Document:

Exhibit
10.1

 

Mining
Tenements Transfer Agreement

 

 

Pegasus
Gold Australia Pty Ltd

(Subject to Deed of Company Arrangement)

as Mortgagee Exercising Power of Sale

 

Vista
Gold Australia Pty Ltd

 

Vista
Gold Corp

 

 

Allens
Arthur Robinson

Lawyers

Riverside
Centre

123
Eagle Street

Brisbane  QLD 
4000

Tel  61 7 3334 3000

Fax  61 7 3334 3444

www.aar.com.au

 

 

©
Copyright Allens Arthur Robinson 2006

 

 

	
  Mining Tenements Transfer Agreement

  	
  

  

 

Table of
Contents

 

	
  1.

  	
  Definitions and Interpretation

  	
  1

  
	
   

  	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
  1.2

  	
  Interpretation

  	
  5

  
	
   

  	
  1.3

  	
  Effect of
  void provisions

  	
  6

  
	
   

  	
  1.4

  	
  Business
  Days

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Sale and Purchase

  	
  6

  
	
   

  	
  2.1

  	
  Sale

  	
  6

  
	
   

  	
  2.2

  	
  Excluded
  Plant and Equipment

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Conditions Precedent and Conditions to
  Completion

  	
  6

  
	
   

  	
  3.1

  	
  Conditions
  Precedent

  	
  6

  
	
   

  	
  3.2

  	
  Condition
  to Completion

  	
  7

  
	
   

  	
  3.3

  	
  Satisfaction
  of Conditions

  	
  7

  
	
   

  	
  3.4

  	
  Termination

  	
  7

  
	
   

  	
  3.5

  	
  Approvals

  	
  7

  
	
   

  	
  3.6

  	
  Mt Todd
  Project Agreement

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Deposit

  	
  8

  
	
   

  	
  4.1

  	
  Deposit

  	
  8

  
	
   

  	
  4.2

  	
  Investment
  of Deposit

  	
  8

  
	
   

  	
  4.3

  	
  Party
  entitled to the Deposit

  	
  8

  
	
   

  	
  4.4

  	
  Cheques

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Guarantee

  	
  9

  
	
   

  	
  5.1

  	
  Guarantor’s
  Obligations

  	
  9

  
	
   

  	
  5.2

  	
  Obligations
  Unconditional

  	
  9

  
	
   

  	
  5.3

  	
  Continuing
  Guarantee

  	
  9

  
	
   

  	
  5.4

  	
  Recourse to
  Purchaser Not Required

  	
  10

  
	
   

  	
  5.5

  	
  Stamp Duty

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  GST

  	
  10

  
	
   

  	
  6.1

  	
  GST to be
  added to amounts payable

  	
  10

  
	
   

  	
  6.2

  	
  Liability
  net of GST

  	
  10

  
	
   

  	
  6.3

  	
  Payment of
  the GST Amount

  	
  10

  
	
   

  	
  6.4

  	
  Tax Invoice

  	
  10

  
	
   

  	
  6.5

  	
  GST
  obligations to survive termination

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Reservations & Encumbrances

  	
  10

  
	
   

  	
  7.1

  	
  Mining
  Leases

  	
  10

  
	
   

  	
  7.2

  	
  Encumbrances

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Plant and Equipment

  	
  11

  
	
   

  	
  8.1

  	
  Acknowledgement
  by Purchaser

  	
  11

  
	
   

  	
  8.2

  	
  Rights of
  Owners of Plant and Equipment

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Sale in “As is” Condition

  	
  12

  
	
   

  	
  9.1

  	
  “As is”
  condition

  	
  12

  

 

i

 

	
   

  	
  9.2

  	
  Accepting
  Liability

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Representations and Undertaking

  	
  12

  
	
   

  	
  10.1

  	
  No
  Warranties by the Vendor

  	
  12

  
	
   

  	
  10.2

  	
  Purchaser
  Relies on its own Enquiries

  	
  13

  
	
   

  	
  10.3

  	
  No reliance

  	
  14

  
	
   

  	
  10.4

  	
  Warranties
  by the Purchaser

  	
  14

  
	
   

  	
  10.5

  	
  Inspection

  	
  15

  
	
   

  	
  10.6

  	
  Exclusion
  of implied warranties

  	
  15

  
	
   

  	
  10.7

  	
  No Claim

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Native Title

  	
  16

  
	
   

  	
  11.1

  	
  Disclosure
  by the Vendor

  	
  16

  
	
   

  	
  11.2

  	
  No Warranty

  	
  16

  
	
   

  	
  11.3

  	
  No Claim

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Risk

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Purchaser’s Requisitions And Objections

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Outgoings and Adjustments

  	
  16

  
	
   

  	
  14.1

  	
  Liability
  to pay Royalties

  	
  16

  
	
   

  	
  14.2

  	
  Adjustments

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Completion of the Asset Transfer

  	
  17

  
	
   

  	
  15.1

  	
  Transfer
  Documents to be provided to the Vendor prior to the Completion Date

  	
  17

  
	
   

  	
  15.2

  	
  Completion

  	
  17

  
	
   

  	
  15.3

  	
  Place for
  Completion

  	
  17

  
	
   

  	
  15.4

  	
  No
  Entitlements until the Effective Date

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Escrow

  	
  18

  
	
   

  	
  16.1

  	
  The Deposit
  Holder

  	
  18

  
	
   

  	
  16.2

  	
  Investment

  	
  18

  
	
   

  	
  16.3

  	
  Best
  Endeavours

  	
  18

  
	
   

  	
  16.4

  	
  Deed with
  the Northern Territory of Australia

  	
  18

  
	
   

  	
  16.5

  	
  Prevent
  Registration of the Transfer

  	
  19

  
	
   

  	
  16.6

  	
  Disbursement
  of the Mining Lease Rental Payment

  	
  19

  
	
   

  	
  16.7

  	
  Disbursement
  of the Balance Purchase Price and GST Amount

  	
  19

  
	
   

  	
  16.8

  	
  Refusal of
  Ministerial Consent

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Possession

  	
  19

  
	
   

  	
  17.1

  	
  Possession
  Deemed Given and Taken

  	
  19

  
	
   

  	
  17.2

  	
  Access
  between the Completion Date and the Effective Date

  	
  19

  
	
   

  	
  17.3

  	
  Retention
  of Title

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Access to the Information

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Purchaser’s default

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Encumbrances

  	
  20

  
	
   

  	
  20.1

  	
  Vendor not
  liable for damages or compensation

  	
  20

  
	
   

  	
  20.2

  	
  Vendor will
  not be paying rental on Mining Leases

  	
  21

  
	
   

  	
  20.3

  	
  Completion
  Date may be extended

  	
  21

  

 

ii

 

	
   

  	
  20.4

  	
  Terminate 2
  months after original Completion Date

  	
  21

  
	
   

  	
  20.5

  	
  Consequences
  of Termination

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Late Completion

  	
  22

  
	
   

  	
  21.1

  	
  Interest on
  Overdue Amounts

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  Purchaser’s Indemnity

  	
  22

  
	
   

  	
  22.1

  	
  Environmental
  Matters

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  Security bonds

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  Non-Disclosure

  	
  22

  
	
   

  	
  24.1

  	
  Confidentiality

  	
  22

  
	
   

  	
  24.2

  	
  Exceptions

  	
  22

  
	
   

  	
  24.3

  	
  Additional
  disclosures by the Vendor

  	
  23

  
	
   

  	
  24.4

  	
  Public
  announcements

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  No Merger

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  Subsequent sale, assignment or mortgage by
  Purchaser

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  Notices

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
  Sale by the Vendor

  	
  24

  
	
   

  	
  28.1

  	
  Contract
  with the Vendor

  	
  24

  
	
   

  	
  28.2

  	
  Personal
  Benefit by the Administrators

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
  Further assurances

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
  Governing law

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
  Non-waiver

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  Stamp duty and costs

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
  Entire Agreement

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
  Amendment

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
  Assignment

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
  Counterparts

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Appendix 1 - Owners of Plant and Equipment

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Appendix 2 – Mortgagors Plant and Equipment

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1 – Aussiequip Pty Ltd

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2 – Forrestania Gold NL / Oresearch
  NL

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 3 – Department of Business, Industry
  and Resource Development

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4 – Environmental Deed

  	
  33

  

 

iii

 

	
  Date

  	
   

  	
  2006

  
	
   

  	
   

  	
   

  
	
  Parties

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Pegasus
  Gold Australia Pty Limited (Subject to
  Deed of Company Arrangement) ACN 009 628 924 as mortgagee exercising power of
  sale under the Charges of c/- Ferrier Hodgson (Qld), Level 7, 145 Eagle
  Street, Brisbane in the State of Queensland (the
  Vendor);

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Vista
  Gold Australia Pty Ltd (ACN 117 327 509) of c/- Whittens Lawyers, Level 30, Piccadilly Tower, 133
  Castlereagh Street, Sydney in the State of New South Wales (the Purchaser); and

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Vista Gold Corp, a company continued under the laws of the Yukon Territory,
  Canada and having its principal executive offices at Suite 5, 7961 Shaffer
  Parkway, Littleton, Colorado USA 80127, the registered office of which is
  situated at 200-204 Lambert Street, Whitehorse, Yukon Territory, Canada YIA
  3T2 (the Guarantor).

  
	
  Recitals

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  The Vendor is the first registered
  mortgagee of the Mine Assets.

  
	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  The Vendor has agreed to sell to the
  Purchaser, pursuant to its powers of sale under the Charges, and the
  Purchaser has agreed to buy from the Vendor, the Mine Assets on the terms and
  conditions set out in this Agreement.

  
	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  The Guarantor has agreed to guarantee the
  due performance and observance of the covenants and agreements to be duly
  performed by the Purchaser hereunder.

  

 

IT IS AGREED as follows:

 

1.            Definitions and Interpretation

 

1.1          Definitions

 

The
following definitions apply unless the context requires otherwise:

 

Administrators means Peter Ivan
Felix Geroff and Gregory Michael Moloney as administrators of the Deed of
Company Arrangement for the Vendor.

 

Agreement means this document,
including all appendices and schedules to it.

 

Approvals means the agreements,
approvals and consents referred to in clause 3.1.

 

Asset Transfer means the sale
and purchase of the Mine Assets under this Agreement.

 

1

 

Balance Purchase Price means the
amount of the Purchase Price (exclusive of GST) less the amount of the Deposit.

 

Business Day means a day on
which banks are generally open for business in Queensland.

 

Charges means the charges registered with the Australian Securities and
Investments Commission as charges no.688175, 688176, 688177, 688178, 745272 and
745273 and registered with the Department of Primary Industry, Fisheries and
Mines of the Northern Territory as dealings numbered 6780, 6781, 6782, 6783,
90829 and 90831.

 

Claim against any person, means
any claim, action, proceeding, judgment, damage, loss, cost, expense or
liability whatsoever incurred or suffered by or brought or made or recovered
against the person and however arising (whether or not presently ascertained,
immediate, future or contingent).

 

Completion of the Asset Transfer
means the time on the Completion Date that the sale and purchase of the Mine
Assets under this Agreement is completed.

 

Completion Amounts means the
payments to be made by the Purchaser to the Deposit Holder at the Completion of
the Asset Transfer in accordance with clause 15.2(b).

 

Completion Date means:

 

(a)           the
date being 5 Business Days after the date on which all the Approvals set out in
clause 3.1 are satisfied or waived; or

 

(b)           such
later date as may be determined by the Vendor in accordance with this
Agreement.

 

Consideration has the meaning given by the GST Law.

 

Deed of Company Arrangement
means the deed of company arrangement dated 1 May 1998 (as amended) between the
Vendor and the Administrators.

 

Default Interest means interest payable at the rate of 11% per annum.

 

Denehurst Royalty Deed means the
Royalty Deed dated 3 December 1992 between the Vendor and Denehurst Limited (as
subsequently varied and assigned).

 

Deposit means an amount,
exclusive of GST, equal to 10% of the Purchase Price.

 

Deposit Holder means Ferrier
Hodgson (Qld).

 

Effective
Date means the date upon which the Purchaser
becomes registered as the owner, holder or proprietor of any of the Mining
Leases, irrespective of whether the Purchaser has or has not entered into the
Environmental Deed prior to such registration occurring.

 

Encumbrance means any mortgage, charge, pledge, lien or other encumbrance
(excluding any lien arising by operation of law and any caveats lodged by the
Purchaser, MTRP or any of the parties listed in column 1 of Appendix 1 to this
Agreement).

 

Environmental Complaint means
any communication or complaint, whether written or oral, order, directive,
claim, citation or notice issued, sent or communicated by any Government Agency
or any person, authority or other entity having jurisdiction in respect of the
Property or by any other person with respect to any Hazardous Discharge or any
other environmental matter affecting the Property.

 

Environmental Deed means the
deed generally in the form of that contained in Schedule 4 to this Agreement.

 

Environmental Event means:

 

2

 

(a)           the
non-compliance with;

 

(b)           the
breach of; or

 

(c)           any
offence under,

 

any
Environmental Law by the Purchaser, or any occupier of the Purchaser, in
respect of the Property.

