Document:

Exhibit 10.1

                      Purchase Agreement

This Purchase Agreement (Agreement) is made by and
among U.S. Environmental Corporation (USEC), a
Colorado corporation, Tonkin Springs Venture
Limited Partnership, a Nevada limited partnership
(TSVLP or the Seller) and, BacTech Nevada
Corporation (BacTech Nevada or BacTech), a Nevada
corporation.

                          Recitals

A.  TSVLP and USEC own all the issued and
outstanding ownership interests of Tonkin Springs
LLC (TSLLC), a Delaware limited liability company.

B.  TSLLC is the owner of the Tonkin Springs
Property (defined below).

C.  U.S. Gold Corporation (USGold), the parent
corporation of USEC and TSVLP, and BacTech
Enviromet Corporation (BacTech Canada), the parent
company of BacTech Nevada are parties to a certain
letter agreement dated March 25, 2003 as amended
on March 28, 2003 (collectively, the Letter
Agreement), pursuant to which USGold and BacTech
Canada agreed to the basic terms of their
agreement for the sale by TSVLP to BacTech Canada,
or its nominee, of the shares of a fifty-five
percent (55%) ownership interest in TSLLC.

D.  The parties desire to formalize the terms of
their agreement as provided in this Agreement.

The parties, intending to be legally bound, agree
as follows:

1.  Definitions.  For purposes of this Agreement,
the following terms have the meanings specified or
referred to in this Section 1:

1.1 Applicable Contract means any Contract (a)
under which TSLLC has or may acquire any rights or
interests; (b) under which TSLLC has or may become
subject to any obligations or liabilities; or (c)
by which TSLLC, or any of the assets owned or used
by it, is or may become bound.

1.2  BacTech Canada means BacTech Enviromet
Corporation, a corporation organized under the
laws of the Canada, and its successors and
assigns.

1.3 BacTech Nevada means BacTech Nevada
Corporation, a Nevada corporation, and its
successors and assigns.

1.4 Balance Sheet shall have the meaning defined
in Section 3.5.

1.5 Breach means a Breach of a representation,
warranty, covenant, obligation, or other provision
of this Agreement or any instrument delivered
pursuant to this Agreement will be deemed to have
occurred if there is or has been (a) any
inaccuracy in or breach of, or any failure to
perform or comply with, such representation,
warranty, covenant, obligation, or other
provision; or (b) any claim (by any Person) or
other occurrence or circumstance that is or was
inconsistent with such representation, warranty,
covenant, obligation, or other provision, and the
term Breach means any such inaccuracy, breach,
failure, claim, occurrence, or circumstance.

1.6 Closing shall have the meaning defined in
Section 2.3.

1.7 Closing Date means the date and time as of
which the Closing actually takes place.

1.8 Commercial Production means the last day of a
consecutive two-month period during which payable
or accountable gold production from the Tonkin
Springs Property totals at least 3,000 ounces of
gold per month, provided that such production is
part of an approved program of at least one year
in duration which contemplates an estimated
budgeted production rate of at least 40,000 ounces
of gold per annum.

1.9 Contemplated Transactions means all of the
transactions contemplated by this Agreement,
including:

(a)  the sale of the Ownership Interests by Seller
to BacTech and BacTech's acquisition and ownership
of the Ownership Interests and the exercise of
control over TSLLC;

(b)  the execution, delivery and performance of
the Members' Agreement and the Operating
Agreement;  and

(c)  the performance by BacTech and Seller of
their respective covenants and obligations under
this Agreement.

1.10 Contract means any agreement, contract,
obligation, promise, or undertaking (whether
written or oral and whether express or implied)
that is legally binding.

1.11 Due Diligence means BacTech's examinations
and investigations intended to determine the
accuracy of the representations and warranties of
TSVLP and USEC, the title to and value of the
assets, and all other matters pertinent or related
to BacTech's decision to close the Contemplated
Transactions.

1.12 Due Diligence Period means the period of time
during which BacTech shall have the opportunity to
conduct its due diligence investigation of Seller
and TSLLC which period shall continue until July
31, 2003.

1.13 Environment means soil, land surface or
subsurface strata, surface waters (including
navigable waters, ocean waters, streams, ponds,
drainage basins, and wetlands), ground waters,
underground water, drinking water supply, stream
sediments, ambient air (including indoor air), all
layers of atmosphere, plant and animal life, all
living organisms and interacting natural systems
that include components of air, land, water,
organic or inorganic matter and living organisms
and any other environmental medium or natural
resource.

1.14 Exhibits means the exhibits attached to and
by reference incorporated in this Agreement.

1.15 Governmental Authorization means any
approval, consent, license, permit, waiver, or
other authorization issued, granted, given, or
otherwise made available by or under the authority
of any governmental body or pursuant to any Legal
Requirement.

1.16  Knowledge means an individual will be deemed
to have Knowledge of a particular fact or other
matter if:

(a)  such individual is actually aware of such
fact or other matter; or

(b)  a prudent individual could be expected to
discover or otherwise become aware of such fact or
other matter in the course of conducting a
reasonably comprehensive investigation concerning
the existence of such fact or other matter.

A Person (other than an individual) will be deemed
to have Knowledge of a particular fact or other
matter if any individual who is serving, or who
has at any time served, as a director, officer,
partner, executor, or trustee of such Person (or
in any similar capacity) has, or at any time had,
Knowledge of such fact or other matter.

1.17 Legal Requirement means any federal, state,
local, municipal, foreign, international,
multinational, or other administrative order,
constitution, law, ordinance, principle of common
law, regulation, statute, or treaty.

1.18 Members' Agreement means that certain Second
Amended and Restated Members' Agreement of the
members of Tonkin Springs LLC dated as of July 31,
2003, by and among TSVLP, USEC and BacTech Nevada.

1.19 Operating Agreement means that certain Second
Amended and Restated Operating Agreement of Tonkin
Springs LLC dated as of July 31, 2003, by and
among TSVLP, USEC and BacTech Nevada.

1.20 Organizational Documents means (a) the
articles or certificate of incorporation and the
bylaws of a corporation; (b) the articles of
organization and the operating agreement of a
limited liability company; (c) the partnership
agreement and any statement of partnership of a
general partnership; (d) the limited partnership
agreement and the certificate of limited
partnership of a limited partnership; (e) any
charter or similar document adopted or filed in
connection with the creation, formation, or
organization of a Person; and (f) any amendment to
any of the foregoing.

1.21 Ownership Interests means the interests of
TSLLC owned by TSVLP to be sold to BacTech and
which represent a fifty-five percent (55%)
ownership interest in TSLLC.

1.22 Person means any individual, corporation
(including any non-profit corporation), general or
limited partnership, limited liability company,
joint venture, syndicate, estate, trust, trustee,
administrator or other legal personal
representative, association, organization, labor
union, or other entity or governmental body
however designated or constituted.

1.23 Proceeding means any action, arbitration,
audit, hearing, investigation, inquiry,
litigation, or suit (whether civil, quasi-
criminal, criminal, administrative, investigative,
or informal) commenced, brought, conducted, or
heard by or before, or otherwise involving, any
governmental, administrative, regulatory or
similar body or arbitrator.

1.24 Purchase Price means the purchase price for
the Ownership Interests as provided in Section
2.2.

1.25 Representative means with respect to a
particular Person, any director, officer,
employee, agent, consultant, advisor, or other
representative of such Person, including legal
counsel, accountants, and financial advisors.

1.26 Securities Act means the Securities Act of
1933 or any successor law, and regulations and
rules issued pursuant to that Act or any successor
law.

1.27 Seller means TSVLP and its successors and
assigns.

1.28 Tax means assessments, charges, deductions,
fees, imposts and levies assessed or imposed by
any federal, provincial, state or local government
agency, office or political subdivision.

1.29 Tax Return means any return (including any
information return), report, statement, schedule,
notice, form, or other document or information
filed with or submitted to, or required to be
filed with or submitted to, any governmental body
in connection with the determination, assessment,
collection, or payment of any Tax or in connection
with the administration, implementation, or
enforcement of or compliance with any Legal
Requirement relating to any Tax.

1.30 Threatened means a claim, Proceeding,
dispute, action, or other matter will be deemed to
have been "Threatened" if any demand or statement
has been made (orally or in writing) or any notice
has been given (orally or in writing), or if any
other event has occurred or any other
circumstances exist, that would lead a prudent
Person to conclude that such a claim, Proceeding,
dispute, action, or other matter is likely to be
asserted, commenced, taken, or otherwise pursued
in the future.

1.31 Tonkin Springs Property means the assets,
interests, properties and rights described in
Exhibit A to the Operating Agreement, including
the lands, leases, mineral rights, mining claims
and water rights and obligations and reclamation
obligations related to the foregoing, which
comprise the Tonkin Springs Mine situated in
Eureka County, Nevada.

1.32 TSLLC means Tonkin Springs Limited Liability
Company, a Delaware limited liability company, and
its successors and assigns.

1.33 TSVLP means Tonkin Springs Venture Limited
Partnership, a Nevada limited partnership, and its
successors and assigns.

1.34 USEC means U.S. Environmental Corporation, a
Colorado corporation, and its successors and
assigns.

1.35 USGold means U.S. Gold Corporation, a
Colorado corporation, and its successors and
assigns.

2. Purchase, Sale and Transfer Ownership
Interests; Closing.

2.1 Purchase and Sale.  In consideration of
BacTech's payment to Seller of the sum of Two
Hundred Fifty Thousand Dollars ($250,000.00),
which Seller acknowledges BacTech paid to Seller
on the execution of the Letter Agreement, and the
other consideration provided for in this Agreement
and subject to the terms and conditions of this
Agreement, at the Closing, Seller will sell and
transfer the Ownership Interests to BacTech and
BacTech will purchase the Ownership Interests from
Seller.  The parties agree that the sum of Two
Hundred Fifty Thousand Dollars ($250,000.00) paid
by BacTech Canada to Seller shall be credited in
BacTech's favor against the Purchase Price.

2.2 Purchase Price.  The purchase price for the
Ownership Interests will be (i) One Million Seven
Hundred Fifty Thousand Dollars ($1,750,000.00),
(ii) subject to BacTech's right to withdraw
pursuant to Section 2.1 of the Operating
Agreement, the use at the Tonkin Springs Property
of any proprietary technology owned by BacTech or
its Affiliates at no expense to TSLLC, as
determined by TSLLC's Manager to be necessary or
desirable for operations of the Tonkin Springs
Property, and (iii) subject to BacTech's right to
withdraw pursuant to Section 2.1 of the Operating
Agreement, the additional BACTECH Initial
Contribution as provided in Section 2.2 of the
Members' Agreement.  The purchase price shall
consist of the following components:

(a)  The sum of Two Hundred Fifty Thousand Dollars
($250,000.00) paid by BacTech Canada to Seller on
execution of the Letter Agreement.

(b)  The sum of One Hundred Fifty Thousand Dollars
($150,000.00) payable by BacTech to Seller on the
Closing.

(c)  Subject to BacTech's right to withdraw
pursuant to Section 2.1 of the Operating
Agreement, the sum of Six Hundred Thousand Dollars
($600,000.00) payable by BacTech to Seller on or
before October 31, 2003.

