Document:

EXHIBIT 10.21

                            MATLEY PLAZA PARTNERSHIP
                               1537 KLOSTERS COURT
                            ALPINE MEADOWS, CA 96146

                                 LEASE AGREEMENT

Lessor hereby leases to Lessee and Lessee hereby hires from Lessor the premises
hereinafter described on the terms and conditions set forth in this Lease
Agreement (hereinafter referred to as "Lease").

                             BASIC LEASE PROVISIONS

The words, figures, and definitions set forth in Paragraphs A - L, inclusive,
are part of this Lease wherever appropriate reference is made thereto, unless
modified elsewhere in this Lease.

A.   Date of the Lease:               April 1, 2004

     Projected commencement date:     April 1, 2004

B.   Lessor:                          Matley Plaza Limited Partnership

C.   Lessors Address for Notices:     1537 Klosters Court
                                      Alpine Meadows, CA 96146

D.   Lessee:                          WESTERN GOLDFIELDS, INC.
E.   Lessee's Trade Name:             WESTERN GOLDFIELDS, INC.

F.   Lessee's Address for Notices:    961 MATLEY LANE SUITE 120

G.   Matley Plaza: The property outlined on the Site Plan attached hereto as
     Exhibit  "A".  The property outlined on the Site Plan is referred to herein
     as  the  "Commercial  Center".

               City:               RENO
               County:             WASHOE
               State:              NEVADA
               Address or nearest streets:     961 Matley Lane,
                                               Reno, NV 89502

H.   Premises: The area depicted on Exhibit "B" to this Lease containing the
     following  approximate  measurements:

     Total area:  2840 SQUARE FFRT OF OFFICE
                  1830 SQUARE FEET OF WAREHOUSE
                  570 SQUARE FEET OF ACCESSED COMMON AREA

I.   Permitted Use OFFICES AND WAREHOUSE

J.   Term:  TWO YEARS, RENEWABLE FOR ONE-TWO YEAR PERIOD

Minimum (Annual) Rent: $53,328.00 paid per year. $4444.00 per month ($1.10 SF
FOR OFFICE & S.55 SF FOR WAREHOUSE AND RECEPTION AREA AND RESTROOMS) for the
first two years. Years three and four will have a 5% increase in rent to
$55994.40 per year paid $4666.20 per month.

K.   Security Deposit $4444.00

L    PARTIES

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                                 LEASE AGREEMENT

I.   PARTIES

     This  Lease  is  made  APRIL 1, 2002 between MATLEY PLAZA PARTNERSHIP, as a
Partner  ("Lessor"),  whose  address  is 1537 Klosters Court, Alpine Meadows, CA
96146,  WESTERN  GOLDFIELDS,  INC. , ("Lessee") whose address is 961 Matley Lane
Suite  120.

     WITNESSETH

     WHEREAS,  Lessor is the owner of, or has the unqualified tight to lease the
Property  more  particularly  described  below;  and

     WHEREAS,  Lessee is willing to lease such Property from Lessor according to
their  terms  and  conditions  as  set  forth  herein.

     NOW  THEREFORE,  in  consideration  of  the  foregoing  and  other good and
valuable  consideration herein, the sufficiency of which is hereby acknowledged,
the  parties  hereto  agree  as  follows:

SECTION 1.01 -  PREMISES:

     Lessor does hereby lease to Lessee, and Lessee hereby hires from Lessor the
following  Premises  (hereinafter  referred  to  as  the  "Premises"),  more
particularly  described  as  follows:

     961  Matley  Lane,  Suite  120
     Reno,  NV  89502

SECTION 2.01 - BUSINESS NAME:

     The  name  of  such  business will be WESTERN GOLDFIELDS INCLessee will be
solely  responsible  for any costs of changing the name as it is featured in any
signs  of the MATLEY PLAZA COMMERCIAL CENTER or in any business, advertising, or
like  materials  containing such name emanating from the MATLEY PLAZA COMMERCIAL
CENTER.

SECTION 2.02 - USE:

     The  Premises  shall  be  used  and  occupied  by  Lessee for the following
purposes,  and  not  for  other  purpose  whatsoever without obtaining the prior
written  consent  of  Lessor:  OFFICES  AND  WAREHOUSE

SECTION 3.01 - TERM:

     The  Term  of  the Lease shall be for two years commencing on April 1, 2004
and ending an March 31, 2006. Lessee shall have the right to renew the lease for
a  two  year  period  commencing  on April 1, 2006 and ending on March 31, 2008.

If Lessee shall remain in possession of the Premises after the expiration of the
Term of this Lease, such possession shall be as a month-to-month Lease, during
which the rent shall be payable at a ten (10%) percent annual rent rate increase
in effect during the last month of the Term, and all other provisions of the
Lease shall be applicable, including those provisions which may become
applicable at the expiration of the Term of this Lease. Should the
month-to-month tenancy continue beyond a six (6) month period from the
expiration, then the rent payable shall increase an additional twenty (20%)
percent above the rate in effect during the previous month.

SECTION 3.02 - LESSEE'S VOLUNTARY BEGINNING:

     If  Lessee  voluntarily  chooses to, and does open for business at any time
before the beginning of the Term as contemplated under this Lease, then such day
of  opening  will  constitute  the  actual  beginning  of  the  Term.

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SECTION 3.03 - DELAY IN POSSESSION

     Notwithstanding  said  commencement  date,  if for any reason Lessor cannot
deliver  possession  of the Premises to Lessee on said date, Lessor shall not be
subject  to  any liability therefore, nor shall such failure affect the validity
of  the  Lease or the obligations of Lessee hereunder or extend the Term hereof,
but in such case, Lessee shall not be obligated to pay rent or perform any other
obligation  of  Lessee under the terms of this Lease, except as may be otherwise
provided  in this Lease, until possession of the Premises is-tendered to Lessee;
provided,  however,  that  if  Lessor shall not have delivered possession of the
Premises  within  ninety  (90)  days  from saidcommencement date, Lessee may, at
Lessee's option, by notice in writing to Lessor within ten (10) days thereafter,
terminate  this  Lease,  in which event the parties shall be discharged from all
obligations hereunder, provided further, however, that if such written notice of
Lessee  is  not mailed to Lessor within said ten (10) day period, Lessee's right
to  cancel  this  Lease  hereunder shall terminate and be of no further force or
effect.

SECTION 4.01 - RENT AND SECURITY DEPOSIT:

     Lessee shall pay to Lessor as minimum monthly rent, without prior notice of
demand,  the  sum  of  Four thousand four hundred forty dollars even in advance,
beginning on the date the Term commences and continuing thereafter. Monthly rent
for  the  first  month  or  portion  of  it  shall  be paid on the date the Term
commences.  Monthly  rental  for  any  partial month shall be-prorated. The Term
commences  on  April  1,  2004.  All rent shall be paid to Lessor at the address
above  specified  for  Lessor.

     If  this  Lease terminates before the expiration date for any reasons other
than  Lessee's  default,  month  rental  shall  be  prorated  to  the  date  of
termination,  and Lessor shall immediately repay to Lessee all rent then prepaid
and  unearned.

SECTION 5.01 - REAL PROPERTY TAXES:

     Lessee  shall  pay  its  proportionate share of all real property taxes and
general  and  special  assessments  ("real property taxes"), levied and assessed
against  the  building, other improvements, and land of which the Premises are a
part.

     Lessee's  proportional  share shall be the ratio of the total real property
taxes  levied and assessed against the building, other improvements, and land of
which  the  Premises  are  a  part  at  a  rate  of  14  percent.
                                                     --

     Each  year  lessor  shall notify Lessee of Lessor's calculation of Lessee's
proportionate  share  of  the  real property taxes and together with such notice
shall  furnish  Lessee  with  a  copy  of  the  tax  bill.  Lessee shall pay its
proportionate  share  of  the real property taxes quarterly along with other CAM
costs  as  outlined  in  Section  7.01  of  this  Lease.

