Document:

Exhibit 10.1

    CORPORATE
      ADVISORY AGREEMENT

    

    

    This
      “Corporate Advisory Agreement” is entered into this 7th
      day
      of December 2006 by and between Steven Antebi or Nominee (“SA” or the
“Consultant”) and EGPI Firecreek, Inc., Inc. (“EGPI Firecreek, Inc.” or the
“Company’).  

    

    I. ENGAGEMENT.
       EGPI
      FIRECREEK, INC. hereby engages and retains SA as a Corporate Advisor to perform
      the Services (as that term is hereinafter defined) and SA hereby accepts such
      appointment on the terms and subject to the conditions hereinafter set forth
      and
      agrees to use its best efforts in providing such Services.

    

    II. INDEPENDENT
      CONTRACTOR.
       SA shall
      be,
      and in all respects shall be deemed to be, an independent contractor in the
      performance of its duties hereunder, any law of any jurisdiction to the contrary
      notwithstanding.  SA shall be solely responsible for making all payments to
      and on behalf of its employees and subcontractors, including those required
      by
      law, and EGPI FIRECREEK, INC. shall in no event be liable for any debts or
      other
      liabilities of SA.  SA shall not, by reason of this Agreement or the
      performance of the Services, be or be deemed to be, an employee, agent, partner,
      co-venturer or controlling person of EGPI  FIRECREEK, INC., and SA shall
      have no power to enter into any agreement on behalf of, or otherwise bind EGPI
       FIRECREEK, INC. Subject to the following sentence, SA shall not have
      or be deemed to have, fiduciary obligations or duties to EGPI  FIRECREEK,
      INC. and shall be free to pursue, conduct and carry on for its own account
      (or
      for the account of others) such activities, employments, ventures, businesses
      and other pursuits as SA in its sole, absolute and unfettered discretion, may
      elect.  Notwithstanding the above, no activity, employment, venture,
      business or other pursuit of SA during the term of this Agreement shall conflict
      with SA’s obligations under this Agreement or be adverse to EGPI FIRECREEK,
      INC.’s interests during the term of this Agreement.

    

    III. SERVICES.

    

    1. Services.
       SA agrees to provide Corporate Advisory services to EGPI FIRECREEK, INC.,
      which shall include, but not be limited to, the following services (hereafter
      collectively referred to as the “Services”):

    

    (a) Advise
      and assist EGPI  FIRECREEK, INC. in identifying one or more individuals,
      firms or entities (the “Candidate(s)”) who may have an interest in providing
      debt or investment capital in the form of bridge Financing, private placement
      Financing, public equity Financing, any other sale of Securities or in pursuing
      a Business Transaction with EGPI  FIRECREEK, INC..  As used in this
      Agreement, the term “Business Transaction” shall be deemed to mean any form of
      merger, acquisition, joint venture, licensing agreement, product sales and/or
      marketing agreement, distribution agreement, combination and/or consolidation,
      involving EGPI FIRECREEK, INC. and/or any of its affiliates and any other
      entity.  For the purposes of this Agreement, "Security"
      shall
      mean:  (i) any stock or other security or ownership interest of the Company
      (or entity succeeding or surviving the Company in the case of an M&A
      Transaction) of the class, series and with the same terms as is issued in
      connection with a Financing or M&A Transaction (as defined below), as the
      case may be, or (ii) if no such stock, security or ownership interest is issued
      in connection with a Financing or M&A Transaction, the existing common stock
      or unit of ownership interest of the Company (or entity succeeding or surviving
      the Company in the case of an M&A Transaction). 

     

    (b) Advise
      EGPI FIRECREEK, INC. on obtaining introductions to potential institutional
      investors, merchant bankers, investment bankers or other institutions that
      may
      have an interest in participating in a Business Transaction with EGPI FIRECREEK,
      INC..  

     

    (c) Advise
      EGPI FIRECREEK, INC. in preparing presentations to potential institutional
      investors, merchant bankers, investment bankers or other institutions that
      may
      have an interest in participating in a Business Transaction with EGPI FIRECREEK,
      INC.  Such assistance shall include assisting EGPI  FIRECREEK, INC. in
      assembling all internal financial and operational information that a third
      party
      would expect to review in connection with its due diligence review of EGPI
      FIRECREEK, INC., preparing an analysis of EGPI FIRECREEK, INC.’s industry;
      preparing an executive summary of EGPI FIRECREEK, INC.’s business plan and
      financial forecasts.  It is understood that EGPI FIRECREEK, INC. shall be
      the Author of all such materials, but that SA will assist management of EGPI
      FIRECREEK, INC. in preparing this information. 

     

    (d) Advise
      EGPI FIRECREEK, INC. in the selection and retention of one or more investor
      relations firms which may be retained by EGPI FIRECREEK, INC. to provide
      information concerning EGPI FIRECREEK, INC. to a variety of third parties
      through various media.  

     

    (e) Advise
      EGPI FIRECREEK, INC. on technical, legal and accounting due diligence aspects
      of
      acquiring related businesses, to enable well informed decision making
      methodology. Additionally, introduce appropriate interim strategies to
      efficiently merge cultural differences in rapidly changing financial
      structures.

     

    (f) Introduce
      EGPI FIRECREEK, INC. to potential targets for acquisition.

     

    (g) Identify,
      analyze, structure and/or negotiate sales and/or acquisitions of other
      businesses, including without limitation, through merger, stock purchase, and
      any other structure relating to such sales or acquisitions

    

    SA
      shall
      not perform any services that would require it to hold a securities
      broker-dealer license or to register in any capacity with the U.S. Securities
      and Exchange Commission, the California Department of Corporations, or any
      other
      regulatory agency or SRO.

    

    For
      purposes of this Agreement, a “Financing” shall mean any purchase of any debt or
      equity securities of the Company.  An “M&A Transaction” shall mean (i)
      any merger, consolidation, reorganization or other business combination pursuant
      to which the businesses of a third party are combined with that of the Company,
      (ii) the acquisition, directly or indirectly, by the Company of all or a
      substantial portion of the assets or common equity of a third party by way
      of
      negotiated purchase or otherwise, (iii) the acquisition, directly or indirectly,
      by a third party of all or a substantial portion of the assets or common equity
      of the Company by way of negotiated purchase or otherwise, or (iv) any joint
      venture, licensing agreement, royalty agreement, distribution agreement or
      any
      similar transaction to which the Company is party.

     

    2. Best
      Efforts.  SA
      shall devote such time and effort, as both parties deems commercially reasonable
      and adequate under the circumstances, to the affairs of EGPI FIRECREEK, INC.
      to
      render the Services contemplated by this Agreement.  SA is not responsible
      for the performance of any Services that may be rendered hereunder without
      EGPI
      FIRECREEK, INC. providing the necessary information in writing prior thereto,
      nor shall SA provide any services that constitute the rendering of any legal
      opinions or performance of work that is in the ordinary purview of the certified
      public accountant.  SA cannot guarantee results on behalf of EGPI
      FIRECREEK, INC., but shall pursue all reasonable avenues available through
      its
      network of contacts.  At such time as an interest is expressed by a third
      party, SA shall notify EGPI FIRECREEK, INC. and advise it as to the source
      of
      such interest and any terms and conditions of such interest.  The
      acceptance and consummation of any transaction is subject to acceptance of
      the
      terms and conditions by EGPI FIRECREEK, INC. in its sole discretion.  It is
      understood that a portion of the compensation paid hereunder is being paid
      by
      EGPI FIRECREEK, INC. to have SA remain available to advise it on transactions
      on
      an as-needed basis.

    

    3. Availability
      of SA.
       In conjunction with the Services, SA agrees to:

    

    (a) Make
      itself available to the officers of EGPI FIRECREEK, INC. at a mutually agreed
      upon place during normal business hours unless mutually acceptable for
      reasonable periods of time, subject to reasonable advance notice and mutually
      convenient scheduling, for the purpose of advising EGPI FIRECREEK, INC. in
      the
      preparation of such reports, summaries, corporate and/or transaction profiles,
      due diligence packages and/or other material and documentation (“Documentation”)
      as shall be necessary, in the opinion of SA, to properly present EGPI FIRECREEK,
      INC. to other entities and individuals that could be of benefit to EGPI
      FIRECREEK, INC..

     

    (b) Make
      itself available for telephone conferences with the principal sales and/or
      operating officer(s) of EGPI FIRECREEK, INC. during normal business
      hours.

    

    4. Authority
      to Engage Other Service Providers.
       SA shall have the authority to engage other third parties to assist it in
      providing services to EGPI FIRECREEK, INC., and to pay compensation to such
      third parties, including but not limited to portions of its compensation to
      be
      received under this Agreement.  EGPI FIRECREEK, INC. shall not be
      responsible for the fees or other charges of such third parties unless and
      to
      the extent that EGPI FIRECREEK, INC. otherwise agrees with SA or such third
      party by its written signed authorization acknowledged by SA or such third
      party.

    

    IV. EXPENSES.

    

    1. General
      Expenses.
       It is expressly agreed and understood that each party shall be responsible
      for its own normal and reasonable out-of-pocket expenses which shall include,
      but shall not be limited to, accounting, long distance communication, and the
      printing and mailing of materials between the parties hereto; provided, however,
      that this shall not include expenses incurred by SA in connection with the
      reproduction, printing or special delivery of Business Plans, Corporate Profiles
      or other similar documents, and such expenses shall be approved in advance
      and
      in writing by EGPI FIRECREEK, INC.

    

    2. Travel
      Expenses.
       Any travel expenses incurred by SA in the rendering of its Services
      hereunder shall be reimbursed by EGPI FIRECREEK, INC. on a monthly basis.
 This shall only apply to travel that is requested by or approved in
      advance and in writing by EGPI FIRECREEK, INC.

    

    V. COMPENSATION. In
      consideration for the Services rendered pursuant to this Agreement, EGPI
      FIRECREEK, INC. agrees that SA shall receive the following
      compensation:

    

    1. Equity
      Compensation.
       SA (or any designee) shall receive equity compensation in the amount of
      twenty million (20,000,000) common restricted shares of the company upon signing
      this agreement. SA agrees to file a 13D or other regulatory filing as or if
      required and where applicable.

    

    2. RESTRICTIONS.

    

    a. INVESTMENT
      INTENT. Lender agrees that the shares being issued pursuant to this agreement
      may be sold, pledged, assigned, hypothecate or otherwise transferred, with
      or
      without consideration (a “Transfer”), only pursuant to an effective registration
      statement under the 1933 Act, or pursuant to an exemption from registration
      under the 1933 Act, the availability of which is to be established to the
      satisfaction of Company.

    

    b. RESTRICTED
      SECURITIES. The Lender understands common shares underlying this Agreement
      will
      be deemed as "restricted securities” under applicable U.S. federal and state
      securities laws inasmuch as they are being acquired from the Company in a
      transaction not involving a public offering and that pursuant to these laws
      and
      applicable regulations, the Lender must hold the Shares unless they are
      registered with the Securities and Exchange Commission and qualified by state
      authorities, or an exemption from such registration and qualification
      requirements is available. The Lender further acknowledges that if an exemption
      from registration or qualification is available, it may be conditioned on
      various requirements including, but not limited to, the time and manner of
      sale,
      the holding period for the Shares, and on requirements relating to the Lender
      which are outside of the Company’s control, and as to which the Company is under
      no obligation and may not be able to satisfy. In this connection, the Lender
      represents that it is familiar with SEC Rule 144, as presently in effect, and
      understands the resale limitations imposed thereby and by the Securities
      Act.

    

    c.
       VOTING.
      To the extent available under Nevada Revised Statutes or a period of one year,
      SA agrees to Vote with and for Management, including at elections, and issues
      presented to a vote of the Shareholders, from time to time, and therefore to
      be
      consistent in its voting with various terms of Voting Agreements in place with
      Management, and other Shareholders providing similar consent action by specific
      proxy or other acceptable written method.

    

    VI. ADDITIONAL
      ADVISORY FEES.  

    

    1. EGPI
       FIRECREEK, INC. agrees to consider engagement of SA as a consultant in
      connection with future Business Transactions on terms mutually agreeable in
      writing providing for Services commensurate with those provided under this
      Agreement and compensation payable to SA appropriate for the scope of services
      and the size of the proposed Business Transactions as long as SA has provided
      to
      EGPI Firecreek, Inc. by virtue of its current consulting work or introductions
      to debt or equity financing, a closed Business Transaction to the benefit of
      EGPI Firecreek Inc. in the amount of three million dollars ($3,000,000).
 

    

    2. Without
      limiting the generality of the foregoing Section 1, SA shall receive
      compensation for successful M&A transaction involving the Company of six
      percent (6%) of the first million dollars ($1,000,000) of Consideration, four
      percent (4%) of the second million dollars ($2,000,000) of Consideration, two
      percent (2%) of the third million ($3,000,000) and a flat one percent (1%)
      of
      the total consideration that exceeds three million dollars ($3,000,000).
      Warrants may be included as additional Consideration for a successful M&A
      transaction. Any Warrants will be subject to terms, provisions and conditions
      then acceptable by the Company and SA and set forth in exhibit “A” hereto. For
      the purposes of this Agreement, "Consideration"
      and any
      definition thereof shall be determined on a case by case basis, mutually
      agreeable in writing, and as then may be applicable.

    

    3. For
      any
      Business Transaction resulting in a Equity Financing closing at any time prior
      to the end of this Agreement, with respect to which SA has provided Services
      under this Agreement, SA will receive 10% of cash compensation. Warrant
      Compensation will be set forth in Exhibit “B” attached hereto. EGPI FIRECREEK,
      INC. shall pay this compensation with respect to any Business Transactions
      for a
      period of 18 months after the termination of this Agreement.  EGPI
      FIRECREEK, INC. acknowledges that such compensation shall be paid as part of
      the
      consideration for all services SA has provided which has resulted in a closed
      Equity Financing Business Transaction.

    

    4. For
      any
      Business Transaction resulting in a Debt Financing closing at any time prior
      to
      the end of this Agreement, with respect to which SA has provided Services under
      this Agreement, SA will receive as a minimum 2% of cash
      compensation.

    

    VII. REPRESENTATIONS,
      WARRANTIES AND COVENANTS.

    

    1. Disclosure
      of Information. EGPI
      FIRECREEK, INC. covenants that it will provide SA to the best of its ability
      with complete, accurate and truthful information and with all material facts
      that will enable SA to assist EGPI FIRECREEK, INC. in the preparation of due
      diligence materials and reports that accurately describe EGPI FIRECREEK, INC.,
      its financial condition and business operations and do not contain any
      misleading information or omissions to state information that would make such
      materials or reports misleading. SA covenants that it will disclose information
      concerning EGPI FIRECREEK, INC. only as required to perform its services
      hereunder or as approved by EGPI FIRECREEK, INC. 

    

    2. Cooperation
      and Delivery of Corporate Information.
       EGPI FIRECREEK, INC. will cooperate with SA, and will promptly provide SA
      with all pertinent materials and requested information in order for SA to
      perform its Services pursuant to this Agreement

    

    3. Timely
      Information and Updates. EGPI
      FIRECREEK, INC. shall use its commercially reasonable efforts to keep
      SA up to date and apprised of all business, market and legal developments
      related to EGPI FIRECREEK, INC. and its operations and management, including
      the
      following:

    

    (a) copies
      of
      all amendments, revisions and changes to its business and marketing plans,
      banking agreements or debt facilities, bylaws, articles of incorporation,
      private placement memoranda, key contracts, employment and consulting agreements
      and other operational agreements;

     

    (b) copies
      of
      all communications, forms, reports and registration statements filed with any
      state or federal securities administrator, including without limitation, the
      Securities and Exchange Commission (the “SEC”), and the National Association of
      Securities Dealers, Inc. (“NASD”);

    

    (c) monthly,
      quarterly and annual financial statements, including balance sheets, income
      statements, cash flows and all other documents provided or generated by EGPI
       FIRECREEK, INC. in the normal course of its business and requested by SA
      from time to time.

    

    4. Corporate
      Authority. Both
      EGPI FIRECREEK, INC. and SA have full legal authority to enter into
      this Agreement and to perform their respective obligations as provided for
      in
      this Agreement.  The individuals whose signatures appear below are
      authorized to sign this Agreement on behalf of their respective
      corporations.

    

    5. SA
      Ability.
       SA represents and warrants to EGPI FIRECREEK, INC. that (a) it has the
      experience and ability as may be necessary to perform all the required Services
      with a high standard of quality, (b) all Services will be performed in a
      professional manner, and (c) all individuals it provides to perform the Services
      will be appropriately qualified and subject to appropriate agreements concerning
      the protection of trade secrets and confidential information of EGPI FIRECREEK,
      INC. which such persons may have access to over the term of this
      Agreement.

    

    6. Non-solicitation.
       Pursuant to this Agreement, it is contemplated that SA shall supply to the
      Company and its officers and directors certain information concerning investors.
       Neither the Company, nor any of its majority owned or controlled entities,
      or any of their officers and directors, or any affiliates, associates,
      employees, consultants, or other related parties, shall, without the prior
      written consent of SA, contact any of such investors and other entities
      introduced directly or indirectly by SA to EGPI FIRECREEK, INC. for the purpose
      of an investment in the Company or an investment in any other entity or
      enterprise controlled by or affiliated with the Company or its directors,
      officers or employees.   EGPI FIRECREEK, INC., its controlled
      entities, officers, directors, affiliates, employees or other related parties
      shall not, either directly or indirectly, whether with or through any person,
      firm, partnership, corporation or other entity or venture now existing or
      hereafter created, solicit or employ, or attempt to solicit or employ, any
      person who is or has been within the preceding twelve (12) months an officer,
      director, partner, manager, agent, employee, subcontractor or consultant of
      SA.

    

    7.
       Ex
      Officio Relationship with the Company.
      Pursuant to this Agreement, SA agrees to become Ex Officio member of the Board
      of Directors of EGPI FIRECREEK, INC. Pursuant to the Company’s then required
      nomination and approval processes SA would agree to become a member of the
      Board
      of Directors subject to D&O insurance suitable to and approved by
      SA.

