Document:

CONVERTIBLE DEBENTURE RETIREMENT AGREEMENT

         CONVERTIBLE DEBENTURE RETIREMENT AGREEMENT dated as of February 1, 2000
(the  "Agreement"),  among the  entities  listed on  Schedule A attached  hereto
(referred  to  individually  as a  "Purchaser"  collectively  as  "Purchasers"),
SETTONDOWN  CAPITAL  INTERNATIONAL LTD. (the "Placement Agent" and together with
the  Purchasers,  referred  to  individually  as a "Holder" or  collectively  as
"Holders")  located at  Charlotte  House,  Charlotte  Street,  P.O. Box N. 9204,
Nassau,  Bahamas,  a corporation  organized  under the laws of the Bahamas,  and
DYNATEC  INTERNATIONAL,  INC., a corporation  incorporated under the laws of the
State of Utah,  and having its  principal  place of  business at 3820 West Great
Lakes Drive, Salt Lake City, Utah 84120 (the "Company").

                                    Recitals

         WHEREAS,  the parties to this Agreement  previously have entered into a
Convertible  Debenture and Private Equity Line of Credit  Agreement  dated as of
May 22, 1998 (the "Credit Agreement"),  a Registration Rights Agreement dated as
of May 15, 1998 (the "Registration  Rights Agreement"),  and an Escrow Agreement
dated as of May 15, 1998 (the "Escrow  Agreement,"  and together with the Credit
Agreement,  the Registration  Rights  Agreement,  and the other  instruments and
documents executed in connection therewith, the "Funding Agreements"); and

         WHEREAS,  pursuant to the Credit  Agreement,  the Company  caused to be
issued to the Purchasers  convertible debentures  ("Convertible  Debentures") of
the Company in the aggregate  principal amount of $1,500,000,  which Convertible
Debentures are subject to the terms and conditions  described therein and in the
Funding Agreements; and

         WHEREAS,  pursuant to the Credit  Agreement,  the Company  caused to be
issued to the Holders  the  Company's A Warrants  ("A  Warrants")  to purchase a
total of  300,000  shares of the  Company's  common  stock and the  Company's  B
Warrants ("B  Warrants") to purchase a total of 450,000  shares of the Company's
common stock (the A Warrants and the B Warrants are collectively  referred to in
this Agreement as the "Warrants"); and

         WHEREAS,  as  of  the  date  of  this  Agreement,  the  Purchasers  own
Convertible  Debentures in the aggregate  principal  amount of  $1,226,500;  the
principal  amount of  Convertible  Debentures  owned by each of the  Purchasers,
together with interest  accrued  thereon as of February 14, 2000, and the number
of  Warrants  owned by each of the  Holders is set forth on  Schedule B attached
hereto; and

         WHEREAS,  the  Company  and the  Holders  entered  into a  Modification
Agreement dated as of June 25, 1999 (the "Modification Agreement"),  pursuant to
which the parties agreed to certain  modifications to the Funding  Agreements as
set forth therein; and

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         WHEREAS,  the Purchasers agreed to certain  amendments to the terms and
conditions  of  the  Modification  Agreement  pursuant  to an  Amendment  to the
Modification Agreement dated as of November 13, 1999; and

         WHEREAS, subject to the terms and conditions of this Agreement, (a) the
Company  desires to pay,  retire and cancel certain of the presently  issued and
outstanding  Convertible  Debentures and to pay or otherwise  obtain a waiver of
all of the interest  accrued  thereon and otherwise to satisfy and discharge all
of its  obligations to the Purchasers and the Placement  Agent under the Funding
Agreements,  (b) the  Purchasers  desire  to  have  certain  of the  Convertible
Debentures  owned by them retired and  cancelled  and (c) the Holders  desire to
tender to the Company for  cancellation all of the Warrants owned by them and to
amend the terms and conditions of the Funding Agreements as set forth below.

                                    Agreement

         NOW,  THEREFORE,  in consideration of the covenants and mutual promises
below  and  other  good  and  valuable  consideration,  the  receipt  and  legal
sufficiency  of which the  parties  acknowledge  by their  signatures  appearing
below,  and intending to be legally bound hereby,  the parties to this Agreement
hereby agree as follows:

         1.       Primary Terms of  Transaction.

                  1.1 Retirement of Convertible Debentures.  In consideration of
payment by the  Company to each of the  Purchasers  in the  amounts set forth on
Schedule B hereto,  which payment in the aggregate  shall consist of One Million
Five Hundred  Thousand  Dollars  (U.S.  $1,500,000)  (the "Cash  Payment"),  the
Purchasers,  and each of them,  shall  tender to the  Company  for  cancellation
Convertible  Debentures owned by each such Purchaser in the amounts set forth on
Schedule B hereto,  which  Convertible  Debentures each shall be marked "Paid or
Cancelled".  Each of the  Purchasers  shall  hold,  after  payment  of the  Cash
Payment, the principal amount of Convertible Debentures set forth opposite their
names on Schedule B (the "Residual Convertible Debentures").

                           (a)  Payment of Cash Payment.  The Cash Payment shall
         be paid to the Purchasers, c/o Grushko & Mittman IOLTA Account, Attn.
         Edward M. Grushko, Esq., Grushko & Mittman, P.C., 277 Broadway, Suite
         801, New York, New York  10007.  The Cash Payment shall be paid via
         wire transfer according to instructions to be provided by the
         Purchasers or their agent prior to Closing, as that term is defined in
         Section 2.

                           (b)  Conversion of Residual  Debentures.  At Closing,
         the  Purchasers  shall be  deemed  to have  converted  that  number  of
         Residual Convertible Debentures owned by each of them after the payment
         of the Cash Payment,  which amounts are set forth on Schedule B hereto.
         In  connection  with such  conversion,  the  Company  shall  deliver at
         Closing  certificates  representing shares of the Company's  restricted
         common  stock to each of the  Purchasers  in the  amounts  set forth on
         Schedule B (the "Residual Conversion Shares").

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                           (c)  Debenture  Payoff  . As  of  the  Closing  Date,
         defined  below,  subject  to the  payment of the Cash  Payment  and the
         conversion of the Residual  Convertible  Debentures as described above,
         the Convertible  Debentures  shall be deemed paid in full and canceled,
         and all of the rights and obligations of the Purchasers and the Company
         under the Convertible Debentures shall automatically terminate.

                  1.2 Cancellation  of Warrants.  At Closing,  the Holders shall
surrender for  cancellation all of the Warrants issued and outstanding as of the
date hereof,  consisting of a total of A Warrants to purchase  300,000 shares of
the  Company's  common  stock and B Warrants to purchase  450,000  shares of the
Company's  common stock.  The number of Warrants owned by each of the Holders is
set forth on Schedule B.

                  1.3 Funding Agreements Terminated. As of the Closing Date, the
Funding  Agreements,  as such may have been  amended or modified to date,  shall
automatically  be and become  null and void and of no further  force and effect,
and all of the rights and  obligations  of the  Company and the Holders or their
successors  and  assigns  under  the  Funding  Agreements  shall   automatically
terminate.  Without  limiting the  generality  of the  foregoing  sentence,  the
parties hereto agree that (x) the Company may and should take such action as the
Company's management deems appropriate to withdraw the registration statement on
Form SB-2 that was filed with the U.S.  Securities and Exchange  Commission (the
"SEC") pursuant to the  Registration  Rights  Agreement,  and is pending but not
effective with the SEC as of the date of this  Agreement,  and the Company shall
have no obligation  whatsoever  with respect to  registration  of any securities
owned  by any of the  Holders,  and (y) the  Company's  performance  under  this
Agreement  shall  constitute  payment  or  discharge  of all  of  the  Company's
obligations under all of the Funding  Agreements,  including without limitation,
any  obligation  of the  Company  to pay any  liquidated  or  other  damages  or
penalties of any kind whatsoever otherwise payable to the Holders, regardless of
whether any such damages are accrued or liquidated as of the date hereof.

                  1.4 Releases.

                           (a) Release of the Company.  Each of the Holders, for
         themselves and their affiliates and assigns, hereby agrees to discharge
         and release the Company  and each of its  subsidiaries,  divisions  and
         affiliated  corporations,  each  of the  Company's  current  or  former
         officers,  directors,   employees,   managers,  agents,  attorneys  and
         representatives,  as well as all of the  Company's  current  or  former
         shareholders,  owners, insurers, predecessors,  successors and assigns,
         from any and all claims or demands  that any of the Holders may have in
         connection  with or arising out of or related in any way to the Funding
         Agreements or the purchase and sale of the  Convertible  Debentures and
         the Warrants.  The release set forth in this Section 1.4(a)  includes a
         release of any rights or claims  that any of the Holders may have based
         on any facts or events, whether known or unknown by any of the Holders,
         that  occurred  on or  before  the date  hereof  or the  Closing  Date,
         whichever  shall be later,  or any of the events  contemplated  by this
         Agreement.

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                           (b) Release of the Holders.  The Company,  for itself
         and its affiliates and assigns,  hereby agrees to discharge and release
         each  of  the  Holders  and  each  of  their  respective  subsidiaries,
         divisions  and  affiliated  corporations,  and  each  of  the  Holders'
         respective current or former officers, directors,  employees, managers,
         agents,  attorneys and representatives,  as well as all of the Holders'
         respective   current   or  former   shareholders,   owners,   insurers,
         predecessors,  successors  and  assigns,  from  any and all  claims  or
         demands  that the  Company may have  against any of them in  connection
         with or arising out of or related in any way to the Funding  Agreements
         or  the  purchase  and  sale  of the  Convertible  Debentures  and  the
         Warrants.  The  release  set forth in this  Section  1.4(b)  includes a
         release of any rights or claims  that the Company may have based on any
         facts or events, whether known or unknown by the Company, that occurred
         on or before the date hereof or the Closing  Date,  whichever  shall be
         later, or any of the events contemplated by this Agreement.