 

Environmental Law means a Law
relating to environmental, mining or planning matters and includes all
applicable standards and obligations under the common law.

 

Excluded Plant and Equipment
means the Plant and Equipment described in Appendix 1.

 

Government Agency means any
Government department, authority or statutory corporation which administers any
Act, regulation or directive of the legislature having jurisdiction over the
relevant matter.

 

GST means the goods and services tax as imposed by the GST Law together
with any related interest, penalties, fines and other charges.

 

GST
Amount means in relation to a Taxable
Supply the amount of GST payable in respect of that Taxable Supply.

 

GST Group
has the meaning given by the GST Law.

 

GST
Law has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999 (Cth),
or, if that Act does not exist means any Act imposing or relating to the
imposition or administration of a goods and services tax in Australia and any
regulation made under that Act.

 

Hazardous Discharge means any
emission, leak, spill, release, escape or discharge into or upon:

 

(a)           the
air;

 

(b)           soil
or any improvements located on or about the Property;

 

(c)           surface
water or ground water from or onto the Property; or

 

(d)           the
sewer, septic system or waste treatment, storage or disposal system servicing
the Property,

 

of or
from any Waste at or from the Property, other than a Hazardous Discharge which
is permitted by an Environmental Law.

 

Information means all technical
and other information in the possession or control of the Vendor in relation to
the Mine Assets and which is charged in favour of the Vendor by means of the
Charges, including (without limitation) all geophysical, geological or
geochemical information, files, surveys, maps, aerial photographs,
electromagnetic tapes, sketches, drawings, memoranda, drill cores, drill maps,
sampling and assay reports, plans and statistics, feasibility studies,
environmental reports and all other information relating to the Mine Assets.

 

Input Tax Credit has the meaning
given by the GST Law and a reference to an Input Tax Credit entitlement of a
party includes an Input Tax Credit for an acquisition made by that party but to
which another member of the same GST Group is entitled under the GST Law.

 

Jawoyn Agreement (No. 1) means
the agreement dated 28 January 1993 between the Northern Territory of
Australia, the Vendor and Jawoyn Association Aboriginal Corporation (as
subsequently varied and assigned, including by Deeds of Variation dated 5 March
1993 and 22 July 1993).

 

3

 

Jawoyn Agreement (No. 2) means
the deed dated 11 November 1996 between Barnjarn Aboriginal Corporation, Jawoyn
Association Aboriginal Corporation and the Vendor (as subsequently varied and
assigned).

 

Joint Venture Parties means Yimuyn
Manjerr (Investments) Pty Ltd (Controller Appointed), Yilgarn Gold Limited
(Controller Appointed), Vallance Holdings Pty Ltd (Controller Appointed) and,
where applicable, the Vendor.

 

Law means a statute, ordinance,
code, regulation, by-law, local law, official directive, order, instrument,
undertaking, obligation or applicable judicial, administrative or regulatory
decree judgment or order and includes the terms and conditions of any licence,
permit, consent, certificate, authority or approval issued thereunder or any
assurance or bond or similar requirements including all applicable standards
and obligations under the common law.

 

Mine means the Yimuyn Manjerr
Gold Mine (formerly the Mt Todd Gold Mine).

 

Mine Assets means the Mining
Leases, the Mortgagors Plant and Equipment and the Information.

 

Mining Asset Transfer Agreement
means the agreement so entitled dated 5 February 1999 between the Vendor,
Yimuyn Manjerr (Investments) Pty Ltd, Yilgarn Gold Limited and Multiplex
Constructions Pty Ltd.

 

Mining Lease Rental Payment has
the meaning given to that term in clause 3.2.

 

Mining Leases means:

 

(a)           MLN 1070;

 

(b)           MLN 1071; and

 

(c)           MLN 1127.

 

Minister means the Minister of
the Northern Territory of Australia who for the time being is the Minister
administering the Mining Act and includes any
Ministers for the time being acting for or on behalf of the Minister.

 

Mortgagor means:

 

(a)           in the
case of the Mining Leases, General Gold Operations Pty Ltd as the holder of the
legal title in the Mining Leases pursuant to the Trust Deed; and

 

(b)           in the
case of the Mortgagors Plant and Equipment and the Information, the Joint
Venture Parties as the holders of the legal title in them.

 

Mortgagors Plant and Equipment
means the Plant and Equipment described in Appendix 2 which is charged in
favour of the Vendor by means of the Charges but does not include any Excluded
Plant and Equipment.

 

MTRP means Mt Todd
Rehabilitation Project Pty Ltd ACN 099 471 575 and/or any of its officers,
employees and agents, including Mr Jack Savage.

 

Mt Todd Power Asset Sale Agreement means the agreement dated 3 April 1998 between the Vendor and NT
Power Generation Pty Ltd.

 

Mt Todd Power Property Licence
means the Licence to occupy and use a site situated at the Mine dated 3 April
1998 granted by the Vendor to NT Power Generation Pty Ltd in accordance with
clause 2.1 of the Mt Todd Power Asset Sale Agreement (as subsequently varied
and assigned).

 

4

 

Mt Todd Project has the meaning
given in the Mt Todd Project Agreement Ratification Act
1993.

 

Mt Todd Project Agreement means
the agreement dated 2 March 1993 (as subsequently varied and assigned) which
was ratified under the Mt Todd Project Agreement
Ratification Act 1993.

 

Plant and Equipment means all of the plant, equipment, machinery, tools, furniture,
trade utensils, implements and all other fixtures or chattels of any nature
located on or affixed to the Property as at the Completion Date.

 

Property means all of the land
subject to and underlying the Mining Leases.

 

Purchase Price (including the
Deposit but exclusive of GST) means AUD$1,000,000.

 

Tax Invoice has the meaning
given by the GST Law.

 

Taxable Supply has the meaning
given by the GST Law excluding the reference to section 84-5 of the A New Tax System (Goods and Services Tax) Act  1999 (Cth).

 

Trust Deed means the trust deed
poll dated 22 February 1999 by General Gold Operations Pty Ltd.

 

Vendor’s Solicitors means Allens
Arthur Robinson Lawyers of Level 31 Riverside Centre, 123 Eagle Street,
Brisbane in the State of Queensland.

 

Waste includes but is not
limited to:

 

(a)           any
substance or material (whether of any value or not) produced by or as a result
of the mining, processing or treatment of material on the Property;

 

(b)           dust;

 

(c)           garbage;

 

(d)           any
other material or substance so characterised or listed or defined and regulated
by any Environmental Law.

 

1.2          Interpretation

 

Headings are for convenience only and do not affect
interpretation. The following rules of interpretation apply unless the context
requires otherwise:

 

(a)           The singular includes the plural and
conversely.

 

(b)           A gender includes all genders.

 

(c)           Where
a word or phrase
is defined, its other grammatical forms have a corresponding meaning.

 

(d)           A
reference to a person includes a body
corporate, an unincorporated body or other entity and conversely.

 

(e)           A
reference to a clause, appendix, annexure
or schedule is a clause of or appendix,
annexure or schedule to this Agreement.

 

(f)            A
reference to any party to this  Agreement or any other agreement or document
includes the party’s successors and permitted assigns.

 

(g)           A
reference to any agreement or document is to that agreement or
document as amended, novated, supplemented, varied or replaced from time to
time, except to the extent prohibited by this Agreement or that other agreement
or document.

 

5

 

(h)           A
reference to any legislation or to any
provision of any legislation includes any modification to or re-enactment of
it, any legislative provision substituted for it, and all regulations and
statutory instruments issued under it.

 

(i)            A
reference to dollars and $ is to Australian currency.

 

(j)            Each
schedule and each certificate and document delivered under this Agreement forms
part of this Agreement.

 

(k)           A
reference to conduct includes, without
limitation, any omission, representation, statement or undertaking, whether or
not in writing.

 

(l)            Unless
otherwise specified in this Agreement, a reference to any Act
is a reference to an Act of the
Northern Territory of Australia.

 

(m)          Mentioning
anything after include, includes
or including does not limit what else
might be included.

 

1.3          Effect of void provisions

 

If a court holds that:

 

(a)           any part of this Agreement is void, voidable, illegal or unenforceable;
or

 

(b)           this Agreement is void, voidable, illegal or unenforceable unless any
part of this Agreement is severed from this Agreement,

 

that part will be severed from this Agreement unless
to do so would change the underlying principal commercial purposes of this
Agreement.

 

1.4          Business
Days

 

If anything is required to be done or if any condition is required to be
satisfied on a day that is not a Business Day, it must be done or satisfied
instead on the next Business Day unless this Agreement specifically provides
otherwise.

 

2.            Sale and Purchase

 

2.1          Sale

 

The
Vendor will sell the Mine Assets pursuant to its powers of sale under the
Charges and the Purchaser will purchase the Mine Assets in accordance with this
Agreement.

 

2.2          Excluded
Plant and Equipment

 

The Excluded
Plant and Equipment is excluded from sale under this Agreement.

 

3.            Conditions Precedent and Conditions to
Completion

 

3.1          Conditions
Precedent

 

This
Agreement and the obligation of the parties to complete the sale and purchase
of the Mine Assets under this Agreement are subject to the satisfaction of the
following conditions precedent:

 

6

 

(a)           (Jawoyn Agreements) the consent of the Barnjarn Aboriginal
Corporation, Jawoyn Association Aboriginal Corporation and the Northern
Territory of Australia is obtained to the assignment by the Joint Venture
Parties and/or the Vendor of their rights and obligations under Jawoyn
Agreement (No. 1) and Jawoyn Agreement (No. 2) to the Purchaser on such further
terms and conditions as may be agreed between the Barnjarn Aboriginal
Corporation, the Jawoyn Association Aboriginal Corporation and the Purchaser;

 

(b)           (Mt Todd Power Property Licence) the execution by NT Power
Generation Pty Ltd of a deed terminating the Mt Todd Power Property Licence and
releasing the Joint Venture Parties and the Vendor from the observance and
performance of any obligations under the Mt Todd Power Property Licence;

 

(c)           (Denehurst)

 

(i)            the consent of Denehurst Limited to the assumption by the Purchaser
of the Joint Venture Parties’ and/or the Vendor’s obligations under the
Denehurst Royalty Deed is obtained;

 

(ii)           a release by Denehurst Limited of the Joint Venture Parties’ and/or
the Vendor’s obligations under the Denehurst Royalty Deed is obtained;

 

(d)           (Environmental Deed) the receipt by the Purchaser of a
written confirmation from the Northern Territory of Australia that it will
execute the Environmental Deed on or before the Effective Date.

 

3.2          Condition
to Completion

 

The Purchaser
must pay to the Deposit Holder any rent, taxes and outgoings (including any
interest or penalties as a result of late payment) which remain unpaid in
respect of the Mining Leases as at the Completion Date (the Mining Lease Rental Payment).

 

3.3          Satisfaction
of Conditions

 

The
Vendor and the Purchaser shall use reasonable endeavours to ensure that the
Approvals are satisfied as soon as practicable. The conditions must be
satisfied on an unconditional basis or on conditions which are not materially
prejudicial to either party.

 

3.4          Termination

 

If the
Approvals are not satisfied or waived within three months of the date of this
Agreement or such later date as agreed to by the Vendor in writing, either
party may terminate this Agreement by notice in writing to the other.

 

3.5          Approvals

 

The Purchaser
(and the Vendor if requested by the Purchaser) shall sign and lodge all
necessary documents and undertakings and provide all information, testimonials
and other documents and do all other things required of the Purchaser to enable
the Approvals to be given at the earliest possible time.

 

3.6          Mt
Todd Project Agreement

 

The Vendor and
the Purchaser acknowledge that:

 

7

 

(a)           by a
letter dated 5 May 2005 from The Honourable Kon Vatskalis MLA, Minister for
Mines and Energy to the Vendor, the Northern Territory of Australia gave 180
days notice of its intention to terminate the Mt Todd Project Agreement;

 

(b)           as at
the date of this Agreement, the Mt Todd Project Agreement has been terminated
by the Northern Territory of Australia.

 

4.            Deposit

 

4.1          Deposit

 

The
Purchaser must pay the Deposit to the Deposit Holder by bank cheque in part
payment of the Purchase Price on or before the date of this Agreement.

 

4.2          Investment
of Deposit

 

(a)           If
both parties direct the Deposit Holder by notice in writing to invest the
Deposit then (where the Deposit Holder is lawfully able) the Deposit Holder
will invest the Deposit with any financial institution permitted by law for the
investment of trust monies.

 

(b)           If
this Agreement is completed all interest accruing on the investment of the
Deposit will be paid to the party entitled to the Balance Purchase Price in
accordance with clause 16.7, at the same time as any payment is made pursuant
to clause 16.7.

 

(c)           If
this Agreement is not completed for any reason, the interest accruing on the
Deposit will be paid to the party entitled to the Deposit upon the termination
of this Agreement.

