Document:

form8k032008ex10-1.htm

    
      

      

    

     

    PROPERTY
OPTION AGREEMENT

    

    THIS
AGREEMENT made and entered into as of the 15th day of
March, 2008

    

    BETWEEN:            MinQuest
Inc., a company having a mailing address at 4235 Christy

    Way, Reno, Nevada, 89519,
U.S.A.

    

    (herein
called the “Optionor”)

    

    OF
THE FIRST PART

    

    

    
      	
              AND:

            	
              Patriot
      Gold Corp., a company having an office at #501-1775 Bellevue Ave., West
      Vancouver, B.C., Canada V7V 1A9

            

    

    

    
      	
               
      

            	
              (herein
      called the “Optionee”)

            

    

    

    
      	
               
      

            	
              OF
      THE SECOND PART

            

    

    

    
      	
               
      

            	
              WHERAS
      the Optionor has represented that it is the sole recorded and beneficial
      owner

            

    

    
      	
               
      

            	
              in
      and to the property called the Whiskey Flat Project (the “Property)
      described in Schedule “A” attached
hereto;

            

    

    

    
      	
               
      

            	
              AND
      WHEREAS the Optionor, subject to the Net Smelter Royalty reserved to
      the

            

    

    
      	
               
      

            	
              Optionor,
      now wishes to grant to the Optionee the exclusive right and option to
      acquire

            

    

    
      	
               
      

            	
              an
      undivided 100% right, title and interest in and to the Property on the
      terms and

            

    

    
      	
               
      

            	
              conditions
      hereinafter set forth;

            

    

    

    
      	
               
      

            	
              NOW
      THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration
    of

            

    

    
      	
               
      

            	
              the
      premises, the mutual covenants herein set forth and the sum of One Dollar
      ($1.00) of

            

    

    
      	
               
      

            	
              lawful
      money of U.S. currency now paid by the Optionee to the Optionor (the
      receipt

            

    

    
      	
               
      

            	
              whereof
      is hereby acknowledged), the Parties hereto do hereby mutually covenant
      and

            

    

    
      	
               
      

            	
              agree
      as follows:

            

    

    

    
      	
              1.

            	
              Definitions

            

    

    

    
      	
               
      

            	
               The
      following words, phrases and expressions shall have the following
      meanings:

            

    

    

    (a)           “After
Acquired Properties” means any and all mineral interests staked,

    located, granted or acquired by or on
behalf of either of the parties hereto

    during the currency of this Agreement
which are located, in the whole or

    in part, within one mile of the
existing perimeter of the Property;

    

    (b)           “Exchange”
means OTCBB Venture Exchange;

    

    
      	
              (c)

            	
              “Expenditures”
      includes all direct or indirect expenses [net of
  government

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              incentives
      and not including payments to the Optionor pursuant to
    section

            

    

    
      	
               
      

            	
              4,
      paragraphs (a), (b)(ii), (c)(ii), (d)(ii), (e)(ii), (f)(ii), (g)(ii),
      (h)(ii), (i)(ii), (j)(ii), and (k)(ii) hereof ] of or incidental to Mining
      Operations. The certificate of the Controller or other financial officer
      of the Optionee, together with a statement of Expenditures in reasonable
      detail shall be prima facie evidence of such Expenditures; the parties
      hereto agree that Property payments and Property expenditures are separate
      payments as outlined in paragraph
4;

            

    

    

    (d)         “Facilities”
means all mines and plants, including without limitation, all

    
      	
               
      

            	
              pits,
      shafts, adits, haulageways, raises and other underground
      workings,

            

    

    
      	
               
      

            	
              and
      all buildings, plants, facilities and other structures, fixtures
      and

            

    

    
      	
               
      

            	
              improvements,
      and all other property, whether fixed or moveable, as
  the

            

    

    
      	
               
      

            	
              same
      may exist at any time in, or on the Property and relating to
      the

            

    

    
      	
               
      

            	
              operator
      of the Property as a mine or outside the Property if for
    the

            

    

    
      	
               
      

            	
              exclusive
      benefit of the Property only;

            

    

    

    
      	
              (e)

            	
              “Force
      Majeure” means an event beyond the reasonable control of
    the

            

    

    
      	
               
      

            	
              Opionee
      that prevents or delays it from conducting the
  activities

            

    

    
      	
               
      

            	
              contemplated
      by this Agreement other than the making of
  payments

            

    

    
      	
               
      

            	
              referred
      to in Section 4 herein. Such events shall include but not be
      limited

            

    

    
      	
               
      

            	
              to
      acts of God, war, insurrection, action of governmental
      agencies

            

    

    
      	
               
      

            	
              reflecting
      an instability in government procedures, or delay in
      permitting

            

    

    
      	
               
      

            	
              unacceptable
      to both Optionor and Optionee;

            

    

    

    
      	
              (f)

            	
              “Mineral
      Products” means the commercial end products derived
  from

            

    

    
      	
               
      

            	
              operating
      the Property as a mine:

            

    

    

    
      	
              (g)

            	
              “Mining
      Operations” includes:

            

    

    

    
      	
              (i)

            	
              every
      kind of work done on or with respect to the Property by
  or

            

    

    
      	
               
      

            	
              under
      the direction of the Optionee during the Option Period
  or

            

    

    
      	
               
      

            	
              pursuant
      to an approved Work Program; and

            

    

    

    
      	
              (ii)

            	
              without
      limiting the generality of the foregoing, including all
    work

            

    

    
      	
               
      

            	
              capable
      of receiving assessment credits pursuant to the Mines
  and

            

    

    
      	
               
      

            	
              Minerals
      act of Nevada and the work of
assessment,

            

    

    
      	
               
      

            	
              geophysical,
      geochemical and geological surveys, studies
and

            

    

    
      	
               
      

            	
              mapping,
      investigating, drilling, designing, examining
  equipping,

            

    

    
      	
               
      

            	
              improving,
      surveying, shaft sinking, raising, cross-cutting
  and

            

    

    
      	
               
      

            	
              drifting,
      searching for, digging, trucking, sampling, working
  and

            

    

    
      	
               
      

            	
              procuring
      minerals, ores and metals, in surveying and bringing
  any

            

    

    
      	
               
      

            	
              mineral
      claims to lease or patent, in doing all other work
  usually

            

    

    
      	
               
      

            	
              considered
      to be prospecting, exploration, development,
a

            

    

    
      	
               
      

            	
              feasibility
      study, mining work, milling concentration,
  beneficiation

            

    

    
      	
               
      

            	
              or
      ores and concentrates, as well as the separation and extraction
      of

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Mineral
      Products and all reclamation, restoration and
      permittingactivities;

            

    

    

    (h)         “Net
Smelter Royalty” means that Net Smelter Royalty as defined in

    
      	
               
      

            	
              Schedule
      “B” attached hereto (“NSR”);

            

    

    

    
      	
              (i)

            	
              “Option”
      means the option granted by the Optionor to the Optionee
  to

            

    

    
      	
               
      

            	
              acquire,
      subject to the NSR reserved to the Optionor, an undivided
    100%

            

    

    
      	
               
      

            	
              right,
      title and interest in and to the Property as more particularly set
      forth

            

    

    
      	
               
      

            	
              in
      Section 4;

            

    

    

    
      	
              (j)

            	
              “Option
      Period” means the period from the date hereof to the date
    at

            

    

    
      	
               
      

            	
              which
      the Optionee has performed its obligations to acquire its
    100%

            

    

    
      	
               
      

            	
              interest
      in the Property as set out in Section 4 hereof, which ever shall
      be

            

    

    
      	
               
      

            	
              the
      lesser period;

            

    

    

    
      	
              (k)

            	
              “Property”
      means the mineral claims described in Schedule
  “A”;

            

    

    

    
      	
               
      

            	
              (l)

            	
              “Filing
      Fees” means all fees, payments and expenses necessary to keep the mineral
      claims in good standing with federal, state and local government
      entities;

            

    

    

    
      	
              (m)

            	
              “Work
      Program” means a program of work reasonably acceptable to
    both

            

    

    
      	
               
      

            	
              parties
      in respect of a particular Property, contained in a written
      document

            

    

    
      	
               
      

            	
              setting
      out in reasonable detail;

            

    

    

    
      	
              (i)

            	
              An
      outline of the Mining Operations proposed to be
  undertaken

            

    

    
      	
               
      

            	
              and
      conducted on the Property, specifically stating the period
    of

            

    

    
      	
               
      

            	
              time
      during which the work contemplated by the
  proposed

            

    

    
      	
               
      

            	
              program
      is to be done and performed;

            

    

    

    
      	
              (ii)

            	
              The
      estimated cost of such Mining Operations including
  a

            

    

    
      	
               
      

            	
              proposed
      budget providing for estimated monthly
cash

            

    

    
      	
               
      

            	
              requirements
      in advance and giving reasonable details;
and

            

    

    

    
      	
              (iii)

            	
              The
      identity and credentials of the person or persons undertaking the
      Mining Operations so proposed if not the Optionor, reasonably
      acceptable to both parties
hereto.