                  1.5 Indemnification.

                           (a)  Indemnification  By  the  Holders.  The  Holders
         severally,  and not jointly, shall indemnify,  defend and hold harmless
         the  Company and each of its  subsidiaries,  divisions  and  affiliated
         corporations,  each  of  the  Company's  current  or  former  officers,
         directors,  employees, managers, agents, attorneys and representatives,
         as well as all of the Company's current or former shareholders, owners,
         insurers,  predecessors,  successors  and assigns,  against any and all
         claims, demands, losses,  expenses,  costs,  obligations,  defenses and
         liabilities,  including interest,  penalties, and reasonable attorneys'
         fees,  that the Company  and each of its  subsidiaries,  divisions  and
         affiliated  corporations,  each  of the  Company's  current  or  former
         officers,  directors,   employees,   managers,  agents,  attorneys  and
         representatives,  as well as all of the  Company's  current  or  former
         shareholders,  owners, insurers,  predecessors,  successors and assigns
         may  incur  by  reason  of  (i)  any  breach  of,  or  failure  by  the
         indemnifying Holder to perform, any of its obligations,  covenants,  or
         agreements  set forth in this  Agreement,  (ii) any  inaccuracy  in the
         representations  and warranties of the indemnifying Holder in Section 4
         of this Agreement,  or (iii) the failure of the indemnifying  Holder to
         release fully and effectively  the Company from its  obligations  under
         the  Convertible  Debentures  and the Funding  Agreements,  pursuant to
         Section 1.4(a), above.

                           (b)  Indemnification By the Company.The Company shall
         indemnify,  defend and hold  harmless  each of the  Holders and each of
         their  subsidiaries,  divisions and  affiliated  corporations,  each of
         their  current  or former  officers,  directors,  employees,  managers,
         agents,  attorneys and representatives,  as well as all of the Holders'
         current  or  former  shareholders,   owners,  insurers,   predecessors,
         successors and assigns,  against any and all claims,  demands,  losses,
         expenses,  costs,  obligations,  defenses  and  liabilities,  including
         interest,  penalties,  and reasonable  attorneys' fees, that any of the
         Holders  and  each of  their  subsidiaries,  divisions  and  affiliated
         corporations,  each of their  current  or former  officers,  directors,
         employees, managers, agents, attorneys and representatives,  as well as
         all of the Holders' current or former shareholders,  owners,  insurers,
         predecessors,  successors  and  assigns  may incur by reason of (i) any
         breach  of,  or  failure  by  the  Company  to  perform,   any  of  its

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         obligations, covenants, or agreements set forth in this Agreement, (ii)
         any inaccuracy in the  representations and warranties of the Company in
         Section 3 of this  Agreement,  or (iii) the  failure of the  Company to
         release fully and effectively  the Holders from its  obligations  under
         the  Convertible  Debentures  and the  Funding  Agreements  pursuant to
         Section 1.4(b), above.

                  1.6 Effect of Failure to Close.  In the event that the Closing
shall not occur as described herein on or prior to the Closing Date,  except for
such  changes  or  delays as the  Purchasers  may  expressly  waive at or before
Closing,  this  Agreement  shall have no effect  whatsoever on the status of the
Convertible Debentures or the Company's obligations thereunder, or on any of the
Funding Agreements, which shall continue according to their terms, as amended or
modified  prior to the  date  hereof.  Furthermore,  in such  event,  and if the
Company  does not obtain the  approval of its  shareholders  as  required  under
Section  6.13 of the  Credit  Agreement  within  ninety  (90)  days  after  this
Agreement  ceases to have effect pursuant to this Section 1.6, the Company shall
have a period of thirty (30) days during  which to seek a waiver from the Nasdaq
Stock Market from any  applicable  shareholder  approval  requirements,  failing
which the  Company  shall take such  action as shall be  necessary  to cause its
common stock to be delisted from the Nasdaq SmallCap Market and shall thereafter
honor all  conversions of the Convertible  Debentures  without regard to the 20%
limitation described in Section 6.13 of the Credit Agreement.  To the extent the
Company honors such  conversion,  the Company's  obligation to pay liquidated or
other  monetary  damages  under  Section 6.13 of the Credit  Agreement  shall be
proportionally discharged.

                  1.7 Condition   Precedent;   Consent.  An   express  condition
precedent  to the  Company's  obligations  under  this  Agreement  shall  be the
completion,  on or  before  February  11,  2000,  by the  Company  of a  private
placement of its equity securities yielding aggregate proceeds to the Company of
at least  $1,500,000  and  involving  a  corresponding  number  of shares of the
Company's  common stock,  which shares shall be valued at the greater of (i) one
hundred percent (100%) of the average closing bid prices of the Company's common
stock as  quoted  on the  Nasdaq  Stock  Market  for the five (5)  trading  days
immediately preceding the closing of such private placement,  or (ii) one dollar
(US $1.00).  By their  signatures  appearing below, the Holders waive any rights
any of them may have with  respect  to any  subsequent  equity  offering  by the
Company  arising under the Funding  Agreements or otherwise,  including  without
limitation, any right of consent to or participation in such equity offering.

         2.       Closing. The closing (the  "Closing")   of  the   transactions
contemplated  by this  Agreement  shall occur at the  offices of Durham  Jones &
Pinegar,  P.C.,  50 South Main Street,  Suite 800,  Salt Lake City,  Utah 84144,
counsel for the  Company,  on or before  February 14, 2000 or such later date as
the parties may mutually agree in writing (the "Closing Date").

                  2.1 Deliveries of the Company at Closing. At the Closing,  the
Company  shall  deliver to the  Purchasers:  (i) the Cash  Payment  (payable  as
described  in  Section  1.1(a)  above),  (ii) a  certificate  of  the  corporate
secretary  of  Company  as to the  incumbency  of  the  officer  executing  this
Agreement on behalf of the Company; (iii) certified copies of resolutions of the
Company's  board  of  directors  authorizing  the  Company's  execution  of  and

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performance  under  this  Agreement;  and  (iv)  certificates  representing  the
Residual Conversion Shares.

                  2.2 Deliveries of the Purchasers or Holders at Closing. At the
Closing,  (i) the Purchasers shall deliver to the Company the original execution
copies of all of the  Convertible  Debentures,  marked "Paid in Full" across the
face of the  Convertible  Debentures  and signed by the  Purchasers  who own the
Convertible  Debentures,  and (ii) the Holders  shall deliver to the Company for
cancellation  the original  execution  copies of all of the  Warrants  presently
issued and  outstanding.  If any of the instruments  required to be delivered at
Closing by the Holders have been lost,  stolen or  destroyed,  the Company shall
accept in lieu  thereof  from any Holder a  completed  and fully  executed  Lost
Instrument Certificate in the form attached to this Agreement as Exhibit "A".

         3.       Representations and Warranties of the Company. The Company
hereby makes the following representations and  warranties  to the Holders,  and
the Company  warrants that the following are true and accurate as of the date
hereof and shall be true and accurate on the Closing Date:

                  3.1 Organization;  Qualification. The Company is a corporation
duly  organized and validly  existing under the laws of the State of Utah and is
in good standing under such laws. The Company has all requisite  corporate power
and authority to own, lease and operate its properties and assets,  and to carry
on its business as presently conducted.  The Company is qualified to do business
as a foreign  corporation  in each  jurisdiction  in which the  ownership of its
property or the nature of its business requires such qualification, except where
failure to so qualify would not have a material adverse effect on the Company.

                  3.2 Authorization.  The  Company has all  requisite  corporate
right,  power and  authority  to  execute  and  deliver  this  Agreement  and to
consummate the  transactions  contemplated  hereby.  All corporate action on the
part  of  the  Company,  its  directors  and  stockholders   necessary  for  the
authorization,  execution,  delivery and  performance  of this  Agreement by the
Company and the  performance  of the Company's  obligations  hereunder have been
taken.  When this  Agreement has been duly executed and delivered by the Company
it shall  constitute  a legal,  valid  and  binding  obligation  of the  Company
enforceable in accordance with its terms, subject to laws of general application
relating to  bankruptcy,  insolvency  and the relief of debtors and rules of law
governing specific  performance,  injunctive relief or other equitable remedies,
and to  limitations  of public  policy as they may apply to the  indemnification
provisions set forth in this Agreement.

                  3.3 No Conflict.  The execution and delivery of this Agreement
does not, and the consummation of the transactions contemplated hereby will not,
conflict  with,  or result in any  violation  of, or default,  or give rise to a
right of termination, cancellation or acceleration of any material obligation or
to a loss of a material  benefit,  under,  (i) any  provision of the Articles of
Incorporation  and any  amendments  thereto,  or the By-laws and any  amendments
thereto of the Company,  (ii) any material mortgage,  indenture,  lease or other
agreement or  instrument,  permit,  concession,  franchise,  license,  judgment,
order, decree,  statute,  law, ordinance,  rule or regulation  applicable to the

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Company, its properties or assets and which would have a material adverse effect
on the Company's business and financial  condition,  or (iii) any law, judgment,
order,  arbitration  award, rule,  regulation,  ordinance,  writ,  injunction or
decree of any governmental  agency or  instrumentality or court applicable to or
having jurisdiction over the Company or any of its assets or properties.