 

(d)           The
Deposit and any accrued interest will be invested at the risk of the party to
whom the Deposit and accrued interest is ultimately payable and the Deposit
Holder will not be liable for any loss suffered by the parties in consequence
of an investment pursuant to clause 4.2(a).

 

(e)           To
facilitate the investment of the Deposit, each party will notify any tax file
number to the Deposit Holder at the time of giving written notice to the
Deposit Holder in accordance with clause 4.2(a).

 

(f)            The
parties authorise the Deposit Holder to prepare and lodge any tax return
necessary in respect of the Deposit and any accrued interest and to pay any tax
assessed out of the Deposit and any accrued interest.

 

(g)           The
Vendor and the Purchaser will be deemed to be presently entitled in equal
shares to any interest accrued for the purposes of the Income Tax
Assessment Act 1936 and the Income Tax Assessment Act
1997.

 

4.3          Party
entitled to the Deposit

 

(a)           If
Completion of the Asset Transfer occurs under this Agreement, the Deposit shall
be paid to the party entitled to the Balance Purchase Price in accordance with
clause 16.7, at the same time as any payment is made pursuant to clause 16.7.

 

(b)           If
Completion of the Asset Transfer does not occur under this Agreement, the
Deposit shall be paid:

 

8

 

(i)            to the Purchaser if Completion of the Asset Transfer does not occur
because:

 

(A)          of a default of the Vendor
under this Agreement and the Purchaser terminates this Agreement;

 

(B)          either party terminates this
Agreement under clause 3.4; or

 

(C)          the Agreement terminates
under clause 20.4;

 

(ii)           to the Vendor if Completion of the Asset Transfer does not occur
because the Purchaser defaults under this Agreement and the Vendor terminates
this Agreement.

 

4.4          Cheques

 

If the
Deposit or any part of it is paid by cheque which is post-dated or not honoured
on presentation, it will be deemed not to have been paid.

 

5.            Guarantee

 

5.1          Guarantor’s
Obligations

 

The Guarantor,
as a principal obligor and not merely as surety, irrevocably and
unconditionally guarantees to the Vendor (and indemnifies the Vendor in respect
of) the due and punctual performance of all the obligations of the Purchaser
under or arising out of this Agreement including (without limitation):

 

(a)           the
prompt payment of all amounts payable by the Purchaser under this Agreement;

 

(b)           the
prompt performance of all other obligations of the Purchaser under this
Agreement; and

 

(c)           the
prompt payment of all amounts for which the Purchaser may become liable in
respect of any breach of this Agreement.

 

5.2          Obligations
Unconditional

 

The Guarantor
agrees that the Guarantor’s obligations under this clause 5 will be
unconditional irrespective of:

 

(a)           the
validity, regularity and enforceability of any provision of this Agreement;

 

(b)           the
absence of any action by the Vendor or the Purchaser to enforce this Agreement;

 

(c)           the
waiver or consent of the Vendor in respect of any provision of this Agreement;

 

(d)           the
recovery of any judgment against the Purchaser;

 

(e)           any
action to enforce judgment against the Purchaser;

 

(f)            any
variation of the terms of this Agreement;

 

(g)           any
time or indulgence granted to the Purchaser by the Vendor;

 

(h)           the
dissolution of the Purchaser;

 

(i)            any
change in the status, function, control or ownership of the Purchaser;

 

(j)            any
consolidation, merger, conveyance or transfer by the Purchaser;

 

9

 

(k)           any
other dealing, transaction or arrangement between the Vendor and the Purchaser;
or

 

(l)            any
other circumstances which might otherwise constitute a legal or equitable
discharge of or defence to a surety.

 

5.3          Continuing
Guarantee

 

The
obligations of the Guarantor under this clause 5 shall continue and will not be
discharged except by complete performance of all of the obligations of the
Purchaser under or arising out of this Agreement.

 

5.4          Recourse
to Purchaser Not Required

 

The Vendor may
require the Guarantor to make a payment or perform any other obligation of the
Purchaser under or arising out of this Agreement:

 

(a)           without
first asking the Purchaser to do so; and

 

(b)           irrespective
of whether such payment or other obligation would be enforceable against the
Purchaser.

 

5.5          Stamp
Duty

 

The Guarantor
agrees to pay and indemnify the Vendor against all stamp duty (if any) in
respect of the guarantee and indemnity contained in this clause 5.

 

6.            GST

 

6.1          GST
to be added to amounts payable

 

If GST is
payable on a Taxable Supply made under, by reference to or in connection with
this Agreement, the party providing the Consideration for that Taxable Supply
must also pay the GST Amount as additional Consideration. This clause does not
apply to the extent that the Consideration for the Taxable Supply is expressly
stated to be GST inclusive.

 

6.2          Liability
net of GST

 

Any reference
in the calculation of Consideration under this Agreement to a cost, expense or
other liability incurred by a party, must exclude the amount of any Input Tax
Credit entitlement of that party in relation to the relevant cost, expense or
other liability.

 

6.3          Payment
of the GST Amount

 

The Purchaser
shall pay the GST Amount to the Deposit Holder at the Completion of the Asset
Transfer by bank cheque.

 

6.4          Tax
Invoice

 

The Vendor
must provide the Purchaser a Tax Invoice for the Purchase Price and the GST
Amount as soon as reasonably practicable after the Effective Date.

 

6.5          GST
obligations to survive termination

 

This
clause will continue to apply after expiration or termination of this
Agreement.

 

10

 

7.            Reservations & Encumbrances

 

7.1          Mining
Leases

 

The
Mining Leases are held subject to the Mining Act and
are sold subject to the provisions of that Act and to the reservations and
conditions expressed or implied under it.

 

7.2          Encumbrances

 

The
Mine Assets are sold free from all Encumbrances, but subject to the rights,
entitlements, privileges and interests referred to in clauses 8.1 and 8.2.

 

8.            Plant and Equipment

 

8.1          Acknowledgement
by Purchaser

 

The Purchaser
unconditionally acknowledges and agrees that:

 

(a)           the
Excluded Plant and Equipment does not form part of the Mine Assets;

 

(b)           the
parties listed in column 1 of Appendix 1 are the owners of the Excluded Plant
and Equipment described in the adjacent row of column 2 of Appendix 1;

 

(c)           the
Purchaser will acquire no right, title or interest in the Excluded Plant and
Equipment under the terms of this Agreement or otherwise (whether before or
after severance of the Excluded Plant and Equipment from the Property);

 

(d)           the
parties listed in column 1 of Appendix 1 are entitled, to the extent permitted
by law, to protect their rights, entitlements, privileges and interests in the
Plant and Equipment described in column 2 of Appendix 1 by the lodgement and
registration of caveats over the Mining Leases;

 

(e)           the
Purchaser will not make any objection, requisition or Claim and will not be
entitled to any damages or compensation or to terminate this Agreement if the
Excluded Plant and Equipment has not been removed from the Property prior to
the Completion of the Asset Transfer.

 

8.2          Rights
of Owners of Plant and Equipment

 

The
Purchaser unconditionally acknowledges and agrees that, on and from the
Completion of the Asset Transfer:

 

(a)           the
Purchaser must not cause or permit anything to be done or omitted which shall:

 

(i)            cause the Vendor to be in breach of the Vendor’s agreements for the
sale of the Excluded Plant and Equipment to the parties listed in column 1 of
Appendix 1;

 

(ii)           prevent the Vendor from conferring upon the parties listed in column
1 of Appendix 1, or prevent the parties listed in column 1 of Appendix 1
having, exercising and/or giving effect to, any of the benefits which are
conferred, or which are sought to be conferred, by the agreements for the sale
of the Excluded Plant and Equipment, including the benefit of the Excluded
Plant and Equipment itself;

 

11

 

(b)           the
Purchaser must permit the parties listed in column 1 of Appendix 1 to do
whatever may lawfully be done pursuant to the relevant agreements for the sale
of the Excluded Plant and Equipment and to give effect to the sale of the
Excluded Plant and Equipment in accordance with the terms of those agreements
including allowing those parties access to the Mining Leases unless such access
would be contrary to any order, notice or direction given by any Governmental
Agency;

 

(c)           in the
event of any failure by the Purchaser to comply with its obligations under
clauses 8.2(a) and (b):

 

(i)            the Vendor and the parties listed in column 1 of Appendix 1 cannot
be adequately compensated by way of damages for the breach;

 

(ii)           the Vendor shall be entitled to apply for, and the Purchaser shall
consent to, any form of injunctive relief (including mandatory injunctions)
which gives effect to the obligations imposed upon the Purchaser by clauses
8.2(a) and (b); and

 

(iii)          the Purchaser shall indemnify the Vendor and the Administrators
against any costs, expenses or other detriment incurred by the Vendor and/or
the Administrators by reason of the failure of the Purchaser to comply with its
obligations under clauses 8.2(a) and (b).

 

9.            Sale in “As is” Condition

 

9.1          “As
is” condition

 

The Mine
Assets are sold in an “as is” condition as at the date of this Agreement, with
all faults or defects (if any), whether or not apparent. The Vendor is not
responsible for any damage to the Mine Assets after the date of this Agreement.

 

9.2          Accepting
Liability

 

Except to the
extent that the Purchaser agrees with any Government Agency to the contrary
(whether in the Environmental Deed or otherwise), the Purchaser accepts any
liabilities, obligations, requisitions, directions and notices which may  in the future be outstanding regarding the
Mine Assets including, without in any way limiting the foregoing, any environmental
liabilities or obligations. The Purchaser indemnifies the Vendor, the
Administrators and the Mortgagor against any Claim, costs, expenses or
liabilities incurred by any of them in respect of each of the liabilities,
obligations, requisitions, directions and notices accepted by the Purchaser
under this clause.

 

10.          Representations and Undertaking

 

10.1        No
Warranties by the Vendor

 

The Vendor and
the Administrators do not warrant
that:

 

(a)           any
requisitions, directions or recommendations delivered by any Government Agency
have been complied with;

 

12

 

(b)           any
permissions, consents and approvals required from a Government Agency in
relation to the Mine Assets have been obtained, or having been obtained have
been complied with in all respects;

 

(c)           any
consents, approvals, permits or licences desirable or required to be held for
the present use of the Mine Assets have been granted by any Government Agency
or other authority;

 

(d)           the
Vendor and/or the Mortgagor and/or the Joint Venture Parties have complied
with, and have not committed any offence under, any Environmental Law in
relation to the use and occupation of the Property;

 

(e)           the
Property is free from contamination, or that there is no condition of the
Property which would entitle any person to require the Mortgagor and/or the
Joint Venture Parties to decontaminate or take other remedial or rehabilitation
action in or around the Property or contribute to the act of doing so;

 

(f)            the
means of access to and egress from the Property and all terms of all easements
and licences benefiting the Property are adequate;

 

(g)           the
Property is not subject to any unregistered easements, rights or permits to
pass;

 

(h)           the
Mine Assets are of a particular quality, suitability or fitness for any
specified purpose;

 

(i)            the
Property is safe and without risk to the health and safety of any user;

 

(j)            the
Vendor and/or the Mortgagors and/or the Joint Venture Parties have complied
with any requirements relating to workplace health and safety in respect of the
Mine Assets and the Property;

 

(k)           the
Mine Assets and/or the Property will comply with any requirements relating to
workplace health and safety following the Completion of the Asset Transfer.

 

10.2        Purchaser
Relies on its own Enquiries

 

The
Purchaser acknowledges and agrees that, in entering into this Agreement, the
Purchaser relies on its own enquiries and has satisfied itself as to the
following matters:

 

(a)           Encumbrances
affecting the Mine Assets;

 

(b)           the
condition, state of repair, suitability, quality, sufficiency, viability,
profitability or potential of the Mine Assets;

 

(c)           the
value of the Mine Assets, based upon the Purchaser’s own independent
valuations, reports or other advice;

 

(d)           any
environmental hazard or contamination affecting the Mine Assets;

 

(e)           any
latent or patent defect in the Mine Assets;

 

(f)            whether or not any requisitions, directions or recommendations delivered
by any Government Agency in respect of the Mine Assets and/or the Property have
been complied with;

 

(g)           whether or not any permissions, consents and approvals required from a
relevant Government Agency for the use of any part of the Property have been
obtained, or having been obtained have been complied with in all respects;

 

13

 

(h)           whether or not any consents, approvals, permits or licences desirable or
required to be held for the present use of the Mine Assets have been granted by
any Government Agency;

 

(i)            the
rights and privileges pertaining to the Mine Assets;

 

(j)            any
agreements or arrangements with the owners or occupiers of the Excluded Plant
and Equipment;

 

(k)           the
historical, current and forecast profitability or return from the Mine Assets;

 

(l)            the
existence of, and any occupational health and safety issues resulting from the
presence of, any plant and equipment (whether partially removed or otherwise)
in, or present on, the Property;

 

(m)          the
Vendor’s and/or the Joint Venture Parties’ compliance with any laws relating to
the workplace health and safety requirements in respect of the Mine Assets;

 

(n)           the
Mortgagor’s and/or the Joint Venture Parties’ compliance with any Environmental
Laws or the status of any contamination of the Property arising from any
previous use of the Property;

 

(o)           the
compliance by Aussiequip Pty Ltd or Forrestania Gold NL / Lionore Australia
(Wildara) NL (formerly known as Oresearch NL) with the requirements of any
Government Agency relating to the removal of any Excluded Plant and Equipment,
Environmental Laws and workplace health and safety requirements;

 

(p)           any
matter in respect of which the Vendor does not give any warranty; and

 

(q)           any
other matter (past, present, future or anticipated) relevant to the Mine
Assets, except as set out in this Agreement.