(d)  Subject to BacTech's right to withdraw
pursuant to Section 2.1 of the Operating
Agreement, the sum of Seven Hundred Fifty Thousand
Dollars ($750,000.00) payable by BacTech to Seller
on the commencement of Commercial Production at
the Tonkin Springs Property, or, if Commercial
Production has not been achieved within twelve
(12) months of Closing, BacTech will pay Seller
Sixty-Two Thousand Five Hundred Dollars
($62,500.00) per month, commencing on the first
anniversary of the Closing Date and continuing on
the same day of the eleven (11) following months.

2.3   Closing.  The purchase and sale (the
Closing) provided for in this Agreement will take
place at the offices of Cassels Brock & Blackwell
LLP, 2100 Scotia Plaza, 40 King Street West,
Toronto, Ontario, Canada M5H 3C2 on or before July
31, 2003, or at such other time or place as the
parties may agree.

2.4 Closing Obligations.  At the Closing:

(a)  Seller will deliver to BacTech:

(i) an assignment of the Ownership Interests
executed by the Seller;

(ii) the resignations of TSVLP with William W.
Reid, David C. Reid and William F. Pass as
manager/officers of TSLLC effective on the Closing
Date;

(iii) a certificate executed by Seller and USEC
representing and warranting to BacTech that,
except as stated in such certificate, each of
their representations and warranties in this
Agreement and the Operating Agreement was accurate
in all respects as of the date of this Agreement
and the Operating Agreement, as the case may be,
and is accurate in all respects as of the Closing
Date as if made on the Closing Date (giving full
effect to any supplements to the Exhibits that
were delivered by Seller to BacTech before the
Closing Date); and

(iv) all other documents which Seller and USEC are
obligated to execute and deliver on or before the
Closing, including the Members' Agreement and
Operating Agreement.

(b)  BacTech will deliver to Seller:

(i)  the sum of One Hundred Fifty Thousand Dollars
($150,000.00) which BacTech will deliver by wire
transfer to an account designated by TSVLP;

(ii)  a certificate executed by BacTech to the
effect that, except as otherwise stated in such
certificate, each of BacTech's representations and
warranties in this Agreement and the Operating
Agreement was accurate in all respects as of the
date of this Agreement and the Operating
Agreement, as the case may be, and is accurate in
all respects as of the Closing Date as if made on
the Closing Date; and

(iii) all other documents which BacTech is
obligated to execute and deliver on or before the
Closing, including the Members' Agreement and
Operating Agreement.

3.  Covenants, Representations and Warranties of
Seller and USEC.  Sellers covenant, represent and
warrant to BacTech as follows and acknowledges
that BacTech is relying upon the following
covenants, representations and warranties in
connection with its purchase of the Ownership
Interests:

3.1  Organization and Good Standing.

(a)  TSVLP is a limited partnership duly
organized, validly existing, and in good standing
under the laws of its jurisdiction of
organization, with full power and authority to
conduct its business as it is now being conducted,
to own or use the properties and assets that it
purports to own or use, and to perform all its
obligations under contracts.  TSVLP is duly
qualified to do business as a foreign limited
partnership and is in good standing under the laws
of each state or other jurisdiction in which
either the ownership or use of the properties
owned or used by it, or the nature of the
activities conducted by it, requires such
qualification.

(b)  TSLLC is a limited liability company duly
organized, validly existing, and in good standing
under the laws of its jurisdiction of
organization, with full corporate power and
authority to conduct its business as it is now
being conducted, to own or use the properties and
assets that it purports to own or use, and to
perform all its obligations under Applicable
Contracts.  TSLLC is duly qualified to do business
as a foreign limited liability company and is in
good standing under the laws of each state or
other jurisdiction in which either the ownership
or use of the properties owned or used by it, or
the nature of the activities conducted by it,
requires such qualification.

(c)  Sellers have delivered to BacTech correct and
complete copies of the Organizational Documents of
TSVLP, USEC and TSLLC, as currently in effect.

3.2  Authority; No Conflict.

(a)  This Agreement constitutes the legal, valid,
and binding obligation of Seller, enforceable
against Seller in accordance with its terms. Upon
the execution and delivery by Seller of the
Members' Agreement and Operating Agreement and
such other written assurances as BacTech
reasonably requests Seller execute and deliver
(collectively, the Seller's Closing Documents),
the Seller's Closing Documents will constitute the
legal, valid, and binding obligations of Seller,
enforceable against Seller in accordance with
their respective terms. Seller has the absolute
and unrestricted right, power, authority, and
capacity to execute and deliver this Agreement and
the Seller's Closing Documents and to perform its
obligations under this Agreement and the Seller's
Closing Documents.  Each of this Agreement, the
Members' Agreement and Operating Agreement and the
Seller's Closing Documents required to be
delivered by the Sellers at Closing has been duly
authorized by the Seller.

(b)  Neither the execution and delivery of this
Agreement nor the consummation or performance of
any of the Contemplated Transactions will,
directly or indirectly (with or without notice or
lapse of time):

(i)  contravene, conflict with, or result in a
violation of (A) any provision of the
Organizational Documents of any Seller;  (B) any
resolution adopted by the general partner or the
limited partners of TSVLP; or (C) any resolution
adopted by the managers or the members of TSLLC;

(ii)  contravene, conflict with, or result in a
violation of, or give any governmental body or
other Person the right to challenge any of the
Contemplated Transactions or to exercise any
remedy or obtain any relief under, any Legal
Requirement or any order to which any Sellers, or
any of the assets owned or used by the Seller, may
be subject;

(iii)  contravene, conflict with, or result in a
violation of any of the terms or requirements of,
or give any governmental body the right to revoke,
withdraw, suspend, cancel, terminate, or modify,
any Governmental Authorization that is held by the
Seller or that otherwise relates to the business
of, or any of the assets owned or used by, a
Seller;

(iv)  cause BacTech or Seller to become subject
to, or to become liable for the payment of, any
Tax;

(v)  cause any of the assets owned by the Seller
to be reassessed or revalued by any taxing
authority or other governmental body;

(vi)  contravene, conflict with, or result in a
violation or breach of any provision of, or give
any Person the right to declare a default or
exercise any remedy under, or to accelerate the
maturity or performance of, or to cancel,
terminate, or modify, any Applicable Contract; or

(vii)  result in the imposition or creation of any
encumbrance upon or with respect to any of the
assets owned or used by the Seller.

The Seller is not or will not be required to give
any notice (except the designation to governmental
authorities of the new Responsible Person as
required regarding environmental regulations) to
or obtain any approval or consent from any Person
or file with any governmental entity, regulatory
body, court or other Person in connection with the
execution, delivery or performance of this
Agreement or the consummation or performance of
any of the Contemplated Transactions.

3.3  Financial Statements.  Seller has delivered
to BacTech: (a) consolidated balance sheet of
USGold as at December 31, 2002, and the related
audited consolidated statements of income, changes
of stockholders' equity and cash flow for the year
ending December 31, 2002; (b) a consolidated
balance sheet of USGold as at December 31, 2002
(including the notes, the Balance Sheet), and the
related consolidated statements of income, changes
in stockholders' equity, and cash flow for the
fiscal year then ended, together with the report
of December 31, 2002, independent certified public
accountants; and (c) an unaudited consolidated
balance sheet of USGold as at March 31, 2003 (the
Interim Balance Sheet) and the related unaudited
consolidated statements of income, and cash flow
for the 3 months then ended, including in each
case the applicable notes.  Such financial
statements and notes fairly, completely and
accurately present the financial condition and the
results of operations, changes in stockholders'
equity, and cash flow of USGold as at the
respective dates of and for the periods referred
to in such financial statements, all in accordance
with generally accepted United States accounting
principles, applied on a consistent basis,
subject, in the case of interim financial
statements, to normal recurring year-end
adjustments (the effect of which will not,
individually or in the aggregate, be materially
adverse) and the absence of notes (that, if
presented, would not differ materially from those
include in the Balance Sheet); the financial
statements referred to in this Section 3.3 reflect
the consistent application of such accounting
principles throughout the periods involved, except
as disclosed in the notes to such financial
statements.  There has been no material change in
the financial condition of USGold from that
reflected in the above noted financial statements.

3.4  Books and Records.  The books of account,
minute books, membership, ownership and stock
record books, and other records of the Seller and
TSLLC, all of which have been made available to
BacTech, are complete and correct and have been
maintained in accordance with sound business
practices and the requirements of law, including
the maintenance of an adequate system of internal
controls.  The minute books of the Seller and
TSLLC contain accurate and complete records of all
meetings held of, and actions taken by, the
managers, members, partners and stockholders,
respectively, the boards of directors, general
partners and managers, respectively, and
committees of Seller, and no meeting of any such
managers, members, board of directors, or
partners, or committee has been held for which
minutes have not been prepared and are not
contained in such minute books.  At the Closing,
all of those books and records will be in the
possession of USGold.

3.5  No Undisclosed Liabilities.  Neither Seller
nor TSLLC has any outstanding liabilities or
obligations of any nature [other than as set forth
under governmental authorities, property lease or
related agreements, as described in the Operating
Agreement, the Members' Agreement, or Exhibits
thereto,] and neither the Seller nor TSLLC is a
party to or bound by any agreement of guarantee,
support, indemnification, assumption or
endorsement of any kind, or any similar commitment
with respect to the obligations, liabilities
(contingent or otherwise) of any Person, except
for liabilities or obligations reflected or
reserved against in the general ledger balances
Exhibit E to the Operating Agreement and current
liabilities incurred in the ordinary course of
business consistent with past practice, none of
which has been materially adverse in the nature,
results of operations, assets or financial
condition of the Seller or TSLLC since June 30,
2003.

3.6  Taxes.

(a)  TSLLC has filed or caused to be filed (on a
timely basis since inception) all Tax Returns that
are or were required to be filed by or with
respect to TSLLC, either separately or as a member
of a group of corporations, pursuant to applicable
Legal Requirements.  The Sellers has delivered, or
will deliver and make available to BacTech, copies
of all such Tax Returns filed since inception.
TSLLC has paid, or made provision for the payment
of, all Taxes that have or may have become due
pursuant to those Tax Returns or otherwise, or
pursuant to any assessment received by Sellers or
TSLLC.

(b)  All Tax Returns filed by (or that include on
a consolidated basis) the Seller are true,
correct, and complete.  There is no tax sharing
agreement that will require any payment by TSLLC
after the date of this Agreement.

3.7  No Material Adverse Change.  Since the date
of the Balance Sheet, there has not been any
material adverse change in the business,
operations, properties, prospects, assets, or
condition of TSLLC, and no event has occurred or
circumstance exists that may result in such a
material adverse change.

3.8  Pension and Retirement Plans.  TSLLC has no
pension, retirement or other ERISA plan or
program.

3.9  Insurance.

(a)  The Seller has delivered to BacTech true and
complete copies of all policies of insurance to
which the Seller is a party or under which the
Seller, is or has been covered at any time within
the one year preceding the date of this Agreement;

(b) (i) All policies to which the Seller is a
party or that provide coverage to the Seller or
any of the Sellers:

(A) are valid, outstanding, and enforceable;
(B) are issued by a responsible insurer that is
financially sound and reputable;

(ii)  Seller has paid all premiums due, and have
otherwise performed all of the Seller's
obligations, under each policy to which the Seller
is a party or that provides coverage to the
Seller; and

(iii) The Seller has given notice to the insurer
of all claims that may be insured.