                  3.4 Consents.  No consent,  approval or  authorization  of  or
designation,  declaration or filing with any governmental  authority on the part
of the Company is required in connection  with the valid  execution and delivery
of this Agreement or the consummation of any transaction contemplated hereby.

                  3.5 Solvency. As of the date of this Agreement the Company is,
and as of the Closing Date the Company  shall be, able to pay its current  debts
and liabilities when and as due.

                  3.6 Fair Value. The Cash Payment and the other  performance of
the parties under this Agreement represents a fair present value of that portion
of the Convertible Debentures, the interest accrued thereon, and any damages and
penalties  payable  under any of the Funding  Agreements,  based on the relevant
risks,  the nature of the Convertible  Debentures,  the market for the Company's
common  stock,  the  value  of  the  Warrants  and  the  present  status  of the
transactions contemplated by the Funding Agreements.

         4.       Representations and Warranties of the Purchasers. Each  of the
Purchasers  hereby makes the  following  representations  and  warranties to the
Company,  and each of the  Purchasers  warrants  that the following are true and
accurate on the date  hereof and will be true and  correct on the Closing  Date,
provided that each Purchaser's representations and warranties as set forth below
shall be deemed to pertain only to that  Purchaser,  and no  Purchaser  shall be
deemed to have made any  representation  or warranty  for, on behalf of or about
any other Purchaser:

                  4.1 Holder  of  Debenture.  The  Purchaser  is  the  sole  and
complete  owner and, in such  capacity  owns and holds all of the rights and has
all of the obligations under the Convertible  Debentures owned by such Purchaser
as  indicated on Schedule B hereto,  free and clear of all liens,  encumbrances,
security agreements,  assignments,  charges, restrictions or any other claims of
any type, kind or nature whatsoever.

                  4.2 No  Liens.   The  Purchaser  has  not  caused   any  lien,
encumbrance,  security agreement, charge, restriction, or any other claim of any
type,  kind or nature  whatsoever,  to be recorded  or filed  against any of the
property or assets of the Company.

                  4.3 Authorization.  The Purchaser has all requisite  corporate
right,  power and  authority  to  execute  and  deliver  this  Agreement  and to
consummate the  transactions  contemplated  hereby.  All corporate action on the
part of the  Purchaser,  and its  directors and  stockholders  necessary for the
authorization,  execution,  delivery and  performance  of this  Agreement by the
Purchaser and the performance of the Purchaser's obligations hereunder have been
taken. When this Agreement has been duly executed and delivered by the Purchaser
it shall  constitute  a legal,  valid and binding  obligation  of the  Purchaser

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enforceable in accordance with its terms, subject to laws of general application
relating to  bankruptcy,  insolvency  and the relief of debtors and rules of law
governing specific  performance,  injunctive relief or other equitable remedies,
and to  limitations  of public  policy as they may apply to the  indemnification
provisions set forth in this Agreement.

                  4.4 No Conflict.  The execution and delivery of this Agreement
does not, and the consummation of the transactions contemplated hereby will not,
conflict  with,  or result in any  violation  of, or default,  or give rise to a
right of termination, cancellation or acceleration of any material obligation or
to a loss of a material benefit,  under, (i) any provision of the certificate or
articles of  incorporation or any other charter or organization  documents,  and
any  amendments  thereto  or  the  By-laws,   operating  agreements  or  similar
documents,  and any  amendments  thereto  of the  Purchaser,  (ii) any  material
mortgage, indenture, lease or other agreement or instrument, permit, concession,
franchise,  license,  judgment,  order, decree, statute, law, ordinance, rule or
regulation applicable to the Purchaser, its properties or assets and which would
have a  material  adverse  effect  on the  Purchaser's  business  and  financial
condition,  or  (iii)  any  law,  judgment,   order,  arbitration  award,  rule,
regulation,  ordinance, writ, injunction or decree of any governmental agency or
instrumentality or court applicable to or having jurisdiction over the Purchaser
or any of its assets or properties.

                  4.6 Valid  Corporate  Organization  and Good Standing.  To the
extent the  Purchasers  are not natural  persons,  each of the  Purchasers  is a
corporation,  partnership,  limited  liability  company  or  other  entity  duly
organized,  validly  existing and in good standing  under the laws of the state,
country  or  jurisdiction  of its  organization  or  incorporation,  and has the
corporate or other entity power and authority  necessary and  appropriate to own
its properties and to engage in the business in which it is presently engaged.

                  4.9 Fair Value. The Cash Payment and the other  performance of
the Company under this Agreement represents a fair present value of that portion
of the Convertible Debentures, the interest accrued thereon, and any damages and
penalties  payable  under any of the Funding  Agreements  based on the  relevant
risks,  the nature of the Convertible  Debentures,  the market for the Company's
common  stock,  the  value  of  the  Warrants  and  the  present  status  of the
transactions contemplated by the Funding Agreements.

                  4.10 Investment Intent. In respect of the Residual  Conversion
Shares,  the  Purchasers  represent  that they are and will be the sole and true
parties  in  interest,  and no other  person or entity has or will have upon the
issuance  of the  Residual  Conversion  Shares any  beneficial  interest  in the
Residual  Conversion  Shares or any portion of the Residual  Conversion  Shares,
whether direct or indirect. The Purchasers shall receive the Residual Conversion
Shares for its own account for  investment  purposes only and not with a view to
or for  distributing  or reselling  the Residual  Conversion  Shares or any part
thereof or interest therein,  without  prejudice,  however,  to each Purchaser's
right  at all  times  to sell or  otherwise  dispose  of all or any  part of the
Residual Conversion Shares pursuant to an effective registration statement under
the  Securities  Act,  as that term is defined  below,  and in  compliance  with
applicable state securities laws or under an exemption from such registration.

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                  4.11 Accredited  Investor.  As  of the date of this Agreement,
the Purchasers are, and on the Closing Date they will be, "accredited investors"
as defined in Rule 501(a) of Regulation D under the  Securities  Act of 1933, as
amended (the "Securities Act").

                  4.12 No Representations.  The Purchasers  acknowledge that the
Company  files reports  under the  Securities  Exchange Act of 1934, as amended,
with the SEC, which reports are available to the public. The Purchasers have had
access to such reports and other  publicly  available  information  as they have
deemed  appropriate.  Without  limiting the  generality  of the  foregoing,  the
Purchasers  acknowledge  that they have read the Company's Annual Report on Form
10-KSB for the year ended December 31, 1998,  and the Quarterly  Reports on Form
10-QSB for the periods  ended  March 31,  June 30 and  September  30,  1999.  No
representative, director, officer, employee, shareholder or agent of the Company
has made any  representation  of any kind about the Company,  its  operations or
financial condition other than as set forth in publicly available reports.

                  4.13 Transfer   Restrictions;    Legends.   The   Purchasers
acknowledge that the Residual Conversion Shares may only be disposed of pursuant
to an effective  registration statement under the Securities Act, to the Company
or pursuant to an available  exemption  from or in a transaction  not subject to
the registration requirements thereof. In connection with any transfer of any of
the Residual  Conversion  Shares, the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor,  the
form and  substance of which opinion  shall be  reasonably  satisfactory  to the
Company,  to the effect that such transfer does not require  registration  under
the Securities Act. The parties agree to the imprinting of the following  legend
on the certificate or certificates representing the Residual Conversion Shares:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
         APPLICABLE  STATE  SECURITIES  LAWS IN RELIANCE UPON AN EXEMPTION  FROM
         REGISTRATION  UNDER THE SECURITIES  ACT, AND,  ACCORDINGLY,  MAY NOT BE
         OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION STATEMENT
         UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
         IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION  REQUIREMENTS OF THE
         SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

Nothwithstanding  the  foregoing,  the Company  acknowledges  generally that the
Purchasers  shall be able to sell the  Residual  Conversion  Shares  to the full
extent permitted by Rule 144 under the Securities Act, and specifically that, as
amended to date,  Rule  144(d)(3)(ii)  under the  Securities Act would allow the
Purchasers to deem any Residual  Conversion  Shares to have been acquired by the
Purchasers  at  the  same  time  as the  Residual  Convertible  Debentures  were
acquired.

                                       9
<PAGE>

         5.       Miscellaneous Provisions.

                  5.1 Costs.  The  Purchasers and the Company shall each pay all
of their own costs  and  expenses  incurred  or to be  incurred  by each of them
respectively  in negotiating and preparing this Agreement and in taking whatever
actions  may  be  necessary  or  appropriate  to  consummate  the   transactions
contemplated by this Agreement, including the costs of obtaining any consents or
approvals.

                  5.2 Further Acts. The parties, at any time before or after the
Closing,  will  execute,  acknowledge,  and deliver any  assignments,  releases,
conveyances,  and other  assurances,  documents,  and  instruments  of transfer,
reasonably  requested  by any  other  party,  and  will  take any  other  action
consistent  with the terms of this Agreement that may reasonably be requested by
any other party.

                  5.3 Captions. The subject headings or captions of the sections
and  subsections of this Agreement are included only for purposes of convenience
and shall  not  affect  the  construction  or  interpretation  of any  provision
contained herein.