    

    IX. TERM
      AND TERMINATION.
      

    

    1. From
      the
      date this Agreement is fully executed, the “Term” of this Agreement shall be
      twelve (12) months, unless terminated by either party, with or without cause,
      upon delivery of a 30 day written notice by one party to the other; provided,
      however, the termination or expiration of this Agreement shall not in any way
      limit, modify, or otherwise affect the rights of SA to: (i) receive its entire
      compensation pursuant to the terms of this Agreement in connection with a
      Financing or M&A Transaction introduced or provided by SA involving the
      Company during the Term of this Agreement or subsequent to the termination
      or
      expiration of this Agreement, (ii) receive reimbursement of approved expenses
      incurred by SA up to the date of termination or expiration of this Agreement
      pursuant to the terms of Section V and VI hereof, and (iii) be protected by
      the
      indemnification rights, waivers and other provisions of this Agreement.
 The Company hereby covenants and agrees that it shall not enter into any
      M&A Transaction unless the entity succeeding or surviving such M&A
      Transaction agrees in writing to be bound by all terms and conditions of this
      Agreement applicable to the Company, including, without limitation, the payment
      of all fees and expenses as provided herein.

    

    2. In
      the
      event of early termination for any reason other than a breach of this Agreement
      by SA, EGPI FIRECREEK, INC. shall pay any compensation earned under the terms
      of
      this Agreement which has not yet been paid by EGPI FIRECREEK, INC. to SA, if
      any, including payment for all merger and acquisition activity as forth in
      Article VI, and reimburse SA for all reasonable expenses incurred by SA until
      the date of termination.  

    

    IX. CONFIDENTIAL
      DATA.

    

    1. SA
      shall
      not divulge to others, and shall cause its affiliates not to disclose to others,
      any trade secret or confidential information, knowledge, or data concerning
      or
      pertaining to the business and affairs of EGPI FIRECREEK, INC., obtained by
      SA
      as a result of its engagement hereunder, except to the extent necessary for
      SA
      to perform its services or as otherwise authorized in writing by EGPI FIRECREEK,
      INC.  SA represents and warrants that it has established appropriate
      internal procedures for protecting the trade secrets and confidential
      information of EGPI FIRECREEK, INC., including, without limitation, restrictions
      on disclosure of such information to employees and other persons who may be
      engaged in rendering services to any person, firm or entity which may be a
      competitor of EGPI FIRECREEK, INC..

    

    2. EGPI
      FIRECREEK, INC. shall not divulge to others, any trade secret or confidential
      information, knowledge, or data concerning or pertaining to the business and
      affairs of SA, obtained as a result of its engagement hereunder, unless
      authorized, in writing by SA.

    

    3. SA
      shall
      not be required in the performance of its duties to divulge to EGPI FIRECREEK,
      INC., or any officer, director, agent or employee of EGPI FIRECREEK, INC.,
      any
      secret or confidential information, knowledge, or data concerning any other
      person, firm or entity, which SA may have or be able to obtain other than as
      a
      result of the relationship established by this Agreement.  SA shall notify
      EGPI FIRECREEK, INC. of any arrangement(s) that is or could be considered
      competitive.

    

    4. EGPI
      FIRECREEK, INC. agrees that all work product and materials generated by SA,
      to
      be identified and acknowledged by SA and EGPI FIRECREEK, INC. and further
      acknowledged in writing for each required instance, are based on methodologies,
      processes and systems which are proprietary to SA and constitute trade secrets
      of SA. As a result, EGPI FIRECREEK, INC. shall not use and return all identified
      and agreed SA work product and other SA materials to SA upon termination of
      this
      Agreement.

    

    5. The
      Company acknowledges that all advice (written or oral) given by SA to the
      Company in connection with SA 's engagement hereunder is intended solely for
      the
      benefit and use of the Company and its Board of Directors in considering a
      Financing or M&A Transaction to which the advice relates, and the Company
      agrees that no person or entity, including without limitation, the Company
      after
      the termination of this Agreement, shall be entitled to make use of or rely
      upon
      the advice of SA, and no such opinion or advice shall be used for any other
      purpose or reproduced, disseminated, quoted or referred to at any time, in
      any
      manner or for any purpose, nor may the Company make any public references to
      SA,
      or use SA 's name in any annual reports or any other reports or releases of
      the
      Company without SA 's prior written consent and unless SA remains engaged as
      a
      consultant by the Company. It is understood that a Form 8-K filing for any
      Restricted Stock Compensation received hereunder is required for disclosure
      by
      the Company (Registrant) under the rules and regulations of the Securities
      and
      Exchange Commission.

    

     

    XI. OTHER
      MATERIAL TERMS AND CONDITIONS.

    

    1. Indemnity.

    

    (a) Indemnification
      by EGPI FIRECREEK, INC.

    

    EGPI
      FIRECREEK, INC. agrees to indemnify and hold harmless SA, its affiliates and
      their respective officers, directors, managers, partners, shareholders and
      agents, from any claims, lawsuits or litigation arising from disputes between
      EGPI FIRECREEK, INC. and any third parties other than those arising from the
      gross negligence or willful misconduct of SA. 

    

    (b) Indemnification
      by SA.
       SA agrees to indemnify and hold harmless EGPI FIRECREEK, INC. from any
      claims, lawsuits or litigation arising from disputes between SA and any third
      parties other than those arising from the gross negligence or willful misconduct
      of EGPI FIRECREEK, INC. 

    

    2. Arbitration.  The
      Parties hereto agree and acknowledge that this agreement is
      subject to the provisions of the Federal Arbitration Act.   Except to
      the extent described in the last sentence of this paragraph, any controversy
      or
      claim arising out of or relating to this engagement agreement, or the breach
      thereof, shall be settled by arbitration administered by the American
      Arbitration Association under its Commercial Arbitration Rules, and judgment
      on
      the award rendered by the arbitrator may be entered in any court having
      jurisdiction thereof.  Any arbitration proceedings will be conducted in
      Orange or Los Angeles Counties, California.  The arbitrator shall have no
      authority to award punitive damages or any other damages not measured by the
      prevailing party’s actual damages, and may not make any ruling, finding or award
      that does not conform to the terms and conditions of this engagement agreement.
       Notwithstanding the foregoing, nothing contained in this engagement
      agreement shall be construed to restrict in any way the right of any party
      hereto to seek injunctive or similar equitable relief in any court of competent
      jurisdiction with respect to any threatened breach of the provisions of this
      agreement or any of the respective parties’ obligations hereunder.

    

    3. Attorneys
      Fees.
      In the
      event any of the parties hereto are required to commence any action or
      proceeding in order to enforce the obligations of the other parties hereto,
      then
      the prevailing party shall be entitled to reasonable attorney fees and costs
      incurred in any such action.

    

    4. Provisions.
       Neither termination nor completion of the assignment shall affect the
      provisions of this Agreement, which shall remain operative and in full force
      and
      effect.

    

    5. Additional
      Instruments.
       Each of the parties shall from time to time, at the request of others,
      execute, acknowledge and deliver to the other party any and all further
      instruments that may be reasonably required to give full effect and force to
      the
      provisions of this Agreement.

    

    6. Entire
      Agreement. Each
      of the parties hereby covenants that this Agreement, together with
      the exhibits attached hereto as earlier referenced, is intended to and does
      contain and embody herein all of the understandings and agreements, both written
      or oral, of the parties hereby with respect to the subject matter of this
      Agreement, and that there exists no oral agreement or understanding or expressed
      or implied liability, whereby the absolute, final and unconditional character
      and nature of this Agreement shall be in any way invalidated, empowered or
      affected.  There are no representations, warranties or covenants other than
      those set forth herein.

    

    7. Laws
      of the State of California. This
      Agreement shall be deemed to be made in, governed by and interpreted
      under and construed in all respects in accordance with the laws of the State
      of
      California, irrespective of the country or place of domicile or residence of
      either party. 

    

    8. Assignment.
       This Agreement shall inure to the benefit of and be binding upon the
      parties hereto and their respective successors and assigns; provided, however,
      that SA may not assign any or all of SA’s rights or duties hereunder without the
      prior written consent EGPI FIRECREEK, INC., which consent shall not be
      unreasonably withheld.  Notwithstanding the foregoing, SA may assign any
      portion of its Compensation as outlined herein to its employees, affiliates,
      sub-contractors or subsidiaries in its sole discretion. EGPI FIRECREEK, INC.
      agrees that it shall require, as a condition of closing any Business Transaction
      in which EGPI FIRECREEK, INC. is not the surviving entity but the shareholders
      of EGPI FIRECREEK, INC. receive a majority of the voting interests of the
      surviving entity, that the surviving entity agree to assume the obligations
      of
      EGPI FIRECREEK, INC. under this Agreement.

    

    9. Originals.
       This Agreement may be executed in any number of counterparts, each of
      which so executed shall be deemed an original and constitute one and the same
      agreement.  Facsimile copies with signatures shall be given the same legal
      effect as an original.

    

    10. Notices. Each
      party shall at all times keep the other informed of its principal
      place of business if different from that stated herein, and shall promptly
      notify the other of any change, giving the address of the new place of business
      or residence.  Notices provided under this Agreement shall be provided in
      writing and delivered by hand, by facsimile transmission or by overnight
      courier.  Notices shall be deemed received upon personal receipt if
      personally delivered, upon completion of facsimile transmission with electronic
      evidence of receipt, or upon delivery with evidence of delivery.  Notices
      shall be delivered to the information set forth below the signatures of each
      party hereto, or to such other address, as a party shall have provided in
      writing to the other party.

    

    11. Modification
      and Waiver. A
      modification or waiver of any of the provisions of this Agreement shall be
      effective only if made in writing and executed with the same formality as this
      Agreement.  The failure of any party to insist upon strict performance of
      any of the provisions of this Agreement shall not be construed as a waiver
      of
      any subsequent default of the same or similar nature or of any other
      nature.

    

    

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

    

    

    

    

    STEVEN
      ANTEBI OR NOMINEE   EGPI
      FIRECREEK, INC.  

    

    /s/
      Steven Antebi     /s/
      Dennis Alexander  

    ___________________________   ___________________________

    By:
      Steven Antebi or Nominee   By:  
      Dennis Alexander

    Its:
      Chairman, Principle Ex Off, & CFOMexoro Exhibit 10.5

    Return
      to Main Document

     

    Exhibit
      10.5

    ANEXO
      C

    VERSION
      EN INGLES

    

    THIS
      AGREEMENT is made and entered in the City of Chihuahua, State of Chihuahua
      as of
      the 18th
      day of
      August, 2005

    

    AMONG:

    

    COMPAÑÍA
      MINERA DE NAMIQUIPA, S. A. DE C. V. a company duly incorporated and validly
      existing pursuant to the laws of the United Mexican States, herein represented
      by MARIO HUMBERTO AYUB TOUCHE holding general powers of attorney for legal
      representation and collections, acts of administration and domain (hereinafter
      referred to as “Namiquipa”)

    

    MINERA
      RIO TINTO, S. A. DE C. V. a company duly incorporated and validly existing
      pursuant to the laws of the United Mexican States, herein represented by MARIO
      HUMBERTO AYUB TOUCHE holding general powers of attorney for legal representation
      and collections, acts of administration and domain (hereinafter referred to
      as
“MRT”)

    

    Y

    

    MARIO
      HUMBERTO AYUB TOUCHE, acting in his own rights, a Citizen of México, married, a
      businessman, born in Chihuahua, Chih. on September 12, 1953and having a domicile
      at San
      Antonio No. 2036 Chihuahua, Chihuahua
      (hereinafter referred to as “Ayub”);

    

    (“Namiquipa”,
      “MRT” and “Ayub” shall hereinafter be collectively referred to as the
“Concessionaires”);
      

    

    OF
      THE
      FIRST PART

    

    AND:

    

    SUNBURTS
      MINING DE MÉXICO, S. A. DE C. V. a company duly incorporated and validly
      existing pursuant to the laws of the United Mexican States, herein represented
      by TRACY ALLIN MOORE in his capacity as Sole Administrator holding general
      powers of attorney for legal representation and collections, acts of
      administration and domain, and having an office at Av. Del Mar # 1022 - 5 Zona
      Costera, Mazatlán, Sinaloa, C. P. 82149, (R. F. C. SMM050708TJ7)(hereinafter
      referred to as the “Exploration Company”)

    

    OF
      THE
      SECOND PART

    

    WHEREAS:

    

    
      	A.  	
              The
                Concessionaires are the sole legal and beneficial recorded owners
                of the
                Mining Concessions

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    
      	B.  	
              The
                Concessionaires desire to grant to the Exploration Company, and the
                Exploration Company desires to acquire from the Concessionaires,
                the
                Exploration Rights and the Option to purchase 100% title to the Mining
                Concessions, subject to the terms and conditions herein set forth
                (as
                defined here-below). 

            

    

    

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSES that
      in
      consideration of the mutual warranties and representations herein contained,
      the
      parties agree as follows:

    

    PART
      1

    SCHEDULES
      AND DEFINITIONS

    

    1.2. The
      following Schedules shall form part of this Agreement:

    

    Schedule
      A
      -  Mining
      Concessions

    Schedule
      B
      -  NSR
      Royalty

    Schedule
      C - English
      Version

    

    1.2.
      The
      following terms shall, when used in this Agreement, have the meaning and
      interpretation set forth as follows (except as otherwise expressly provided
      or
      as the context otherwise requires):

    

    this
      Agreement means
      this agreement, as from time to time supplemented or amended by the
      parties,

    

    Area
      of Influence means
      that area that falls within the perimeter of the land area comprised in the
      Mining Concessions,

    

    Commercial
      Production means
      the
      commercial exploitation of ore, but does not include milling for the purpose
      of
      testing or milling or leaching by a pilot plant or during the initial tune-up
      period of a plant. Commercial Production will be deemed to have
      commenced:

    

    (i)
      if a
      plant is located on any portion of the Mining Concessions, on the first day
      of
      the month following the first period of 30 consecutive days during which ore
      has
      been processed through such plant for not less than 90 days from the start-up
      date of such plant, or

    

    (ii)
      if
      no plant is located on any portion of the Mining Concessions, on the first
      day
      of the month following the first period of 90 days during which ore has been
      shipped from the property for the purpose of earning revenue;

    

    Exploration
      Rights means
      those rights described in Part 6 of this Agreement;

    

    Mining
      Concessions
      means
      the mining concessions described in Schedule A hereto and any exploitation
      concessions or other interests into which such concessions, exploitation
      concessions or interests may have been converted;

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    NSR
      Royalty means
      the
      net smelter return royalty to be paid to the Royalty Holder pursuant to Part
      7
      from the net proceeds of sales of mineral products extracted from any portion
      of
      the Mining Concessions, as set out in schedule B attached hereto,

    

    Option
      means
      the
      option granted to the Exploration Company to acquire an undivided 100% right,
      title and interest in the Mining Concessions as provided in Part 4,

    

    Option
      Period means
      the
      period of time during which the Option is in full force and effect, commencing
      from the date hereof and ending on the fourth anniversary of such
      date.

    

    

    PART
      2

    REPRESENTATIONS
      AND WARRANTIES OF THE CONCESSIONAIRES

    

    2.1
      The
      Concessionaires represent and warrant to the Exploration Company
      that

    

    
      	(a)  	
              the
                Concessionaires are the sole legal and beneficial recorded owners
                of the
                Mining Concessions in the proportion and form as set forth in Schedule
                A
                attached hereto and will remain so entitled in accordance with this
                Agreement so as to allow the Exploration Company to exercise the
                Option,

            

    

    

    
      	(b)  	
              the
                Mining Concessions are, as of the date hereof and will remain during
                the
                term of this Agreement, free and clear of all liens, charges and
                claims of
                others and in full compliance with all obligations imposed under
                the
                Mining Act of Mexico and its regulations;

            

    

    

    
      	(c)  	
              no
                person, firm or corporation has any agreement or option, or any right
                or
                privilege capable of becoming an agreement or option for the purchase
                or
                acquisition of any of the Mining
                Concessions,

            

    

    

    
      	(d)  	
              it
                is no adverse claim or challenge against or to the ownership of or
                title
                to any of the Mining Concessions, nor to their knowledge there is any
                basis therefor, and no person, pursuant to the provisions hereof,
                has any
                royalty or other interest whatsoever in production from any of the
                Mining
                Concessions, 

            

    

    

    
      	(e)  	
              the
                Mining Concessions have been duly and validly located and recorded,
                and
                are accurately described herein,

            

    

    

    
      	(f)  	
              while
                this Agreement remains in full force and effect they
                will:

            

    

    

    
      	a.  	
              not
                reduce or file an application to reduce any portion of the surface
                area
                comprising the Mining Concessions, without the written consent of
                the
                Exploration Company; 

            

    

    

    
      	b.  	
              not
                pledge, charge, or offer in collateral any of the rights attached
                to or
                the ownership of the Mining Concessions,

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    
      	c.  	
              execute
                any act that is required, necessary or prudent to prevent any third
                person
                from charging or encumbering, or attempt to charge or encumber the
                rights
                attached to or the ownership of the Mining Concessions,
                

            

    

    

    
      	d.  	
              guarantee
                and secure the pacific possession and enjoyment of the rights herein
                granted to the Exploration Company, and

            

    

    

    
      	e.  	
              not
                do any act inconsistent with the transactions contemplated
                hereunder

            

    

    

    

    PART
      3

    REPRESENTATIONS
      AND WARRANTIES OF THE EXPLORATION COMPANY

    

    
      	3.1  	
              The
                Exploration Company represents and warrants to the Concessionaires
                that
                

            

    

    

    (a)  it
      has
      been duly incorporated and validly exists as a corporation in good standing
      under the laws of the United Mexican States and is lawfully authorized
      to enter
      into this Agreement,

    

    (b)  it
      possesses the legal capacity under Mexican law to acquire, hold and deal as
      a
      proprietor (i) mining concessions located within the territory of Mexico in
      accordance with article 11 of the Mining Act, and (ii) real estate property
      located outside of the constitutionally-restricted area within Mexico in
      accordance with article 10-A of the Foreign Investment Act and article 8 of
      its
      Regulations, 

    

    (c)  it
      is,
      with respect to all required filings with the Registrar of Companies of its
      incorporating jurisdiction, the Mines Recorders’ Office and the Foreign
      Investment Registry, in good standing,

    

    (d)  it
      has
      obtained all necessary approvals, consents, licenses and registrations to enter
      into and perform its obligations hereunder, and in particular, to acquire from
      the Concessionaires the exclusive right and option to purchase an undivided
      100%
      right, title and interest in and to the Mining Concessions,

    

    

    PART
      4

    ACQUISITION
      OF OPTION

    

    4.1. The
      Concessionaires hereby individually and collectively grant to the Exploration
      Company the sole and exclusive right and option but not the obligation to
      purchase an undivided 100% right, title and interest in and to the Mining
      Concessions, free and clear of all charges, encumbrances and claims of others,
      subject to the terms of this Agreement. 