3.10  Employees.

(a)  The Seller has provided to BacTech a complete
and accurate list of the following information for
each employee of TSLLC, including each employee on
leave of absence or layoff status: employer; name;
job title; current compensation paid or payable;
and vacation accrued;

(b)  No employee, director, manager, member or
officer of TSLLC is a party to, or is otherwise
bound by, any agreement or arrangement, including
any confidentiality, noncompetition, or
proprietary rights agreement, between such
employee, director, manager, member or officer and
any other Person (Proprietary Rights Agreement)
that in any way adversely affects or will affect
(i) the performance of such person's duties as an
employee, manager, member, officer or director of
TSLLC; or (ii) the ability of TSLLC to conduct
TSLLC's business. To the Seller's Knowledge, no
director, officer, or other key employee of TSLLC
intends to terminate his employment with TSLLC.

3.11  Disclosure.

(a)  No representation or warranty of the Seller
in this Agreement and no statement in this
Agreement omits to state a material fact necessary
to make the statements herein or therein, in light
of the circumstances in which they were made, not
misleading.

(b)  No notice given pursuant to Section 5.5 will
contain any untrue statement or omit to state a
material fact necessary to make the statements
therein or in this Agreement, in light of the
circumstances in which they were made, not
misleading.

(c)  There is no fact known to the Seller that has
specific application to the Seller (other than
general economic or industry conditions) and that
materially adversely affects or, as far as the
Seller can reasonably foresee, materially
threatens, the assets, business, prospects,
financial condition, or results of operations of
TSLLC that has not been stated in this Agreement,
Member Agreement and Operating Agreement.

3.12  Relationships With Related Persons.  No
related person of the Seller or of TSLLC has, or
since the first day of the next to last completed
fiscal year of TSLLC has had, any interest in any
property (whether real, personal, or mixed and
whether tangible or intangible), used in or
pertaining to TSLLC's businesses. No related
person of the Seller or of TSLLC is, or since the
first day of the next to last completed fiscal
year of TSLLC has owned (of record or as a
beneficial owner) an equity interest or any other
financial or profit interest in, a Person that has
(i) had business dealings or a material financial
interest in any transaction with TSLLC other than
business dealings or transactions conducted in the
ordinary course of business with TSLLC at
substantially prevailing market prices and on
substantially prevailing market terms.  No related
person of the Seller, is a party to any Contract
with, or has any claim or right against, TSLLC.

3.13  Brokers or Finders.  The Seller and it's
agents have incurred no obligation or liability,
contingent or otherwise, for brokerage or finders'
fees or agents' commissions or other similar
payment in connection with this Agreement and will
indemnify and hold BacTech harmless from any such
payment alleged to be due by or through the Seller
as a result of the action of the Seller, its
limited partner, its several partner or its
agents.

4.  Representations And Warranties of BacTech.
BacTech represents and warrants to Seller and USEC
as follows and acknowledges that the Seller is
relying upon the following representations and
warranties in connection with BacTech's purchase
of the Ownership Interests:

4.1  Organization and Good Standing.  BacTech
Nevada is a corporation duly organized, validly
existing, and in good standing under the laws of
its jurisdiction of incorporation, with full
corporate power and authority to conduct its
business as it is now being conducted, to own or
use the properties and assets that it purports to
own or use.

4.2  Authority; No Conflict.

(a)  This Agreement constitutes the legal, valid,
and binding obligation of BacTech Nevada,
enforceable against it in accordance with its
terms. Upon the execution and delivery by BacTech
of the Members' Agreement, Operating Agreement and
other instruments which BacTech is obligated to
execute and deliver on or before the Closing
(collectively, BacTech's Closing Documents), the
BacTech's Closing Documents will constitute the
legal, valid, and binding obligations of BacTech,
enforceable against BacTech in accordance with
their respective terms. BacTech has the absolute
and unrestricted right, power, and authority to
execute and deliver this Agreement and the
BacTech's Closing Documents and to perform its
obligations under this Agreement and the BacTech's
Closing Documents.

(b)  Neither the execution and delivery of this
Agreement by BacTech Nevada, nor the consummation
or performance of any of the Contemplated
Transactions by them will give any Person the
right to prevent, delay, or otherwise interfere
with any of the Contemplated Transactions pursuant
to:

(i)  any provision of the Organizational Documents
of BacTech Nevada;

(ii)  any resolution adopted by the board of
directors or the stockholders of BacTech Nevada;

(iii)  any Legal Requirement or order to which
BacTech Nevada may be subject; or

(iv)  any Contract to which BacTech Nevada is a
party or by which it may be bound.

BacTech Nevada will not be required to obtain any
consent from any Person in connection with the
execution and delivery of this Agreement or the
consummation or performance of any of the
Contemplated Transactions.

4.3   Investment Intent.  BacTech is acquiring the
Ownership Interests for its own account and not
with a view to their distribution within the
meaning of the Securities Act.

4.4 Certain Proceedings.  There is no pending
Proceeding that has been commenced against BacTech
and that challenges, or may have the effect of
preventing, delaying, making illegal, or otherwise
interfering with, any of the Contemplated
Transactions. To BacTech's Knowledge, no such
Proceeding has been Threatened.

4.5 Brokers or Finders.  BacTech and its officers
and agents have incurred no obligation or
liability, contingent or otherwise, for brokerage
or finders' fees or agents' commissions or other
similar payment in connection with this Agreement
and will indemnify and hold Seller and USEC
harmless from any such payment alleged to be due
by or through BacTech as a result of the action of
BacTech or its officers or agents.

5.  Covenants of Seller Before Closing Date.

5.1  Due Diligence Access And Investigation.
Between the date of this Agreement and the Closing
Date, Seller will, and will cause TSLLC and its
Representatives to:  (a) afford BacTech and its
Representatives and prospective lenders and their
Representatives (collectively, BacTech's Advisors)
full and free access to TSLLC's personnel,
properties, contracts, books and records, and
other documents and data; (b) furnish BacTech and
BacTech's Advisors with copies of all such
contracts, books and records, and other existing
documents and data as BacTech may reasonably
request; and (c) furnish BacTech and BacTech's
Advisors with such additional financial,
operating, and other data and information as
BacTech may reasonably request.  BacTech
represents and warrants that it is unaware of any
material facts or circumstances that have not been
disclosed in this Agreement which should be
disclosed to the Seller in order to prevent the
representations and warranties of the Seller
contained herein from being materially misleading;

5.2 Operation of The Businesses of TSLLC.  Between
the date of this Agreement and the Closing Date,
Seller will, and will cause TSLLC to:

(a)  conduct the business of TSLLC only in the
ordinary course of business consistent with past
practice;

(b)  use its best efforts to preserve intact the
current business organization of TSLLC, keep
available the services of the current officers,
employees, and agents of TSLLC, and maintain the
relations and good will with suppliers, customers,
landlords, creditors, employees, agents, and
others having business relationships with TSLLC;

(c)  confer with BacTech concerning operational
matters of a material nature;

(d)  maintain all assets or equipment, whether
owned or leased, in as-is condition and repair,
maintain insurance on all the assets and equipment
comparable in amount, scope and coverage that is
in effect on the date of this Agreement;

(e)  do or refrain from doing all acts and things
in order to ensure that the representations and
warranties in Section 3 remain true and correct at
Closing as if such representations and warranties
were made as of such date; and

(f)  otherwise report periodically to BacTech
concerning the status of the business, operations,
and finances of TSLLC.

5.3  Negative Covenant.  Except as otherwise
expressly permitted by this Agreement, between the
date of this Agreement and the Closing Date,
Seller will not, and will cause TSLLC not to,
without the prior consent of BacTech, take any
affirmative action, or fail to take any reasonable
action within their or its control, the result of
which would cause the representations and
warranties referred to in Section 3 to become
untrue.

5.4 Required Approvals.  As promptly as
practicable after the date of this Agreement,
Seller will, and will cause TSLLC to, make all
filings required by Legal Requirements to be made
by them in order to consummate the Contemplated
Transactions.  Between the date of this Agreement
and the Closing Date, Seller will, and will cause
TSLLC to, (a) cooperate with BacTech with respect
to all filings that BacTech elects to make or is
required by Legal Requirements to make in
connection with the Contemplated Transactions, and
(b) cooperate with BacTech in obtaining all
consents required to be delivered by Seller.

5.5 Notification.  Between the date of this
Agreement and the Closing Date, Seller will
promptly notify BacTech in writing if Seller
becomes aware of any fact or condition that causes
or constitutes a Breach of any of Seller's
representations and warranties as of the date of
this Agreement, or if Seller becomes aware of the
occurrence after the date of this Agreement of any
fact or condition that would (except as expressly
contemplated by this Agreement) cause or
constitute a Breach of any such representation or
warranty had such representation or warranty been
made as of the time of occurrence or discovery of
such fact or condition.  During the same period,
Seller and USEC will promptly notify BacTech of
the occurrence of any Breach of any covenant of
Seller and USEC in this Section 5 or of the
occurrence of any event that may make the
satisfaction of the conditions in Section 7
impossible or unlikely.

5.6 Best Efforts.  Between the date of this
Agreement and the Closing Date, Seller and USEC
will use their Best Efforts to cause the
conditions in Sections 7 and 8 to be satisfied.

6.  Covenants of BacTech Before Closing Date.

6.1  Approvals of Governmental Bodies.  As
promptly as practicable after the date of this
Agreement, BacTech will, and will cause each of
its related persons to, make all filings required
by Legal Requirements to be made by them to
consummate the Contemplated Transactions.  Between
the date of this Agreement and the Closing Date,
BacTech will, and will cause each related person
to, cooperate with Seller with respect to all
filings that Seller is required by Legal
Requirements to make in connection with the
Contemplated Transactions, and (ii) cooperate with
Seller in obtaining all consents required to be
delivered by Seller; provided that this Agreement
will not require BacTech to dispose of or make any
change in any portion of its business or to incur
any other burden to obtain a Governmental
Authorization.

6.2  Best Efforts.  Except as stated in the
proviso to Section 6.1, between the date of this
Agreement and the Closing Date, BacTech will use
its Best Efforts to cause the conditions in
Sections 7 and 8 to be satisfied.

7.  Conditions Precedent to BacTech's Obligation
to Close.   BacTech's obligation to purchase the
Ownership Interests and to take the other actions
required to be taken by BacTech at the Closing is
subject to the satisfaction, at or before the
Closing, of each of the following conditions (each
of which is acknowledged to be for the exclusive
benefit of BacTech and any of which may be waived
by BacTech, in whole or in part):

7.1  Accuracy of Representations.

(a)  All of Seller's and USEC's representations
and warranties in the Operating Agreement
(considered collectively), and each of these
representations and warranties (considered
individually), must have been true and accurate as
of the date of this Agreement, and must be true
and accurate as of the Closing Date as if made on
the Closing Date.

(b)  BacTech shall have received certificates
confirming the foregoing signed for and on behalf
of Seller and USEC by a senior officer or general
partner in form and substance satisfactory to
BacTech and BacTech's counsel.

7.2  Seller's Performance.

(a)  All of the covenants and obligations that
Seller and USEC are required to perform or to
comply with pursuant to this Agreement at or
before the Closing (considered collectively), and
each of these covenants and obligations
(considered individually), must have been duly
performed and complied with in all material
respects.

(b)  Each document required to be delivered
pursuant to Section 2.4 must have been delivered,
and each of the other covenants and obligations in
Section 5.4 must have been performed and complied
with in all respects.

(c)  BacTech shall have received certificates
confirming the foregoing signed for and on behalf
of Seller and USEC by a senior officer or general
partner in form and substance reasonably
satisfactory to BacTech and BacTech's counsel.

7.3  Consents.  Each of the consents required to
be delivered by Seller must have been obtained and
must be in full force and effect.

