Norte De Veraguas Zones 1,2,3, and 4-3460 Hectares-El
Corregimento-Calovebora Del District, Santa Fe, Proviencia Veraguas, Panama;

2-a Cerro Guaison Zones 1, 2-4968 Hectares (Same legal description as Item 1-a);

3-a Golden Cycle of Panama-Zone 1-3000 Hectares (Same legal description as Item
1-a);

4-a Boca Del Rio Conception-Zones 1, 2, 3, 4-4980 Hectares (same legal
description as Item 1-a)

      PMGC and/or Calais Resources Panama is the applicant for the following
concession:

Concession Application Nos. ________ and _________ which application was filed
with the Department of Minerals ("Minerales") on ________________________, and
accorded filing

                                        4
<PAGE>

stamp _______________ and priority number ______________and which is currently
pending for issuance as an exploration concession or concessions (the
concessions and applications together, being all of the hardrock concessions and
applications). When the concession(s) is issued, it shall continue to be subject
to this agreement without further action. Any further action required to
register the interest of Calais in the concessions, the applications or new
concessions issued pursuant to the applications shall be taken promptly by PMGC
with the full advice and consent of Calais.

      PMGC hereby grants to Calais the sole and exclusive option to acquire from
it the hardrock concessions for a price of $4.5 million U.S., exercisable at any
time within ten (10) years after the date hereof (the "Option Period"). To
maintain the Option in force, Calais shall perform those certain conditions and
make those certain payments described in Section 6 hereof.

      In the absence of performance, PMGC may declare a default, and, if a
material default remains un-cured pursuant to the terms of Section 9 hereof, may
terminate such option. Such option may be exercised by Calais giving written
notice of such exercise hereof, closing to occur within thirty (30) days
thereafter at a time and location chosen by Calais in the State of Colorado.

      During the term of such 10-year option, PMGC grants to Calais the full and
exclusive right to access, explore, prospect, drill, sample, operate, maintain,
mine and otherwise fully explore, develop and mine the property, using surface
or sub-surface means, and specifically including open-pit or heap leach methods,
including full and complete rights of access over any of the placer concessions
which Calais is surrendering here to gain access to the properties included in
the hardrock concessions for all purposes enumerated in this section, and all
purposes reasonably incident thereto, including full and complete use of the
surface area of the concessions for exploration, sampling, developing, mining,
processing, constructing shafts,

                                        5
<PAGE>

mines, cuts, pits or mine-related facilities, milling, leaching and all other
reasonable purposes related to the exercise of such rights.

5. Representations Concerning Title and Maintenance of Title.

      PMGC represents and warrants that it has a full and complete title to the
concessions and the applications, and that no third party has any rights
thereto, and subject only to the need to comply with the mining and mineral laws
of the Republic of Panama. PMGC represents and warrants that it has a full and
complete right to enter into this Option agreement regarding the hardrock
concessions, and that this agreement may be registered and recorded in the
records of Panama and such local jurisdictions that the rights of Calais
hereunder will be a matter of public record. If such interest under this Option
may be recorded in the records of Minerales under the laws of Panama, such
agreement shall be so recorded. If the assignment of this agreement to a Panama
or other corporation is required in order to register or to transfer such
interest, Calais shall have a full and complete right to assign this agreement
and the Option granted hereunder, and all of the benefits and burdens of such
agreement, to Calais Resources Panama or to such other Panama or other
corporation as Calais may designate to hold such rights. PMGC covenants herein
to keep Calais fully advised on a current basis as to the status of the
concessions and applications, and shall take no step to lien or encumber such
concessions, or to take any action which could result in their diminution or
termination, or to allow any third party to acquire any part of such title, or
to lien or encumber the same. PMGC shall provide Calais within thirty (30) days
after this date with complete and legible copies of all official documents and
correspondence related to such concession and applications, and shall supplement
such submittals as additional documents or correspondence are received. PMGC
shall advise Calais on an immediate basis of any pending change to the hardrock
concessions, the mining laws

                                        6
<PAGE>

affecting the concessions, administrative or other proceedings affecting the
concessions or concession operations, or the applications.