                  5.4 Entire   Agreement.  This  Agreement  (together  with  all
schedules  and  exhibits to this  Agreement)  constitutes  the entire  agreement
between the parties  pertaining to the subject matter hereof, and supersedes any
and all  prior or  contemporaneous  written  or oral  negotiations,  agreements,
representations,  and understandings of the parties with respect to such subject
matter.

                  5.5 Expenses.  If any legal action or any arbitration or other
proceeding is brought for the  enforcement of this  Agreement,  or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the provisions of this Agreement,  the successful or prevailing party or parties
shall be entitled to recover reasonable attorneys' fees and other costs incurred
in that action or  proceeding,  in  addition to any other  relief to which it or
they may be entitled.

                  5.6 Modification,  Amendment or Waiver. This Agreement may not
be amended,  supplemented  or otherwise  modified,  and none of its terms may be
waived, unless such amendment, supplement,  modification or waiver is in writing
and  executed  by the party or parties to be bound  thereby.  The failure of any
party at any time or times to require  performance of any provision hereof shall
not affect the right of such party at a later time to enforce  the same,  and no
waiver of any term or provision hereof on any one occasion shall be deemed to be
a waiver of the same or any other  provision  hereof at any  subsequent  time or
times.

                  5.7 Binding  Effect;   Assignment.  This  Agreement  shall  be
binding  upon,  and shall  enure to the  benefit of and be  enforceable  by, the
parties  hereto,  and their  respective  heirs,  successors,  assigns  and legal
representatives;  provided,  however,  that  no  assignment  of  any  rights  or
delegation  of any  obligations  provided for herein may be made by any party to
this Agreement without the prior written consent of the other parties hereto.

                                       10
<PAGE>

                  5.8  Construction.   This  Agreement  shall  be  construed  in
accordance  with its intent and without  regard to any  presumption or any other
rule  requiring  construction  against the party causing the same to be drafted.
The parties acknowledge that this Agreement,  and the terms hereof, were arrived
at after  negotiations  between the parties,  and each provision hereof shall be
construed as having been drafted by each and all of the parties hereto.

                  5.9 Governing  Law.  The  laws of the State of New York  shall
govern the validity,  performance and enforcement of this Agreement. Each of the
parties consents to the  jurisdiction of the U.S.  District Court sitting in the
Southern  District of the State of New York or the state  courts of the State of
New York sitting in Manhattan in connection  with any dispute arising under this
Agreement.

                  5.10 Counterparts; Facsimile Signatures. This Agreement may be
executed in  counterparts,  each of which shall be deemed an original and all of
which taken together shall constitute the same  instrument.  A facsimile copy of
an original signature shall have the same effect as an original signature.

                  5.11 No Third Parties  Benefited.  This  Agreement is made and
entered into for the sole protection and benefit of the Company and the Holders,
their  respective  successors and assigns,  and no other person or persons shall
have any right of action hereon.

                  5.12 Severability.  If any provision of this Agreement, or any
portion  of any  provision,  shall be deemed  invalid or  unenforceable  for any
reason  whatsoever,  such  invalidity or  unenforceability  shall not affect the
enforceability and validity of the remaining provisions hereof.

                  5.13 Definitions. Capitalized terms used in this Agreement but
not specifically  defined in this Agreement shall have the meanings set forth in
the Funding Agreements.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                      [SIGNATURE PAGE FOLLOWS IMMEDIATELY]

                                       11
<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the date first set forth above.

THE COMPANY:                             THE PURCHASERS:

DYNATEC INTERNATIONAL, INC.              ELLIS ENTERPRISES

By: /s/ Frederick W. Volcansek, Sr.      By:  /s/ Illegible
  -------------------------------------     -----------------------------------
    Its: Chief Executive Officer            Its: Director

By: /s/  Michael Whaley                  TLG REALTY
   ------------------------------------
   Its: Chief Financial Officer

                                         By: /s/ Illegible
                                            ----------------------------------
                                            Its: President

PLACEMENT AGENT:

SETTONDOWN CAPITAL                       BALMORE FUNDS, S.A.
         INTERNATIONAL, LTD.

By:  /s/ Illegible                       By:  /s/  Illegible
   ------------------------------------     -----------------------------------
   Its:  Director                           Its:
       --------------------------------         -------------------------------

                                         AUSTOST ANSTALT SCHAAN

                                         By:  /s/ Illegible
                                            -----------------------------------
                                            Its:
                                                -------------------------------

                                         HEWLETT FUND

                                         By: /s/ Illegible
                                            -----------------------------------
                                            Its:
                                                -------------------------------

                                       12
<PAGE>

                                   Schedule A

                                   Purchasers

Austost Anstalt Schaan
733 Fuerstentum Liechtenstein
Landstrasse 163

Balmore Funds S.A.
Trident Chambers
P.O. Box 146
Roadstown, Tortula BVI

Ellis Enterprises
12A Waterloo Road
London NW2 7UF, England

Hewlett Fund
1615 Avenue I
Brooklyn, NY 11230

TLG Realty
c/o Melo
525 West 52nd St.
New York, NY 10019

                                       13
<PAGE>

                                   Schedule B
<TABLE>
<CAPTION>

---------------------------- -------------------------- -------------------------- ----------------- --------------- --------------
           Holder              Convertible Debentures          Warrants Owned           Residual       Common Stock     Purchase
                                At February 14, 2000        At February 14, 2000        Principal      Issuable Upon   Price Payable
                                                                                        Amount of        Conversion
                                 Principal  Interest            A         B            Convertible
                                  Amount    Accrued         Warrants  Warrants          Debentures

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

---------------------------- ------------- ------------ ------------ ------------- ----------------- --------------- --------------
<S>                          <C>             <C>            <C>           <C>               <C>              <C>        <C>
  Austost Anstalt Schaan        $531,000     $ 112,041       62,500        62,500           $25,325          40,891     $  649,409

  Balmore Funds, S.A.            531,000       112,041       62,500        62,500           $25,325          40,891        649,409

  Ellis Enterprises               57,000        12,027       10,000        10,000           $ 2,718           4,389         69,711

  Hewlett Fund                    25,000         5,275        5,000         5,000           $ 1,192           1,925         30,575

  TLG Realty                      82,500        17,407       10,000        10,000           $ 3,935           6,354        100,896

  Settondown Capital                   0             0       82,500             0                 0               0              0
  International

  Manchester Asset Management          0             0       67,500        50,000                 0               0              0
  Limited

  Avalon Capital Limited               0             0            0       125,000                 0               0              0

  Avalon Capital, Inc.                 0             0            0       125,000                 0               0              0

                   Totals    $ 1,226,500     $ 258,792      300,000       450,000            58,495          94,450     $1,500,000
---------------------------- ------------- ------------ ------------ ------------- ----------------- --------------- --------------
</TABLE>

                                       14
<PAGE>

                                                                     EXHIBIT "A"

                           LOST INSTRUMENT CERTIFICATE

         The undersigned, is the holder of the following instrument(s) issued by
Dynatec  International,  Inc., a Utah corporation  (the  "Company"),  on May 22,
1998, in connection  with the closing of the  transactions  contemplated by that
certain Convertible Debenture and Private Equity Line of Credit Agreement by and
among the Company,  Settondown Capital  International,  Ltd., Ellis Enterprises,
TLG Realty,  Balmore Funds, S.A., Austost Anstalt Schaan and Hewlett Fund, dated
as of May 22, 1998 [Check all that apply]:

               Convertible Debenture No. ________ in the principal amount of
               _________________ Dollars ($___________); and/or

               A Warrant No. _________ entitling the holder thereof to acquire
               ____________ (____________) shares of the Company's common stock;
               and/or

               B Warrant No. _________ entitling the holder thereof to acquire
               ____________ (____________) shares of the Company's common stock.

         The undersigned  hereby certifies that said  instrument(s) as indicated
immediately above is(are) lost or has(have) been destroyed and cannot be located
and agrees that, in the event such instrument(s)  is(are) found, the undersigned
will forthwith deliver such instrument(s) to Dynatec  International,  Inc., 3820
West Great Lakes Drive,  Salt Lake City,  Utah 84120,  Attn.  Michael L. Whaley,
Chief Financial Officer.  Further, the undersigned  represents and warrants that
the securities or other rights  represented by such  instrument(s) have not been
encumbered,  transferred,  assigned or pledged by the  undersigned  to any other
person or entity and the  undersigned  is the lawful owner of and has marketable
title to all such securities or other rights. The undersigned  further agrees to
indemnify  and hold the Company and its  officers,  directors,  representatives,
agents and attorneys and their successors and assigns,  harmless for any and all
loss,  expense  (including counsel fees and damages) or liability the Company or
any of such persons may suffer due to such lost  instrument(s) or as a result of
any of the statements made herein by the undersigned being untrue.