SECTION 6.01 - PERSONAL PROPERTY TAXES:

     Lessee  shall  pay before delinquency all taxes, assessments, license fees,
and  other  charges  that  are  levied  and  assessed  against Lessee's personal
property  installed  or  located  in or on the Premises, and that become payable
during  the  term.

SECTION 7.01 - MAINTENANCE:

     1.   LESSOR'S  OBLIGATIONS:  Subject  to  the  provisions of Section 15 and
except  for  damage  caused  by  any negligent or intentional act or omission of
Lessee  and Lessee's agents, employees or invitees, Lessor, at Lessor's expense,
shall keep in good order, condition, and repair the foundations, exterior walls,
and  exterior  roof  of the Premises. Lessor shall not, however, be obligated to
paint  such exterior walls, windows, doors, or plate glass. Lessor shall have no
obligation  to make repairs under this Paragraph 7.01.1, until a reasonable time
after  receipt  of  written  notice  of  the  need  for  such  repairs.

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     2.   LESSEE'S  OBLIGATIONS:

          (a)  Subject  to  the  provisions  of Sections 16 and 7.01, Lessee, at
Lessee's  expense,  shall keep in good order, condition, and repair the Premises
and  every  part  thereof,  regardless  of  whether  the  damaged portion of the
Premises  or the means of repairing the same are accessible to Lessee, including
and  without  limitation  thereto, all plumbing, electrical lighting facilities,
fire  detection  systems  including  sprinkler  system  maintenance repair, HVAC
system,  and  any  and  all movable or mechanically operated equipment or device
within  the  Lessee's  Premises.

          (b)  Lessor  will replace all broken glass within reasonable time with
respect  to any glass featured on the exterior of Lessee's space, whether or not
the  same  glass  is  also  contained  on  the interior of the space, whether at
Lessee's request or on Lessor's initiative, but all such replacements will be at
Lessor's expense unless broken by Lessee or his agents. In that event it will be
billed  to  and  immediately  payable  by  Lessee,

          (c)  Lessee  shall  cover a prorated portion of all costs to supervise
and administer said common area maintenance, parking lots, sidewalks, driveways,
and  other  areas  used  in  common  by the Lessee or occupants of the Premises.
Common  area maintenance to be passed through to Lessees on a prorated basis may
include, but not be limited to parking lot sweeping and maintenance, landscaping
maintenance,  and  exterior  light maintenance. Lessor shall furnish to Lessee a
statement  showing  the  total  common area costs, Lessee's share of common area
costs  for  the accounting period, within thirty (30) days after the end of each
accounting  period,  covering the accounting period just ended. Said costs shall
include  such  fees  as  may  be  paid to a third party in connection with same.

          (d)  Upon  the  expiration  or early termination of this Lease, Lessee
shall  surrender  the  Premises  in the same condition as received, broom clean,
ordinary  wear  and  tear and damage by fire, earthquakes, Act of God, disrepair
occasioned  by Lessor's failure to comply with the provisions of section 7.01.1,
or  the elements alone excepted. Lessee, at its sole cost and expense, agrees to
repair  any damage to the Premises caused delay by Lessee in so surrendering the
Premises, including without limitation; any claims made by any succeeding Lessee
founded  on  such  delay.

          (e)  All  heating, air conditioning, and ventilation equipment for the
Lessee's space will be maintained and serviced by the Lessor and the cost of the
maintenance  and  servicing  will  be  billed  directly to the Lessee and is the
Lessee's  responsibility  for  payment

          (f)  CAM  AND  PASS-THROUGH  COSTS: All pass-through costs as detailed
above  in Sections 5.01, Property Taxes; 7.01, Maintenance; 8.01, Utilities; and
9.01,  Insurance,  shall be Lessee's responsibility to pay his prorated share of
these  costs.  Lessee's  prorated  share of all CAM and pass-through costs is 14
percent  of  total  costs.

     3.   LESSOR'S  RIGHTS:  In  the  event  Lessee  fails  to  perform Lessee's
obligations  under this Section, Lessor shall give Lessee notice to do such acts
as  are  reasonably  required  to maintain the Premises; if Lessee shall fail to
commence  such work and diligently prosecute it to completion, then Lessor shall
have the right, but not the obligation, to do such acts and expend such funds at
the  expense  of  Lessee as are reasonably required to perform such work. Lessee
shall  pay any amount so expended by Lessor promptly after demand, with interest
at  ten  (10) percent per annum from the dale of such work. Lessor shall have no
liability  to Lessee for any damage, inconvenience, or interference with the use
of the Premises by Lessee as a result of performing any such work, excepting any
damage, loss, expense, or liability ari sing from Lessor's negligence or that of
its  employees,  agents,  or  contractors.

SECTION 8.01 - UTILITIES:

     Lessee  shall  pay  prior  to  delinquency  for  all utilities and services
furnished  to  or used by it, including without limitation electricity, gas, and
telephone  service.  Lessor

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shall  supply  separate  meters as required for gas and electric to the Lessee's
own  space  and use. Lessee to pay its own gas, electrical, and telephone use by
Lessee.

     Lessor  shall supply a dumpster as existing for normal trash removal of the
entire building. Should the Lessee need additional trash removal, it shall be at
Lessee's  cost.

SECTION 9.01 - INSURANCE:

     1.   LIABILITY  INSURANCE:  Lessee  shall, at Lessee's expense, procure and
maintain  at  all times during the Term of this Lease, a policy of comprehensive
public  liability  insurance  insuring  Lessor  and Lessee against any liability
&rising out of the ownership, use, occupancy, or maintenance of the Premises and
appurtenant  areas.  Such insurance shall at all times be in the amount not less
than  one  million  ($1,000,000.00)  dollars  per  occurrence  and  one  million
($1,000.000.00)  dollars  aggregate  for  any and all bodily injury and property
damage  losses.  The  limits  of such insurance shall not limit the liability of
Lessee. If the Premises are part of a larger property, said insurance shall have
a  Lessor's  protective  liability  endorsement  attached  hereto, All insurance
required  hereunder  shall  be  with  companies  rated  AAA  or better in Best's
Insurance  Guide.  Lessee  shall  deliver  to  Lessor  Certificates of Insurance
evidencing the existence and amounts of such insurance with loss payable clauses
satisfactory  to Lessor, provided that in the event Lessee fails to procure same
at  Lessee's  expense  after  ten (10) days prior written notice. No such policy
shall  be  cancelable  or subject to reduction of coverage or other modification
except after thirty (30) days prior written notice to Lessor by the insurer. All
such  policies  shall  be written as primary policies, not contributing with and
not  in  excess  of  coverage  which  the Lessor may carry. Lessee shall, within
twenty  (20)  days prior to the expiration of such policies, furnish Lessor with
renewals  or  binders  or Lessor may order such insurance and charge the cost to
Lessee,  which amount shall be payable by Lessee upon demand.  Lessee shall have
the  right  to  provide  such  insurance  coverage  pursuant  to blanket polices
obtained  by  Lessee, provided such blanket polices expressly afford coverage to
the  Premises  and  to  Lessee  as  required  by  this  Lease.

     2.   LESSOR'S  LIABILITY  AND  PROPERTY INSURANCE OBLIGATION.  Lessor shall
obtain  and  keep  in  force  during the term of this Lease a policy of Combined
Single  Limit  Bodily  Injury and Property Damage Insurance insuring Lessor, but
not  Lessee,  against any liability arising out of the ownership, use, occupancy
or  maintenance  of  the  Matley  Plaza  property  in  an  amount  not less than
$1,000,000.00  per occurrence. Lessor shall also obtain and keep in force during
the term of this Lease a policy or policies of insurance covering loss or damage
to  the  Matley  Plaza  property,  but not Lessee's personal property, fixtures,
equipment  or  tenant  improvements,  in  an  amount  not  to  exceed  the  full
replacement  value  thereof, ass the same may exist from time to time, providing
protection  against  all  perils  included  within  the  classification of fire,
extended  coverage,  vandalism,  malicious mischief, flood (in the event same is
required  by  a  lender  having a lien on the Premises) special extended perils,
("all  risk",  as  such  term is used in the insurance industry), and such other
insurance  as  Lessor  deems  advisable.

