Document:

EXECUTION
          VERSION

    

    SHARE
      PURCHASE AGREEMENT

    ASSIGNMENT
      AND ASSUMPTION AGREEMENT

    

    This
      SHARE PURCHASE AGREEMENT ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”)
      is
      made and entered into as of 2 December 2005 (the “Effective
      Date”),
      by
      and among Trend Mining Company, a Delaware corporation (“Assignor”);
      Mr.
      David H. Russell, Mrs. Susan T. Russell and Mr. David H. Russell III, each
      an
      individual (together, “The
      Russells”);
      Oro
      Chile LLC, a Colorado limited liability company (“Oro
      Chile”);
      and
      Pacific Rim Mining Corp., a company organized and existing under the laws of
      the
      Province of British Columbia, Canada (“Pacrim”).
      

     

    WITNESSETH:

     

    WHEREAS,
      pursuant to that certain Share Purchase Agreement, dated September 20, 2005,
      between Assignor and Pacrim, a copy of which is attached to this Assignment
      as
Exhibit
      A,
      Assignor acquired from Pacrim one hundred percent (100%) of the issued and
      outstanding ordinary and preference shares (collectively, the “DMC
      Interests”)
      in DMC
      Cayman Inc., a Cayman Islands exempted company (“DMC”),
      on
      the terms and subject to the conditions set forth therein (together with all
      documents executed or delivered in connection therewith, the “Assigned
      Agreement”);

     

    WHEREAS,
      as of
      September 20, 2005, Assignor agreed to transfer seventy percent (70%) of the
      DMC
      Interests (the “Initial
      Transfer”)
      to The
      Russells and Oro Chile in order to obtain the funds (the “Initial
      Investment”)
      necessary to make the payments required to be made by Assignor under the
      Assigned Agreement;

     

    WHEREAS,
      pursuant to the transactions contemplated by that certain letter agreement,
      dated October 3, 2005, by and between Assignor, The Russells and Oro Chile
      (the
“Letter
      Agreement”),
      pursuant to which Letter Agreement The Russells and
      Oro
      Chile, together, agreed
      to
      acquire the remaining thirty percent (30%) of the DMC Interests from Assignor
      (the “Remaining
      DMC Interests”),
      on
      the terms and subject to the conditions set forth in the Letter
      Agreement;

     

    WHEREAS,
      under
      the Letter Agreement, in addition to the Initial Transfer for the Initial
      Investment, Assignor is obligated to transfer to The Russells and Oro Chile
      (collectively, the “Assignee”)
      the
      Remaining DMC Interests, and to assign and delegate (as applicable) to Assignee,
      jointly and severally, all of the rights, duties, obligations and liabilities
      of
      Assignor under and in connection with the Assigned Agreement; and Assignee,
      jointly and severally, is obligated to purchase the Remaining DMC Interests,
      and
      to accept and assume, all of the rights, duties, obligations and liabilities
      of
      Assignor under and in connection with the Assigned Agreement, all on the terms
      and subject to the conditions set forth in this Assignment; and 

     

    WHEREAS
      the
      foregoing assignment by the Assignor to the Assignee requires the consent of
      Pacrim pursuant to the Assigned Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows:

     

    1.  Assignment
      and Assumption.
      For and
      in consideration of the transactions contemplated by the Letter
      Agreement:

     

    a.  Assignment
      by Assignor.
      Assignor hereby assigns to Assignee, jointly and severally, all of its rights
      and benefits under and in connection with the Assigned Agreement, and, further,
      delegates to Assignee, jointly and severally, all of its duties, obligations
      and
      liabilities under and in connection with the Assigned Agreement;
      and

     

    b.  Assumption
      by Assignee.
      Assignee, jointly and severally, hereby accepts
      the assignment from Assignor of Assignor’s rights and benefits under and in
      connection with the Assigned Agreement and assumes and agrees with Pacrim to
      timely perform, jointly and severally, all of the duties, obligations and
      liabilities of Assignor under and in connection with the Assigned
      Agreement.