      Within thirty (30) days after the date of this agreement, PMGC and GCPM
shall provide Calais with a clear, concise and detailed written description of
the history of the hardrock concessions, including, specifically, the date and
timing of the original concession applications; when the concessions were
granted; the type of concessions granted; whether the concessions are subject to
any administrative proceedings or adjudications; the period of time remaining
for the conduct of exploration; whether the concessions are eligible for any
renewals of the exploration period; whether the concessions are currently being
reviewed for possible renewal, and the steps necessary to remain eligible for
any renewal or renewals or suspensions such that the exploration rights granted
under the concessions will remain contemporaneous with the ten-year option
period herein granted. In the event that Panama has passed a new Minerals Code
since the grant of the concessions, such description shall include a clear
explanation of how the concessions will be administered under such new or
updated mining code; whether the concessions will be eligible to be benefited by
the new code; whether applications or other administrative steps must be taken
to bring the concessions into conformity with the new law, or to preserve the
exploration and operating rights herein granted. The explanation shall also
contain a summary of the steps necessary to convert the exploration concessions
into exploitation concessions in order to enjoy the rights to operate, mine and
produce the concessions in the manner herein contemplated.

      Calais shall have the full right and opportunity at any time, to confirm
such representations, warranties and covenants by examining the official records
of the Republic of Panama, by interviewing such officials or ex-officials as it
deems necessary, and by examining

                                        7
<PAGE>

the local and Panama records of PMGC and GCPM, with which examination PMGC and
GCPM shall fully cooperate, for the following purposes:

  a.  To confirm the status and currency of the concessions and applications;

  b.  To determine that there exists no lien, encumbrance or limitation on the
      title;

  c.  That such concessions include all of the lands represented and warranted,
      and that such title and the right to conduct operations on the lands has
      not been lost or placed in jeopardy;

  d.  To confirm that all taxes and fees have been timely paid; and

  e.  To confirm that the rights of Calais under this agreement are valid,
      current, of record, and not otherwise subject to legal jeopardy and that
      they may be properly optioned to Calais, and , upon closing, properly
      registered in transferred to Calais; and

  f.  To confirm that such rights are in accord with the current mining laws of
      Panama, including revisions of those laws which may occur from time to
      time.

  g.  To confirm that the concessions validly confer exploration rights which
      may be renewed or extended under the laws of Panama for a period which
      includes the 10-year Option granted herein.

      In the event that Calais discovers or determines the existence of defects
problems, PMGC and GCPM shall take all necessary steps to cure such defects or
problems, and to bring such concessions into compliance with the terms hereof,
and, to take such actions as necessary to remove the defects or the source of
legal jeopardy, and to ensure that the concession sights extend for the full
option period herein granted.

6. Actions to be Taken by Calais.

                                        8
<PAGE>

      a.    PMGC and GCPM hereby acknowledge receipt of $22,500.00 US in
            satisfaction of all financial obligations of Calais in Panama, or to
            persons associated with or employed by PMGC and GCPM, including, but
            not limited to, payments due to Marge Hendricks, Herb Hendricks,
            Gary Zook, Romulo T. Mathew or GEOMESSA, Claudio Dutary, boat
            docking fees, and fees or wages to guards or part-time employees, or
            the village of Santa Fe. This total includes the September
            concession taxes due. Calais shall not be responsible for any other
            financial obligations related to prior agreements, and, shall not be
            responsible for the payments of any further concession fees or
            taxes, except as may be specifically related future payments
            directly related to the hardrock concessions. PMGC hereby
            indemnifies Calais, and covenants to hold it harmless for any other
            payments, fees, costs or expenses related to Panama operations
            preceding this date. Calais is intended to be complexly free of any
            past, present or future expenses related to the placer concessions
            or agreements, including, but not limited to costs, fees, accounts
            payable, currently unknown or unquantified expenses, travel costs,
            employment obligations, environmental expenses or obligations, land
            or concession payments, legal expenses, fees or costs.

      b.    During each year in which the hardrock concession purchase option is
            in force and effect, Calais shall timely pay all taxes and
            concession fees, including local fees and taxes at the Village of
            Santa Fe, attributable to the hardrock concessions. Calais shall
            receive verifiable receipts of the payment of all taxes and fees
            within ten (10) days after payment, including receipts from the
            government of Panama and the village of Santa Fe. Calais may elect
            to advance tax funds to and through