7.4 Additional Documents.  Each of the following
documents must have been delivered to BacTech:

(a)  an opinion of TSLLC's counsel, dated the
Closing Date, in form acceptable to BacTech in
accordance with which TSLLC's counsel opines
favorably concerning the Seller's representations
and warranties in sections 3.1 and 3.2;

(b) such other documents as BacTech may reasonably
request for the purpose of: (i) evidencing the
accuracy of any of the Seller's and TSLLC's
representations and warranties; (ii) evidencing
the performance by Seller and TSLLC of, or the
compliance by Seller and TSLLC with, any covenant
or obligation required to be performed or complied
with by Seller and TSLLC, including delivery of
written releases and terminations of any claims,
encumbrances, liens or security interests in, to
or against the Tonkin Springs Property;; (iii)
evidencing the satisfaction of any condition
referred to in this Section 7; or (iv) otherwise
facilitating the consummation or performance of
any of the Contemplated Transactions.

7.5  Due Diligence.  Seller shall have permitted
BacTech and its representatives to have conducted
such due diligence investigations of TSLLC and the
Tonkin Springs Property as BacTech shall have
considered necessary or advisable and BacTech
shall be satisfied from its due diligence
investigation of TSLLC and the Tonkin Springs
Property on or before July 31, 2003.

7.6  No Transactions.  From the date of the Letter
Agreement to and including the Closing Date,
Seller shall not have effected or taken any steps
to effect any transaction or action involving
TSLLC or the Tonkin Springs Property out of the
ordinary course of business without BacTech's
prior written consent.

7.7  No Liens or Encumbrances.  There shall be no
liens or encumbrances on the Tonkin Springs
Property except as disclosed in Exhibit A to the
Operating Agreement.

7.8  No Liabilities.  TSLLC shall have no vendor
liabilities as of the Closing Date and there shall
be no adverse claims against or claims,
encumbrances or liens on the Tonkin Springs
Property except the inherent liability and
obligations related to reclamation of the
properties and governmental permits and
authorities, and as set forth in the Operating
Agreement and Member's Agreement, and Exhibits
thereto.

7.9  No Proceedings.  Since the date of this
Agreement, there must not have been commenced or
threatened against Seller, USEC or TSLLC, or
against any Person affiliated with Seller or
TSLLC, any Proceeding (a) involving any challenge
to, or seeking damages or other relief in
connection with, any of the Contemplated
Transactions; or (b) that may have the effect of
preventing, delaying, making illegal, or otherwise
interfering with any of the Contemplated
Transactions.

7.10  No Claim Regarding Equity Ownership or Sale
Proceeds.  There must not have been made or
Threatened by any Person any claim asserting that
such Person (a) is the holder or the beneficial
owner of, or has the right to acquire or to obtain
beneficial ownership of, any voting, equity, or
ownership interest in TSLLC; or (b) is entitled to
all or any portion of the Purchase Price payable
for the Ownership Interests.

7.11 No Prohibition.  Neither the consummation nor
the performance of any of the Contemplated
Transactions will, directly or indirectly (with or
without notice or lapse of time), materially
contravene, or conflict with, or result in a
material violation of, or cause BacTech or any
Person affiliated with BacTech to suffer any
material adverse consequence under (a) any
applicable Legal Requirement or order; or (b) any
Legal Requirement or order that has been
published, introduced, or otherwise proposed by or
before any governmental body.

8.  Conditions Precedent to Seller's Obligation to
Close.  Seller's obligation to sell the Ownership
Interests and to take the other actions required
to be taken by Seller at the Closing is subject to
the satisfaction, at or before the Closing, of
each of the following conditions (any of which may
be waived by Seller, in whole or in part):

8.1  Accuracy of Representations.  All of
BacTech's representations and warranties in this
Agreement (considered collectively), and each of
these representations and warranties (considered
individually), must have been true and accurate in
all material respects as of the date of this
Agreement and must be true and accurate in all
material respects as of the Closing Date as if
made on the Closing Date.

8.2  BacTech's Performance.

(a)  all of the covenants and obligations that
BacTech is required to perform or to comply with
pursuant to this Agreement at or before the
Closing (considered collectively), and each of
these covenants and obligations (considered
individually), must have been performed and
complied with in all material respects.

(b)  BacTech must have delivered each of the
documents required to be delivered by BacTech
pursuant to Section 2.4 and must have made the
cash payments required to be made by BacTech
pursuant to Section 2.2(a).

8.3  Consents.  Each of the consents to be
delivered by Seller, must have been obtained and
must be in full force and effect.

8.4  Additional Documents.  BacTech must have
caused the following documents to be delivered to
Seller:

(a)  an opinion of BacTech's counsel, dated the
Closing Date in form acceptable to Seller opining
favorable concerning BacTech's representations and
warranties in Sections 4.1 and 4.2; and

(b)  such other documents as Seller may reasonably
request for the purpose of (i) evidencing the
accuracy of any representation or warranty of
BacTech; (ii) evidencing the performance by
BacTech of, or the compliance by BacTech with, any
covenant or obligation required to be performed or
complied with by BacTech; (iii) evidencing the
satisfaction of any condition referred to in this
Section 8; or (iv) otherwise facilitating the
consummation of any of the Contemplated
Transactions.

8.5  No Injunction.  There must not be in effect
any Legal Requirement or any injunction or other
order that (a) prohibits the sale of the Ownership
Interests by Seller to BacTech; and (b) has been
adopted or issued, or has otherwise become
effective, since the date of this Agreement.

9.  Termination.

9.1  Termination Events.  This Agreement may, by
notice given before or at the Closing, be
terminated:

(a)  by BacTech, in its sole and exclusive
discretion, at any time before expiration of the
Due Diligence Period;

(b)  by either BacTech or Seller if a material
Breach of any provision of this Agreement has been
committed by the other party and such Breach has
not been waived;

(c)  (i) by BacTech if any of the conditions in
Section 7 has not been satisfied as of the Closing
Date or if satisfaction of such a condition is or
becomes impossible (other than through the failure
of BacTech to comply with its obligations under
this Agreement) and BacTech has not waived such
condition on or before the Closing Date; or (ii)
by Seller, if any of the conditions in Section 8
has not been satisfied of the Closing Date or if
satisfaction of such a condition is or becomes
impossible (other than through the failure of
Seller to comply with their obligations under this
Agreement) and Seller has not waived such
condition on or before the Closing Date; or

(d)  by mutual consent of BacTech and Seller.

9.2  Effect of Termination.  Each party's right of
termination under Section 9.1 is in addition to
any other rights it may have under this Agreement
or otherwise, and the exercise of a right of
termination will not be an election of remedies.
If this Agreement is terminated pursuant to
Section 9.1, all further obligations of the
parties under this Agreement will terminate;
provided, however, that if this Agreement is
terminated by a party because of the Breach of the
Agreement by the other party or because one or
more of the conditions to the terminating party's
obligations under this Agreement is not satisfied
as a result of the other party's failure to comply
with its obligations under this Agreement, the
terminating party's right to pursue all legal
remedies will survive such termination unimpaired.

10.  Indemnification.

10.1  Indemnification.

(a)  each of the Seller and BacTech shall
indemnify the other party, and its affiliates and
their respective directors, officers, managers,
employees, agents and attorneys, (collectively
Indemnified Party) from and against all direct and
indirect costs, expenses, damages, obligations,
claims, demands, actions or liabilities, including
reasonable attorneys' fees and other costs of
litigation (either threatened or pending) arising
out of or based on a breach by the first party
(Indemnifying Party) of any representation,
warranty or covenant contained in this Agreement.

(b)  If any claim or demand is asserted against an
Indemnified Party in respect of which such
Indemnified Party may be entitled to
indemnification under this Agreement, written
notice of such claim or demand shall promptly be
given to the Indemnifying Party.  The Indemnifying
Party shall have the right, but not the
obligation, by notifying the Indemnified Party
within thirty (30) days after its receipt of the
notice of the claim or demand, to assume the
entire control of (subject to the right of the
Indemnified Party to participate, at the
Indemnified Party's expense and with counsel of
the Indemnified Party's choice) the defense,
compromise or settlement of the matter, including,
at the Indemnifying Party's expense, employment of
counsel of the Indemnifying Party's choice.  Any
damages to the assets or business of the
Indemnified Party caused by a failure by the
Indemnifying Party to defend, compromise or settle
a claim or demand in a reasonable and expeditious
manner requested by the Indemnified Party, after
the Indemnifying Party has given notice that it
will assume control of the defense, compromise or
settlement of the matter, shall be included in the
damages for which the Indemnifying Party shall be
obligated to indemnify the Indemnified Party.  Any
settlement or compromise of a matter by the
Indemnifying Party shall include a full release of
claims against the Indemnified Party which have
arisen out of the indemnified claim or demand.

11.  General Provisions.

11.1  Expenses.  Except as otherwise expressly
provided in this Agreement, each party to this
Agreement will bear its respective expenses
incurred in connection with the preparation,
execution, and performance of this Agreement and
the Contemplated Transactions, including all fees
and expenses of agents, representatives, counsel,
and accountants. Seller will cause TSLLC not to
incur any out-of-pocket expenses in connection
with this Agreement.  In the event of termination
of this Agreement, the obligation of each party to
pay its own expenses will be subject to any rights
of such party arising from a breach of this
Agreement by another party.

11.2  Confidentiality.  Between the date of this
Agreement and the Closing Date, BacTech, Seller
and USEC will maintain in confidence, and will
cause the advisors, agents, directors, employees,
managers, members and representatives of BacTech,
Seller and USEC to maintain in confidence, and not
use to the detriment of another party any written,
oral, or other information obtained in confidence
from another party in connection with this
Agreement or the Contemplated Transactions, unless
(a) such information is already known to such
party or to others not bound by a duty of
confidentiality or such information becomes
publicly available through no fault of such party;
(b) the use of such information is necessary or
appropriate in making any filing or obtaining any
consent or approval required for the consummation
of the Contemplated Transactions; or (c) the
furnishing or use of such information is required
by or necessary or appropriate in connection with
legal proceedings.  If the Contemplated
Transactions are not consummated, each party will
return or destroy as much of such written
information as the other party may reasonably
request.

11.3 Notices.  All notices, consents, waivers, and
other communications under this Agreement must be
in writing and will be deemed to have been duly
given when (a) delivered by hand (with written
confirmation of receipt); (b) sent by telecopier
(with written confirmation of receipt), provided
that a copy is mailed by registered mail, return
receipt requested; or (c) when received by the
addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in
each case to the appropriate addresses and
telecopier numbers stated below (or to such other
addresses and telecopier numbers as a party may
designate by notice to the other parties):

Seller:     Tonkin Springs Venture Limited
Partnership
            U.S. Environmental Corporation
            C/o U.S. Gold Corporation
            2201 Kipling Street, Suite 100
            Lakewood, CO  80215-1545

            With a Copy to:  Randy L. Parcel, Esq.
            Perkins Coie LLP
            1899 Wynkoop St., Ste. 700
            Denver, CO 80202

BacTech:    BacTech Enviromet Corporation
            BacTech Nevada Corporation
            1450-439 University Avenue
            Toronto, Ontario, Canada  M5G 1Y8

            With a Copy to: Cassels Brock &
            Blackwell LLP
            Att: Mark Bennett
            2100 Scotia Plaza
            40 King Street West
            Toronto, Ontario M5H 3C2

            With a Copy to: Thomas P. Erwin, Esq.
            Erwin & Thompson LLP
            1 E. Liberty Street, Suite 424
            P.O. Box 40817
            Reno, NV 89504

11.4  Jurisdiction; Service of Process.  Any
action or proceeding seeking to enforce any
provision of, or based on any right arising out
of, this Agreement may be brought against any of
the parties in the courts of the State of Nevada,
County of Washoe, or, if it has or can acquire
jurisdiction, in the United States District Court
for the Northern Division of the District of
Nevada, and each of the parties consents to the
jurisdiction of such courts (and of the
appropriate appellate courts) in any such action
or proceeding and waives any objection to venue.
Process in any action or proceeding referred to in
the preceding sentence may be served on any party
anywhere in the world.