            

    

     

    
      	
              2.

            	
              Headings

            

    

    

    
      	
               
      

            	
              Any
      heading, caption or index hereto shall not be used in any way in
      construing

            

    

    
      	
               
      

            	
              or
      interpreting any provision
hereof.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              3.

            	
              Singular,
      Plural

            

    

    

    
      	
               
      

            	
              Whenever
      the singular or masculine or neuter is used in this Agreement, the
      same

            

    

    
      	
               
      

            	
              shall
      be construed as meaning plural or feminine or body politic or corporate or
      vice

            

    

    
      	
               
      

            	
              versa,
      as the context so requires.

            

    

    

    
      	
              4.

            	
              Option

            

    

    

    
      	
               
      

            	
              The
      Optionor hereby grants to the Optionee the sole and exclusive right
      and

            

    

    
      	
               
      

            	
              option
      (the “Option”) to earn a 100% interest in the Property exercisable as
      follows:

            

    

    

    
      	
              (a)

            	
              The
      Optionee paying the sum of $50,000 USD to the Optionor by way of cash
      and reimburse all holding costs and expenses of location of mining
      claims, such expenses to be identified in Schedule
  “C”;

            

    

    

    
      	
              (b)

            	
              On
      or before March 15th,
      2009

            

    

    

    
      	
              (i)

            	
              The
      Optionee incurring Expenditures of $50,000 USD on
  the

            

    

    
      	
               
      

            	
              property;

            

    

    

    
      	
              (ii)

            	
              The
      Optionee paying $50,000 USD to the
Optionor;

            

    

    

    
      	
              (c)

            	
              On
      or before March 15th,
      2010

            

    

    

    
      	
              (i)

            	
              The
      Optionee incurring Expenditures of $150,000 USD on
  the

            

    

    
      	
               
      

            	
              Property
      in addition to the expenditures referred to in
  clause

            

    

    
      	
               
      

            	
              (b)(i);

            

    

    

    
      	
              (ii)

            	
              The
      Optionee paying $50,000 U.S to the
Optionor;

            

    

    

    
      	
              (d)

            	
              On
      or before March 15th,
      2011

            

    

    

    
      	
              (i)

            	
              The
      Optionee incurring Expenditures of $200,000 USD on
  the

            

    

    
      	
               
      

            	
              Property
      in addition to the expenditures referred to in
  clauses

            

    

    
      	
               
      

            	
              (b)(i)
      and (c)(i) hereof; and

            

    

    

    
      	
              (ii)

            	
              The
      Optionee paying $65,000 USD to the
Optionor;

            

    

    

    
      	
              (e)

            	
              On
      or before March 15th,
      2012

            

    

    

    
      	
              (i)

            	
              The
      Optionee incurring Expenditures of $350,000 USD on
  the

            

    

    
      	
               
      

            	
              Property
      in addition to the expenditures referred to in
  clauses

            

    

    
      	
               
      

            	
              (b)(i),
      (c)(i) and (d)(i) hereof; and

            

    

    

    
      	
              (ii)

            	
              The
      Optionee paying $80,000 USD to the Optionor;
and

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      
        	
                (f)

              	
                On
      or before March 15th,
      2013

              

      

      

      
        	
                (i)

              	
                The
      Optionee incurring Expenditures of $200,000 USD on
  the

              

      

      
        	
                 
      

              	
                Property
      in addition to the expenditures referred to in
  clauses

              

      

      
        	
                 
      

              	
                (b)(i),
      (c)(i), (d)(i) and (e)(i) hereof;

              

      

      

      
        	
                (ii)

              	
                The
      Optionee paying $100,000 USD to the
Optionor.

              

      

      

      

      
        	
                (g)

              	
                On
      or before March 15th,
      2014

              

      

      

      
        	
                (i)

              	
                The
      Optionee incurring Expenditures of $200,000 USD on
  the

              

      

      
        	
                 
      

              	
                Property
      in addition to the expenditures referred to in
  clauses

              

      

      
        	
                 
      

              	
                (b)(i),
      (c)(i), (d)(i) and (e)(i) and (f)(i)
hereof

              

      

      

      
        	
                (ii)

              	
                The
      Optionee paying $100,000 USD to the Optionor;
  and

              

      

      

      
        	
                (h)

              	
                On
      or before March 15th,
      2015

              

      

      

      
        	
                (i)

              	
                The
      Optionee incurring Expenditures of $200,000 USD on
  the

              

      

      
        	
                 
      

              	
                Property
      in addition to the expenditures referred to in
  clauses

              

      

      
        	
                 
      

              	
                (b)(i),
      (c)(i), (d)(i), (e)(i), (f)(i) and (g)(i)
  hereof;

              

      

      

      
        	
                (ii)

              	
                The
      Optionee paying $100,000 USD to the Optionor;
  and

              

      

      

      
        	
                (i)

              	
                On
      or before March 15th,
      2016

              

      

      

      
        	
                (i)

              	
                The
      Optionee incurring Expenditures of $200,000 USD on
  the

              

      

      
        	
                 
      

              	
                Property
      in addition to the expenditures referred to in
  clauses

              

      

      
        	
                 
      

              	
                (b)(i),
      (c)(i), (d)(i), (e)(i), (f)(i), (g)(i) and (h)(i)
  hereof;

              

      

      

      
        	
                (ii)

              	
                The
      Optionee paying $100,000 USD to the Optionor;
  and

              

      

      

      
        	
                (j)

              	
                On
      or before March  15th,
      2017

              

      

      

      
        	
                (i)

              	
                The
      Optionee incurring Expenditures of $200,000 USD on
  the

              

      

      
        	
                 
      

              	
                Property
      in addition to the expenditures referred to in
  clauses

              

      

      
        	
                 
      

              	
                (b)(i),
      (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i) and (i)(i)
      hereof;

              

      

      

      
        	
                (ii)

              	
                The
      Optionee paying $100,000 USD to the Optionor;
  and

              

      

      

       

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (k)           On
or before March 15th,
2018

    

    (i)           The
Optionee incurring Expenditures of $750,000 USD on the

    
      	
               
      

            	
              Property
      in addition to the expenditures referred to in
  clauses

            

    

    
      	
               
      

            	
              (b)(i),
      (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i) and (j)(i)
      hereof;

            

    

    

    (ii)           Optionee
paying $250,000 USD to the Optionor.  Following which the Optionee
shall be deemed to have exercised the Option (the “Exercise Date”) and shall be
entitled to an undivided 100% right, title and interest in and to the Property
with the full right and authority to equip the Property for production and
operate the Property as a mine subject to the rights of the Optionor to receive
the NSR.

    

    The
Optionee shall have the one time right exercisable for 90 days following
completion of a bankable feasibility study to buy up to one half (50%) of the
Optionor’s NSR interest (i.e. an amount equal to 1.5% of the NSR interest) for
USD $2,250,000. The right to purchase the said NSR interest shall be exercised
by the Optionee providing the Optionor with notice of the purchase accompanied
by payment in the amount of USD $2,250,000.

    

    The
Optionor and Optionee understand and confirm that all Expenditures incurred in a
particular period, including any excess in the amount of Expenditures required
to be incurred to maintain the Option during such period, shall be carried over
and included in the aggregate amount of Expenditures for the subsequent period,
but not to exceed more than three (3) consecutive years.

    

    Notwithstanding
paragraphs (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i),
(j)(i) and (k)(i) if the Optionee has not incurred the requisite Expenditures to
maintain its option in good standing prior to March 15th  of
any given year, the Optionee may pay to the Optionor within 60 days following
the expiry of such period, the amount of the deficiency and such amount shall
thereupon be deemed to have been Expenditures incurred by the Optionee during
such period.