     3.   LESSOR'S  RIGHTS:  Lessor may inspect the Premises at reasonable times
on  twenty-four  (24)  hours  notice  to  Lessee that the inspection will be for
purposes of determining insurance requirements. After such inspection, if Lessor
gives  written  notice  to  Lessee  that particular items are not covered or are
inadequately  covered  by  insurance  on  the  Premises, Lessee will immediately
proceed  to  so  cover  such items and furnish Lessor with copies of policies as
above  provided.

SECTION 10.01 - ASSIGNMENT AND SUBLETTING:

     1.   LESSOR'S  CONSENT  REQUIRED:  Lessee  shall  not  assign,  transfer,
mortgage,  pledge,  hypothecate, or encumber this Lease or any interest therein,
and  shall not sublet the Premises or any part hereof, without the prior written
consent  of Lessor and any attempt to do so without such consent being first had
and  obtained  shall be wholly void and shall constitute a breach of this Lease.

     2.   REASONABLE  CONSENT: If Lessee complies with the following conditions,
Lessor  shall  not  unreasonably  withhold  its consent to the subletting of the

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Premises  or  any portion thereof. Lessee shall submit in writing to Lessor: (a)
the name and legal composition of the proposed sub-Lessee; (b) the nature of the
proposed  sub-Lessee's business to be carried on the Premises; (c) the terms and
provisions  of  the proposed sublease; (d) such reasonable financial information
as  Lessor  may  request  concerning  the  proposed  sub-lessee.

     3.   NO RELEASE OF LESSEE: No consent by Lessor to any subletting by Lessee
shall  relieve Lessee of any obligation to be performed by the Lessee under this
Lease,  whether occurring before or after such subletting. The consent by Lessor
to  any  subletting  shall  not  relieve  Lessee  form  the obligation to obtain
Lessor's  express  written  consent to any subletting. The acceptance of rent by
Lessor from any other person shall not be deemed to be a waiver by Lessor of any
provision  of  this Lease or to be consent to any subsequent subletting or other
transfer. The terms of this paragraph shall not apply to an approved assignment.

     4.   ATTORNEY'S  FEES:  In  the event Lessor shall consent to a sublease of
assignment under this Section 9, Lessee shall pay Lessor's reasonable attorney's
fees  not  to  exceed five hundred ($500.00) dollars incurred in connection with
given  such  consent.

SECTION 11.01 -ALTERATIONS:

     Lessee  shall  not  make  any  structural  or  exterior  alterations to the
Premises  without  Lessor's  written  consent,  which  consent  shall  not  be
unreasonably  withheld. Lessee at its cost shall have the right to make, without
Lessor's  consent,  non-structural  alterations  to the interior of the Premises
that  Lessee  requires  in  order to conduct its business therein. In making any
alterations  having  a  value greater than one thousand ($1,000.00) dollars that
Lessee  has  the  right  to  make,  Lessee  shall  comply  with  the  following:

     A.   The  alterations  shall  not  be  commenced until seven (7) days after
Lessor  has  received notice from Lessee stating the date the alterations are to
commence.

     B.   The  alterations  shall  be  in  conformance with all applicable local
agency  permits,  including  but  not  limited  to  State  or  Federal  laws and
regulations and all required local building and/or fire Marshall permits. Lessee
will  procure  all  permits  at  Lessee's  expense.

     C.   The  performed  in  a  manner  that  will not interfere with the quiet
enjoyment  of  the  other  Lessees  in  the  building  in which the Premises are
located.

     At  the  option  of Lessor, Lessee shall have the obligation to remove from
the  Premises  immediately before the expiration of the Term, alterations Lessee
has  made  to  the  Premises.  Lessee  will be responsible for any damage to the
premises  as  a  result  of the removal of any alterations. Any alterations that
Lessor  does  not  require Lessee to remove shall become the property of Lessor.
All  tenant  improvements  installed  in  Lessee's  space  prior to the original
occupancy  date  shall remain as the Lessor's property, and shall not be removed
by  Lessee.

     The Lessee shall not cause any mechanic's liens (excepting those arising by
operation  of  law securing the payment of monies not yet due and payable) to be
filed  against  the  premises subject to this Lease, and Lessee shall indemnify,
hold  harmless,  and  commit  not  waste upon or to the Premises subject to this
Lease,  and  upon expiration of this Lease, the Lessee shall surrender to Lessor
the  Premises  subject  to  this  Lease in the same order and condition in which
Lessee  received  the  Premises,  the effects of ordinary wear and tear, Acts of
God,  casualty,  insurrection,  riot,  public  disorder, disrepair occasioned by
Lessor's  failure  to  perform  under  section  5.01,  or permanent alterations,
additions,  and  improvements  made  by  Lessee  excepted.

SECTION 12.01 - SIGNS:

     Lessee, at its cost, shall have the right to place, construct, and maintain
an  exterior  sign  on  the east entrance of the leased premises advertising its
business.  Lessor  shall have the right to approve such signs, and any sign that
Lessee  has  the  right  to place, construct, and maintain shall comply with all
applicable  laws.  Upon  termination  of  the  tenancy

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herein  created, Lessee shall remove any sign so placed and repair any damage or
injury  to  the  Premises  caused  thereby.

SECTION 13.01 -ACCESS:

     Lessor and its authorized representatives shall have the right to enter the
Premises  during  Lessee's business hours and at all other reasonable times with
twenty-four  (24)  hours  prior  notice  for  the  purpose  of:

     1.   Determining  whether  the  Premises  are in good condition and whether
Lessee  is  complying  with  its  obligations  under  this  Lease;

     2.   Do  any  necessary  maintenance  and  to  make  any restoration to the
Premises  or  the  building  and  other  improvements  in which the Premises are
located  that  Lessor  has  the  right  or  obligation  to  perform;

     3.   Posting  "for sale" signs at any time during the Term, or posting "for
rent" or "for lease" signs during the last four (4) months of the Term or at any
time  after  the  Lessee  is  in  default  of  the  Lease,

     If  Lessor's  entry  and  activities  on  the Premises result from Lessee's
default,  Lessee  shall  not  be  entitled  to  any  abatement  of  rent.

     Lessor  shall  conduct  its  activities  on the Premises as allowed in this
Section  11.01  in  a  manner  that will cause the least possible inconvenience,
annoyance,  or  disturbance  to  Lessee.

SECTION 14.01 - INDEMNITY:

     1.   LESSEE'S  INDEMNIFICATION:  Lessee  shall  indemnify  and  hold Lessor
harmless  from  and  against  any  and all claims of liability for any injury or
damage  to  any person or property arising from Lessee's use of the Premises, or
from  the  conduct  of  Lessee's  business, or from any activity, work, or thing
being  done,  permitted,  or  suffered  by  Lessee  in  or about the Premises or
elsewhere.  Lessee  shall  further  indemnify  and hold Lessor harmless from and
against  any  obligation  of  Lessee's part to be performed under this Lease, or
arising  from  any  negligence  of  Lessee  or  Lessee's agents, contractors, or
employees, and from and against all costs, reasonable attorney's fees, expenses,
and  liabilities  incurred  in  the  defense  of any such claim or any action or
proceeding  brought  thereon.  In  the event any action or proceeding is brought
against  Lessor  by  reason  of  any such claim, Lessee, upon notice from Lessor
shall defend same at Lessee's expense by counsel satisfactory to Lessor. Lessee,
as  a  material  part of the consideration to Lessor, hereby assumes all risk of
damage  to property or injury to persons in, upon, or about the Premises arising
from any cause excepting the acts or omissions of Lessor, its employees, agents,
and  contracts,  and  Lessee hereby waives all claims in respect thereof against
Lessor.