11.5  Further Assurances.  The parties agree (a)
to furnish upon request to each other such further
information; (b) to execute and deliver to each
other such other documents; and (c) to do such
other acts and things, all as the other party may
reasonably request for the purpose of carrying out
the intent of this Agreement and the documents
referred to in this Agreement.

11.6 Waiver.  The rights and remedies of the
parties to this Agreement are cumulative and not
alternative. Neither the failure nor any delay by
any party in exercising any right, power, or
privilege under this Agreement or the documents
referred to in this Agreement will operate as a
waiver of such right, power, or privilege, and no
single or partial exercise of any such right,
power, or privilege will preclude any other or
further exercise of such right, power, or
privilege or the exercise of any other right,
power, or privilege. To the maximum extent
permitted by applicable law (a) no claim or right
arising out of this Agreement or the documents
referred to in this Agreement can be discharged by
one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in
writing signed by the other party; (b) no waiver
that may be given by a party will be applicable
except in the specific instance for which it is
given; and (c) no notice to or demand on one party
will be deemed to be a waiver of any obligation of
such party or of the right of the party giving
such notice or demand to take further action
without notice or demand as provided in this
Agreement or the documents referred to in this
Agreement.

11.7 Entire Agreement And Modification.  This
Agreement supersedes all prior agreements between
the parties with respect to its subject matter
(including the Letter Agreement) and constitutes
(along with the Members' Agreement and Operating
Agreement and other documents referred to in this
Agreement) a complete and exclusive statement of
the terms of the agreement between the parties
with respect to its subject matter. In the event
of an inconsistency between the terms of this
Agreement and the terms of the Members Agreement
and the Operating Agreement, the terms of the
Members Agreement and the Operating Agreement
shall prevail. This Agreement may not be amended
except by a written agreement executed by all the
parties hereto.

11.8 Assignments, Successors, and No Third-Party
Rights.  Neither party may assign any of its
rights under this Agreement without the prior
consent of the other parties except that BacTech
may assign any of its rights under this Agreement
to any subsidiary of BacTech. Subject to the
preceding sentence, this Agreement will apply to,
be binding in all respects upon, and inure to the
benefit of the successors and permitted assigns of
the parties. Nothing expressed or referred to in
this Agreement will be construed to give any
Person other than the parties to this Agreement
any legal or equitable right, remedy, or claim
under or with respect to this Agreement or any
provision of this Agreement. This Agreement and
all of its provisions and conditions are for the
sole and exclusive benefit of the parties to this
Agreement and their successors and assigns.

11.9  Severability.  If any provision of this
Agreement is held invalid or unenforceable by any
court of competent jurisdiction, the other
provisions of this Agreement will remain in full
force and effect. Any provision of this Agreement
held invalid or unenforceable only in part or
degree will remain in full force and effect to the
extent not held invalid or unenforceable.

11.10  Section Headings, Construction.  The
headings of Sections in this Agreement are
provided for convenience only and will not affect
its construction or interpretation. All references
to Section or Sections refer to the corresponding
Section or Sections of this Agreement. All words
used in this Agreement will be construed to be of
such gender or number as the circumstances
require. Unless otherwise expressly provided, the
word "including" does not limit the preceding
words or terms.

11.11  Time of Essence.  With regard to all dates
and time periods stated or referred to in this
Agreement, time is of the essence.

11.12  Governing Law.  This Agreement will be
governed by the laws of the State of Delaware
without regard to conflicts of laws principles.

11.13  Counterparts; Facsimile.  This Agreement
may be executed and delivered in one or more
counterparts, including counterparts delivered by
facsimile, portable document format (PDF), or
otherwise, each of which shall constitute an
original document, and all of which taken together
shall constitute one and the same instrument.  A
party providing its signature buy facsimile, PDF
or otherwise shall promptly forward to the other
party an original of the executed copy of this
Agreement which was so delivered by facsimile or
other means.

11.14  Independent Representation.  The parties
acknowledge that the terms of this Agreement have
been negotiated by Seller and BacTech, as
represented by their respective counsel,
concerning the Contemplated Transactions to the
end that any and all nonstandard terms and
previous oral agreements and understandings of the
parties have been placed in this Agreement and
reduced to writing. The parties acknowledge that
certain provisions of this Agreement and the
instruments to be executed and delivered by the
parties in accordance with this Agreement may have
been drafted by one party, but acknowledge that
neither this Agreement nor any instrument executed
by any party in accordance with this Agreement
shall be construed for or against a party by
reason of such party's drafting or participation
in the drafting of such instrument.

The parties have executed and delivered this
Agreement effective as of July 31, 2003.

U.S. Environmental Corporation
By  /s/ David C. Reid
David C. Reid, President

Tonkin Springs Venture Limited Partnership
By:  Tonkin Springs Gold Mining Company,
     its general partner
By /s/ William W. Reid
Title:  William W. Reid, President

BacTech Nevada Corporation
By /s/ Bradley P. Marchant
Title: Bradley P. Marchant, PresidentExhibit 10.2

    SECOND AMENDED AND RESTATED
         MEMBERS' AGREEMENT
         of the Members of
        TONKIN SPRINGS LLC
  A Delaware Limited Liability Company

TABLE OF CONTENTS

ARTICLE I -- DEFINITIONS AND CROSS REFERENCES
1.1  Definitions
1.2  Cross References
ARTICLE II -- OWNERSHIP, SALE OF INTEREST AND
BACTECH INITIAL CONTRIBUTION
2.1  Ownership and Sale of Interest
2.2  BACTECH Initial Contributions
2.3  Withdrawal or Deemed Withdrawal Prior to the
Funding Obligation Date
2.4  BACTECH Payments to TSVLP
ARTICLE III -- REPRESENTATIONS AND WARRANTIES;
TITLE TO ASSETS; INDEMNITIES
3.1  Representations and Warranties
3.2  Disclosures
3.3  Loss of Title
3.4  Limitation of Liability
3.5  Indemnification
ARTICLE IV - INTERESTS OF MEMBERS
4.1  Interest of Members
4.2  Continuing Liabilities Upon Adjustments of
Ownership Interests
4.3  Continuing Obligations and Environmental
Liabilities
4.4  Grant of Lien and Security Interest
4.5  Subordination of Interests
ARTICLE V - RELATIONSHIP OF THE MEMBERS
5.1  Transfer or Termination of Rights
5.2  Abandonment and Surrender of Properties
5.3  No Third Party Beneficiary Rights
ARTICLE VI - ACQUISITIONS WITHIN AREA OF INTEREST
6.1  General
6.2  Notice to Non-Acquiring Members
6.3  Option Exercised
6.4  Option Not Exercised
6.5  Non-Compete Covenants
ARTICLE VII - GOVERNING LAW
7.1  Governing Law
ARTICLE VIII - GENERAL PROVISIONS
8.1  Notices
8.2  Gender
8.3  Currency
8.4  Headings
8.5  Waiver
8.6  Modification
8.7  Force Majeure
8.8  Rule Against Perpetuities
8.9  Further Assurances
8.10 Entire Agreement; Successors and Assigns
8.11 Counterparts

     SECOND AMENDED AND RESTATED
        MEMBERS' AGREEMENT
        of the Members of
        TONKIN SPRINGS LLC
 A Delaware Limited Liability Company

This Second Amended and Restated Members'
Agreement (the Agreement) is made effective as of
July 31, 2003 (Effective Date) among TONKIN
SPRINGS VENTURE LIMITED PARTNERSHIP, a Nevada
limited partnership (TSVLP), U.S. ENVIRONMENTAL
CORPORATION, a Colorado corporation (USEC), both
with addresses of 2201 Kipling Street, Suite 100,
Lakewood, Colorado 80215-1545, and BACTECH NEVADA
CORPORATION, Nevada corporation the address of
which is 1 East Liberty Street, Suite 424, Reno,
Nevada 89501.

RECITALS

A.  TSVLP and USEC are parties to the Operating
Agreement and Members Agreement of Tonkin Springs
LLC (the Company), both as amended October 18,
2001 (the Original Operating Agreement and the
Original Members' Agreement, respectively).

B.  TSVLP has agreed to sell to BACTECH an
undivided fifty five (55%) equity Ownership
Interest in the Company for a cash purchase price
of $1,750,000 (the Purchase Price) and certain
funding obligations of BACTECH to the Company, as
well as the obligation of BACTECH, upon election
by TSVLP and USEC, to advance on behalf of TSVLP
and USEC any cash calls related to funding
requirements of TSVLP and USEC to the Company
after BACTECH has funded its Funding Obligation
(as defined in the Operating Agreement) to the
Company.

C.  TSVLP, USEC and BACTECH wish to continue the
Company as a limited liability company under the
Delaware Limited Liability Company Act, 6 Del. C.
Paragraph 18-101 et. seq. (the Act) to own and
operate the Properties and Assets.  TSVLP, USEC
and BACTECH desire to enter into this Agreement to
provide, amongst themselves, for their respective
contributions to the Company and for certain other
matters, all as set forth herein.

D.  This Agreement amends and restates in its
entirety the Original Members' Agreement of the
Company.

E.  Concurrently with the execution of this
Agreement, the parties hereto are executing a
Second Amended and Restated Operating Agreement
(the Operating Agreement) which amends and
restates the Company's Original Operating
Agreement in its entirety.

NOW THEREFORE, in consideration of the covenants
and conditions contained herein, TSVLP, USEC and
BACTECH agree as follows:

ARTICLE I
DEFINITIONS AND CROSS-REFERENCES

1.1  Definitions.  The terms defined herein shall
have the defined meaning wherever used in this
Agreement. Capitalized terms used but not defined
in this Agreement shall have the meanings given
thereto in the Operating Agreement of the Company,
as amended this date or Exhibit D, Definitions
thereto.

1.2  Cross References.  References to exhibits are
to Exhibits of the Operating Agreement. References
to Articles, Sections and Subsections refer to
Articles, Sections and Subsections of this
Agreement unless indicated otherwise. References
to Paragraphs and Subparagraphs refer to
paragraphs and subparagraphs of the referenced
Exhibits.

ARTICLE II
OWNERSHIP, SALE OF INTEREST AND BACTECH INITIAL
CONTRIBUTION

2.1  Ownership and Sale of Interest.  Immediately
prior to the Effective Date, TSVLP and USEC
collectively owned one hundred percent (100%) of
the Ownership Interest of the Company.  As of the
Effective Date, TSVLP has sold to BACTECH a fifty-
five percent (55%)Ownership Interest in the
Company for consideration including but not
limited to certain cash consideration and certain
funding and other obligations of BACTECH to the
Company and to TSVLP and USEC as contained in this
Agreement.  As of the Effective Date of this
Agreement the adjusted dollar value of TSVLP's
equity account balance of the Company is
($5,100,870), USEC's dollar value of its equity
account balance of the Company is  ($133), and
BACTECH's dollar value of its equity account
balance of the Company is $260,000.