     

    2.  Consent
      and Release by Pacrim; Performance.
      Subject
      to (a) the assumption set forth in Section 1(b), and (b) the payment by Assignor
      and Assignee, jointly and severally, of all reasonable costs and expenses of
      Pacrim (including, without limitation, those of Pacrim’s legal counsel) incurred
      in connection the assignment contemplated hereby (including, without limitation,
      the preparation and review of all applicable legal documentation), such payment
      to be made no later than fifteen (15) business days after the delivery by Pacrim
      to Assignor and Assignee of an invoice therefor, Pacrim hereby consents to
      the
      assignment to Assignee, jointly and severally, of all of Assignor’s rights and
      benefits, and the delegation to Assignee, jointly and severally, of all
      Assignor’s duties, obligations and liabilities, under and in connection with the
      Assigned Agreement, and, further, releases Assignor from any and all duties,
      obligations and liabilities under and in connection with the Assigned Agreement.
      Pacrim hereby agrees that Assignee, jointly and severally, is the
      successor-in-interest to Assignor under the Assigned Agreement and agrees to
      perform, and to accept performance from Assignee, under the Assigned
      Agreement.

     

    3.  Opinion.
      Oro
      Chile will issue and deliver to Pacrim and Assignor an opinion of counsel as
      to
      the valid formation and good standing of Oro Chile in the state of its
      formation, the power and authority of Oro Chile to enter into this Assignment,
      and the due and valid authorization and execution of this Assignment by Oro
      Chile.

     

    4.  Indemnification.
      

     

    a. Assignee,
      jointly and severally, hereby agrees to defend, indemnify and hold Assignor,
      its
      affiliates, directors, officers, employees, agents, successors and assigns
      harmless from and against any and all claims, demands, damages, liabilities,
      losses, costs, expenses, assessments, settlement payments and judgments of
      any
      nature whatsoever (including without limitation reasonable attorneys’ fees and
      other costs and expenses incident to any claim, suit, action or proceeding,
      whether pending or threatened) suffered, sustained, incurred or required to
      be
      paid by Assignor because of, or that result from, relate to or arise out of
      or
      in connection with any act or omission of Assignee that relates to (i) the
      Assigned Agreement, for the period on and after September 20, 2005; (ii) the
      ownership, operation or use by Assignee (or any of them) of the DMC Interests
      or
      any property or other asset of DMC from and after September 20, 2005; and (iii)
      the duties, obligations and liabilities assumed by Assignee pursuant to this
      Assignment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    b. Assignor
      hereby agrees to defend, indemnify and hold Assignee, its affiliates, directors,
      officers, employees, agents, successors and assigns harmless from and against
      any and all claims, demands, damages, liabilities, losses, costs, expenses,
      assessments, settlement payments and judgments of any nature whatsoever
      (including without limitation reasonable attorneys’ fees and other costs and
      expenses incident to any claim, suit, action or proceeding, whether pending
      or
      threatened) suffered, sustained, incurred or required to be paid by Assignee
      because of, or that result from, relate to or arise out of or in connection
      with
      any act or omission of Assignor that relates to (i) any costs, fees and expenses
      claimed by CPM Group based on the activities of CPM Group performed by or on
      behalf of Assignor prior to the Effective Date; and (ii) any costs, fees or
      expenses claimed by Mr. Marc Leduc based on the activities of Mr. Marc Leduc
      performed by or on behalf of Assignor prior to the Effective Date.

     

    5.  Governing
      Law.
      This
      Assignment shall be governed by and interpreted in accordance with the laws
      of
      the Province of British Columbia, and the federal laws of Canada applicable
      therein, without regard to conflicts of laws principles that would require
      the
      application of any other law.

     

    6.  Execution
      in Counterparts; Effectiveness.
      This
      Assignment may be executed in any number of counterparts with the same effect
      as
      if all parties had signed one and the same document. This
      Assignment shall be effective when validly executed and delivered by all
      parties.

     

    7.  Amendment.
      This
      Assignment may not be amended, supplemented or otherwise modified except in
      a
      written document executed by the party against whose interest the modification
      shall operate. 

     

    8.  Binding
      Effect.
      The
      terms and conditions of this Assignment shall be binding upon and inure to
      the
      benefit of the parties and their respective heirs, successors and permitted
      assigns.

     

     

    9.  No
      Third Party Beneficiary.
      This
      Assignment is not intended to give or confer any benefits, rights, privileges,
      claims, actions, or remedies to any person or entity as a third party
      beneficiary.