 

10.3        No
reliance

 

The Purchaser
unconditionally acknowledges and agrees that:

 

(a)           at no
time has:

 

(i)            the Vendor, or any person on the Vendor’s behalf (including, without
limitation, the Vendor’s employees, agents and representatives, the Administrators,
Ferrier Hodgson (Qld), Allens Arthur Robinson and all of their employees,
agents and representatives), made or given; or

 

(ii)           the Purchaser relied on,

 

any representation, warranty, promise or forecast
except those contained in this Agreement;

 

(b)           no
other statement or representations:

 

(i)            have induced or influenced the Purchaser to enter into this
Agreement or agree to any or all of its terms;

 

(ii)           have been relied on in any way as being accurate by the Purchaser;

 

(iii)          have been warranted to the Purchaser as being true; or

 

(iv)          have been taken into account by the Purchaser as being important to
the Purchaser’s decision to enter into this Agreement or agree to any or all of
its terms;

 

(c)           that
it will make no Claim against the Vendor, the Administrators, Ferrier Hodgson
(Qld), Allens Arthur Robinson or any of their employees, agents and
representatives about:

 

14

 

(i)            the size, condition, working order or any particular quality of the
Mine Assets;

 

(ii)           the suitability or fitness of the Mine Assets for their purpose;

 

(iii)          the economic viability of the Mine Assets or the prospect of the
successful exploitation of any of the Mine Assets;

 

(iv)          the current or future environmental or rehabilitation obligations or
liabilities in respect of the Mine Assets;

 

(v)           the profits or losses resulting from any activities which might be
conducted through the use of the Mine Assets;

 

(vi)          any statements made by them concerning the Mine Assets;

 

(vii)         any implied warranty or condition whether statutory or otherwise and
whether as to quality, state, condition or fitness for any particular purpose
or as to any other matter or thing whatsoever; or

 

(viii)        any loss, damage or liability of any kind or nature incurred directly
or indirectly by the Purchaser of the Mine Assets or any inadequacy of the Mine
Assets for any purpose or any defect in or by the use of the Mine Assets by the
Purchaser.

 

10.4        Warranties
by the Purchaser

 

The Purchaser
warrants that:

 

(a)           it has
the power and authority to execute and enter into this Agreement and perform
and observe all its terms without the consent of any person;

 

(b)           the
entry into this Agreement will not breach the Trade
Practices Act 1974 (Cth) or the Foreign Acquisition and Takeovers
Act 1975 (Cth);

 

(c)           it
requires no regulatory approvals (unless they have been obtained prior to the
date of this Agreement) to enter into and complete this Agreement, including
for the avoidance of doubt a written advice from the Australian Treasurer under
the Foreign Acquisitions and Takeovers Act 1975
(Cth) to the effect that the Commonwealth Government has no objection to the
acquisition by the Purchaser of the Mine Assets under this Agreement;

 

(d)           it has
duly executed this Agreement; and

 

(e)           each
person signing this Agreement on behalf of the Purchaser, whether as an
officer, agent, trustee or otherwise has full authority to execute this
Agreement in that capacity.

 

10.5        Inspection

 

The Purchaser
acknowledges that the Vendor has offered the Purchaser the opportunity to
inspect the Mine Assets and to conduct its own enquiries concerning the Mine
Assets, before the Purchaser entered into this Agreement. The Purchaser
acknowledges that it has been allowed unfettered access to the Mine Assets and
unfettered access to all of the books and records (including the Information)
regarding the Mine Assets.

 

10.6        Exclusion
of implied warranties

 

To the extent
permitted by law, any condition or warranty which, but for this clause, would
be implied by statute into this Agreement, is excluded from this Agreement.

 

15

 

10.7        No
Claim

 

The Purchaser
shall not be entitled to:

 

(a)           make
any Claim for compensation or damages or seek any reduction in the Purchase
Price;

 

(b)           make
any objection; or

 

(c)           be
discharged from the purchase or otherwise terminate this Agreement,

 

in respect or
because of:

 

(d)           any
liability, obligation, requisition, direction, recommendation or notice
relating to the Property or the Mine Assets which may be given, issued or
incurred after the Completion of the Asset Transfer;

 

(e)           any
matter referred to in clause 11;

 

(f)            any
matter upon which:

 

(i)            the Vendor gives no warranty pursuant to the terms of this
Agreement; or

 

(ii)           the Purchaser states that it has not relied, including any
statement, representation or warranty,

 

as set
out in this Agreement;

 

(g)           any
liability, Claim, loss or expense of any kind caused directly or indirectly by
the Mine Assets or any inadequacy of or defect in them.

 

11.          Native Title

 

11.1        Disclosure
by the Vendor

 

The Purchaser
acknowledges that the Vendor has disclosed to the Purchaser native title claim
D6018/00 which was filed with the National Native Title Tribunal on 5 December
2000. The Mine Assets are sold subject to any native title or similar rights
which may be held to exist in relation to the Mine Assets.

 

11.2        No
Warranty

 

The Vendor
makes no warranty or representation as to:

 

(a)           whether
native title exists over or in respect of any of the Mine Assets;

 

(b)           whether
native title is claimed to exist or will be claimed to exist over or in respect
of any part of the Mine Assets;

 

(c)           whether
any places of importance or significance to persons of Aboriginal descent exist
within the Property.

 

11.3        No
Claim

 

The Purchaser
shall not be entitled to:

 

(a)           make
any Claim for compensation or damages or seek any reduction in the Purchase
Price;

 

(b)           make
any objection; or

 

(c)           be
discharged from the purchase or otherwise terminate this Agreement,

 

16

 

in
respect or because of:

 

(d)           any claim to native title over or in respect of the Mine Assets (or
any part thereof) whether disclosed to, or known by, the Purchaser;

 

(e)           any other native title or similar rights in the nature of those
detailed in clause 11.2 which may be held to exist over, or effect or
impact upon, the Mine Assets.

 

12.          Risk

 

The Mine Assets are at the risk of the Purchaser in all respects from
the date of this Agreement.

 

13.          Purchaser’s Requisitions And Objections

 

The Purchaser waives the right to deliver to, or to have answered by,
the Vendor all objections and requisitions on title in relation to the Mine
Assets and this Agreement.

 

14.          Outgoings and Adjustments

 

14.1        Liability
to pay Royalties

 

Any
liability to pay royalties under the Denehurst Royalty Deed shall be the
responsibility of:

 

(a)           the Joint Venture Parties for the period up to but not including the
Effective Date; and

 

(b)           the Purchaser for the period from and including the Effective Date.

 

14.2        Adjustments

 

There
shall be no adjustment between the Vendor and the Purchaser at the Completion
of the Asset Transfer in respect of any amounts paid by the Purchaser pursuant
to clause 3.2 of this Agreement. The payment of the amounts referred to in
clause 3.2 shall be the sole responsibility of the Purchaser, and the Vendor
shall not be liable in any manner (including by way of contribution or
indemnity) to the Purchaser in respect of any such payments.

 

15.          Completion of the Asset Transfer

 

15.1        Transfer
Documents to be provided to the Vendor prior to the Completion Date

 

The
Purchaser shall, not later than 3 Business Days before the Completion Date,
deliver to the Vendor for due execution, transfers of the Mining Leases in
registrable form and any other transfer documentation which the Purchaser
considers necessary to effect a transfer of the Mine Assets. The Vendor’s
obligation to deliver those documents, duly executed, on the Completion Date is
subject to the Purchaser complying with this clause 15.1.

 

15.2        Completion

 

At the
Completion of the Asset Transfer:

 

(a)           the Vendor will:

 

17

 

(i)            subject to clause 15.1,
deliver to the Purchaser duly signed transfers in registrable form of the
Mining Leases in the Purchaser’s favour; and

 

(ii)           will deliver to the
Purchaser all other documents which are necessary or desirable to effect a
transfer of the Mine Assets from the Vendor to the Purchaser under this
Agreement and which have been delivered to the Vendor pursuant to clause 15.1;

 

(b)           the Purchaser will pay, by bank cheque, to the Deposit Holder:

 

(i)            the Balance Purchase
Price;

 

(ii)           the GST Amount in
accordance with clause 6.3; and

 

(iii)          the Mining Lease Rental
Payment in accordance with clause 3.2.

 

15.3        Place
for Completion

 

Completion
of this Agreement shall be effected on the Completion Date in Brisbane at a
time between 9.00 am and 4.00 pm and at a place nominated by the Vendor’s
Solicitors.

 

15.4        No Entitlements until the Effective Date

 

The
Vendor and the Purchaser acknowledge and agree that:

 

(a)           the Vendor has no entitlement to receive the Deposit, the Balance
Purchase Price or the GST Amount at the Completion of the Asset Transfer;

 

(b)           the Vendor shall be entitled to receive the Balance Purchase Price
and the GST Amount only on or after the Effective Date, in accordance with
clause 16.7;

 

(c)           the Purchaser has no entitlement to receive a Tax Invoice at the
Completion of the Asset Transfer and shall be entitled to receive a Tax Invoice
only on or after the Effective Date, in accordance with clause 6.4.

 

16.          Escrow

 

16.1        The
Deposit Holder

 

The
Vendor and the Purchaser acknowledge and agree that the Deposit Holder shall
hold the Completion Amounts pursuant to the terms of this clause 16 and shall
deal with the Completion Amounts solely in accordance with this clause.

 

16.2        Investment

 

(a)           If both parties direct the Deposit Holder by notice in writing to
invest the Completion Amounts (or any part of the Completion Amounts) then
(where the Deposit Holder is lawfully able) the Deposit Holder will invest
those monies with any financial institution permitted by law for the investment
of trust monies until the Deposit Holder is authorised or obliged to disburse
the Completion Amounts (or any part thereof) in accordance with this clause
16.

 

(b)           The Completion Amounts (or such part as may be invested
from time to time) and any accrued interest will be invested at the risk of the
party to whom those monies are

 

18

 

ultimately payable and the Deposit Holder
will not be liable for any loss suffered by the parties in consequence of an
investment pursuant to clause 16.2(a).

 

(c)           To facilitate the investment of the Completion Amounts, each party
will notify any tax file number to the Deposit Holder at the time of giving
written notice to the Deposit Holder in accordance with clause 16.2(a).

 

(d)           The parties authorise the Deposit Holder to prepare and lodge any
tax return necessary in respect of the Completion Amounts and any accrued
interest and to pay any tax assessed out of the Completion Amounts and any
accrued interest.

 

(e)           The Vendor and the Purchaser will be deemed to be presently entitled
in equal shares to any interest accrued for the purposes of the Income Tax Assessment Act 1936 and the Income Tax
Assessment Act 1997.

 

16.3        Best
Endeavours

 

Subject
to clause 16.4, the Vendor and the Purchaser will use their best endeavours to
obtain the registration of the Purchaser as the owner, holder or proprietor of
the Mining Leases as soon as reasonably practicable after the Completion of the
Asset Transfer.

 

16.4        Deed
with the Northern Territory of Australia

 

Nothing
in this Agreement shall oblige the Purchaser to become registered as the owner,
holder or proprietor of the Mining Leases, except in circumstances where the
Northern Territory of Australia has (either prior to or contemporaneously with
such registration) executed the Environmental Deed.

 

16.5        Prevent
Registration of the Transfer

 

The
Vendor acknowledges and agrees that the Purchaser shall be entitled to take all
steps and to do all things (including lodging a caveat over the Mining Leases)
in order to prevent the registration of the Purchaser as the owner, holder or
proprietor of the Mining Leases prior to the execution of the Environmental
Deed by the Northern Territory of Australia.

 

16.6        Disbursement
of the Mining Lease Rental Payment

 

The
Deposit Holder will pay the Mining Lease Rental Payment to the Department of
Primary Industry, Fisheries and Mines of the Northern Territory solely upon the
receipt of joint written instructions to that effect which are signed by both
the Vendor and the Purchaser.

 

16.7        Disbursement
of the Balance Purchase Price and GST Amount

 

The
Deposit Holder shall pay the Balance Purchase Price and the GST Amount (and any
interest accrued on the Completion Amounts) to:

 

(a)           the Vendor as soon as reasonably practicable after the Effective
Date; or

 

(b)           the Purchaser as soon as reasonably practicable after the Minister
has refused to give his or her consent to the transfer of the Mining Leases to
the Purchaser pursuant to s173 of the Mining Act.

