Document:

RESOURCE FINANCE & INVESTMENT LTD

______________________________________________________________________________

 

Mr. Phillip Garratt

PO Box 91729

West Vancouver

British Columbia

Canada

V7V 4S1

 

28th June, 2004

Dear Phillip,

 

Further to our meetings this week we are now pleased to offer you the position of Chief Executive Officer of Resource Finance & Investments Ltd "RFI" on the following terms and conditions.

 

	
            1)
 	
            RFI retains your services in the position of CEO for a fixed term of one year.
 

 

	
            2)
 	
            This agreement is effective from 17th May, 2004 in terms of remuneration in view of your time expended on negotiating the West Cadillac and immediately in the appointment as CEO.  Any renewable term thereafter shall be on the terms by mutual agreement between both parties.
 

 

	
            3)
 	
            Your primary duties would be to bring mineral transactions to the company to build the net worth and market capital values of RFI, while having overall executive responsibility for the development of projects owned or partially owned by RFI.
 

 

	
            4)
 	
            You will report directly to the Board of Directors and are required to get approval from Mr Brickell to enter into any agreements on behalf of the company
 

 

	
            5)
 	
            You will be paid a basic fee for the contract period of US$100,000.  This fee will be paid by twelve equal instalments monthly at the end of each calendar month providing adequate funds are available in RFI.  If in any month such funds are not available then you may opt to accrue the sum due until paid or to take RFI common stock at the market bid price at the due payment date.
 

 

	
            6)
 	
            You will be reimbursed all reasonable travel and accommodation expenses incurred in carrying out your duties which should be claimed from RFI on supported expense report each month.
 

 

	
            7)
 	
            You are granted a stock option on 1,500,000 common shares of RFI under the standard stock option scheme.  The option will be for a period of two years from the date of this agreement, however in the event you do not renew this or a similar agreement after twelve months or you cease the appointment before the expiry of the option term then any unexercised portion 30 days thereafter shall lapse.  The option price shall be determined by the market offered price on the announcement of this appointment.
 

 

_________________________________________________________________________________

RESOURCE FINANCE & INVESTMENT LTD

	
            Registered office:
 	
            Administrative office:
 	
             

	
            The Corner House, Parliament Street, Hamilton, Bermuda
 	
            c/o EuroHelvetia Trustco S.A.
 
	
            Mailing: P.O. Box 1027, Hamilton, HM DX, Bermuda
 	
            P.O. Box 691
 	
             

	
            Tel: (144) 1295 8455  Fax: (144) 1292 1373 / 295 6792
 	
            1215 Geneva 15, Switzerland
 	
             

					

  Tel (41) 22 7990800  Fax (41) 22 7990801

 

 

 

 

	
            8)
 	
            You acknowledge executing a standard confidentiality and non use agreement with RFI.
 

 

	
            9)
 	
            Although it is not intended that this contract is exclusive to your full time, you agree that you will not participate in any transaction, without prior written consent, during the course of this agreement, that is in the minerals field nor that might compete with the business objectives of RFI.
 

 

	
            10)
 	
            Confidentiality between the parties will be maintained at all times, however you acknowledge that RFI will be required to make a public shareholder release of this appointment.
 

 

	
            11)
 	
            A more comprehensive contract may be determined should either party require.
 

 

I trust this outlines the understanding between us.  If you are in full agreement, please sign and return to the undersigned the attached copy of this letter signifying your acceptance.

 

I look forward to a mutually rewarding relationship between you and the RFI Group.

 

Yours sincerely,

 

/s/ Michael J Brickell

 

Michael J. Brickell

President

 

 

I hereby confirm my agreement to the aforegoing terms and conditions.

 

 

	
            Signed
 	
            /s/  Phillip Garratt
 	
            Dated  June 28, 2004
 
	
             
	
            Phillip GarrattRESOURCE FINANCE & INVESTMENT LTD

 

June 3, 2004

 

Mr. Victor Erickson

Mr. Andre Audet

c/ 3741 West 36th Ave

Vancouver, Canada  V6N 2S3

 

Gentlemen:

 

RE:  CADILLAC WEST PROJECT

 

Whereas Andre Audet and Victor Erickson acting as a 50:50 unincorporated partnership, (herein referred to as "A&E") have staked 282 mineral claims comprising approximately 9450 hectares in Beauchastel and Dasserat Townships in the Province of Quebec (herein referred to as the "A&E Claims"), a compilation of which is attached hereto as Appendix "A", and have entered into a letter agreement dated 30 April 2004 with Richmont Mines Inc. ("Richmont") of Rouyn-Noranda, Quebec (The "Richmont Agreement") attached hereto as Appendix "B", in which A&E or its assignee has the right to earn a 50% interest via two separate options in 77 claims covering approximately 2185 hectares in Beauchastel and Dasserat Townships;

 

Resource Finance & Investment ("RFI") a Bermuda corporation, hereby offers to take assignment of the A&E Claims and the Richmont Agreement on the following terms:

 

	
            1)
 	
            RFI has incorporated a company in the Province of British Columbia as Cadillac West Explorations Inc. (herein referred to as "CWE").
 