     

    10.  Further
      Assurances.
      Upon
      the request of any party to this Assignment, the other party or parties
      shall:

     

    a.  furnish
      to the requesting party any additional information reasonably
      requested;

     

    b.  execute
      and deliver, at its or their own expense, any other documents reasonably
      requested; and

     

    c.  take
      any
      other actions as the requesting party may reasonably require to more effectively
      carry out the intent of this Assignment.

     

    11.  Severability.
      If a
      court of competent jurisdiction holds any provision of this Assignment invalid
      or unenforceable, for any reason, the other provisions of this Assignment shall
      remain in full force and effect. Any provision of this Assignment held invalid
      or unenforceable only in part or degree shall remain in full force and effect
      to
      the extent not held invalid or unenforceable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.  Notices.
      All
      notices, requests, demands, waivers and other communications required or
      permitted to be given under this Assignment shall be in writing and shall be
      given by any of the following methods: (i) personal delivery; (ii) registered
      or
      certified mail, postage prepaid, return receipt requested; (iii) facsimile,
      receipt confirmed; or (iv) by an internationally recognized overnight courier
      service. Notices shall be sent to the appropriate party at its address given
      below (or at such other address for such party as shall be specified by notice
      given hereunder): 

     

    If
      to Assignor:

     

    Trend
      Mining Company

    5439
      South Prince Street

    Littleton,
      Co 80120

    

    Attention: Thomas
      A.
      Loucks

    Facsimile: (303)
      798-7374

    

    with
      a
      copy (which shall not constitute notice) to:

     

    Holland
      & Hart LLP

    8390
      East
      Crescent Parkway, Ste 400

    Greenwood
      Village, CO 80111

    

    Attention: Paul
      Schlauch

    Facsimile: (303)
      290-1606

     

    If
      to Assignee:

     

    Oro
      Chile

    5501
      Lakeshore Drive

    Littleton,
      CO 80123-1544

    

    Attention: Peter
      Babin, Manager

    Facsimile: (303)
      730-0324

    

    and

     

    The
      Russells

    19501
      West Country Club Drive, Apt. 501

    Aventura,
      FL 33180

    

    Attention: David
      H.
      Russell

    Facsimile:
       (305)
      931-2624

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If
      to Pacrim:

     

    Pacific
      Rim Mining Corp.

    Suite
      410
      - 625 Howe Street

    Vancouver,
      B.C.

    Canada
      V6C 2T6

     

    Attention: President

    Facsimile: (604)
      689-1978

    

    with
      a
      copy (which shall not constitute notice) to:

     

    Gowling,
      Lafleur Henderson LLP

    Suite
      2300, 1055 Dunsmuir Street

    Vancouver,
      B.C.

    Canada
      V7X 1J1

    

    Attention: Lawrence
      W. Talbot

    Facsimile: (604)
      689-8610

     

    Each
      such
      notice or communication shall be effective (x) if delivered personally by
      registered or certified mail, return receipt requested, or by internationally
      recognized overnight courier service, when delivered at the address specified
      in
      this Section 12 (or in accordance with the latest unrevoked direction from
      such
      party), and (y) if given by facsimile, when such facsimile is transmitted
      to the facsimile number specified in this Section 12 (or in accordance with
      the
      latest unrevoked direction from such party), and confirmation of receipt from
      the receiving facsimile machine is received.

     

    [SIGNATURES
      FOLLOW]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF this
      Assignment has been executed and delivered by the parties as of the day and
      year
      first above written.

    

    
      	
              EXECUTED
                AS A DEED AND
                DELIVERED
                by

            	 	
              )

            
	
              TREND
                MINING COMPANY

            	 	
              )

            
	
              acting
                by Thomas A. Loucks, President

            	 	
              )

            
	 	 	
              )

            
	
              /s/
                Thomas A. Loucks

            	 	 	
              )

            
	 	 	 	
              )

            
	 	 	 	 
	
              In
                the presence of:

            	
            	 	
            
	 	 	 	 
	/s/
              Griffen A.B. Bishop	Witness	 	 

    

     

     

    
      	
              EXECUTED
                AS A DEED AND DELIVERED
                by

            	 	
              )

            
	
              ORO
                CHILE LLC

            	 	
              )

            
	
              acting
                by Peter Babin, Manager

            	 	
              )

            
	 	 	
              )

            
	 	 	
              )

            
	
              /s/
                Peter Babin

            	 	 	
              )