    

    (l)           The
doing of any act or the incurrence of any cash payments by the

    Optionee shall not obligate the
Optionee to do any further acts or make

    any
further payments with the exception of fees and expenses to keep said property
in good standing as per paragraph 8b.

    

    5.           Transfer
of Title

    

    Upon Optionee’s completion of all
requirements to earn a 100 percent interest in the Property, the Optionor will
deliver or cause to be delivered to the Optionee’s solicitors a duly executed
transfer of Property in favor of the Optionee (the “Optionee Transfer”). The
Optionee shall be entitled to record the Optionee Transfer with the appropriate
government offices to effect transfer of legal title of the Property into its
own name upon the full and complete exercise of the Option by the Optionee. In
the event the

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Optionee
Transfer is recorded the Optionor shall be entitled to record notice of its NSR
interest.

    

    6.           Mining
Operations during Option

    

    During the Option Period, the Optionor
may provide its mineral exploration expertise on the Property, on a consultation
basis for and on behalf of the Optionee, at the election of the
Optionee.  However, the Optionee has the exclusive right to determine
what Expenditures and Mining Operations it will perform, when they will be
performed, and by whom. If the Optionee elects to use the mineral expertise and
consulting services of the Optionor, then the Optionor shall invoice for time
for consulting services and related travel expenses from time to time and the
prompt payment of such invoices when due shall constitute a portion of
Expenditures by the Optionee as contemplated under Section 4
hereof.

    

    During the currency of this Agreement,
the Optionee, its servants, agents and workmen and any persons duly authorized
by the Optionee, shall have the right of access to and from and to enter upon
and take possession of and prospect, explore and develop the Property in such
manner as the Optionee in its sole discretion may deem advisable and shall have
the right to remove and ship therefrom ores, minerals, metals, or other products
recovered in any manner therefrom.

    

    7.           Assignment

    

    During the Option Term, both parties
shall have the right to sell, transfer, assign, mortgage, pledge its interest in
this Agreement or its right or interest in the Property. It will be a condition
of any assignment under this Agreement that such assignee shall agree in writing
to be bound by the terms of this Agreement applicable to the
assignor.

    

    8.           Termination

    

    This Agreement shall forthwith
terminate in circumstances where:

    

    (a)           The
Optionee shall fail to comply with any of its obligations
hereunder,

    subject
to Force Majeure, and within 30 days of receipt by the Optionee of written
notice from the Optionor of such default, the Optionee has not:

    

    (i)           cured
such default, or commenced proceedings to cure such

    default and prosecuted same to
completion without undue

    delay; or

    

    
      	
               
      

            	
              (ii)

            	
              given
      the Optionor notice that it denies that such default has
      occurred.

            

    

    

    In the
event that the Optionee gives notice that it denies that a default has occurred,
the Opionee shall not be deemed to be in default until the matter shall have
been determined

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    finally
through such means of dispute resolution as such matter has been subjected to by
either party; or

    

    
      	
               
      

            	
              (b)

            	
              The
      Optionee gives notice of termination to the Optionor, which it shall be at
      liberty to do at any time after the execution of this Agreement. If and
      when the Optionee elects to terminate this Agreement, or terminate one of
      the projects comprising the Property, at such time the Property or the
      specific project will be returned to the Optionor and all claim fees,
      payments and expenses will be paid in order to maintain the property in
      good standing for one year after
termination.

            

    

    

    Upon the
termination of this Agreement under this Section 8, the Optionee shall cease to
be liable to the Optionor in debt, damages, claim fees or otherwise, other than
to pay the claim fees as described in paragraph (b) of this Section 8 and all
liabilities referred to in Section 11.

    

    Upon
termination of this Agreement under this Section 8, the Optionee shall return
the Property, including all property within the designated boundary of the area
of interest, to the Optionor. The Optionee shall vacate the Property within a
reasonable time after such termination and relinquishment, but shall have the
right of access to the Property for a period of six months thereafter for the
purpose of removing its chattels, machinery, equipment and
fixtures.

    

    9.           Representations,
Optionies and Covenants of the Optionor

    

    The Optionor represents, options and
covenants to and with the Optionee as follows:

    

    (a)           The
Optionor is a company duly organized validly existing and in

    good standing under the laws of
Nevada;

    

    (b)           The
Optionor has full power and authority to carry on its business and
to

    enter
into this Agreement and any agreement or instrument referred to or contemplated
by this Agreement;

    

    
      	
               
      

            	
              (c)

            	
              Neither
      the execution and delivery of this Agreement, nor any of the agreements
      referred to herein or contemplated hereby, nor the consummation of the
      transactions hereby contemplated hereby, nor
the

            

    

    
      	
               
      

            	
              consummation
      of the transactions hereby contemplated conflict
  with,

            

    

    
      	
               
      

            	
              result
      in the breach of or accelerate the performance required by,
      any

            

    

    
      	
               
      

            	
              agreement
      to which it is a party;

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      execution and delivery of this Agreement and the agreements contemplated
      hereby will not violate or result in the breach of the
  laws

            

    

    
      	
               
      

            	
              of
      any jurisdiction applicable or pertaining thereto or of its
      constating

            

    

    
      	
               
      

            	
              documents;

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (e)

            	
              The
      Agreement constitutes a legal, valid and binding obligation of the
      Optionor;

            

    

    

    
      	
               
      

            	
              (f)

            	
              The
      Property is accurately described in Schedule “A”, is in good standing
      under the laws of the jurisdiction in which it is located and is free and
      clear of all liens, charges and
encumbrances;

            

    

    

    
      	
               
      

            	
              (g)

            	
              The
      Optionor is the sole recorded and beneficial owner of the
      Property

            

    

    
      	
               
      

            	
              and
      has the exclusive right to enter into this Agreement and all
      necessary

            

    

    
      	
               
      

            	
              authority
      to transfer its interest in the Property in accordance with the terms of
      this Agreement;

            

    

    

    
      	
               
      

            	
              (h)

            	
              No
      Person, firm or corporation has any proprietary or possessorty
      interest

            

    

    
      	
               
      

            	
              in
      the Property other than the Optionor, and no person, firm or corporation
      is entitled to any royalty or other payment in the nature of rent or
      royalty on any minerals, ores, metals or concentrates or any other such
      products removed from the Property other than the government of the state
      of Nevada pursuant to statute; notwithstanding any Federal, State or
      County royalties or net proceeds tax derived from mining
      operations.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Upon
      request by the Optionee, and at the sole cost of the Optionee, the
      Optionor shall deliver or cause to be delivered to the Optionee copies of
      all available maps and other documents and data in its possession
      respecting the Property. Nothing will be withheld, hidden, or kept from
      the Optionee, whether the data or information is held or not by the
      Optionor; and

            

    

    

    
      	
               
      

            	
              (j)

            	
              Subject
      to performance by the Optionee of its obligations under Section 4, during
      the Option Period, the Optionor will keep the Property in good standing,
      free and clear of all liens, charges and encumbrances, will carry out all
      Mining Operations on the Property in a miner-like fashion if the Optionee
      elects to use the mining expertise and consulting services of the
      Optionor, will obtain all necessary licenses and permits as shall be
      necessary and will file all applicable work up to the legal limits as
      assessment work under the Mines and Mineral Act
  (Nevada)

            

    

    

    10.           Representations,
Optionies and Covenants of the Optionee

    

    The
Optionee represents, Options and covenants to and with the Optionor
that:

    

    
      	
               
      

            	
              (a)

            	
              The
      Optionee is a company duly organized validly existing and in good standing
      under the laws of Nevada;

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              The
      Optionee has full power and authority to carry on its business and to
      enter into this Agreement and any agreement or instrument referred to or
      contemplated by this Agreement;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Neither
      the execution and delivery of this Agreement, nor any of the agreements
      referred to herein or contemplated hereby, nor the consummation of the
      transactions hereby contemplated conflict
with,

            

    

    
      	
               
      

            	
              result
      in the breach of or accelerate the performance required by, any agreement
      to which it is a party;

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      execution and delivery of this Agreement and the agreements contemplated
      hereby will not violate or result in the breach of the laws of any
      jurisdiction applicable or pertaining thereto or of its constating
      documents; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              This
      Agreement constitutes a legal, valid and binding obligation of the
      Optionee.