                                        Dated:                          , 2000
                                              -------------------------
                                        -------------------------------
                                        Signature:

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

                                        Printed Name:

                                        --------------------------------THE SECURITIES  THAT ARE THE SUBJECT OF THIS AGREEMENT HAVE NOT BEEN  REGISTERED
UNDER  THE  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE  "ACT"),  OR  UNDER  THE
SECURITIES  LAWS OF ANY  STATE,  AND WILL BE  OFFERED  AND SOLD IN  RELIANCE  ON
EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF FEDERAL AND STATE LAW BY VIRTUE
OF  THE  COMPANY'S  INTENDED  COMPLIANCE  WITH  SECTION  4(2)  OF THE  ACT,  THE
PROVISIONS OF REGULATION D PROMULGATED THEREUNDER, AND PARALLEL EXEMPTIONS UNDER
STATE  LAW.  THE  SECURITIES  HAVE  NOT  BEEN  APPROVED  OR  DISAPPROVED  BY ANY
REGULATORY AUTHORITY. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

                            STOCK PURCHASE AGREEMENT

Dynatec International, Inc.
Attn. Frederick W. Volcansek, Sr.
3820 West Great Lakes Drive
Salt Lake City, Utah 84120

Dear Sirs:

         The undersigned  hereby agree to purchase shares of the common stock of
Dynatec  International,  Inc., a Utah corporation  ("Dynatec" or the "Company"),
according to the terms and conditions set forth in this Stock Purchase Agreement
(the "Agreement").

         1.  Purchase  of Shares.  Subject to the terms and  conditions  of this
Agreement,  the undersigned hereby agree to acquire from the Company that number
of  shares  of the  Company's  common  stock,  par  value  $.01 per  share  (the
"Shares"),  equal to ONE MILLION SIX HUNDRED  THOUSAND  DOLLARS (US  $1,600,000)
(the "Purchase Price") divided by the greater of (i) $1.00 per share or (ii) One
Hundred Percent (100%) of the average of the closing bid prices of the Company's
common  stock as quoted by the Nasdaq Stock Market for the five (5) trading days
immediately  preceding  the date the  undersigned  pays all or a portion  of the
Purchase Price payable by it, him or her. The undersigned agree to purchase that
number of Shares,  and pay that amount of the  Purchase  Price,  as shall be set
forth in Schedule "A", which is attached to and incorporated into this Agreement
by this reference.

         2.  Closing;  Issuance of Shares.  The closing (the  "Closing")  of the
purchase and sale of the Shares as described in this Agreement  shall occur upon
receipt by the Company of the Purchase  Price,  which  closing shall occur on or
before 5:00 p.m.,  M.S.T. on February 11, 2000 or such later date as the parties
may agree (the "Closing Date"). The Company shall cause its stock transfer agent
to issue  certificates  representing  the Shares as soon as  possible  after the
Closing Date,  but in all events within five (5) business days after the Closing
Date. Payment of the Purchase Price to the Company on or before the Closing Date
shall be  accomplished  by wire  transfer of the Purchase  Price to the Company,
according  to  wire  transfer   instructions  that  shall  be  provided  to  the
undersigned on or before the Closing Date.

                                        1

<PAGE>

         3.  Representations and Warranties of the Company.  The Company
             represents and warrants to each of the undersigned as follows:

             a.  Organization   and   Qualification.   The  Company  is  a
         corporation,  duly incorporated,  validly existing and in good standing
         under  the  laws of the  jurisdiction  of its  incorporation,  with the
         requisite  corporate  power and authority to own and use its properties
         and assets and to carry on its  business as  currently  conducted.  The
         Company has no subsidiaries other than those set forth on Schedule 3(a)
         attached hereto  (collectively  the  "Subsidiaries"  and individually a
         "Subsidiary").   Each  of  the  Subsidiaries  is  a  corporation,  duly
         incorporated  validly  existing and in good standing  under the laws of
         the  jurisdiction of its  incorporation,  with the requisite  corporate
         power and  authority  to own and use its  properties  and assets and to
         carry on its business as currently  conducted.  Each of the Company and
         the  Subsidiaries  is  duly  qualified  to do  business  and is in good
         standing as a foreign  corporation  in each  jurisdiction  in which the
         nature of the  business  conducted  or property  owned by it makes such
         qualification necessary, except where the failure to be so qualified or
         in good standing,  as the case may be, does not, individually or in the
         aggregate,  (x) adversely affect the legality or validity of the Shares
         or this Agreement,  or (y) have or result in a material  adverse effect
         on  the  results  of  operations,   assets,   prospects,  or  condition
         (financial or otherwise) of the Company and the Subsidiaries,  taken as
         a whole (either of (x) or (y) a "Material Adverse Effect").

             b.  Authorization;  Enforcement.  The  Company  has  the  requisite
         corporate  power and  authority  to enter  into and to  consummate  the
         transactions contemplated by this Agreement, and otherwise to carry out
         its obligations hereunder. The execution and delivery of this Agreement
         by  the  Company  and  the  consummation  by  it  of  the  transactions
         contemplated  hereby have been duly authorized by all necessary  action
         on the part of the  Company  and no further  action is  required by the
         Company. This Agreement has been duly executed by the Company and, when
         delivered in accordance  with the terms  hereof,  will  constitute  the
         legal, valid and binding obligation of the Company  enforceable against
         the Company in accordance with its terms, except as such enforceability
         may be limited by applicable  bankruptcy,  insolvency,  reorganization,
         moratorium,  liquidation  or  similar  laws  relating  to or  affecting
         generally the enforcement of creditors' rights and remedies or by other
         equitable  principles of general  application.  Neither the Company nor
         any Subsidiary is in material violation of any of the provisions of its
         respective   articles  of   incorporation,   bylaws  or  other  charter
         documents.

             c.  Capitalization.  The  number  of  authorized,  issued  and
         outstanding  shares of  capital  stock of the  Company  is set forth in
         Schedule 3(c) attached  hereto.  No shares of common stock are entitled
         to  preemptive  or similar  rights,  nor is any holder of common  stock
         entitled to preemptive or similar  rights  arising out of any agreement
         or understanding  with the Company by virtue of this Agreement.  Except
         as  disclosed  in  Schedule  3(c),  there are no  outstanding  options,
         warrants,  script rights to subscribe to, calls or  commitments  of any
         character  whatsoever  relating  to,  or,  except  as a  result  of the
         purchase and sale of the Shares, rights or obligations convertible into
         or  exchangeable  for,  or giving any  Person,  as that term is defined
         below, any right to subscribe for or acquire any common shares, or

                                        2

<PAGE>

         contracts,  commitments,  understandings,  or arrangements by which the
         Company or any  Subsidiary  is or may become bound to issue  additional
         common shares, or securities or rights convertible or exchangeable into
         common   shares.   "Person"   means  an  individual   or   corporation,
         partnership,  trust, incorporated or unincorporated association,  joint
         venture, limited liability company, joint stock company, government (or
         an agency or  subdivision  thereof)  or other  entity of any kind.  The
         amount of the Company's authorized but previously unissued common stock
         is sufficient to allow for the issuance by the Company of the Shares.

             d.  Issuance  of  the  Shares.  The  Shares  are  duly  authorized,
         and,  when  issued and paid for in  accordance  with the terms  hereof,
         shall have been validly issued, fully paid and nonassessable,  free and
         clear of all liens,  encumbrances  and  rights of first  refusal of any
         kind (collectively, "Liens").

             e.  No Conflicts.  The execution,  delivery and  performance of
         this  Agreement by the Company and the  consummation  by the Company of
         the transactions  contemplated  hereby do not and will not (i) conflict
         with or violate any provision of its Articles of Incorporation, By-laws
         or other charter  documents  (each as amended through the date hereof),
         (ii) subject to obtaining the Required  Approvals  (as defined  below),
         conflict  with,  or constitute a default (or an event which with notice
         or lapse of time or both  would  become a  default)  under,  or give to
         others  any  rights  of   termination,   amendment,   acceleration   or
         cancellation  (with or without  notice,  lapse of time or both) of, any
         agreement,  credit  facility,  indenture or  instrument  (evidencing  a
         Company debt or otherwise) to which the Company or any  Subsidiary is a
         party  or by  which  any  property  or  asset  of  the  Company  or any
         Subsidiary is bound or affected,  or (iii) result in a violation of any
         law, rule,  regulation,  order, judgment,  injunction,  decree or other
         restriction of any court or governmental authority to which the Company
         is  subject   (including   federal  and  state   securities   laws  and
         regulations), or by which any property or asset of the Company is bound
         or  affected,  except  in the case of each of  clauses  (ii) and  (iii)
         above, as does not, individually or in the aggregate, have or result in
         a Material Adverse Effect,  provided,  that in the case of clauses (ii)
         and (iii) above, the Company makes no  representation or warranty about
         the extent to which the  transactions  contemplated  by this  Agreement
         will comply with the rules and  regulations of the principal  market or
         exchange on which its common stock is listed or traded.

             f.  Consents  and  Approvals.  Except  as  is  set  forth  in  the
         Disclosure Materials, as hereafter defined, neither the Company nor any
         Subsidiary is required to obtain any consent, waiver,  authorization or
         order of, give any notice to, or make any filing or registration  with,
         any  court  or  other  federal,  state,  local  or  other  governmental
         authority or other Person in connection  with the  execution,  delivery
         and  performance  by the Company of this  Agreement,  other than (i) an
         application to the Nasdaq Stock Market for the listing therewith of the
         Shares,  (ii)  the  filing  of a Form D with the  U.S.  Securities  and
         Exchange  Commission,  (iii) applicable  state "Blue Sky" filings,  and
         (iv) in all other  cases  where the  failure  to obtain  such  consent,
         waiver,  authorization  or order,  or to give such  notice or make such
         filing or registration could not have or result in,  individually or in
         the  aggregate,  a Material  Adverse  Effect  (the  consents,  waivers,
         authorizations, orders, notices and filings