 

19

 

16.8        Refusal
of Ministerial Consent

 

In the
event that the Minister refuses to give his or her consent to the transfer of
the Mining Leases to the Purchaser pursuant to s173 of the Mining Act:

 

(a)           if the Purchaser is in possession of any of the Mine Assets, the
Purchaser must immediately deliver up possession of the Mine Assets to the
Vendor or to any other person as the Vendor may direct;

 

(b)           this Agreement will automatically be terminated; and

 

(c)           neither the Purchaser nor the Vendor shall have any claim of any
nature whatsoever against the other arising out of or in connection with this
Agreement, except with respect to the repayment of the Deposit and the
Completion Amounts in accordance with the terms of this Agreement.

 

17.          Possession

 

17.1        Possession
Deemed Given and Taken

 

Possession
of the Mine Assets shall be deemed to be given by the Vendor and taken by the
Purchaser on the Effective Date.

 

17.2        Access
between the Completion Date and the Effective Date

 

From
the Completion of the Asset Transfer to the earlier of:

 

(a)           the Effective Date; and

 

(b)           any date upon which this Agreement is terminated,

 

the
Vendor will, to the extent that the Vendor may lawfully do so, allow the
Purchaser access to the Mine Assets at such times, in such manner and on such
conditions as the Vendor may consider appropriate.

 

17.3        Retention
of Title

 

Until
the Effective Date, the Mortgagors shall retain legal ownership of the relevant
Mine Assets, subject to the Charges given in favour of the Vendor. Title in the
Mine Assets shall not pass to the Purchaser upon the Completion of the Asset
Transfer, and shall only pass to the Purchaser on the Effective Date.

 

18.          Access to the Information

 

The
Purchaser acknowledges and agrees that, following the Effective Date, the
Vendor, the Administrators and any persons claiming by, through or under the
Vendor shall, upon reasonable notice to the Purchaser and at their own cost, be
allowed access to such of the Information as they may require for the
purpose of the administration of the Vendor and will be authorised to make a
copy of any of the Information. The Vendor and the Administrators agree that
they (and their employees and agents) shall at all times conduct themselves so
as to minimise any disruption to the Purchaser which may be caused by any
request for access to the Information.

 

20

 

19.          Purchaser’s default

 

If the Purchaser fails to pay the Deposit or any of the Completion
Amounts in accordance with this Agreement, or otherwise breaches this
Agreement, then the Vendor, in addition to any other rights the Vendor has,
may:

 

(a)           affirm this Agreement and:

 

(i)            sue the Purchaser for
damages for breach; or

 

(ii)           sue the Purchaser for
specific performance and damages in addition to or in lieu of specific
performance; or

 

(b)           terminate this Agreement and:

 

(i)            elect to declare the
Deposit forfeited and/or sue the Purchaser for damages for breach; or

 

(ii)           elect to declare the
Deposit forfeited and/or resell the Mine Assets as the Vendor deems fit. Any
deficiency arising from such resale and any expense arising from such resale
shall be recoverable by the Vendor from the Purchaser as liquidated damages.

 

20.          Encumbrances

 

20.1        Vendor
not liable for damages or compensation

 

If for
any reason (including the creation of any Encumbrance over any of the Mine
Assets) other than the wilful default of the Vendor, the Vendor is unable to
complete the Asset Transfer, then the Vendor shall not be liable by way of
damages or compensation for any loss sustained by the Purchaser from the
failure of the Vendor to complete the Asset Transfer.

 

20.2        Vendor
will not be paying rental on Mining Leases

 

The
Purchaser unconditionally acknowledges and agrees that:

 

(a)           the Vendor will not pay any rent or other amounts due in relation to
the Mining Leases for the period from 5 March 2002 to the Effective Date;

 

(b)           persons other than the Vendor, including MTRP, may have paid
rent or other amounts due in relation to the Mining Leases in relation to the
period, or some part of the period, from 5 March 2002 to the
Effective Date;

 

(c)           the Vendor will not be liable by way of damages or compensation for
any loss sustained by the Purchaser from the failure of the Vendor to complete
the Asset Transfer in the event that the Mining Leases (or any of them) are
forfeited due to non-payment of the rent or other amounts referred to in clause
20.2(a) or for any other reason whatsoever;

 

(d)           the Vendor will not be liable by way of damages or compensation for
any loss sustained by the Purchaser, and nor will the Purchaser be entitled to
terminate this Agreement, on the basis of any claim, whether alleged or
threatened, or any caveat by any person (including MTRP) who may have paid
any rent or other amounts referred to in clause 20.2(b);

 

21

 

(e)           the Vendor will not be liable by way of damages or compensation for
any loss sustained by the Purchaser in connection with any payments made by the
Purchaser with respect to any rent or other amounts due in relation to the
Mining Leases, if this Agreement is terminated or is not completed for any
reason whatsoever;

 

(f)            the payment by the Purchaser of any rent or other amounts due in
relation to the Mining Leases shall not create, confer or give rise to any
interest on the part of the Purchaser if this Agreement is terminated or
is not completed for any reason whatsoever and the Purchaser expressly
disclaims any such interest.

 

20.3        Completion
Date may be extended

 

If for
any reason (other than the wilful default of the Vendor) the Vendor is unable
to give title to and/or possession of any of the Mine Assets to the Purchaser
on the Completion Date then the Vendor may either terminate this Agreement
or (at its option) by notice to the Purchaser extend the Completion Date by a
period of not more than 2 months. The Completion Date may be postponed in
this way more than once, as long as it is not postponed beyond 2 months later
than the original Completion Date.

 

20.4        Terminate
2 months after original Completion Date

 

If
completion still cannot be effected by the Vendor by the date 2 months after
the original Completion Date, then this Agreement will, unless otherwise agreed
between the parties, automatically be terminated.

 

20.5        Consequences
of Termination

 

If this
Agreement is terminated pursuant to this clause:

 

(a)           if the Purchaser is in possession of any of the Mine Assets, the
Purchaser must immediately deliver up possession of the Mine Assets to the
Vendor or to any other person as the Vendor may direct; and

 

(b)           neither the Purchaser nor the Vendor shall have any further claim
against the other arising out of this Agreement.

 

21.          Late Completion

 

21.1        Interest
on Overdue Amounts

 

If for any reason (other than the wilful default of the Vendor):

 

(a)           this Agreement is not completed by the Completion Date; and

 

(b)           the Vendor does not, at or about that time, exercise its right to
terminate this Agreement,

 

then the Purchaser will pay to the Vendor, Default Interest on the
Balance Purchase Price outstanding. Default Interest will be calculated at
daily rates from the Completion Date until the final payment under this
Agreement and will be payable with the Balance Purchase Price.

 

22

 

22.          Purchaser’s Indemnity

 

22.1        Environmental
Matters

 

The
Purchaser agrees to defend and indemnify the Vendor, the Administrators, the
Mortgagor and the Joint Venture Parties against any and all Claims, losses,
liabilities, damages and expenses whenever made or incurred (including, without
limitation, compensation, fines, penalties, loss of income to the Vendor,
investigation costs, clean up costs and any other actions necessary or
desirable pursuant to any Environmental Law in respect of the Mine Assets and
all legal fees and expenses on an indemnity basis and consultant’s fees,
including those arising by reason of any of the above or in an action against
the Purchaser under this indemnity) arising directly or indirectly from, out of
or by reason of any Hazardous Discharge, Environmental Complaint or
Environmental Event in respect of the Mine Assets which occurs after the
Effective Date.

 

23.          Security bonds

 

For the avoidance of any doubt, any
security bonds which the Department of Primary Industry, Fisheries and Mines,
Northern Territory requires to be lodged in respect of the Mining Leases shall
be the responsibility and liability of the Purchaser.

 

24.          Non-Disclosure

 

24.1        Confidentiality

 

Subject
to this clause, each party shall keep the terms of this Agreement confidential.

 

24.2        Exceptions

 

A party
may make any disclosures in relation to this Agreement as, in its absolute
discretion, it thinks necessary to:

 

(a)           its professional advisers, bankers, financial advisers and
financiers, if those persons undertake to keep information disclosed
confidential;

 

(b)           comply with any applicable law or requirement of any regulatory body
(including any relevant stock exchange);

 

(c)           any of its employees to whom it is necessary to disclose the
information, on receipt of an undertaking from that employee to keep the
information confidential; or

 

(d)           any third party to whom disclosure is required in order to procure
the satisfaction of a condition precedent in clause 3.1.

 

24.3        Additional
disclosures by the Vendor

 

The
Vendor and the Administrators may make any disclosure of the terms of this
Agreement that they think necessary to:

 

(a)           any creditor of the Vendor;

 

(b)           the Joint Venture Parties; and

 

23

 

(c)           any person having an Encumbrance over the Mine Assets, in
circumstances where the Encumbrance ranks after those of the Vendor.

 

24.4        Public
announcements

 

Except
as required by applicable law or the requirements of any regulatory body
(including any relevant stock exchange), all press releases and other public
announcements relating to the transactions dealt with by this Agreement prior
to the Effective Date must be in terms agreed by the parties.

 

25.          No Merger

 

Regardless of the completion of the sale and purchase of the Mine
Assets under this Agreement, any general or special condition to which effect
is not given by the conveyance and which is capable of taking effect after
Completion of the Asset Transfer shall remain of and in full force and effect.

 

26.          Subsequent sale, assignment or mortgage by
Purchaser

 

If at
any time after the Completion of the Asset Transfer the Purchaser enters into a
contract or arrangement to sell, assign, mortgage or otherwise deal with any of
the Mining Leases (or any part thereof) to a third party (‘Third Party’) the Purchaser must as
a condition of the sale, assignment, mortgage or other dealing obtain from the
Third Party an undertaking that the Third Party acknowledges and agrees to be
bound by clauses 7.1, 7.2, 8.1 and 8.2 as if the Third Party was the Purchaser
under this Agreement.

 

27.          Notices

 

Any notice required to be given under this Agreement by any party to
another shall be:

 

(a)           in writing addressed to the address of the intended recipient shown
in this Agreement below or to such other address as has been most recently
notified by the intended recipient to the party giving the notice:

 

in the case of the Vendor:

 

	
  Address:

  	
  c/- Ferrier Hodgson (Qld)

  	
   

  
	
   

  	
  Level 7

  	
   

  
	
   

  	
  145 Eagle Street

  	
   

  
	
   

  	
  Brisbane QLD 4000

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
  (07) 3831 3862

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mr Peter Geroff

  	
   

  
	
   

  	
   

  	
   

  
	
  in the case of the Purchaser:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Vista Gold Australia Pty Ltd

  	
   

  
	
   

  	
  c/o Whittens Lawyers

  	
   

  
	
   

  	
  Level 30, 133 Castlereagh Street

  	
   

  
	
   

  	
  Sydney NSW 2000

  	
   

  

 

24

 

	
  Facsimile:

  	
  (02) 9264 2216

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mr Michael B Richings

  	
   

  
	
   

  	
   

  	
   

  
	
  in the case of the Deposit Holder:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Ferrier Hodgson (Qld)

  	
   

  
	
   

  	
  Level 7

  	
   

  
	
   

  	
  145 Eagle Street

  	
   

  
	
   

  	
  Brisbane Qld 4000

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
  (07) 3831 3862

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mr Will Colwell

  	
   

  

 

(b)           signed by a person duly authorised by the sender; and

 

(c)           deemed to have been given and served:

 

(i)            where delivery is by hand,
at the time of delivery;

 

(ii)           where despatched by
facsimile transmission, 24 hours after the time recorded on the transmitting
machine unless:

 

(A)          within those 24 hours
intended recipient has informed the sender that the transmission was received
in an incomplete or garbled form; or

 

(B)          the transmission result
report of the sender indicates a faulty or incomplete transmission; and

 

(iii)          where despatched by security
post, on acknowledgment or receipt by or on behalf of the recipient,

 

but if such delivery or receipt is on a day
on which commercial premises are not generally open for business in the place
of receipt or is later than 4.00pm (local time) on any day, the notice shall be
deemed to have been given and served on the next day on which commercial
premises are generally open for business in a place of receipt.

 

28.          Sale by the Vendor

 

28.1        Contract
with the Vendor

 

The
Purchaser acknowledges that it is contracting with the Vendor and not with the
Administrators. The Administrators shall not be personally liable to the
Purchaser for any act, omission or obligation of the Vendor in respect of this
Agreement.

 

28.2        Personal
Benefit by the Administrators

 

The
Administrators, by their execution of this Agreement on behalf of the Vendor,
also take the personal benefit of any provision and/or indemnity given in
favour of the Vendor under this Agreement.

 

25

 

29.          Further assurances

 

Each party shall take all such steps, execute all such documents and do
all such acts and things as may be reasonably required by the other party
to give effect to this Agreement and any of the transactions contemplated by
this Agreement.

 

30.          Governing law

 

This Agreement shall be governed by and interpreted in accordance with
the laws for the time being in force in the Northern Territory and each party
submits to the non-exclusive jurisdiction of the courts of or exercising
jurisdiction in that Territory.

 

31.          Non-waiver

 

Neither the failure of any party to enforce at any time any of the
provisions of this Agreement nor the granting of any time or other indulgences
shall be construed as a waiver of that provision or of the right of that party
thereafter to enforce that or any other provision.