            

    

    

    11.           Indemnity
and Survival of Representation

    

    The representation and Optionies
hereinbefore set out are conditions on which the parties have relied in entering
into this Agreement and shall survive the acquisition of any interest in the
Property by the Optionee and each of the parties will indemnify and save the
other harmless from all loss, damage, costs, actions and suits arising out of or
in connection with any breach of any representation, option, covenant, agreement
or condition made by them and contained in this Agreement.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability to which it may be subject arising
from any Mining Operations carried out by the Optionor or at its direction on
the Property. The Optionee agrees to indemnify and save harmless the Optionor
from any liability to which it may be subject arising from any Mining Operations
carried out by the Optionee or at its direction on the Property.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability arising form any and every kind of
work done on or with respect to the Property prior to the signing of this
Agreement (the “Prior Operations”). Without limiting the generality of the
foregoing, Prior Operations includes all work capable of receiving assessment
credits pursuant to The Mines and Minerals Act of Nevada and the work of
assessment, geophysical, geochemical and geological surveys, studies and
mapping, investigating, drilling, designing, examining equipping, improving,
surveying, shaft sinking, raising, cross-cutting and drifting, searching for,
digging, trucking, sampling, working and procuring minerals, ores and metals, in
surveying and bringing any mineral claims to lease or patent, in doing all other
work usually considered to be prospecting, exploration, development, a
feasibility study, mining work, milling, concentration, beneficiation of ores
and concentrates, as well as the separation and extraction of Mineral Products
and all reclamation, restoration and permitting activities.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    12.           Confidentiality    

    

    The parties hereto agree to hold in
confidence all information obtained in confidence in respect of the Property or
otherwise in connection with this Agreement other than in circumstances where a
party has an obligation to disclose such information in accordance with
applicable securities legislation, in which case such disclosure shall only be
made after consultation with the other party.

    

    13.           Notice

    

    All notices, consents, demands and
requests ( in this Section 13 called the “Communication”) required or permitted
to be given under this Agreement shall be in writing and may be delivered
personally sent by telegram, by telex or telecopier or other electronic means or
may be forwarded by first class prepaid registered mail to the parties at their
addresses first above written. Any Communication delivered personally or sent by
telegram, telex or telecopier or other electronic means including email shall be
deemed to have been given and received on the second business day next following
the date of sending. Any Communication mailed as aforesaid shall be deemed to
have been given and received on the fifth business day following the date it is
posted, addressed to the parties at their addresses first above written or to
such other address or addresses as either party may from time to time specify by
notice to the other; provided, however, that if there shall be a mail strike,
slowdown or other labor dispute which might effect delivery of the Communication
by mail, then the Communication shall be effective only if actually delivered.
For purposes of this agreement and as a definition of address the Optionor’s
email shall be defined as rrkern@charter.net
and the Optionor’s telecopier number is 775-746-0938. The Optionee’s email shall
be defined as info@patriotgoldcorp.com
and the Optionee’s telecopier number is 604-925-5258. Notice will be provided to
each party should their respective email address change.

    

    14.           Further
Assurances

    

    Each of the parties to this Agreement
shall from time to time and at all times do all such further acts and execute
and deliver all further deeds and documents as shall be reasonably required in
order to fully perform and carry out the terms of this Agreement

    

    15.           Entire
Agreement

    

    The parties hereto acknowledge that
they have expressed herein the entire understanding and obligation of this
Agreement and it is expressly understood and agreed that no implied covenant,
condition, term or reservation, shall be read into this Agreement relating to or
concerning any matter or operation provided for herein

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    16.           Proper
Law and Arbitration

    

    This
Agreement will be governed by and construed in accordance with the laws of the
State of Nevada and the laws of the United States of America. The parties hereto
hereby irrevocably attorn to the jurisdiction of the Courts of Nevada. All
disputes arising out of or in connection with this Agreement, or in respect of
any defined legal relationship associated therewith or derived therefrom, shall
be referred to and finally resolved by a sole arbitrator by arbitration under
the rules of The Arbitration Act of Nevada.

    

    17.           Enurement

    

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

    

    18.           After
Acquired Properties

    

    
      	
               
      

            	
              (i)

            	
              The
      parties covenant and agree, each with the other, that any and all After
      Acquired Properties shall be subject to the terms and conditions of
      this

            

    

    
      	
               
      

            	
              Agreement
      and shall be added to and deemed, for the purposes hereof,
    to

            

    

    
      	
               
      

            	
              be
      included in the Property. Any costs incurred by the Optionor in staking,
      locating, recording or otherwise acquiring any “After Acquired Properties”
      will be deemed to be Mining Operations for which the Optionor will be
      entitled to reimbursements as part of the Expenditures payable by the
      Optionee hereunder.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      additional claims agreed by the Optionee to be staked by the Optionor
      within 1 mile from the existing perimeter of the Property boundaries shall
      form party of this Agreement. The Optionee will reimburse the Optionor for
      the costs of staking the additional claims, unless the Optionee does not
      elect to have the additional claims subject to this
    Agreement.

            

    

    

    19.           Default

    

    Notwithstanding anything in this
Agreement to the contrary if any party (a “Defaulting Party”) is in default of
any requirement herein set forth the party affected by such default shall give
written notice to the Defaulting Party specifying the default and the Defaulting
Party shall not lose any rights under this Agreement, unless thirty (30) days
after the giving of notice of default by the affected party the Defaulting Party
has failed to take reasonable steps to cure the default by the appropriate
performance and if the Defaulting Party fails within such period to take
reasonable steps to cure any such default, the affected party shall be entitled
to seek any remedy it may have on account of such default including, without
limiting, termination of this Agreement.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    20.           Payment

    

    All references to monies herein shall
be in US funds unless otherwise specified. The Optionee shall make payments for
the Expenditures incurred by the Optionor no later than 30 days after the
receipt of invoices delivered by the Optionee to do any acts or make any
payments hereunder, and any act or payment or payments as shall be made
hereunder shall not be construed as obligating the Optionee to do any further
act or make any further payment or payments.

    

    21.           Supersedes
Previous Agreements

    

    This Agreement supersedes and replaces
all previous oral or written agreements, memoranda, correspondence or other
communications between the parties hereto relating to the subject matter
hereof.

    

    

    IN WITNESS WHEREOF the Parties
hereto have duly executed this Agreement effective as of the 15th day of
March, 2008

    

    MinQuest
Inc.

    

    

    

    Per:___/s/_ Richard A. Kern
______

    Richard
A. Kern, President

    

    Patriot
Gold Corp.

    

    

    

    Per:___/s/_ Robert Coale
_________

    Robert
Coale, President

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    SCHEDULE
“A”

    

    Sections
14, 15, 22, 23, 24, 26 & 27 T6N, R31E and Sections 19, T6N, R32E, MDB&M,
Mineral County, Nevada

    

    CLAIM
NAME                                                                                                       
        NMC
NUMBER

    WHISKEY
171                                MinQuest
Inc.                                                                0969904

    WHISKEY
172                                MinQuest
Inc.                                                                0969905

    WHISKEY
173                                MinQuest
Inc.                                                                0969906

    WHISKEY
174                                MinQuest
Inc.                                                                0969907

    WHISKEY
175                                MinQuest
Inc.                                                                0969908

    WHISKEY
176                                MinQuest
Inc.                                                                0969909

    WHISKEY
177                                MinQuest
Inc.                                                                0969910

    WHISKEY
178                                MinQuest
Inc.                                                                0969911

    WHISKEY
179                                MinQuest
Inc.                                                                0969912

    WHISKEY
180                                MinQuest
Inc.                                                                0969913

    WHISKEY
181                                MinQuest
Inc.                                                                0969914

    WHISKEY
182                                MinQuest
Inc.                                                                0969915

    WHISKEY
183                                MinQuest
Inc.                                                                0969916

    WHISKEY
184                                MinQuest
Inc.                                                                0969917

    WHISKEY
185                                MinQuest
Inc.                                                                0969918

    WHISKEY
186                                MinQuest
Inc.                                                                0969919

    WHISKEY
187                                MinQuest
Inc.                                                                0969920

    WHISKEY
188                                MinQuest
Inc.                                                                0969921

    WHISKEY
189                                MinQuest
Inc.                                                                0969922

    WHISKEY
190                                MinQuest
Inc.                                                                0969923

    WHISKEY
191                                MinQuest
Inc.                                                                0969924

    WHISKEY
192                                MinQuest
Inc.                                                                0969925

    WHISKEY
193                                MinQuest
Inc.                                                                0969926