                                        9
<PAGE>

            Romulo T. Mathew or Claudio Dutary to obtain local payment of taxes,
            or, at Calais' election, may retain local counsel or a local
            representative to pay such taxes and obtain a receipt therefore.

      c.    During the term of the Option, and, until such time as the Option is
            exercised and closed, Calais hereby grants to PMGC and GCPM a two
            percent (2%) Net Smelter Return ("NSR") royalty on all minerals
            mined, processed and sold from the concessions during the term
            thereof. Said NSR royalty shall be paid within thirty (30) days
            after final settlement to Calais from the sale of all gold and other
            minerals mined, processed and sold from the hardrock properties,
            until such time as PMGC and GCPM have received total royalty
            payments of $4.5 million U.S., at which time such royalty shall
            terminate, the property shall be deemed fully paid, and title
            thereto shall in all respects be transferred. All royalty amounts
            paid prior to election and sale closing shall be applied
            cumulatively against the purchase exercise price of $4.5 million US,
            and payment shall have the effect of reducing the purchase price at
            exercise. All such royalty amounts and any payment of the purchase
            price shall be split as follows: PMGC___%; GCPM ___%. "NSR," as used
            herein, shall mean the net returns to Calais from the smelter or
            other arms length purchaser after deducting the costs of shipment of
            ores, gold or concentrates to the smelter or other buyer, including
            necessary insurance, security and transportation costs, and further,
            after deducting the costs of smelting or refining, but not the costs
            of mining or intermediate milling or processing.

                                       10
<PAGE>

      d.    To maintain this agreement in full force and effect, Calais shall
            pay to PMGC and GCPM the sum of US $25,000.00 per year beginning on
            September 15, 2005, and on or prior to each September 15 thereafter,
            and continuing through September 15, 2014, which payments shall
            extend the term of this agreement until and through September 15,
            2014. This agreement shall terminate, unless extended by the
            parties, at midnight, Colorado time, September 15, 2014. The failure
            to make any annual payment in timely fashion shall be an event of
            default, and shall allow termination of this agreement if not cured
            in accord with the notice-cure provisions of this agreement.

      e.    Commencing during the September 15, 2004 through September 14, 2005
            option year (such annual period being an "option year"), and during
            each succeeding option year during the Option term Calais covenants
            to spend a minimum of $100,000 per option year on hardrock
            exploration directly related to the hardrock Concessions. In any
            year when Calais or its affiliates, venture partners or assigns
            spends in excess of $100,000.00, such excess may be carried over
            into subsequent years by being placed in a "carryover account".
            Within thirty (30) days after the end of any option year, Calais
            shall inform PMGC in writing of the costs and expenses expended in
            exploration during that option year, and of the status of the
            carryover account.

      f.    Qualifying expenditures hereunder for exploration of the hardrock
            concessions shall be all costs and expenses of the exploration
            program, including Panama related legal and administrative work,
            both within and without the country of Panama, travel expenses of
            personnel to and from Panama, including lodging and

                                       11
<PAGE>

            other expenses of Calais personnel or employees, or those of venture
            partners, affiliates or assigns, in Panama, and, specifically
            including all sums expended for conducting exploration and
            reconnaissance work on the concessions, including the costs of
            labor, equipment, tools, supplies, employee overhead and wages,
            salaries of supervisory personnel, drilling, sampling, survey,
            mapping, aerial or surface or satellite reconnaissance, excavation,
            assay and other expenses, base camp expenses of all kinds, whether
            in the field, at Conception Village, Santa Fe, or elsewhere, and
            including any and all expenses related to maintaining and operating
            the exploration program. Calais covenants its good faith in
            accounting for such expenses, and in making debits or credits to the
            carryover account, and reporting the same to PMGC. Calais shall
            accompany such annual accounting with a general description of the
            goals accomplished by the annual program. Calais shall have complete
            rights to conduct such programs through venture partners, optionees,
            purchasers, partner companies, or third parties in contract with
            Calais.