            
	 	 	 	 	
              )

            
	 	 	 	 
	In
              the
              presence of:	 	 	 
	 	 	 	 
	/s/
              Griffen A.B. Bishop	Witness	 	
            
	 	 	
            

    

     

     

    
      	
              EXECUTED
                AS A DEED AND DELIVERED by

            	 	
              )

            
	
              David
                H. Russell

            	 	
              )

            
	 	 	
              )

            
	 	 	
              )

            
	
              /s/
                David H. Russell

            	 	 	
              )

            
	 	 	 	 	
              )

            
	 	 	 	 
	In
              the
              presence of:	 	 	 
	 	 	 	 
	/s/
              Susan T. Russell	Witness	 	 

    

     

    

    
      	
              EXECUTED
                AS A DEED AND DELIVERED by

            	 	
              )

            
	
              Susan
                T. Russell

            	 	
              )

            
	 	 	
              )

            
	 	 	
              )

            
	
              /s/
                Susan T. Russell

            	 	 	
              )

            
	 	 	 	 	
              )

            
	 	 	 	 	 
	In
              the
              presence of:	 	 	 
	 	 	 	 
	/s/
              David H. Russell	Witness	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              EXECUTED
                AS A DEED AND DELIVERED by

            	 	
              )

            
	
              David
                H. Russell III

            	 	
              )

            
	 	 	
              )

            
	 	 	
              )

            
	
              /s/
                David H. Russell

            	 	 	
              )

            
	 	 	 	 	
              )

            
	 	 	 	 	 
	
              In
                the presence of:

            	 	 	 
	 	 	 	 
	/s/
              Susan T. Russell	Witness	 	
            

    

     

    

    
      	
              EXECUTED
                AS A DEED AND DELIVERED
                by

            	 	
              )

            
	
              PACIFIC
                RIM MINING CORP.

            	 	
              )

            
	
              acting
                by Catherine McLeod-Seltzer, President

            	 	
              )

            
	 	 	
              )

            
	 	 	 	 	
              )

            
	
              /s/
                Catherine McLeod-Seltzer

            	 	 	
              )

            
	 	 	 	 	
              )

            
	 	 	 	 	 
	
              In
                the presence of:

            	 	 	 
	 	 	 	 
	/s/
              Lawrence W. Talbot	WitnessEXECUTION
        VERSION

    

     

    CLOSING
      MEMORANDUM

    FOR
      THE TRANSFER OF SHARES

    IN
      DMC CAYMAN INC.

    

    December
      2, 2005

    

    THIS
      CLOSING MEMORANDUM (the “Closing Memorandum”) sets forth certain actions and
      agreements by and among Trend Mining Company, a Delaware corporation; Oro Chile
      LLC, a Colorado limited liability company; and David H. Russell, Susan T.
      Russell, and David H. Russell III, each an individual, with regard to the
      transfer of the ordinary and preference shares in DMC Cayman Inc.

     

    1.
      Definitions.
      As used
      in this Closing Memorandum, the following terms have the meanings
      indicated:

     

    “Additional
      Costs and Fees” has the meaning set forth in Section 3b.

     

    “AGI”
      means Andacollo Gold Inc., a Cayman Islands exempted company.

     

    “Chile”
      means the Republic of Chile.

     

    “Closing”
      means the actions taken by Trend, Oro Chile, The Russells and Pacrim on the
      Effective Date, as contemplated in this Closing Memorandum.

     

    “Closing
      Memorandum” has the meaning set forth in the introductory paragraph, and
      includes the attached Exhibits.

     

    “CMD”
      means Compañia Minera Dayton, a Chilean sociedad
      contractual minera.

     

    “CMD
      Royalty” means a one percent (1%) Net Smelter Returns Royalty to be granted by
      CMD to Trend, substantially in the form attached to this Closing Memorandum
      as
Exhibit
      A.

     

    “DCEM”
      means Dayton Chile Exploraciones Mineras Limitada, a Chilean sociedad
      de responsabilidad limitada.

     

    “DCEM
      Royalty” means a one percent (1%) Net Smelter Returns Royalty to be granted by
      DCEM to Trend, substantially in the form attached to this Closing Memorandum
      as
Exhibit
      B.

     

    “Deed
      of
      Release” means the deed of release executed by Pacrim in respect of the Original
      Charge and the Original Promissory Note.