    

    4.1.1. The
      Exploration Company will have exercised the Option by paying the Concessionaires
      the total sum of USD $ 910,000 (Nine Hundred Ten Thousand United States Dollars
      00/100) (the “Purchase Price”) as follows: 

    

    
      	a)  	
              USD
                $ 100,000 (One Hundred Thousand United States Dollars 00/100) by
                November
                30, 2005;

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

      

        	b)  	
                USD
                  $ 60,000 (Sixty Thousand United States Dollars 00/100) by August
                  30,
                  2006;

              

      

       

    

    
      	c)  	
              USD
                $ 140,000 (One Hundred Forty Thousand United States Dollars 00/100)
                by
                August 30, 2007;

            

    

    

    
      	d)  	
              USD
                $ 110,000 (One Hundred Ten Thousand United States Dollars 00/100)
                by
                August 30, 2008;

            

    

    

    
      	e)  	
              USD
                $ 500,000 (Five Hundred Thousand United States Dollars 00/100) on
                the date
                of exercise of the Option and the Exploration Company acquire 100%
                title
                to the Mining Concessions;

            

    

    

    4.1.2. The
      Concessionaires hereby agree that each one of them is entitled to receive
      one-third (33.3%) of all payments to be made pursuant to Clause 4.1.1. and
      that
      each of the Concessionaires shall deliver to the Exploration Company the
      applicable tax receipt for each payment received in accordance hereof. The
      Concessionaires hereby appoint MARIO HUMBERTO AYUB TOUCHE as their legal common
      representative, with sufficient authority in accordance with article 2,554
      of
      the Federal Civil Code of Mexico, so that he, in the name and representation
      of
      the Concessionaires, receive all payments to be made to them as herein set
      out.

    

    The
      making of any option payment set out in Subsection 4.1.1. a) to C) shall not
      obligate the Exploration Company to make any further payment as therein set
      out.  

    

    4.2. Early
      Termination.
      This
      Agreement is an option only. The Exploration Company, but not the
      Concessionaires, may at any time prior to the exercise of the Option relinquish
      its rights acquired hereunder and terminate this Agreement on 30 days' written
      notice to the common representative of the Concessionaires and, in the event
      of
      such termination, this Agreement, except for the obligations of the Exploration
      Company incurred prior to the effective date of termination, will be of no
      further force and effect. 

    

    4.5. Additional
      Obligations.
      During
      the Option Period, the Exploration Company shall maintain the Mining Concessions
      in good standing, including without limitation, making all required payments
      for
      mining duties and filing of assessment reports as provided under applicable
      Mexican law. The Exploration Company shall be responsible for payment of mining
      duties owing on the Mining Concession, including principal amount, late payment
      charges and inflationary adjustments, from January 1,2004. 

     

    PART
      5

    EXERCISE
      OF OPTION

    

    5.1.
       Prior
      to
      the exercise of the Option pursuant to Subsection 4.1.1. the Exploration Company
      shall notify in writing to the Concessionaires its intention to exercise the
      Option (the “Notice to Exercise”). On exercise of the Option as herein set out,
      the Concessionaires and the Exploration Company, or any of its successors or
      assigns as the case may be, shall, within a term of 15 days from the date the
      Notice to Exercise is notified to the Concessionaires, properly sign, notarially
      ratify and submit for registration at the Mines Registry Office of the
      Secretariat of the Economy of Mexico a transfer agreement (the “Transfer
      Agreement”) effecting the transfer to the Exploration Company, or to any of its

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    successors
      or assigns as the case may be, of an undivided 100% interest and title to the
      Mining Concessions, free and clear of all charges, liens, encumbrance and claims
      of others, without any further consideration for the Concessionaires.

    

    5.2. The
      Notice to Exercise shall contain (a) the irrevocable intent of the Exploration
      Company to exercise the Option (b) the date, time and place where the
      Concessionaires and the Exploration Company shall appear to sign and notarially
      ratify the Transfer Agreement and (c) a draft of the Transfer Agreement strictly
      containing the terms and conditions herein set forth. 

    

    

    PART
      6

    RIGHT
      OF ENTRY; EXPLORATION RIGHTS

    

    6.1. Throughout
      the Option Period the Exploration Company, its directors, officers and
      independent contractors shall have the right in respect of the Mining
      Concessions and in accordance with the laws of Mexico to carry out any activity
      conducive to the identification of mineral deposits in any portion of the Mining
      Concessions and the quantification and evaluation of mineral reserves to
      determine their economic recovery, and to 

    

    
      	(a)  	
              enter
                thereon,

            

    

    

    
      	(b)  	
              do
                such prospecting, exploration, development and/or other mining work
                thereon and thereunder as the Exploration Company may determine advisable,
                including, drilling, trenching, excavation activities, geological,
                geochemical and geophysical surveys and the mapping of the results
                therefrom, including airborne surveys; the sampling of soil, stream
                sediments and rocks; metallurgical analyses and tests on samples;
                assaying
                of the mineral content of all sampling and pilot plant
                testing;

            

    

    

    
      	(c)  	
              bring
                upon and erect upon the Mining Concessions buildings, plant, machinery
                and
                equipment as the Exploration Company may deem advisable,
                and

            

    

    

    
      	(d)  	
              remove
                therefrom and dispose of reasonable quantities of ores, mineral and
                metals
                for the purpose of obtaining assays or making other
                tests

            

    

    

    (collectively
      referred to as the “Exploration Activities”).

    

    

    PART
      7

    NET
      SMELTER RETURN ROYALTY AND EXPLOITATION RIGHTS 

    

    7.1.
       The
      Concessionaires hereby collectively reserve a right to a 2.5% Net Smelter Return
      Royalty on any production of minerals from any of portion of the Mining
      Concessions. As used in this Agreement, the term “Net Smelter Return Royalty”
shall have the meaning as set forth in Schedule B. 

    

    7.2.
       The
      Concessionaires hereby collectively reserve a right to carry out exploitation
      of
      minerals from any portion of the Mining Concessions to an amount not to exceed
      5,000 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    tonnes
      of
      rock material per month (the “Exploitation Rights”); in respect to the
      Exploitation Rights, the parties hereto covenant and agree as
      follows:

    

    
      	a)  	
              the
                permitted quota per month is non-cumulative; any unused portion of
                such
                quota on any given month will not be cumulative to the following
                month(s)’
                quota(s);

            

    

    

    
      	b)  	
              no
                activity conducted or contemplated by the Concessionaires pursuant
                to the
                Exploitation Rights can or will interfere, delay or interrupt any
                of the
                activities set out in Part 6;

            

    

    

    
      	c)  	
              in
                the event any of the Concessionaires is contemplating or conducting
                any of
                the activities described under Exploitation Rights within an area
                where
                the Exploration Company has commenced or is contemplating the commencement
                of any of the activities described in Part 6, the execution of the
                Exploration Activities by the Exploration Company WILL have at all
                times
                the absolute first right and the unobjectable priority over any of
                the
                Exploitation Activities contemplated or commenced by the Concessionaires;
                if any of the Concessionaires is conducting any of the exploitation
                activities described herein within an area where the Exploration
                Company
                is contemplating the conducting of exploration activities contemplated
                herein, the Exploration Company shall give the Concessionaires a
                10
                calendar day notice for such concessionaire to cease all of the
                exploitation activities being conducted in such
                area;

            

    

    

    
      	d)  	
              the
                Exploitation Rights granted herein to the Concessionaires shall cease
                to
                exist on the date of the exercise of the Option by the Exploration
                Company
                or by any of the Exploration Company’s successors or assigns;
                

            

    

    

    
      	e)  	
              the
                Concessionaires, their respective representatives and contractors
                shall
                comply with any and all provisions imposed by mining, labour,
                environmental and tax legislation applicable during, before or at
                the
                conclusion of the activities described under the Exploitation Rights,
                and
                to be exclusively liable to third parties and authorities of any
                nature
                for any sanction, penalty or judgement issued therefrom;
                

            

    

    

    
      	f)  	
              the
                Concessionaires, their respective representatives and contractors
                shall
                indemnify and hold the Exploration Company harmless from any loss,
                liability, claim, accusation, demand or penalty that may be issued
                to or
                assessed against the Exploration Company, its representatives or
                contractors by a third party or authority of any nature whatsoever
                in
                respect to or as a result of any violation of or contravention by
                the the
                Concessionaires, its representatives or contractors, to any provision
                imposed by mining, labour, environmental or fiscal legislation;
                

            

    

    

    
      	g)  	
              the
                Concessionaires, their respective representatives and contractors
                shall
                restore and rehabilitate any loss or damage that may be caused to
                the soil
                or subsoil of the surface area comprising the Mining Concessions,
                during
                or as a result of the execution of any activity described under the
                Exploitation Rights; and they shall clean, maintain in good condition
                and
                rehabilitate / restore the said soil, subsoil and terrain on conclusion
                of
                the said activities; 

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

      	h)  	
              the
                Concessionaires, their respective representatives and contractors,
                shall
                apply for and obtain from all competent municipal, state or federal
                authorities, or from individuals or corporations as the case may
                be, all
                permits, authorizations, concessions or favourable resolutions (or,
                when
                mandated by law, to issue a notice) in order to authorize the said
                Concessionaires to: (1) conduct any of the activities described under
                the
                Exploitation Rights, (2) build, operate or maintain any mill, processing
                plant, structure or building, and its components, (3) consume or
                use
                water, (4) use, consume, purchase or store explosives; (5) acquire
                access
                rights, rights of way, temporary occupation or easements on any portion
                of
                the Mining Concessions; 

            

    

     

    
      	i)  	
              there
                is no labour relationship between or among themselves or between
                or among
                the employees or contractors of one of the parties in respect to
                the other
                party; therefore, the parties expressly agree that each party shall
                individually bear all obligations or responsibilities, if any, imposed
                to
                each of them under applicable labour and tax legislation, or imposed
                to
                each party in respect to such party’s employees or contractors. Further,
                the parties agree to indemnify and hold each other harmless from,
                against
                to and in respect of, any suit, demand or complaint claimed or filed
                before any labor, administrative or judicial authority by one of
                the
                party’s employees or contractors against the other
                party,

            

    

    

    
      	j)  	
              the
                Exploration Company shall have access to any area where the
                Concessionaires activities are being conducted or contemplated to
                verify
                and inspect compliance with the obligations hereunder; the Concessionaires
                shall grant to the Exploration Company access to any place and provide
                it
                with any document or information for the purposes named
                herein.

            

    

    

    PART
      8

    TERMINATION
      OF
      OPTION

    

    8.1. If
      the
      Option is terminated pursuant to Subsection 4.2., the Exploration Company shall
      deliver to the Concessionaires, within 90 days of such termination, copies
      of
      all reports, maps, assay results and other relevant technical data in the
      possession of the Exploration Company with respect to the Mining
      Concessions.

    

    

    PART
      9

    

    TRANSFERS

    

    9.1. The
      Exploration Company, but not the Concessionaires, may, at any time during the
      Option Period, sell, transfer or otherwise dispose of its rights and obligations
      contained in this Agreement (without the requirement of additional consent
      from
      the Concessionaires), provided that any purchaser, grantee or transferee of
      any
      such interest shall have first assumed all of the obligations of the Exploration
      Company under this Agreement.

     

    PART
      10

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    FORCE
      MAJEURE

    

    10.1. If
      the
      Exploration Company is at any time either during the Option Period or thereafter
      is prevented or delayed in complying with any provisions of this Agreement
      by
      reason of strikes, walk-outs, labour shortages, power shortages, fuel shortages,
      fires, wars, acts of God, governmental regulations restricting normal
      operations, shipping delays or any other reason or reasons beyond the control
      of
      the Exploration Company, the time limited for the performance by the Exploration
      Company of its obligations hereunder shall be extended by a period of time
      equal
      in length to the period of each such prevention or delay.

    

    10.2. The
      Exploration Company shall within 30 days give notice to the Concessionaires
      of
      each event of force majeure under Subsection 10.1. and upon cessation of such
      event shall furnish the Concessionaires with notice to that effect together
      with
      particulars of the number of days by which the obligations of the Exploration
      Company hereunder have been extended by virtue of such event of force majeure
      and all preceding events of force majeure.

    

    PART
      11

    DEFAULT
      AND TERMINATION

    

    11.1. If
      at any
      time during the term this Agreement is in full force and effect any of the
      parties (the “Defaulting Party”) fails to perform any of its obligations
      required to be performed hereunder or is in breach of a warranty given herein,
      the other party may terminate this Agreement but only if

    

    
      	(a)  	
              it
                has first given
                to the Defaulting Party a
                notice of default containing particulars of the obligation(s) which
                it has
                not performed, or the warranty breached,
                and

            

    

    

    
      	(b)  	
              the
                Defaulting Party has not, within thirty days following delivery of
                such
                notice of default, cured such default or commenced proceedings to
                cure
                such default by appropriate payment or
                performance.

            

    

    

    

    PART
      12

    NOTICES

    

    12.1. Notices.
      Any
      notice or notification given or required to be given between the parties as
      a
      result of the application of this Agreement shall be given in writing and shall
      be addressed to the latest domiciles set out by the parties under this
      Agreement, which domiciles are, until further notice is given, as
      follows:

    

    
      	
               If to the Exploration Company:

               

            	
                If
                to the Concessionaires: 

               

            
	
               Attention: Sole Administrator 

              Av. Del Mar No. 1022-5 Zona Costera 

              Mazatlán, Sinaloa, México. C. P.82149 

              Main.. (6699) 90 05 48

              Fax.(6699) 86 98 59 

            	
               Attention: Mario Ayub Touché

              Pascual Orozco No. 2117 Col. Cima 

              Chihuahua, Chihuahua, México.

              (614) 414-7191

               

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Fur
      receipt of any notice to be given to any of the Concessionaires pursuant to
      this
      Agreement, the Concessionaires appoint Mario Humberto Ayub Touche as their
      common legal representative holding sufficient authority under the law to
      receive and hear all notices directed to such Concessionaires.

    

    The
      parties may, at any time, change their above-referenced domiciles by ten days
      written notice to the other party.

    

    12.2. All
      Notices shall be given (i) by personal delivery, or (ii) by electronic
      communication, with a confirmation sent by registered or certified mail return
      receipt requested, or (iii) by registered or certified mail return receipt
      requested or by commercial courier. All Notices shall be effective and shall
      be
      deemed delivered (i) if by personal delivery, on the date of delivery if
      delivered during normal business hours, and, if not delivered during normal
      business hours, on the next business day following delivery, (ii) if by
      electronic communication, on the next business day following actual receipt
      of
      the mailed confirmation, and (iii) if solely by mail or by commercial carrier,
      on the next business day after actual receipt. A Party may change its address
      by
      Notice to the other Party.

    

    

    PART
      13

    GOVERNING
      LAW 

    

    13.1. Governing
      Law.
      This
      Agreement shall be construed and regulated by the provisions of the Mining
      Act
      of Mexico and the Regulations, the Code of Commerce, the Federal Civil Code
      and
      the Civil Code of the State of Chihuahua, Mexico. The parties hereto attorn
      to
      the jurisdiction of the state and federal tribunals of the City of Chihuahua,
      State of Chihuahua, which shall have the authority to resolve any dispute,
      suit
      or claim arising under, or the interpretation or construction of, this
      Agreement. The parties hereby renounce to the jurisdiction of any other tribunal
      or court to whose jurisdiction they might have a right to, by virtue of their
      current or future domiciles or by provision of any law currently or in the
      future in force and effect.

    

    

    PART
      14

    GENERAL

    

    14.1. The
      parties hereto shall act towards each other in good faith and cooperation in
      all
      matters connected herewith, provided that:

    

    
      	(a)  	
              such
                relationship shall not impose upon either of them any duties or
                liabilities whatsoever except in accordance with this
                Agreement;

            

    

    

    
      	(b)  	
              this
                Agreement shall not be deemed to constitute or create a partnership
                between the parties or to create any joint and several liability
                between
                them;

            

    

    

    
      	(c)  	
              neither
                party shall have any authority to act for or to assume any obligation
                or
                responsibility on behalf of the other party, except as provided
                herein.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    14.2. This
      Agreement shall supersede and replace any other agreement or arrangement,
      whether oral or written, heretofore existing between the parties in respect
      of
      the subject matter of this Agreement.

    

    14.3.
       This
      Agreement may not be amended except in writing executed by each of
      the

    parties
      hereto.

    

    14.4. The
      parties shall promptly execute or cause to be executed all documents, deeds,
      conveyances and other instalments of further assurance which may be reasonably
      necessary or advisable to carry out fully the intent of this Agreement or to
      record wherever appropriate the respective interests from time to time of the
      parties in the Mining Concessions or any portion thereof.

     

    14.5. This
      Agreement shall inure to the benefit of and be binding upon the
      parties

    and
      their
      respective successors and permitted assigns.

    

    14.6. This
      Agreement is approved by the parties in the English and Spanish languages.
      The
      parties agree that in the event of discrepancy between the two versions, the
      Spanish version shall prevail. The parties acknowledge to having obtained
      sufficient independent legal advice and to having read and understood (through
      their respective appointed interpreters and legal counsel) the legal effects
      and
      validity of this Agreement in both the Spanish and English versions. The English
      version is attached as schedule C hereto and made part hereof for all
      corresponding legal effects.

    

    IN
      WITNESS WHEREOF the parties have executed this agreement on the date first
      above
      written.

    

    THE
      “CONCESSIONAIRES”

    

    COMPAÑÍA
      MINERA DE NAMIQUIPA, SA DE CV

    

    _________________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    LEGAL
      REPRESENTATIVE

    

    MINERA
      RIO TINTO, SA DE CV

    

    _________________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    LEGAL
      REPRESENTATIVE

    _____________________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    IN
      HIS
      OWN RIGHTS

    

    THE
      “EXPLORATION COMPANY”

    SUNBURST
      MINING DE MEXICO, S.A. DE C. V.