7. Status of Calais Resources Panama.

      PMGC and its officers have created a Panama corporation known as Calais
Resources Panama. The Panama corporation was created at the request and cost of
Calais. PMGC and GCPM agree to return the ownership, control and management of
such corporation to Calais at such time and on such terms as may be requested by
Calais. To the extent that the corporation must be headquartered or domiciled in
Panama, or, must have officers and directors who are citizens of Panama, or
maintain a local Panama representative, Calais shall retain its own local
representation and shall appoint such officers and directors to serve as it may
choose. PMGC

                                       12
<PAGE>

and its employees shall cooperate in tendering such resignations, documents,
documentary filings or transfers as may be necessary to affect the transfer of
ownership by share certificate endorsement, or other necessary steps, and the
resignation of current officers and directors and the substitution of new
officers and directors, all of which shall be done promptly, in timely fashion,
and in full cooperation with Calais.

8. Appointment of Herbert Hendricks to Represent PMGC and GCPM.

      PMGC and GCPM hereby appoint Herbert Hendricks as the person responsible
for receiving and disbursing, on behalf of PMGC and GCPM, all funds or other
items of consideration received from Calais during the 10-Year Option term. In
the event that Calais elects to make payments of taxes or fees on the hardrock
concessions through PMGC, or, to entrust other funds for the operation of Panama
operations to PMGC (at its sole election) PMGC and Mr. Herbert Hendricks shall
provide true and correct original receipts for such funds, which receipts shall
conform both to the acceptable business practices of Panama and the internal
accounting requirements for a public company in effect at Calais, and as relayed
in writing to PMGC. Such receipts shall be tendered in timely fashion, which
shall mean within 30 days after the transfer of funds by Calais, unless
otherwise agreed in writing.

9. Default and Cure.

      In the event of any default or claimed default hereunder, the
non-defaulting party shall give written notice of default hereunder to the
defaulting party, specifying with reasonable detail the nature of the claimed
default. The defaulting party shall have sixty (60) days to remedy such default,
except in the cure of any default in making an annual payment, which cure period
shall be thirty (30) days after the date of delivery of the notice of default.
In the event that a default cannot be cured within sixty days, but cure is
commenced, cure may be completed if pursued

                                       13
<PAGE>

with steady effort and diligence. In the event that a default is material to the
Option, and cure is not completed or commenced within the period provided, the
non-defaulting party may declare the agreement to be terminated.

      In the event that a claimed defaulting party maintains in writing that
there is no default, and the party claiming the default does not agree, either
party may initiate arbitration over the issue of the existence of a default,
such arbitration to be conducted in Denver, Colorado, under the Commercial
Arbitration Rules of the American Arbitration association. The costs, expenses
and fees for the arbitration shall be paid by or attributable to the
non-prevailing party, and may be awarded by the arbitrator.

      If the arbitrator rules that a default exists, the period for curing the
default shall run from the date of the issuance of the final ruling of the
arbitrator. The parties specifically agree that any dispute over the correct
calculation of royalty amounts or expenditures on work programs shall be
arbitrable events in the event that the parties cannot first agree on their
resolution, and that any dispute as to the making of a required annual payment
(other than disputes as to timeliness) shall not be an arbitrable event.

      Either party may enforce an arbitration award in the forum provided herein
as the judicial forum for the resolution of disputes.

10. Intent to Resolve all Disputes Related to Past Panama Operations.

      The Parties hereto intend to resolve hereby any and all disputes and
disagreements with respect to the past Panama operations of Calais and past
agreements with PMGC and GCPM, including any and all disputes related to
property ownership, payments of money owed, value of consideration received,
stock ownership, obligations of the Parties, and other issues, disputes and
disagreements of the Parties (the "Disputes").

                                       14
<PAGE>

11. Representations and Warranties.

      a.    CALAIS. Calais represents and warrants to each of PMGC and GCPM
            (understanding that each of the Parties will be relying on the
            accuracy and completeness of the representations and warranties in
            their determination to enter into this Agreement:

            i.    Calais is a corporation in good standing in British Columbia
                  and is qualified to conduct business in the state of Colorado.

            ii.   The person executing this Agreement on behalf of Calais is its
                  president. Calais has authorized its president to sign this
                  Agreement on its behalf, and has further authorized him to
                  deliver this Agreement to each of PMGC and GCPM and intends to
                  be bound to this Agreement in accordance with its terms.