                                        3

<PAGE>

         referred to in clauses  (i)-(iv) of this Section 3(f)and  identified in
         the Disclosure Materials, collectively, the "Required Approvals").

             g.  Litigation;  Proceedings.  Except  as  specifically  disclosed
         in the  Disclosure  Materials  (as  hereinafter  defined),  there is no
         action, suit, written notice of violation,  proceeding or investigation
         pending or, to the  knowledge  of the  Company,  threatened  against or
         affecting  the  Company  or  any of its  Subsidiaries  or any of  their
         respective   properties  before  or  by  any  court,   governmental  or
         administrative agency or regulatory authority (federal,  state, county,
         local or  foreign)  which  (i)  adversely  affects  or  challenges  the
         legality, validity or enforceability of this Agreement or the Shares or
         (ii)  could,  individually  or in the  aggregate,  have or  result in a
         Material Adverse Effect.

             h.  Private   Offering.   Assuming   the   accuracy   of  the
         representations  and warranties of each of the undersigned set forth in
         Section  4,  the  offer,  issuance  and  sale  of  the  Shares  to  the
         undersigned  as  contemplated  hereby are exempt from the  registration
         requirements of the Securities Act of 1933, as amended (the "Securities
         Act").  Neither  the  Company  nor any Person  acting on its behalf has
         taken any action that could subject the  offering,  issuance or sale of
         the Shares to the registration requirements of the Securities Act.

             i.  SEC Reports.  The  Company  has  filed  all reports required to
         be filed by it under the  Securities  Exchange Act of 1934,  as amended
         (the  "Exchange  Act"),  including  pursuant to Section  13(a) or 15(d)
         thereof,  for the one year  preceding  the date hereof (or such shorter
         period as the Company was required by law to file such  material)  (the
         foregoing  materials being collectively  referred to herein as the "SEC
         Reports" and,  together with the Schedules or other written  disclosure
         provided  by the Company to the  undersigned  in  connection  with this
         Agreement the "Disclosure Materials") on a timely basis or has received
         a valid  extension  of such time of  filing  and has filed any such SEC
         Reports prior to the expiration of any such extension. To the Company's
         knowledge,  as of their  respective  dates, the SEC Reports complied in
         all material  respects with the  requirements of the Securities Act and
         the Exchange Act and, the rules and regulations promulgated thereunder.

             j.  Patents  and  Trademarks.  The  Company  has, or  has rights to
         use,   all  patents,   patent   applications,   trademarks,   trademark
         applications,  service  marks,  trade names,  copyrights,  licenses and
         rights  (collectively,  the  "Intellectual  Property  Rights") that are
         necessary  for  use  in  connection  with  its  business  as  currently
         conducted,  or which the failure to have would have a Material  Adverse
         Effect.  To the best  knowledge of the Company,  all such  Intellectual
         Property Rights are  enforceable and there is no existing  infringement
         by another Person of any of the Intellectual Property Rights. Except to
         the extent described in the Disclosure Materials,  no action for patent
         infringement  is pending or  threatened  against the Company in writing
         and, to the Company's  knowledge,  the Company is not infringing on any
         patent or other intellectual property rights of any third party.

             k.  Regulatory Permits. The Company and its Subsidiaries possess
         all certificates, authorizations and permits issued by the appropriate
         federal, state or foreign regulatory authorities necessary to conduct
         their respective businesses as described in the SEC Reports, except

                                        4

<PAGE>

         where the failure to possess such permits could not, individually or in
         the  aggregate,  have or result in a Material Adverse Effect ("Material
         Permits"), and neither the Company nor any such Subsidiary has received
         any  written  notice  of  proceedings  relating  to  the  revocation or
         modification of any Material Permit.

         4.  Representations and Warranties of Undersigned.  To induce the
Company's  acceptance  of  this Agreement, the undersigned each hereby severally
and  not jointly  represent  and  warrant  to  the  Company  and its agents and
attorneys as follows:

             a.  Organization;  Authority.  The  undersigned,  if  not a natural
         person, is duly organized,  validly existing and in good standing under
         the laws of the  jurisdiction of its  organization,  with the requisite
         corporate  or other  entity  power and  authority  to enter into and to
         consummate  the   transactions   contemplated  by  this  Agreement  and
         otherwise to carry out its obligations thereunder.  The purchase by the
         undersigned  of the Shares  hereunder  has been duly  authorized by all
         necessary  action on the part of the  undersigned.  This  Agreement has
         been duly executed and delivered by the undersigned and constitutes the
         valid and legally binding  obligation of the  undersigned,  enforceable
         against it in accordance with its terms,  except as such enforceability
         may be limited by applicable  bankruptcy,  insolvency,  reorganization,
         moratorium,  liquidation  or  similar  laws  relating  to or  affecting
         generally the enforcement of creditors' rights and remedies or by other
         equitable principles of general application.

             b.  Accredited Status.  The undersigned is an "accredited investor"
         within  the  meaning  of  Section  501(a)  of  Regulation  D under the
         Securities Act.

             c.  Investment  Intent. The  undersigned  is  acquiring  the Shares
         for its own account for investment purposes only and not with a view to
         or for  distributing  or  reselling  the Shares or any part  thereof or
         interest  therein,  without  prejudice,  however,  to the undersigned's
         right,  subject to the  provisions of this  Agreement,  at all times to
         sell or otherwise  dispose of all or any part of the Shares pursuant to
         an effective  registration  statement  under the  Securities Act and in
         compliance  with  all  applicable  state  securities  laws or  under an
         exemption from such registration requirements.

             d.  Access  to Information.   The  undersigned   acknowledges  that
         it,  he or she has  been  afforded  (i)  the  opportunity  to ask  such
         questions  as it, he or she has  deemed  necessary  of,  and to receive
         answers from,  representatives  of the Company concerning the terms and
         conditions  of the  offering  of the Shares and the merits and risks of
         investing in the Shares;  (ii) access to information  about the Company
         and the Company's financial condition, results of operations, business,
         properties,  management  and  prospects  sufficient  to  enable  it  to
         evaluate  its,  his or her  investment;  and (iii) the  opportunity  to
         obtain such additional  information  which the Company possesses or can
         acquire  without  unreasonable  effort or expense  that is necessary to
         make an informed investment decision with respect to the investment and
         to verify the accuracy and completeness of the information contained in
         the Disclosure Materials. The undersigned further acknowledges that it,
         he or she  understands  that the  Company is  subject  to the  periodic
         reporting requirements of the Exchange Act, and the  undersigned  has

                                        5

<PAGE>

         reviewed or received copies of any such reports that have been
         requested  by it,  her or him.  Without  limiting the generality of the
         foregoing,  the undersigned represents that it, he or she has read the
         Company's  Annual Report on Form 10-KSB for the fiscal year ended
         December 31, 1998, and the Company's  Quarterly Reports on Form 10- QSB
         for the periods  ended March 31, June 30 and September 30, 1999.

             e.  Liquidity.  The  undersigned  presently  has  sufficient liquid
         assets to pay the  Purchase  Price to be paid by it. The  undersigned's
         overall  commitments to investments that are not readily  marketable is
         not   disproportionate   to  the   undersigned's  net  worth,  and  the
         undersigned's  investment  in the Company  will not cause such  overall
         commitment to become  excessive.  The undersigned has adequate means of
         providing for its current needs and  contingencies  and has no need for
         liquidity  in the  undersigned's  investment  in the  Company  or for a
         source of income  from the  Company.  The  undersigned  is  capable  of
         bearing the economic risk and the burden of this investment, including,
         but not limited to, the  possibility  of the complete loss of the value
         of the Shares and the limited  transferability of the Shares, which may
         make the liquidation of the Shares impossible in the near future.

             f.  Sole  Party in  Interest.  The  undersigned  represents that it
         is the sole and true party in interest  with respect to that portion of
         the Shares to be acquired  by it, and no other  person has or will have
         upon the issuance of the Shares any  beneficial  ownership  interest in
         the Shares or any portion of the Shares, whether direct or indirect.

             g.  Knowledge  and  Experience.   The   undersigned,   or  its
         management or agent,  as the case may be, is  experienced in evaluating
         and making speculative investments, and has the capacity to protect the
         undersigned's  interests  in  connection  with the  acquisition  of the
         Shares.  The  undersigned,  or its management,  as the case may be, has
         such knowledge and experience in financial and business matters that it
         is capable  of  evaluating  the  merits and risks of the  undersigned's
         investment in the Company.  The  undersigned  has been informed that an
         investment  in the Shares is  speculative  and has  concluded  that its
         proposed  investment is appropriate in light of its overall  investment
         objectives and financial situation.

             h.  Exclusive  Reliance  on  this  Agreement.  In  making  the
         decision to purchase the Shares, the undersigned has relied exclusively
         upon  information  included  in this  Agreement  or  other  information
         contained  in  the  Company's  publicly  available  reports  and  other
         materials   that   have  been   provided   to  the   undersigned,   and
         investigations  made by the undersigned or the  undersigned's  managers
         and  agents,  and  not  on  any  other  representations,   promises  or
         information, whether written or verbal, by any person.

             i.  Advice  of  Counsel.  The  undersigned  understands  the  terms
         and conditions of this Agreement,  has  investigated  all issues to the
         undersigned's   satisfaction,   has   consulted   with   such   of  the
         undersigned's  own legal counsel or other  advisors as the  undersigned
         deems necessary,  and is not relying, and has not relied on the Company
         for an  explanation of the terms or conditions of this  Agreement.  The
         undersigned  further  acknowledges,  understands  and agrees  that,  in
         arranging for the  preparation of this  Agreement,  the Company has not
         attempted  to  procure  legal   representation  for  the  undersigned's
         interests.