    __________________________

    TRACY
      ALLIN MOORE

    SOLE
      ADMINISTRATOR

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SHEDULE
      A

    MINING
      CONCESSIONS

     

    
      SHEDULE
        A - 1

      MINING
        CONCESIÓNS OWNED BY MINERA RIO TINTO, SA DE CV

      

      GUAZAPARES
        5 MINING CONCESSION

      

      1. Legal
        Description:

      

      	1.1.  	
              Lot
                Name: Guazapares 5

            

      	1.2.  	
              Title
                Number: 213572

            

      	1.3.  	
              Proprietor(s):
                Minera Rio Tinto, S.A. de C.V.

            

      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 152 page
                76,
                Volume 319

            

      	1.5.  	
              Location:
                Guazapares, Chihuahua

            

      	1.6.  	
              Class:
                Exploitation

            

      	1.7.  	
              Term
                of Validity: 18/05/2001 al 17/05/ 2007

            

      

      ________________________________________________________________________

      

      CONCESION
        MINERA VINORAMA

      

      1. Legal
        Description:

      

      	1.1.  	
              Lot
                Name: Vinorama

            

      	1.2.  	
              Application
                Exploration: File 082/29275

            

      	1.3.  	
              Propietor(s):
                Minera Río Tinto, S.A. de C.V.

            

      	1.4.  	
              Location:
                Guazapares, Chihuahua

            

      	1.5.  	
              Class:
                Exploración.

            

      	1.6.  	
              Registry:
                October 25, 2004.

            

      

      

      SHEDULE
        A - 2

      MINING
        CONCESSIONS OWNED BY MINERA DE NAMIQUIPA, SA DE CV

      

      GUZAPARES
        MINING CONCESSION

      

      1. Legal
        Description:

      

      	1.1.  	
              Lot
                Name: Guazapares

            

      	1.2.  	
              Title
                Number: 209497

            

      	1.1.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de C.V.

            

      	1.3.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 37 page
                19,
                Volume 306

            

      	1.4.  	
              Location:
                Guazapares, Chihuahua

            

      	1.5.  	
              Class:
                Exploration

            

       

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	1.6.  	
              Registry:
                October 25, 2004.

            

    

    

    

    SHEDULE
      A - 2

    MINING
      CONCESSIONS OWNED BY MINERA DE NAMIQUIPA, SA DE CV

    

    GUZAPARES
      MINING CONCESSION

    

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Guazapares

            

    

    
      	1.2.  	
              Title
                Number: 209497

            

    

    
      	1.1.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.3.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 37 page
                19,
                Volume 306

            

    

    
      	1.4.  	
              Location:
                Guazapares, Chihuahua

            

    

    
      	1.5.  	
              Class:
                Exploration

            

    

    
      	1.6.  	
              Term
                of Validity: 03/08/1999
                al 02/08/2005

            

    

    

    ____________________________________________________________________

    

    GUAZAPARES
      1 MINING CONCESSION

    

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Guazapares 1

            

    

    
      	1.2.  	
              Title
                Number: 212890

            

    

    
      	1.3.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 190 page
                95,
                Volume 317

            

    

    
      	1.5.  	
              Location:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Class:
                Exploration

            

    

    
      	1.7.  	
              Term
                of Validity: 13/02/2001
                al 12/02/2007

            

    

    ____________________________________________________________________

    

    GUAZAPARES
      2 MINING CONCESSION

    

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Guazapares 2

            

    

    
      	1.2.  	
              Title
                Number: 207499

            

    

    
      	1.3.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 199 page
                100,
                Volume 302

            

    

    
      	1.5.  	
              Location:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Class:
                Exploration

            

    

    
      	1.7.  	
              Term
                of Validity: 24/06/1998
                al 23/06/2004

            

    

    ________________________________________________________________________

    GUAZAPARES
      3 MINING CONCESSION

    

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Guazapares 3

            

    

    
      	1.2.  	
              Title
                Number: 211040

            

    

    
      	1.3.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 140 page
                70,
                Volume CCCXII

            

    

    
      	1.5.  	
              Location:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Class:
                Exploration

            

    

    
      	1.7.  	
              Term
                of Validity: 24/03/2000
                al 23/03/2006.

            

    

    

    ____________________________________________________________________

    

    GUAZAPARES
      4 MINING CONCESSION

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Guazapares 4

            

    

    
      	1.2.  	
              Title
                Number: 223664

            

    

    
      	1.3.  	
              Proprietor(s):
                Cia. Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 164 page
                82,
                Volume 347

            

    

    
      	1.5.  	
              Location:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Class:
                Explotation

            

    

    
      	1.7.  	
              Term
                of Validity: 02/02/2005
                al 01/02/2055

            

    

    

    ____________________________________________________________________

    

    

    SHEDULE
      A - 3

    MINING
      CONCESSIONS OWNED BY MARIO AYUB TOUCHE

    

    

    CANTILITO
      MINING CONCESSION

    

    1. Legal
      Description:

    

    
      	1.1.  	
              Lot
                Name: Cantilito

            

    

    
      	1.2.  	
              Title
                Number: 220788

            

    

    
      	1.3.  	
              Proprietor(s):
                Mario Humberto Ayub Touche

            

    

    
      	1.4.  	
              Recordation
                of Title: Book of Mining Concessions, Registration Number 168 page
                84,
                Volume 339

            

    

    
      	1.5.  	
              Location:
                Guazapares, Chihuahua.

            

    

    
      	1.6.  	
              Class:
                Explotation

            

    

    
      	1.7.  	
              Term
                of Validity: 07/10/2003 al
                06/10/2053.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

    

    NET
      SMELTER RETURN ROYALTY

    

    ARTICLE
      I  

     

    

     

    DEFINITIONS

     

    Any
      capitalized terms used but not otherwise defined in this Schedule shall bear
      the
      meaning ascribed to such capitalized terms in the Agreement. As used herein,
      the
      following terms shall have the meanings assigned to them as follows (in the
      event any term or definition of this Schedule shall conflict with any term
      or
      definition in the Agreement, the term or definition in this Schedule shall
      control and govern):

     

    
      	1.1 	“Affiliate”
              means any Person that directly or indirectly Controls, is Controlled
              by,
              or is under common Control with, a Party.

      	 	 

      	1.2  	
              “Agreement”
                means
                this Option Agreement signed with respect to the Mining Concessions
                by the
                Grantor and the Royalty Holder to which this Schedule is attached
                and made
                part. 

            

    

     

    
      	1.3  	
              “Allowed
                Deductions ”
                means the following charges to be deducted from
                Revenue:

            

    

     

    
      	(a)  	
              melting,
                refining, sampling and treatment charges castigos
                charges, and including, without restricting the generality of the
                foregoing, losses of metals and charges for impurities and sale and
                handling charges during smelting and refining (including price
                participation charges for refining and/or
                refineries);

            

    

     

    
      	(b)  	
              handling,
                transportation and insurance charges for the transportation of the
                Products from the mining lots comprised in the Mining Concessions
                to the
                smelter, refinery or any other place designated for treatment, and,
                in the
                event of gold, silver or precious metals concentrates, insurance
                charges;

            

    

     

    
      	(c)  	
              ad
                valorem and
                production sale-based taxes, but not income
                taxes;

            

    

     

    
      	(d)  	
              marketing
                charges, including commissions of the sale of Mineral Products;
                and,

            

    

     

    
      	(e)  	
              any
                other charge as agreed upon by the parties from time to
                time.

            

    

     

    
      	1.4  	
              “Area
                of Interest” means
                that area that falls within the outer perimeter of the
                Property.

            

      	 	 

      	1.5 	“Company”
              means Sunburst Mining de Mexico, S.A. de C.V., a company incorporated
              pursuant to the laws of the United Mexican States, which is the Grantor
              under this Agreement, and its successors and assigns.
              

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

      

    
      	1.6 	“Commercial Production”
              shall have the same meaning defined under the Agreement. 

      	 	 

      	1.7 	 “Control”
              used as a verb means, when used with respect to an entity, the ability,
              directly or indirectly through one or more intermediaries, to direct
              or
              cause the direction of the management and policies of such entity through
              (a) the legal or beneficial ownership of voting securities or membership
              interests; (b) the right to appoint managers, directors or corporate
              management; (c) contract; (d) operating agreement; (e) voting trust;
              or
              otherwise; and, when used with respect to an individual, means the
              actual
              or legal ability to control the actions of another, through family
              relationship, agency, contract or otherwise; and “Control” used as a noun
              means an interest which gives the holder the ability to exercise any
              of
              the foregoing powers.

      	 	 

      	1.8  	
              “Deemed
                Revenue”
                means the following: 

            

    

     

    
      	1.8.1  	
              Where
                the Grantor or its Affiliates produce as a final Product or have
                produced
                as a final Product through a tolling or smelting or refining contract
                or
                any other transaction that results in the return to, or credit to
                the
                account of, Grantor or its Affiliates, of refined copper meeting
                either
                the good delivery requirements of the London Metal Exchange (“LME”) for
                Grade "A" Copper Cathode or for High Grade Copper meeting the COMEX
                division of the New York Mercantile Exchange ("COMEX") requirements
                for
                delivery, and/or fine gold bullion of .995 or better (“Gold Bullion”)
                and/or silver bullion of .9995 or better (“Silver Bullion”), in each case
                from ores or other material mined and removed from the Property,
                then
                notwithstanding anything in this Schedule to the contrary, the term
                “Deemed Revenue” for such metal shall be deemed to mean the
                net number of pounds avoirdupois of copper or troy ounces of Gold
                Bullion
                and Silver Bullion, as the case may be, returned to, or credited
                to the
                account of, Grantor or its Affiliates in a calendar
                quarter,
                multiplied by: (i) for copper, the average of the LME Settlement
                Price for
                Grade “A” Copper Cathode in the case of LME Grade “A” Copper Cathode or of
                the COMEX most nearby spot price in the case of COMEX High Grade
                Copper,
                in each case for the calendar quarter in which such copper is returned
                or
                credited; (ii) for Gold Bullion, the average London Bullion Market
                Association P.M. Gold Fixing for the calendar quarter in which such
                bullion is returned or credited; or (iii) for Silver Bullion, the
                average
                London Bullion Market Association Silver Fixing for the calendar
                quarter
                in which such bullion is returned or credited.

            

    

     

    
      	1.8.2  	
              The
                average price for the calendar quarter shall be determined by dividing
                the
                sum of all daily prices posted during the relevant calendar quarter
                by the
                number of days that prices were posted. The posted price shall be
                obtained, in the case of LME Grade “A” copper cathode or COMEX Grade
                Copper, from Platt’s Metals Price Alert, Metals Week Monthly Averages for
                the applicable period or Metals Bulletin, but corrected to the official
                quotations of COMEX or the London Metal Exchange in the event of
                

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	printing errors, and for other prices, The Wall
              Street
              Journal, Reuters, or other reliable source selected by the Grantor.
              If the
              LME Settlement Price for Grade “A” Copper Cathode, or the COMEX most
              nearby spot price for High Grade Copper, the London Bullion Brokers
              P.M.
              Gold Fixing or the London Bullion Brokers Silver Fixing, as the case
              may
              be, ceases to be published, the Parties shall agree upon a similar
              alternative method for determining the average daily spot market price
              for
              refined copper, Gold Bullion or Silver Bullion, as the case may be,
              or
              upon failure to so agree, the average of the daily LME settlement prices
              during such period, as reasonably determined by the Grantor, shall
              be
              used. 

    

     

    
      	1.8.3  	
              In
                the case where an intermediate Product not described above as a final
                Product is distributed to an Affiliate of the Grantor and such
                intermediate Product is converted by such Affiliate or a third Person
                on
                behalf of such Affiliate to a Product meeting the standards set forth
                in
                this definition, then for purposes of calculating Deemed Revenue
                such
                Product shall be deemed produced, and the Deemed Revenue received,
                by the
                Grantor. 

            

    

     

    
      	1.9  	
              “GAAP”
                means generally accepted accounting principles set forth in the opinions
                and pronouncements of the Accounting Principles Board of the American
                Institute of Certified Public Accountants and statements and
                pronouncements of the Financial Accounting Standards Board, from
                time to
                time, applied on a consistent
                basis.

            

    

     

    
      	1.10  	
              “Grantor”
                shall
                mean the Company and its successors and
                assigns

            

    

     

    
      	1.11  	
              “Mine”
                shall mean any excavation in the earth or in any tailings, whether
                being
                worked or not, made for the purpose of winning or exploiting Products,
                and
                shall include:

            

    

     

    
      	f)  	
              any
                shaft, surface mine, tunnel or opening, underground or otherwise,
                from or
                through which Products have been or may be removed or extracted by
                any
                method whatsoever, in quantities larger than those required for purposes
                of Evaluation;

            

    

     

    
      	g)  	
              the
                mining area and all buildings, structures, mine dumps, machinery,
                equipment, tools, access roads, airstrips, power lines, power generation
                facilities, evaporation and drying facilities, pipelines, railroads
                and
                other facilities for mining, transporting, storing and disposing
                of
                Products, waste and other materials;
                and

            

    

     

    
      	h)  	
              any
                other facilities and objects required or intended to be used for
                the
                purposes of or in connection with such winning or
                exploitation.

            

    

     

    
      	1.12  	
              “Net
                Revenue”
                shall be the Revenue less the Allowed Deductions pertaining to such
                Revenue, in each case for the applicable calendar quarter.
                

            

    

     

    
      	1.13  	
              Net
                Smelter Return Royalty”
                means the royalty granted by this Schedule
                B.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	1.14  	
              “Person”
                shall
                mean an individual, corporation, trust, partnership, limited liability
                company, joint venture, unincorporated organization, firm, estate,
                governmental authority or any agency or political subdivision thereof,
                or
                other entity.

            

    

     

    
      	1.15  	
              “Physical
                Product Revenue”
                shall mean revenues received for Products other than those described
                in
                the definition of “Deemed Revenue”. The amount of such revenues shall be
                determined as follows:

            

    

     

    
      	1.15.1  	
              If
                Products mined and removed from the Property are sold to a smelter,
                refiner or other purchaser (other than the Grantor or Affiliates
                of the
                Grantor) in the form of a crude or intermediate Product not meeting
                the
                requirements in subsection 1.6.1 of the definition of "Deemed Revenue"
                for
                metals as provided above (such as the sale of copper concentrates)
                or are
                distributed to an Affiliate but are not converted by such Affiliate
                into a
                final Product meeting the requirements in the definition of “Deemed
                Revenue” for metals as provided above, then the amount of Physical Product
                Revenue with respect to such crude or intermediate Product shall
                equal
                the
                amount of net revenues actually received by the Grantor from the
                physical
                sale of the payable metals in such Products to the smelter, refiner
                or
                other purchaser of Products,
                including any bonuses, premiums, and subsidies, and after deducting
                all
                Allowed Deductions , whether deducted by the purchaser or paid or
                incurred
                by the Grantor. In the case where such products are distributed in
                kind to
                an Affiliate of the Grantor and then are sold without further processing
                by or for such Affiliate, such sale shall be deemed to be a sale
                by the
                Grantor for the purposes of making the calculations in this subsection
                1.19.1 and the Revenue shall be deemed to have been received by the
                Grantor.

            

    

     

    
      	1.15.2  	
              If
                Products mined and removed from the Property and distributed to an
                Affiliate in any transaction that is not covered by either subsection
                1.19.1 above or the definition of Deemed Revenue, then in such event
                the
                Revenue attributed to such Products shall be the fair market value
                price
                that would otherwise be received from a third Party in an arm's length
                transaction for the sale of such Product, net of any Allowed Deductions
                incurred. 

            

    

     

    
      	1.16  	
              “Products”
                shall
                mean all ores, concentrates, precipitates, cathodes, leach solutions,
                doré, or any other primary, intermediate or final metallic products
                extracted, mined and removed from the Mining Concessions for commercial
                sale. Products shall not include any material mined and removed from
                the
                Mining Concessions for use by Grantor for roads, foundations, concrete
                or
                other construction or industrial uses relating to the Property or
                material
                that is processed that did not originate from the
                Property.

            

    

     

    
      	1.17  	
              “Property”
                for purposes of this schedule means the Mining Concessions, subject
                to any
                modification, change or improvement thereon made from time to time
                by the
                Grantor. 

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	1.18  	
              “Revenue”
                means the sum of Physical Product Revenue and Deemed Revenue for
                the
                applicable calendar quarter. 

            

    

     

    
      	1.19  	
              “Royalty
                Account” means
                the accounting account established by the Grantor or on its behalf
                for the
                recordation of: 

            

    

     

    
      	a)  	
              all
                Allowed Deductions, as debit, calculated at the cash value at the
                time
                each cost is incurred, and

            

    

     

    
      	b)  	
              all
                Revenue, as credit, 

            

    

     

    for
      purposes of the computation of the Net Smelter Return Royalty payable in each
      case for the applicable calendar quarter. 

     

    
      	1.20  	
              Royalty
                Holder”
                shall, collectively, mean the Concessionaires and their respective
                permitted successors and assigns, 

            

    

     

    
      	1.21  	
              “Royalty
                Percentage”
                shall mean two point five percentage point (2.5%).
                

            

    

     

    
      	1.22  	
              “Trading
                Activities”
                shall mean any and all price hedging and price protection activities
                undertaken by Grantor or its Affiliates with respect to any Products,
                raw
                materials, interest rates or currency exchanges including without
                limitation, any forward sale and/or purchase contracts, spot-deferred
                contracts, option contracts, speculative purchases and sales of forward,
                futures and option contracts, both on and off commodity exchanges.
                Such
                Trading Activities, and the profits and losses generated thereby,
                shall be
                taken into account in the calculation of royalties due to Royalty
                Holder,
                in connection with the determination of price, the date of sale,
                or the
                date any royalty payment is due. 

            

    

     

    
      	1.23  	
              “Transfer”
                shall mean any sale, grant, assignment, conveyance, encumbrance,
                pledge,
                hypothecation, abandonment or other transfer.

            

    

     

    
      	2  	 

    

     

    COMPUTATION
      AND PAYMENT OF NET SMELTER RETURN ROYALTY

     

    
      	2.1  	
              Computation.
                To
                compute the Net Smelter Return Royalty, the Grantor shall multiply
                the Net
                Revenue (shown as positive balance on the Royalty Account) by the
                Royalty
                Percentage in each case for the immediately preceding calendar quarter.
                

            

    

     

    
      	2.2  	
              No
                Net Smelter Return Royalty shall be paid hereunder until the cumulative
                total of Revenue (shown as credits on the Royalty Account) exceeds
                the
                cumulative total of Allowed Deductions (shown as debits on the Royalty
                Account) calculated from the effective date of signing of this Agreement.
                

            

    

     

    
      	2.3  	
              Payments. 

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    2.3.1. Grantor’s
      obligation to pay the Net Smelter Return Royalty shall
      commence from the date following the delivery by the Grantor to the Royalty
      Holder of a notice indicating commencement of Commercial
      Production.