    WHISKEY
194                                MinQuest
Inc.                                                                0969927

    WHISKEY
195                                MinQuest
Inc.                                                                0969928

    WHISKEY
196                                MinQuest
Inc.                                                                0969929

    WHISKEY
197                                MinQuest
Inc.                                                                0969930

    WHISKEY
198                                MinQuest
Inc.                                                                0969931

    WHISKEY
199                                MinQuest
Inc.                                                                0969932

    WHISKEY
200                                MinQuest
Inc.                                                                0969933

    WHISKEY
201                                MinQuest
Inc.                                                                0969934

    WHISKEY
202                                MinQuest
Inc.                                                                0969935

    WHISKEY
203                                MinQuest
Inc.                                                                0969936

    WHISKEY
204                                MinQuest
Inc.                                                                0969937

    WHISKEY
205                                MinQuest
Inc.                                                                0969938

    WHISKEY
206                                MinQuest
Inc.                                                                0969939

    WHISKEY
207                                MinQuest
Inc.                                                                0969940

    WHISKEY
208                                MinQuest
Inc.                                                                0969941

    WHISKEY
209                                MinQuest
Inc.                                                                0969942

    WHISKEY
210                                MinQuest
Inc.                                                                0969943

    WHISKEY
213                                MinQuest
Inc.                                                                0923379

    WHISKEY
214                                MinQuest
Inc.                                                                0923380

    WHISKEY
215                                MinQuest
Inc.                                                                0923381

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    WHISKEY
216                                MinQuest
Inc.                                                                0923382

    WHISKEY
217                                MinQuest
Inc.                                                                0923383

    WHISKEY
218                                MinQuest
Inc.                                                                0923384

    WHISKEY
219                                MinQuest
Inc.                                                                0923385

    WHISKEY
220                                MinQuest
Inc.                                                                0923386

    WHISKEY
221                                MinQuest
Inc.                                                                0923387

    WHISKEY
222                                MinQuest
Inc.                                                                0923388

    WHISKEY
223                                MinQuest
Inc.                                                                0923389

    WHISKEY
224                                MinQuest
Inc.                                                                0923390

    WHISKEY
225                                MinQuest
Inc.                                                                0923391

    WHISKEY
226                                MinQuest
Inc.                                                                0923392

    WHISKEY
227                                MinQuest
Inc.                                                                0923393

    WHISKEY
228                                MinQuest
Inc.                                                                0923394

    WHISKEY
229                                MinQuest
Inc.                                                                0923395

    WHISKEY
230                                MinQuest
Inc.                                                                0923396

    WHISKEY
231                                MinQuest
Inc.                                                                0923397

    WHISKEY
232                                MinQuest
Inc.                                                                0923398

    WHISKEY
233                                MinQuest
Inc.                                                                0923399

    WHISKEY
234                                MinQuest
Inc.                                                                0923400

    WHISKEY
235                                MinQuest
Inc.                                                                0923401

    WHISKEY
236                                MinQuest
Inc.                                                                0923402

    WHISKEY
237                                MinQuest
Inc.                                                                0923403

    WHISKEY
238                                MinQuest
Inc.                                                                0923404

    WHISKEY
239                                MinQuest
Inc.                                                                0923405

    WHISKEY
240                                MinQuest
Inc.                                                                0923406

    WHISKEY
241                                MinQuest
Inc.                                                                0923407

    WHISKEY
242                                MinQuest
Inc.                                                                0923408

    WHISKEY
243                                MinQuest
Inc.                                                                0923409

    WHISKEY
244                                MinQuest
Inc.                                                                0923410

    WHISKEY
245                                MinQuest
Inc.                                                                0923411

    WHISKEY
246                                MinQuest
Inc.                                                                0923412

    WHISKEY
247                                MinQuest
Inc.                                                                0923413

    WHISKEY
248                                MinQuest
Inc.                                                                0923414

    WHISKEY
249                                MinQuest
Inc.                                                                0923415

    WHISKEY
250                                MinQuest
Inc.                                                                0923416

    WHISKEY
251                                MinQuest
Inc.                                                                0923417

    WHISKEY
254                                MinQuest
Inc.                                                                0923418

    WHISKEY
255                                MinQuest
Inc.                                                                0923419

    WHISKEY
256                                MinQuest
Inc.                                                                0923420

    

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    SCHEDULE
“B”

    

    

    “Net
Smelter Return” shall mean the aggregate proceeds received by the Optionee from
time to time from any smelter or other purchaser from the sale of any ores,
concentrates, metals or any other material of commercial value produced by and
from the Property after deducting from such proceeds the following charges only
to the extent that they are not deducted by the smelter or other purchaser in
computing the proceeds:

    

    
      	
              (a)

            	
              The
      cost of transportation of the ores, concentrates or metals from the
      Property to such smelter or other purchaser, including related
      insurance;

            

    

    (b)           Smelting
and refining charges including penalties; and

    

    
      	
               
      

            	
              The
      Optionee shall reserve and pay to the Optionor a NSR equal to three (3%)
      percent

            

    

    
      	
               
      

            	
              of
      Net Smelter Return.

            

    

    

    
      	
               
      

            	
              Payment
      of NSR payable to the Optionor hereunder shall be made quarterly within
      thirty

            

    

    
      	
               
      

            	
              (30)
      days after the end of each calendar quarter during which the Optionee
      receives

            

    

    
      	
               
      

            	
              Net
      Smelter Returns in USD dollars or in kind bullion at the discretion of the
      Optionor.

            

    

    
      	
               
      

            	
              Within
      (60) days after the end of each calendar quarter for which the NSR for
      such

            

    

    
      	
               
      

            	
              year
      shall be audited by the Optionee and any adjustments in the payments of
      NSR

            

    

    
      	
               
      

            	
              to
      the Optionor shall be made forthwith after completion of the audit. All
      payments of

            

    

    
      	
               
      

            	
              NSR
      to the Optionor for a calendar year shall be deemed final and in full
      satisfaction of

            

    

    
      	
               
      

            	
              all
      obligations of the Optionee in respect thereof if such payments or the
      calculations

            

    

    
      	
               
      

            	
              thereof
      are not disputed by the Optionor of the same audited statement. The
      Optionee

            

    

    
      	
               
      

            	
              shall
      maintain accurate records relevant to the determination of the NSR and the
      Optionor

            

    

    
      	
               
      

            	
              or
      its authorized agent, shall be permitted the right to examine such records
      at all

            

    

    
      	
               
      

            	
              reasonable
      times.

            

    

    

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              SCHEDULE
      “C”

            

    

    

    

    
      	
              Claim
      expenses 82 claims @ $100/claim

            	 	$	8,200.00	 
	 
      	 	 	 	 
	
              BLM
      Location filing fees 82 @ $170

            	 	$	13,940.00	 
	 
      	 	 	 	 
	
              County
      Location fees  82 @ $35.50

            	 	$	2,911.00	 
	 
      	 	 	 	 
	
              Annual
      filing fees BLM, County 42 @ $133.50

            	 	$	5,607.00	 
	 
      	 	 	 	 
	
              Total

            	 	$	30,658.00	 

    

    

    

    17form8k032008ex10-2.htm

    
      

      

    

     

    PROPERTY
OPTION AGREEMENT

    

    THIS
AGREEMENT made and entered into as of the 15th day of
March, 2008

    

    BETWEEN:           MinQuest
Inc., a company having a mailing address at 4235 Christy Way,
Reno, Nevada, 89519, U.S.A.