            iii.  To the extent that Calais has stated any fact in this
                  Agreement, Calais (acting through and based on the knowledge
                  of its president) believes such fact to be true and correct in
                  all material respects.

      b.    PMGC AND GCPM. Each of PMGC and GCPM represents and warrants to
            Calais (understanding that Calais will be relying on the accuracy
            and completeness of the representations and warranties in its
            determination to enter into this Agreement:

            i.    Each of PMGC and GCPM, is a corporation in good standing under
                  the laws of its jurisdiction of organization and is qualified
                  to conduct business in the countries, states or provinces
                  where the conduct of its business so requires.

                                       15
<PAGE>

            ii.   The persons executing this Agreement on behalf of each of PMGC
                  and GCPM are its duly constituted officers as named on the
                  signature page hereof. Each of PMGC and GCPM has authorized
                  such officers to sign this Agreement on its behalf, and has
                  further authorized such officers to deliver this Agreement to
                  Calais and intends to be bound by this Agreement in accordance
                  with its terms.

            iii.  To the Extent that this Agreement states or sets out any
                  matters of fact with respect to the rights interests, claims
                  or obligations of PMCG and GCPM, such statements of fact are
                  true and correct in all material respects and any such
                  statements of fact do not omit to state a fact that ought
                  reasonably to be stated or that is necessary to make the
                  statement no misleading in light of the circumstances in which
                  it was made.

12. Mutual Releases.

      a.    CALAIS RELEASE

            i.    Upon its receipt of a fully executed and notarized copy of
                  this Agreement, Calais, for itself, its administrators,
                  officers, directors, shareholders, agents, representatives,
                  successors, and assigns, family members and related entities
                  (the "Calais Releasors"), shall and hereby does release,
                  acquit, and forever discharge PMGC and GCPM and each of them,
                  their affiliates, heirs, successors, officers, directors,
                  shareholders, and assigns, family members and related entities
                  (the "Panama Releasees"), of and from any and all obligations
                  or liability which it now has, has had, or may have, and from
                  all claims, demands, liens, actions, administrative

                                       16
<PAGE>

                  proceedings, and causes of action, and from all damages,
                  injuries, losses, contributions, indemnities, compensation,
                  costs, attorney's fees and expenses of every kind and nature
                  whatsoever, whether known or unknown, fixed or contingent,
                  whether in law or in equity, whether asserted or unasserted,
                  whether sounding in tort or in contract, from the beginning of
                  the world to the date of this Agreement, related to, arising
                  from, or which may in the future arise from, Calais operations
                  in Panama and its prior contractual relations with PMGC and
                  GCPM, except for obligations or liability, or all claims,
                  demands, liens, actions, administrative proceedings or causes
                  of action contained in, created by or arising now or in the
                  future from this Agreement.

            ii.   Calais, on behalf of itself and the other Calais Releasors
                  agrees not to initiate of maintain any claim, suit or cause of
                  action, of any kind whatsoever, in or by way of any legal
                  proceedings or otherwise, against any of the Panama Releasees
                  based on any obligation or liability arising directly or
                  indirectly out of, or relating in any way to the subject
                  matter of any matter released hereunder pursuant to the
                  preceding paragraph.

      b.    PMGC AND GCPM PARTIES RELEASE

            i.    Upon their receipt of a fully executed and notarized copy of
                  this Agreement, PMGC and GCPM, for itself, or its
                  administrators, agents, officers, directors, shareholders,
                  representatives, successors, and assigns, family members and
                  related entities (the "Panama Releasors"), shall and hereby
                  does release, acquit, and forever discharge Calais, together
                  with its

                                       17
<PAGE>

                  affiliates, managers, members, creditors, officers, directors,
                  shareholders, administrators, and agents, and its and their
                  respective representatives, successors and assigns, family
                  members and related entities (the "Calais Releasees"), of and
                  from any and all obligations or liability which is now has,
                  has had, or may have, and from all claims, demands, liens,
                  actions, administrative proceedings, and causes of action, and
                  from all damages, injuries, losses, contributions,
                  indemnities, compensation, costs, attorney's fees and expenses
                  of every kind and nature whatsoever, whether known or unknown,
                  fixed or contingent, whether in law or in equity, whether
                  asserted or unasserted, whether sounding in tort or in
                  contract, from the beginning of the world to the date of this
                  Agreement, related to, arising from, or which may in the
                  future arise from, Calais' operations in Panama and Calais'
                  prior contractual relations with PMGC and GCPM, except for
                  obligations or liability, or all claims, demands, liens,
                  actions, administrative proceedings or causes of action
                  contained in, created by or arising now or in the future from
                  this Agreement.

