Document:

Del Toro Silver Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

ASSET SALE AGREEMENT

     This asset sale agreement
(“Agreement”) is entered into effective November 14, 2011 (“Effective
Date”) in Carson City, Nevada by and between BOWERMAN HOLDINGS, LLC, a
California domestic limited liability company (“Seller”), and DEL TORO
SILVER CORP., a Nevada domestic corporation (“Buyer”). Seller and Buyer
are the only parties to this Agreement and are at times referred to herein
singly as a “Party” and collectively as the “Parties.”

     In consideration of the mutual
covenants, agreements and promises of the Parties, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties, each intending to be legally bound, hereby covenant and agree as
follows:

	1. 	
      DEFINITIONS

     1.1 “Acquired
Assets” means sixty percent (60%) of one hundred percent (100%) of Seller’s
right, title and interest in and to: the thirty one (31) KM mining claims
(California Mining Claim Numbers 281855 through 281885) and seventeen (17)
Raddlefinger mining claims (California Mining Claim Numbers 279802 through
279818) in Siskiyou County, California that are on and under Assessor’s Parcel
Numbers 860-001-509-00 and 860-001-410-000, respectively and collectively, and
all appurtenances and rights-of-way appertaining thereto (“Claims”); any
and all existing claims, deposits, prepayments, refunds, causes of action,
rights of recovery, rights of set off, and rights of recoupment concerning the
Claims; and any and all approvals, permits, licenses, orders, registrations,
certificates, variances, and similar rights obtained from governments and
governmental agencies regarding the Claims; but excluding any and every bond
posted by any third party optionee or licensee of Seller or any of Seller’s
predecessors in interest.

     1.2 “Employee Benefit
Plan” means any “employee benefit plan”, as defined in the Employee
Retirement Income Security Act of 1974, as amended, and any other material
employee benefit plan, program or arrangement of any kind.

     1.3 “Environmental,
Health, and Safety Requirements” means all federal, state, local and foreign
statutes, regulations, ordinances and other provisions having the force or
effect of law, all judicial and administrative orders and determinations, all
contractual obligations and all common law concerning public health and safety,
worker health and safety, and pollution or protection of the environment,
including those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, or cleanup of any
hazardous materials, substances or wastes, chemical substances or mixtures,
pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
byproducts, asbestos, noise or radiation, each as amended and as now or
hereafter in effect.

     1.4 “Person” means
an individual, a partnership, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or a
governmental entity (or any department, agency, or political subdivision
thereof).

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     1.5 “Security
Interest” means any mortgage, pledge, lien, encumbrance, charge, or other
security interest, other than: mechanic’s, materialmen’s, and similar liens;
liens for Taxes not yet due and payable or for Taxes that the taxpayer is
contesting in good faith through appropriate proceedings; purchase money liens
and liens securing rental payments under capital lease arrangements; and other
liens arising in the ordinary course of business and not incurred in connection
with the borrowing of money.

     1.6 “Tax(es)” means
any federal, state, local, or foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental (including taxes under Section 59A of the Internal Revenue Code of
1986, as amended), capital stock, franchise, profits, withholding, social
security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax or custom duty of any kind whatsoever,
including any interest, penalty, or addition thereto, whether disputed or
not.

	2. 	
      Basic Transaction

     2.1 Sale of Assets. On and
subject to this Agreement’s terms and conditions, Buyer shall at Closing
purchase and receive from Seller, and Seller shall at Closing sell, transfer,
convey, and deliver to Buyer via the quitclaim deed attached hereto as
Exhibit A (“Deed”), all of the Acquired Assets for the
consideration specified below.

     2.2 Assumption of
Liabilities. Except as may be otherwise expressly provided for herein, Buyer
shall not by Closing assume or have any responsibility for any obligation or
liability of Seller.

     2.3 Consideration. Subject
to this Agreement’s terms and conditions, and as consideration for the Acquired
Assets, Buyer shall at Closing pay Seller Six Million Five Hundred Twenty Five
Thousand Dollars and 00/100 ($6,525,000.00) (“Purchase Price”) as
follows:

          2.3.1
Monetary Consideration. Within thirty (30) calendar days from the
Effective Date, Buyer shall pay to Seller a Twenty Five Thousand Dollar
($25,000.00) non-refundable down payment to secure exclusivity that prevents
Seller from selling any or all of the Acquired Assets to any third party prior
to the Closing Date. An additional Four Million Five Hundred Thousand Dollars
and 00/100 ($4,500,000.00) of the Purchase Price shall be paid byand through the
execution and delivery at Closing of the promissory note attached hereto as
Exhibit B (“Note”) and the first position deed of trust attached
hereto as Exhibit C (“Deed of Trust”), which secures Buyer’s full
repayment of the amount due under the Note; and

          2.3.2
Stock Consideration. Two Million Dollars and 00/100 ($2,000,000) of the
Purchase Price shall be paid by and through the delivery at Closing of forty
million (40,000,000) shares of common stock in Buyer (priced for the Parties’
accounting purposes at five cents (5¢) per share) (“Shares”). The Shares
shall be issued to Seller and those Seller Assignees (as defined below) that are
identified by Seller prior to Closing in the to-be-ascribed share counts. Each
of the so-named Persons, other than Trinity Alps Resources, Inc., are
herein referred to singly as a “Seller Assignee” and collectively as
“Seller Assignees”.

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     2.4 Resale Restriction on
Share. Seller acknowledges that, under applicable law and absent
registration, the Shares may not be resold by any Seller Assignee for one year
from the date that the Company files “Form 10” information with the Securities
and Exchange Commission in regards to the Acquired Assets and the Buyer’s
business and operations commencing following the Closing.

     2.5 Registration of a Portion
of the Shares. Within one hundred sixty (160) business days from Closing,
Buyer shall register no less than four million (4,000,000) of the Shares (which
4,000,000 Shares are herein referred to as the “To-be-registered Shares”)
- such that the To-be-registered Shares thereby become unrestricted and
free-trading. The Parties acknowledge that registration of the To-be-registered
Shares may or may not be permitted by the United States Securities and Exchange
Commission (“SEC”). Nevertheless, Buyer promises to good faith exercise
its best efforts to register the To-be-registered Shares within the agreed-upon
160-day period. If for any reason Buyer fails to obtain registration of the
To-be-registered Shares, in lieu thereof Seller agrees to accept, and Buyer
agrees to immediately pay to Seller, Ten Thousand Dollars and 00/100
($10,000.00) (“In-lieu Payment”).

     2.6 Closing. So long as
all of the conditions to the obligations of both Parties to consummate the
transaction contemplated herein (“Closing”) have been satisfied or waived
(other than conditions with respect to actions the respective Parties will
undertake at Closing), Closing shall take place at the office of Seller’s
counsel, Rutledge Law Center Ltd., 320 North Carson Street, Carson City, Nevada
89701, commencing at 9:00 a.m. local time on or about ninety (90) calendar days
from the Effective Date or such other date as the Parties may mutually determine
(“Closing Date”). So long as Buyer is not then in default hereunder,
Buyer may, in its sole discretion, extend the Closing Date for as many as three
(3) additional 90-day periods.

     2.7 Deliveries at Closing.
At Closing: Seller will deliver to Buyer the various instruments and documents
required herein from Seller; Buyer will deliver to Seller the various
instruments and documents required herein from Buyer; Buyer will execute,
acknowledge (as appropriate), and deliver to Seller the Note and Deed of Trust
attached hereto as Exhibit B and Exhibit C, respectively, as well
as such other instruments of sale, transfer, conveyance, encumbrance, security,
and assignment as Seller may reasonably request; and Buyer will deliver to
Seller the Shares.

3. Site Work Commitment; Carried Interest. Within thirty
six (36) months from Closing, Buyer shall spend at least One Million Five
Hundred Thousand Dollars ($1,500,000) to further explore, develop and/or operate
or otherwise exploit the Claims (“Buyer’s Work Commitment”). Buyer shall
consult in advance with Seller with regard to all expenditures under Buyer’s
Work Commitment of more than Fifty Thousand Dollars and 00/100 ($50,000.00) .
None of Buyer’s Work Committment shall be satisfied by Buyer’s delivery or
registration of the Shares, or by payment of any or all of the Note’s balance
and/or the In-lieu Payment. As shall be further detailed in the JO Agreement (as
defined below), until such time as Buyer’s Work Commitment has been fully expended, Seller’s proportionate share of operating costs under
the JO and Joint Operations Agreement (as defined below), including maintenance,
repair, servicing, supplying and insuring the Equipment & Improvements (as
defined below), shall be entirely paid by Buyer as part of Buyer’s Work
Commitment.

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4. Additional Interest Purchase Option. If and when: the
Note is timely and completely paid; the To-be-registered Shares are timely
delivered to Seller and either timely registered OR the In-lieu Payment is
timely and completely made to Seller; and Buyer’s Work Commitment is
timely and completely fulfilled, Buyer has the irrevocable and exclusive option
for forty-eight (48) months from Closing to purchase, for Three Hundred Thousand
Dollars and 00/100 ($300,000.00) per percentage point, up to an additional
fifteen percent (15%) interest in the assets of which the Acquired Assets
comprise sixty percent (60%).

	5. 	
      Equipment & Improvements Use License & Buyout
      Option.

     5.1 License. Seller’s
parent company, Trinity Alps Resources, Inc. has caused one of its wholly owned
subsidiaries to conditionally license (“License”) to the partnership
(“JO”) established by the conditional mining claims joint operations
agreement also executed by the Parties on the Effective Date (“Joint
Operations Agreement”) the use of all equipment, improvements and other
items of personal property and improvements overlying the Claims on the
Effective Date and registered with Siskiyou County as the personal property of
Gold Run Enterprises, LLC (all of which Buyer hereby acknowledges reviewing and
approving for adequacy and satisfactory operational condition) (“Equipment
& Improvements”) in return for Buyer’s payment to Seller of One Hundred
Thousand Dollars and 00/100 ($100,000.00) per year (as to the $100,000.00 due
for each such year, the “License Fee”). At Buyer’s election and sole
determination, Buyer may pay each License Fee as follows: 1) in cash; 2) in
stock in Buyer at a twenty percent (20%) discount to the closing price on either
the last day such License Fee could have been timely paid or such other date as
the Parties may hereafter agree in a signed writing; or 3) credit toward
Seller’s financial obligation to pay its pro rata interest for work
performed under the Joint Operations Agreement (such obligation not accruing, of
course, until Buyer’s Work Comittiment has been fully expended). As is detailed
in the aforementioned Joint Operations Agreement, the JO is charged with
maintaining, repairing, servicing, supplying, insuring and otherwise keeping in
good condition through due care all of the Equipment & Improvements for so
long as the License remains effective.

     5.2 Buyout. If, five (5)
years from Closing, each year’s License Fee has been paid, Buyer may for five
hundred thousand dollars ($500,000) purchase all or any part of (at Buyer’s
election) the Equipment & Improvements. Additionally, Buyer may, during said
5-year period, for nine hundred thousand dollars ($900,000) purchase all or any
part of the Equipment & Improvements. Such $500,000 or $900,000 payment may
be made in any manner Buyer may have permissibly paid the License Fee.

6. Representations and Warranties of Seller. Seller
represents and warrants to Buyer that the statements contained in this Section 6
are correct and complete on the Effective Date and will be correct and complete
on the Closing Date (as though made then and as if the Closing Date were
substituted for the Effective Date throughout this Section 6).

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     6.1 Organization of
Seller. The Acquired Assets are owned by Seller as a California domestic
limited liability company in good standing.

     6.2 Authorization of
Transaction. Seller has full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement constitutes
the valid and legally binding obligation of Seller, enforceable against Seller
in accordance with its terms and conditions.

     6.3 Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation
of the transaction contemplated herein, will: violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which Seller is
subject, or any provision of Seller’s organizational documents; conflict with,
result in a breach of, constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify, or cancel,
or require any notice under any agreement, contract, lease, license, instrument,
or other arrangement to which Seller is a party or by which it is bound or to
which any of its assets are subject; or result in the imposition of any Security
Interest upon any of its assets.

     6.4 Brokers’ Fees. Seller
has no liability or obligation to pay any fee or commission to any broker,
finder, or agent with respect to the transaction contemplated herein and for
which Buyer could become liable or obligated.

     6.5 Title to Assets.
Seller has good and marketable title to all of the Acquired Assets, free and
clear of any Security Interest or restriction on transfer not disclosed to Buyer
prior to Closing and/or herein.

     6.6 Buyer’s Due Diligence.
Buyer shall conduct all due diligence that it deems necessary and appropriate,
and shall not proceed to Closing unless entirely satisfied with the results of
said due diligence review. Accordingly, in no event shall Seller be liable to
Buyer for failing to disclose any fact, circumstance or surrounding, whether
existing or prospective, with regard to the Acquired Assets.

     6.7 Legal Compliance.
Except as shall be expressly disclosed to Buyer prior to Closing, Seller has
complied with all applicable laws (including rules, regulations, codes, plans,
injunctions, judgments, orders, decrees, rulings, and charges thereunder) of
federal, state, local, and foreign governments (and all agencies thereof), and
no action, suit, proceeding, hearing, investigation, charge, complaint, claim,
demand, or notice is currently pending against Seller alleging any failure by
Seller to so comply.

     6.8 Powers of Attorney.
There are no outstanding powers of attorney that concern the Acquired
Assets.

     6.9 Litigation. Except as
has been expressly disclosed to Buyer prior to Closing, and except as may be
satisfied with proceeds received by Seller from Closing, neither Seller nor the

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Acquired Assets is subject to any outstanding injunction,
judgment, order, decree, ruling, or charge, nor is a party (or is threatened to
be made a party) to any action, suit, proceeding, hearing, or investigation of,
in, or before any court or quasi-judicial or administrative agency of any
federal, state, local, or foreign jurisdiction, or before any arbitrator.

     6.10 Guaranties. Except as
may be disclosed to Buyer prior to Closing, Seller is not a guarantor or
otherwise liable for any liability or obligation (including indebtedness) of any
other Person.

     6.11 Environmental, Health,
and Safety Matters. Seller is in compliance with all applicable
Environmental, Health, and Safety Requirements. Except to the extent otherwise
disclosed to Buyer prior to Closing, no facts, events or conditions relating to
the operations of Seller will prevent, hinder or limit continued compliance with
Environmental, Health, and Safety Requirements, give rise to any investigatory,
remedial or corrective obligations pursuant to Environmental, Health, and Safety
Requirements, or bring about any other liability pursuant to Environmental,
Health, and Safety Requirements.