    

    (herein called the
“Optionor”)

    

    OF
THE FIRST PART

    

    

    AND:                      Patriot
Gold Corp., a company having an office at #501-1775 Bellevue Ave., West
Vancouver, B.C., Canada V7V 1A9

    

    (herein called the
“Optionee”)

    

    OF
THE SECOND PART

    

    WHERAS
the Optionor has represented that it is the sole recorded and beneficial owner
in and to the property called the NK Project (the “Property) described in
Schedule “A” attached hereto;

    

    AND
WHEREAS the Optionor, subject to the Net Smelter Royalty reserved to the
Optionor, now wishes to grant to the Optionee the exclusive right and option to
acquire an undivided 100% right, title and interest in and to the Property on
the terms and conditions hereinafter set forth;

    

    NOW
THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises, the
mutual covenants herein set forth and the sum of One Dollar ($1.00) of lawful
money of U.S. currency now paid by the Optionee to the Optionor (the receipt
whereof is hereby acknowledged), the Parties hereto do hereby mutually covenant
and agree as follows:

    

    1.           Definitions

    

    The
following words, phrases and expressions shall have the following
meanings:

    

    (a)           “After
Acquired Properties” means any and all mineral interests staked, located,
granted or acquired by or on behalf of either of the parties hereto during
the currency of this Agreement which are located, in the whole or in part,
within one mile of the existing perimeter of the Property;

    

    (b)           “Exchange”
means OTCBB Venture Exchange;

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    (c)           “Expenditures”
includes all direct or indirect expenses [net of government incentives
and not including payments to the Optionor pursuant to section 4,
paragraphs (a), (b)(ii), (c)(ii), (d)(ii), (e)(ii), (f)(ii), (g)(ii), (h)(ii),
(i)(ii), (j)(ii), and
(k)(ii) hereof ] of or incidental to Mining Operations. The certificate of the
Controller
or other financial officer of the Optionee, together with a statement of
Expenditures
in reasonable detail shall be prima facie evidence of such Expenditures;
the parties hereto agree that Property payments and Property expenditures
are separate payments as outlined in paragraph 4;

    

    (d)           “Facilities”
means all mines and plants, including without limitation, all pits,
shafts, adits, haulageways, raises and other underground workings, and all
buildings, plants, facilities and other structures, fixtures and improvements,
and all other property, whether fixed or moveable, as the same may
exist at any time in, or on the Property and relating to the operator
of the Property as a mine or outside the Property if for the exclusive
benefit of the Property only;

    

    (e)           “Force
Majeure” means an event beyond the reasonable control of the Opionee
that prevents or delays it from conducting the activities contemplated
by this Agreement other than the making of payments referred
to in Section 4 herein. Such events shall include but not be limited
to acts
of God, war, insurrection, action of governmental agencies reflecting
an instability in government procedures, or delay in permitting unacceptable
to both Optionor and Optionee;

    

    (f)           “Mineral
Products” means the commercial end products derived from operating
the Property as a mine:

    

    (g)           “Mining
Operations” includes:

    

    (i)           every
kind of work done on or with respect to the Property by or under the
direction of the Optionee during the Option Period or pursuant
to an approved Work Program; and

    

    (ii)           without
limiting the generality of the foregoing, including all work capable
of receiving assessment credits pursuant to the Mines and Minerals
act of Nevada and the work of assessment, geophysical,
geochemical and geological surveys, studies and mapping,
investigating, drilling, designing, examining equipping, improving,
surveying, shaft sinking, raising, cross-cutting and drifting,
searching for, digging, trucking, sampling, working and procuring
minerals, ores and metals, in surveying and bringing any mineral
claims to lease or patent, in doing all other work usually considered
to be prospecting, exploration, development, a feasibility
study, mining work, milling concentration, beneficiation or ores
and concentrates, as well as the separation and extraction of Mineral
Products and all reclamation, restoration and
permittingactivities;

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (h)           “Net
Smelter Royalty” means that Net Smelter Royalty as defined in Schedule
“B” attached hereto (“NSR”);

    

    (i)           “Option”
means the option granted by the Optionor to the Optionee to acquire,
subject to the NSR reserved to the Optionor, an undivided 100% right,
title and interest in and to the Property as more particularly set forth
in
Section 4;

    

    (j)           “Option
Period” means the period from the date hereof to the date at which the
Optionee has performed its obligations to acquire its 100% interest
in the Property as set out in Section 4 hereof, which ever shall be the
lesser period;

    

    (k)           “Property”
means the mineral claims described in Schedule “A”;

    

    (l)           “Filing
Fees” means all fees, payments and expenses necessary to keep the mineral claims
in good standing with federal, state and local government entities;

    

    (m)           “Work
Program” means a program of work reasonably acceptable to both parties
in respect of a particular Property, contained in a written document
setting
out in reasonable detail;

    

    (i)           An
outline of the Mining Operations proposed to be undertaken and
conducted on the Property, specifically stating the period of time
during which the work contemplated by the proposed program
is to be done and performed;

    

    (ii)           The
estimated cost of such Mining Operations including a proposed
budget providing for estimated monthly cash requirements
in advance and giving reasonable details; and

    

    (iii)           The
identity and credentials of the person or persons undertaking the
Mining Operations so proposed if not the Optionor, reasonably
acceptable to both parties hereto.

    

    2.           Headings

    

    Any heading, caption or index hereto
shall not be used in any way in construing or
interpreting any provision hereof.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    3.           Singular,
Plural

    

    Whenever the singular or masculine or
neuter is used in this Agreement, the same shall be
construed as meaning plural or feminine or body politic or corporate or vice
versa, as
the context so requires.

    

    4.           Option

    

    The Optionor hereby grants to the
Optionee the sole and exclusive right and option
(the “Option”) to earn a 100% interest in the Property exercisable as
follows:

    

    (a)           The
Optionee paying the sum of $20,000 USD to the Optionor by way of cash and
reimburse all holding costs and expenses of location of mining claims, such
expenses to be identified in Schedule “C”;

    

    (b)           On
or before March 15th,
2009

    

    (i)           The
Optionee incurring Expenditures of $50,000 USD on the property;

    

    (ii)           The
Optionee paying $20,000 USD to the Optionor;

    

    (c)           On
or before March 15th,
2010

    

    (i)           The
Optionee incurring Expenditures of $150,000 USD on the Property
in addition to the expenditures referred to in clause (b)(i);

    

    (ii)           The
Optionee paying $20,000 U.S to the Optionor;

    

    (d)           On
or before March 15th,
2011

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i)
and (c)(i) hereof; and

    

    (ii)           The
Optionee paying $35,000 USD to the Optionor;

    

    (e)           On
or before March 15th,
2012

    

    (i)           The
Optionee incurring Expenditures of $350,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i) and (d)(i) hereof; and

    

    (ii)           The
Optionee paying $45,000 USD to the Optionor; and

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (f)           On
or before March 15th,
2013

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i) and (e)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor.

    

    

    (g)           On
or before March 15th,
2014

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i) and (e)(i) and (f)(i) hereof

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    

    (h)           On
or before March 15th,
2015

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i), (e)(i), (f)(i) and (g)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    (i)           On
or before March 15th,
2016

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i), (e)(i), (f)(i), (g)(i) and (h)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    

    (j)           On
or before March 15th,
2017

    

    (i)           The
Optionee incurring Expenditures of $200,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i) and (i)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (k)           On
or before March 15th,
2018

    

    (i)           The
Optionee incurring Expenditures of $750,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i),
(c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i) and (j)(i)
hereof;

    

    (ii)           Optionee
paying $100,000 USD to the Optionor.  Following which the
Optionee shall be deemed to have exercised the Option (the “Exercise
Date”) and shall be entitled to an undivided 100% right, title and
interest in and to the Property with the full right and authority
to equip the Property for production and operate the Property
as a mine subject to the rights of the Optionor to receive the
NSR.

    

    The
Optionee shall have the one time right exercisable for 90 days following
completion of a bankable feasibility study to buy up to one half (50%) of the
Optionor’s NSR interest (i.e. an amount equal to 1.5% of the NSR interest) for
USD $2,250,000. The right to purchase the said NSR interest shall be exercised
by the Optionee providing the Optionor with notice of the purchase accompanied
by payment in the amount of USD $2,250,000.

    

    The
Optionor and Optionee understand and confirm that all Expenditures incurred in a
particular period, including any excess in the amount of Expenditures required
to be incurred to maintain the Option during such period, shall be carried over
and included in the aggregate amount of Expenditures for the subsequent period,
but not to exceed more than three (3) consecutive years.

    

    Notwithstanding
paragraphs (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i),
(j)(i) and (k)(i) if the Optionee has not incurred the requisite Expenditures to
maintain its option in good standing prior to March 15th  of
any given year, the Optionee may pay to the Optionor within 60 days following
the expiry of such period, the amount of the deficiency and such amount shall
thereupon be deemed to have been Expenditures incurred by the Optionee during
such period.

    

    (l)           The
doing of any act or the incurrence of any cash payments by the Optionee
shall not obligate the Optionee to do any further acts or make any
further payments with the exception of fees and expenses to keep said property
in good standing as per paragraph 8b.