2.2  BACTECH Initial Contributions.  Subject only
to BACTECH's right of withdrawal as set forth in
Section 2.3, BACTECH agrees to contribute to the
Company (a) the use at Tonkin Springs of any
proprietary technology owned by BACTECH or its
Affiliates and determined by the Manager to be
necessary or desirable for the operations of the
Properties at no expense to the Company, and (b)
as the Funding Obligation and in accordance with
approved Programs and Budgets, from time to time,
(i) the interim funding for the Company paid by
BACTECH prior to the Effective Date in the amount
of $70,000, (ii) direct costs incurred by BACTECH
for additional activities at the Tonkin Springs
Properties prior to the Effective Date in the
amount of $190,000, and (iii) pursuant to the
provisions of the Operating Agreement, including
the budget for calendar year 2003 and for
subsequent years for which an approved Program and
budget has yet to be finalized by the Manager and
approved by the Members herewith, one hundred
percent (100%) of all costs of Operations,
including but not limited to costs of holding and
maintaining the Properties, permits and bonds for
Operations, expenditures in respect of Exploration
and, if warranted, Development and Mining, capital
costs and working capital until BACTECH has
contributed an aggregate of $12 million.  All
contributions to the Company by BACTECH prior to
the Funding Obligation Date shall be credited to
BACTECH's Capital Account in accordance with
Exhibit C of the Operating Agreement.  Subsequent
to the Funding Obligation Date, the Members,
subject to any election by TSVLP, on behalf of
itself and USEC, permitted by Section 10.5 of the
Operating Agreement, and to the obligation of
BACTECH to advance funds to TSVLP and USEC as
provided in Section 10.6 of the Operating
Agreement, shall be obligated to contribute funds
to adopted Programs and Budgets pursuant to Cash
Calls under Section 11.2 of the Operating
Agreement in proportion to their respective
Ownership Interests.

2.3  Withdrawal or Deemed Withdrawal Prior to the
Funding Obligation Date.  In the event that
BACTECH (i) fails to pay TSVLP the amount of six
hundred thousand dollars ($600,000) before October
31, 2003 pursuant to Section 2.4 or (ii) fails to
satisfy any portion of its Funding Obligation
within thirty (30) days after its receipt of
written notice from TSVLP setting forth in detail
the specifics of such failure, BACTECH shall be
deemed to have withdrawn from this Agreement and
from the Company.  At any time prior to the
Funding Obligation Date, BACTECH may also withdraw
from this Agreement and the Company by providing
to TSVLP and USEC not less than thirty (30) days
prior written notice of withdrawal, which notice
shall set forth the effective date of BACTECH's
withdrawal.  Upon either such withdrawal or deemed
withdrawal, BACTECH shall have no further right,
title or interest in the Assets or the Company and
its Ownership Interest shall be deemed transferred
to TSVLP and USEC in proportion to their
respective Ownership Interests.  BACTECH's deemed
withdrawal shall be effective upon its failure to
make the required payment to TSVLP on or before
October 31, 2003 or its failure to cure an alleged
default within the aforementioned thirty (30) day
period and BACTECH's withdrawal shall be effective
on the date set forth in BACTECH's notice.
However, notwithstanding BACTECH's withdrawal or
deemed withdrawal pursuant to this Section 2.3,
BACTECH shall remain obligated to TSVLP and USEC:
(i) to fund Operations up to the amount of
BACTECH's agreed contribution to the remaining
balance of the adopted Program and Budget in
effect on termination; and (ii) to fund and
satisfy all unfunded liabilities to third parties
(whether such accrued before or after such
withdrawal) arising out of Operations conducted
subsequent to the Effective Date but prior to
BACTECH's withdrawal or deemed withdrawal in
connection with Operations or in connection with
this Agreement (whether pursuant to this Section
2.3 or otherwise).  Upon BACTECH's withdrawal or
deemed withdrawal pursuant to this Section 2.3,
BACTECH shall have no further liabilities or
obligations whatsoever with respect to, under or
arising out of the Assets, the Company,
Operations, the Operating Agreement or this
Agreement, including without limitation any
obligation to make any payment or contribution or
to perform any covenant.  Upon BACTECH's
withdrawal or deemed withdrawal pursuant to this
Section 2.3, the Company shall not be entitled to
use any proprietary technology owned by BACTECH or
its Affilitates unless otherwise agreed between
BACTECH and the Company.

2.4   BACTECH Payments to TSVLP.  Upon execution
of this Agreement, BACTECH shall pay TSVLP One
Hundred Fifty Thousand Dollars ($150,000) as
partial payment of the Purchase Price for its 55%
Ownership Interest in the Company.  TSVLP
acknowledges that Two Hundred Fifty Thousand
Dollars ($250,000) of the Purchase Price has been
paid prior to July 31, 2003, as an advance on the
Purchase Price.  Six hundred thousand dollars
($600,000) of the balance on the Purchase Price
shall be paid by BACTECH to TSVLP on or before
October 31, 2003 and the remaining balance of the
Purchase Price of Seven Hundred Fifty Thousand
Dollars ($750,000) shall be paid by BACHTECH to
TSVLP upon Commencement of Commercial Production
(as defined in Exhibit D to the Operating
Agreement) or, if the Commencement of Commercial
Production has not been achieved within twelve
months of the Effective Date, then that balance
shall be paid to TSVLP at the rate of Sixty Two
Thousand Five Hundred Dollars ($62,500) per month
for twelve (12) months commencing on the first
anniversary of the Effective Date.

ARTICLE III
REPRESENTATIONS AND WARRANTIES;
TITLE TO ASSETS; INDEMNITIES

3.1  Representations and Warranties.

(a)  Capacity of the Members. As of the Effective
Date of this Agreement, each Member warrants and
represents to the other that:

(1)  it is a corporation or limited partnership,
as the case may be, duly organized and in good
standing in its state of formation and is
qualified to do business and is in good standing
in those states where necessary in order to carry
out the purposes of this Agreement;

(2)  it has the capacity to enter into and perform
this Agreement and all transactions contemplated
herein and all actions and consents required to
authorize it to enter into and perform this
Agreement have been properly taken or obtained;

(3)  it will not breach any other agreement or
arrangement by entering into or performing this
Agreement; and

(4)  this Agreement has been duly executed and
delivered by it and is valid and binding upon it
in accordance with its terms.

(b)  Representations and Warranties of TSVLP and
USEC.

(1)  The Company owns no Properties in fee simple.

(2)  With respect to those Properties in which the
Company holds an interest under leases or other
Contracts, and to the best of TSVLP's and USEC's
knowledge and belief, and except as set forth in
Exhibits A or J of the Operating Agreement: (i)
the Company is in exclusive possession of such
Properties; (ii) no event, condition or occurrence
exists which, after notice or lapse of time or
both, would constitute a breach or default under
any of the foregoing; (iii) such leases and
Contracts are valid, enforceable and are in good
standing; and (iv) the title of the Company's
lessor in such Properties covered thereby are free
and clear of all defects, Liens, Encumbrances and
Contracts, except for those specifically
identified in Exhibit A of the Operating Agreement
or in such leases or Contracts.  With respect to
those Properties in which the Company holds an
interest under leases or other Contracts: (i) the
Company has not received any notice of breach or
default of any of the terms or provisions of such
leases or Contracts; and (ii) the Company's
leasehold interest therein is free and clear of
all defects, Liens, Encumbrances and Contracts
except for those specifically identified in
Exhibit A of the Operating Agreement or in such
leases or Contracts.  The Company will make
available to BACTECH all information concerning
title to the Properties in the Company's
possession or control, and has delivered to
BACTECH true, correct and complete copies of all
leases and other Contracts relating to the
Properties, together with all amendments,
supplements and exhibits thereto, of which the
Company, TSVLP or USEC has knowledge.

(3)  With respect to unpatented mining and mill
site claims previously located by TSVLP or an
agent or Affiliate of TSVLP that are included
within the Properties (whether held directly or
under lease or other Contract), except as provided
in Exhibit A of the Operating Agreement and
subject to the paramount title of the United
States: (i) the unpatented claims were properly
laid out and monumented; (ii) all required
location and validation work was properly and
timely performed; (iii) location notices and
certificates were properly and timely recorded and
filed with appropriate governmental agencies; (iv)
to the best of TSVLP's knowledge and belief, all
assessment work required to hold the unpatented
claims has been performed in a manner consistent
with that required of the Manager pursuant to
Section 9.2(k) of the Operating Agreement through
the assessment year ending September 1, 2002; (v)
to the best of TSVLP's and USEC's knowledge and
belief, all affidavits of assessment work, notice
of intent and other filings and holding,
maintenance and rental fees and payments required
to maintain the mining claims in good standing
have been properly and timely recorded, filed or
paid with appropriate governmental agencies; (vi)
the claims are free and clear of defects, Liens,
Encumbrances and Contracts arising by, through or
under the Company or TSVLP, and, and to the best
of TSVLP's and USEC's knowledge and belief, are
free and clear of all other defects, Liens,
Encumbrances and Contracts; (vii) the Company
holds the entire undivided right, title and
interest in and to the claims; and (viii) TSVLP
and USEC have no knowledge of conflicting claims.
Nothing in this Section 3.1 (b)(3), however, shall
be deemed to be a representation or a warranty
that any of the unpatented claims contain a
discovery of minerals.  With respect to those
unpatented mining and mill site claims that were
not located by TSVLP or one of its Affiliates, but
are included within the Properties (whether held
directly or under lease or other Contract), TSVLP
makes the representations and warranties set forth
in clauses (3)(i), 3(ii) and 3(iii) above to the
best of its and USEC's knowledge and belief.

(4)  There are no pending or, to the best of
TSVLP's and USEC's knowledge and belief,
threatened actions, suits, claims or proceedings
with respect to the Assets, the Company or the
Operations, except as expressly set forth in
Exhibit J of the Operating Agreement.

(5)  (i) All of the Assets are identified in
Exhibit A of the Operating Agreement, (ii) the
Company owns the entire undivided title to the
Assets, free and clear of all defects, Liens,
Encumbrances and Contracts except those
specifically identified in Exhibit A of the
Operating Agreement; and (iii) except with respect
to unpatented claims, the Company has good and
marketable title to all of the Assets, except as
expressly set forth in Exhibit A of the Operating
Agreement. The Assets are free and clear of all
defects, Liens, Encumbrances and Contracts arising
by, through or under the Company except for those
specifically identified in Exhibit A of the
Operating Agreement.

(6)  To the best of TSVLP's and USEC's knowledge
and belief, the Properties and the Assets and all
Operations and activities conducted thereon and
all conditions with respect thereto have been and
are in material compliance with all Environmental
Laws and with all other Laws, except as expressly
set forth in Exhibit F of the Operating Agreement.

(7)  The Company, TSVLP and USEC have made
available to BACTECH all information in TSVLP's
and USEC's possession regarding Permits and Bonds
required to hold and operate the Assets.

(8)  The Company has not used or permitted to be
used, except in compliance with all Environmental
Laws, any of the Assets or other facilities which
the Company currently owns and operates or
previously owned or leased, to generate,
manufacture, process, distribute, use, treat,
store, dispose of, transport or handle any
Hazardous Substance, except as expressly set forth
in Exhibit F of the Operating Agreement.