     6.12 Disclosure. The
representations and warranties contained in this Section 6 do not contain any
intentionally untrue statement of a material fact or omit to state any material
fact necessary in order to make such statements and information not
misleading.

     6.13 Investment. Seller
understands that, other than the To-be-registered Shares, the Buyer does not
intend to register the Shares under the Securities Act of 1933, as amended, or
under any state securities law, and the Shares are therefore being offered and
sold in reliance upon federal and state exemptions for transactions not
involving any public offering; and that the Seller Assignees are acquiring the
Shares solely for their own respective accounts for investment purposes (and not
with a view to the distribution thereof to any Person); is an accredited
investor with knowledge and experience in business and financial matters; has
received certain information concerning Buyer and has had the opportunity to
obtain sundry additional information as Seller and the Seller Assignees,
collectively, deem necessary to evaluate the merits and the risks inherent in
holding the Shares; and that each of the Seller Assignees is able to bear the
economic risk and lack of liquidity inherent in holding the Shares.

7. Representations and Warranties of Buyer. Buyer
represents and warrants to Seller that the statements contained in this Section
7 are correct and complete as of the Effective Date and will be correct and
complete as of the Closing Date (as though made then and as if the Closing Date
were substituted for the Effective Date throughout this Section 7).

     7.1 Organization of Buyer.
Buyer is a Nevada domestic corporation.

     7.2 Authorization of
Transaction. Buyer has full power and authority (including full corporate
power and authority) to execute and deliver this Agreement and to perform its
obligations hereunder. This Agreement constitutes the valid and legally binding
obligation of Buyer, enforceable in accordance with its terms and
conditions.

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     7.3 Non-contravention.
Neither the execution nor the delivery of this Agreement, nor the consummation
of the transactions contemplated herein, will violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which Buyer is
subject, or conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice under any agreement,
contract, lease, license, instrument, or other arrangement to which Buyer is a
party or by which Buyer is bound or to which any of its assets is subject. Buyer
must give any and every required notice hereof to, make any and every required
filing with, and/or otherwise obtain the authorization, consent, or approval of
any and every required governmental agency and/or department promptly after
Closing.

     7.4 Brokers’ Fees. Buyer
has no liability or obligation to pay any fee or commission to any broker,
finder, or agent with respect to the transaction contemplated herein and for
which Seller could become liable or obligated.

8. PRE-CLOSING COVENANTS. The Parties agree as follows
with respect to the period between the Effective Date and Closing.

     8.1 General. Each of the
Parties will use its best efforts to take any and all action and to do all
things necessary, proper, or advisable to consummate and make effective the
transactions contemplated herein.

     8.2 Notices and Consents.
Seller will give any and every notice required by any third party, and Seller
will use Seller’s best efforts to obtain every third party consent that Buyer
reasonably may request.

     8.3 Full Access. Seller
will permit representatives of Buyer to have full access at all reasonable
times, and in a manner so as not to interfere with the normal business
operations of Seller, to all premises, properties, personnel, books, records
(including Tax records), contracts, and documents of or pertaining to
Seller.

     8.4 Notice of
Developments. Each Party will give prompt written notice to the other Party
of any material adverse development causing a breach of any of its own
representations and warranties herein. No disclosure by any Party pursuant to
this Section 8.4, however, shall be deemed to prevent or cure any
misrepresentation, breach of warranty, or breach of covenant.

	9. 	
      CONDITIONS TO OBLIGATION TO
CLOSE

     9.1 Conditions to Obligation
of Buyer. The obligation of Buyer to consummate the transactions to be
performed by it in connection with Closing is subject to satisfaction of the
following conditions:

          9.1.1
Seller’s representations and warranties herein are true and correct in all
material respects at and as of Closing Date;

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          9.1.2
through Closing, Seller shall have performed and complied with all of its
covenants hereunder in all material respects;

          9.1.3
no action, suit, or proceeding shall be pending against Buyer before any
court or quasi-judicial or administrative agency of any federal, state, local,
or foreign jurisdiction or before any arbitrator wherein an unfavorable
injunction, judgment, order, decree, ruling, or charge would (A) prevent
consummation of any of the transactions contemplated by this Agreement, (B)
cause any of the transactions contemplated by this Agreement to be rescinded
following consummation, (C) affect adversely the right of Buyer to own and
operate the Acquired Assets, or (D) affect adversely the right of Seller to own
the Acquired Assets (and no such injunction, judgment, order, decree, ruling, or
charge shall be in effect);

          9.1.4
after Closing, Buyer shall promptly seek to obtain all other authorizations,
consents, and approvals of the governments and governmental agencies referred to
herein;

          9.1.5
any audit of Seller that is required by the SEC shall have been completed
and and approved by Buyer in its sole but reasonable discretion; 

          9.1.6
Buyer’s sole and arbitrary review and approval of all information and
records of Seller, whether or not related to the Claims, that Buyer deems
appropriate for due diligence review; and

          9.1.7
all actions to be taken by Seller in connection with consummation of the
transactions contemplated herein, and all certificates, opinions, instruments,
and other documents required to effect such transactions, will be reasonably
satisfactory in form and substance to Buyer.

Buyer may waive any condition specified in this Section 9.1 if
it executes a writing so stating at or prior to Closing.

     9.2 Conditions to Obligation
of Seller. The obligation of Seller to consummate the transactions to be
performed by it in connection with Closing is subject to satisfaction of the
following conditions:

          9.2.1
Buyer’s representations and warranties set forth herein shall be true and
correct in all material respects at and as of Closing Date;

          9.2.2
through Closing, Buyer shall have performed and complied with all of its
covenants hereunder in all material respects;

          9.2.3
no action, suit, or proceeding against Seller shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal,
state, local, or foreign jurisdiction or before any arbitrator wherein an
unfavorable injunction, judgment, order, decree, ruling, or charge would (A)
prevent consummation of any of the transactions contemplated by this Agreement
or (B) cause any of the transactions contemplated by this Agreement to be
rescinded following consummation (and no such injunction, judgment, order,
decree, ruling, or charge shall be 

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in effect);

          9.2.4
after Closing, Seller shall promptly seek to obtain all other necessary
authorizations, consents, and approvals of governments and governmental agencies
referred to herein;

          9.2.5
all actions to be taken by Buyer in connection with consummation of the
transactions contemplated hereby and all certificates, opinions, instruments,
and other documents required to effect the transactions contemplated hereby will
be reasonably satisfactory in form and substance to Seller.

Seller may waive any condition specified in this Section 9.2 if
it executes a writing so stating at or prior to Closing.

	10. 	
      TERMINATION

     10.1 Termination of Agreement.
This Agreement may be terminated as provided below:

      
   10.1.1 Buyer and Seller may terminate this Agreement by
mutual written consent at any time prior to Closing;

      
   10.1.2 Buyer may terminate this Agreement by giving
written notice to Seller on or before the thirtieth (30th) calendar
day following the Effective Date if Buyer is not entirely satisfied with the
results of its continuing business, legal, and accounting due diligence
regarding Seller;

     
    10.1.3 Buyer may terminate this Agreement by
giving written notice to Seller at any time prior to Closing if Seller has
breached any material representation, warranty, or covenant contained in this
Agreement, Buyer has notified Seller of the breach, and the breach has continued
without cure for a period of ten (10) days after the notice of breach, or
Closing fails to timely occur by reason of the failure of any condition
precedent under Section 9.1 hereof (unless the failure results primarily from
Buyer itself breaching any representation, warranty, or covenant contained in
this Agreement); and

        
 10.1.4 Seller may terminate this Agreement by giving written notice
to Buyer at any time prior to Closing if Buyer has breached any material
representation, warranty, or covenant contained in this Agreement, Seller has
notified Buyer of the breach, and the breach has continued without cure for a
period of ten (10) calendar days after the notice of breach, or if Closing fails
to timely occur by reason of the failure of any condition precedent under
Section 9.2 hereof (unless the failure results primarily from Seller itself
breaching any representation, warranty, or covenant contained in this
Agreement).

     10.2 Effect of
Termination. If either Party terminates this Agreement pursuant to Section
10.1 above, all rights and obligations of the Parties hereunder shall terminate
without any liability of either Party to the other Party (except for any
liability of a Party then in breach).

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	11. 	
      INDEMNIFICATION

     11.1 Indemnification
Provisions for Benefit of Buyer. If Seller breaches any of its
representations, warranties, and covenants contained in this Agreement and/or
any third-party claim is made against Buyer that arises from any act or omission
relating to Seller’s operation of the Acquired Assets, then Seller shall
indemnify Buyer, its respective directors, officers, shareholders, agents,
attorneys and employees (each, a “Buyer Indemnified Party”) from and
against any claim, liability, obligation, loss, damage, assessment, judgment,
cost or expense (including, reasonable attorneys’ fees and costs and expenses
reasonably incurred in investigating, preparing, defending against or
prosecuting any litigation or claim), action, suit, proceeding or demand, of any
kind or character (“Adverse Consequences”) a Buyer Indemnified Party
shall suffer through and after the date of the claim for indemnification caused
by such breach or act or omission.

     11.2 Indemnification Provisions for
Benefit of Seller

       
  11.2.1 If Buyer breaches any of its representations,
warranties, and covenants contained in this Agreement and/or any third party
claim is made against Seller that arises from any act or omission relating to
Buyer’s operation of the Acquired Assets after Closing, including any trademark
infringement claims, then Buyer agrees to indemnify Seller, its directors,
officers, shareholders, agents, attorneys and employees (each, a “Seller
Indemnified Party”) from and against the entirety of any Adverse
Consequences a Seller Indemnified Party shall suffer through and after the date
of the claim for indemnification caused by such breach or act or omission.

      
   11.2.2 Additionally, Buyer shall indemnify each Seller
Indemnified Party from and against the entirety of any Adverse Consequences that
such Seller Indemnified Party suffers as a result of Buyer’s operation of any
Acquired Asset after Closing.

     11.3 Matters Involving Third
Parties

        
 11.3.1 If any third party notifies either Party (“Indemnified
Party”) with respect to any matter (“Third Party Claim”) which may
give rise to a claim for indemnification against any other Party
(“Indemnifying Party”) under this Section 11, then the Indemnified Party
shall promptly (and in any event within seven (7) business days after receiving
notice of the Third Party Claim) notify the Indemnifying Party thereof in
writing.

     
    11.3.2 The Indemnifying Party will have the right
at any time to assume and thereafter conduct the defense of the Third Party
Claim with counsel of its choice reasonably satisfactory to the Indemnified
Party; provided, however, that the Indemnifying Party will not consent to the
entry of any judgment or enter into any settlement with respect to the Third
Party Claim without the prior written consent of the Indemnified Party (not to
be unreasonably withheld) unless the judgment or proposed settlement involves
only the payment of money damages without any admission of liability and does
not impose an injunction or other equitable relief upon the Indemnified
Party.

         
11.3.3 Unless and until an Indemnifying Party assumes the defense of the
Third Party 

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Claim as provided for in Section 11.3.2 above, the Indemnified
Party may defend against the Third Party Claim in any manner it deems reasonably
appropriate.

      
   11.3.4 In no event will the Indemnified Party consent
to the entry of any judgment or enter into any settlement with respect to the
Third Party Claim without the prior written consent of the Indemnifying Party
(not to be unreasonably withheld).

	12. 	
      MISCELLANEOUS

     12.1 Survival of
Representations and Warranties. All of the representations and warranties of
the Parties contained herein shall survive Closing as and to the extent such
representations and warranties may reasonably be construed to survive
Closing.

     12.2 Press Releases and Public
Announcements. No Party shall issue any press release or make any public
announcement relating to the subject matter of this Agreement prior to Closing
without the other Party’s prior approval; provided, however, that either Party
may make any public disclosure it believes in good faith is required by
applicable law (in which case the disclosing Party will inform the other Party
prior to making the disclosure).

     12.3 No Third-Party
Beneficiaries. This Agreement shall not confer any rights or remedies upon
any Person other than the Parties and their respective successors and permitted
assigns.

     12.4 Entire Agreement.
This Agreement (including the documents referred to herein) constitutes the
Parties’ entire agreement and supersedes any prior understandings, agreements or
representations by or between the Parties, written or oral, to the extent they
relate in any way to the subject matter hereof.

     12.5 Succession and
Assignment. This Agreement binds and inures to the benefit of the Parties
named herein and their respective successors and permitted assigns. No Party may
assign this Agreement or any of its rights, interests, or obligations hereunder
without the other Party’s prior written approval; provided, however, that Buyer
may (i) assign any or all of its rights and interests hereunder to one or more
of its affiliates and (ii) designate one or more of its affiliates to perform
its obligations hereunder (in any or all of which cases Buyer nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

     12.6 Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

     12.7 Headings. The section
headings contained herein are inserted for convenience only and do not affect in
any way the meaning or interpretation of this Agreement.

     12.8 Notices. All notices,
requests, demands, claims, and other communications hereunder shall be in
writing. Any notice, request, demand, claim, or other communication hereunder
shall be 

- 11 -

deemed duly given if (and then two business days after) it is
sent by certified mail, return receipt requested, postage prepaid, and addressed
to the intended recipient as set forth below:

	 	If to Seller: 
	 	  
	 	         Patrick A.
      Fagen, President 
	 	         Trinity Alps
      Resources, Inc., Manager 
	 	         Bowerman
      Holdings, LLC 
	 	         Post Office
      Box 16187 
	 	         South Lake
      Tahoe, CA 96151 
	 	  
	 	If to Buyer: 
	 	  
	 	         Greg Painter,
      President 
	 	         Del Toro
      Silver Corp. 
	 	         2436 Jacks
      Valley Road 
	 	         P.O. Box 37
    
	 	         Genoa, Nevada
      89411 

     Either Party may send any notice,
request, demand, claim, or other communication hereunder to the intended
recipient at the address set forth above using any other means (including
personal delivery, expedited courier, messenger service, facsimile, ordinary
mail, or electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the intended recipient. Either Party may change the
address to which notices, requests, demands and other communications hereunder
are to be delivered by giving the other Party notice in the manner herein set
forth.

     12.9 Governing Law. This
Agreement shall be governed by and construed in accordance with the domestic
laws of the State of Nevada without giving effect to any choice or conflict of
law provision or rule (whether of the State of Nevada or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of Nevada.