 

32.          Stamp duty and costs

 

The parties shall bear their own costs arising out of the preparation
of this Agreement save that the Purchaser shall bear any stamp duty chargeable
on this Agreement and on any instruments required to be entered into pursuant
to this Agreement and the Purchaser indemnifies the Vendor and the
Administrators against the liability for all such stamp duty (including any
penalties or fines).

 

33.          Entire Agreement

 

This Agreement and any other written agreement contains the entire
agreement of the parties with respect to the subject matter and supersedes all
prior understandings and representations between the parties with respect to
the Mine Assets and their sale. Except as set out in that Agreement there are
no representations or warranties that have been relied on by the Purchaser in
entering into this Agreement.

 

34.          Amendment

 

This Agreement may not be amended except by a further agreement
duly executed by the parties.

 

35.          Assignment

 

The rights of the partes under this Agreement cannot be assigned,
charged or otherwise dealt with before the Effective Date.

 

26

 

36.          Counterparts

 

This Agreement may be executed in any number of counterparts. All
counterparts taken together will be taken to constitute one agreement, and
shall be binding on all the parties when one such counterpart has been
executed by each party.

 

27

 

Executed as an
agreement.

 

	
  SIGNED
  SEALED AND DELIVERED by

  Pegasus Gold Australia Pty Ltd (Subject to

  Deed of Company Arrangement) as mortgagee

  exercising power of sale by Peter Ivan Felix

  Geroff in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Peter Ivan Felix Geroff

  
	
  Print
  Name

  	
   

  	
  Print
  Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed for and on behalf of Vista Gold

  Australia Pty Ltd by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Director
  Signature

  	
   

  	
  Director
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
   

  	
  Print
  Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED
  SEALED AND DELIVERED on

  behalf of Vista Gold Corp:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Director
  Signature

  	
   

  	
  Director/Secretary
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
   

  	
  Print
  Name

  

 

28

 

Appendix 1 - Owners of Plant and Equipment

 

	
  Column 1 — Owner

  	
   

  	
  Column 2 - Plant and Equipment

  
	
   

  	
   

  	
   

  
	
  Aussiequip
  Pty Ltd

  	
   

  	
  See Schedule 1,
  together with all of the other plant and equipment situated at the Mine other
  than the plant and equipment which is described or referred to below and
  other than the Mortgagors Plant and Equipment.

  
	
   

  	
   

  	
   

  
	
  Forrestania
  Gold NL

  	
   

  	
  See Schedule 2

  
	
   

  	
   

  	
   

  
	
  Department
  of Business, Industry and Resource Development

  	
   

  	
  See Schedule 3

  
	
   

  	
   

  	
   

  
	
  NT
  Power Generation Pty Ltd

  	
   

  	
  The
  Mt Todd power plant and all plant and equipment which comprises or is
  contained within that power plant.

  
	
   

  	
   

  	
   

  
	
  Third
  party purchasers

  	
   

  	
  The
  plant and equipment:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •      sold by the Vendor (whether in
  its own right or as mortgagee exercising power of sale) to any third parties
  (other than those described above) whether by way of auction or by private
  treaty;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •      otherwise owned by third
  parties other than the Mortgagors.

  

 

29

 

Appendix 2 – Mortgagors Plant and Equipment

 

	
  Column 1 — Owner

  	
   

  	
  Column 2 - Plant and
  Equipment

  
	
   

  	
   

  	
   

  
	
  Mortgagors

  	
   

  	
  All
  plant and equipment which is required to remain at the Mine for environmental
  management requirements.

  

 

30

 

Schedule 1 – Aussiequip Pty Ltd

 

31

 

Schedule 2 – Forrestania Gold NL / Oresearch NL

 

32

 

Schedule 3 – Department of Business, Industry and
Resource Development

 

33

 

Schedule 4 – Environmental Deed

 

34Exhibit 10.2

 

NORTHERN TERRITORY OF AUSTRALIA

 

AGREEMENT

 

	
  THIS AGREEMENT is made the

  	
   

  	
  day of

  	
   

  	
  2006.

  

 

BETWEEN:

 

the NORTHERN TERRITORY OF AUSTRALIA
care of the Department of Primary Industry Fisheries and Mines, of Centrepoint
Building, The Mall, Darwin in the Northern Territory of Australia (“the
Territory”)

 

AND:

 

VISTA GOLD AUSTRALIA PTY LTD (A.C.N. 117 327 509) the
registered office of which is situate at c/- Whittens Lawyers, Level 30,
Piccadilly Tower, 133 Castlereagh Street, Sydney in the State of New South
Wales (“Vista Gold”)

 

AND:

 

VISTA GOLD CORP, a company continued under the
laws of the Yukon Territory, Canada and having its principal executive offices
at Suite 5, 7961 Shaffer Parkway, Littleton, Colorado USA 80127, the registered
office of which is situated at 200-204 Lambert Street, Whitehorse, Yukon
Territory, Canada YIA 3T2 (“the Guarantor”)

 

RECITALS:

 

A.           The
Mt Todd Gold Mine Site (Mt Todd) near Katherine in the Northern Territory of
Australia, was a major mining operation conducted over a period of
approximately seven (7) years by several different operators and was operated
pursuant to the terms of Mineral Leases issued pursuant to the Mining Act and
numbered MLN 1070, 1071 and 1127(“the Mineral Leases”).

 

B.            In
2000, mining activity at Mt Todd ceased. On 5 July 2000, voluntary
administrators were appointed to General Gold Operations Pty Ltd (“the
Operator”) pursuant to the Corporations Act.

 

C.            Pegasus
Gold Australia Pty Ltd (Subject to Deed of Company Arrangement) (“the
Mortgagee”) conducted a sale of assets at Mt Todd, and the Territory purchased
a number of items of capital equipment located on the site.  The Mt Todd site and the equipment have,
since that time, been operated and maintained by the Territory.

 

D.            Vista
Gold has entered into or intends to enter into an agreement with the Mortgagee
for the purchase by Vista Gold of 100% of the Mineral Leases.

 

E.            The
Territory acknowledges the special interest of the Jawoyn people in the land on
which Mt Todd is situated, and notes that Vista Gold has entered or intends to
enter into an agreement with the Jawoyn Association Aboriginal Corporation in
respect of the use of the land.

 

F.            The
Territory and Vista Gold now wish to record the terms of their agreement, under
which they will each occupy Mt Todd for the purpose of each of them carrying
out their respective activities with the intention that the site will be
rehabilitated consistent with currently accepted standards and that exploration
and mining activities will resume on the site.

 

 

G.            The objectives of
the Territory in entering this agreement are as follows:

 

(a)           to
maximise the opportunities available for the Mineral Leases, in order to
benefit stakeholders and Territorians;

 

(b)           to
ensure that the site is managed so that there is minimal or no adverse impact
on the environment, by the orderly management of the fire and water management
and security at the Mt Todd site while Vista Gold undertakes studies and
reviews with a view to recommencing mining at Mt Todd;

 

(c)           the
long term successful rehabilitation of the Mt Todd site, either through
successful mining operations to be undertaken by Vista Gold or another mining
company, or by the Territory;

 

(d)           to
ensure that the Territory can continue to undertake such studies as are
necessary in order to determine the appropriate means of long term
rehabilitation of the site;

 

(e)           for
a third party to assume the role of operator of the Mineral Leases and allow
the Territory to continue in its regulatory role consistent with the Mining Management Act.

 

H.            The
objectives of Vista Gold in entering this agreement are as follows:

 

(a)           to
undertake studies and exploration with a view to determining whether Mt Todd
can be the subject of viable mining operations;

 

(b)           to
develop Mt Todd at such time when an appropriate combination of gold prices,
costs and technology will permit the safe and profitable development of the ore
body for all parties;

 

(c)           to
work with the Jawoyn Association Aboriginal Corporation and the Territory to
improve environmental protection at the mine site; and

 

(d)           to
work with the Jawoyn Association Aboriginal Corporation cooperatively and
transparently to develop the natural resources of the Mineral Leases, to
acquire potential future exploration licences and to ensure the appropriate use
and protection of the Jawoyn Association Aboriginal Corporation freehold land
covering these areas.

 

I.             The
Territory has agreed to continue to operate and manage the Mineral Leases for a
period of twelve (12) months to 31 December 2006, in order to enable an orderly
transfer of this function to Vista Gold. 
From 1 January 2007, Vista Gold shall assume full responsibility for
operation and management of the site including (without limitation) the
provision of adequate security on site, fire and water management and the
conduct of all repairs and maintenance of NT Assets.

 

J.             The
Guarantor has agreed to guarantee all of the obligations of Vista Gold under
this Agreement.

 

2

 

K.            The
Territory acknowledges that Vista Gold has indicated that it will, in
conjunction with the Jawoyn Association Aboriginal Corporation, make a proposal
for exploration of areas surrounding Mt Todd and which are presently the
subject of a reserve from occupation pursuant to section 178 of the Mining Act.

 

THE PARTIES AGREE as follows:

 

1.         DEFINITIONS

 

1.1        In
this Agreement unless the contrary intention appears the following definitions
shall apply:

 

“Business Day” means any day other than a weekend or public holiday in
the Northern Territory;

 

 “Commencement Date” means 1
January 2006;

 

“Confidential Information” means any information or material relating
to this Agreement provided by or for one party to the other party, including
but not limited to:

 

(a)  any information that by its
nature is confidential;

 

(b)       any
information designated as confidential by the party by or for whom the
information is provided; and

 

(c)        any
information that the recipient of the information knows is confidential,

 

but excludes:

 

(i)         any
information which is part of the public domain at the time of disclosure or
which becomes publicly available other than through a breach of this Agreement;
or

 

(ii)        any
information which is already in the possession of a party at the date of
disclosure from sources independent of this Agreement and without an obligation
of confidence on the recipient of that information;

 

“First Renewal Period” means the period of five (5) years from the
expiry of the Term;

 

 “Initial Period” means the
period from the Commencement Date until 31 December 2006;

 

 “Law”
means the general law applying to the Northern Territory of Australia, together
with all statutes (Commonwealth State and Territory) in force from time to time
in the Northern Territory, including all subordinate legislation of every kind;

 

“Mining Management Plan” means a Mining Management Plan under Division
3 Part 4 of the Mining Management Act;

 

3

 

 “Notice” means a written notice given by Vista
Gold to the Territory which gives the Territory thirty (30) days notice that
Vista Gold intends to take over and assume the management, operation and
rehabilitation of Mt Todd;

 

“NT Assets” means the fixtures, fittings and items of equipment listed
in Schedule A to the Agreement.

 

“Payment” means the payment to be made to the Territory by Vista Gold
pursuant to clause 10 of this Agreement;

 

“Prior Intellectual Property” means the intellectual property in all of
the documents, reports and other material in the possession of the Territory at
the date of this Agreement, and which the Territory has or will make available
to Vista Gold.

 

“Second Renewal Period” means the period of
three (3) years from the expiry of the First Renewal Period;

 

“Site Entry Conditions” means the conditions
set out in Schedule C to this Agreement.

 

“Site Manager” means the person (if any)
nominated by Vista Gold to the Territory in writing to be the Site Manager for
Mt Todd.

 

“Term” means the period of five (5) years commencing on the
Commencement Date;

 

2.         INTERPRETATION

 

2.1        In
the interpretation of this Agreement unless such interpretation shall be
excluded by or repugnant to the context:

 

(a)        words
importing the singular number include the plural number and vice versa;

 

(b)       words
importing any gender shall include all other genders;

 

(c)        “person”
includes a corporation;

 

(d)       all
references to statutes shall also refer to statutes amending or re-enacting or
replacing the statutes referred to and shall include a reference to all
Proclamations Orders in Council regulations rules by-laws ordinances and any
other instruments and directions (if any) made thereunder;

 

(e)        “Dollar,”
“$,” or “currency” refers to the Australian dollar;

 

(f)        all
covenants warranties undertakings and agreements herein shall if entered into
by more than one (1) person be deemed to be joint and several;

 

4

 

(g)       recitals,
headings and sub-headings have been included for ease of reference only and
this Agreement is not to be construed or interpreted by reference to such
headings or sub-headings;

 

(h)       any
Schedules to this Agreement shall be read and construed as part of this
Agreement.

 

3.         CONDITION PRECEDENT

 

This Agreement shall have no force or effect
and shall not be binding on any party unless and until it is signed by all
parties, and the Mineral Leases are wholly owned by Vista Gold, by no later
than 30 March 2006.  For the purposes of
this clause the registration of transfer of leases need not be effected by
30 March 2006.

 

4.         TERM OF AGREEMENT

 

4.1        This
Agreement will commence on the Commencement Date and expire on 31 December 2010
unless sooner determined or terminated in accordance with this Agreement.

 

4.2        The
Territory hereby grants to Vista Gold a right of renewal of this Agreement for
the First Renewal Period subject to:

 

(a)        compliance
by Vista Gold with all material terms of this Agreement; and

 

(b)       if
Vista Gold can show that it is technically feasible for the viable commercial
development and mining of the Mt Todd gold ore bodies within a reasonable
period of time.