(9)  To the best of TSVLP's and USEC's knowledge
and belief, no building, structure or improvement
located on the Properties is or ever has been
insulated with urea formaldehyde insulation, and
none of such buildings or structures contain
asbestos or PCBs, except as expressly set forth in
Exhibit F of the Operating Agreement.

(10)  The Company has never received any notice
of, or been prosecuted for, non-compliance with
any Environmental Laws or other laws, nor has the
Company settled any allegation of non-compliance
prior to prosecution, except as expressly set
forth in Exhibit F of the Operating Agreement.
The Company has never received any notices, orders
or directions relating to environmental matters
requiring, or notifying the Company that it is or
may be responsible or liable in whole or in part,
for, any containment, clean-up, remediation,
responses, corrective action or damages to natural
resources or any work, repairs, construction or
capital expenditures to be made under
Environmental Laws or other Laws, except as
expressly set forth in Exhibit F of the Operating
Agreement.

(11)  To the best of TSVLP's and USEC's knowledge
and belief, the Company has not caused or
permitted, nor has there been any Release of any
Hazardous Substance on, in, around, from or in
connection with any of the Assets, or their use,
or any such Release on or from a facility which it
previously owned or leased, or any such Release on
or from a facility owned or operated by any third
party but with respect to which the Company is or
may reasonably be alleged to have liability,
except as expressly set forth in Exhibit F of the
Operating Agreement. All Hazardous Substances and
all other wastes and other materials and
substances used in whole or in part by the Company
have been disposed of, treated and stored by the
Company in compliance with all Environmental Laws,
except as expressly set forth in Exhibit F of the
Operating Agreement.

(12)  The Company has made available to BACTECH
true and complete copies of all environmental
audits, evaluations, assessments, studies or tests
relating to the Assets and their use which are
within the possession or control of the Company,
TSVLP and USEC.

(13)  All Contracts are set forth in Exhibit I of
the Operating Agreement.  The Company has
performed all of the obligations required to be
performed by it and is entitled to all benefits
under, and is not in default or alleged to be in
default in respect of, any Contract to which it is
a party or by which it is bound; all such
Contracts are in good standing and in full force
and effect, and, to the best of TSVLP's and USEC's
knowledge and belief, no event, condition or
occurrence exists which, after notice or lapse of
time or both, would constitute a breach or default
under any of the foregoing, except as set forth in
Exhibits A-4 and I to the Operating Agreement.
There are no Contracts in effect arising by or
through TSVLP or USEC, except as set forth in
Exhibit I to the Operating Agreement.

(14)  There are no commitments or Contracts for
the disposition, sale, hedging, forward sales, or
marketing of Products.

(c)  Survival and Construction of Representations
and Warranties.

(1)  Where a representation or warranty in this
Agreement is made to the best of TSVLP's and
USEC's knowledge and belief or of which TSVLP or
USEC has knowledge, that means to the actual
knowledge of William W. Reid, David C. Reid or
William F. Pass, after due inquiry, provided that
such individuals shall conclusively be charged
with actual knowledge of all matters disclosed by
files, documents, materials, computer programs and
other information in the possession or under the
control of such individuals, the Company, TSVLP or
USEC.

(2)  In the event that any of the Assets are
subject to any defects, Liens, Encumbrances or
contacts arising by, through or under the Company,
TSVLP or USEC and such circumstance constitutes a
breach of any of TSVLP's and/or USEC's
representations or warranties under this
Agreement, BACTECH shall have the right, but not
the obligation, to cure or attempt to cure any
such defects, or to pay off and discharge, in
whole or in part, any such Liens or Encumbrances,
in which case, without limiting any other remedies
otherwise available to BACTECH, BACTECH may deduct
and recover amounts paid by it in connection with
such actions from any or all amounts payable to
TSVLP under this Agreement or under the Operating
Agreement (provided that such amounts deducted by
BACTECH shall nevertheless be deemed paid by
BACTECH to TSVLP for all purposes of this
Agreement and the Operating Agreement).  TSVLP
shall be subrogated to the rights of the holders
of any such Liens or Encumbrances that BACTECH
pays off or discharges pursuant to the preceding
sentence.  Except as set forth above, an
allegation or claim by BACTECH of a breach of any
representation of warranty of TSVLP and/or USEC
hereunder that is disputed in writing and good
faith by TSVLP shall not be justification for
withholding any payments otherwise due TSVLP
pursuant to Section 2.4 of this Agreement unless
and until BACTECH's claim of a breach of
representation or warranty is upheld by a court of
competent jurisdiction.

(3)  Disclosures made under Exhibit F to the
Operating Agreement (Environmental Matters) shall
not be deemed to be disclosures for purposes of
any other Exhibit and shall not qualify or limit
any representations, warranties, or covenants of
the Company, TSVLP or USEC in this Agreement or
the Operating Agreement other than those
representations, warranties and covenants which
are expressly made subject to Exhibit F to the
Operating Agreement.

3.2  Disclosures.  Each of the Members represents
and warrants that it is unaware of any material
facts or circumstances that have not been
disclosed in this Agreement or the Operating
Agreement which should be disclosed to the other
Member in order to prevent the representations and
warranties in this Article or Article VI of the
Operating Agreement from being materially
misleading.

3.3  Loss of Title.  Any failure or loss of title
to the Assets, and all costs of defending, curing
or perfecting title, shall be charged to the
Business Account.

3.4  Limitation of Liability.  The Members shall
not be required to make any contribution to the
capital of the Company except as otherwise
provided in this Agreement or in the Operating
Agreement, nor shall the Members in their capacity
as Members or Manager be bound by, or liable for,
any debt, liability or obligation of the Company
whether arising in contract, tort, or otherwise.
The foregoing shall not limit any obligation of a
Member to (i) indemnify the other Member as
expressly provided by this Agreement, (ii) restore
a deficit Capital Account as provided in Section
4.2 (b) of Exhibit C of the Operating Agreement or
(iii) satisfy liabilities arising under Article IV
or Section 5.2 of this Agreement.  Any obligation
herein to contribute capital to the Company may be
compromised by written agreement of the Members,
including by agreements providing for payments by
an obligated Member directly to the other Member.

3.5  Indemnification.

(a)  Each Member shall indemnify the other Member,
and its Affiliates and their respective directors,
officers, managers, employees, agents and
attorneys,  (collectively Indemnified Party) from
and against all direct and indirect costs,
expenses, damages, obligations, claims, demands,
actions or liabilities, including reasonable
attorneys' fees and other costs of litigation
(either threatened or pending) arising out of or
based on a breach by a Member (Indemnifying Party)
of any representation, warranty or covenant
contained in this Agreement or the Operating
Agreement, including without limitation:

(i)  Any action taken for or obligation or
responsibility assumed on behalf of the Company or
another Member by a Member or any of its
directors, officers, employees, agents and
attorneys, or Affiliates, in violation of Section
5.1 of the Operating Agreement;

(ii)  Failure of a Member or its Affiliates to
comply with the non-compete or Area of Interest
provisions of Article VI hereof;

(iii)  Any Transfer that causes termination of the
tax partnership established by Section 5.2 of the
Operating Agreement, against which the
transferring Member shall indemnify the non-
transferring Member as provided in Subsection
7.2(e) of the Operating Agreement and Article V of
Exhibit C of the Operating Agreement; and

(iv)  Failure of a Member or its Affiliates to
comply with the preemptive rights under Section
7.3 of the Operating Agreement and Exhibit H of
the Operating Agreement.

(b)  If any claim or demand is asserted against an
Indemnified Party in respect of which such
Indemnified Party may be entitled to
indemnification under this Agreement, written
notice of such claim or demand shall promptly be
given to the Indemnifying Party. The Indemnifying
Party shall have the right, but not the
obligation, by notifying the Indemnified Party
within thirty (30) days after its receipt of the
notice of the claim or demand, to assume the
entire control of (subject to the right of the
Indemnified Party to participate, at the
Indemnified Party's expense and with counsel of
the Indemnified Party's choice) the defense,
compromise or settlement of the matter, including,
at the Indemnifying Party's expense, employment of
counsel of the Indemnifying Party's choice. Any
damages to the assets or business of the
Indemnified Party caused by a failure by the
Indemnifying Party to defend, compromise or settle
a claim or demand in a reasonable and expeditious
manner requested by the Indemnified Party, after
the Indemnifying Party has given notice that it
will assume control of the defense, compromise or
settlement of the matter, shall be included in the
damages for which the Indemnifying Party shall be
obligated to indemnify the Indemnified Party. Any
settlement or compromise of a matter by the
Indemnifying Party shall include a full release of
claims against the Indemnified Party which have
arisen out of the indemnified claim or demand.

ARTICLE IV
INTERESTS OF MEMBERS

4.1  Interests of Members.  As of the Effective
Date the Ownership Interest of the Members in the
Company are as follows:

BACTECH  fifty-five percent (55%)
TSVLP    forty-four and one half percent (44.5%)
USEC     one half of one percent (.5%)

Adjustment of the Interest of Members shall be
governed by Article III of the Operating
Agreement.

4.2  Continuing Liabilities Upon Adjustments of
Ownership Interests.  As between the Members, any
elimination of any Member's Ownership Interest
pursuant to a withdrawal or resignation of a
Member from the Company, this Agreement or the
Operating Agreement shall not relieve such Member
of its share of any liability, including, without
limitation, Continuing Obligations, Environmental
Liabilities and Environmental Compliance, arising,
before or after such reduction or elimination, out
of acts or omissions occurring or conditions
existing prior to the Effective Date, or out of
Operations conducted during the term of this
Agreement but prior to such reduction or
elimination, regardless of when any funds may be
expended to satisfy such liability. For purposes
of this Section 4.2 and as between the Members,
such Member's share of such liability shall be
equal to its Ownership Interest at the time the
act or omission giving rise to the liability
occurred.  Should the cumulative cost of
satisfying Continuing Obligations be in excess of
cumulative amounts accrued or otherwise charged to
the Environmental Compliance Fund as described in
Paragraph 3.14 of Exhibit B of the Operating
Agreement, each of the Members shall, as between
the Members, be liable for its proportionate share
(i.e., Ownership Interest at the time that the act
or omission giving rise to such liability
occurred) of the cost of satisfying such
Continuing Obligations, notwithstanding that
either Member has previously resigned from the
Company or that its Ownership Interest has been
eliminated  pursuant to Section 3.2 of the
Operating Agreement.

4.3  Continuing Obligations and Environmental
Liabilities.  On dissolution of the Company under
Section 14.1 of the Operating Agreement, each
Member shall, as between the Members, remain
liable for its respective share of liabilities to
third parties (whether such arises before or after
such dissolution), including Environmental
Liabilities and Continuing Obligations. In the
event of the resignation of a Member pursuant to
Section 14.2 of the Operating Agreement, the
resigning Member's share of such liabilities shall
be equal to its Ownership Interest at the time
such liability was incurred (or, as to liabilities
arising prior to the Effective Date, its Ownership
Interest immediately prior to such date).

4.4  Grant of Lien and Security Interest.

(a)  Subject to Section 4.5 hereof, each Member
grants to the other Member(s) a lien upon and a
security interest in its Ownership Interest,
including all of its right, title and interest in
the Company and the Assets, whenever acquired or
arising, and the proceeds from and accessions to
the foregoing.

(b)  The Liens and security interests granted by
Subsection 4.4(a) hereof shall secure every
obligation or liability of the Member granting
such lien or security interest to the other
Member(s) created under this Agreement or the
Operating Agreement, including the obligation of
the Member(s) to repay an Elected Loan.  Each
Member hereby agrees to take all action necessary
to perfect such lien and security interest and
hereby appoints the other Member its attorney-in-
fact to execute, file and record all financing
statements and other documents necessary to
perfect or maintain such lien and security
interest.