                                        6

<PAGE>

             j.  No  Conflict   With  Other   Instruments,   Agreements  or
         Obligations.  The undersigned's  purchase of the Shares will not result
         in the  breach  of any term or  provision  of,  constitute  an event of
         default  under,  or require the consent or approval of any  third-party
         pursuant to any contract, agreement, instrument,  relationship or legal
         obligation to which the  undersigned  is subject or to which any of its
         properties, operations or management are subject.

             k.  No  Brokers or  Finders. The  undersigned  agrees that no third
         person has in any way brought the parties together or been instrumental
         in the negotiation,  execution, or consummation of this Agreement.  The
         undersigned   agrees  to  indemnify   the  Company  and  its  officers,
         employees, agents and representatives from and against any claim by any
         third person for any commission,  brokerage fee,  finders fee, or other
         payment with respect to this Agreement or the transactions contemplated
         hereby based upon any alleged  agreement or understanding  between such
         party and such third person, whether expressed or implied, arising from
         the actions of such party. The covenants set forth in this section 3(n)
         shall survive the Closing Date and the consummation of the transactions
         contemplated by this Agreement.

             l.  Source of Purchase Price.  The undersigned represents that no
         portion of the Purchase Price was obtained by a loan from any third
         party.

             m.  Manner of Sale.  At no time was the undersigned presented with
         or solicited by or through any leaflet, public promotional meeting,
         television advertisement or any other form of general solicitation or
         advertising.

             n.  Restricted   Shares.   The  undersigned   understands  and
         acknowledges that the Shares have not been registered under the Act, or
         any state  securities laws, and will be issued in reliance upon certain
         exemptions from the  registration  requirements of those laws, and thus
         cannot be resold unless they are registered under the Act or unless the
         Company has first received an opinion of competent  securities  counsel
         that an exemption from registration is available for such resale.  With
         regard to the restrictions on resales of the Shares, the undersigned is
         aware  (i) of the  limitations  and  applicability  of  Securities  and
         Exchange  Commission  Rule 144;  (ii) that the Company  will issue stop
         transfer orders to its stock transfer agent in the event of attempts to
         improperly  transfer the Shares;  and (iii) that a  restrictive  legend
         will be placed  on the  certificates  representing  the  Shares,  which
         legend will read substantially as follows:

                  THE  SECURITIES  REPRESENTED  BY THIS  CERTIFICATE  HAVE  BEEN
                  ISSUED PURSUANT TO A CLAIM OF EXEMPTION FROM THE  REGISTRATION
                  OR QUALIFICATION  PROVISIONS OF THE SECURITIES ACT OF 1933, AS
                  AMENDED (THE "ACT"),  AND STATE  SECURITIES LAWS AND THEREFORE
                  HAVE NOT BEEN REGISTERED UNDER THE ACT OR UNDER THE SECURITIES
                  LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED,  SOLD,
                  TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT COMPLIANCE WITH

                                        7

<PAGE>

                  THE REGISTRATION OR  QUALIFICATION  PROVISIONS OF  THE  ACT OR
                  APPLICABLE  STATE  LAWS,  OR  PURSUANT  TO AN AVAILABLE
                  EXEMPTION  FROM  SUCH  REGISTRATION REQUIREMENTS. FURTHERMORE,
                  THE  COMPANY  WILL  INSTRUCT  ITS STOCK  TRANSFER AGENT NOT TO
                  RECOGNIZE  ANY SALE OF THESE SECURITIES UNLESS THE COMPANY HAS
                  FIRST  RECEIVED  AN  OPINION OF  COUNSEL, SATISFACTORY  TO THE
                  COMPANY  AND  ITS  SECURITIES  COUNSEL,  THAT  AN  EXEMPTION
                  FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.

             o.  Reliance. The undersigned understands and acknowledges that (i)
         the Shares  are  being  offered  and  sold  to  it,  him or her without
         registration  under  the  Securities Act in a private placement that is
         exempt from  the  registration  provisions of the  Securities  Act  and
         (ii) the  availability  of  such  exemption depends in part on, and the
         Company  will  rely  upon  the  accuracy  and  truthfulness  of,  the
         representations  in  this  Section  4,  and  the  undesigned  hereby
         acknowledges  and  consents  to  such reliance.

             p.  No  Group.  The  undersigned  presently  have  no  agreement,
         understanding  or  arrangement  to act  together  for  the  purpose  of
         acquiring,  holding or voting the  Shares or any other  voting  capital
         stock of the  Company,  or any  other  relationship,  understanding  or
         agreement  that would make them a "group" for purposes of Rule 13d-5(b)
         under the  Exchange  Act, and the  undersigned  will not enter into any
         such  agreement  or  arrangement  in  writing  or  otherwise  after the
         Closing.

             q.  Residency.  The undersigned, if an entity, represents that its
         jurisdiction of incorporation is as indicated on Schedule A hereto,
         and, if a natural person, represents that its state or country of
         residences is as indicated on Schedule A hereto.

             r.  Accuracy  of   Representations   and   Information.   All
         representations  made by the  undersigned  in this  Agreement,  and all
         information provided by the undersigned to the Company or its agents or
         representatives  concerning the  undersigned is correct and complete as
         of the date hereof. If there is any material change in such information
         before the actual issuance of the Shares,  the undersigned  immediately
         will provide such information in writing to the Company.

         5.  Management Proxy.The parties acknowledge and agree that they intend
that this Agreement  shall not result in a change of control with respect to the
ownership of voting control of the Company.  In furtherance of such intent,  the
parties agree that, to the extent any of the undersigned  agree and are entitled
to obtain under this Agreement (i) in excess of 19.9% of the common stock of the
Company issued and outstanding immediately before the Closing Date, or (ii) that
number of Shares which,  when aggregated with any shares of the Company's common
stock owned by such undersigned party immediately before the Closing Date, would
cause such  undersigned  party to own in excess of 19.9% of the common  stock of
the Company issued and  outstanding  immediately  before the Closing Date,  such
undersigned party hereby grants an irrevocable proxy to the Company's Chief

                                        8

<PAGE>

Executive Officer to vote any shares of such  undersigned  party in excess of
the 19.9% limits  specified in clauses (i) and (ii)  above,  which  proxy  shall
be  executed by such officer  in  direct proportion  to the voting of all of the
shares of the  Company's  common  stock voted by the Company's  shareholders  on
any matter being submitted for the vote of the Company's shareholders. The proxy
granted by this Section 5 shall expire automatically  at the  earlier  of  the
following:  (x)  such  time  any of the undersigned  who are deemed to grant a
proxy pursuant to this Section 5, or its, his or her successor,  shall
beneficially  own less than 19.9% of the Company's common  stock;  or (y) such
time as the Company's  shareholders  at an annual or special  meeting  of
shareholders,  shall  vote  to  approve  the  transactions contemplated by this
Agreement.

         6.  Indemnification.

             a.  Indemnification  By  the  Company.  The  Company  agrees  to
         indemnify  each of the  undersigned  and hold  each of the  undersigned
         harmless  from  and  against  any and all  liability,  damage,  cost or
         expense,  including reasonable  attorneys' fees, incurred on account or
         arising  out  of:  (i)  any  inaccuracy  in  the   representations  and
         warranties of the Company set forth herein;  and (ii) any action,  suit
         or  proceeding  based upon (A) the claim that said  representations  or
         warranties  were  inaccurate  or  misleading  or  otherwise  cause  for
         obtaining  damages  or  redress  from  the  undersigned;   or  (B)  the
         disposition of the Shares or any portion thereof.

             b.  Indemnification   By   the  Undersigned.   The   undersigned
         severally  and not jointly  agree to indemnify the Company and hold the
         Company harmless from and against any and all liability,  damage,  cost
         or expense,  including reasonable  attorneys' fees, incurred on account
         or  arising  out of:  (i) any  inaccuracy  in the  representations  and
         warranties of the undersigned set forth herein; (ii) the disposition of
         the Shares, or any portion thereof, by the undersigned  contrary to the
         representations and warranties set forth herein and any restrictions on
         transfer that may be noted on the certificates representing the Shares;
         and (iii) any action,  suit or proceeding based upon (A) the claim that
         said  representations  or warranties  were  inaccurate or misleading or
         otherwise cause for obtaining  damages or redress from the Company;  or
         (B) the disposition of the Shares or any portion thereof.

         7.  Use of  Proceeds.  The Company  intends to use the  proceeds of the
Purchase  Price  received  from  the   undersigned  as  follows.   Approximately
$1,500,000 will be used to retire the Company's  obligations under a Convertible
Debenture and Private Equity Line of Credit  Agreement  dated as of May 22, 1998
by and among  the  Company,  five  separate  investors  and a  placement  agent,
pursuant to which the Company issued a total of $1,500,000  principal  amount of
the Company's convertible debentures.  Additionally,  the Company intends to use
the  remaining  $100,000  of such  proceeds  for  operating  capital and for the
payment of trade payables and selling, general and administrative expenses.