     

    2.3.2. Upon
      Grantor’s determination that Net Smelter Return Royalty payments are due and
      owing under this Schedule, the Grantor shall pay to the Royalty Holder a payment
      equal to the Net Smelter Return Royalty computed under Section 2.1 within 45
      days after the end of the calendar quarter for which such computation is made,
      and shall deliver with such payment a copy of the calculations used in
      connection with such payment. Any overpayments or underpayments shall be
      corrected in the next calendar quarter following determination of such
      adjustment. 

     

      

    
      	3  	 

    

     

    ACCOUNTING
      MATTERS

     

    
      	3.1  	
              Accounting
                Principles.
                Subject to the provisions of applicable Mexican tax laws, all
                Revenue and Allowed Deductions shall be recorded on the Royalty Account
                and determined in accordance with GAAP as applied by the Grantor.
                Revenue
                and Allowed Deductions shall be determined by the accrual
                method.

            

    

     

    

    
      	4  	 

    

     

    AUDITS

     

    
      	4.1  	
              Audit. The
                Royalty Holder, upon written notice, shall have the right to have
                an
                independent firm of certified public accountants audit the records
                that
                relate to the calculation of the Net Smelter Return Royalty within
                two (2)
                months after receipt of a payment under Section 2.3.2. hereof. Any
                calculation not so audited shall be deemed final and shall not thereafter
                be subject to audit or challenge.

            

    

     

    
      	4.2  	
              Disputes. The
                Royalty Holder shall be deemed to have waived any right it may have
                had to
                object to a payment made for any calendar quarter, unless it provides
                notice in writing of such objection within 2 months after receipt
                of final
                payment for the calendar quarter. 

            

    

     

    

    
      	5  	 

    

     

    GENERAL

     

    
      	5.1  	
              Records.
                Grantor shall keep accurate
                records of tonnage, volume of Products, analyses of Products, weight,
                moisture, assays of payable metal content and other records, as
                appropriate, related to the computation of Net Smelter Return Royalty
                hereunder. 

            

    

     

    
      	5.2  	
              Operations.
                The
                Grantor and its Affiliates shall be entitled to (i) make all
                

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	 	operational decisions with respect to the methods
              and
              extent of mining and processing of Products mined or derived from the
              Property (for example, without limitation, the decision to process
              by heap
              leaching rather than conventional milling), (ii) make all decisions
              related to sales of such Products, and (iii) make all decisions concerning
              temporary or long-term cessation of
              operations.

    

     

    
      	5.3  	
              Interest.
                Nothing contained in the Agreement to which this Schedule is attached
                and
                made part hereof, shall be construed as conferring upon the Royalty
                Holder
                any right to or beneficial interest in the Property. The right to
                receive
                the Net Smelter Return Royalty from the Grantor as and when due shall
                be
                and shall be deemed to be a contractual right only. Furthermore,
                the right
                to receive such Net Smelter Return Royalty as and when due shall
                not be
                deemed to constitute the Grantor the partner, agent or legal
                representative of the Royalty Holder or to create any fiduciary
                relationship between them for any purpose whatsoever.
                

            

    

     

    
      	5.4  	
              Right
                to Inspect. The
                Royalty Holder or its authorized representative on not less than
                30 days’
                notice to the Grantor, may enter upon all surface and subsurface
                portions
                of the Property for the purpose of inspecting the Property, all
                improvements thereto and operations thereon, and may inspect and
                copy all
                records and data pertaining to the computation of its interest, including
                without limitation such records and data which are maintained
                electronically. The Royalty Holder or its authorized representative
                shall
                enter the Property at the Royalty Holder’s own risk and may not
                unreasonably hinder operations on or pertaining to the Property.
                The
                Royalty Holder shall indemnify and hold harmless the Grantor and
                its
                Affiliates (including without limitation direct and indirect parent
                companies), and its or their respective directors, officers, shareholders,
                employees, agents and attorneys, from and against any Liabilities
                which
                may be imposed upon, asserted against or incurred by any of them
                by reason
                of injury to the Royalty Holder or any of its agents or representatives
                caused by the Royalty Holder’s exercise of its rights
                herein.

            

    

     

    
      	5.5  	
              Notices.
                

            

    

     

    All
      notices, payments and other required communications (herein “Notices”) permitted
      or required hereunder shall be in writing, and shall be addressed to the
      respective domiciles of the Grantor and the Royalty Holder in the form and
      as
      set out in the Agreement to which this Schedule is attached. 

     

    
      	5.6  	
              Confidentiality.
                

            

    

     

    
      	5.6.1  	
              Except
                as provided in Section 5.6.2, all information and data provided to
                the
                Royalty Holder under the terms of this Schedule shall not be disclosed
                by
                the Royalty Holder to any third Party or the public without the prior
                written consent of the Grantor, which consent shall not be unreasonably
                withheld.

            

    

     

    
      	5.6.2  	
              The
                consent required by Section 5.6.1 shall not apply to a
                disclosure:

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	5.6.2.1  	
              To
                an Affiliate or representative that has a bona fide need to be informed
                (but subject to the obligations of confidentiality
                herein);

            

    

     

    
      	5.6.2.2  	
              To
                a governmental agency or to the public which the disclosing Affiliate
                believes in good faith is required by applicable Law or the rules
                of any
                stock exchange;

            

    

     

    
      	5.6.2.3  	
              Made
                in connection with litigation or arbitration involving a Party where
                such
                disclosure is required by the applicable tribunal or is, on the advice
                of
                counsel for such Party, necessary for the prosecution of the case,
                but
                subject to prior notification to the other Party to enable such Party
                to
                seek appropriate protective orders.

            

    

     

    
      	5.6.3  	
              Prior
                to any disclosure described in Subsections 5.6.2 (a), (b) or (c)
                above,
                such third Party shall first agree to protect the confidential information
                from further disclosure to the same extent as the Parties are obligated
                under this Section 5.6.

            

    

     

    Notwithstanding
      anything contained in this Agreement to the contrary, a Party shall not disclose
      pursuant to this Agreement any geological, engineering or other data to any
      third Party without disclosing the existence and nature of any disclaimers
      which
      accompany such data and the requirements of applicable law or regulation or
      rules of the applicable stock exchange for public reporting, as the case may
      be.

    

    
      	5.7  	
              Commingling.
                The
                Grantor shall have the right to commingle ore, concentrates, minerals
                and
                other material mined and removed from the Mining Concessions from
                which
                Products are to be produced, with ore, concentrates, minerals and
                other
                material mined and removed from other lands and Property; provided,
                however, that the Grantor shall calculate from representative samples
                the
                average grade thereof and other measures as are appropriate, and
                shall
                weigh (or calculate by volume) the material before commingling. In
                obtaining representative samples, calculating the average grade of
                the ore
                and average recovery percentages, the Grantor may use any procedures
                accepted in the mining and metallurgical industry which it believes
                suitable for the type of mining and processing activity being conducted
                and, in the absence of fraud, its choice of such procedures shall
                be final
                and binding on the Royalty Holder. In addition, comparable procedures
                may
                be used by the Grantor to apportion among the commingled materials
                all
                penalty and other charges and deductions, if any, imposed by the
                smelter,
                refiner, or purchaser of such
                material.

            

    

     

    
      	5.8  	
              Change
                in Ownership of Right to Net Smelter Return Royalty.
                No change or division in the ownership of the Net Smelter Return
                Royalty,
                however accomplished, shall enlarge the obligations or diminish the
                rights
                of Grantor. Royalty Holder covenants that any change in ownership
                of the
                Net Smelter Return Royalty shall be accomplished in such a manner
                that
                Grantor shall be required to make payments and give notice to no
                more than
                one Person, and upon breach of this covenant, Grantor and its Affiliates
                may retain all payments otherwise due in escrow until the breach
                has been
                cured. No change or division in the ownership of the Net Smelter
                Return
                Royalty shall be binding on Grantor

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	 	until a certified copy of the recorded instrument
              evidencing the change or division in ownership has been received by
              Grantor. 

    

     

    
      	5.9  	
              Assignment
                by Grantor.
                Grantor shall be entitled to Transfer all or any portion of its interest
                in the Property. If the Grantor Transfers all or any portion of its
                interest in the Property, upon obtaining from the transferee a written
                assumption of the obligations of the Grantor pursuant to this Schedule
                with respect to the interest so Transferred, the Grantor shall thereupon
                be relieved of all liability for payment of royalties under this
                Schedule
                for any royalties that may thereafter arise with respect to such
                transferred interest.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    CONTRATO
      DE EXPLORACIÓN Y OPCION DE COMPRA

    

    El
      presente Contrato de Exploración y Opción de Compra es celebrado en la Ciudad de
      Chihuahua, Estado de Chihuahua con fecha del 18 de Agosto del 2005

    

    ENTRE:

    

    COMPAÑÍA
      MINERA DE NAMIQUIPA, S. A. DE C. V., sociedad mercantil debidamente constituida
      conforme a las leyes de los Estados Unido Mexicanos, representada en el presente
      acto por el SR. MARIO AYUB TOUCHE actuando en su carácter de Presidente del
      Consejo de Administración, con Poderes Generales para Pleitos y Cobranzas y
      Actos de Administración y Dominio (en lo sucesivo “Namiquipa”)

    

    MINERA
      RIO TINTO S.A. DE C.V. sociedad debidamente constituida y en existencia conforme
      a las leyes de los Estados Unidos Mexicanos, representada en el presente acto
      por el SR. MARIO AYUB TOUCHE en su carácter de Administrador Único con poderes
      generales para pleitos y cobranzas, actos de administración y dominio, con
      domicilio en Ave. Pascual Orozco No. 2117 - Altos, Colonia la Cima, C. P. 31310,
      Chihuahua, Chihuahua (R. F. C. MRT940802NN2) (en lo sucesivo la "MRT”)

    

    Y
      

    

    MARIO
      HUMBERTO AYUB TOUCHE, actuando por sus propios derechos, Ciudadano Mexicano,
      estado civil casado, nacido en Chihuahua, Chihuahua el 12 de Septiembre de
      1953,
      de ocupación empresario minero y con domicilio en Calle Misión de San Antonio
      No. 2036 de la Ciudad de Chihuahua, Chihuahua; (en lo sucesivo, “Ayub”)

    

    (a
      “Namiquipa”, “MRT” y “Ayub” se les denominará colectivamente en lo sucesivo como
      los “Concesionarios”)

    

    POR
      LA
      PRIMERA PARTE 

    

    Y
      

    

    SUNBURST
      MINING DE MÉXICO, S. A. DE C. V., sociedad mercantil debidamente constituida
      conforme a las leyes de los Estados Unidos Mexicanos, representada en el
      presente acto por el SR. TRACY ALLIN MOORE en su carácter de Administrador Único
      con poderes generales para pleitos y cobranzas, actos de administración y
      dominio, con domicilio en Av. Del Mar N. 1022 interior 5, Zona Costera Mazatlán,
      Sinaloa, C. P. 82149 (en lo sucesivo, la "Exploradora")

    

    POR
      LA
      SEGUNDA PARTE

    

    CONSIDERANDO
      QUE:

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	A.  	
              Los
                Concesionarios son 100% titular de las Concesiones Mineras.
                

            

    

    

    
      	B.  	
              Los
                Concesionarios desean otorgar a la Exploradora, y la Exploradora
                desea
                adquirir de los Concesionarios, los Derechos de Exploración y la Opción de
                Compra del 100% de la titularidad de las Concesiones Mineras, sujeto
                a los
                términos y condiciones pactados en el presente instrumento (todos dichos
                términos según se definen más
                adelante).

            

    

    

    POR
      LO TANTO, en
      virtud
      de las manifestaciones y garantías declaradas mutuamente por las partes en el
      presente Contrato, las partes acuerdan de la siguiente manera:

    

    CLAUSULA
      1

    ANEXOS
      Y DEFINICIONES

    

    1.1. Los
      siguientes Anexos formarán partes del presente Contrato:

    

    Anexo
      A
      -  Concesiones
      Mineras

    Anexo
      B
      -  Regalía
      Sobre Liquidaciones Netas

    Anexo
      C
      - Versión
      en Inglés

    

    1.2.
      Los
      siguientes términos tendrán, cuyo sean utilizados en el presente Contrato, el
      significado e interpretación que a continuación se señalan (excepto si se provee
      expresamente en contrato o si el contexto lo requiere de otra
      manera):

    

    este
      Contrato significa
      el presente Contrato, según sea adicionado o modificado por las
      partes,

    

    Área
      de Influencia significa
      el área superficial que comprende el perímetro de la superficie amparada por las
      Concesiones Mineras,

    

    Concesiones
      Mineras significan
      las concesiones mineras descritas en el Anexo A del presente Contrato, así como
      cualquier concesión minera de explotación u otro interés derivados de dichas
      concesiones, 

    

    Derechos
      de Exploración significa
      el conjunto de derechos descritos en la Parte 6 del presente
      Contrato;

    

    Producción
      Comercial significa
      la explotación comercial de productos minerales, pero no incluye la molienda con
      el propósito de examinar o moler o lixiviación conducida por una planta piloto o
      durante el periodo de afinación de la planta. Se entenderá que la Producción
      Comercial ha iniciado:

    

    
      	(i)  	
              una
                vez que se haya ubicado una planta en el área que comprenden las
                Concesiones Mineras, el primer día del mes siguiente a un período de
                treinta (30) días consecutivos en los cuales productos minerales haya sido
                procesado en dicha planta. O a los noventa (90) días de que se haya
                iniciado la operación de la planta; lo que ocurra primero.
                

            

    

    
    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              si
                no se encuentra ubicada ninguna planta en el área que comprenden las
                Concesiones Mineras, el primer día del mes siguiente a un primer periodo
                de sesenta (60) días durante los cuales el producto mineral ha sido
                transportado fuera de dicha área con el propósito de generar
                ingresos;

            

    

    

    Regalía
      sobre Liquidaciones Netas significa
      la regalía que deberá ser pagada a los Concesionarios conforme a la Parte 7
      sobre los ingresos por venta de productos minerales extraídos de cualquier
      porción de las Concesiones Mineras, según se describe en el Anexo B del presente
      Contrato,

    

    Opción
      significa
      el derecho de opción otorgado por los Concesionarios a la Exploradora para
      comprar el 100% de la titularidad de las Concesiones Mineras conforme a la
      Parte
      4,

    

    Periodo
      de la Opción significa
      el período de vigencia de la Opción, comenzando en a fecha de la firma del
      presente Contrato y concluyendo el cuarto aniversario anual de dicha
      fecha.

    

    CLAUSULA
      2

    MANIFESTACIONES
      Y GARANTIAS DE LOS CONCESIONARIOS

    

    2.1
      Los
      Concesionarios en forma individual y colectiva manifiestan y garantizan a la
      Exploradora que: 

    

    
      	(a)  	
              los
                Concesionarios son titulares exclusivos de las Concesiones Mineras
                en las
                proporciones y forma que se describe en el Anexo A del presente Contrato
                y
                mantendrán dicha titularidad conforme al presente Contrato para permitir a
                la Exploradora el ejercicio del derecho de
                Opción,

            

    

    

    
      	(b)  	
              las
                Concesiones Mineras se encuentran, a la fecha de la firma del presente
                Contrato y continuarán durante la vigencia del mismo, libres de todo
                gravamen, afectación y reclamación de tercero alguno y en completo
                cumplimiento con las obligaciones impuestas por la Ley Minera y su
                Reglamento,

            

    

    

    
      	(c)  	
              ninguna
                otra persona, firma o sociedad ha celebrado ningún contrato u opción, o
                ningún derecho o privilegio que se pudiera convertir en contrato u opción,
                para la compra o adquisición de ninguna de las Concesiones
                Mineras,

            

    

    

    
      	(d)  	
              no
                existe demanda en contra o conflicto relacionado con la titularidad
                de
                ninguna de las Concesiones Mineras, ni tienen conocimiento de que
                existan
                bases para lo anterior, y ninguna persona posee ninguna regalía u otro
                interés jurídico de ninguna naturaleza con respecto a la producción de
                mineral de ninguna de las Concesiones Mineras.

            

    

    

    
      	(e)  	
              las
                Concesiones Mineras han sido debida y válidamente ubicadas, y se
                encuentran correctamente descritas en el anexo A del presente
                Contrato,

            

    

    

    (f)  mientras
      este Contrato se encuentre vigente ellos:

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

    
      	a.  	
              no
                reducirán ni presentarán solicitud para reducir el área superficial de los
                lotes mineros amparados por las Concesiones Mineras, sin el consentimiento
                por escrito de la Exploradora, 

            

    

    

    
      	b.  	
              no
                gravarán, afectarán u ofrecerán en garantía los derechos derivados de las
                Concesiones Mineras,

            

    

    

    
      	c.  	
              realizarán
                todo acto que sea requerido, necesario o prudente para impedir que
                tercero
                alguno grave o afecte, o intente gravar o afectar, los derechos derivados
                de las Concesiones Mineras,

            

    

    

    
      	d.  	
              garantizarán
                y asegurarán la posesión pacífica y el disfrute de los derechos otorgados
                a la Exploradora en el presente Contrato,
                y

            

    

    

    
      	e.  	
              no
                realizarán ningún acto que sea inconsistente con las transacciones
                contempladas en el presente
                instrumento.

            

    

    

    CLAUSULA
      3

    MANIFESTACIONES
      Y GARANTIAS DE LA EXPLORADORA

    

    
      	3.2  	
              La
                Exploradora manifiesta y garantiza a los Concesionarios que:
                

            

    

    

    
      	(a)  	
              es
                una sociedad mercantil anónima de capital variable en existencia y
                debidamente constituida conforme a las leyes de los Estados Unidos
                Mexicanos y es autorizada conforme a derecho para celebrar el presente
                acto,

            

    

    

    
      	(b)  	
              posee
                la capacidad legal requerida conforme a derecho para adquirir como
                dueño:
                (i) la titularidad de concesiones mineras ubicadas dentro del territorio
                de los Estados Unidos Mexicanos, en conformidad con el artículo 11 de la
                Ley Minera en vigor, y (ii) derechos reales ubicados fuera del área
                constitucionalmente restringida dentro de territorio mexicano conforme
                al
                artículo 10-A de la Ley de Inversiones Extranjeras y artículo 8 de su
                Reglamento, 

            

    

    

    
      	(c)  	
              se
                encuentra al corriente respecto a sus obligaciones registrales ante
                el
                Registro Público de Minería y el Registro Nacional de Inversiones
                Extranjeras, 

            

    

    

    
      	(e)  	
              ha
                obtenido todas las aprobaciones, licencias y registros requeridos
                para
                celebrar el presente Contrato y para obligarse en sus términos y, en
                particular, para adquirir de los Concesionarios el derecho y la opción
                exclusiva de comprar el 100% de la titularidad de las Concesiones
                Mineras.