     12.10 Amendments and
Waivers. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by Buyer and Seller. No waiver by
any Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

     12.11 Severability. Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

     12.12 Expenses. Each of Buyer
and Seller will bear its own costs and expenses (including 

- 12 -

legal fees and expenses) incurred in connection with this
Agreement and the transactions contemplated hereby.

     12.13 Construction. The
Parties have participated jointly in the negotiation and drafting of this
Agreement. If an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties and no
presumption or burden of proof shall arise favoring or disfavoring any Party by
virtue of the authorship of any of the provisions of this Agreement. Any
reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise. The word “including” shall mean “including but
not limited to.” Without limiting the generality of the foregoing, the mere
listing (or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein
(unless the representation or warranty has to do with the existence of the
document or other item itself). The Parties intend that each representation,
warranty, and covenant contained herein shall have independent significance. If
any Party has breached any representation, warranty, or covenant contained
herein in any respect, the fact that there exists another representation,
warranty, or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which the Party has not breached shall not
detract from or mitigate the fact that the Party is in breach of the first
representation, warranty, or covenant.

     12.14 Incorporation of
Exhibits and Schedules. The exhibits and schedules identified in this
Agreement are incorporated herein by reference and are hereby made a part
hereof.

     12.15 Specific
Performance. Each of the Parties acknowledge that the other Party would be
damaged irreparably if any of this Agreement’s provisions are not performed in
accordance with its specific terms or otherwise are breached. Accordingly, each
of the Parties agrees that the other Party shall be entitled to an injunction or
injunctions to prevent breach of this Agreement’s provisions and to enforce
specifically this Agreement and the terms and provisions hereof in any action
instituted in a court of the United States or any state thereof having
jurisdiction over the Parties and the matter, in addition to any other remedy to
which it may be entitled, at law or in equity.

     12.16 Submission to
Jurisdiction. Each of the Parties submits to the jurisdiction of the state
court sitting in Carson City, Nevada in any action or proceeding arising out of
or relating to this Agreement and agrees that all claims in respect of the
action or proceeding may be heard and determined in such court. Each Party also
agrees not to bring any action or proceeding arising out of or relating to this
Agreement in any other court. Each of the Parties waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought and
waives any bond, surety, or other security that might be required of any other
Party with respect thereto. Any Party may serve the other Party by sending or
delivering a copy of the process to the Party to be served at the applicable
address set forth in Section 12.8 above. Each Party agrees that a final judgment
in any action or proceeding so brought shall be conclusive and may be enforced
by suit on the judgment or in any other manner provided by law or in equity.

     12.17 Bulk Transfer Laws. Buyer
acknowledges that Seller will not comply with the 

- 13 -

provisions of any bulk transfer laws of any jurisdiction in
connection with the transactions contemplated herein.

     12.18 INDEPENDENT
INVESTIGATION. THIS AGREEMENT HAS BEEN
PREPARED BY COUNSEL TO SELLER SOLELY FOR
SELLER’S BENEFIT. WHILE BUYER CONTEMPLATES
RETAINING THAT SAME LAW FIRM (NAMELY,RUTLEDGE LAW CENTER LTD.)TO PROVIDE LEGAL
COUNSEL TO BUYER POST-CLOSING, BUYER HEREBY ACKNOWLEDGES THAT SAID FIRM IS NOT
REPRESENTING BUYER WITH REGARD TO THE TRANSACTION MEMORIALIZED HEREIN. FOR THE
AVOIDANCE OF DOUBT, BUYER HEREBY EXPRESSLY WAIVES AND CONSENTS TO ANY CONFLICT
THAT MIGHT EXIST BY VIRTUE OF RUTLEDGE LAW CENTER LTD.’S SOLE REPRESENTATION OF
SELLER WITH REGARD TO THE UNDERLYING TRANSACTION. WITH THE FOREGOING IN MIND,
EACH PARTY HAS: INDEPENDENTLY EVALUATED THE DESIRABILITY OF ENTERING INTO THIS
AGREEMENT AND IS NOT RELYING ON ANY REPRESENTATION, GUARANTEE OR STATEMENT NOT
SET FORTH HEREIN; AND HAS BEEN AFFORDED THE OPPORTUNITY TO SEEK LEGAL COUNSEL
WITH REGARD TO ITS RIGHTS AND OBLIGATIONS AND HAS CONSULTED OR REFUSED SUCH
COUNSEL, AND ACCORDINGLY NEGOTIATED THIS AGREEMENT.

     12.19 Execution. The
Parties have each executed this Agreement by duly authorized representative and
each acknowledges that it understands and agrees to be bound by it.

	DEL TORO SILVER CORP. 	 	BOWERMAN HOLDINGS, LLC 
	A Nevada Domestic Corporation 	 	A California Domestic Limited Liability Company
    
	  	 	  
	  	 	  
	/s/Gregory
      Painter 	 	/s/Patrick A. Fagen 
	By: Gregory Painter, President 	 	By: Trinity Alps Resources, Inc. 
	  	 	Its: Manager 
	  	 	       By: Patrick A. Fagen
    
	  	 	       Its: President
  

	ACKNOWLEDGED AND ACCEPTED: 	 
	  	 
	TRINITY ALPS RESOURCES, INC. 	 
	  	 
	/s/Patrick A.
      Fagen 	 
	By: Patrick A. Fagen 	 
	Its: President 	 

- 14 -

Exhibit A

APNs: 860-001-509-00 and 860-001-410-000

WHEN RECORDED MAIL TO and
MAIL PROPERTY TAX STATEMENTS
TO:

Del Toro Silver Corp. 
P.O. Box 37 
Genoa, Nevada 89411

Attention: Greg Painter, President

The undersigned hereby affirms that this document submitted

for recording does not contain the social security number of 
any person
or persons.

Documentary Transfer Tax is: $_____________
[X] Computed at
full value of property

I declare under penalty of perjury under the laws of the state

of California that the foregoing is true and correct.

Signature: _____________________________________
Printed
Name: __________________________________
Date and
Place:_________________________________

	 
	 
	QUITCLAIM DEED 

     For valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, BOWERMAN HOLDINGS,
LLC, a California domestic limited liability company, with a mailing address of
Post Office Box 16187, South Lake Tahoe, California 96151, does hereby remise,
release and forever quitclaim to DEL TORO SILVER CORP., a Nevada domestic
corporation, an undivided sixty percent (60%) interest in, of and to one hundred
percent (100%) of its right, title and interest in and to that real property
situated in the County of Siskiyou, State of California, bounded and described
as follows:

See Attached Schedule “A”

together with all and singular tenements, hereditaments and
appurtenances thereunto belonging or in anywise appertaining.

WITNESS my hand this ______day of _________________, 2011.

	 	Bowerman Holdings, LLC,
    
	 	a California Domestic
      Limited Liability Company 
	 	 	  
	 	By:	 
	 	Name:	Patrick A. Fagen 
	 	 	President of its Manager, Trinity Alps Resources, Inc.
  

	STATE OF _______________________________	) 
	  	)ss. 
	COUNTY OF ___________________ - _________	) 

     This instrument was acknowledged
before me on ____________________, 2011 by Patrick A. Fagen, President of
Trinity Alps Resources, Inc., Manager of Bowerman Holdings, LLC.

	 	 
	 	Signature of Notarial Officer

SCHEDULE “A”

Exhibit B

SECURED 
PROMISSORY NOTE

$4,500,000.00

Carson City, Nevada
_____________________, 201___
(“Effective Date”)

     FOR VALUE RECEIVED, the
undersigned Maker hereby promises to pay to Bowerman Holdings, LLC or its order
(as applicable, “Holder”) the principal sum of FOUR MILLION FIVE HUNDRED
THOUSAND DOLLARS AND 00/100 ($4,500,000.00) with interest accruing from the
Effective Date on the unpaid principal and interest at the rate of ten percent
interest (10%) per annum, compounded monthly, as follows: principal and
interest shall be due and payable in full thirty six (36) months from the
Effective Date by way of a balloon payment equal to the amount of the entire
balance then-due hereunder.

     Maker may prepay all or any part
of the sum due hereunder at any time without penalty. If Maker contracts to sell
the real property against which the deed of trust securing this note is filed of
record, then the entire amount then-due hereunder shall become automatically due
and payable to Holder from the closing proceeds of any such sale (and any and
every lender and/or escrow agent and officer associated therewith is hereby
irrevocably instructed to pay Holder all of such funds directly from those
proceeds).

     A delinquent payment hereunder
shall result in a late fee equal to ten percent (10%) of the delinquent
payment’s amount. Acceptance of a delinquent partial payment does not waive
Holder’s right to insist upon immediate payment in full and timely, complete
payment in the future. If Maker is more than thirty (30) calendar days
delinquent on any payment due hereunder, or violates any of the promises or
covenants contained in the deed of trust securing this note; or if Maker
executes a general assignment for the benefit of creditors, or a bankruptcy
proceeding is commenced by or against Maker; or if a receiver is appointed for
Maker or any of Maker’s property, such acts constitute a default hereunder, and
the: per annum interest rate delineated above shall automatically and
immediately increase to fifteen percent (15%) per annum, compounded
monthly; and the entire balance then unpaid shall, as a result of said default,
immediately become due and payable at the Holder’s sole option and without
notice or demand.

     Maker promises to pay all of
Holder’s costs, expenses and attorneys’ fees if Holder seeks legal counsel or
institutes a suit or legal or equitable action to collect money due under this
note, with the aggregate amount thereof to be included in any judgment obtained
on this note.

     Maker waives presentment for
payment, demand, notice, protest and notice of protest, diligence and nonpayment
hereof, and any and all defenses.

     This note is secured by a Deed of
Trust of even date herewith naming Trinity Alps Resources, Inc. as Trustee.

	 	______________________________________(“Maker”) 
	 	Del Toro Silver Corp. 
	 	By: Greg Painter 
	 	Its: President 

DO NOT LOSE OR DESTROY THIS NOTE: When paid, this note
and the original Deed of Trust securing same must be surrendered to the Trustee
for cancellation before reconveyance will be made.

Exhibit C

First Position Deed of Trust

	APNs:
      860-001-509-00 and 860-001-410-000 	  
	  	  
	RECORDING REQUESTED
      BY: 	  
	   
                     Rutledge Law Center
      Ltd. 	  
	  	  
	When recorded,
      mail to: 	  
	   
                     Patrick A. Fagen,
      President 	  
	   
                     Trinity Alps
      Resources, Inc., Manager 	  
	   
                     BOWERMAN HOLDINGS,
      LLC 	  
	   
                     Post Office Box
      16187 	  
	   
                     South Lake Tahoe,
      CA 96151 	  
	  	  
	The undersigned
      hereby affirms that this document 	  
	submitted for
      recording does not contain the social 	  
	security number of
      any person or persons. 	  
	  	  
	Documentary
      Transfer Tax is: $____________ 	  
	[X] Computed at
      full value of property 	  
	  	  
	I declare under
      penalty of perjury under the laws of the 	  
	state of California
      that the foregoing is true and correct. 	  
	  	  
	  	  
	Signature:
      _____________________________________	  
	Printed Name:
      __________________________________	  
	Date and Place: _________________________________	(space above for recorder’s use only) 

 FIRST DEED OF TRUST 
WITH ASSIGNMENT OF
RENTS

This deed of trust and the Schedule A attached hereto
and hereby incorporated herein by this reference (collectively, this “Deed of
Trust”) is made and entered into on _______________ _____ , 201__ by DEL
TORO SILVER CORP., a Nevada domestic corporation whose address is 2436 Jacks
Valley Road, Genoa, Nevada 89411 (“Trustor”), for the benefit of BOWERMAN
HOLDINGS, LLC, a California domestic limited liability company whose address is
set forth above (“Beneficiary”), with TRINITY ALPS RESOURCES, INC., a
Nevada domestic corporation, whose address is Post Office Box 16187, South Lake
Tahoe, California 96151, hereby appointed as trustee (“Trustee”).

Trustor hereby irrevocably grants, transfers and assigns to
Trustee in trust, with power of sale, all of Trustor’s interest in and to that
property situated in the Siskiyou County, California that is referenced by
Assessor's Parcel Numbers 860-001-509-00 and 860-001-410-000, and more
specifically described in Schedule A, together with any and all
improvements thereon (the “Property”).

     TOGETHER WITH all tenements,
hereditaments, appurtenances and rights-of-way thereunto belonging or
appertaining, including water, mineral, timber and crop rights, and the
reversion(s), remainder(s), rent(s), issue(s) and profit(s) thereof and
therefrom; reserving, however, the right to collect and use same as long as
there is no existing default hereunder (as defined in the Note), and, in the
event of such a default, Trustor does hereby authorize Beneficiary to
perpetually collect and recover same in the name of Trustor or its

	Trustor’s Initials: ________	1 

successor-in-interest through any lawful means.

     FOR THE PURPOSE OF SECURING: (1)
payment of the indebtedness evidenced by the promissory note of even date
herewith in the principal sum of FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS AND
00/100 ($4,500,000.00) payable to Beneficiary or its order (“Note”); (2)
payment and discharge of all debt secured by a deed of trust against the
Property and now of record with Siskiyou County (“Senior Secured Debt”),
of which Trustor hereby represents, warrants, covenants and promises there is
none; (3) additional sums and advances hereafter made by and between Beneficiary
or its assignee to or for the benefit of Trustor or its successor in ownership
of the Property, if any; and (4) performance of each of Trustor’s commitments
contained herein or incorporated herein by reference (including, but not limited
to, the full and timely expenditure of Buyer’s Work Commitment), Trustor
expressly makes, adopts and covenants to each provision herein.

1. This Deed of Trust is, at the time of execution,
subject and subordinate to only Senior Secured Debt (which, to reiterate,
Trustor herein represents, warrants, covenants and promises there is none).
Trustor hereby promises and covenants to never default under any note
establishing Senior Secured Debt. Should Trustor default in payment of any
installment required by the holder of any Senior Secured Debt, or any other
payment obligation detailed herein, such failure shall also constitute a default
hereunder. Thereafter, Trustee may make the required third party payment(s),
including late charges, penalties and/or advances, with any and all such
payments added to the balance then due under the Note secured hereby. However,
no such payments by Trustee shall constitute a waiver of Trustor’s default
hereunder or the resulting, automatic increase in per annum interest due
under the note secured hereby.