     2.   LESSOR'S  INDEMNIFICATION:  Lessor  shall  indemnify  and  hold Lessee
harmless  from  and  against  any  and all claims of liability for any injury or
damage  to  any person or property arising from Lessor's use of the Premises, or
from  the  conduct  of  Lessor's  business,  or from in or about the Premises or
elsewhere.  Lessor  shall  further  indemnify  and hold Lessee harmless from and
against any and all claims arising from any breach or default in the performance
of  any obligation of Lessor's part to be performed under this Lease, or arising
from  any negligence of Lessor's agents, contractors, or employees, and from and
against  all  costs,  reasonable  attorney's  fees,  expenses,  and  liabilities
incurred  in  the  defense of any such claim or any action or proceeding brought
thereon.  In  the  event  any  action or proceeding is brought against Lessee by
reason  of  any  such claim, Lessor upon notice from Lessee shall defend same at
Lessor's  expense.

     3.   EXEMPTION OF LESSOR FROM LIABILITY: Except for loss, injury, or damage
caused  by  Lessor's  employees,  agents, or contractors and Lessor's failure to
perform  under  Section  5.01, Lessor shall not be liable for injury to Lessee's
business  or  loss of income therefrom or merchandise or property of Lessee, its
employees,  invitees,  customers,  caused  by  or  resulting  from  fire, steam,
electricity,  gas,  water, or rain, which may be sustained by the person, goods,
wares,  merchandise,  or  property  of  Lessee,  its

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employees,  invitees,  customers, agents, contractors, or any other person in or
about  the  Premises from the breakage, leakage, obstruction or other defects of
the  pipes,  sprinklers,  wires,  appliances,  plumbing,  air  conditioning,  or
lighting  fixtures  of  the same, whether the said damage or injury results from
conditions  arising  upon the Premises or upon other portions of the building or
which  the  Premises are a part, or from other sources or places, and regardless
of whether the cause of such damage or injury of the means of repairing the same
is  inaccessible  to  Lessee. Lessor shall not be liable for any damages arising
from  any  act  or neglect of any other Lessee, if any, of the building in which
the  Premises  are  located.

SECTION 15.01 - WAIVER OF SUBROGATION

     Lessor  and Lessee each hereby waive any and all rights of recovery against
the other or against the officers, employees, agents, and representatives of the
other,  on  account  of  loss  or damage occasioned to such waiving party of its
property  or  the  property of others under its control caused by fire or any of
the  extended coverage risks described in Section 7.01.2 to the extent that such
loss  or  damage  is  insured against under any insurance policy in force at the
time  of  such  loss  or  damage.  The  insuring party shall, upon obtaining the
policies  of  insurance  required under this Lease, give notice to the insurance
carrier or carriers that the foregoing mutual waiver of subrogation is contained
in  this  Lease.

SECTION 16.01 - DAMAGE OR DESTRUCTION

     1.   PARTIAL  DAMAGE  -  INSURED: In the event improvements on the Premises
are  damaged by any casualty which is covered under an insurance policy required
to  be maintained pursuant to Section 7.01, then Lessor shall repair such damage
as  soon  as  is reasonably possible and this Lease shall continue in full force
and  effect.

     2.   TOTAL  DESTRUCTION:  If  the Premises are totally destroyed during the
Term  of  this  Lease  from  any  cause  whether or not covered by the insurance
required  under  Section  7.01  (including  any  destruction  required  by  any
authorized public authority), this Lease shall automatically terminate as of the
date of aiirh total within thirty (30) days after the date of occurrence of such
damage. Any adjustments made to previous payments should be refunded based on an
allocation  per  day,  week,  or  month.

     3.   DAMAGE  NEAR  END OF THE TERM: If the Premises are partially destroyed
or  damaged during the last six (6) months of the Term of this Lease, Lessor may
at  Lessor's option cancel and terminate this Lease as of the date of occurrence
of  such damage by giving written notice to Lessee of Lessor's election to do so
within  thirty  (30)  days  after  the  date  of occurrence of such damage.  Any
adjustments  made to previous payments should be refunded based on an allocation
per  day,  week,  or  month.

     4.   LESSOR'S  OBLIGATIONS:  The Lessor shall not be required to repair any
injury  or  damage  by  fire  or  other  cause,  or  to  make any restoration or
replacement of any paneling, decorations, office fixtures, partitions, railings,
ceilings,  floor  covering,  equipment,  machinery,  or  fixtures,  or any other
improvements or property installed in the Premises by Lessee or at the direct or
indirect  expense of Lessee. Lessee shall be required to restore or replace same
in  the  event  of  damage.

     5.   LESSOR'S  REMEDIES:  If Lessor shall be obligated to repair or restore
the  Premises  under  this  Section  14.01 and shall not commence such repair or
restoration  within  ninety (90) days after such obligation shall accrue, Lessee
at  Lessee's  option  may  cancel  and terminate this Lease by written notice to
Lessor  at  any time prior to the commencement of such repair or restoration. In
such  event  this  Lease  shall  terminate  as  of  the  date  of  such  notice.

     6.   TERMINATION  -  ADVANCE  PAYMENTS:  Upon  termination  of  this  Lease
pursuant  to  Section  14.01,  an  equitable adjustment shall be made concerning
advance  rent and any advance payment made by Lessee to Lessor. Lessor shall, in
addition,  return  to  Lessee  so  much  of Lessee's security deposit as has not
therefore  been  applied  by  Lessor.  Any adjustments made to previous payments
should  be  refunded  based  on  an  allocation  per  day,  week,  or  month.

                                        8
<PAGE>
SECTION 17.01 - CONDEMNATION:

     1.   LEASE  TERMINATED:  If  the  Premises or any portion thereof are taken
under  the  power  of  eminent domain, or sold by Lessor under the threat of the
exercise  of  said power (all of which is herein referred to as "condemnation"),
this  Lease shall terminate as to the part so taken as of the date of condemning
authority  takes  title  of  possession,  taken  as  of  the  date of condemning
authority  takes  title  of  possession, whichever occurs first if more than ten
(10)  percent  of  the  floor area of any building on the Premises, or more than
twenty-five  (25)  percent  of  the  land  area of the Premises not covered with
buildings,  is taken by condemnation, either Lessor or Lessee may terminate this
Lease,  as  of  the  date of condemning authority takes possession, by notice in
writing  of  such  election  within  twenty  (20)  days  after Lessor shall have
notified  Lessee  of  the  taking,  or in the absence of such notice then within
twenty  (20) days after the condemning authority shall have taken possession. If
this  Lease is terminated under threat of condemnation, Lessee shall be entitled
to  a  prorated  portion  of  any  rentals  paid  beyond  the  effective date of
condemnation.

     2.   LEASE NOT TERMINATED: If this Lease is not terminated by either Lessor
or  Lessee,  then  it shall remain in full force and effect as to the portion of
the  Premises  remaining,  provided  the rent shall be reduced in the proportion
that  the  floor  area  of  the buildings taken within the Premises bears to the
total  floor  area  of  all buildings located on the Premises. In the event this
Lease  is  not  so  terminated,  then  Lessor  agrees, at Lessor's sole cost, to
restore the Premises to a complete unit of like quality and character as existed
prior  to the condemnation as soon as is reasonably possible. All wards from the
taking  of  any part of the Premises or any payment made under the threat of the
exercise of any part of the Premises or any payment made under the threat of the
exercise  of  power  of  eminent domain shall be the property of Lessor, whether
made as compensation for diminution of value of a leasehold or for the taking of
the  fee  or  as  compensation for diminution of value of a leasehold or for the
taking  of the fee or as severance damages; provided, however, that Lessee shall
be  entitled  to  any  award  for  loss or damage to Lessee's trade fixtures and
removable  personal  property. In the event that this Lease is not terminated by
reason  of  such  condemnation, Lessor shall, to the extent of severance damages
received  by  Lessor  in connection with such condemnation, repair any damage to
the  Premises  caused  by such condemnation except to the extent that Lessee has
been  reimbursed  therefore  by  the condemning authority.  Lessee shall pay any
amount  in  excess  of  such severance damages required to complete such repair.