            

    

    

    CLAUSULA
      4

    ADQUISICION
      DE LA OPCION

     

    
      
        	4.1 	
                Los
                  Concesionarios en forma individual y colectiva otorgan en el presente
                  acto
                  a la Exploradora el derecho exclusivo y la opción, más no la obligación,
                  de comprar el 100% de la titularidad de las Concesiones Mineras,
                  libres de
                  todo gravamen, carga, limitación de dominio y oposición de tercero alguno,
                  en los términos y condiciones pactados en el presente
                  Contrato.

              

      

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      
        	4.1.1 	La Exploradora habrá ejercido la Opción mediante el pago
                a los Concesionarios de la suma total de $ 910,000 USD (Novecientos
                Diez
                Mil dólares de los Estados Unidos de América 00/100) (el “Precio de
                Compra”) a pagarse de la siguiente manera:

      

    

     

    
      	i)  	
              USD
                $ 100,000 USD (Cien Mil dólares de los Estados Unidos de América 00/100) a
                mas tardar el 30 de Noviembre del
                2005;

            

    

    

    
      	j)  	
              USD
                $60,000 USD (Sesenta mil dólares de los Estados Unidos de América 00/100)
                a mas tardar el 30 de Agosto del
                2006;

            

    

    

    
      	k)  	
              USD
                $ 140,000 USD( Ciento Cuarenta mil dólares de los Estados Unidos de
                América 00/100) a mas tardar el 30 de Agosto del
                2007

            

    

    

    
      	l)  	
              USD
                $ 110,000 USD ( Ciento Diez mil dólares de los Estados Unidos de América
                00/ 100) a mas tardar el 30 de Agosto de 2008

            

    

    

    
      	m)  	
              USD
                $ 500,000 USD (Quinientos Sesenta Mil dólares de los Estados Unidos de
                América 00/100) a la fecha de ejercicio de la Opción y transmisión a la
                Exploradora del 100% de la titularidad de las Concesiones
                Mineras.

            

    

    

    4.1.2. Para
      efectos de recibir todos los pagos pactados en la presente Cláusula 4.1.1. los
      Concesionarios acuerdan que dichos pagos deberán ser hechos por tres partes
      iguales (33.3%) a cada uno de los Concesionarios y que cada concesionario
      entregará la Exploradora la factura y recibo fiscal correspondiente por cada
      pago que cada uno reciba. Los Concesionarios nombran en el presente acto al
      Sr.
      MARIO HUMBERTO AYUB TOUCHE como su representante legal común, con poderes
      suficientes conforme al artículo 2,554 de Código Civil Federal, para que reciba
      en su nombre y representación el pago que a cada uno le corresponda conforme al
      presente Contrato. 

    

    El
      pago
      de cualquier cantidad de dinero establecido en la cláusula 4.1.1. párrafos a),
      b), c), d), no obliga a la Exploradora a realizar ninguno de los pagos
      subsiguientes que ahí se establecen.     

    

    4.2. Terminación
      Anticipada.
      El
      presente Contrato contiene un derecho de Opción solamente. La Exploradora, mas
      no los Concesionarios, podrá en cualquier tiempo con anterioridad al ejercicio
      de la Opción, renunciar anticipadamente a sus derechos y terminar el presente
      Contrato mediante notificación por escrito al representante común de los
      Concesionarios con treinta (30) días de anticipación; en caso de dicha
      terminación anticipada el presente Contrato cesará de surtir efectos jurídicos,
      con excepción de las obligaciones de la Exploradora generadas con anterioridad a
      la fecha efectiva de dicha terminación. 

    

    4.5. Obligaciones
      Adicionales.
      Durante
      el Periodo de la Opción, la Exploradora deberá mantener las Concesiones Mineras
      vigentes, incluyendo, sin limitar, el pago de los derechos de minería
      correspondientes y la comprobación de obras conforme a lo ordenado en la Ley
      Minera y su Reglamento. La Exploradora será asimismo responsable del pago de los
      derechos de minería generados, incluyendo suerte principal, actualizaciones y
      recargos, a partir del 1 de Enero del 2004. 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    CLAUSULA
      5

    EJERCICIO
      DE LA OPCION

    

    5.1.
      Previo al ejercicio de la Opción conforme a la Cláusula 4.1.1. la Exploradora
      deberá notificar por escrito al representante común de los Concesionarios su
      intención de ejercer la Opción (la “Notificación de Ejercicio”). Al ejercicio de
      la Opción en los términos aquí pactados, los Concesionarios y la Exploradora, o
      los sucesores o causahabientes de la Exploradora según sea el caso, deberán,
      dentro de un término de quince (15) días posteriores a la recepción de la
      Notificación de Ejercicio por parte del representante común de los
      Concesionarios, debidamente firmar, ratificar notarialmente y presentar para
      su
      inscripción ante el Registro Público de Minería de la Dirección General de Minas
      de la Secretaría de Economía, un contrato traslativo de dominio (el “Contrato
      Traslativo”) mediante el cual sea transmitido a la Exploradora el 100% de la
      titularidad de las Concesiones Mineras, libres de todo gravamen, carga,
      afectación o reclamación de tercero alguno, sin ninguna prestación adicional
      para los Concesionarios. 

    

    5.2. La
      Notificación e Ejercicio deberá contener (a) la intención irrevocable de la
      Exploradora para ejercer la Opción (b) la fecha, hora y lugar en donde deberán
      comparecer todos los Concesionarios y la Exploradora para firmar y ratificar
      ante notario público el Contrato Traslativo y (c) un proyecto del Contrato
      Traslativo el cual contendrá estrictamente los términos y condiciones
      estipulados en el presente Contrato. 

    

    CLAUSULA
      6

    DERECHOS
      DE EXPLORACION Y ACCESO

    

    6.1. Durante
      el Período de la Opción, la Exploradora, sus representantes, trabajadores y
      contratistas independientes tendrán el derecho con respecto a las Concesiones
      Mineras y conforme a derecho mexicano de desarrollar cualquier actividad
      tendiente a la identificación de depósitos minerales en cualquier porción de las
      Concesiones Mineras y la cuantificación y evaluación de reservas minerales para
      determinar si son económicamente aprovechables, incluyendo: 

     

    
      	(e)  	acceder
              al área que comprenden dichas Concesiones
              Mineras,

      	 	 

      	(f)  	
              prospectar,
                explorar, desarrollar y cualquier otra actividad de minado que la
                Exploradora considere recomendable, incluyendo, sin limitar, barrenación,
                zanjeo, actividades de excavación, medición geológica, geoquímica o
                geofísica y el mapeo de los resultados obtenidos por los mismos,
                incluyendo medición aérea; muestreo de suelo, sedimentos y rocas; análisis
                metalúrgicos y pruebas sobre muestras; ensaye de contenido mineral de
                todas las muestras y pruebas por planta
                piloto;

            

    

    

    
      	(g)  	
              construir
                o ubicar sobre las Concesiones Mineras cualquier edificio, planta,
                maquinaria y equipo que recomiende la Exploradora,
                y

            

    

    

    
      	(h)  	
              remover
                de las Concesiones Mineras y disponer de cantidades razonables de
                minerales y metales con el propósito de obtener ensayes o la elaboración
                de otras pruebas

            

    

    (colectivamente
      denominadas en lo sucesivo, las “Actividades de Exploración”).

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    CLAUSULA
      7

    REGALIA
      SOBRE LIQUIDACIONES NETAS Y DERECHOS DE EXPLOTACIÓN

    

    7.1. Los
      Concesionarios en forma colectiva se reservan el derecho a una regalía acumulada
      del dos punto cinco porciento (2.5%) sobre las liquidaciones netas obtenidas
      por
      la Exploradora por la venta de mineral extraído de cualquier porción de las
      Concesiones Mineras. Al ser utilizado en el presente Contrato, el término
“Regalía
      Sobre Liquidaciones Netas”
      tendrá
el significado establecido en el Anexo B adjunto y que forma parte del presente
      Contrato; y continuará vigente mientras la Exploradora y sus sucesores y
      causahabientes mantengan un interés jurídico en las Concesiones Mineras.

    

    7.2.
      Los
      Concesionarios en forma colectiva se reservan el derecho de realizar actividades
      de extracción de material de roca de cualquier porción de las Concesiones
      Mineras hasta una cantidad que NO deberá de exceder las cinco mil (5,000)
      toneladas mensuales a partir de la fecha de la firma del presente Contrato
      (los
“Derechos de Explotación”); con respecto a los Derechos de Explotación, las
      partes acuerdan lo siguiente:

    

    
      	a)  	
              la
                cuota permitida por mes no es acumulable; cualquier porción sin usar de
                dicha cuota para cualquier mes no podrá sumarse a la cuota del(los)
                siguiente(s) mes(es);

            

    

    

    
      	b)  	
              ninguna
                actividad desarrollada por ninguno de los Concesionarios con motivo
                de los
                Derechos de Explotación podrá interferir, dilatar u obstaculizar ninguna
                de las actividades a desarrollarse por la Exploradora conforme a
                la
                Cláusula 6;

            

    

    

    
      	c)  	
              en
                caso de que alguno de los Concesionarios contemple o desarrolle alguna
                de
                las actividades descritas en la definición de Derechos de Explotación,
                dentro de un área donde la Exploradora ha comenzado o este contemplando la
                realización de cualquiera de las actividades descritas en la Parte 6, la
                ejecución de las Actividades de Exploración por parte de la Exploradora
                tendrán en todo tiempo el primer derecho absoluto y la inobjetable
                prioridad sobre cualquiera de las actividades de explotación que estén
                siendo contempladas o hayan sido iniciadas por dicho concesionario;
                en
                caso de que alguno de los Concesionarios se encontrara desarrollando
                actividades de explotación en un área donde la Exploradora contemple el
                desarrollo de actividades de exploración conforme al presente Contrato, la
                Exploradora deberá otorgar a dicho concesionario un término de diez (10)
                días naturales para que cese todas sus actividades de explotación que se
                encuentre desarrollando en dicha área; siempre y cuando las actividades de
                explotación estorbe al desarrollo de los trabajos de exploración que desee
                realizar “ La Exploradora”. Los Concesionarios podrán reiniciar los
                trabajos de explotación en esa área, una vez que la exploradora haya
                terminado los trabajos de exploración en ella. Las dos partes , La
                Exploradora y Los Concesionarios, harán su mejor esfuerzo para no
                interferir en la realización de los trabajos de la otra
                parte.

            

    

    

    
      	d)  	
              los
                Derechos de Explotación otorgados en el presente acto cesarán en todos sus
                efectos en la fecha del ejercicio de la Opción por parte de la
                Exploradora; 

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

       

    

    
      	e)  	
              los
                Concesionarios, sus representantes y contratistas deberán cumplir con
                todos los ordenamientos impuestos por la legislación minera, laboral, de
                protección al medio ambiente, fiscal o de cualquier otra naturaleza que
                sean aplicables durante, con anticipación o una vez concluidas las
                actividades realizadas con motivo de los Derechos de Explotación, y serán
                responsable exclusivos frente a terceros y autoridades competentes
                de toda
                sanción, penalidad o sentencia emitida con motivo de lo anterior;
                

            

    

    

    
      	f)  	
              los
                Concesionarios, sus representantes y contratistas deberán indemnizar y
                mantener a la Exploradora a salvo de toda pérdida, responsabilidad civil,
                demanda, acusación o sentencia que pudiera determinarse o emitirse en
                contra de dicha Exploradora, sus representantes o contratistas por
                terceros o autoridad competente de todo tipo con motivo o resultado
                de
                alguna violación o contravención por parte de alguno de los Concesionarios
                a las disposiciones impuestas en materia de minería, laboral, ecológica o
                fiscal; 

            

    

    

    
      	g)  	
              los
                Concesionarios, sus representantes y contratistas deberán restaurar y
                rehabilitar cualquier daño que fuera causado al suelo o subsuelo del área
                amparada por las Concesiones Mineras, durante o como resultado del
                desarrollo de cualquiera de las actividades descritas en los Derechos
                de
                Explotación; y deberán asimismo limpiar, mantener en buenas condiciones y
                rehabilitar / restaurar dicho suelo, subsuelo o terreno a la conclusión de
                dichas actividades; 

            

    

    

    
      	h)  	
              los
                Concesionarios, sus representantes y contratistas deberán solicitar y
                obtener de las autoridades municipales, estatales o federales, o
                de las
                personas físicas o morales que corresponda según sea el caso, todo
                permiso, autorización, concesión o resolución favorable (o cuando sea
                requerido en derecho presentar un aviso) para autorizar a dichos
                Concesionarios para: realizar cualquiera de las actividades comprendidas
                dentro de la definición de Derechos de Explotación.
                

            

    

    

    
      	i)  	
              las
                partes acuerdan que no existe relación laboral alguna entre los
                trabajadores o contratistas de una parte con respecto a la otra;
                por lo
                tanto, las partes expresamente convienen en que cada parte asumirá
                individualmente toda responsabilidad u obligación impuesta a ellas por la
                legislación laboral o fiscal, así como toda obligación impuesta a cada
                parte con respecto a sus trabajadores y contratistas; por consiguiente,
                cada parte conviene en mantener a la otra parte libre y a salvo de
                cualquier reclamación, demanda, acusación o queja que pudiere presentarse
                en su contra por los trabajadores o empleados de la otra parte, o
                por los
                de sus contratistas, ante cualquier autoridad laboral, administrativa
                o
                judicial; 

            

    

    

    
      	j)  	
              la
                Exploradora tendrá acceso a cualquier área en donde se estén desarrollando
                o se contemple el desarrollo de actividades relacionadas con los
                Derechos
                de Explotación, con el objeto de verificar e inspeccionar el cumplimiento
                con las obligaciones contenidas en esta Cláusula; los Concesionarios
                otorgarán a la Exploradora acceso a cualquier lugar y le deberá proveer
                todo documento o información para los propósitos aquí
                mencionados;

            

    

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    CLAUSULA
      8

    TERMINACION
      DE LA OPCION

    

    8.1. Si
      la
      Opción es terminada conforme a lo previsto en la Cláusula 4.2., la Exploradora
      deberá entregar al representante común de los Concesionarios, dentro de los
      noventa (90) días posteriores a dicha terminación, copia de todo reporte, mapa,
      resultado de ensaye y otra información técnica relevante que se encuentre en
      posesión de la Exploradora con respecto a las Concesiones Mineras.

    

    CLAUSULA
      9

    CESION

    

    9.1. La
      Exploradora, pero no los Concesionarios, podrá, en todo tiempo durante el
      Periodo de la Opción, vender, transmitir o disponer en cualquier forma de
      cualquier parte de sus derechos adquiridos en el presente Contrato (sin
      requerimiento de consentimiento adicional por parte de los Concesionarios),
      con
      la condicionante de que todo cesionario, adquirente o causahabiente de dichos
      derechos o interés deberá previamente asumir todas las obligaciones de la
      Exploradora pactadas en el presente Contrato. Los Concesionarios podrán
      trasmitir sus derechos a terceros, notificando por escrito a la Exploradora.
      Los
      Concesionarios podrán trasmitir sus derechos en este contrato a un Afiliado si
      previo aviso a la Expotadora. 

    

    CLAUSULA
      10

    FUERZA
      MAYOR

    

    10.1. En
      caso
      de que la Exploradora en cualquier tiempo durante el Periodo de la Opción o con
      posterioridad al mismo sea impedida o retrazada en el cumplimiento con
      cualquiera de las obligaciones contenidas en el presente Contrato por razones
      de
      huelgas, interrupciones, escasez de fuerza laboral, apagones eléctricos, escasez
      de combustible, incendios, guerras, actos de Dios, reglamentación gubernamental
      que restrinja las operaciones normales, retrasos de embarque o por cualquier
      otra razón o rezones más allá del control de la Exploradora, el término para el
      cumplimiento de la obligación respectiva por parte de la Exploradora deberá ser
      prorrogado por un periodo de tiempo igual al periodo de tiempo de dicho
      impedimento o tardanza.

    

    10.2. La
      Exploradora deberá, dentro de un término de treinta (30 ) días, notificar al
      representante común de los Concesionarios de cada caso de Fuerza mayor
      contemplado en le Cláusula 10.1. y una vez que dicho evento cese deberá de
      notificarlo asimismo en ese sentido, adjuntando las particularidades del número
      de días por los cuales el cumplimiento de las obligaciones de la Exploradora han
      sido extendidas como resultado de dicho evento de fuerza mayor, así como por
      todos los casos anteriores de fuerza mayor.

    

    CLAUSULA
      11

    INCUMPLIMIENTO
      Y TERMINACIÓN

    

    11.1. Si
      en
      cualquier momento durante la vigencia del presente Contrato una de las partes
      (en lo sucesivo, la “Parte Incumplida”) incumple cualquiera de sus obligaciones
      pactadas en el presente Contrato o se encuentra en falsedad de alguna de sus
      manifestaciones o garantías 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    declaradas
      en el mismo, cualquiera de las otras partes tendrá el derecho de dar por
      terminado el presente Contrato, pero sólo si

    

    
      	(c)  	
              dicha
                parte ha entregado previamente a la Parte Incumplida una notificación de
                incumplimiento describiendo las particularidades de la obligación a la
                cual se ha incumplido o la manifestación o garantía falsa,
                y

            

    

    

    
      	(d)  	
              la
                Parte Incumplida no ha remediado dicho incumplimiento dentro de un
                término
                de treinta días posteriores a dicha notificación o ha comenzado los
                trámites para remediar dicho incumplimiento mediante pago oportuno o
                cumplimiento de obligación. 

            

    

    

    CLAUSULA
      12

    NOTIFICACIONES

    

    12.1. Notificaciones.
      .
      Todos
      los avisos o notificaciones que deban darse entre las partes como resultado
      de
      la aplicación del presente contrato deberán darse por escrito y deberán ser
      dirigidos a las partes al domicilio que corresponda a su último domicilio
      manifestado para efectos de este contrato, el cual hasta que no exista
      comunicación por escrito en contrario deberá entenderse que es el
      siguiente:

     

    
      	 A la Exploradora:	 A los Concesionarios:
	
               

              Atención: Al Administrador Único

              Av. Del Mar No. 1022-5 Zona Costera

              Mazatlán, Sinaloa, México. C. P.82149

              Tel. (6699) 90 05 48

              Fax.(6699) 86 98 59 

            	
               

              Representante Común: Mario Ayub 

              Pascual Orozco No. 2117 Col. Cima

              Chihuahua, Chihuahua, México.