     

    “DMC
      Cayman” means DMC Cayman Inc., a Cayman Islands exempted company.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Dollars”
      or “$” means the official currency of the United States of America.

     

    “Effective
      Date” means December 2, 2005.

     

    “Expenses”
      has the meaning set forth in Section 8b.

     

    “Legal
      Costs” means any and all legal costs, fees and expenses reasonably incurred by
      Trend and/or Pacrim in respect of the transactions described in this Closing
      Memorandum.

     

    “Letter
      Agreement” has the meaning set forth in Section 7.

     

    “LSI”
      means La Serena Inc., a Cayman Islands exempted company.

     

    “New
      Charge” means the charge over shares granted by Oro Chile and The Russells to
      Pacrim in respect of the Shares.

     

    “New
      Promissory Note” means the promissory note in the principal amount of Two
      Million Four Hundred Thousand Dollars ($2,400,000), made by Oro Chile and The
      Russells to the order of Pacrim.

     

    “Non-Prevailing
      Party” has the meaning set forth in Section 8b.

     

    “Original
      Charge” means the charge over shares granted by Trend to Pacrim in respect of
      the Shares.

     

    “Original
      Promissory Note” means the promissory note in the principal amount of Two
      Million Four Hundred Thousand Dollars ($2,400,000), made by Trend to the order
      of Pacrim.

     

    “Oro
      Chile” means Oro Chile LLC, a Colorado limited liability company.

     

    “Pacrim”
      means Pacific Rim Mining Corp., a British Columbia corporation.

     

    “Pacrim
      Loan” has the meaning set forth in the Share Purchase Agreement.

     

    “Pacrim
      Loan Assignment” means the Assignment of Right to Repayment of Loan in respect
      of the Pacrim Loan.

     

    “Prevailing
      Party” shall have the meaning set forth in Section 8b.

     

    “Purchase
      Price” means a total amount of Three Million One Hundred Thousand Dollars
      ($3,100,000).

     

    “Representatives”
      means, in respect of all or any one of Trend, Oro Chile or The Russells, the
      heirs, relatives, beneficiaries, executors, personal representatives,
      administrators, legal representatives, agents, attorneys, affiliates,
      subsidiaries, directors, officers, managers, members, employees, successors
      and
      assigns of all or any one of Trend, Oro Chile or The Russells.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Repurchase
      Right” has the meaning set forth in Section 7.

     

    “Royalty
      Payments” means the royalty payments to be made by CMD to Trend pursuant to the
      CMD Royalty, and by DCEM to Trend pursuant to the DCEM Royalty.

     

    “Share
      Purchase Agreement” means the Share Purchase Agreement dated September 20, 2005,
      between Pacrim and Trend.

     

    “Share
      Purchase Agreement Assignment and Assumption” means the Share Purchase Agreement
      Assignment and Assumption Agreement in respect of the Share Purchase
      Agreement.

     

    “Shares”
      means the ordinary and preference shares in DMC Cayman.

     

    “The
      Russells” means, jointly and severally, David H. Russell, Susan T. Russell and
      David H. Russell III, each an individual.

     

    “Trend”
      means Trend Mining Company, a Delaware corporation.

     

    “Vector”
      means Vector Colorado, LLC.

     

    2.
      Actions
      Taken at Closing.
      The
      following actions will be taken at the Closing:

     

    a.
      Transfer
      of Shares.

     

    i. Execution
      and delivery of share transfer by Trend to transfer 648,796 ordinary Shares
      to
      David H. Russell III.

     

    ii. Execution
      and delivery of share transfer by Trend to transfer 2,828,238 preference Shares
      to David H. Russell III.

     

    iii. Execution
      and delivery of share transfer by Trend to transfer 5,839,164 ordinary Shares
      to
      David H. Russell and Susan T. Russell, as joint tenants.

     

    iv. Execution
      and delivery of share transfer by Trend to transfer 25,454,140 preference Shares
      to David H. Russell and Susan T. Russell, as joint tenants.

     

    v. Execution
      and delivery of share transfer by Trend to transfer 6,487,959 ordinary Shares
      to
      Oro Chile.

     

    vi. Execution
      and delivery of share transfer by Trend to transfer 28,282,379 preference Shares
      to Oro Chile.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    b.
      Promissory
      Note.
      Execution of New Promissory Note by Oro Chile and The Russells, and delivery
      of
      New Promissory Note to Pacrim.