 

4.3        The
Territory may, upon application by Vista Gold made not less than six (6) months
before the expiry of the First Renewal Period, and at its sole discretion in
all things, grant to Vista Gold the Second Renewal Period.

 

5.         ACKNOWLEDGEMENT OF INTEREST OF THE JAWOYN PEOPLE

 

The parties acknowledge and agree that the
Jawoyn People have a special interest in the land on which the Mt Todd site is
situated, and acknowledge that Vista Gold has entered into or intends to enter
into an agreement with the Jawoyn Association Aboriginal Corporation in respect
of use of the land.

 

6.         PARTICIPATION BY VISTA GOLD AS AN OBSERVER FOR THE MT TODD REFERENCE
GROUP

 

The Territory will procure that Vista Gold
will be entitled to attend meetings of the Mt Todd Reference Group as an
observer.

 

7.         OBLIGATIONS OF
THE PARTIES

 

7.1        Obligations of the Territory during the Initial Period

 

(a)        In
consideration of the Payment being made in accordance with clause 10 hereof,
the Territory will operate and manage Mt Todd for

 

5

 

the Initial Period in an environmentally
sound manner and in accordance with all Laws and policies of the Territory.

 

(b)       The
obligation to operate and manage includes (but is not necessarily limited to):

 

(i)         provision
of adequate security on site;

 

(ii)        fire
and water management;

 

(iii)       the
conduct of all repairs and maintenance of the NT Assets to appropriate
standards such that the mechanical equipment is kept in sound operating
condition.

 

7.2        Obligations of Vista Gold during the Term

 

Vista Gold must, at its own cost:

 

(a)  within the Initial Period:

 

(i)         undertake
a comprehensive technical and environmental review of Mt Todd, and deliver to
the Territory a report detailing as a minimum:

 

(A)      current site environmental conditions;

 

(B)       identifying and prioritising a program to continue the stabilization of
the environmental conditions and to minimise offsite contamination;

 

(C)       examining the condition of important physical assets on the site and
reviewing the steps necessary to preserve them;

 

(ii)        undertake a review of the water management plan and make recommendations
for future implementation;

 

(iii)       provide a report to the Territory detailing all available mineral
resources, mine planning and metallurgical information gathered from and in
respect of previous operators.  This
report must contain a preliminary feasibility study of the re-start of
operations examining important technical, economic and environmental
considerations.

 

(b)       not later than six (6) months prior to the end of the Term:

 

(i)         prepare and provide to the Territory a technical and economic feasibility
study for the potential development of Mt Todd. 
The study must be conducted by independent consultants to international
technical security commission standards for such studies and will:

 

(A)      examine all technical economic and environmental issues;

 

6

 

(B)       estimate site rehabilitation costs with and without any proposed new
operations to be conducted on the site;

 

(C)       consider any new exploration information generated by Vista Gold during
the Term;

 

(D)       consider current proven technologies and potential technologies which may
be developed in the reasonably foreseeable future, that is, within the Term and
the First Renewal Period;

 

(ii)        prepare and provide to the Territory a comprehensive report including the
results of all exploration activities at Mt Todd during the Term;

 

(c)       on each anniversary of the Commencement Date throughout the Initial
Period, Term, First Renewal Period and the Second Renewal Period,

 

(i)         prepare and provide to the Territory a report detailing the results of
all exploration and other activities at Mt Todd during the previous year; and

 

(ii)        a comprehensive plan for all activities planned at Mt Todd during the
forthcoming year (including an exploration plan in accordance with clause 12).

 

7.3        Obligations of Vista Gold Concerning Insurance

 

As and from the Commencement Date, Vista Gold must take out and
maintain during the Term and, if applicable, the First Renewal Period and the
Second Renewal Period in the joint names of Vista Gold and the Territory,
insurance policies with a reputable insurance company conducting business in
the Northern Territory, covering the following risks:

 

(a)        liability
under the Work Health Act for Vista Gold’s full
liability thereunder;

 

(b)       liabilities
of the public for an amount of not less than Twenty Million Dollars
($20,000,000.00) in respect of accidents arising out of, or in the ordinary
course of, or caused by the execution of the Works or the occupation of the
Site by Vista Gold.

 

Vista Gold must ensure that all its
sub-contractors and consultants take out and maintain in force valid and
enforceable insurance policies of the types referred to in this clause where
the same are not covered in their totality by the policies taken out by Vista
Gold.

 

Vista Gold must produce to the Territory
promptly upon request copies of all policies and, as a separate obligation, will
provide to the Territory certificates of currency in respect of each policy as
and when they are renewed.

 

7

 

7.4       Obligation for Vista Gold to operate after Initial Period

 

(a)       At
the expiry of the Initial Period, Vista Gold will, in addition to any other
statutory or other obligations, operate and manage Mt Todd in an
environmentally sound manner and in accordance with all laws and policies of
the Territory and otherwise to the standard and using the skill and resources
that would be applied by a prudent mine operator;

 

(b)       The
obligation to operate and manage includes (but is not necessarily limited to):

 

(i)         provision
of adequate security on site;

 

(ii)        fire
and water management;

 

(iii)       the
conduct of all repairs and maintenance of the NT Assets to appropriate
standards such that the mechanical equipment is kept in sound operating
condition, having regard to their condition at the date of the expiration of
the Initial Period.

 

(c)        the
obligations in this clause 7.4 do not include rehabilitation of Mt Todd, which
obligations are dealt with in clause 11.

 

8.         OWNERSHIP
AND MAINTENANCE OF MOVABLE ASSETS

 

It is acknowledged and agreed by the parties
that the NT Assets are and remain at all times the property of the Territory,
notwithstanding that the same may be fixed to the land.

 

The Territory hereby grants to Vista Gold an
exclusive licence to use the NT Assets other than the shed currently occupied
by the Territory during the period from the end of the Initial Period for the
Term and, if applicable the First Renewal Period and the Second Renewal Period,
in consideration of the payment by Vista Gold to the Territory of One Dollar
($1.00) (if demanded).

 

After the expiration of the Initial Period,
subject to the provisions of clause 13, Vista Gold must undertake all repairs
and maintenance of the NT Assets, having regard to their condition as at the
expiration of the Initial Period, other than the shed, and if applicable, the
First Renewal Period and the Second Renewal Period.

 

Vista Gold acknowledges that the Territory
will continue to use and maintain the shed which is currently occupied by the
Territory for the purposes of carrying out activities in accordance with clause
11.  In the event that the Territory does
not need to utilise the whole of the shed for this purpose, the Territory may
by agreement with Vista Gold, make any surplus space available to Vista Gold.

 

Vista Gold acknowledges that the items of
plant and equipment at Mt Todd listed in Schedule B to this Agreement are not
the property of the Territory and which the Territory has no power to deal
with.  The Territory reserves the right
to permit the owner of any such items to enter Mt Todd at any reasonable
time

 

8

 

within the Initial Period subject to prior
written notice to Vista Gold to remove them.

 

9.         FUTURE USE
OF MATERIAL ON SITE

 

The parties acknowledge that there is present
at Mt Todd certain materials, such as water, scats and a mineral stock pile,
which may be needed by the Territory in order to undertake rehabilitation
works.  The parties agree to work
cooperatively with one another to agree upon the manner in which this material
can be used by the Territory for this purpose, without unreasonably negatively
impacting upon Vista Gold’s proposed use of the Mt Todd site.

 

If either the Territory or Vista Gold have
any proposal to use material at the Mt Todd site, the party wishing to use the
material will provide one (1) month’s prior written notice to the other party
in order to provide that party with an opportunity to comment or to be
consulted on the proposal to use the material.

 

10.       PAYMENT
DURING THE INITIAL PERIOD

 

10.1      Subject to the provisions of 10.2 hereof, Vista
Gold shall pay to the Territory the total of the Territory’s actual costs and
expenses of and incidental to the management and operation of Mt Todd for
the Initial Period.

 

10.2      It
is acknowledged by the parties that the estimate of the Territory’s costs in
the Initial Period at the Commencement Date is approximately $375,000.00 per
annum (calculated exclusive of GST).  Notwithstanding the obligation of
Vista Gold contained in clause10.1, the parties agree that the maximum of the
Payment for the Initial Period will be Three Hundred and Seventy Five Thousand
Dollars ($375,000.00) plus any applicable GST.

 

10.3      Unless
otherwise agreed by the parties, the Territory must submit to Vista Gold, on a
quarterly basis, an itemised statement of estimated costs that will be incurred
in the following quarter and submit it together with a tax invoice prepared in
accordance with clause 21 for payment by Vista Gold.

 

10.4      Vista
Gold shall, within fourteen (14) days of receipt of the itemised statement of
estimated costs, pay the amount of the estimate to the Territory.

 

10.5      At
the conclusion of the Initial Period, the Territory must provide to Vista Gold
an itemised reconciliation of the actual costs and expenses of and incidental
to the management and operation of Mt Todd for the Initial Period with the sum
paid by Vista Gold to the Territory.  Any
surplus shall be paid by the Territory to Vista Gold, and any shortfall up to
the maximum of Three Hundred and Seventy Five Thousand Dollars ($375,000.00)
plus GST, shall be payable by Vista Gold to the Territory.

 

11.           REHABILITATION

 

11.1         The
Territory acknowledges its commitment to the community to rehabilitate Mt
Todd.  The Territory intends (but is not
bound to) carry out

 

9

 

a range of environmental and other studies as
recommended to the Territory or otherwise determined by the Territory to be of
some assistance in determining the appropriate rehabilitation tasks for the Mt
Todd site, together with such works as the Territory deems reasonably necessary
and desirable for the Territory in respect of the long term rehabilitation of
the Mt Todd site (“the Works”).

 

11.2         The
Territory shall, on each anniversary of the Commencement Date, provide a
reasonably detailed report to Vista Gold of the Works carried out by the
Territory in the previous twelve (12) months together with a reasonably
detailed plan of the Works proposed for the following twelve (12) months.

 

11.3         Vista
Gold hereby grants to the Territory its employees, contractors and agents a
non-exclusive licence to enter exit and remain on the Mt Todd site for the
purpose of the Territory carrying out the Works.  The Territory will provide Vista Gold with
written notice at least twenty (20) days prior to any Works commencing which
will employ at the site more than ten (10) employees or Works which may
interfere with ongoing activities by Vista Gold.

 

11.4         At
any time after the expiry of the Initial Period the Territory acknowledges and
agrees to comply and agrees to cause its officers, servants, agents and
contractors to comply with the Site Entry Conditions.

 

11.5         Notwithstanding
any provision to the contrary in any of the Mineral Leases, the Mining Act, the Mining Management Act,
or any other legislation, the Territory acknowledges and agrees that Vista Gold
has no obligations in respect of the rehabilitation of the Mt Todd site,
insofar as the rehabilitation obligations relate to any pre-existing
environmental condition as at the Commencement Date.  Vista Gold agrees and acknowledges that it
has full responsibility for any environmental conditions that occur subsequent
to the Commencement Date, other than any environmental conditions caused by the
Territory, and except as otherwise expressly provided in clause 11.6.

 

11.6         The
parties acknowledge that, in spite of the best endeavours by Vista Gold, the
pre-existing environmental conditions at Mt Todd as at the Commencement Date
could be exacerbated by factors outside of the control of the parties, or
unknown to the parties at the Commencement Date, such as extraordinary weather
conditions.  Consistent with the position
that Vista Gold has no obligations in respect of the rehabilitation of the Mt
Todd site, insofar as the rehabilitation obligations relate to any pre-existing
environmental conditions as at the Commencement Date, the Territory agrees
that, if there is a claim made against Vista Gold or the Guarantor as a result
of the exacerbation of pre-existing environmental condition as at the
Commencement Date, the Territory will bear the cost of such claim, provided
that Vista Gold has used its best endeavours to prevent the exacerbation, and
Vista Gold has complied with its obligations under clause 7.4.

 

10

 

11.7         In
the event that, notwithstanding clause 11.5, the Territory enforces any of the
provisions of the Mining Act, Mineral Leases or Mining Management Act to require Vista Gold to conduct any
rehabilitation activities in respect of pre-existing environmental conditions
as at the Commencement Date, except as otherwise specifically provided for by
this Agreement, the Territory shall reimburse Vista Gold the cost of
compliance.  Provided that Vista Gold
shall not be forced to pay more than Two Hundred and Fifty Thousand Dollars
($250,000.00) without reimbursement from the Territory within seven (7) days of
a claim being made to the Territory by Vista Gold.

 

12.        EXPLORATION
ACTIVITY

 

Vista Gold shall, within six (6) months of
the Commencement Date, provide to the Territory a reasonably detailed
exploration plan which is designed to evaluate the gold potential of the site.

 

The plan shall describe a year by year phased
exploration program with each successive phase modified by the results of the
preceding phases.  The first year’s
program will primarily consist of compiling and evaluating all available
historical exploration records.  Based on
this evaluation, follow up activities such as Geochemistry and Geophysics or
prospecting-level drilling will be undertaken, followed by drilling at
appropriate locations and densities to adequately evaluate the potential.