     3.   LESSOR'S  AND  LESSEE'S  RIGHT  UNDER  CONDEMNATION:  Lessor  will  be
entitled  exclusively  to  any  condemnation  award for the real property of the
building,  and  Lessee will not be entitled to any part of such an award or as a
result of any purported interest or time remaining under its Lease.  Lessee will
have  a  claim exclusively for expenses for any other portion within it, for any
loss of business, and for any losses resulting to trade fixtures not a permanent
part  of the building. If this Lease is terminated under threat of condemnation,
Lessee  shall  be  entitled to a prorated portion of any rentals paid beyond the
effective  date  of  condemnation.

SECTION 18.01 - DEFAULT, REMEDIES:

     1.   DEFAULT:  The  occurrence  of  any of the following shall constitute a
material  default  and  breach  of  this  Lease  by  Lessee:

          (a)  Any failure by Lessee to pay the rent or any other monetary sums
required to be paid hereunder where such failure continues for ten (10) days
after written notice thereof by Lessor to Lessee;

          (b)  The abandonment or vacation of the Premises by Lessee;

          (c)  A material failure by Lessee to observe and perform any other
provisions of this Lease to be observed or performed by Lessee, where such
failure continues for twenty (20) days after written notice thereof by Lessor to
Lessee, provided, however, that if the nature of such default is such that the
same cannot reasonably be cured within such twenty (20) day period, Lessee shall
not be deemed to be in default if

                                        9
<PAGE>
Lessee shall within such period commence such cure and thereafter diligently
prosecute the same to completion;

          (d)  The making by Lessee of any general assignment of general
arrangement for the benefit of creditors; the filing by or against Lessee of a
petition to have Lessee adjudge, bankrupt, or of a petition for reorganization
of arrangement under any law relating to bankruptcy (unless, in the case of a
petition days); the appointment of a trustee or receiver to take possession of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where possession is not restored to Lessee within thirty
(30) days; or the attachment, execution, or other judicial seizure of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where such seizure is not discharged within thirty (30)
days.

     2.   REMEDIES:  In  the  event  of  any  such material default or breach by
Lessee, Lessor may at any time thereafter, with or without notice and demand and
without  limiting  Lessor  in  the  exercise of any right or remedy at law or in
equity  which  Lessor  may  have  by  reason  of  such  default  or  breach:

          (a)  Maintain this Lease in full force and effect and recover the rent
and other monetary charges as they become due, without terminating Lessee's
right to possession, irrespective of whether Lessee shall have abandoned the
Premises. In the event Lessor elects to not terminate the Lease, Lessor shall
have the right to attempt to re-let the Premises at such rent and upon such
conditions and for such a term, and to do all acts necessary to maintain or
preserve the Premises as Lessor deems reasonable and necessary without being
deemed to have elected to terminate the Lease including removal of all persons
and property from the Premises, such property may be removed and stored in a
public warehouse or elsewhere at the cost of and for the account of Lessee. In
the event any such re-letting occurs, this Lease shall terminate automatically
upon the new Lessee taking possession of the Premises. Notwithstanding that
Lessor fails to elect to terminate the Lease initially, Lessor at any time
during the term of this previous default of Lessee; or

          (b)  Terminate Lessee's right to possession by any lawful means, in
which case this Lease shall terminate and Lessee shall immediately surrender
possession of the Premises to Lessor. In such event Lessor shall be entitled to
recover from Lessee all damages incurred by Lessor by reason of Lessee's default
including without limitation thereto, the following: () the worth at the time of
award of any unpaid rent which had been earned at the time of such termination;
(ii) the worth at the time of award of the amount by which theunpaid rent which
would have been earned after terminating until the time of award exceeds th
eamount of such rental loss that is proved could have been reasonably voided;
(iii) the worth at the time of award exceeds the amount of such rental loss that
is porved could have been reasonably voided; (iii) the worth at the time of
award of the amount by which the unpaid rent for the balance of the Term afer
the time of award exceeds the amount of such rental loss that is proved could be
reasonably avoided.

     As  used  in  subparagraph  (i)  above, the "worth at the time of award" is
computed by allowing interest at the rate of ten (10) percent per annum from the
date of default. As used in subparagraphs (ii) and (iii), the "worth at the time
of  award'  is  computed  by discounting such amount at the discount rate of the
U.S.  Federal  Reserve  Bank at the time of award plus one (1) percent. The term
"rent" as used in this Section 16.01, shall be deemed to be and to mean the rent
to  be  paid pursuant to Section 4.01 and all other monetary sums required to be
paid  by  Lessee  pursuant  to  the  terms  of  this  Lease.

     3.   LATE  CHARGES:  Lessee hereby acknowledges that late payment by Lessee
to  Lessor of rent and other sums due hereunder will cause Lessor to incur costs
not  contemplated  by  this  Lease,  the exact amount of which will be extremely
difficult  to  ascertain. Such costs include, but are not limited to, processing
and  accounting  charges, and late charges which may be imposed on Lessor by the
terms  of  any mortgage of trust deed covering the Premises. Accordingly, if any
installment  of  rent  or any other sum due from Lessee shall not be received by
Lessor  or  Lessor's design within ten (10) days after such amount shall be due,
Lessee  shall  pay  to  Lessor  a late charge equal to ten (10%) percent of such
overdue  amount.  The  parties  hereby  agree  that  such late charge represents

                                       10
<PAGE>
a  fair and reasonable estimate of the costs Lessor will incur by reason of late
payment  by  Lessee.  Acceptance of such late charge by Lessor shall in no event
constitute a waiver of Lessee's default with respect to such overdue amount, not
prevent  Lessor  from  exercising  any  of the other rights and remedies granted
hereunder.

     4.   DEFAULT  BY LESSOR: Lessor shall not be in default unless Lessor fails
to  perform  obligations  required of Lessor within a reasonable time, but in no
event  later  than  thirty  (30)  days after written notice by Lessee to Lessor,
specifying  wherein  Lessor  has  failed  to  perform such obligation; provided,
however, that if the nature of Lessor's obligation is such that more than thirty
(30)  days  are required for performance, then Lessor shall not be in default if
Lessor  commences  performance within such thirty (30) day period and thereafter
diligently  prosecutes  the  same  completion.

SECTION 19.01 - MISCELLANEOUS:

     1.   ESTOPPEL  CERTIFICATES:

          (a)  Lessee shall at any time not less than ten (10) days prior
written notice from Lessor execute, acknowledge, and deliver to Lessor a
statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) ani the
date to which the rent and other charges are paid in advance, if any, and (ii)
acknowledging that there are not, to Lessee's knowledge, any uncured defaults on
the part of Lessor hereunder, or specifying such defaults if any are claimed. A
prospective purchaser or encumbrance of the Premises may conclusively rely upon
any such statement.

          (b)  Lessee's failure to deliver such statement within such time shall
be conclusive upon Lessee (i) that this Lease is in full force and effect,
without modification except as may be represented by Lessor, (ii) that there are
no uncured defaults in Lessor's performance; and (iii) that not more than one
month's rent has been paid in advance.