2. Trustor shall: properly care for and keep the
Property in good condition and repair; not remove or demolish any building
thereon; complete in a good and workmanlike manner any building which may be
constructed thereon; pay when due all property taxes, other assessments related
to the Property, and claims for labor performed and materials furnished
therefor; comply with all laws, ordinances and regulations relating to any
alterations or improvements made thereon; not commit or permit any waste
thereof; and not commit, suffer or permit any act to be done in or upon the
Property that violates any law, covenant, condition or restriction affecting the
Property.

3. Trustor covenants to keep all buildings that may now
or at any time hereafter be on the Property insured against loss by fire and
other casualty with a company or companies authorized to issue such insurance in
California. Said insurance shall be at least in the sum of all obligations under
this Deed of Trust and any Senior Secured Debt, or the maximum full insurable
value of such buildings, whichever is less. The policies of said insurance shall
name Beneficiary as primary loss payee and shall be delivered to Beneficiary as
further security, and, in default thereof, Trustor shall be in default
hereunder. Trustee or Beneficiary may thereafter procure such insurance and/or
make such repairs, and expend for either of such purposes such sums as
Beneficiary deems necessary. The amount collected by Beneficiary under any fire
or other insurance policy may be applied by Beneficiary to any monetary loss
suffered by Beneficiary as a result of the breach by Trustor of a provision
hereof or of the Note, or, at the Beneficiary’s option, all or a portion of the
amount so collected may be released to Trustor. Such application or release
shall not cure or waive any default or notice of default hereunder or invalidate
any act done pursuant to such notice, including the automatic and immediate
increase in per annum interest due under the Note.

4. Trustor promises and covenants that if a suit or
action is commenced or is pending that affects the Property, or any part
thereof, or the title thereto, or if any adverse claim for or against the
Property, or any part thereof, is made or asserted, Trustor will appear in and
defend such matter purporting to affect the security and will pay all costs
thereof and all damages arising therefrom. At Trustor’s expense, Beneficiary
and/or Trustee may also participate in such suit or action if either so
chooses.

	Trustor’s Initials: _________	2 

5. Any award of damages in connection with any
condemnation for public use of, or injury to the Property, or any part thereof,
is hereby assigned and shall be paid to Beneficiary to maximum extent available
and as necessary to fully repay the debt secured hereby.

6. If Trustor defaults in any payment to Beneficiary
secured hereunder, contracts to sell, convey or alienate the Property, agrees to
refinance senior debt secured in whole or in part by said property, or is
otherwise divested of any title interest therein, Beneficiary may, in its sole
and absolute discretion, declare all sums secured hereby immediately due and
payable by delivering to Trustee a written declaration of default and demand for
sale. Trustee shall cause same to be promptly filed of record and, after lapse
without cure of period provided for under California law, Trustee shall give
notice as required by law and shall sell the Property for cash to the highest
bidder, payable immediately upon sale, at such time and in such place within the
state of California as the Trustee, in his sole discretion, deems best, by
trustee’s deed (but without any covenant or warranty). Any person or entity,
including Trustor, Trustee and Beneficiary, may purchase the Property at such
sale.

     While expressly not required of
Trustee with regard to any third-party action or initiated sale concerning the
Property, Trustor hereby requests that a copy of any “Notice of Default” and any
“Notice of Sale” hereunder be mailed to Trustor at the address set forth above
at the onset, and promises and covenants to pay any deficiency arising from such
sale after application of the sales proceeds as provided for herein. Further,
Trustor promises and covenants to pay and discharge all costs, fees and expenses
otherwise incurred in connection with any default by Trustor hereunder.

     After deducting all costs, fees
and expenses of Trustee and this trust, including the cost of evidence of title
in connection with sale, Trustee shall apply the proceeds of sale in this order:
all sums expended under the terms hereof, not then repaid, with accrued interest
thereon at the amount provided for herein; all other sums then secured hereby;
and the remainder, if any, to the person or persons legally entitled
thereto.

7. The Beneficiary or Trustee may charge a fee of $75
for each change in parties. Additionally, to the extent applicable, each and
every covenant and provision in the fictitious deed of trust heretofore recorded
in the official records of the Siskiyou County recorder, if any, are hereby
incorporated herein by this reference and are meant to be read with this Deed of
Trust’s express terms and conditions. However, the express terms hereof shall
govern should any of said express terms directly conflict with a covenant or
other provision incorporated herein by reference.

8. This Deed of Trust is governed by California law, and
binds and inures to the benefit of the parties hereto, and their heirs,
legatees, devisees, administrators, executors, successors and assigns. The trust
created hereby is expressly irrevocable by Trustor.

9. Upon: receipt of the below notification from
Beneficiary that the Note has been repaid and performed; surrender of the Note
and this Deed of Trust to Trustee for cancellation and retention; and payment of
all of Trustee’s fees, the Trustee shall re-convey, without warranty, the
property then held hereunder. Such reconveyance may be to “the person(s) legally
entitled thereto.”

	 	SIGNATURE OF TRUSTOR 
	 	 
	 	 

3

	STATE OF CALIFORNIA 	) 
	  	) ss 
	COUNTY OF ___________________	) 

On __________________ ________, 2011, before me, a notary
public, personally appeared  __________________ , an individual, personally
known or proved to me to be the person whose name is subscribed to the above
instrument and who acknowledged that he executed the instrument.

	 	 	 
	 	Notary Public 	 

TO TRUSTEE:

     The undersigned is the legal
owner and holder of the note, and of all other indebtedness secured by the
foregoing Deed of Trust. Said note(, together with the indebtedness secured by
said Deed of Trust, have been fully paid and satisfied; and you are hereby
requested and directed, on payment to you of any sums due and owing to you under
the terms of said Deed of Trust, to cancel said note and other evidences of
indebtedness secured thereby, and said Deed of Trust, and to re-convey, without
warranty, to the person(s) legally entitled thereto all of the estate now held
by you under same.

Dated:
____________________________________

_________________________________________

_________________________________________

Please mail the respective, canceled note, other evidences of
indebtedness, and Deed of Trust to:

	 	Greg Painter, President 
	 	Del Toro Silver Corp. 
	 	P.O. Box 37 
	 	Genoa, Nevada 89411 

DO NOT LOSE OR DESTROY THIS DEED OF TRUST: When paid,
this Deed of Trust and the original promissory note secured by same must be
surrendered to the Trustee for cancellation before reconveyance will be
made.

4

Schedule A

Trustor’s Initials: ________Del Toro Silver Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

MINING CLAIMS
JOINT OPERATIONS AGREEMENT 

This mining claims joint operations agreement, dated
conditionally effective as of the Closing Date (as that term is defined in the
Parties’ “asset sale agreement”, which was fully executed immediately prior to
this Agreement’s execution), if such Closing Date ever occurs thereunder (the
“Effective Date”), is entered into by and between BOWERMAN
HOLDINGS, LLC, a California domestic limited liability company
(“Bowerman”), and DEL TORO SILVER CORP., a Nevada domestic
corporation (“Del Toro”). Bowerman and Del Toro are at times
hereinafter referred to singly as a “Party” and collectively as
the “Parties.” 

RECITALS 

     A. As a result of a closing
earlier on the Effective Date, Del Toro owns and controls, inter alia, an
undivided sixty percent (60%) interest in title to the unpatented mining claims
that are located in Siskiyou County, California, and described in this
Agreement’s Exhibit A, any and all rights, duties, obligations, and other
items incidental and/or ancillary thereto (the “Claims”). 

     B. Bowerman was the seller of
Del Toro’s 60% interest in and to the Claims, and retains the remaining
undivided forty percent (40%) interest in and to the Claims. 

     C. Bowerman wishes to
participate with Del Toro in the exploration, evaluation, development and mining
of the mineral resources within the Claims, and Del Toro is willing to grant
such rights to Bowerman, upon and subject to this Agreement’s terms and
conditions.

AGREEMENT 

NOW, THEREFORE, in consideration of the above recitals
(“Recitals”), the mutual promises, covenants and agreements set forth
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties, each intending to be legally
bound, hereby covenant and agree as follows: 

1. PRELIMINARY MATTERS 

     1.1 Recitals. The Recitals
hereto are true, correct and complete, and are hereby incorporated into this
Agreement by this reference as if fully set forth herein. 

     1.2 Cross-References.
References to an “Exhibit” or “Section” refer to the respective
exhibits to and section of this Agreement, as applicable.

     1.3 Exhibits. All exhibits
attached hereto are hereby incorporated into this Agreement by this reference as
if fully set forth herein. 

2. DEFINITIONS 

     2.1
“Affiliate” of a Party means any Person directly or
indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with a Party; provided, however, that neither Party shall,
despite any ultimate commonality of ownership, be deemed or found to be an
Affiliate of the other Party. The term "control" (including the terms
"controlled by" and "under common control with") means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through
membership, ownership of voting securities (including common stock), by
contract, or otherwise. 

     2.2
“Agreement” means this mining claims joint operations
agreement, as executed and amended from time to time. 

     2.3 “Business
Information” means the terms of this Agreement, and any other
agreement relating to the relationship documented by this Agreement, and all
information, data, knowledge and know-how, in whatever form and however
communicated (including Confidential Information), developed, conceived,
originated or obtained by either Party in performing its obligations under this
Agreement (but excluding any improvements, enhancements, refinements or
incremental additions to Party Information that are developed, conceived,
originated or obtained by either Party in performing its obligations under this
Agreement). 

     2.4 “Confidential
Information” means all information, data, knowledge and know-how
(including formulas, patterns, compilations, programs, devices, methods,
techniques and processes) that derives independent economic value, actual or
potential, as a result of not being generally known to, or readily ascertainable
by, third parties and which is the subject of efforts that are reasonable under
the circumstances to maintain its secrecy, including all analyses,
interpretations, compilations, studies, excerpts, summaries and evaluations of
such information, data, knowledge and know-how generated or prepared by or on
behalf of either Party. Confidential Information does not include information
within the public domain through no fault or action taken by either Party after
the Effective Date of this Agreement. 

     2.5 “Continuing
Obligations” means those obligations or responsibilities that are
reasonably expected to continue or arise after operations on a particular area
of the Claims have ceased or are suspended, such as future 

2

monitoring, stabilization, or Environmental Compliance. 

     2.6
“Encumber” means the act of creating or purporting to create
an Encumbrance, whether or not perfected under applicable law. 

     2.7
“Encumbrance” means, with respect to either Party, or any
material asset of either Party, a mortgage, pledge, security interest, lien,
assignment as security, proxy coupled with an interest, option, or preferential
right to purchase. 

     2.8 “Environmental
Compliance” means actions performed during or after operation of the
Claims to comply with the requirements of all Environmental Laws or contractual
commitments related to reclamation of the Claims and/or the Real Property, or
other compliance with Environmental Laws.

     2.9 “Environmental
Damage” means creation of damage or threatened damage to the air, soil,
surface water, groundwater, flora, fauna, or other natural resources on, about
or in the general vicinity of the Claims and/or the Real Property. 

     2.10 “Environmental
Laws” means Laws aimed at reclamation or restoration of the Claims
and/or the Real Property; abatement of pollution; protection of the environment;
protection of wildlife, including endangered species; ensuring public safety
from environmental hazards; protection of cultural or historic resources;
management, storage or control of hazardous materials and substances; releases
or threatened releases of pollutants, contaminants, chemicals or industrial,
toxic or hazardous substances as wastes into the environment, including without
limitation, ambient air, surface water and groundwater; and all other Laws
relating to the manufacturing, processing, distribution, use, treatment,
storage, disposal, handling or transport of pollutants, contaminants, chemicals
or industrial, toxic or hazardous substances or wastes.

     2.11 “Environmental
Liabilities” means any and all claims, actions, causes of action,
damages, losses, liabilities, obligations, penalties, judgments, amounts paid in
settlement, assessments, costs, disbursements, or expenses (including attorneys’
fees and costs, experts’ fees and costs, and consultants’ fees and costs) of any
kind or of any nature whatsoever that are asserted against either Party, by any
person or entity other than the other Party, alleging liability (including
liability for studies, testing or investigative costs, cleanup costs, response
costs, removal costs, remediation costs, containment costs, restoration costs,
corrective action costs, closure costs, reclamation costs, natural resource
damages, property damages, business losses, personal injuries, penalties or
fines) arising out of, based on or resulting from (i) the presence, release,
threatened release, discharge or emission into the environment of any hazardous
materials or substances existing or arising on, beneath or above the Claims
and/or the Real Property and/or emanating or migrating and/or threatening to
emanate or migrate from the Claims and/or the Real Property to off-site 

3

properties, (ii) physical disturbance of the environment,
and/or (iii) the violation or alleged violation of any Environmental Laws.

     2.12 “Involuntary
Transfer” means, with respect to either Party, any Transfer or
Encumbrance pursuant to court order, foreclosure of a security interest,
execution of a judgment or other legal process, by operation of law or
otherwise, including a purported transfer to or from a trustee in bankruptcy,
receiver or assignee for the benefit of creditors. 

     2.13 “Involuntary
Withdrawal” means, with respect to either Party, the occurrence of any
of the following events: (i) the Party makes an assignment for the benefit of
creditors; (ii) the Party files a voluntary petition in bankruptcy; (iii) the
Party is adjudicated bankrupt or insolvent or there is entered against the Party
an order for relief in any bankruptcy or insolvency proceeding; (iv) the Party
files a petition seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute, law
or regulation; (v) the Party seeks, consents to or acquiesces in the appointment
of a trustee or receiver for, or liquidation of the Party or of all or any
substantial part of such Party’s assets; (vi) the Party files an answer or other
pleading admitting or failing to contest the material allegations of a petition
filed against the Party in any proceeding described in clauses (i) through (v)
hereof; (vii) any proceeding against the Party seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute, law or regulation, continues for one hundred twenty
(120) days after the commencement thereof, or the appointment of a trustee,
receiver or liquidator for the Party or all or any substantial part of the
Party’s properties without the Party’s agreement or acquiescence, which
appointment is not vacated or stayed for one hundred twenty (120) days or, if
stayed, for one hundred twenty (120) days after expiration of the stay during
which period the appointment is not vacated; (viii) the dissolution of the Party
or the revocation of its charter; or (ix) breach of this Agreement by the Party.

     2.14 “Laws”
means all applicable federal, state and local laws (statutory or common), rules,
ordinances, regulations, grants, concessions, franchises, licenses, orders,
directives, judgments, decrees, and other governmental restrictions, including
permits and other similar requirements, whether legislative, municipal,
administrative or judicial in nature.

     2.15
“Notice” means a written notice required or permitted under
this Agreement and conforming to the provisions of Section 15.1. 