 

	
            2)
 	
            A&E will within 15 business days of execution of this Agreement:
 

 

	
            i)
 	
            assign the A&E claims to CWE:
 

	
            ii)
 	
            obtain the approval of Richmont as required in the Richmont Agreement for assignment of the A&E interest; and
 

	
            (iii)
 	
            assign its interests in the Richmont Agreement to CWE.
 

 

	
            3)
 	
            A&E will be issued 3,000,000 common shares in the capital of CWE which shares will be released from escrow no later than June 1, 2006; and a further 1,000,000 common shares for each of the two property options contained in the Richmont Agreement, to be released from escrow to A&E or cancelled as the case may be, upon satisfaction or termination, respectively, of the said property options.
 

 

 

______________________________________________________________________________

RESOURCE FINANCE & INVESTMENT LTD

	
            Registered office:
 	
            Administrative office:
 	
             

	
            The Corner House, Parliament Street, Hamilton, Bermuda
 	
            c/o EuroHelvetia Trustco S.A.
 	
             

	
            Mailing: P.O. Box 1027, Hamilton, HM DX, Bermuda
 	
            P.O. Box 691
 	
             

	
            Tel: (144) 1295 8455  Fax: (144) 1292 1373 / 295 6792
 	
            1215 Geneva 15, Switzerland
 	
             

	
             
	
            Tel (41) 22 7990800  Fax (41) 22 7990801
 
						

 

 

 

 

	
            4)
 	
            RFI will fund CWE as to CA$1,000,000 by December 15, 2004 as to:
 

 

	
            i)
 	
            $310,000 by August 1, 2004 more or less according to the short-term budget attached hereto as Appendix "C", to meet Quebec Ministry of Natural Resources assessment work deadlines, including $27,000 in respect of the planned geophysical survey upon execution of this Agreement; and
 
	
            ii)
 	
            upon satisfaction of i) above, and additional $540,000 no later than October 15, 2004, of which amount $500,000 will be segregated to meet the Minimum Expenditure requirements of the Richmont Agreement.
 

 

	
            5)
 	
            Any funds advanced by RFI pursuant to item 4) above shall be secured by a note, which shall be convertible on or before December 31, 2004 into common shares of CWE at the rate of 10 shares for each dollar advanced.  Upon conversion of the full $1,000,000 of advances, RFI shall be granted 2,000,000 share purchase options or warrants exercisable until November 30, 2008 at $0.25 per CWE common share.  Appendix "D" attached hereto describes the projected capital structure of CWE in which RFI and A&E will hold 70.59% and 29.41% equity interests respectively, upon RFI funding the full $1,000,000, and exercising all the 2,000,000 warrants.  Other than as described above, the common shares issued to RFI and A&E shall carry no special rights, and any subsequent third party equity financing shall dilute the parties' holdings equally and proportionately.
 

 

	
            6)
 	
            A&E will manage and direct the project, and report to the board of directors of CWE.  The board will be comprised of nominees to be agreed; however RFI shall have control of the board upon payment of the first $310,000 as detailed in Clause 4 i).  Reasonable terms of a management agreement will be mutually agreed between the parties.
 

 

	
            7)
 	
            A&E will retain a royalty (the "Royalty") on production from any of the A&E Claims or the properties covered by the Richmont Agreement or on any property subsequently acquired within 3 km of the land position (the "Area of Interest") in which it holds an interest as of the date of this Agreement, on the following terms:
 

 

	
            i)
 	
            the Royalty shall be 1.5% of net smelter return ("NSR"), as commonly defined in the industry;
 
	
            ii)
 	
            the Royalty shall be applicable to NSR attributable to CWE, as affected particularly by CWE farm-ins, but shall be not diminished by farm-outs of CWE interests;
 
	
            iii)
 	
            the Royalty shall not be applicable to the first 100,000 oz gold produced from any given deposit; and
 
	
            iv)
 	
            the Royalty shall apply to production from properties acquired from arms-length parties only to the extent the aggregate royalty due to that party and A&E is no more than 3% of NSR.
 

 

	
            8)
 	
            Information concerning, and matters arising from this Agreement shall be treated as confidential by the parties hereto and shall not, without the prior consent of the other party (not to be unreasonably withheld) be disclosed to third parties, except to the extent that such disclosure may be necessary to meet the requirements of regulatory authorities.
 

 

	
            9)
 	
            The parties hereto agree to carry out diligently and immediately all contractual, administrative and funding requirements to complete this transaction, in view of the urgency of the current circumstances.
 

 

 

 

 

	
            10)
 	
            This Agreement shall be governed and interpreted in accordance with the laws of the Province of British Columbia.
 

 

This letter sets forth the understanding and agreement between Resource Finance & Investment Ltd., and Andre Audet and Victor Erickson with respect to the subject matter hereof.  If this understanding is acceptable, please execute below and return a copy, whereupon the foregoing shall become an effective and binding agreement between us.

 

Yours truly,

 

RESOURCE FINANCE & INVESTMENT LIMITED

 

 

/s/ Michael Brickell

 

 

Michael Brickell,

Director

 

 

Confirmed and Agreed to this 3rd day of June, 2004.

 

 

	
            /s/ Victor Erickson
 

Victor Erickson

 

 

	
            /s/ Andre Audet
 

Andre Audet

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