          (c)     If Lessor desires to finance or refinance said Premises, or
any part thereof, Lessee hereby agrees to deliver to any 1 ender designated by
Lessor such financial statements of Lessee as may be reasonably required by such
lender. All such financial statements shall be received by Lessor in confidence
and shall be used only for the purposes herein set forth.

     2.   TRANSFER OF LESSOR'S INTEREST: In the event of a sale of conveyance by
Lessor  of  Lessor's interest in the Premises other than a transfer for security
purposes  only,  Lessor  shall  be relieved from and after the date specified in
such  notice  of transfer of all obligations and liabilities accruing thereafter
on the part of the Lessor, provided that any funds in the hands of Lessor at the
time  of  transfer  in  which  Lessee has an interest, shall be delivered to the
successor  Lessor.  This Lease shall not be affected by any such sale and Lessee
agrees  to attorn to the purchaser or assignee provided all lessor's obligations
hereunder  are  assumed  in  writing  by  the  transferee.

SECTION 20.01 - SUBORDINATION:

     1.   SUBORDINATION:  This  Lease  at  Lessor's  option shall be subject and
subordinate  to  all ground or underlying Lease which now exist or may hereafter
be  executed  affecting  the  Premises  or  the land upon which the Premises are
situated  or  both,  and  to  the lien of any mortgages or deeds of trust in any
amount  or amounts whatsoever now may exist against the land or improvements, or
either  thereof,  of  which  the  Premises are a part, or on or against Lessor's
interest  or  estate  therein,  or on or against any ground or underlying Lease,
without  the  necessity of the execution and delivery of any further instruments
on  the  part  of  Lessee  to  effectuate  such subordination. If any mortgagee,
trustee,  or  ground  Lessor shall elect to have this Lease prior to the lien of
its  mortgage,  deed  of  trust,  or ground Lease, and shall give written notice
thereof to Lessee, this Lease shall be deemed prior or subsequent to the date of
said  mortgage,  deed  of  trust  or  ground Lease, or the date of the recording
thereof.

                                       11
<PAGE>
     2.   SUBORDINATION AGREEMENTS: Lessee covenants and agrees to execute and
deliver upon demand without charge therefore, such further instruments
evidencing such subordination of this Lease to such existing ground or
underlying Leases and to the Lien of any such mortgages or deed of trust as may
be required by Lessor. Lessee hereby appoints Lessor, as Lessee's
attorney-at-fact, irrevocably, to execute and deliver any such agreements,
instruments, releases, or other documents.

SECTION 21.01 - MATTERS OF PERFORMANCE:

     1.   PARTIES NOT A SINGLE ENTITY: In collecting any amounts of rent or sums
payable  for  other  purposes under this Lease, or in otherwise cooperating with
Lessee under these provisions, Lessor does not become a partner, joint venturer,
shareholder,  associate  investor,  or the like in Lessee's business in any way;
but  all such provisions simply define the obligations of the parties in respect
to  their  separate  and  independent positions as parties under a lessor-lessee
relationship  toward  the  leasing  of  Premises  in 961 Matley Lane, Suite 120.

     2.   WASTE  AND  NUISANCE: Lessee will not commit waste in or at the Leased
Premises,  or  allow it to be committed, not permit maintenance of a nuisance or
any  other  matter  which  may  interfere  with the conduct of business or other
normal  enjoyment  of  the Premises of any other Lessee or invitee of 961 Matley
Lane,  suite  120or  inhabitants  of  frequenters  of  the  directly surrounding
community  of  the  commercial  center.

     3.   LESSEE'S  COMPLIANCE  WITH  LAWS:  Lessee  will  comply  with  all
governmental  requirements  respecting  the  conduct  of  business or use of the
Leased  Premises  in  a  timely and appropriate manner and at its sole cost, and
will pay and be solely responsible for all taxes, levies, assessments, licenses,
or  fines  set  out  by  any  such  authorities  directed to the conduct of such
business,  carrying  of  inventory,  utilization of personnel, arrangements with
suppliers  or  customers,  or  the  like.

     4.   LESSOR'S  RIGHT  OF  ENTRY: Lessor may enter into Lessee's Premises at
reasonable  times  with  twenty-four  (24) hours notice and while it is open for
business  and,  without  unreasonably  interfering with the course of conduct of
Lessee's  business,  engage in any activities designed to accomplished under any
relevant  provisions  of this Lease. Lessor also may enter in the same manner to
show  the  Premises  or  enclosing  structure  to  various  persons who might be
interested for reasons connected with Lease provisions, such as, but limited to,
lenders,  insurers,  prospective purchasers or tenants, and the like. Lessor may
enter  in  the  same  manner  to repair structures or improvements in the Leased
Premises or an adjoining space. No such actions may be considered a constructive
eviction.

     5.   NOTICES  AND  AUTHORIZATION:  All  rents  or  payments,  notices,  or
approvals  in writing provided for under this Lease will be sent by either party
or  certified  mail return receipt requested, to the other party as follows:  to
Lessor at Matley Plaza Limited Partnership, 1537 Klosters Court, Alpine Meadows,
CA  96146;  to  Lessee at Leased Premises.  Additional copies may be sent by any
post  to  any  other  address  where  such  parties  also  may be reached.  Such
addresses  may  be  changed  by  written  notice  of  the  addressee.

     6.   LEASE  EXECUTION  AUTHORIZATION:  The person or persons executing this
Lease  on  behalf of Lessee shall be presumed to be authorized to bind Lessee in
all  future  actions  pertaining to this Lease. Lessee agrees to be bound by the
actions  and  communications  of  such  person or persons unless Lessee notifies
Lessor  in  writing that authority to such person or persons has been terminated
and  supplies  Lessor  with  the  names  and  addresses  of  new persons who are
authorized  to  act  on  behalf  of  Lessee  in  connection  with  this  Lease.

     7.   WAIVERS:  No  waiver of any term, condition, or covenant of this Lease
may  be presumed but must be made in writing by the part so waiving to the other
party.  No  acceptance  by  Lessor from Lessee of any amount paid for any reason
under  this  Lease  in  a sum less than what is actually owing will constitute a
compromise,  settlement,

                                       12
<PAGE>
accord,  and satisfaction, or other final disposition of the amount owing in the
absence  of  writing  from  Lessor  to  the  contrary.

     8.   INTEREST  ON  OBLIGATIONS: Any payments regularly scheduled under this
Lease  as  daily,  monthly,  or  annual  charges,  whether  construed as rent or
otherwise,  will  be  due  promptly  and will bear interest from the due date of
fifteen  (15)  percent  per  annum  until  actually  paid.

     9.   PREVENTION  OF PERFORMANCE: Any prevention, delay, or stoppage of work
to  be  performed  by  Lessor or Lessee which is due to strikes, labor disputes,
inability  to  obtain  labor,  materials,  equipment,  or reasonable substitutes
therefore,  Acts  of  God,  governmental restriction or regulations or controls,
judicial  orders,  enemy or hostile government actions, civil commotion, fire or
other  casualty,  or  other  cases  beyond  the  reasonable control of the party
obligated  to  perform  hereunder,  shall excuse performance of the work by that
party for a period equal to the duration to that prevention, delay, or stoppage.
Nothing  in  this Section 19.01 shall excuse or delay Lessee's obligation to pay
rent  or  other  charges  under  this  Lease.

SECTION 22.01 - BANKRUPTCY:

     In  the  event  Lessee  or  Lessor  shall  file  a  voluntary  petition  in
bankruptcy,  make  assignments  for  the  benefit of all or substantially all of
their  respective assets, or fail to secure dismissal of an involuntary petition
in  bankruptcy  within  sixty (60) days after filing thereof, then such an event
shall be deemed an act of default and the nondefaulting party may terminate this
Lease  upon  ten  (10)  days  written  notice  to  the  other.