     2.16 “Party
Information” means all information, data, knowledge and know-how,
in whatever form and however communicated (including Confidential Information),
which, as shown by written records, was developed, conceived, originated or
obtained by a Party (i) prior to entering into this Agreement, or (ii)
independent of its performance under the terms of this Agreement.

4

     2.17
“Person” means a natural person, partnership, limited
partnership, trustee, estate, association, corporation, limited liability
company, or other entity, whether domestic or foreign. 

     2.18
“Products” means any and all mineral and other resources
produced in commercial quantities, marketed and/or sold from or by reason of
development, operation and commercial exploitation of the Claims. 

     2.19
“Transfer” means, with respect to a Party’s interest under and
pursuant to this Agreement, or any element thereof, any sale, assignment, gift,
Involuntary Transfer, or other disposition of such interest or any element
thereof, directly or indirectly, other than an Encumbrance that is expressly
permitted hereunder. 

3. LICENSE ACKNOWLEDGEMENT AND PERMISSION TO OPERATE

     3.1 License Acknowledgement.
Upon and subject to the terms, provisions, conditions and payments contained
or provided for in this Agreement, Bowerman hereby acknowledges that Del Toro,
as majority owner of the Claims, has the right to enter upon the Claims and the
real property containing the Claims (the “Real Property”) to (i)
evaluate the potential for further developing, mining and operating of the
Claims, (ii) develop, improve, mine, operate and otherwise commercially exploit
the Claims and the underlying mineral resources, (iii) operate, store, maintain
and otherwise use the Operating Assets on and for the exclusive benefit of the
Claims, (iv) market and sell any and all Products, (v) complete and satisfy any
and all Environmental Compliance obligations and Continuing Obligations, and
(vi) perform any other activity necessary, appropriate or incidental to any of
the foregoing. The foregoing authorized activities on and about the Claims shall
be collectively referred to hereinafter as the “Permitted Uses.”

     3.2 Limitation. Unless the
Parties hereafter otherwise agree in writing, operation of the Claims shall be
limited to the Permitted Uses, and nothing in this Agreement shall be construed
to enlarge such purposes or to change the relationship of the Parties as set
forth in this Agreement. 

4. TERM. This Agreement begins on the Effective Date
and, unless terminated earlier as provided for herein, continues in force
thereafter until 1 January 2017 (the “Term”). 

5. REPRESENTATIONS AND WARRANTIES; TITLE TO CLAIMS 

     5.1 Representations and
Warranties of Del Toro. As of the Effective Date, Del Toro represents and
warrants to Bowerman that:

5

         
5.1.1 It is a domestic for-profit corporation duly organized and in good
standing in Nevada, and that it shall become qualified to do business and shall
be in good standing in those states where necessary in order to carry out the
purposes of this Agreement, including California;

          5.1.2
It has the capacity to enter into and perform this Agreement and all
transactions contemplated herein and that all actions required to authorize it
to enter into and perform this Agreement have been properly taken;

          5.1.3
It will not breach any other agreement or arrangement by entering into or
performing this Agreement;

          5.1.4
It is not subject to any governmental order, judgment, decree, debarment,
sanction or Laws that would preclude the permitting or implementation of
operations hereunder; and

          5.1.5
This Agreement has been duly executed and delivered by it and is valid and
binding upon it in accordance with its terms.

     5.2 Representations and
Warranties of Bowerman. As of the Effective Date, Bowerman represents and
warrants to Del Toro that: 

      
   5.2.1 It is a limited liability company duly organized
and in good standing in California; 

    
     5.2.2 It has the capacity to enter into and
perform this Agreement and all transactions contemplated herein and that all
actions required to authorize it to enter into and perform this Agreement have
been properly taken; 

          
5.2.3 It will not breach any other agreement or arrangement by entering
into or performing this Agreement; 

          
5.2.4 It is not subject to any governmental order, judgment, decree,
debarment, sanction or Laws that would preclude the permitting or implementation
of operations hereunder; and 

          
5.2.5 This Agreement has been duly executed and delivered by it and is valid
and binding upon it in accordance with its terms. 

The representations and warranties set forth above in this
Section 5 shall survive the execution and delivery of this Agreement.

     5.3 Disclosures. Each of
the Parties represents and warrants that, as of the Effective Date, it is
unaware of any material facts or circumstances that have not been disclosed in
this Agreement or otherwise disclosed in writing to 

6

the other Party prior to the Effective Date, which should be
disclosed to the other Party in order to prevent the representations and
warranties in this Section 5 from being materially misleading. Bowerman has
disclosed to Del Toro all information it believes to be material concerning the
Claims, including all information in its possession concerning Environmental
Liabilities, and has provided to or made available for inspection by Del Toro
all such information - but does not make any representation or warranty, express
or implied, as to the accuracy or completeness of the information (except as may
be otherwise provided for in Section 5.2) or as to the boundaries of the Claims.
Each Party represents to the other that in negotiating and entering into this
Agreement it has relied solely on its own appraisals and estimates as to the
value of the claims and upon its own geologic and engineering interpretations
related thereto. 

     5.4 Record Title. Title to
the Claims shall be held throughout the Term by the Parties in their
then-current respective ownership interests, subject to the paramount tile of
the United States of America. 

     5.5 Loss of Title. Any
failure or loss of title to the Claims, and all costs of defending title, shall
be borne by the Parties in their then-current respective ownership interests,
except that all costs and losses arising out of or resulting from breach of the
representations and warranties of Bowerman herein as to title shall be charged
exclusively to Bowerman.

6. RELATIONSHIP OF PARTIES 

     6.1 No Partnership.
Nothing contained in this Agreement shall be deemed to make or constitute either
Party the partner of the other or, except as otherwise herein expressly
provided, to make or constitute either Party the agent or legal representative
of the other, or to create any fiduciary relationship whatsoever between them.
The Parties do not intend to create, and this Agreement shall not be construed
to create, any mining, commercial or other partnership. Neither Party, nor any
of its shareholders, members, directors, officers, managers, employees, agents
and attorneys-in-fact, or its Affiliates, shall act for or assume any obligation
or responsibility on behalf of the other Party, except as otherwise expressly
provided herein, and any such action or assumption by a Party’s managers,
members, directors, officers, employees, agents and attorneys-in-fact, or
Affiliates, shall be a breach by such Party of this Agreement. The rights,
duties, obligations and liabilities of the Parties shall be several and not
joint or collective, unless otherwise expressly stated to the contrary herein.
Each Party shall be responsible only for its obligations as herein set out and
shall be liable only for its share of the costs and expenses as provided herein,
and it is the express purpose and intention of the Parties that the rights
acquired hereunder shall be as tenants in common. 

     6.2 Other Business
Opportunities. Except as expressly provided in this Agreement, each Party
shall have the right to engage in and receive full 

7

benefits from any independent business activities or
operations, whether or not competitive with the endeavor contemplated by this
Agreement, without consulting with, or incurring any obligation to, the other
Party. The doctrines of “corporate opportunity” or “business opportunity” shall
not be applied to this endeavor or to any other activity or operation of either
Party. Neither Party shall have any obligation to the other with respect to an
opportunity to acquire any property outside the Real Property at any time or
within the Real Property after the termination of the endeavor contemplated by
this Agreement. Unless otherwise agreed in writing, neither Party shall have any
obligation to process or otherwise treat any Products in any facility owned or
controlled by such Party. 

     6.3 Waiver of Rights to
Partition or Other Division of Assets. Each of the Parties hereby forever
waives, relinquishes and releases all rights of partition, or of sale in lieu
thereof, or other division of the Claims, except as may be otherwise
specifically provided for herein, including any such rights provided by Law.

     6.4 Transfer or Termination of
Rights. Except as otherwise provided for in this Agreement or as expressly
agreed to by the Parties in writing, neither Party shall Transfer all or any
part of its interests under this Agreement or otherwise permit or cause such
interests to terminate.

     6.5 Implied Covenants.
There are no implied covenants contained in this Agreement other than those of
good faith and fair dealing.

     6.6 No Third Party Beneficiary
Rights. This Agreement benefits only the Parties and their respective
successors and assigns, and, except as specifically set forth herein, shall not
be construed to create third party beneficiary rights in any other party or in
any governmental organization or agency. 

7. MANAGEMENT AND OPERATIONS 

     7.1 Sole Operator.
Del Toro shall be the manager of the joint endeavor memorialized herein,
and, as such, shall promptly hereafter form a single purpose entity
(“SPE”) that, subject to tax counsel’s guidance and direction, is
presently to be a California limited liability company, in which Del Toro and
Bowerman shall be the only equity holders (with the stake of each equaling its
Participating Interest (as defined below)). The SPE shall act as the sole and
exclusive operator entitled to exercise, operate, administer and manage the
Permitted Uses during the Term, and nothing more. Subject to Section 7.2, the
other provisions herein, and applicable law, Del Toro shall have full, exclusive
and complete discretion, power and authority to manage, control, administer and
operate the SPE’s business and affairs on the Claims for the Permitted Uses, and
to make all decisions affecting such business and affairs. 

8

     7.2 Thirty-six Month Work
Plan. Notwithstanding the provisions of Section 7.1, the Parties have
approved a budget and work plan for the SPE’s first thirty-six months of work on
and about the Claims (the “36-Month Work Plan”). A copy of that
36-Month Work Plan is attached hereto as Exhibit B. Del Toro shall use
its best efforts to cause the SPE to perform and comply with the 36-Month Work
Plan in all material respects, pursuant to the standard of care set forth in
Section 7.7. The method and manner of performing and complying with the 36-Month
Work Plan shall be left to Del Toro’s sole discretion. The 36-Month Work Plan
shall not be amended, altered or otherwise changed without the written consent
of both Parties. The first one million five hundred thousand dollars
($1,500,000) expended under the 36-Month Work Plan shall be paid into the SPE by
Del Toro for such expenditure. For avoidance of doubt, Bowerman’s financial
obligations hereunder shall be entirely carried and stayed until such time as
Del Toro has expended $1,500,000 under the 36-Month Work Plan (“Carry
Period”). 

     7.3 Emergency or Unexpected
Expenditures. In case of emergency occurring during performance of the
36-Month Work Plan, Del Toro may take any reasonable action it deems necessary
to protect life or property, to protect the Claims, or to comply with Laws. Del
Toro may advance reasonable expenditures for unexpected events that are beyond
its reasonable control and that do not result from a breach by it of its
standard of care. Del Toro shall promptly notify Bowerman of the emergency or
unexpected expenditure.

     7.4 Work During Remainder of
Term. Upon completion of the 36-Month Work Plan and for the remainder of the
Term, Del Toro shall prepare and submit to Bowerman a budget and work plan for
each such year. Bowerman shall not have any rights to approve or disapprove the
same, and such budgets and work plans shall be solely for Bowerman’s
information. Notwithstanding the preceding sentence, Del Toro shall use its best
efforts to perform and comply with any and all such further work plans in all
material respects, pursuant to the standard of care set forth in Section 7.7.
The method and manner of performing and complying with such work plans shall be
left to Del Toro’s sole discretion. Such work plans shall not be materially
amended, altered or otherwise changed without Notice to Bowerman of such
changes. 

     7.5 Specific Power and Authority of
Del Toro. In addition to the other duties and responsibilities set forth in
this Section 7, and subject to the other terms and provisions of this Agreement,
Del Toro shall have the following specific powers and duties, which shall be
discharged in accordance with the 36-Month Work Plan and all other adopted work
plans: 

          7.5.1
Management. Del Toro shall manage, direct and control operation of
the Claims through the SPE, and shall prepare and deliver to Bowerman all
reports mandated by this Agreement. 

          7.5.2
Expenses. Del Toro shall advance all expenditures 

9

necessary to carry out the work programs, and shall promptly
advise Bowerman if it lacks sufficient funds to carry out its responsibilities
under this Agreement. To the extent Del Toro is not reimbursed for such
expenditures pursuant to the provisions of this Agreement, Del Toro shall bear
any and all such expenditures, without contribution from Bowerman. 

          7.5.3
Acquisition of Material. Del Toro shall use reasonable efforts to:
(i) purchase or otherwise acquire all material, supplies, equipment, water,
utility and transportation services required for operations, such purchases and
acquisitions to be made to the extent reasonably possible on the best terms
available, taking into account all of the circumstances, (ii) obtain such
customary warranties and guarantees as are available in connection with such
purchases and acquisitions, and (iii) keep the Claims and Real Property free and
clear of all Encumbrances, except any mechanic’s or materialmen’s liens (which
shall be contested, released or discharged in a diligent matter) or Encumbrances
specifically approved by Bowerman. 

          7.5.4
Title Examinations. Del Toro shall conduct such title examinations of the
Claims and Real Property and cure such title defects pertaining to the Claims
and/or Real Property as it deems advisable in its reasonable judgment. 

          7.5.5
Payments to Maintain Claims. Del Toro shall: (i) make or arrange for
all payments required by leases, licenses, permits, contracts and other
agreements with third parties related to the Claims and/or the Real Property;
(ii) pay all taxes, assessments and like charges on operations and/or the
Claims, except taxes determined or measured by a Party’s sales revenue or net
income, and otherwise promptly pay and discharge expenses incurred in
operations; provided, however, that Del Toro shall have the right to
contest (in the courts or otherwise) the validity or amount of any taxes,
assessments or charges or take other reasonable steps or proceedings to seek a
reduction or readjustment prior to payment, but in no event shall Del Toro
permit or allow title to the Claims to be lost as the result of the nonpayment
of any taxes, assessments or like charges; and (iii) do all other acts
reasonably necessary to maintain the Claims.

          7.5.6
Compliance with Laws. Del Toro shall (i) apply for all necessary permits,
licenses and approvals relating to operations with respect to the Claims, (ii)
comply with all Laws, including Environmental Laws, (iii) notify Bowerman
promptly of any actual or alleged substantial violations thereof, and (iv)
maintain records and prepare and file all reports or notices required for or as
a result of operation of the Claims. Del Toro shall not be in breach of this
provision if a violation has occurred in spite of Del Toro’s good faith efforts
to comply consistent with its standard of care under Section 7.7. If any such
violation occurs, Del Toro shall timely cure or dispose of such violation on
behalf of both Parties through performance, payment of fines and penalties, or
both, 

10

and the cost thereof shall be charged to the Account (as
defined below).

          7.5.7
Litigation. Del Toro shall prosecute and defend, but shall not initiate
without Bowerman’s consent, all litigation against third parties or
administrative proceedings arising out of operation of the Claims. Bowerman must
approve any settlement involving payments, commitments or obligations in excess
of fifty thousand dollars ($50,000).