     

    c.
      Charges
      and Releases.

     

    i. Execution
      by Pacrim of Deed of Release and delivery of Deed of Release to
      Trend.

     

    ii. Delivery
      by Pacrim to Trend of Original Promissory Note.

     

    iii. Execution
      of New Charge by Oro Chile and The Russells and delivery of New Charge to
      Pacrim.

     

    d.
      Assignments.

     

    i. Execution
      of the Share Purchase Agreement Assignment and Assumption by Oro Chile, The
      Russells, Pacrim and Trend.

     

    ii. Execution
      of the Pacrim Loan Assignment by Oro Chile, The Russells, Pacrim and
      Trend.

     

    e.
      Corporate
      Actions in Respect of DMC Cayman.

     

    i. Removal
      of annotation in share registry of DMC Cayman in respect of the Original
      Charge.

     

    ii. Notice
      of
      Charge in respect of New Charge, delivered by Oro Chile and The Russells to
      DMC
      Cayman.

     

    iii. Annotation
      of New Charge in share registry of DMC Cayman.

     

    iv. Director’s
      Memorandum in respect of New Charge, delivered by DMC Cayman to
      Pacrim.

     

    v. Resignations
      of Thomas Loucks and John Ryan as directors of DMC Cayman.

     

    vi. Minutes
      of board meeting of DMC Cayman.

     

    vii. Minutes
      of shareholders meeting of DMC Cayman.

     

    viii. Releases
      for Thomas Loucks and John Ryan by DMC Cayman.

     

    ix. Revocation
      of powers of attorney granted by DMC Cayman.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    f.
      Corporate
      Actions in Respect of AGI.

     

    i. Resignations
      of Thomas Loucks and John Ryan as directors of AGI.

     

    ii. Minutes
      of shareholders meeting of AGI.

     

    iii. Releases
      of Thomas Loucks and John Ryan by AGI.

     

    iv. Revocation
      of powers of attorney granted by AGI.

     

    g.
      Corporate
      Actions in Respect of LSI.

     

    i. Resignations
      of Thomas Loucks and John Ryan as directors of LSI.

     

    ii. Minutes
      of shareholders meeting of LSI.

     

    iii. Releases
      of Thomas Loucks and John Ryan by LSI.

     

    iv. Revocation
      of powers of attorney granted by LSI.

     

    h.
      Corporate
      Actions in Respect of CMD.

     

    i. Resignations
      of Thomas Loucks, John Ryan, Bobby Cooper, César Lopez and Marc Leduc as
      directors of CMD.

     

    ii. Minutes
      of shareholders meeting of CMD.

     

    iii. Releases
      of Thomas Loucks, John Ryan, Bobby Cooper, César Lopez and Marc Leduc by
      CMD.

     

    iv. Resignation
      of Gaston Di Parodi Salas as general manager of CMD.

     

    i.
      Corporate
      Actions in Respect of DCEM.

     

    i. Resignations
      of Thomas Loucks, John Ryan, Bobby Cooper, and César Lopez as directors of
      DCEM.

     

    ii. Minutes
      of directors meeting of DCEM.

     

    iii. Releases
      of Thomas Loucks, John Ryan, Bobby Cooper and César Lopez by DCEM.

     

    iv. Resignation
      of César Lopez as general manager of DCEM.

     

    v. Transfer
      of participation held by César Lopez in DCEM to José Francisco Sánchez
      Drouilly.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.
      Payment
      of Purchase Price and Other Costs, Fees and Expenses.

     

    a.
      Purchase
      Price for Shares and the Pacrim Loan.
      

     

    i. On
      and as
      of the Closing, Oro Chile and The Russells shall have paid to Trend the Purchase
      Price for the Shares and the Pacrim Loan. The Purchase Price shall be allocated
      between the Shares and the Pacrim Loan as follows:

     

    (1) Two
      Hundred Dollars ($200) of the Purchase Price shall be allocated to the Shares;
      and

     

    (2) Three
      Million Ninety-Nine Thousand Two Hundred Dollars ($3,099,800) shall be allocated
      to the Pacrim Loan.