    

    5.           Transfer
of Title

    

    Upon Optionee’s completion of all
requirements to earn a 100 percent interest in the Property, the Optionor will
deliver or cause to be delivered to the Optionee’s solicitors a duly executed
transfer of Property in favor of the Optionee (the “Optionee Transfer”). The
Optionee shall be entitled to record the Optionee Transfer with the appropriate
government offices to effect transfer of legal title of the Property into its
own name upon
the full and complete exercise of the Option by the Optionee. In the event the
Optionee Transfer is recorded the Optionor shall be entitled to record notice of
its NSR interest.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    6.           Mining
Operations during Option

    

    During the Option Period, the Optionor
may provide its mineral exploration expertise on the Property, on a consultation
basis for and on behalf of the Optionee, at the election of the
Optionee.  However, the Optionee has the exclusive right to determine
what Expenditures and Mining Operations it will perform, when they will be
performed, and by whom. If the Optionee elects to use the mineral expertise and
consulting services of the Optionor, then the Optionor shall invoice for time
for consulting services and related travel expenses from time to time and the
prompt payment of such invoices when due shall constitute a portion of
Expenditures by the Optionee as contemplated under Section 4
hereof.

    

    During the currency of this Agreement,
the Optionee, its servants, agents and workmen and any persons duly authorized
by the Optionee, shall have the right of access to and from and to enter upon
and take possession of and prospect, explore and develop the Property in such
manner as the Optionee in its sole discretion may deem advisable and shall have
the right to remove and ship therefrom ores, minerals, metals, or other products
recovered in any manner therefrom.

    

    7.           Assignment

    

    During the Option Term, both parties
shall have the right to sell, transfer, assign, mortgage, pledge its interest in
this Agreement or its right or interest in the Property. It will be a condition
of any assignment under this Agreement that such assignee shall agree in writing
to be bound by the terms of this Agreement applicable to the
assignor.

    

    8.           Termination

    

    This Agreement shall forthwith
terminate in circumstances where:

    

    (a)           The
Optionee shall fail to comply with any of its obligations hereunder,
subject
to Force Majeure, and within 30 days of receipt by the Optionee of written
notice from the Optionor of such default, the Optionee has not:

    

    (i)           cured
such default, or commenced proceedings to cure such default
and prosecuted same to completion without undue delay;
or

    

    (ii)           given
the Optionor notice that it denies that such default has
occurred.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    In the
event that the Optionee gives notice that it denies that a default has occurred,
the Opionee shall not be deemed to be in default until the matter shall have
been determined finally through such means of dispute resolution as such matter
has been subjected to by either party; or

    

    (b)           The
Optionee gives notice of termination to the Optionor, which it shall be at
liberty to do at any timeafter the execution of this Agreement. If and when the
Optionee elects to terminate this Agreement, or terminate one of the projects
comprising the Property, at such time the Property or the specific project will
be returned to the Optionor and all claim fees, payments and expenses will be
paid in order to maintain the property in good standing for one year after
termination.

    

    Upon the
termination of this Agreement under this Section 8, the Optionee shall cease to
be liable to the Optionor in debt, damages, claim fees or otherwise, other than
to pay the claim fees as described in paragraph (b) of this Section 8 and all
liabilities referred to in Section 11.

    

    Upon
termination of this Agreement under this Section 8, the Optionee shall return
the Property, including all property within the designated boundary of the area
of interest, to the Optionor. The Optionee shall vacate the Property within a
reasonable time after such termination and relinquishment, but shall have the
right of access to the Property for a period of six months thereafter for the
purpose of removing its chattels, machinery, equipment and
fixtures.

    

    9.           Representations,
Optionies and Covenants of the Optionor

    

    The Optionor represents, options and
covenants to and with the Optionee as follows:

    

    (a)           The
Optionor is a company duly organized validly existing and in good
standing under the laws of Nevada;

    

    (b)           The
Optionor has full power and authority to carry on its business and to
enter
into this Agreement and any agreement or instrument referred to or contemplated
by this Agreement;

    

    (c)           Neither
the execution and delivery of this Agreement, nor any of the agreements referred
to herein or contemplated hereby, nor the consummation of the transactions
hereby contemplated hereby, nor the consummation
of the transactions hereby contemplated conflict with, result in
the breach of or accelerate the performance required by, any agreement
to which it is a party;

    

    (d)           The
execution and delivery of this Agreement and the agreements contemplated hereby
will not violate or result in the breach of the laws of any
jurisdiction applicable or pertaining thereto or of its constating documents;

       

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    (e)           The
Agreement constitutes a legal, valid and binding obligation of the
Optionor;

    

    (f)           The
Property is accurately described in Schedule “A”, is in good standing under the
laws of the jurisdiction in which it is located and is free and clear of all
liens, charges and encumbrances;

    

    (g)           The
Optionor is the sole recorded and beneficial owner of the Property and has
the exclusive right to enter into this Agreement and all necessary authority
to transfer its interest in the Property in accordance with the terms of this
Agreement;

    

    (h)           No
Person, firm or corporation has any proprietary or possessorty interest
in the
Property other than the Optionor, and no person, firm or corporation is entitled
to any royalty or other payment in the nature of rent or royalty on any
minerals, ores, metals or concentrates or any other such products removed from
the Property other than the government of the state of Nevada pursuant to
statute; notwithstanding any Federal, State or County royalties or net proceeds
tax derived from mining operations.

    

    (i)           Upon
request by the Optionee, and at the sole cost of the Optionee, the Optionor
shall deliver or cause to be delivered to the Optionee copies of all available
maps and other documents and data in its possession respecting the Property.
Nothing will be withheld, hidden, or kept from the Optionee, whether the data or
information is held or not by the Optionor; and

    

    (j)           Subject
to performance by the Optionee of its obligations under Section 4, during the
Option Period, the Optionor will keep the Property in good standing, free and
clear of all liens, charges and encumbrances, will carry out all Mining
Operations on the Property in a miner-like fashion if the Optionee elects to use
the mining expertise and consulting services of the Optionor, will obtain all
necessary licenses and permits as shall be necessary and will file all
applicable work up to the legal limits as assessment work under the Mines and
Mineral Act (Nevada)

    

    10.           Representations,
Optionies and Covenants of the Optionee

    

    The
Optionee represents, Options and covenants to and with the Optionor
that:

    

    (a)           The
Optionee is a company duly organized validly existing and in good standing under
the laws of Nevada;

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (b)           The
Optionee has full power and authority to carry on its business and to enter into
this Agreement and any agreement or instrument referred to or contemplated by
this Agreement;

    

    (c)           Neither
the execution and delivery of this Agreement, nor any of the agreements referred
to herein or contemplated hereby, nor the consummation of the transactions
hereby contemplated conflict with,

    result in the breach of or accelerate
the performance required by, any agreement to which it is a party;

    

    (d)           The
execution and delivery of this Agreement and the agreements contemplated hereby
will not violate or result in the breach of the laws of any jurisdiction
applicable or pertaining thereto or of its constating documents;
and

    

    (e)           This
Agreement constitutes a legal, valid and binding obligation of the
Optionee.

    

    11.           Indemnity
and Survival of Representation

    

    The representation and Optionies
hereinbefore set out are conditions on which the parties have relied in entering
into this Agreement and shall survive the acquisition of any interest in the
Property by the Optionee and each of the parties will indemnify and save the
other harmless from all loss, damage, costs, actions and suits arising out of or
in connection with any breach of any representation, option, covenant, agreement
or condition made by them and contained in this Agreement.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability to which it may be subject arising
from any Mining Operations carried out by the Optionor or at its direction on
the Property. The Optionee agrees to indemnify and save harmless the Optionor
from any liability to which it may be subject arising from any Mining Operations
carried out by the Optionee or at its direction on the Property.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability arising form any and every kind of
work done on or with respect to the Property prior to the signing of this
Agreement (the “Prior Operations”). Without limiting the generality of the
foregoing, Prior Operations includes all work capable of receiving assessment
credits pursuant to The Mines and Minerals Act of Nevada and the work of
assessment, geophysical, geochemical and geological surveys, studies and
mapping, investigating, drilling, designing, examining equipping, improving,
surveying, shaft sinking, raising, cross-cutting and drifting, searching for,
digging, trucking, sampling, working and procuring minerals, ores and metals, in
surveying and bringing any mineral claims to lease or patent, in doing all other
work usually considered to be prospecting, exploration, development, a
feasibility study, mining work, milling, concentration, beneficiation of ores
and concentrates, as well as the separation and extraction of Mineral Products
and all reclamation, restoration and permitting activities.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    12.           Confidentiality

    

    The parties hereto agree to hold in
confidence all information obtained in confidence in respect of the Property or
otherwise in connection with this Agreement other than in circumstances where a
party has an obligation to disclose such information in accordance with
applicable securities legislation, in which case such disclosure shall only be
made after consultation with the other party.