          7.5.8
Insurance. Del Toro shall provide adequate insurance for the benefit
of the Parties and shall ensure that the SPE at all times while conducting
operations complies fully with the applicable worker’s compensation laws and
purchase, or provides protection for the Parties comparable to that provided
under standard form insurance policies for the following risk categories: (i)
comprehensive general liability and property damage with combined limits to be
determined by Del Toro in its reasonable discretion; (ii) automobile insurance
with combined limits to be determined by Del Toro in its reasonable discretion;
and (iii) adequate and reasonable insurance against risk of fire and other risks
ordinarily insured against in similar operations. The SPE shall be the primary
insured, but Del Toro and Bowerman shall be named as additional insured parties
under all such policies. Each Party shall self-insure or purchase for its own
account such additional insurance coverage as it deems warranted. 

          7.5.9
Limitations. The consent of Bowerman is required before
Del Toro may, through the SPE or otherwise, (i) abandon or surrender any of the
Claims, (ii) begin a liquidation or initiate wind up of operation of the Claims,
or (iii) dispose of material Operating Assets necessary to achieve the purposes
of this Agreement.

       
  7.5.10 Performance by Third Parties. Del Toro shall have the
right to carry out its responsibilities hereunder through agents, Affiliates or
independent contractors, including, of course, the SPE.

       
  7.5.11 Assessment Work. Del Toro shall perform or cause to be
performed all assessment and other work, and shall pay all governmental fees
required by Law in order to maintain the Claims, mill sites and tunnel sites
included within the Claims. Subject to and not in lieu of its obligations under
the 36-Month Work Plan and subsequent approved work plans, Del Toro shall have
the right to perform the assessment work required hereunder pursuant to a common
plan of exploration (and continued actual occupancy of such Claims and sites
shall not be required). Del Toro shall not be liable on account of any
determination by any court or governmental agency that the work performed by the
SPE does not constitute the required annual assessment work or occupancy for the
purposes of preserving or maintaining ownership of the Claims, provided that the
work done is pursuant to the 36-Month Work Plan and/or any subsequent adopted
work plan, and is performed in accordance with Del Toro’s 

11

standard of care under Section 7.7. Del Toro shall timely
record with the appropriate county and file with the appropriate United States
agency any and all required affidavits, notices of intent to hold, and other
documents in proper form attesting to the payment of governmental fees, the
performance of assessment work, or the intent to hold the Claims and sites, in
each case in sufficient detail to reflect compliance with the requirements
applicable to each Claim and site. Del Toro shall not be liable on account of
any determination by a court or governmental agency that any such document
submitted by Del Toro does not comply with applicable requirements (provided
that such document is prepared and recorded or filed in accordance with Del
Toro’s standard of care under Section 7.7) . 

      
   7.5.12 Relocation. If authorized by Bowerman,
Del Toro may (i) locate, amend or relocate any Claim or mill site or tunnel
site, (ii) locate any fractions resulting from such amendment or relocation,
(iii) apply for patents or mining leases or other forms of mineral tenure for
any such Claims or sites, (iv) abandon any Claims for the purpose of locating
mill sites or otherwise acquiring from the United States rights to the ground
covered thereby, (v) abandon any unpatented mill sites for the purpose of
locating mining claims or otherwise acquiring from the United States rights to
the ground covered thereby, (vi) exchange with or convey to the United States
any of the Claims for the purpose of acquiring rights to the ground covered
thereby or other adjacent ground, and (vii) convert any Claims or mill sites
into one or more leases or other forms of mineral tenure pursuant to any Law
hereafter enacted.

        
 7.5.13 Books and Records. Del Toro shall keep and maintain
all required accounting and financial records pursuant to US GAAP (as defined
below). 

        
 7.5.14 Environmental Compliance Plan. Del Toro shall prepare
an Environmental Compliance plan for all operations consistent with applicable
Laws or contractual obligations and shall include in each work plan and budget
sufficient funding to implement the Environmental Compliance plan and to satisfy
the financial assurance requirements of any applicable Law or contractual
obligation pertaining to Environmental Compliance. To the extent practical, the
Environmental Compliance plan shall incorporate concurrent reclamation of Real
Property disturbed by operation of the Claims. 

        
 7.5.15 Continuing Obligations. Del Toro shall undertake
Continuing Obligations when and as economically feasible and appropriate,
whether before or after termination of the endeavor set forth in this Agreement.
As part of each work plan and budget, Del Toro shall specify the measures to be
taken for performance of Continuing Obligations and the cost of such measures
and shall describe the efforts undertaken or planned to discharge Continuing
Obligations.

12

      
   7.5.16 Additional Obligations. Del Toro shall undertake
all other activities reasonably necessary to fulfill the foregoing, and to
implement the policies, objectives, procedures, methods and actions referenced
in this Agreement.

     7.6 Payments to Del Toro. Up to
a maximum of one million five hundred thousand dollars ($1,500,000), Del Toro
shall be solely liable and responsible for any and all costs of performing and
complying with the 36-Month Work Plan and subsequent work plans. Proceeds from
production shall be distributed pursuant to Section 8.2. Bowerman shall not be
liable or responsible for payment of any compensation or other amounts to Del
Toro, and Del Toro shall look solely to the proceeds from production for any
monetary return on its investment in the Claims.

     7.7 Standard of Care. Del
Toro shall discharge its duties under this Agreement and conduct all
operations and activities on the Claims through the SPE in a good, workmanlike
and efficient manner, in accordance with sound mining and other applicable
industry standards and practices, and in accordance with Laws and with the terms
and provisions of leases, licenses, patents, permits, contracts and other
agreements pertaining to the Claims. Del Toro shall not be liable to Bowerman
for any act or omission resulting in damage or loss except to the extent caused
by or attributable to Del Toro’s breach of the foregoing standard of care,
willful misconduct or gross negligence. 

     7.8 Transactions with
Affiliates. If Del Toro or the SPE engages one or more Affiliates to provide
services hereunder, it shall do so on terms equal to or about the same as would
exist in an arms-length transaction with unrelated Persons. 

     7.9 Operations
Indemnity. In addition to and not in substitution for or in lieu of any
other indemnities contained in this Agreement, and up to the $1,500,000
expenditure commitment provided for herein, Del Toro (and, ultimately, the SPE)
shall pay and be liable and responsible for any and all costs and expenses
(including legal and other professional and consulting fees and costs) incurred
in connection with the Permitted Uses, and shall indemnify, defend and hold
harmless Bowerman from any and all claims, demands, liens, charges, actions,
causes of action, suits, proceedings, costs and expenses suffered or incurred by
Bowerman arising out of, in connection with or relating to the Permitted Uses
and/or operation of or with respect to the Claims. 

8. DISPOSITION OF PRODUCTION 

     8.1 Del Toro’s Duty to Market and
Sell. Del Toro shall use its best efforts to produce, market and sell the
Products on commercially reasonable terms and conditions, and at commercially
reasonable prices. 

13

     8.2 Shares of Proceeds. Unless
and until Del Toro acquires additional interest in the Claims under the option
granted to it in Section 4 of the Asset Sale Agreement through which Del Toro
acquired its present, sixty percent (60%) interest in the Claims, the Parties
shall share in the SPE’s Net Proceeds (as defined below) of production of the
Products as follows (each singly a “Participating Interest”): 

	Del Toro 	60% 
	Bowerman	40% 
	Total 	100% 

To the extent Bowerman elects not to take its Participating
Interest in-kind pursuant to Section 8.4 below, Del Toro, within thirty (30)
days after the close of each calendar quarter, shall pay to Bowerman Bowerman’s
Participating Interest from said quarter. 

     8.3 Net Proceeds. The term
“Net Proceeds” means the gross revenue resulting from Product
sales, less the aggregate of (i) all Production Expenses (defined below),
including any expenses paid and/or incurred pursuant to the 36-Month Work Plan,
to the extent any remain unpaid or unreimbursed, (ii) any direct sales
transaction costs, including commissions and other sales fees, (iii) taxes paid
or accrued by reason of the sale of Products, excluding any and all federal,
state and local taxes payable by either Party on its income, (iv) reserves
reasonably established by Del Toro for emergency, unexpected or unanticipated
contingencies, and (v) other costs associated with the production, sales or
other disposition of the Products, whether similar or dissimilar to the
foregoing. 

     8.4 Taking in-kind. Each
Party may take in-kind or separately dispose of its share of all Products in
proportion to its Participating Interest. Any extra expenditure incurred in the
taking in-kind or separate disposition by either Party of its proportionate
share of Products shall be borne by such Party. Nothing in this Agreement shall
be construed as providing, directly or indirectly, for any joint or cooperative
marketing or selling of Products or the permitting of the processing of Products
owned by any third party at any processing facilities constructed by the Parties
pursuant to this Agreement. Del Toro shall give Notice in advance of the
anticipated delivery date upon which Products will be available. Each Party
shall report promptly to the other the prices it receives for its share of
Products.

     8.5 Delegation of Authority to
Sell Products Taken in Kind. Unless Bowerman expressly notifies Del Toro
that Bowerman will sell its share of Products, Bowerman will be deemed to have
authorized Del Toro to sell to third parties Bowerman’s share of Products and
Del Toro shall have the right, but not the obligation, for a period of time
consistent with the minimum needs of the 

14

industry, but not to exceed one (1) year from the Notice date
described in Section 8.4 above, to purchase Bowerman’s share for its own account
at not less than the prevailing market price in San Francisco, California.

     8.6 Hedging. Neither Party
shall have any obligation to account to the other Party for, nor shall have any
interest or right of participation in any profits or proceeds from, nor have any
obligation to share in any losses from, futures contracts, forward sales,
trading in puts, calls, options or any similar hedging, price protection or
marketing mechanism employed by a Party with respect to its proportionate share
of any Products. 

9. ACCOUNTING AND REPORTING PROCEDURES 

     9.1 General Accounting
Records. Del Toro shall maintain detailed and comprehensive cost accounting
records in accordance with generally accepted accounting principles used by
companies based in the United States (“US GAAP”). For purposes of
this Agreement, US GAAP means the written opinions, standards, interpretations,
and bulletins developed by the Financial Accounting Standards Board
(“FASB”), the accounting profession (“AICP”), and
the Security and Exchange Commission (“SEC”). Cost accounting
records maintained under these accounting procedures, including general ledgers,
supporting and subsidiary journals, invoices, checks and other customary
documentation, shall provide a record of revenues and expenditures and periodic
statements of financial position, and the results of operations, for managerial,
tax, regulatory and other financial, regulatory, and legal reporting purposes
related to the joint endeavor contemplated by this Agreement. Such records shall
be retained for the duration of the longer of the period allowed the Parties for
audit or the period necessary to comply with tax and other regulatory
requirements. The records shall reflect all obligations, advances and credits of
the Parties. 

     9.2 Cash Management
Accounts. Del Toro shall maintain one or more separate cash management
accounts in the SPE’s name for the payment of all expenses and the deposit of
all cash receipts for operation of the Claims (collectively, the
“Account”). Neither Party nor the SPE more generally shall
commingle the Account with any other account, and Del Toro shall promptly
provide Bowerman with access to any and all Account records if Bowerman
hereafter so requests. 

     9.3 Charges to Account.
Subject to the limitations hereinafter set forth, the Account shall be
debited for the following expenses after the Carry Period has lapsed
(collectively, the “Production Expenses”):

          9.3.1
All Claims and Real Property holding costs, including governmental fees,
filing fees, license fees, costs of permits and assessment work, delay rentals,
production royalties, including any and all required advances, and all other
payments made by Del Toro or the SPE which are necessary to 

15

acquire or maintain title to the Claims; 

          9.3.2
Salaries and wages of Del Toro’s employees directly engaged in operation of
the Claims, including salaries or wages of employees who are temporarily
assigned to and directly employed at the Claims; 

          9.3.3
Del Toro’s cost of holiday, vacation, sickness and disability
benefits, and other customary allowances applicable to the salaries and wages
chargeable under Section 9.3.2. Such costs may be charged on a “when and as paid
basis” or by “percentage assessment” on the amount of salaries and wages; 

          9.3.4
Del Toro’s actual cost of established plans for employees’ group life
insurance, hospitalization, pension, retirement, stock purchase, thrift, bonus
(except production or incentive bonus plans under a union contract based on
actual rates of production, cost savings and other production factors, and
similar non-union bonus plans customary in the industry or necessary to attract
competent employees, which bonus payments shall be considered salaries and wages
under Section 9.3.2 rather than payments under an employee benefit plan) and
other benefit plans of a like nature applicable to salaries and wages chargeable
under Section 9.3.2, provided that the plans are limited to the extent feasible
to those customary in the industry; 

          9.3.5
Cost of assessments imposed by governmental authority that are applicable to
salaries and wages chargeable under Section 9.3.2, including all penalties
except those resulting from the willful misconduct or gross negligence of Del
Toro; 

          9.3.6
The cost of materials, equipment and supplies (collectively,
“Material”) purchased from non-Affiliates or furnished by Del
Toro; provided that Del Toro shall (i) purchase or furnish only so much Material
as may be required for immediate use in efficient and economical operation of
the Claims, and (ii) maintain inventory levels of Material at reasonable levels
to avoid unnecessary accumulation of surplus stock, disruption of operations, or
additional costs due predictable supply needs on an exigent procurement basis;

          9.3.7
The actual cost of procuring, operating, supplying, maintaining, repairing,
servicing and insuring the machinery, equipment, facilities and improvements to
the Real Property that are owned by Del Toro or licensed by Del Toro from any
third party (including an Affiliate of Bowerman or its parent corporation, as in
part or all further detailed herein) and used in operations or to provide
support or utility services to operations (“Operating Assets”), which
will be charged at rates commensurate with the actual costs of ownership and
operation of such machinery, equipment and facilities; provided that such rates
shall (i) include costs of maintenance, repairs, supplies, and other operating
expenses, insurance, taxes, depreciation and interest at a rate not to exceed

16

seven percent (7.0%) per annum, and (ii) not exceed the
average commercial rates currently prevailing in Siskiyou County,
California;

          9.3.8
Reasonable transportation costs incurred in connection with the
transportation of employees and Material necessary for operations; 

          9.3.9
The cost of contract services and utilities procured from outside sources.
If Del Toro or an Affiliate thereof performs contract services, the cost charged
to the Account shall not be greater than that for which comparable services and
utilities are available in the open market within the vicinity of
operations.