     

    ii. Each
      of
      Trend, Oro Chile and The Russells agree that the Purchase Price constitutes
      full
      and fair consideration for the Shares and the Pacrim Loan. Except for the
      Additional Costs and Fees and the Legal Costs to be paid or reimbursed by Oro
      Chile and The Russells, and the Royalty Payments, each of Trend, Oro Chile
      and
      The Russells agree that Trend is not entitled to any further consideration
      or
      other payment for the Shares and the Pacrim Loan. Trend, Oro Chile and The
      Russells agree that neither Oro Chile nor The Russells is entitled to any
      reimbursement, reduction or set off of the Purchase Price, whether through
      a
      reduction or set off against the Additional Costs and Fees, the Legal Costs,
      the
      Royalty Payments, or otherwise.

     

    b. Additional
      Costs and Fees.
      In
      addition to the Purchase Price, within fifteen (15) days following the Closing,
      Oro Chile and The Russells will pay the costs and fees incurred by Trend as
      follows (the “Additional Costs and Fees”):

     

    i. Oro
      Chile
      and The Russells will reimburse Trend in the amount of One Hundred Twenty-Two
      Thousand Nine Hundred Seventy-Five and 93/100 Dollars ($122,975.93) for costs,
      fees and expenses incurred by Trend in respect of the initial purchase of the
      Shares and the Pacrim Loan.

     

    ii. Oro
      Chile
      and The Russells will pay directly to Vector Seventy-Nine Thousand Four Hundred
      Eighty-Two and 71/100 Dollars ($79,482.71) for costs, fees and expenses incurred
      by Trend for services performed by Vector.

     

    c. Legal
      Costs.
      Oro
      Chile and The Russells will pay when due any and all Legal Costs on and after
      the Closing. Oro Chile and The Russells will reimburse Trend and Pacrim for
      any
      such Legal Costs paid by Trend or Pacrim prior to the Closing.

     

    4.
      Royalty
      Agreements.

     

    a. Oro
      Chile
      and The Russells shall cause CMD to execute and deliver to Trend the CMD Royalty
      and shall cause CMD to take such actions as are necessary in order for Trend
      to
      register the CMD Royalty as a public deed pursuant to the laws of
      Chile.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    b. Oro
      Chile
      and The Russells shall cause DCEM to execute and deliver to Trend the DCEM
      Royalty and shall cause CMD to take such actions as are necessary in order
      for
      Trend to register the DCEM Royalty as a public deed pursuant to the laws of
      Chile.

     

    5.
      Releases.

     

    a. Except
      for the payment of Additional Costs and Fees and Legal Costs or as otherwise
      specifically set forth in the Share Purchase Agreement Assignment and
      Assumption, Trend, for itself and its Representatives, hereby forever releases
      and discharges each of Oro Chile and The Russells and their respective
      Representatives, jointly and severally, from any and all causes of action,
      actions, judgments, demands, liens, indebtedness, damages, losses, claims,
      penalties, interest and other liabilities of whatever nature, whether known
      or
      unknown, suspected or unsuspected, past, present or future, whether for damages
      or equitable relief of any sort, including without limitation, economic damages,
      lost profits, consequential damages, exemplary damages, punitive damages, direct
      damages or indirect damages, asserted or which could have been asserted by
      Trend
      or on its behalf in any action in any forum, including all common law, civil
      law, civil code, statutory, tort, contractual, or other claims and claims to
      attorneys’ fees up to and including the Effective Date. Without limiting the
      generality of the foregoing, and except for the payment of the Additional Costs
      and Fees and Legal Costs or as otherwise specifically set forth in the Share
      Purchase Agreement Assignment and Assumption, Trend specifically releases,
      indemnifies and holds harmless each of Oro Chile and The Russells and their
      respective Representatives, jointly and severally, from all claims, demands,
      guarantees and other liabilities of whatsoever kind and character in any manner
      whatsoever arising from the facts or allegations in respect of the ownership
      and
      operation of DMC Cayman, AGI, LSI, CMD and DCEM.