SECTION 23.01 -SURRENDER OF PREMISES:

     Upon  termination of this Lease by lapse of time or otherwise, Lessee shall
surrender  the Premises in as good condition as they were in at the beginning of
the Term, ordinary wear and tear for alterations, changes, or additions, made in
compliance  with  this  Lease,  Acts  of  God,  or  other  casualty  excepted.

SECTION 24.01 - NOTICES:

     Any  notice,  demand,  request,  or consent that either party desires or is
required  to  be  given  by  this  Lease shall be in writing and shall be deemed
sufficient  if  sent  by  United  States  mail  to  the  following:

LESSOR:                              LESSEE:

Matley Plaza Limited Partnership     WESTERN GOLDFIELDS
1537 Klosters Court                  961 Matley Lane Suite 120
Alpine Meadows, CA 96146             Reno, Nevada 89502

SECTION 25.01 - EXHIBITS:

     All Exhibits referred to are attached to this Lease and incorporated herein
by  reference.

SECTION 26.01 - INTERPRETATION:

     This  Lease  shall be construed and interpreted in accordance with the laws
of  the  State  of  Nevada.

SECTION 27.01 - WAIVERS:

     No delay or omission by either party in exercising any right occurring upon
any noncompliance or default by the other party with respect to any of the terms
hereof  shall  impair any such right or be construed to waiver thereof. A waiver
by  either  party  of any of the covenants and agreements to be performed by the
other  shall not be construed to be a waiver of any succeeding breach thereof or
of  any  other  covenants  or  agreements  herein  contained.

                                       13
<PAGE>
SECTION 28.01 - HEIRS AND SUCCESSORS:

     Subject  to  the provisions hereof pertaining to assignment and subletting,
the  covenants  and  agreements  of  this Lease shall be binding upon the heirs,
legal  representatives,  successors,  and  assignees  of  the  parties  hereto.

SECTION 29.01 - CORPORATE AUTHORITY:

     If  Lessee is a corporation, each individual executing this Lease on behalf
of said corporation represents and warrants that he or she is duly authorized to
execute  and  deliver  this Lease on behalf of said corporation or in accordance
with  the  By-Laws of said corporation, and that this Lease is binding upon said
corporation  in  accordance  with  its terms. If Lessee is a corporation, Lessee
shall within thirty (30) days after execution of this Lease, deliver to Lessor a
certified  copy  of  a  resolution of the Board of Directors of said corporation
authorized  or  rectifying  the  execution  of  this  Lease.

SECTION 30.01 - RECORDATION:

     This  Lease shall not be recorded unless both parties mutually agree to the
content  of  the  short  form.

SECTION 31.01 - CAPTIONS:

     The captions used in this Lease shall have no effect on its interpretation.

SECTION 32.01 - ATTORNEY'S COSTS:

     If  by  reason  of  any  default  on  the  part  of  Lessee  or Lessor, the
non-defaulting  party shall bring suit to recover any rent due hereunder, or for
the  breach  of  any  provision  of  this  Lease or to recover possession of the
Premises,  or  if  Lessee  shall bring any action for any relief against Lessor,
declaratory  or  otherwise  arising  out  of this Lease, or if any party to this
Lease  institutes  a  lawsuit  against  the  other party; which arises out of or
related  to  this  Lease,  the  prevailing party shall have recovery against the
other  party in addition to the costs allowed by law, such sums as the court may
judge  to  be  a  reasonable  attorney's  fees.

SECTION 33.01 - SPECIAL FACTS PERTAINING TO LEASE, INTEGRATED AGREEMENTS, AND
MODIFICATIONS:

     1.   ENTIRE AGREEMENTS: This Lease constitutes the entire Agreement between
the  parties,  along  with  its  exhibits  and  addenda;  and  no  alteration or
modification  of such agreement may be made except in writing to the other party
and  signed  by  the  party  to  be  charged.

     2.   INVALIDITY  OR UNENFORCEABILITY:  If any term, condition, covenant, or
provision of this Lease is held to be invalid or unenforceable, either in itself
or  as  to  any  particular  party,  then  the  remainder  of  the Lease, or the
applicability  of such provision to other parties, will continue in validity and
force.

SECTION 34.01-ATTACHED EXHIBITS:

     Exhibit A:     Matley Plaza Commercial Center
     Exhibit B:     Demised Premises
     Exhibit C:     First Amendment to Lease

SECTION 34.01- EASEMENTS:

     Lessor  reserves  the  right,  from  time to time, to grant such easements,
rights,  and  dedications that Lessor deems necessary or desirable, and to cause
the  recordation  of  Parcel  Maps  and restrictions, so long as such easements,
rights,  dedications,  maps, and restrictions do not unreasonably interfere with
this  use of the Premises by Lessee. Lessee shall sign any of the aforementioned
documents  upon  request  of  Lessor  and  failure  to  do so shall constitute a
material  default of this Lease by Lessee without the need for further notice to
Lessee.

                                       14
<PAGE>
     IN  WITNESS WHEREOF the parties hereto have executed this Lease the day and
year  first  above  written.

LESSOR:                              LESSEE:
MATLEY PLAZA LIMITED PARTNERSHIP     WESTERN GOLDFIELD S, INC.

                                       15
<PAGE>
     2.   Lease Of Additional Space. If, during the team of this Lease, Lessee
          -------------------------
desires to occupy any Additional Space, Lessee shall immediately notify Lessor
in writing describing the square footage to be occupied and whether the
Additional Space is comprised of office space, warehouse space, or both. Upon
approval thereof by Lessor, the Lease shall be further amended to include as
part of the Premises the Additional Space and to adjust the rent payable
hereunder to include additional rent at the rate of One and 101100ths Dollar
($1.10) per square foot for office space and Fifty-Five Cents (55 ) per square
foot for warehouse space. The inclusion in the Lease of the Additional Space
shall not extend the term of the Lease. The right to lease the Additional Space
shall be subject to the prior written consent

                                   EXHIBIT "C"
                                   -----------
                       FIRST AMENDMENT TO LEASE AGREEMENT

     This  First  Amendment  To  Lease  Agreement  ("Amendment") relates to that
certain  Lease  dated  April  1,  2004,  by  and  between  MATLEY  PLAZA
PARTNERSHIP("Lessor")  and  WESTERN  COLDFIELDS,  INC-  ("Lessee").

                                    RECITALS
                                    --------

     A.   Lessor  and  Lessee  entered  into  that certain Lease Agreement dated
April 1, 2004("Lease") whereby Lessor leased to Lessee the premises ("Premises")
particularly  described  on  Exhibit "B" to the Lease and is a part of Suite 120
("Suite  120"),  961  Matley  Lane,  Reno,  Nevada.

     B.   For purposes of this Amendment, the following definitions shall apply:

     (i)  "Additional  Space"  shall  mean  any portion of the Remaining Part of
          Suite  120  not  subject  to  a  lease  to  other  tenant(s).

     (ii) "Common  Areas"  shall  mean  Men  (117), Women (118), Corridor (114),
          and  Reception  (105)

     (iii) "Premises"  shall mean the approximate 5,000 square feet described by
          Exhibit  "B"  to  the  Lease.

     (iv)  "Remaining Part of Suite 120" shall mean all or any part of Suite 120
     other  than  the  Premises  (i.e.,  Suite  120  excluding  the  Premises).

     (v)  "Suite  120"  shall  mean  all  the space within Suite 120, 961 Matley
          Lane, Reno, Nevada consisting of approximately 15,000 square feet. The
          Premises  are  located  within  Suite  120

     C.   The  parties  desire  to  amend the Lease to add thereto the following
provisions:

     NOW  THEREFORE,  IT  IS  AGREED;

          1.   Common  Areas.  So  long  as there are no other tenants occupying
               -------------
any  part  of  Suite  120,  Lessee  shall have the right to use the Common Areas
without further or additional rent.  However, upon Lessor leasing any portion of
the  Remaining  Part  of  Suite  120 as further set forth in Paragraph 4 hereof.

does not exercise this right to lease all of Suite 120, the Lease shall
terminate at the end of the lease term. Thereupon Lessee shall surrender the
Premises to Lessor as required by the terms of the Lease.