       
  9.3.10 Net premiums paid for insurance for Operations for the
protection of the Parties; provided that, when Operations are conducted in an
area where Del Toro may self-insure for Worker’s Compensation and/or Employer’s
Liability under state law, Del Toro may include such risks in its self-insurance
program and shall charge its costs of self-insuring such risks to the Account
provided that such charges shall not exceed published statutory rates; 

    
     9.3.11 All costs in excess of insurance
proceeds necessary to repair or replace damage or losses to any of the Operating
Assets, to the extent such damage or loss results from any cause other than the
willful misconduct or gross negligence of Del Toro; provided that Del Toro shall
furnish Bowerman with written notice of such damage(s) and/or loss(es) as soon
as practicable after Del Toro has knowledge thereof; 

    
     9.3.12 All legal and regulatory costs and
expenses incurred in or resulting from operation of, recovery from, or which are
necessary to protect, the Claims, including costs of title investigation and
title curative services; provided that all attorneys’ fees and other legal costs
to handle, investigate and settle litigation or claims, and amounts paid in
settlement of such litigation or claims in excess of fifty thousand dollars
($50,000) per annum shall not be charged to the Account unless
previously approved by Bowerman; 

        
 9.3.13 All taxes, assessments and like charges on operation of the
Claims and/or the Operating Assets which have been paid by Del Toro; provided,
however, that each Party shall be separately responsible for taxes determined or
measured by a Party’s sales revenue or net income; 

       
  9.3.14 A monthly sum for each phase of operations as provided
below, which shall be a liquidated amount to reimburse Del Toro for its office
overhead and general and administrative expenses to conduct each phase of
operations, and which shall be in lieu of any management fee or tax based on
production of Products (the “Administrative Charges”): five
hundred dollars ($500) per month for operations conducted under the 36-Month
Work 

17

Plan and/or any subsequent work plan approved by the Parties.

         
9.3.15 Administrative supervision, which includes all services rendered by
managers and department supervisors (but not for officers and directors of Del
Toro) for operation of the Claims; 

        
 9.3.16 Accounting, data processing, personnel administration, billing
and record keeping in accordance with governmental regulations and the
provisions of this Agreement, and preparation of reports;

         
9.3.17 Rentals and other charges for office and records storage space,
telephone service, office equipment and supplies;

         
9.3.18 Costs of reasonably anticipated Environmental Compliance, which shall
be determined by Del Toro in an amount sufficient to establish an Environmental
Compliance fund for payment of ongoing Environmental Compliance obligations
conducted during operations and which will aggregate the reasonably anticipated
costs of mine closure, post-operations Environmental Compliance and Continuing
Obligations; and 

         
9.3.19 Any reasonable direct expenditure, other than expenditures that are
covered by the foregoing provisions, incurred by Del Toro for the necessary and
proper operation of the Claims. 

     9.4 Resignation; Deemed Offer to
Resign. Del Toro may resign as manager of the joint venture memorialized
herein upon not less than six (6) months’ prior Notice to Bowerman, in which
case Bowerman may assume all management duties by Notice to Del Toro within
sixty (60) days after receipt of the Notice of resignation. Del Toro shall be
deemed to have resigned upon the occurrence of any of the following: 

          9.4.1
Del Toro or the SPE fails to timely pay and account to Bowerman for any
amount due hereunder, including payment and delivery of Bowerman’s share of Net
Proceeds; 

    
     9.4.2 Except for conditions of force
majeure and monetary payments owed to Bowerman, Del Toro or the SPE fails to
perform a material obligation imposed upon it under this Agreement or the SPE’s
operating agreement, and such failure continues for a period of sixty (60) days
after Notice from Bowerman demanding performance; 

         
9.4.3 Del Toro or the SPE fails to pay or contest in good faith its bills
and debts hereunder as such obligations become due; 

          9.4.4
Occurrence of an event of Involuntary Withdrawal with respect to Del Toro;
or 

18

          9.4.5
A judgment, decree or order for relief is entered against Del Toro or the
SPE that materially affects the ability of either to perform its respective
duties and obligations hereunder.

10. TERMINATION 

     10.1 Termination by Expiration or
Agreement. This Agreement shall expire as expressly provided in Section 4,
unless earlier terminated by written agreement of the Parties.

     10.2 Termination by Deadlock.
If Del Toro fails to prepare and implement a work plan and budget within three
(3) months after the expiration of the 36-Month Work Plan, either Party may
terminate this Agreement by giving thirty (30) days of Notice of termination to
the other Party.

     10.3 Termination by Del Toro’s
Material Default. Bowerman may terminate this Agreement by giving Del
Toro sixty (60) days of Notice of termination if Del Toro defaults in the
performance of any or all of its material duties and obligations hereunder.
Except for its obligations hereunder to make monetary payments to Bowerman
directly or via the SPE (in which event there is no notice or curative period),
Del Toro shall not be considered in default of its obligations unless Bowerman
provides Notice of such default and Del Toro has not remedied such default, to
the reasonable satisfaction of Bowerman, within sixty (60) days after the
effective date of such Notice of default. 

     10.4 With or Without Cause.
This Agreement may be terminated by either Party with or without cause and for
any reason upon one hundred and twenty (120) days of Notice to the
non-terminating Party. 

     10.5 Winding Up on Expiration
or Termination. The Claims shall not be developed, worked or otherwise
exploited by either Party absent the effectiveness of this or a replacement
joint operation agreement between the Parties (or their respective successors,
as and when applicable).

     Promptly after termination under
Sections 10.1 or 10.2, Del Toro shall take all actions necessary to wind up the
activities undertaken pursuant to this Agreement, including the SPE. All costs
and expenses incurred by Del Toro in connection with any such termination and
winding up activities shall be expenses chargeable to the Account. Promptly
after termination under Section 10.3, Bowerman shall take all actions necessary
to wind up the activities undertaken pursuant to this Agreement. All costs and
expenses incurred by Bowerman in connection with any such termination and
winding up activities shall be expenses reimbursable from the Account or Del
Toro, at Bowerman’s sole and arbitrary discretion. 

19

     10.6 Continuing
Authority. On termination of this Agreement under Sections 10.1, 10.2 or
10.3, or the deemed withdrawal of either Party pursuant to the provisions of
this Agreement, Del Toro (or Bowerman if Del Toro withdraws) shall have the
power and authority to do all things on behalf of both Parties which are
reasonably necessary or convenient to (i) wind up operations, and (ii) complete
any transaction and satisfy any obligation, unfinished or unsatisfied, at the
time of such termination or withdrawal, if the transaction or obligation arises
out of operations prior to such termination or withdrawal. The Party winding up
operations shall have the power and authority to grant or receive extensions of
time or change the method of payment of an already existing liability or
obligation, prosecute and defend actions on behalf of both Parties, encumber
assets, and take any and every other reasonable action in any matter with
respect to which the former Party continues to have, or appears or are alleged
to have, a common interest or a common liability. 

11. TRANSFER; PREEMPTIVE RIGHTS 

     11.1 General. A Party
shall have the right to Transfer to a third party an interest in its
Participating Interest, including an interest in this Agreement, solely as
provided for in this Section 11. 

     11.2 Limitations on Free
Transferability. Any Transfer by either Party under Section 11.1
shall be subject to the following limitations:

     
    11.2.1 Neither Party shall Transfer any interest
in this Agreement (including any royalties, fees, profits, or other interest in
the Products), except in conjunction with the Transfer of part or all of its
Participating Interest;

    
     11.2.2 No transferee of all or any part of
a Party’s Participating Interest shall have the rights of a Party unless and
until the transferring Party has provided to the other Party Notice of the
Transfer, and, except as provided in Sections 11.2.6 and 11.2.7, the transferee,
as of the effective date of the Transfer, has committed in writing to assume and
be bound by this Agreement to the same extent as the transferring Party; 

      
    11.2.3 Neither Party shall make a Transfer that
shall violate any Laws, or result in the cancellation of any permits, licenses,
or other authorizations; 

          
11.2.4 No Transfer permitted by this Section 11 shall relieve the
transferring Party of its share of any liability, whether accruing before or
after such Transfer, that arises out of operations conducted prior to such
Transfer or exists on the effective date of such Transfer; 

         
11.2.5 If a Transfer of less than all of a Participating Interest, 

20

the transferring Party and its transferee shall act and be
treated as one Party by notifying the non-transferring Party of their designated
agent to act on their behalf with respect to all matters pertaining to this
Agreement (provided that the transferring Party and its transferee may change
the agent by giving Notice to the other Party, but such replacement must be one
of them); 

    
     11.2.6 If the Transfer results from the
grant of an Encumbrance in a Participating Interest to secure a loan or other
indebtedness of either Party in a bona fide transaction, such Encumbrance
shall be granted only in connection with such Party’s financing payment or
performance of that Party’s obligations under this Agreement and shall be
subject to the terms of this Agreement and the rights and interests hereunder of
the other Party. Any such Encumbrance shall be further subject to the condition
that the holder of such Encumbrance (“Secured Party”) first enter
into a written agreement with the other Party in form satisfactory to the other
Party, acting reasonably, that binds the Secured Party, to the effect that (i)
the Secured Party shall not enter into possession or institute any proceedings
for foreclosure or partition of the encumbering Party’s Participating Interest
and that such Encumbrance shall be subject to the provisions of this Agreement,
(ii) the Secured Party’s remedies under the Encumbrance shall be limited to the
sale of the whole (but only of the whole) of the encumbering Party’s
Participating Interest to the other Party or, failing such a sale, at a public
auction to be held at least ten (10) days after prior Notice to the other Party,
such sale to be subject to the purchaser entering into a written agreement with
the other Party (whereby such purchaser assumes all obligations of the
encumbering Party under the terms of this Agreement); provided that the price of
any preemptive sale to the other Party shall be the remaining principal amount
of the loan plus accrued interest and related expenses, and such preemptive sale
shall occur within sixty (60) days of the Secured Party’s Notice to the other
Party of its intent to sell the encumbering Party’s Participating Interest.
Failure of a sale to the other Party to close by the end of such period, unless
failure is caused by the encumbering Party or by the Secured Party, shall permit
the Secured Party to sell the encumbering Party’s Participating Interest at a
public sale, and (iii) the charge shall be subordinate to any then-existing debt
encumbering the transferring Party’s Participating Interest; 

      
   11.2.7 If a sale or other commitment or disposition of
Products or proceeds from the sale of Products by either Party upon distribution
to it creates in a third party a security interest by Encumbrance in Products or
proceeds therefrom prior to such distribution, such sale, commitment or
disposition shall be subject to the terms and conditions of this Agreement. 

     11.3 Preemptive Right. Any
Transfer by either Party under Section 11.1 and any Transfer by an
Affiliate of control of either Party shall be subject to a preemptive right of
the other Party as described below.

         
11.3.1 If either Party intends to Transfer all or any part of its 

21

Participating Interest, or an Affiliate of either Party intends
to Transfer control of such Party (“Transferring Entity”), such
Party shall promptly notify the other Party of such intent. The Notice shall
state the price and all other pertinent terms and conditions of the intended
Transfer, and shall be accompanied by a copy of the offer or the contract for
sale. If the consideration for the intended transfer is, in whole or in part,
other than monetary, the Notice shall describe such consideration and its
monetary equivalent (based upon the fair market value of the non-monetary
consideration and stated in terms of cash or currency).

       
  11.3.2 The other Party shall have ninety (90) days from the
date such Notice is received to notify the Transferring Entity whether it elects
to acquire the offered interest at the same price (or its monetary equivalent in
cash or currency) and on the same terms and conditions as set forth in the
Notice. If it does so elect, the acquisition by the other Party shall be
consummated promptly after Notice of such election is delivered.

         
11.3.3 If the other Party fails to exercise its priority right to
purchase within the period provided for above, the Transferring Entity shall
have one hundred eighty (180) days following the expiration of such period to
consummate the Transfer to the third party at a price and on terms no less
favorable to the Transferring Entity than those offered. If the Transferring
Entity fails to consummate the Transfer to a third party within the period set
forth above, the other Party’s preemptive right in such offered interest shall
be deemed to be revived. Any subsequent proposal to Transfer such interest shall
be conducted in accordance with all of the procedures set forth in this
subsection.

     
    11.3.4 These procedures shall not apply to the
(i) Transfer by either Party of all or any part of its Participating Interest to
an Affiliate; pursuant to an incorporation, or corporate or company
consolidation or reorganization of a Party by which the surviving entity shall
possess substantially all of the stock or all of the property rights and
interests, and be subject to substantially all of the liabilities and
obligations of that Party; or corporate or company merger or amalgamation by
which the surviving entity or amalgamated company shall possess all of the stock
or all of the property rights and interests, and be subject to substantially all
of the liabilities and obligations of that Party, (ii) subject to Subsection
11.2.6 of this Agreement, the grant by either Party of a security interest in
its Participating Interest by Encumbrance, (iii) the creation by any Affiliate
of either Party of an Encumbrance affecting its Control of such Party, (iv) a
sale or other commitment or disposition of Products or proceeds from sale of
Products by either Party upon distribution to it pursuant to this Agreement, or
(v) failure of a Party’s Affiliate to comply with this Section 11, which
shall be a breach by such Party of this Agreement. 

12. DISPUTES 

     12.1 Governing Law. This
Agreement shall be governed by and 

22

interpreted in accordance with the laws of the State of
California, without regard for any conflict of laws or choice of laws principles
that would permit or require the application of the laws of any other
jurisdiction.

     12.2 Venue. The location
for any arbitration proceeding shall be Carson City, Nevada. 

     12.3 Alternative Dispute
Resolution. The Parties prefer to attempt to settle and resolve any
controversy or claim relating to this Agreement informally through good faith,
face to face negotiations between executive representatives of each Party having
the authority to settle. The Parties’ representatives shall meet within thirty
(30) days of a Party’s Notice to the other of a dispute requiring resolution. If
the Parties have not reached a mutually agreeable resolution to such dispute
within ten (10) days of the meeting, either Party may seek resolution via
binding arbitration pursuant to the American Arbitration Association’s
commercial rules of arbitration.

     12.4 Fees and Costs. All
disputes arising under or in connection with this Agreement that cannot be
resolved by agreement between the Parties shall be resolved in accordance with
applicable Laws. If any legal action 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 substantially prevailing Party 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 may be entitled. 