            ii.   PMGC and GCPM, on behalf of itself and the other Panama
                  Releasors agree not to initiate of maintain any claim, suit or
                  cause of action, of any kind whatsoever, in or by way of any
                  legal proceedings or otherwise, against any of the Panama
                  Releasees based on any obligation or liability arising
                  directly or indirectly out of, or relating in any way to the
                  subject matter of any matter released hereunder pursuant to
                  the preceding paragraph.

                                       18
<PAGE>

      c.    The Parties warrant and represent to each other that they have had
            the opportunity to be represented by legal counsel regarding this
            Agreement and freely and voluntarily entered into this Agreement
            upon the advice of such counsel as deemed by such Party to be
            necessary or appropriate.

12. No Admission of Liability.

      This Agreement, and compliance with or performance of any obligations
imposed by this Agreement, shall not be construed as an admission of liability
on the part of the Parties, such liability being hereby expressly denied. The
Parties' intent in this Agreement is to resolve the Disputes and avoid any
further differences or conflicts. The Parties herby represent that they have
neither filed nor caused to be filed any pending charges, suits, claims,
grievances or other action (hereinafter referred to as "Claims") which in any
way arise from or relate to the Disputes. Each Party further represent to each
other that such Party has not directly or indirectly assigned any Claims or
which are released herby to any other person.

13. Waiver.

      Each of the Parties recognizes that, by the releases contained herein,
they are releasing claims and other matters that may be unknown at the present
time, and claims and other matters which may arise in the future from actions
taken prior to the date hereof. Each of the Parties affirmatively states that
this accurately sets forth the intent of such Party and waives any right it may
have to claim differently at any time in the future.

14. Defense.

      This Agreement and the releases contained herein, may be pled as a full
and complete defense, counterclaim or cross-claim to, and may be used as a basis
for an injunction against, any action, suit, or other proceeding which may be
instituted, prosecuted or attempted in breach of

                                       19
<PAGE>

this Agreement or the releases contained herein, or any other agreement
delivered pursuant hereto, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs.

15. Costs and Expenses.

      The Parties shall each be responsible to pay their own attorneys' fees and
other costs and expenses incurred in connection with the negotiation and
drafting of this Agreement. Each Party shall release and forever hold the other
harmless from any liability to their attorneys for payment of such fees pursuant
to any agreement or understanding between each Party and their attorneys.

16. Accuracy of Factual Statements.

      Each of the Parties represents to each of the other Parties that the
factual statements contained herein are true and correct to the best of such
Party's knowledge, and no Party will take any action or assert any position that
places into question or disputes the accuracy of any of the factual statements
made herein.

17. Governing Law; Jurisdiction.

      This Agreement shall be governed by the laws of Colorado except to the
extent that the laws of Panama govern transactions and statements with respect
to the concessions or, as concern Calais Resources Panama. Each of the Parties
consents to the jurisdiction of the federal courts whose districts encompass any
part of the City of Denver, Colorado, or the state courts of the City and County
of Denver, Colorado, in connection with any dispute arising under this Agreement
and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non coveniens, to the bringing of any
such proceeding in such jurisdictions. Each of the Parties agree that service in
person or by certified or registered U.S. Mail to their respective last known
address shall constitute valid in personam service upon

                                       20
<PAGE>

such Party in any action or proceeding with respect to any matter as to which
such Party has submitted to jurisdiction hereunder.

18. Severability.

      If any part of this Agreement shall be determined to be illegal, invalid
or unenforceable, the remaining part shall not be affected thereby, and the
illegal, unenforceable or invalid parts shall be deemed not to be a part of this
Agreement. Each Party represents and warrants that it has full capacity and
authority to settle, compromise, and release its claims and to enter into this
Agreement and that no other person or entity has acquired, or will in the future
acquire or have any right to assert, against any person or entity released by
this Agreement any portion of that Party's claims released herein.