     6.   Right Of Entry. During the term of the Lease, Lessor, its
          --------------
representatives and agents, shall have the right, upon reasonable notice, to
enter upon the Premises for purposes of showing Suite 120, or any portion
thereof, to prospective tenants. Lessor shall use reasonable efforts to minimize
any inconvenience to Lessee; however, Lessor shall not be responsible for any
interruption caused to Lessee thereby, nor will Lessor be responsible to Lessee
for any inconvenience or interruption incurred by Lessee by reason of the
exercise of any of the rights set forth in this Amendment, and there shall be no

                                       16
<PAGE>
reduction of rent thereby.

     7.   Remaining Terms. All remaining terms and provisions of the Lease shall
          ---------------
remain in full force and effect without modification unless otherwise set in
writing subsequent hereto.

     IN WITNESS WHEREOF, the parties have executed this First Amendment To
Lease.

LESSOR:                             LESSEE:

MATLEY PLAZA PARTNERSHIP          WESTERN GOLDFIELDS, INC.

By _____________________          By _______________________

Its ____________________          Its ______________________

Date It ________________          Date _____________________

                                       17
<PAGE>EXHIBIT 10.22

WESTERN GOLDFIELDS, INC.
Office: 961 Matley Lane, Suite 120                      Telephone (775) 849-1985
        Reno, Nevada 89502                                    Fax (775) 849-1985

--------------------------------------------------------------------------------

April 28, 2004

Robert J. Moriarty
President
321gold
6884 North Kendall Drive, Suite C-301
Miami, Florida 33156
(305-666-4082)

RE:  SUNNY SLOPE GOLD PROPERTY- JOINT VENTURE LETTER OF INTENT (LOI)

Dear Mr. Moriarty,

Pursuant to discussions over the past few weeks, Western Goldfields, Inc. ("WG")
is interested in entering into an Exploration and Mining Joint Venture Agreement
("JV Agr.") with you ("Moriarty") regarding WG's Sunny Slope Gold Property
                                                 -------------------------
("Property") located in Mineral County, Nevada.  Moriarty wishes to earn a 51%
interest, as well as an additional 19%, for a total of 70% interest in the Sunny
Slope by expending $1,000,000, developing a mine and producing a minimum amount
of production.  The $1,000,000 shall be spent in a two-phase program: Phase I -
                                                                      ---------
Exploration Expenditures in the range of $200,000; Phase II - Mine Development
------------------------                           ---------------------------
and Operations in the range of $800,000.
--------------

During the 51% earn-in phase, WG shall have the option to manage and operate the
JV, and a JV Operating Committee shall be established consisting of 3 members: 2
WG members and 1 Company members.  Upon Company completing the 51 % earn-in,
Company shall have the option to manage and operate the JV and the Operation
Committee shall be changed to 2 member of Company and 1 member of WG.  All
expenditures and payments are in US ($) dollars.

If the terms below are acceptable, please sign and initial all pages and fax
back to me a copy and I will sign and fax back a copy for you records.  Upon
both parties exercising the LOI, I will have our attorney begin drafting up a
definitive Exploration and Mining JV Agreement.

EARN IN EXPENDITURE TERMS:
-------------------------

     1.   WG proposes a Joint Venture Agreement where Company could earn a 51 %
          working interest in the Property and Area of Interest by completing
          direct expenditures of $1,000,000 dollars over 2 years.

     2.   WG proposes the Company could earn an additional 19% working interest
          in the Property and Area of Interest, bringing the total earn-in to
          70% for Company by putting the Property into production and producing
          a minimum of 500 ounces of gold over no less than a three year period
          from the date of this Agreement.

     3.   Upon Company completing the 70% earn-in, both WG and Company shall
          contribute all future expenditures on their respected percentage
          bases. At WG's election, WG shall have the option of converting its
          30% interest in the project to a 4 %NSR royalty with no future
          expenditures required.

     4.   WG shall have the right to Back-In as operator and reverse the JV
          ownership (70% WG and 30% Company) before the 5th Anniversary by
          reimbursing Company 2.5 times it's actual funding of exploration and
          development expenditures. At such an election, WG shall have the
          option to

                                        1
<PAGE>
          manage and operate the JV and the Operation Committee shall be 2
          member of WG and 1 member of Company.

     5.   By August 1 of each year, Company agrees to pay all Federal, State and
          County annual mining claim maintenance fees, rental fees or real
          property taxes and any and all other fees which constitute all or part
          of the Property, while this Joint Venture Agreement is in force.

     6.   During the Company's earn-in period, Company may terminate the Joint
          Venture Agreement at any time subject to a sixty (60) day advanced
          notice. Company would be responsible for any land holding costs that
          became due through the 60-day notice period.

     7.   Company would be responsible for all direct project expenditures
          during the 70% earn-in period unless WG exercises its right to Back-in
          as operator. Direct expenditures shall not include any land lease
          payments, advanced royalties payments, new claim staking or recording
          fees or annual rental payments to the BLM or the County

     8.   Except for the obligation to make payments when due hereunder, the
          obligations of a Party shall be suspended to the extent and for the
          period that performance is prevented by any cause, whether foreseeable
          or unforeseeable, beyond its reasonable control, including, without
          limitation, labor disputes (however arising and whether or not
          employee demands are reasonable or within the power of the Party to
          grant); acts of God; Laws, instructions or requests of any government
          entity; judgements or orders of any court; inability to obtain on
          reasonably accepted terms any public or private license, permit or
          other authorization; curtailment or suspension of activities to remedy
          or avoid an actual or alleged, present or prospective violation of
          environmental laws; action or inaction by any federal, state or local
          agency that delays or prevents the issuance or granting of any
          approval or authorization required to conduct operations beyond the
          reasonable expectations of the Party seeking the approval or
          authorization; acts of war or conditions arising out of or
          attributable to war, whether declared or undeclared; riot, civil
          strife, insurrection or rebellion; fire, explosion, earthquake, storm,
          flood, drought or other adverse weather condition; delay or failure by
          suppliers or transporters of materials, parts, supplies, services or
          equipment or by contractors' or subcontractors' shortage of, or
          inability to obtain, labor, transportation, materials, machinery,
          equipment, supplies, utilities or services; accidents; breakdown of
          equipment, machinery or facilities; actions by native rights groups,
          environmental groups, or other similar special interest groups; or any
          other cause whether similar or dissimilar to the foregoing. The
          affected Party shall promptly give notice to the other Party of the
          suspension of performance, stating therein the nature of the
          suspension, the reasons therefore, and the expected duration thereof.
          The affected Party shall resume performance as soon as reasonably
          possible. During the period of suspension the obligations of both
          Parties to advance funds shall be reduced to levels consistent with
          then current Operations.

     9.   WG  and Company shall complete an exclusive definitive Exploration and
          Mining Joint Venture Agreement within 30 days of signing a Letter of
          Intent Agreement or as soon as practical. Should WG and Company fail
          to complete a definitive Exploration and Mining Joint Venture
          Agreement within 90 days of the execution and Effective Date of this
          Letter of Intent Agreement, all Agreements and understandings shall be
          null and void, and that the parties shall have no binding obligations
          between them.

     10.  The Effective Date of this Letter of Intent Agreement shall be May 1,
          2004.

     Agreed  and  Accepted,               Agreed  and  Accepted,
     /s/ Robert J. Moriarty               /s/ Thomas E. Callicrate
     ______________________Date:________  ________________________Date:________
     Robert  J.  Moriarty                 Thomas  E.  Callicrate
                                          Vice President Exploration, Director
                                          Western Goldfields, Inc.

                                        2
<PAGE>

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