              C.
                P. 

              Tel. (614)
                414-7191

            

    

     

    

    Las
      partes podrán cambiar sus domicilios mediante notificación con diez (10 ) días
      de anticipación a la otra parte.

    

    Para
      efecto de todas las notificaciones que la Exploradora deba entregar a los
      Concesionarios conforme al presente Contrato, dichos Concesionarios nombran
      unánimemente al Sr. Mario Humberto Ayub Touche como su representante común con
      poderes suficientes conforme a derecho para que en su nombre y representación
      reciba y escuche toda notificación dirigida a dichos
      Concesionarios.

    

    12.2. Todas
      las
      notificaciones deberán ser hechas: (i) personalmente, o (ii) mediante medios
      electrónicos, con confirmación subsiguiente por correo certificado o registrado
      solicitando la confirmación de recepción correspondiente, o (iii) mediante
      correo certificado o registrado solicitando la confirmación de recepción
      correspondiente o mediante servicio de paquetería comercial. Toda notificación
      será válida y se considerará que ha sido recibida (i) si fue hecha
      personalmente, en la fecha en la que fue hecha si es que fue hecha durante
      horario normal de trabajo, y si no fue hecha en horario normal de trabajo,
      en el
      día hábil siguiente a la fecha de la notificación, (ii) si hecha mediante medios
      electrónicos, en el día hábil siguiente al recibo de la confirmación enviada por
      correo certificado o registrado, y (iii) 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    si
      solamente fue hecha mediante correo o paquetería comercial, en el día hábil
      siguiente a su recepción. 

    

    

    CLAUSULA
      13

    DERECHO
      APLICABLE 

    

    13.1. Derecho
      y Tribunales Aplicables.
      El
      presente Contrato deberá ser interpretado y estará regulado por las
      disposiciones aplicables de la Ley Minera y su Reglamento, el Código de Comercio
      y el Código Civil del Estado de Chihuahua, Mexico. Para el caso de
      interpretación, cumplimiento o ejecución del presente Contrato o interpretación
      de lo no expresamente estipulado en el mismo, las partes se someten a la
      competencia de los tribunales estatales y federales con cede y competencia
      en la
      Ciudad de Chihuahua, Estado de Chihuahua, renunciando a la jurisdicción de
      cualquier otro juzgado, tribunal o corte, de cualquier naturaleza, a la que
      pudieran tener derecho en virtud de sus domicilios actuales o futuros, o en
      virtud de cualquier dispositivo legal que fuera o pudiera ser
      aplicable.

    

    CLAUSULA
      14

    GENERAL

    

    14.1. Las
      partes deberán actuar de Buena fe y cooperación mutua en todos los asuntos
      relacionados con el presente Contrato, en el entendido de que:

    

    
      	(d)  	
              dicha
                relación no deberá imponer a ninguna de ellas ninguna obligación o
                responsabilidad distintas a las pactadas en el presente
                Contrato,

            

    

    

    
      	(e)  	
              el
                presente Contrato no deberá constituir o crear una asociación entre las
                partes o crear ninguna obligación mancomunada o individual y mancomunada
                entre éllas,

            

    

    

    
      	(f)  	
              ninguna
                de las partes deberá tener autoridad para actuar, o asumir ninguna
                obligación o responsabilidad, en nombre de la otra parte, con excepción de
                lo expresamente estipulado en el presente
                Contrato.

            

    

    

    14.2. El
      presente Contrato contiene el acuerdo total de las partes respecto a su objeto,
      por lo que el mismo cancela y deja sin efecto cualquier otro acuerdo, convenio
      o
      carta de intención, ya sea verbal o escrito, que hayan celebrado las partes con
      respecto a dicho objeto.

    

    14.3.
       El
      presente Contrato no podrá ser modificado, al menos que dichas modificaciones
      sean hechas por escrito por las partes.

    

    14.4. Las
      partes deberán realizar o promover la realización oportunamente de todo acto o
      documento que razonablemente sea requerido o recomendable para ejecutar la
      voluntad de las partes contenidas en el presente Contrato.

    

    14.5. El
      presente Contrato beneficia y obliga a las partes, así como a sus respectivos
      causahabientes y cesionarios autorizados.

    

    14.6. Las
      partes firman el presente Contrato en los idiomas Español e Inglés; en caso de
      discrepancia entre las dos versiones, las versión en Español prevalecerá. Las
      partes reconocen 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    haber
      obtenido el suficiente asesoramiento legal independiente y el haber leído y
      entendido (a través de sus respectivos intérpretes y asesores legales) los
      efectos legales y validez del presente Contrato en las versiones Español e
      Inglés. La versión en Inglés se anexa para referencia como Anexo C, el cual
      forma parte íntegra del mismo para todos los efectos legales que haya
      lugar.

    

    

    

    

    

    

    

    

    EN
      CONTANCIA DE LO ANTERIOR, las partes firman el presente Contrato en el lugar
      y
      fecha arriba indicados.

    

    LOS
      “CONCESIONARIOS”

    

    COMPAÑÍA
      MINERA DE NAMIQUIPA, SA DE CV

    

    

    _________________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    PRESIDENTE
      DEL CONSEJO DE ADMINISTRACION

    

    

    MINERA
      RIO TINTO, SA DE CV

    

    

    _________________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    PRESIDENTE
      DEL CONSEJO DE ADMINISTRACION

    

    

    _______________________________

    MARIO
      HUMBERTO AYUB TOUCHE

    POR
      SUS
      PROPIOS DERECHOS

    

    

    LA
      “EXPLORADORA”

    SUNBURST
      MINING DE MEXICO, S.A. DE C. V.

    

    

    __________________________

    TRACY
      ALLIN MOORE

    ADMINISTRADOR
      UNICO

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    ANEXO
      A

    CONCESIONES
      MINERAS

    

    ANEXO
      A - 1

    CONCESIONES
      MINERAS

    PROPIEDAD
      DE MINERA RIO TINTO, SA DE CV

     

    CONCESION
      MINERA GUZAPARES 5

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Guazapares 5

            

    

    
      	1.2.  	
              Título
                No.: 213572

            

    

    
      	1.3.  	
              Titulares
                (es): Minera Río Tinto, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 152, foja 76,
                Volumen 319

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Clase:
                Exploración

            

    

    
      	1.7.  	
              Término
                de Vigencia: 18/05/2001 al 17/05/
                2007

            

    

     

      
        

      

    

     

    CONCESION
      MINERA VINORAMA

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Vinorama

            

    

    
      	1.2.  	
              Solicitud
                de Exploración: Exp. 082/29275

            

    

    
      	1.3.  	
              Titulares
                (es): Minera Río Tinto, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.5.  	
              Clase:
                Exploración.

            

    

    
      	1.6.  	
              Fecha
                de Registro: 25 de Octubre de 2004.

            

    

     

    ANEXO
      A - 2

    CONCESIONES
      MINERAS PROPIEDAD DE MINERA NAMIQUIPA, SA DE CV

    

    CONCESION
      MINERA GUAZAPARES

    

    1. Descripción
      Legal:

    

    
      	1.2.  	
              Lote:
                Guazapares 

            

    

    
      	1.3.  	
              Título
                No.: 209497

            

    

    
      	1.4.  	
              Titulares
                (es): Compañía Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.5.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 37, foja 19, Volumen
                308

            

    

    
    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      	1.6.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.7.  	
              Clase:
                Exploración

            

    

    
      	1.8.  	
              Término
                de Vigencia: 03/08/1999
                al 02/08/2005

            

    

     

    
      
 

    CONCESION
      MINERA GUZAPARES 1

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Guazapares 1

            

    

    
      	1.2.  	
              Título
                No.: 212890

            

    

    
      	1.3.  	
              Titulares
                (es): Compañía Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 190, foja 95,
                Volumen 317

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Clase:
                Exploración

            

    

    
      	1.1.  	
              Término
                de Vigencia: 13/02/2001
                al 12/02/2007.

            

    

    

    
      
 

    CONCESION
      MINERA GUAZAPARES 2

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Guazapares 2

            

    

    
      	1.2.  	
              Título
                No.: 207499

            

    

    
      	1.3.  	
              Titulares
                (es): Compañía Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 199, foja 100,
                Volumen 302

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Clase:
                Exploración

            

    

    
      	1.7.  	
              Término
                de Vigencia: 28/06/1998
                al 23/06/2004

            

    

     

    
      
 

    CONCESION
      MINERA GUAZAPARES 3

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Guazapares 3

            

    

    
      	1.2.  	
              Título
                No.: 211040

            

    

    
      	1.3.  	
              Titulares
                (es): Compañía Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 140, foja 70,
                Volumen CCCXII

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Clase:
                Exploración

            

    

    
      	1.7.  	
              Término
                de Vigencia: 24/03/2000
                al 23/03/2006.

            

    

     

    
      
 

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      
 

    CONCESION
      MINERA GUZAPARES 4

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Guazapares 4

            

    

    
      	1.2.  	
              Título
                No.: 223664

            

    

    
      	1.3.  	
              Titulares
                (es): Compañía Minera de Namiquipa, S.A. de
                C.V.

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 164, foja 82,
                Volumen 347

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua

            

    

    
      	1.6.  	
              Clase:
                Explotación

            

    

    
      	1.7.  	
              Término
                de Vigencia: 01/02/2005
                al 01/02/2055

            

    

    

    
      
 

    ANEXO
      A - 3

    CONCESIONES
      MINERAS PROPIEDAD DE MARIO AYUB TOUCHE

    

    

    CONCESION
      MINERA CANTILITO

    

    1. Descripción
      Legal:

    

    
      	1.1.  	
              Lote:
                Cantilito

            

    

    
      	1.2.  	
              Título
                No.: 220788

            

    

    
      	1.3.  	
              Titulares
                (es): Mario Humberto Ayub Touche

            

    

    
      	1.4.  	
              Registro
                del Titulo: Libro de Concesiones Mineras, Acta Número 168 foja 84 Volumen
                339

            

    

    
      	1.5.  	
              Ubicación:
                Guazapares, Chihuahua.

            

    

    
      	1.6.  	
              Clase:
                Explotación

            

    

    
      	1.7.  	
              Término
                de Vigencia: 07/10/2003 al
                06/12/2053.

            

    

     

    
      

    

    
 

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    ANEXO
      B

    

    REGALIAS
      SOBRE LIQUIDACIONES NETAS DE FUNDICION

    

    ARTICULO
      I

     

    DEFINICIONES

     

    Todos
      los
      términos en mayúsculas que se utilicen pero que no sean definidos en el presente
      Anexo deberán tener el significado asignado a dichos términos en el presente
      Contrato. Los términos siguientes los cuales son utilizados en el presente
      instrumento deberán tener los siguientes significados (en caso que cualquier
      término o definición en este Anexo estuviera en conflicto con algún término o
      definición señalado en el Contrato, el término o definición en el presente Anexo
      deberá prevalecer o gobernar):

    

    
      	1.2  	
              “Afiliado”
                significa toda Persona que directa o indirectamente Controla, es
                Controlada o se encuentra bajo el Control común de una de las partes del
                presente Contrato. 

            

    

     

    
      	1.3  	
              “Contrato”
                significa
                el presente Contrato de Opción de Compra celebrado con respecto a la
                Propiedad por el Otorgante y el Propietario de la Regalía al cual el
                presente Anexo se adjunta y forma parte.

            

    

     

    
      	1.4  	
              “Deducciones
                Permitidas ”
                significa los siguientes gastos que serán deducidos de los Ingresos:
                

            

    

     

    
      	b)  	
              gastos
                de fundición y refinación, muestreo y tratamiento, así como castigos
                incluyendo de forma enunciativa mas no limitativa, pérdidas de metal y
                castigos por impurezas, así como los cargos por refinación, venta y manejo
                por la fundición y refinería (incluyendo los cargos de la participación
                del precio por las refinaciones y/o
                refinería);

            

    

    

    
      	c)  	
              gastos
                de manejo, transportación y aseguramiento de dicho material de los lotes
                mineros o de un concentrador, ya sea que se encuentre situado dentro
                o
                fuera de dichos lotes, a una fundición, refinería u otro lugar para su
                tratamiento, y en el caso de concentrados de oro, plata u otro metal
                precioso, los costos de seguro;

            

    

    

    
      	d)  	
              impuestos
                ad-valorem
                e
                impuestos basados en las ventas de producción, en caso de que sean
                aplicables, pero no el Impuesto sobre la
                Renta;

            

    

    

    
      	e)  	
              gastos
                de mercadotecnia, incluyendo comisiones por la venta de los Productos
                Minerales pagados a personas fisicas o morales no afiliadas a la
                Exploradora,

            

    

    

    
      	f)  	
              cualquier
                otro gasto que convengan las partes por
                escrito.

            

    

    

    

    
      	1.5  	
              “Area
                de Interés”
                significa el área superficial amparadas por las Concesiones
                Mineras.

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

       

    

    
      	1.6  	
              “Compañía”
                significa Sunburts Mining de México, S.A. DE C.V., sociedad debidamente
                constituida conforme a las leyes de los Estados Unidos Mexicanos,
                la cual
                es la Otorgante en el presente Contrato, así como sus sucesores y
                causahabientes permitidos.

            

    

     

    
      	1.7  	
              “Producción
                Comercial”
                significa el momento en el cual el Otorgante o su operador autorizado
                realice recuperación sostenida a escala comercial, la cual produce una
                cantidad de Productos suficiente para indicar claramente que el propósito
                principal es la producción a comercial escala y no producción simplemente
                con la intención de obtener información, análisis o prueba de equipo o de
                la planta. 

            

    

     

    
      	1.8  	
              “Control”
                utilizado como verbo, cuando se usa con respecto a un ente, la habilidad
                de dirigir, directa o indirectamente a través de uno o más intermediarios,
                o de causar la dirección de la administración y políticas de dicho ente
                mediante (a) la propiedad o el beneficio de títulos de crédito con
                derechos de voto o membresía; (b) el derecho de nombrar administradores,
                consejeros o administración corporativa; (c) contratos; (d) convenios de
                operación; (e) fideicomisos con derechos de voto; o de alguna otra forma;
                y cuando el término se usa con respecto a una persona física, significa la
                habilidad legal o real para controlar las acciones de otra persona
                a
                través de relaciones de parentesco, gestoría, contrato o de cualquier otra
                forma; y cuando el término “Control” es usado como sustantivo, significa
                el interés que otorga a su poseedor la habilidad de ejercer cualquiera de
                los poderes señalados
                anteriormente.

            

    

     

    
      	1.9  	
              “Ingreso
                Contable”
                significa lo siguiente: 

            

    

     

    
      	1.9.1  	
              En
                lo casos en los que el Otorgante o sus Afiliados produzcan como Producto
                final o hayan producido como Producto final mediante un contrato
                de operación,
                fundición o refinación, o mediante cualquier otra transacción que resulte
                en acreditamiento o reembolso a la cuenta del Otorgante o sus Afiliados:
                (a) un material de cobre que reúna ya sea los requerimientos aceptables de
                entrega establecidos por el London
                Metal Exchange (“LME”)
                para el caso de Cobre Cátodo o para Cobre de Alta Ley que reúna los
                requerimientos de entrega de la division de COMEX del New
                York Mercantile Exchange ("COMEX");
                y/o (b) bulion fino de oro de 0.995 o mejor (“Bulion de Oro”); y/o (c)
                bulion de silver de 0.9995 o mejor (“Bulion de Plata”), en cada caso
                concentrados de mineral u otro material que haya sido minado y removido
                de
                la Propiedad; entonces, sin importar lo pactado en contrario en este
                Anexo, el término “Ingreso Contable” por dicho metal deberá ser entendido
                que significa el
                número neto de libras avoirdupois
                de cobre y/o onzas troy de Bulion de Oro y/o Bulion de Plata, según sea el
                caso, acreditado o reembolsado a la cuenta del Otorgante o sus Afiliados
                en un trimestre de calendario,
                multiplicado por: (i) para el metal de cobre, el promedio del Precio
                de
                Compra del LME para el caso de Cobre Cátodo de
                Ley “A” y en caso de Cobre de Alta Ley de COMEX el promedio del precio más
                cercano de spot
                en
                COMEX, en ambos casos durante el trimestre de calendario durante
                el cual
                dicho cobre es acreditado o reembolsado; (ii) para el Bullion de
                Oro, el
                promedio del Precio
                Fijo del London Bullion Market Association P.M.
                para el trimestre de calendario en el cual dicho metal es acreditado
                o
                reembolsado; o (iii) para el Bulion de Plata, el promedio del Precio
                Fijo del London Bullion Market Association
                para el trimestre de calendario en el cual dicho metal es acreditado
                o
                reembolsado. 

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	1.9.2  	
              El
                precio promedio para el trimestre de calendario respectivo deberá ser
                determinado dividiendo la suma de todos los precios diarios publicados
                durante el trimestre respectivo por la suma del número total de días en lo
                que dichos precios fueron publicados. El precio publicado deberá ser
                obtenido, en el caso del Cobre Cátodo de Ley A del LME o el Cobre Grado
                COMEX, de la publicación Platt’s
                Metals Price Alert, Metals Week Monthly Averages
                por el periodo aplicable o en Metals
                Bulletin,
                pero siendo corregidos por las publicaciones oficiales del COMEX
                o el
                London
                Metal Exchange en
                los casos en que existieren errores de imprenta; y en el caso de
                todos los
                otros precios, en la publicaciones The
                Wall Street Journal, Reuters,
                u
                otras fuentes fidedignas seleccionadas por el Otorgante. Si el precio
                de
                compra del LME para Cobre Cátodo Ley
                A, o el precio de spot
                COMEX
                más cercano para el Cobre de Alta Ley o el Precio Fijo del Bulion de
                Oro
                del London
                Bullion Brokers P.M.
                o
                el Precio Fijo del Bulion de Plata del London
                Bullion Brokers P.M.,
                según sea el caso, dejara de publicarse, las Partes deberán acordar un
                método alternativo para determinar el precio promedio diario de
                spot
                para el cobre refinado, el Bulion de Oro o el Bulion de Plata, según sea
                el caso, y si no llegaran a un acuerdo, será usado el promedio diario del
                precio de compra del LME aplicable durante dicho periodo, según sea el
                caso, que sea determinado razonablemente por el Otorgante.
                

            

    

     

    
      	1.9.3  	
              En
                los casos en los que un Producto intermedio que no se haya descrito
                anteriormente como Producto final sea distribuido a un Afiliado del
                Otorgante y dicho Producto intermedio es convertido por dicho Afiliado
                a
                un Producto que reúna los estándares descritos en esta definición,
                entonces para efectos de calcular el Ingreso Contable, dicho Producto
                será
                considerado como producido, y el Ingreso Contable como recibido,
                por el
                Otorgante. 