13. CONFIDENTIALITY, USE AND DISCLOSURE OF INFORMATION

     13.1 Business Information.
The Parties shall jointly own all Business Information concerning the
relationship set forth in this Agreement, as their Participating Interests are
determined pursuant to this Agreement. Except as provided in Sections 13.3 and
13.4, or with the prior written consent of the other Party, each Party shall
keep confidential and not disclose to any third party or the public any portion
of the Business Information that constitutes Confidential Information.

     13.2 Party Information. In
performing its obligations under this Agreement, neither Party shall be
obligated to disclose any its Party Information to the other Party. If a Party
elects to disclose its Party Information in performing hereunder, such Party
Information, together with all improvements, enhancements, refinements and
incremental additions to such Party Information that are developed, conceived,
originated or obtained by the disclosing Party in its performance hereunder
(“Enhancements”), shall be owned exclusively by the disclosing
Party (so long as said Party originally developed, conceived, originated or
obtained such Party Information and/or Enhancements, as the case 

23

may be). Each Party may use and enjoy the benefits of either
Party’s disclosed Party Information and Enhancements thereto in the conduct of
its performance hereunder, but the Party that did not originally develop,
conceive, originate or obtain such Party Information may not use such Party
Information or Enhancements thereto for any other purpose. Except as provided in
Section 13.4, or with the prior written consent of the other Party, which
consent may be withheld in such Party’s sole discretion, each Party shall keep
confidential and not disclose to any third party or the public any
portion of any of the other Party’s Party Information or Enhancements
thereto that constitute Confidential Information.

     13.3 Permitted Disclosure of
Confidential Business Information. Either Party may disclose Business
Information that is Confidential Information (i) to a Party’s managers, members,
officers, directors, partners, employees, Affiliates, shareholders, agents,
attorneys, accountants, consultants, contractors, subcontractors or advisors,
for the sole purpose of such Party’s performance of its obligations under this
Agreement, (ii) to any bona fide potential transferee to whom the
disclosing Party contemplates a Transfer of all or any part of its Participating
Interest, for the sole purpose of evaluating the proposed Transfer, (iii) to any
actual or potential lender, underwriter or investor for the sole purpose of
evaluating whether to make a loan to or investment in the disclosing Party, or
(iv) to a third party with whom the disclosing Party contemplates any
independent business activity or operation. The Party disclosing Confidential
Information pursuant to this Section 13.3, shall disclose such Confidential
Information only to those parties who have a bona fide need to have
access to such Confidential Information for the purpose for which disclosure to
such parties is permitted under this Section 13.3 and who have agreed in writing
supplied to, and enforceable by, the other Party to protect the Confidential
Information from further disclosure, to use such Confidential Information solely
for such purpose and otherwise to be bound by the provisions of this Section 13.
Such writing shall not preclude parties described in Section 13.3(ii) from
discussing and completing a Transfer with the other Party. The Party disclosing
Confidential Information shall be responsible and liable for any use or
disclosure of the Confidential Information by such parties in violation of this
Agreement and such other writing.

     13.4 Disclosure Required By
Law. Notwithstanding anything to the contrary contained in this Section 13,
a Party may disclose any Confidential Information if, in the opinion of the
disclosing Party’s legal counsel, (i) such disclosure is legally required to be
made in a judicial, administrative or governmental proceeding pursuant to a
valid subpoena or other applicable order, or (ii) such disclosure is legally
required pursuant to the rules or regulations of a stock exchange or similar
trading market applicable to the disclosing Party. Prior to any disclosure of
Confidential Information under this Section 13.4, the disclosing Party shall
give the other Party at least ten (10) days of prior Notice (unless another time
period is required by such rules, regulations or proceeding) 

24

and, in making such disclosure, the disclosing Party shall
disclose only that portion of Confidential Information required to be disclosed
and shall take all reasonable steps to preserve the confidentiality thereof,
including obtaining protective orders and supporting the other Party’s
intervention in any such proceeding. 

     13.5 Public Announcements.
Prior to making or issuing any press release or other public announcement or
disclosure of Business Information that is not Confidential Information, a Party
shall first consult with the other Party as to the content and timing of such
announcement or disclosure, unless in the good faith judgment of such Party,
there is not sufficient time to consult with the other Party before such
announcement or disclosure must be made under applicable Laws; but in such
event, the disclosing Party shall notify the other Party, as soon as possible,
of the pendency of such announcement or disclosure, and it shall notify the
other Party before such announcement or disclosure is made if at all reasonably
possible. Any press release or other public announcement or disclosure to be
issued by either Party relating to this Business shall also identify the other
Party. 

14. INDEMNIFICATION 

     14.1 Indemnities / Limitation of
Liability. Each Party shall indemnify, defend and hold harmless the other
Party, its managers, members, directors, officers, employees, agents and
attorneys-in-fact, or Affiliates (collectively, “Indemnified
Party”) from and against the entire amount of any Material Loss. A
“Material Loss” means all costs, expenses, damages, fines,
penalties or liabilities, including attorneys’ fees and other costs of
litigation (either threatened or pending) arising out of or based on a breach by
a Party (“Indemnifying Party”) of any representation, warranty or
covenant contained in this Agreement. A Material Loss shall not be deemed to
have occurred until, in the aggregate, an Indemnified Party incurs losses,
costs, damages or liabilities in excess of ten thousand dollars ($10,000) (the
“Indemnification Threshold”) relating to breaches of warranties,
representations and covenants contained in this Agreement. Once the
Indemnification Threshold is reached, the Indemnifying Party shall be liable for
the entire amount of the Material Loss.

     14.2 Indemnification
Procedure. If any claim or demand is asserted against an Indemnified Party
in respect of which such Indemnified Party may be entitled to indemnification
under this Agreement, written Notice of such claim or demand shall promptly be
given to the Indemnifying Party. The Indemnifying Party shall have the right,
but not the obligation, by notifying the Indemnified Party within thirty (30)
days after its receipt of the Notice of the claim or demand, to assume the
entire control of (subject to the right of the Indemnified Party to participate,
at the Indemnified Party’s expense and with counsel of the Indemnified Party’s
choice), the defense, compromise, or settlement of the matter, including, at the
Indemnifying Party’s expense, employment of counsel of 

25

the Indemnifying Party’s choice. Any damages to the assets or
business of the Indemnified Party caused by a failure by the Indemnifying Party
to defend, compromise, or settle a claim or demand in a reasonable and
expeditious manner requested by the Indemnified Party, after the Indemnifying
Party has given Notice that it will assume control of the defense, compromise,
or settlement of the matter, shall be included in the damages for which the
Indemnifying Party shall be obligated to indemnify the Indemnified Party. Any
settlement or compromise of a matter by the Indemnifying Party shall include a
full release of claims against the Indemnified Party that have arisen out of the
indemnified claim or demand. 

15. MISCELLANEOUS PROVISIONS 

     15.1 Notice.
Notices shall be effective (i) three (3) business days after being deposited
in the United States mail, with sufficient first-class postage and fees prepaid,
(ii) the next business day if sent by Federal Express, United Parcel Service, or
other comparable overnight courier service, for overnight delivery, all charges
prepaid or charged to the sender, (iii) the date of recipient’s actual receipt,
if personally delivered to the recipient, or (iv) if sent by fax, and such
transmission is confirmed by a fax delivery confirmation receipt generated by
the sender’s fax machine in the ordinary course of business, effective the date
of such receipt if received before 5:00 P.M. on a business day, but otherwise
effective on the next business day. 

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

     15.3 Currency. All
references to “dollars” or “$” herein means lawful currency of the
United States of America. 

     15.4 Headings. The subject
headings of Sections are included for purposes of convenience only, and shall
not affect the construction or interpretation of any of its provisions. 

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

     15.6 Modification. No
change, amendment or other modification of this Agreement shall be valid unless
made in writing and duly executed by both Parties. 

     15.7 Force Majeure. Except for
the obligation to make payments when 

26

due hereunder, the obligations of a Party shall be suspended to
the extent and for the period that performance is prevented by any cause,
whether foreseeable or unforeseeable, beyond its reasonable control, including
labor disputes (however arising and whether or not employee demands are
reasonable or within the power of the Party to grant); acts of nature; Laws,
instructions or requests of any government or governmental entity; judgments or
orders of any court; inability to obtain on reasonably acceptable terms any
public or private license, permit or other authorization; curtailment or
suspension of activities to remedy or avoid an actual or alleged, present or
prospective violation of Environmental Laws; action or inaction by any federal,
state or local agency that delays or prevents the issuance or granting of any
approval or authorization required to conduct operations beyond the reasonable
expectations of the Party seeking the approval or authorization; acts of war or
conditions arising out of or attributable to war, whether declared or
undeclared; riot, civil strife, insurrection or rebellion; fire, explosion,
earthquake, storm, flood, sink holes, drought or other adverse weather
condition; delay or failure by suppliers or transporters of materials, parts,
supplies, services or equipment, or by contractors’ or subcontractors’ shortages
of, or inability to obtain, labor, transportation, materials, machinery,
equipment, supplies, utilities or services; accidents; breakdown of equipment,
machinery or facilities; actions by native rights groups, environmental groups,
or other similar special interest groups; or any other cause whether similar or
dissimilar to the foregoing. The affected Party shall promptly give Notice to
the other Party of the suspension of performance, stating therein the nature of
the suspension, the reasons therefor, and the expected duration thereof. The
affected Party shall resume performance as soon as reasonably possible. 

     15.8 Rule Against
Perpetuities. The Parties do not intend that there shall be any violation of
the Rule Against Perpetuities, the Rule Against Unreasonable Restraints on the
Alienation of Property, or any similar rule. Accordingly, if any right or option
to acquire any interest in the Claims and/or the Real Property, in a
Participating Interest, or in any assets exists under this Agreement, such right
or option must be exercised, if at all, so as to vest within the time period(s)
permitted by applicable rules. If, however, any such violation should
inadvertently occur, a court shall reform that provision in such a way as to
approximate most closely the intent of the Parties within the limits permissible
under such rules. 

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

     15.10 Entire Agreement;
Successors and Assigns. This Agreement contains the entire understanding of
the Parties and supersedes all prior agreements and understandings between the
Parties relating to the subject 

27

matter hereof. This Agreement shall (and does) bind and inure
to the benefit of the respective successors and permitted assigns of the
Parties.

     15.11 Memorandum. At the
request of either Party, a memorandum or short form of this Agreement shall be
prepared by Del Toro, executed and acknowledged by both Parties, and delivered
to Del Toro for recording and filing in those appropriate recording districts
and filing offices as may be necessary to provide constructive notice of this
Agreement and the rights and obligations of the Parties hereunder. Unless both
Parties agree, this Agreement shall not be recorded. 

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

     15.13 No Third Party
Beneficiaries. This Agreement is made solely for the benefit of the Parties
to this Agreement and their respective permitted successors, transferees and
assigns, and no other person or entity shall have or acquire any right by virtue
of this Agreement as a third party beneficiary or otherwise. 

     15.14 Interpretation.
Although the first draft of this Agreement was prepared by counsel to Bowerman’s
parent company (as further detailed below in Section 15.17), and although this
Agreement has been reviewed, further negotiated, and approved by Del Toro’s
counsel, because both Parties benefit from the memorialization of a detailed
joint operations agreement, Del Toro shall reimburse Bowerman’s parent company
for sixty percent (60%) of the costs invoiced to same by its law firm to prepare
this Agreement. 

     15.15 Including; Disjunctive /
Conjunctive. The term “including” means “including, without
limitation.” Usage of “and/or” means both the conjunctive and disjunctive
and is intended for expansive interpretation and not to limit the options
available to each Party affected thereby.

     15.16 Miscellaneous. This
Agreement’s time periods shall be computed by excluding the first day and
including the last. Except if otherwise specifically noted, all periods
referencing days shall be measured by calendar days, and, if the last day in a
given period falls on a weekend or legal holiday, then the last day thereof
shall be the next business day thereafter. Except as may otherwise be specified
herein, no action by a Party against another for breach hereof is limited to
breach of contract remedies.

     15.17 INDEPENDENT
INVESTIGATION. THIS AGREEMENT HAS BEEN PREPARED BY COUNSEL TO BOWERMAN’S
PARENT COMPANY SOLELY FOR BOWERMAN’S BENEFIT. WHILE DEL TORO’S PRESIDENT
INDICATES 

28

THAT IT CONTEMPLATES RETAINING THAT SAME LAW FIRM (NAMELY,
RUTLEDGE LAW CENTER LTD.) TO PROVIDE LEGAL COUNSEL TO THE PARTIES HEREUNDER, DEL
TORO HEREBY ACKNOWLEDGES THAT SAID FIRM IS NOT REPRESENTING DEL TORO WITH REGARD
TO THE TRANSACTION MEMORIALIZED HEREIN. FOR THE AVOIDANCE OF DOUBT, DEL TORO
HEREBY EXPRESSLY WAIVES AND CONSENTS TO ANY CONFLICT THAT MIGHT EXIST BY VIRTUE
OF RUTLEDGE LAW CENTER LTD.’S SOLE REPRESENTATION OF BOWERMAN WITH REGARD TO THE
UNDERLYING TRANSACTION. WITH THE FOREGOING IN MIND, EACH PARTY HAS:
INDEPENDENTLY EVALUATED THE DESIRABILITY OF ENTERING INTO THIS AGREEMENT AND IS
NOT RELYING ON ANY REPRESENTATION, GUARANTEE OR STATEMENT NOT SET FORTH HEREIN;
AND HAS BEEN AFFORDED THE OPPORTUNITY TO SEEK LEGAL COUNSEL WITH REGARD TO ITS
RIGHTS AND OBLIGATIONS AND HAS CONSULTED OR REFUSED SUCH COUNSEL, AND
ACCORDINGLY NEGOTIATED THIS AGREEMENT. 

     The Parties have each executed this
Agreement by duly authorized representative and each Party hereby acknowledges
that it understands and is bound by this Agreement. 

	BOWERMAN HOLDINGS, LLC, a 	DEL TORO SILVER CORP., a 
	California limited liability company 	Nevada domestic corporation 
	 	 
	By: Trinity Alps Resources, Inc., Manager 	  
	           By:
      /s/Patrick A. Fagen 	By: /s/Greg Painter 
	                   Patrick
      A. Fagen, President 	        Greg Painter,
      President 
	 	 
	Date: November 14, 2011 	Date: November 14, 2011 

29

EXHIBIT A 

Description of the Claims 

30

EXHIBIT B 

36-Month Work Plan 

YEAR ONE: 

 

YEAR TWO: 

 

YEAR THREE: 

31

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