19. Integrated Agreement.

      This Agreement constitutes a single integrated contract expressing the
entire agreement of the Parties with respect to the subject matter hereof,
compromising any and all rights and obligations of the Parties, without
exception, and supersedes all prior and contemporaneous oral and written
agreements and discussions with respect to the subject matter hereof. This
Agreement may be amended or modified only by an agreement in writing signed by
the Parties. The failure by a Party to declare a breach or otherwise to assert
its rights under this Agreement shall not be construed as a waiver of any right
the Party has under this Agreement.

20. Counterparts.

      This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

21. Authority.

                                       21
<PAGE>

      Each person executing this Agreement on behalf of an entity represents and
warrants to each other Party that such person has executed this Agreement with
all appropriate corporate or other authority, and that this Agreement is
intended to be, and is, binding upon such entity in accordance with its terms.

22. Good Faith.

      Each of the Parties to this Agreement will work in good faith to
accomplish the purposes of this Agreement.

23. Notices.

      All written notices required by this Agreement or any document delivered
pursuant hereto or as contemplated herein, must be delivered to the addresses
(or to such other address as may be specified by a Party) by a means evidenced
by a delivery receipt and will be effective upon receipt.

<TABLE>
<CAPTION>
        If to Calais                             If to PMGC or GCPM
----------------------------------------------------------------------
<S>                                            <C>
8400 East Crescent Parkway 675                 1337 West 5th Street
Greenwood Village, CO 80111                    Marysville, OH 43040
Attn: Matthew C. Witt, CFO                     Attn: Herbert Hendricks
</TABLE>

23. Survival.

      The Parties agree that the obligations, representations and warranties
contained herein shall indefinitely survive the execution of this Agreement, the
delivery of all documents hereunder, and the completion of the transactions
contemplated herein.

      IN WITNESS WHEREOF, the Parties have caused this agreement to be duly
executed as of the date first mentioned above.

                                       22
<PAGE>

Calais Resources, Inc.

By: ________________________________    By: ________________________________
     Thomas S. Hendricks, President         Thomas S. Hendricks, Individually

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by Thomas S. Hendricks, as President for Calais Resources
and individually.

      Witness my hand and seal.
                                         _______________________________________
                                           Notary Public

My commission expires: ___________________.

GCPM

By: ____________________________________  By: _________________________________
     Herbert Hendricks, Chief Executive       Herbert Hendricks, Individually
     Officer and Secretary

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by Hebert Hendricks, as Chief Executive Officer and
Secretary of GCPM and individually.

      Witness my hand and seal.
                                         _______________________________________
                                         Notary Public

My commission expires: ___________________.

                                       23
<PAGE>

By: ________________________________    By: ________________________________
       Claudio Dutary, President              Claudio Dutary, Individually

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by Claudio Dutary, as President of GCPM and individually.

      Witness my hand and seal.

                                         _______________________________________
                                         Notary Public

My commission expires: ___________________.

By: ________________________________    By: ___________________________________
        Gary Zook, Vice President                 Gary Zook, Individually

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by Gary Zook, as Vice President of GCPM and individually.

      Witness my hand and seal.

                                         _______________________________________
                                         Notary Public

My commission expires: ___________________.

                                       24
<PAGE>

Golden Cycle of Panama Mining

By: ________________________________

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by ___________________.

      Witness my hand and seal.

                                         _______________________________________
                                         Notary Public

My commission expires: ___________________.

By: ________________________________

STATE OF COLORADO              )
                               ) ss.
COUNTY OF _______________      )

      The foregoing instrument was acknowledged before me this _____ day of
_______________, 2004, by ___________________.

      Witness my hand and seal.

                                         _______________________________________
                                         Notary Public

My commission expires: ___________________.

                                       25
<PAGE>

                                   EXHIBIT A-1

                        LIST OF HARDROCK CONCESSION AREAS

<PAGE>

                                   EXHIBIT A-2

                    LIST OF HARDROCK CONCESSION APPLICATIONS

<PAGE>

                                   EXHIBIT A-3

                             MAP OF CONCESSION AREAS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]