4.5  Subordination of Interests.  Each Member
shall, from time to time, take all necessary
actions, including execution of appropriate
instruments and agreements, to pledge and
subordinate its Ownership Interest, any Liens it
may hold which are created under this Agreement,
and any other right or interest it holds with
respect to the Company and the Assets (other than
any statutory lien of the Manager) to any secured
borrowings for Operations approved by the
Management Committee, including any secured
borrowings relating to Project Financing, and any
modifications or renewals thereof.

ARTICLE V
RELATIONSHIP OF THE MEMBERS

5.1  Transfer or Termination of Rights.  No Member
shall Transfer all or any part of its rights or
obligations under this Agreement, except in
conjunction with a transfer or termination of the
Member's Ownership Interest permitted by the
Operating Agreement. Any such permitted assignment
shall be subject to the consent requirements of
Section 7.2 of the Operating Agreement.

5.2  Abandonment and Surrender of Properties.  A
Member that desires to have the Company abandon or
surrender all or part of the Properties shall
remain liable to the other Members for its share
(determined by its Ownership Interest as of the
date of such abandonment) of any liability with
respect to such Properties, including, without
limitation, Continuing Obligations, Environmental
Liabilities and Environmental Compliance, whether
accruing before or after such abandonment, arising
out of activities conducted subsequent to the
Effective Date and out of Operations conducted
prior to the date of such abandonment, regardless
of when any funds may be expended to satisfy such
liability.

5.3  No Third Party Beneficiary Rights.  This
Agreement shall be construed to benefit the
Members and their respective successors and
assigns only, and shall not be construed to create
third party beneficiary rights in any other party,
expressly including the Company, or in any
governmental organization or agency, except to the
extent required to permit indemnification of a
non-Member Indemnified Party pursuant to
Subsection 3.5(a) hereof.

ARTICLE VI
ACQUISITIONS WITHIN AREA OF INTEREST

6.1  General.  Any interest or right to acquire
any interest in real property or mineral or water
rights within the Area of Interest acquired during
the term of this Agreement by or on behalf of any
Member (Acquiring Member) or any Affiliate of such
Member shall, in accordance with and subject to
the provisions in this Article VI, be subject to
the terms and provisions of this Agreement and the
Operating Agreement.  TSVLP, USEC and BACTECH and
their respective Affiliates for their separate
account shall be free to acquire lands and
interests in lands outside the Area of Interest
and to locate mining claims outside the Area of
Interest. Failure of any Affiliate of any Member
to comply with this Article shall be a breach by
such Member of this Agreement.

6.2  Notice to Non-Acquiring Members.  Within
thirty (30) days after the acquisition of any
interest or the right to acquire any interest in
real property or mineral or water rights wholly or
partially within the Area of Interest (except real
property acquired by the Manager pursuant to a
Program), the Acquiring Member shall notify the
other Members of such acquisition by it or its
Affiliate; provided that if the acquisition of any
interest or right to acquire any interest pertains
to real property or water or mineral rights
partially within the Area of Interest, then all
such real property or water or mineral rights
(i.e., the part within the Area of Interest and
the part outside the Area of Interest) shall be
subject to this Article.  The Acquiring Member's
notice shall describe in detail the acquisition,
the acquiring party if that party is an Affiliate,
the lands and minerals and water rights covered
thereby, the cost thereof, and the reasons why the
Acquiring Member believes that the acquisition of
the interest is in the best interests of the
Members under this Agreement. In addition to such
notice, the Acquiring Member shall make any and
all information concerning the relevant interest
available for inspection by the other Members.

6.3  Option Exercised.  Within thirty (30) days
after receiving the Acquiring Member's notice, the
other Members may notify the Acquiring Member of
its or their election(s) to have the Company
acquire the acquired interest.  Promptly upon such
notice, the Acquiring Member shall convey or cause
its Affiliate to convey to the Company, by special
warranty deed, all of the Acquiring Member's (or
its Affiliate's) interest in such acquired
interest, free and clear of all Encumbrances
arising by, through or under the Acquiring Member
(or its Affiliate) other than those to which all
Members have agreed.  Immediately upon such
notice, the acquired interest shall become a part
of the Properties for all purposes of this
Agreement and the Operating Agreement. The Company
shall promptly pay to the Acquiring Member the
latter's actual out-of-pocket acquisition costs.

6.4  Option Not Exercised.  If the other Members
collectively do not give such notice within the
thirty (30) day period set forth in Section 6.3
hereof, it shall have no interest in the acquired
interests, and the acquired interests shall not be
a part of the Assets or continue to be subject to
this Agreement or the Operating Agreement.

6.5  Non-Compete Covenants.  Neither a Member that
resigns pursuant to Section 14.2 of the Operating
Agreement, or is deemed to have resigned pursuant
to Section 9.4 of the Operating Agreement, or that
withdraws or is deemed to have withdrawn pursuant
to Section 2.3 of this Agreement, nor any
Affiliate of such a Member, shall directly or
indirectly acquire any interest or right to
explore or mine, or both, on any property any part
of which is within the Area of Interest for twelve
(12) months after the effective date of
resignation. If a resigning Member, or the
Affiliate of a resigning Member, breaches this
Section, such Member shall be obligated to offer
to convey to the non-resigning Members, without
cost, any such property or interest so acquired
(or ensure its Affiliate offers to convey the
property or interest to the non-resigning Members,
if the acquiring party is the resigning Member's
Affiliate). Such offer shall be made in writing
and can be accepted by the non-resigning Members
at any time within forty five (45) days after the
offer is received by such non-resigning Members.
Failure of a Member's Affiliate to comply with
this Section shall be a breach by such Member of
this Agreement.

ARTICLE VII
GOVERNING LAW

7.1  Governing Law.  Except for matters of title
to the Assets Properties or their Transfer, which
shall be governed by the law of their situs, this
Agreement shall be governed by and interpreted in
accordance with the laws of the State of Delaware,
without regard for any conflict of laws or choice
of laws principles that would permit or require
the application of the laws of any other
jurisdiction.

ARTICLE VIII
GENERAL PROVISIONS

8.1  Notices.  All notices, payments and other
required or permitted communications (Notices) to
Members shall be in writing, and shall be
addressed respectively as follows:

If to TSVLP:
Tonkin Springs Venture Limited Partnership
2201 Kipling Street, Suite 100
Lakewood, Colorado 80215-1545
Attention: President, U.S. Gold Corporation
Telephone:(303) 322-8002
Facsimile:(303) 322-7866

With a Copy to: Randy L. Parcel, Esq.
Perkins Coie LLP
1899 Wynkoop St., Suite 700
Denver, Colorado 80202
Telephone: (303) 291-2317
Facsimile: (303) 291-2400

If to USEC:
U.S. Environmental Corporation
2201 Kipling Street, Suite 100
Lakewood, Colorado 80215-1545
Attention: President, U.S. Gold Corporation
Telephone: (303) 322-8002
Facsimile: (303) 322-7866

With a Copy to:
Randy L. Parcel, Esq.
Perkins Coie LLP
1899 Wynkoop St., Suite 700
Denver, Colorado 80202
Telephone: (303) 291-2317
Facsimile: (303) 291-2400

If to BACTECH:
BacTech Enviromet Corporation
1450-439 University Ave.
Toronto, ON  M5G 1Y8
Attention: Bradley P. Marchant
Telephone: (416) 813-0303
Facsimile: (416) 346-5529

With a Copy to:
Cassels Brock & Blackwell LLP
2100 Scotia Plaza
40 King Street West
Toronto, Ontario M5H 3C2
Attention: Mark T. Bennett
Telephone: 416-860-5215
Fax: 416-350-6933

With a Copy to:
Erwin & Thompson LLP
1 E. Liberty St., Ste. 424
P.O. Box 40817
Reno, Nevada  89504
Attention: Thomas P. Erwin
Telephone: 775-786-9494
Facsimile: 775-786-1180

All Notices shall be given (a) by personal
delivery to the Member;  (b) by electronic
communication, capable of producing a printed
transmission and confirmation, (c) by registered
or certified mail return receipt requested; or (d)
by overnight or other express courier service. All
Notices shall be effective and shall be deemed
given on the date of receipt at the principal
address if received during normal business hours,
and, if not received during normal business hours,
on the next business day following receipt, or if
by electronic communication, on the date of such
communication. Any Member may change its address
by Notice to the other Members.

8.2  Gender.  The singular shall include the
plural, and the plural the singular wherever the
context so requires, and the masculine, the
feminine, and the neuter genders shall be mutually
inclusive.

8.3  Currency. All references to dollars or $
herein shall mean lawful currency of the United
States of America.

8.4  Headings.  The subject headings of the
Sections and Subsections of this Agreement and the
Paragraphs and Subparagraphs of the Exhibits to
this Agreement are included for purposes of
convenience only, and shall not affect the
construction or interpretation of any of its
provisions.  References to hereunder are, unless
otherwise stated, references to this entire
Agreement.

8.5  Waiver. The failure of any Member to insist
on the strict performance of any provision of this
Agreement or to exercise any right, power or
remedy upon a breach hereof shall not constitute a
waiver of any provision of this Agreement or limit
such Member's right thereafter to enforce any
provision or exercise any right.

8.6  Modification.  No modification or amendment
of this Agreement shall be valid unless made in
writing and duly executed by all Members.

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

8.8  Rule Against Perpetuities.  The Members do
not intend that there shall be any violation of
the rule against perpetuities, the rule against
unreasonable restraints on the alienation of
property, or any similar rule. Accordingly, if any
right or option to acquire any interest in the
Properties or Assets, in an Ownership Interest, or
the Company, or in any real property exists under
this Agreement, such right or option must be
exercised, if at all, so as to vest such interest
within time periods permitted by applicable rules.
If, however, any such violation should
inadvertently occur, the Members hereby agree that
a court shall reform that provision in such a way
as to approximate most closely the intent of the
Members within the limits permissible under such
rules.

8.9  Further Assurances. Each of the Members shall
take, from time to time and without additional
consideration, such further actions and execute
such additional instruments as may be reasonably
necessary or convenient to implement and carry out
the intent and purposes of this Agreement or as
may be reasonably required by lenders in
connection with Project Financing.

8.10  Entire Agreement; Successors and Assigns.
This Agreement contains the entire understanding
of the Members and supersedes all prior agreements
and understandings between the Members relating to
the subject matter hereof; provided that nothing
in this Section 8.10 modifies or affects the
Operating Agreement and the Members' obligations
thereunder. This Agreement shall be binding upon
and inure to the benefit of the respective
successors and permitted assigns of the Members.

8.11  Counterparts.  This Agreement may be
executed in any number of counterparts, and it
shall not be necessary that the signatures of all
Members be contained on any counterpart. Each
counterpart shall be deemed an original, but all
counterparts together shall constitute one and the
same instrument.

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the Effective Date.

TONKIN SPRINGS VENTURE LIMITED PARTNERSHIP
By: Tonkin Springs Gold Mining Company,
as its General Partner
By:/s/ William W. Reid
William W. Reid, President

U.S. ENVIRONMENTAL CORPORATION
By: /s/ David C. Reid
David C. Reid, President

BACTECH NEVADA CORPORATION
By: /s/ Bradley P. Marchant
Bradley P. Marchant, President

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