    

    13.           Notice

    

    All notices, consents, demands and
requests ( in this Section 13 called the “Communication”) required or permitted
to be given under this Agreement shall be in writing and may be delivered
personally sent by telegram, by telex or telecopier or other electronic means or
may be forwarded by first class prepaid registered mail to the parties at their
addresses first above written. Any Communication delivered personally or sent by
telegram, telex or telecopier or other electronic means including email shall be
deemed to have been given and received on the second business day next following
the date of sending. Any Communication mailed as aforesaid shall be deemed to
have been given and received on the fifth business day following the date it is
posted, addressed to the parties at their addresses first above written or to
such other address or addresses as either party may from time to time specify by
notice to the other; provided, however, that if there shall be a mail strike,
slowdown or other labor dispute which might effect delivery of the Communication
by mail, then the Communication shall be effective only if actually delivered.
For purposes of this agreement and as a definition of address the Optionor’s
email shall be defined as rrkern@charter.net
and the Optionor’s telecopier number is 775-746-0938. The Optionee’s email shall
be defined as info@patriotgoldcorp.com
and the Optionee’s telecopier number is 604-925-5258. Notice will be provided to
each party should their respective email address change.

    

    14.           Further
Assurances

    

    Each of the parties to this Agreement
shall from time to time and at all times do all such further acts and execute
and deliver all further deeds and documents as shall be reasonably required in
order to fully perform and carry out the terms of this Agreement

    

    15.           Entire
Agreement

    

    The parties hereto acknowledge that
they have expressed herein the entire understanding and obligation of this
Agreement and it is expressly understood and agreed that no implied covenant,
condition, term or reservation, shall be read into this Agreement relating to or
concerning any matter or operation provided for herein

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    16.           Proper
Law and Arbitration

    

    This
Agreement will be governed by and construed in accordance with the laws of the
State of Nevada and the laws of the United States of America. The parties hereto
hereby irrevocably attorn to the jurisdiction of the Courts of Nevada. All
disputes arising out of or in connection with this Agreement, or in respect of
any defined legal relationship associated therewith or derived therefrom, shall
be referred to and finally resolved by a sole arbitrator by arbitration under
the rules of The Arbitration Act of Nevada.

    

    17.           Enurement

    

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

    

    18.           After
Acquired Properties

    

    (i)           The
parties covenant and agree, each with the other, that any and all After Acquired
Properties shall be subject to the terms and conditions of this Agreement
and shall be added to and deemed, for the purposes hereof, to be
included in the Property. Any costs incurred by the Optionor in staking,
locating, recording or otherwise acquiring any “After Acquired Properties” will
be deemed to be Mining Operations for which the Optionor will be entitled to
reimbursements as part of the Expenditures payable by the Optionee
hereunder.

    

    (ii)           Any
additional claims agreed by the Optionee to be staked by the Optionor within 1
mile from the existing perimeter of the Property boundaries shall form party of
this Agreement. The Optionee will reimburse the Optionor for the costs of
staking the additional claims, unless the Optionee does not elect to have the
additional claims subject to this Agreement.

    

    19.           Default

    

    Notwithstanding anything in this
Agreement to the contrary if any party (a “Defaulting Party”) is in default of
any requirement herein set forth the party affected by such default shall give
written notice to the Defaulting Party specifying the default and the Defaulting
Party shall not lose any rights under this Agreement, unless thirty (30) days
after the giving of notice of default by the affected party the Defaulting Party
has failed to take reasonable steps to cure the default by the appropriate
performance and if the Defaulting Party fails within such period to take
reasonable steps to cure any such default, the affected party shall be entitled
to seek any remedy it may have on account of such default including, without
limiting, termination of this Agreement.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    20.           Payment

    

    All references to monies herein shall
be in US funds unless otherwise specified. The Optionee shall make payments for
the Expenditures incurred by the Optionor no later than 30 days after the
receipt of invoices delivered by the Optionee to do any acts or make any
payments hereunder, and any act or payment or payments as shall be made
hereunder shall not be construed as obligating the Optionee to do any further
act or make any further payment or payments.

    

    21.           Supersedes
Previous Agreements

    

    This Agreement supersedes and replaces
all previous oral or written agreements, memoranda, correspondence or other
communications between the parties hereto relating to the subject matter
hereof.

    

    

    IN WITNESS WHEREOF the Parties
hereto have duly executed this Agreement effective as of the 15th day of
March, 2008

    

    MinQuest
Inc.

    

    

    

    Per: /S/ Richard A.
Kern,

    Richard
A. Kern, President

    

    Patriot
Gold Corp.

    

    

    

    Per: /S/ Robert
Coale

    Robert
Coale, President

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    SCHEDULE
“A”

    

    Sections
13, 24, 25, T14N, R34E, MDB&M, Mineral County, Nevada

    

    CLAIM
NAME                                                             NMC
NUMBER

    

    NK
1                                                                                  
    Pending

    NK
2                                                                                    
  Pending

    NK
3                                                                                     
 Pending

    NK
4                                                                                     
 Pending

    NK
5                                                                                     
 Pending

    NK
6                                                                                     
 Pending

    NK
7                                                                                     
 Pending

    NK
8                                                                                     
 Pending

    NK
9                                                                                     
 Pending

    NK
10                                                                                     Pending

    NK
11                                                                                     Pending

    NK
12                                                                                     Pending

    NK
13                                                                                     Pending

    NK
14                                                                                     Pending

    NK
15                                                                                     Pending

    NK
16                                                                                     Pending

    NK
17                                                                                     Pending

    NK
18                                                                                     Pending

    NK
19                                                                                     Pending

    NK
20                                                                                     Pending

    NK
21                                                                                     Pending

    NK
22                                                                                     Pending

    NK
23                                                                                     Pending

    NK
24                                                                                     Pending

    NK
25                                                                                     Pending

    NK
26                                                                                     Pending

    NK
27                                                                                     Pending

    NK
28                                                                                     Pending

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    SCHEDULE
“B”

    

    

    “Net
Smelter Return” shall mean the aggregate proceeds received by the Optionee from
time to time from any smelter or other purchaser from the sale of any ores,
concentrates, metals or any other material of commercial value produced by and
from the Property after deducting from such proceeds the following charges only
to the extent that they are not deducted by the smelter or other purchaser in
computing the proceeds:

    

    (a)           The
cost of transportation of the ores, concentrates or metals from the Property to
such smelter or other purchaser, including related insurance;

    (b)           Smelting
and refining charges including penalties; and

    

    The
Optionee shall reserve and pay to the Optionor a NSR equal to three (3%) percent
of Net
Smelter Return.

    

    Payment
of NSR payable to the Optionor hereunder shall be made quarterly within thirty
(30) days
after the end of each calendar quarter during which the Optionee receives
Net
Smelter Returns in USD dollars or in kind bullion at the iscretion of the
Optionor. Within
(60) days after the end of each calendar quarter for which the NSR for such
year
shall be audited by the Optionee and any adjustments in the payments of NSR
to the
Optionor shall be made forthwith after completion of the audit. All payments of
NSR to
the Optionor for a calendar year shall be deemed final and in full satisfaction
of all
obligations of the Optionee in respect thereof if such payments or the
calculations thereof
are not disputed by the Optionor of the same audited statement. The Optionee
shall
maintain accurate records relevant to the determination of the NSR and the
Optionor or its
authorized agent, shall be permitted the right to examine such records at all
reasonable
times.

    

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    SCHEDULE
“C”

    

    

    
      	
              Claim
      expenses 28 claims @ $100/claim

            	 	$	2,800.00	 
	 
      	 	 	 	 
	
              BLM
      Location filing fees 28 @ $170

            	 	$	4,760.00	 
	 
      	 	 	 	 
	
              County
      Location fees  28 @ $35.50

            	 	$	994.00	 
	 
      	 	 	 	 
	
              Annual
      filing fees BLM, County

            	 	$	0.00	 
	 
      	 	 	 	 
	
              Total

            	 	$	8,554.00	 

    

    

     

    16

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