            

    

     

    
      	1.10  	
              “GAAP”
                significa los principios contables generalmente aceptados que se
                describen
                en las opiniones y pronunciamientos del Consejo de Principios Contables
                del Instituto Americano de Contadores Públicos Certificados y en los
                pronunciamientos del Consejo de los Estándares sobre Contabilidad
                Financiera, de tiempo en tiempo, aplicados en forma
                consistente.

            

    

     

    
      	1.11  	
              “Otorgante”
                significa
                la Compañía y sus sucesores y
                causahabientes.

            

    

     

    
      	1.12  	
              Mina
                significa toda excavación en la tierra o en jales, ya sea que sea
                trabajada o no, hecha con el propósito de extraer o explotar Productos, y
                deberá incluir:

            

    

     

    
      	(a)  	
              todo
                tiro, mina de superficie, túnel o abertura, subterránea o de cualquier
                otra naturaleza, de la cual o a través de la cual los Productos son o
                podrán ser removidos o extraídos por cualquier método, en cantidades
                mayores a las requeridas para efectos de
                evaluación;

            

    

     

    
      	(b)  	
              el
                área de minado y todo edificio, estructura, desechos de mina, maquinaria,
                equipo, herramientas, caminos de acceso, pistas de aterrizaje, cables
                de
                electricidad, instalaciones de generación de energía, instalaciones de
                secado y evaporación, ductos, vías férreas y otras instalaciones para el
                minado, transportación, almacenamiento y depósito de Productos, desechos y
                otros materiales; y

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              otras
                instalaciones u objetos requeridos o pretendidos para el uso o con
                el
                propósito o en conexión con dicha extracción o
                explotación.

            

    

     

    

    
      	1.13  	
              “Ingreso
                Neto”
                significa el Ingreso menos las Deducciones Permitidas con relación a dicho
                Ingreso, en cada caso por el trimestre de calendario aplicable.
                

            

    

     

    
      	1.14  	
              “Regalía
                sobre Liquidaciones Netas”
                significa la regalía otorgada mediante el presente Anexo
                B.

            

    

     

    
      	1.15  	
              “Persona”
                significa
                todo individuo, corporación, fideicomiso, asociación ilimitada, sociedad
                anónima, participación conjunta, organización no constituida, firma,
                estado, autoridad de gobierno o cualquier agencia o subdivisión política
                de las anteriores, o cualquier otro
                ente.

            

    

     

    
      	1.16  	
              “Ingreso
                por Producto Físico”
                significa todo ingreso recibido por Productos distintos a los descritos
                en
                la definición de “Ingresos Contables”. La cantidad de dichos ingresos será
                determinada de la siguiente manera:

            

    

     

    
      	1.16.1  	
              Si
                los Productos minados o extraídos de la Propiedad son vendidos a una
                fundidora, refinería o a otro comprador (distintos al Otorgante o
                Afiliados del Otorgante) en forma de Producto crudo o intermedio
                que no
                reúne los requerimientos establecidos en la subsección 1.9.1 de la
                definición de “Productos Contables” para metales a los que se refiere
                dicho apartado (por ejemplo la venta de concentrados de cobre) o
                son
                distribuidos a un Afiliado pero no son convertidos por dicho Afiliado
                en
                Producto final que reúne los requerimientos de la definición de “Ingreso
                Contable” de los metales previstos anteriormente, entonces la cantidad del
                Ingreso por Producto Físico con respecto a dicho Producto crudo o
                intermedio deberá ser igual a la
                cantidad de ingreso neto recibido realmente por el Otorgante por
                la venta
                física de los Productos a la fundidora, refinería u otro comprador de los
                metales pagables contenidos en dichos Productos,
                incluyendo los bonos, premios y subsidios, y una vez deducidas las
                Deducciones Permitidas, ya sea que hayan sido deducidas por el comprador
                o
                pagadas o incurridas por el Otorgante. En los casos en los que dichos
                Productos son distribuidos en especie a un Afiliado del Otorgante
                y
                posteriormente vendidos sin procesamiento adicional por dicho Afiliado
                o
                en su representación, dicha venta deberá ser considerada como una venta
                realizada por el Otorgante para efectos de cómputo de los cálculos en esta
                subsección 1.19.1 y se considerará que el Otorgante ha recibido el Ingreso
                respectivo.

            

    

     

    
      	1.16.2  	
              Si
                Productos minados y extraídos de la Propiedad y distribuidos a un Afiliado
                mediante una transacción que no esté prevista ni en la subsección 1.19.1 o
                en la definición e Ingreso Contable, entonces en dicho caso el Ingreso que
                se atribuirá a dichos Productos deberá ser el precio del valor justo de
                mercado que de otra forma se hubiera recibido de un tercero en una
                operación no relacionada por la venta de dichos Productos, neto de todas
                las Deducciones Permitidas incurridas.

            

    

     

    
      	1.17  	
              “Productos”
                significa
                todo mineral, concentrado, precipitado, cátodo, soluciones de lixiviación,
                doré, o cualquier otro producto metálico primario,
                

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      	 	intermedio o final extraído, minado o removido de la
              Propiedad para su venta comercial. Productos no deberá incluir ningún
              material minado y extraído de la Propiedad para uso del Otorgate en la
              construcción de caminos, cimientos, construcciones de concreto u otros
              usos industriales relacionados con la Propiedad o el material que sea
              procesado pero que no se haya originado en la
              Propiedad.

    

     

    
      	1.18  	
              “Propiedad”
                para efectos del presente Anexo significa (i) las Concesiones Mineras
                con
                sus modificaciones, cambios o mejoras que se les haga de tiempo en
                tiempo
                por el Otorgante. 

            

    

     

    
      	1.19  	
              “Ingreso”
                significa la suma del Ingreso por Producto Físico y el Ingreso Contable
                correspondiente al trimestre de calendario respectivo.
                

            

    

     

    
      	1.20  	
              “Cuenta
                de Regalías” significa
                la cuenta contable establecida por el Otorgante o en su representación
                para el registro de: 

            

    

     

    (a)  todas
      las
      Deducciones Permitidas, como débito, calculadas al valor en efectivo al momento
      en que el gasto fue incurrido, y

     

    (b)  todo
      el
      Ingreso, como crédito, 

     

    para
      efectos del cómputo de la Regalía sobre Liquidaciones Netas pagadera en cada
      caso por el trimestre de calendario aplicable. 

     

    
      	1.21  	
              “Propietario
                de la Regalía”
                significa, en forma colectiva, los Concesionarios.
                

            

    

     

    “Porcentaje
      de la Regalía”
      significa el dos punto cinco porciento (2.5%).
      

    

    
      	1.22  	
              “Actividades
                de Intercambio”
                significa cualquiera y todas las actividades de protección contra
                variación de precios realizada por el Otorgante o sus Afiliados con
                respecto a cualquiera de los Productos, insumos, tazas de interés o cambio
                de moneda, incluyendo sin limitar, toda venta a futuro y/o contratos
                de
                compraventa, contratos de precio spot
                diferidos,
                contratos de opción, compras especulativas y venta de contratos a futuro,
                futuros y opciones, todos ya sean celebrados dentro o fuera de los
                mercados de valores. Dicha Actividades de Intercambio, y las ganancias
                y
                pérdidas generadas por los mismos, deberán ser considerados en el cálculo
                de las regalías a pagarse al Propietario de la Regalía, en conexión con la
                determinación de precio, la fecha de la compraventa o la fecha en la que
                cualquier pago de regalía es exigible.

            

    

     

    
      	1.23  	
              “Transmisión”
                significa toda venta, otorgamiento, cesión, transferencia, afectación,
                garantía, hipoteca, abandono y toda otra transmisión.
                

            

    

     

    

    ARTICULO
      II

     

    COMPUTO
      Y PAGO DE LA REGALIA SOBRE LOS INGRESOS NETOS

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    
      	2.1  	
              Cómputo.
                Para efectos del cómputo de la Regalía sobre las Liquidaciones Netas, el
                Otorgante deberá multiplicar el Ingreso Neto (registrado como balance
                positivo en la Cuenta de Regalías) por el Porcentaje de la Regalía, en
                cada caso por el trimestre de calendario inmediatamente anterior.
                

            

    

     

    
      	2.2  	
              Pagos. 

            

    

     

    2.2.1. La
      obligación del Otorgante del pago de la Regalía sobre las Liquidaciones Netas
      iniciará a partir de la fecha en la que el Otorgante notifique al Propietario de
      la Regalía el inicio de la Producción Comercial (según se define en el
      Contrato).

     

    2.2.2. Una
      vez
      que el Otorgante determine que el pago por Regalía sobre Liquidaciones Netas es
      exigible y acreditable conforme al presente Anexo, el Otorgante deberá pagar al
      Propietario de la Regalía una cantidad igual a la Regalía sobre las
      Liquidaciones Netas computados conforme a la sección 2.1
      dentro de los cuarenta y cinco (45) días siguientes a la conclusión del
      trimestre de calendario para el cual el cómputo fue hecho, y deberá entregar con
      dicho pago una copia de los cálculos utilizados en relación con dicho pago. Todo
      pago en exceso o insuficiente deberá ser corregido en el trimestre de calendario
      subsiguiente a la determinación de dicho ajuste. 

     

          

    ARTICULO
      III

     

    CONTABILIDAD

     

    
      	3.1  	
              Principios
                Contable.
                Sujeto a lo previsto en legislación fiscal Mexicana en vigor, todos los
                Ingresos y Deducciones Permitidas deberán ser registrados en la Cuenta de
                Regalías y determinados en concordancia con GAAP según sean aplicados por
                el Otorgante.
                Los Ingresos y las Deducciones Permitidas deberán ser determinadas por el
                método contable de incremento

            

    

     

    

    ARTICULO
      IV

     

    AUDITORIAS

     

    4.1  Auditorías.
      El
      Propietario de la Regalía, mediante notificación previa por escrito, tendrá el
      derecho de nombrar a una firma independiente de contadores públicos para auditar
      los registros relacionados con el cómputo de la Regalía sobre las Liquidaciones
      Netas, dentro de los tres (3) meses siguientes al recibo de uno de los pagos
      señalados en la Sección 2.1 anterior.
      Todo
      cómputo que no sea auditado conforme a lo anterior será considerado como final y
      no estará sujeto en lo subsiguiente a auditoría u objeción.

     

    4.2  Disputas.
      Se
      considerará que el Propietario de la Regalía ha renunciado al 

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    derecho
      que pudiera tener para objetar un pago hecho por cualquier trimestre de
      calendario, al menos que notifique por escrito dicha objeción dentro de los tres
      (3) meses siguientes del recibo del pago final correspondiente a dicho trimestre
      de calendario.
      

     

    

    ARTICULO
      V

     

    GENERAL

     

    5.1  Récords.
      El
      Otorgante deberá conservar récords fidedignos respecto a tonelaje, volumen de
      Productos, análisis de Productos, peso, humedad, ensayes sobre metales pagables
      contenidos y otros récords, según sea apropiado, con respecto al cómputo de la
      Regalía sobre Liquidaciones Netas establecida en el presente
      Contrato.
      

     

    5.2  Operaciones.
      El
      Otorgante y sus Afiliados tendrán derecho a (i) tomar todas las decisiones
      operativas con respecto al método y magnitud del minado y procesamiento de los
      Productos minados o derivados de la Propiedad (por ejemplo, sin limitación, la
      decisión de procesar mediante lixiviación en lugar de por trituración
      convencional), (ii) tomar todas las decisiones relacionadas con la venta de
      los
      Productos, y (iii) tomar todas las decisiones concernientes a la clausura
      temporal o a largo plazo de las operaciones.

     

    5.3  Derecho
      a Inspeccionar. El
      Propietario de la Regalía o su representante autorizado podrá, mediante
      notificación previa al Otorgante, entrar a la superficie o porciones de
      superficie de la Propiedad con el propósito de inspeccionar la Propiedad, o sus
      mejoras y operaciones, y podrá inspeccionar y copiar todos los récords e
      información concerniente al cómputo de su interés, incluyendo sin limitar, todos
      los récords e información que sean mantenidos electrónicamente. El Propietario
      de la Regalía o su representante autorizado entrará a la Propiedad a su propio
      riesgo y no podrán irrazonablemente trastornar las operaciones realizadas en la
      Propiedad o con relación a ésta. El Propietario de la Regalía indemnizará y
      liberará de responsabilidad al Otorgante y Afiliados (incluyendo, sin
      limitación, compañías matrices directas e indirectas), así como a sus
      respectivos consejeros, funcionarios, accionistas, trabajadores, gestores y
      abogados de toda responsabilidad legal que pudiera ser imputada, declarada
      o
      incurrida por cualquiera de ellos como resultado de alguna lesión causada al
      Propietario de la Regalía o a sus gestores o representantes por el ejercicio de
      los derechos otorgados en la presente cláusula del Propietario de la
      Regalía.

     

    
      	5.5  	
              Notificaciones.
                

            

    

     

    Toda
      notificación, pago y cualquier otra comunicación (en lo sucesivo las
“Notificaciones”) permitidas o requeridas en el presente Contrato deberán ser
      hechas por escrito y dirigidas a los domicilios del Otorgante y del Propietario
      de la Regalía en la forma y en los términos descritos en el Contrato de Opción
      de Compra al cual se adjunta el presente Anexo.

     

    
      	5.6  	
              Confidencialidad.
                

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    
      	5.6.1  	
              Con
                excepción a lo previsto en la Sección 5.6.2, ninguna información o data
                entregada al Propietario de la Regalía conforme los términos del presente
                Anexo será diseminada por el Propietario de la Regalía a ningún tercero o
                al público en general, sin el consentimiento previo del Otorgante, el
                cual
                no deberá ser negado sin razón.

            

    

     

    
      	5.6.2  	
              El
                consentimiento requerido conforme a la Sección 5.6.1 no aplicará a la
                diseminación:

            

    

     

    
      	5.6.2.1  	
              a
                un Afiliado o representante que posee de Buena fe la necesidad de
                ser
                informado (pero sujeto a las obligaciones de confidencialidad contenidas
                en esta sección);

            

    

     

    
      	5.6.2.2  	
              a
                una dependencia de gobierno o al publico cuando el Afiliado que realiza
                la
                diseminación cree de Buena fe que la misma es requerida por mandato de ley
                aplicable o por los reglamentos de un mercado de
                valores;

            

    

     

    
      	5.6.2.3  	
              realizada
                en relación a un litigio o arbitraje relacionado con una de las Partes
                cuado dicha diseminación es requerida por el tribunal correspondiente o
                es, por consejo del abogado de dicha Parte, necesaria para la consecución
                del juicio, pero sujeto a la notificación previa a la otra Parte para
                permitir a dicha otra Parte el perseguir acciones preliminares
                protectoras.

            

    

     

    
      	5.6.3  	
              Previo
                a cualquier diseminación descrita en las Subsecciones 5.6.2.1, 5.6.2.2 o
                5.6.2.3 anteriores, dicha tercera Parte deberá primeramente acordar el
                proteger la información confidencial de diseminación adicional en el mismo
                grado al que las Parte están obligadas bajo la Sección
                5.6.

            

    

     

    Independientemente
      de todo lo contenido en el presente Contrato en contrario, ninguna de las Partes
      deberá diseminar conforme al presente Contrato ninguna información geológica, de
      ingeniería o de otra naturaleza a ninguna tercera Persona sin comunicar asimismo
      la existencia y naturaleza de todo protección legal que acompaña a dicha
      información y los requerimientos de la ley aplicable o reglamento o reglas de
      algún mercado de valores aplicable respecto a la diseminación pública, según sea
      el caso.

    

    
      	5.7  	
              Mixtura.
                El Otorgante tendrá el derecho de revolver ore,
                concentrados, minerales y otro material minado y extraído de la Propiedad
                de los cuales los Productos han de producirse, con otro ore,
                concentrados,
                minerales u otro material minado o extraído de otras
                propiedades;
                sujeto, sin embargo, a que el Otorgante deberá calcular de muestras
                representativas las leyes promedio de los mismos y otras medidas
                según se
                consideren apropiadas, y deberá pesar (o calcular el volumen) del material
                con anticipación a ser revuelto. Al obtener las muestras representativas,
                calcular las leyes promedio del ore
                y
                promedio de porcentajes de recuperación, el Otorgante podrá utilizar
                cualquier procedimiento aceptable en la industria minera y metalurgista
                que considere apropiado para el tipo de actividad de minado y
                procesamiento que sea conducida. Además,

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    
      	 	procedimientos similares podrán ser utilizados por el
              Otorgante para atribuir a los materiales revueltos cualquier castigo
              y
              otro cargo y deducciones, si existieren, que sean impuestos por la
              fundidora, refinería o comprador de dicho
              material.

    

     

    
      	5.8  	
              Cambio
                de Propiedad del Derecho a la Regalía sobre Liquidaciones
                Netas.
                Ningún cambio o división de los derechos de propiedad de la Regalía sobre
                Liquidaciones Netas, realizado de cualquier forma, deberá incrementar las
                obligaciones o disminuir los derechos del Otorgante. El Propietario
                de la
                Regalía acuerda que cualquier cambio en la propiedad de la Regalía sobre
                las Liquidaciones Netas deberá ser realizado en una manera que garantice
                que el Otorgante solo será requerido para hacer pagos y entregar
                notificaciones a no más de una sola Persona. Ningún cambio o división de
                los derechos de propiedad de la Regalía sobre las Liquidaciones Netas será
                obligatorio para el Otorgante hasta que una copia certificada del
                instrumento donde consta dicho cambio o división de propiedad haya sido
                recibido por el Otorgante. 

            

    

     

    
      	5.9  	
              Cesión
                del Otorgante.
                El
                Otorgante tendrá el derecho de Transmitir todo o una porción de su interés
                jurídico en la Propiedad. Si el Otorgante Transmite todo o una porción de
                su interés jurídico en la Propiedad, una vez obtenida por parte del
                cesionario la subrogación de las obligaciones del Otorgante conforme al
                presente Anexo con respecto al interés jurídico transmitido, el Otorgante
                deberá por consiguiente ser liberado de toda obligación de pago de regalía
                conforme al presente Anexo con respecto a cualquier regalía que pudiera
                resultar subsiguientemente con respecto al interés jurídico
                transmitido.

            

    

     

    
      
        
        

      

      
        48

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