     

    b. Except
      as
      specifically set forth in the Share Purchase Agreement Assignment and
      Assumption, each of Oro Chile and The Russells, for themselves and their
      respective Representatives, hereby forever releases and discharges Trend and
      its
      Representatives, jointly and severally, from any and all causes of action,
      actions, judgments, demands, liens, indebtedness, damages, losses, claims,
      penalties, interest and other liabilities of whatever nature, whether known
      or
      unknown, suspected or unsuspected, past, present or future, whether for damages
      or equitable relief of any sort, including without limitation, economic damages,
      lost profits, consequential damages, exemplary damages, punitive damages, direct
      damages or indirect damages, asserted or which could have been asserted by
      each
      of Oro Chile or The Russells or on their behalf in any action in any forum,
      including all common law, civil law, civil code, statutory, tort, contractual,
      or other claims and claims to attorneys’ fees up to and including the Effective
      Date. Without limiting the generality of the foregoing, and except as
      specifically set forth in the Share Purchase Agreement Assignment and Asumption,
      each of Oro Chile and The Russells specifically releases, indemnifies and holds
      harmless Trend and its Representatives, jointly and severally, from all claims,
      demands, guarantees and other liabilities of whatsoever kind and character
      in
      any manner whatsoever arising from the facts or allegations in respect of the
      ownership and operation of DMC Cayman, AGI, LSI, CMD and DCEM.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    6.
      Further
      Assurances.
      Each of
      Trend, Oro Chile and The Russells shall cooperate in order to complete the
      transactions contemplated in this Closing Memorandum. In connection therewith,
      from time to time after the Closing, upon request and without further
      consideration, Trend, Oro Chile and The Russells, as appropriate, will execute
      and deliver such documents and instruments; assist in obtaining the necessary
      approvals; and take such other action as may be necessary, in order to effect
      the transactions contemplated in this Closing Memorandum.

     

    7.
      Letter
      Agreement.
      Trend,
      Oro Chile and The Russells entered into a letter agreement dated October 3,
      2005, and fully executed as of October 4, 2005 (the “Letter Agreement”), which
      Letter Agreement grants to Trend the right to repurchase a thirty percent (30%)
      interest in DMC Cayman (the “Repurchase Right”). The Letter Agreement and the
      Repurchase Right are incorporated into this Closing Memorandum by this
      reference.

     

    8.
      Governing
      Law and Jurisdiction.
      

     

    a. This
      Closing Memorandum shall be governed by and construed in accordance with the
      laws of the State of Colorado, without giving effect to Colorado conflicts
      of
      law principles. Each of Trend, Oro Chile and The Russells irrevocably submits
      to
      the exclusive jurisdiction of the federal courts of the United States and state
      courts of Colorado located in Denver, Colorado, with regard to any action,
      suit,
      proceeding, claim or counterclaim arising out of or relating to this Closing
      Memorandum. EACH OF TREND, ORO CHILE AND THE RUSSELLS IRREVOCABLY WAIVES ALL
      RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, CLAIM OR COUNTERCLAIM
      ARISING OUT OF OR RELATING TO THIS CLOSING MEMORANDUM.

     

    b. In
      any
      action suit, proceeding, claim or counterclaim brought to enforce this Closing
      Memorandum or any of its provisions, the party that substantially prevails
      in
      any such action, suit proceeding, claim or counterclaim (the “Prevailing Party”)
      shall recover its costs, fees and expenses, including, but not limited to,
      the
      reasonable costs, fees and expenses of attorneys and outside experts
      (collectively, “Expenses”), from the other party (the “Non-Prevailing Party”),
      and the court shall be so instructed to determine which party is the Prevailing
      Party, to grant recovery of the Expenses incurred by the Prevailing Party,
      and
      to order the Non-Prevailing Party to pay forthwith the Expenses of the
      Prevailing Party.

     

    [REMAINDER
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        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Closing Memorandum to
      be
      executed all as of the Effective Date.

     

    
      	TREND
              MINING
              COMPANY	 	 	ORO
              CHILE
              LLC
	 	 	 	 
	By: 
/s/
              Thomas A. Loucks	 	 	By: 
              /s/
              Peter Babin
	
              
                

              

              Name:
                Thomas Loucks

              Title: President

            	 	 	
              
                

              

              Name: Peter Babin

              Title: Manager

            
	 	 	 	 
	 	 	 	 
	/s/ David H. Russell	 	 	/s/ Susan T. Russell
	
              
David
              H. Russell	 	 	
              
Susan
              T. Russell
	 	 	 	 
	 	 	 	 
	/s/ David H. Russell
              III 	 	 	 
	
              
David
              H. Russell III	 	 	 

    

     

    
      
        
        

      

      
        9

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