         8.  Alternative Structure as Convertible Debt.  If, and only if, the
Nasdaq Stock Market shall for any reason determine that approval of the
Company's shareholders shall be required as a precondition to the consummation
of the transactions contemplated by this Agreement in order to preserve the
listing of the Company's common stock on the Nasdaq Stock Market, the

                                        9

<PAGE>

undersigned agree that the Company shall proceed as follows:  (i) the Company
shall issue to the undersigned, pro rata, as many shares of common stock as
shall be allowed by the Nasdaq  Stock  Market and shall  receive  therefor a pro
rata portion of the Purchase Price anticipated by this Agreement; and (ii) the
Company shall receive any additional portion of the total Purchase Price
anticipated by this Agreement as an unsecured loan ("Provisional Loans") from
the undersigned in the amount of Purchase  Price  received from each of the
undersigned as indicated in Schedule "A" and for which  the undersigned will not
receive  shares of the  Company's common stock. The Provisional Loans shall bear
simple  interest at the lowest applicable  federal rate of imputed  interest as
determined by reference to the Internal Revenue Code of 1986, as amended, which
interest shall be calculated by reference to a 360-day year.  Interest on the
Provisional Loans shall be payable only  in  cash.  The  principal  amount  of
the  Provisional   Loans  shall  be automatically  converted  into the  number
of shares of common  stock  otherwise issuable  (but not yet issued)  under this
Agreement  upon the  approval by the Company's shareholders of the transactions
contemplated by this Agreement.  The Company  agrees,  if  Provisional  Loans
are made pursuant to this Section 8, to seek the approval of its shareholders on
the  transactions  contemplated by this Agreement  at the earliest  practical
opportunity.  In the event the  Company's shareholders  shall  refuse to approve
the  transactions  contemplated  by this Agreement, the Provisional Loans shall
become immediately due and payable at any time after the annual or special
meeting of the Company's  shareholders at which such shareholders refuse to
approve such transactions.

         9.  Miscellaneous Provisions.

             a.  Attorneys' Fees.  In the event of a default in the performance
         of this Agreement, the defaulting party or parties, in addition to all
         other obligations of performance hereunder, shall pay reasonable
         attorneys' fees and costs incurred by the non-defaulting party or
         parties to enforce performance of this Agreement.

             b.  Choice  of  Law.  This  Agreement  shall  be  governed  by  and
         construed in accordance  with the laws of the State of Utah,  without
         regard to choice of law rules. Each of the parties consents to the
         exclusive  jurisdiction and venue of the U.S.  District  Court  sitting
         in the  District  of Utah or the state courts of the State of Utah
         located in Salt Lake City,  Salt Lake County, Utah, in  connection with
         any dispute  arising under this  Agreement and hereby waives,  to the
         maximum  extent  permitted by law, any  objection  including any
         objection based on forum non conveniens,  to the bringing of any such
         proceeding in such jurisdictions.

             c.  Counterparts.  This Agreement may be executed in one or more
         counterparts, which when signed shall constitute a single contract.

             d.  Entire Agreement.  This Agreement contains the entire agreement
         between the parties relating to the purchase of the Shares, and may be
         amended only by a written document signed by all of the parties hereto.

             e.  Headings.  The headings of the sections and paragraphs of this
         Agreement have been inserted for convenience of reference only and do
         not constitute a part of this Agreement.

                                       10

<PAGE>

             f.  Severability.  Should any one or more of the provisions of this
         Agreement be determined to be illegal or unenforceable, all other
         provisions of this Agreement shall be given effect separately from the
         provision or provisions determined to be illegal or unenforceable and
         shall not be affected thereby.

             g.  Successors and Assigns.  This  Agreement  shall be binding
         upon and inure to the benefit of the undersigned and  undersigned's
         successors, but shall not be assignable by the undersigned without the
         prior written consent of the Company. The undersigned's subscription
         shall inure to the benefit of the Company,  and upon its  acceptance
         by the  Company,  shall be binding  upon the Company and its successors
         and assigns.

             h.  Warranties Survive Closing.  All warranties, representations,
         indemnities and agreements hereunder shall survive the date of this
         Agreement and the offering of the Shares by the Company.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                      [SIGNATURE PAGE FOLLOWS IMMEDIATELY]

                                       11

<PAGE>

         IN WITNESS WHEREOF,  the undersigned have executed this Agreement as of
February 11, 2000.

ARAGON AGENTS LIMITED                    TERRANO INVESTMENTS LIMITED

By:  /s/ Illegible                       By:  /s/  Illegible
   ------------------------------------     -----------------------------------
Its:  Principal                          Its:  Director
    -----------------------------------      ----------------------------------

CYBERWORLD LIMITED                       GOLD DRAGON INDUSTRIES LIMITED

By:  /s/ Illegible                       By:  /s/ Illegible
   ------------------------------------     -----------------------------------
Its:   Sole Director                     Its:  Director
    -----------------------------------      ----------------------------------

  /s/ Raymond Haskins                      /s/ Andrew Fletcher
---------------------------------------  --------------------------------------
 RAYMOND HASKINS                          ANDREW FLETCHER

  /s/ Maria Lorna Navarro
---------------------------------------
MARIA LORNA NAVARRO

DYNATEC INTERNATIONAL, INC.

By:  /s/ Frederick W. Volcansek, Sr.
   ------------------------------------
         Frederick W. Volcansek, Sr.
         Chairman and Chief Executive Officer

                                       12

<PAGE>

                                                    Schedule A

<TABLE>
<CAPTION>
<S>                                                <C>              <C>            <C>                  <C>
                                                                    Per Share                                Total
                                                   Funding          Purchase                           Purchase Price
   Name and Address of Investor                     Date             Price         No. of Shares            Paid

ARAGON AGENTS LIMITED                                1/20/00        $1.0188               19,265        $   19,626.91
17th Floor 53-55 Lockhart Road                        2/9/00        $1.3156               74,591            98,134.54
Wanchai                                              2/10/00        $1.3250              111,096           147,201.82
Hong Kong                                            2/11/00        $1.4000               35,048            49,067.27
                                                                                 ---------------     ----------------
                                                                                         240,000        $  314,030.54
TERRANO INVESTMENTS LIMITED                          1/20/00        $1.0188               16,055           $16,355.76
12th Floor                                            2/9/00        $1.3156               62,159            81,778.79
152 Queens Road                                      2/10/00        $1.3250               92,580           122,668.18
Central                                              2/11/00        $1.4000               29,207            40,889.39
                                                                                 ---------------     ----------------
Hong Kong                                                                                200,000        $  261,692.12

CYBERWORLD LIMITED                                   1/20/00        $1.0188               19,265        $   19,626.91
3rd Floor, 121 Min Sheng E. Road                      2/9/00        $1.3156               74,591            98,134.54
Section 3, Taiwan                                    2/10/00        $1.3250              111,096           147,201.82
TAIPEI                                               2/11/00        $1.4000               35,048            49,067.27
                                                                                 ---------------     ----------------
                                                                                         240,000        $  314,030.54
Gold Dragon Industries Limited                       1/20/00        $1.0188               19,265        $   19,626.91
80 Raffles Place                                      2/9/00        $1.3156               74,591            98,134.54
#16-20 UOB Plaza 2                                   2/10/00        $1.3250              111,096           147,201.82
048624  SINGAPORE                                    2/11/00        $1.4000               35,048            49,067.27
                                                                                 ---------------     ----------------
                                                                                         240,000        $  314,030.54
Raymond Haskins                                      1/20/00        $1.0188                8,027        $    8,177.88
Apartment 2, 6th Floor                                2/9/00        $1.3156               31,079            40,889.39
177 Ho Ping East Road                                2/10/00        $1.3250               46,290            61,334.09
Taipei, TAIWAN                                       2/11/00        $1.4000               14,603            20,444.70
                                                                                 ---------------     ----------------
                                                                                         100,000        $  130,846.06
Andrew Fletcher                                      1/20/00        $1.0188                8,027        $    8,177.88
Apartment 1205                                        2/9/00        $1.3156               31,079            40,889.39
Peria Mansion                                        2/10/00        $1.3250               46,290            61,334.09
Carlos Palanca                                       2/11/00        $1.4000               14,603            20,444.70
                                                                                 ---------------     ----------------
Makati Metro Manilla                                                                     100,000        $  130,846.06
PHILIPPINES

Maria Lorna Navarro                                  1/20/00        $1.0188                8,253        $    8,407.76
72-19 Dembrobium Street                               2/9/00        $1.3156               31,953            42,038.79
Timog Park                                           2/10/00        $1.3250               47,591            63,058.19
Pampanga                                             2/11/00        $1.4000               15,014            21,019.40
                                                                                 ---------------     ----------------
PHILIPPINES                                                                              102,811        $  134,524.14
</TABLE>

                                       13

<PAGE>

                                  Schedule 3(a)

                   Subsidiaries of Dynatec International, Inc.

Nordic Technologies, Inc., a Utah corporation

Softalk, Inc., a Utah corporation

Softalk Communications, Inc., a Utah corporation

Arnco Marketing, Ltd., a California corporation

                                       14

<PAGE>

                                  Schedule 3(b)

                                 Capitalization

Shares outstanding as of 2/11/00                             3,721,418

Adjustments:
Convertible debenture shares                         94,500
Private placement shares                          1,222,811
                                               ------------
                                                  1,317,311

Total shares outstanding after adjustments                   5,038,729

Options:
1996 Fixd Options @$2.50                             77,000
1996 Variable Options @$2.00                        180,000
1996 Fixed Options @$1.46                           516,750
                                               ------------
                                                    773,750

Total potential shares outstanding                           5,812,479

                                       15

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