 

Vista Gold shall undertake exploration
activities in accordance with the exploration plan.

 

If, in the reasonable opinion of the
Territory, the exploration plan provided by Vista Gold is not sufficient to evaluate
the gold potential of the site within the Term, the Territory shall provide
Vista Gold with a written notice detailing the reasons why the Territory is of
the view that the exploration plan is not sufficient, and Vista Gold shall
revise and resubmit its exploration plan to the Territory for the Territory’s
review.  If Vista Gold and the Territory
are unable to agree on a plan, the plan will be submitted to dispute resolution
as provided for in clause 17.4(b) of this Agreement.

 

Vista Gold acknowledges that any exploration
activity proposed to be carried out by it at Mt Todd must be the subject of a
Mine Management Plan first approved by the Minister pursuant to the Mining Management Act, and appropriate security being
provided in respect of same.

 

13.        MINING ACTIVITY

 

13.1      Vista
Gold may, (but is not obliged to), at any time during the Term, the First
Renewal Period or Second Renewal Period give Notice to the Territory that it
wishes to commence mining activity at Mt Todd.

 

13.2      Upon
expiry of the Notice period, the Territory will:

 

(b)       transfer
the NT Assets to Vista Gold upon such terms and conditions as the Territory and
Vista Gold may agree, or, failing agreement, as determined by an Independent
Valuer;

 

11

 

(c)        promptly
commence to transfer to Vista Gold the rehabilitation, management and
operational activities being carried out by the Territory with a view to
effecting a seamless transition to Vista Gold of all rights duties and
obligations of the Territory in respect of Mt Todd.

 

13.3      Upon
expiry of the Notice Period, Vista Gold must take over and assume full
responsibility for all management, operational and rehabilitation works at Mt
Todd, including without limitation any activity previously being undertaken by
the Territory, and all risk in respect of Mt Todd will thereupon pass to Vista
Gold, and the relief from the obligation to undertake rehabilitation and the
other provisions of clause 11 shall cease to apply.

 

13.4      All
rehabilitation works carried out by Vista Gold pursuant to this clause will be
at the sole cost of Vista Gold.

 

13.5      Vista
Gold acknowledges that any mining activity proposed to be carried out by it at
Mt Todd must be the subject of a Mine Management Plan first approved by the Minister
pursuant to the provisions of the Mining Management Act, and appropriate security being provided in respect of
same.  Vista Gold further acknowledges
that Vista Gold will be solely responsible for obtaining any or all approvals
required for the conduct of mining or exploration activity, including any
environmental approvals required pursuant to the Environmental
Assessment Act or any other relevant environmental laws.

 

14.       INTELLECTUAL
PROPERTY

 

The Territory is and remains at all times the
owner of the Prior Intellectual Property.

 

Each of the Territory and Vista Gold will be
the owner of the intellectual property in any studies, or works that they each
carry out during the Term, or where applicable, the First Renewal Period or the
Second Renewal Period.

 

Each of the Territory and Vista Gold grant to
the other a perpetual non-exclusive licence to use the intellectual property in
any studies or works that they each carry out during the Term, or where
applicable, the first Renewal Period or Second Renewal Period.  Vista Gold acknowledges that, in the event
that this Agreement expires or is otherwise earlier terminated, the Territory
may make any or all intellectual property publicly available or available to
persons with an interest in the Mt Todd site.

 

15.       LOCAL
INDUSTRY PARTICIPATION

 

15.1         Vista Gold acknowledges the importance placed by
the Territory upon local industry participation for economic and social
development reasons and the parties acknowledge the need for a co-operative
approach taken to engaging local industry.

 

12

 

15.2         Vista Gold agrees to:

 

(a)           prepare a local industry participation plan for
any proposed mining activities at Mt Todd (the “Industry Participation
Plan”).  The Industry Participation Plan
shall contain the following elements:

 

(i)            project description;

 

(ii)           an outline of how services and labour will be
utilised (including opportunities for local participation through all tiers
supply chain, estimated local employment during construction and operation, and
proposed work force operations in the Northern Territory;

 

(iii)          an outline of proposed enhancements to business
and industry capability (including skills development, research and
development, opportunities for networks and alliances, encouragement of
international quality standards, use of proven emerging technologies and
materials, and integration of local industry and to global supply chains);

 

(iv)          an outline of regional economic development
benefits;

 

(v)           proposals for indigenous participation;

 

(vi)          a communications strategy; and

 

(vii)         a reporting methodology (including a proposed
framework for reporting against key elements of the Industry Participation
Plan, and a schedule of reports and submissions;

 

(b)           consult with the relevant Department during the
preparation of the Industry Participation Plan; and

 

(c)           submit the Industry Participation Plan to the
Territory for endorsement by the relevant Minister.

 

15.3         Vista Gold agrees not to commence, authorise or
in any way allow to commence, any mining at the Mt Todd site prior to
endorsement of the Industry Participation Plan in accordance with this
Agreement,
provided that endorsement shall not be unreasonably withheld.

 

15.4         When carrying out any work at the Mt Todd site Vista
Gold agrees to, if it is reasonable and economically practical to do so and
that provided that local industry participants are suitably technically
qualified, use its best endeavours to:

 

(a)           use labour available within the Northern
Territory;

 

(b)           provide employment, training and contracting
opportunities to indigenous people, particularly the Jawoyn People.

 

13

 

(c)           use the services of suitably qualified
engineers, surveyors, architects and other professional consultants, experts,
project managers, manufacturers, suppliers and contractors resident and/or
available in the Northern Territory;

 

(d)           when preparing specifications, calling for
tenders and letting contracts for works, ensure that suitably qualified
suppliers and contractors within the Northern Territory are given a reasonable
opportunity to tender or quote; and

 

(e)           ensure that their contractors, when preparing
specifications, calling for tenders and letting contracts for works, give
suitably qualified suppliers and contractors within the Northern Territory a
reasonable opportunity to tender or quote.

 

15.5         Vista Gold agrees to engage with the Northern
Territory Industry Capability Network (“NTICN”) to:

 

(a)           if appropriate, enter into arrangements for the
secondment of NTICN personnel to the Mt Todd Project on a part-time or other
basis to assist with the identification of local industry suppliers as part of
the procurement processes for the project; and

 

(b)           facilitate the implementation of the Industry
Participation Plan.

 

15.6         The Territory agrees to use its reasonable
endeavours to work with Vista Gold in respect of local industry participation
and such work may include, if appropriate and without limitation:

 

(a)           participation in or the coordination of industry
briefings;

 

(b)           implementation of a project awareness campaign
targeted at local industry; and

 

(c)           working with local industry to improve business
capabilities.

 

15.7         Vista Gold must, in every contract entered into
with a third party in connection with Mt Todd, for the supply of services,
labour, works or materials for the purposes of the project, require a condition
in such contract that the third party will:

 

(a)           undertake the same local industry participation
obligations as Vista Gold set out in this Deed; and

 

(b)           report to Vista Gold concerning the
implementation of its local industry participation obligations.

 

15.8         Vista Gold agrees to consult with NTICN on a
regular basis to discuss:

 

(a)           forward planning of contracts;

 

(b)           contracts to be awarded; and

 

(c)           contracts previously awarded.

 

14

 

15.9         Vista Gold agrees to prepare and submit yearly
reports to the Territory, with the first report to be submitted twelve (12)
months from the date on which this Agreement is executed, which must include:

 

(a)           evidence of Vista Gold’s implementation of the
requirements set out in this Agreement; and

 

(b)           a copy of any report received by Vista Gold from
a third party.

 

16.        INDEMNITIES

 

(a)        Subject
to sub-clause (b), the Territory shall indemnify and keep indemnified Vista
Gold and the Guarantor from and against any and all liabilities, claims,
demands, proceedings, penalties, damages, losses, costs, charges and expenses
whatsoever suffered by Vista Gold or the Guarantor as a result of the
Territory’s negligence or breach of the terms of this Agreement during the
Initial Period, and thereafter in relation to any breach of clause 11.

 

(b)        Any
liability of the Territory arising under this clause shall be reduced
proportionately to the extent that Vista Gold has caused or contributed to the
negligence or breach.

 

(c)        Vista
Gold shall indemnify and keep indemnified the Territory from and against any
and all liabilities, claims, demands, proceedings, penalties, damages, losses,
costs, charges and expenses whatsoever suffered by the Territory as a result of
Vista Gold’s negligence or breach of the terms of this Agreement during the
Term and, if applicable, the First Renewal Period and the Second Renewal Period.

 

(d)        Any
liability of Vista Gold arising under this clause shall be reduced
proportionately to the extent that the Territory has caused or contributed to
the negligence or breach.

 

17.        DISPUTE RESOLUTION

 

17.1      Before
court or arbitration proceedings (other than for urgent interlocutory relief)
may be commenced or this Agreement may be terminated pursuant to clause
18.1(b), the following steps must be taken to attempt to resolve any dispute
that arises out of or in connection with this Agreement (including any dispute
as to the validity, breach or termination of the Agreement) or as to any claim
in tort, in equity or pursuant to any statute.

 

17.2      Notice
(the “Notice of Dispute”) must be given in writing by the party claiming that a
dispute has arisen to the other party or parties to this Agreement, specifying
the nature of the dispute.

 

17.3      Upon
receipt of the Notice of Dispute, the parties must attempt to agree upon an
appropriate procedure for resolving the dispute.

 

17.4      If,
within ten (10) Business Days of receipt of the Notice of Dispute the dispute
is not resolved or an appropriate alternative dispute resolution process is not
agreed, then the parties (or either of them) must:

 

15

 

(a)        if
the dispute is not of a technical nature, refer the dispute to a mediator
agreed between them or failing agreement appointed by the President for the
time being of the Law Society of the Northern Territory for facilitation of
mediation in accordance with mediation rules to be nominated or set down by the
mediator.  The parties must co-operate
with the mediator as facilitator.   The
costs of the mediation will be borne equally between the parties; or

 

(b)       If
the dispute is of a technical nature, refer the dispute to an independent
expert agreed between them or failing agreement appointed by the Branch
Chairman of the Australasian Institute of Mining and Metallurgy — Darwin Branch
or such other person of a similar standing as agreed by the parties.  The expert must have reasonable
qualifications including commercial and practical experience in the area of the
dispute.  The expert is authorised to
inform himself or herself independently as to the facts to which the dispute
relates, receive submissions, statements and documents and act upon same,
consult with other qualified persons and take such measures as he or she thinks
to expedite the resolution of the dispute. 
The person appointed as an expert under this clause is deemed not to be
an Arbitrator but an expert in the law relating to arbitration, including the Commercial Arbitration Act will not apply to him or her in
his or her determination.  The final
determination of the expert will be final and binding upon the parties.  The costs of the expert and any advisers to
the expert will be born by the parties equally.

 

17.5      This
clause will survive the performance of the Agreement and its termination.

 

18.       DEFAULT TERMINATION AND EXPIRY

 

18.1      This
Agreement may be terminated, with written notice to the other party:

 

(a)        immediately
by the Territory if Vista Gold or the Guarantor has an application or order
made, or a resolution passed for its deregistration or winding up, goes into
voluntary administration or enters a deed of company arrangement, liquidation,
stops payments of its debts or is unable to pay its debts within the meaning of
the Corporations Law, is placed under official management or has a Receiver,
Manager or Inspector appointed over any of its assets;

 

(b)       by
either the Territory or Vista Gold if the Territory or Vista Gold (as the case
may be) has committed a breach of any of its obligations under this Agreement
and the Territory or Vista Gold (as the case may be) has served on the other
party a notice stating that it is a notice under this clause and giving the party
such reasonable period of time (which shall be no less than three (3) months
and no more than six (6) months) that is necessary to remedy or rectify the
breach and, at the expiry of that period of notice, the breach has not been
rectified to the satisfaction of the relevant party.

 

16

 

(c)        by
Vista Gold upon the giving of twelve (12) months notice (or such longer or
shorter time as the parties may agree) of its intention to terminate the
agreement.

 

18.2      Termination
or Expiry of this Agreement:

 

(a)        does
not affect any rights or obligations which may have accrued prior to
termination or cessation and which remain unsatisfied; and

 

(b)       shall
not affect any provision of this Agreement which is expressed to come into
effect on, or to continue in effect after, that termination or cessation.

 

18.3      Upon
termination or expiry of this Agreement Vista Gold may, by notice in writing
given to the Territory within three (3) months of the termination or expiry of
this Agreement, elect to retain the Mineral Leases (MLN 1070, 1071 and 1127),
in which case Vista Gold shall assume all of the obligations of the holder of
the Mineral Leases including, without limitation, the obligation to fully
rehabilitate the Mt Todd site consistent with currently accepted standards, or
in the event that Vista Gold does not so elect, Vista Gold shall, at the option
of the Territory:

 

(a)        transfer
the Mineral Leases (MLN 1070, 1071 and 1127) to a nominee nominated by the
Territory; or

 

(b)       surrender
the mineral leases by lodging a written notice in accordance with section 70 of
the Mining Act, or in such other method as
may be directed by the Territory.

 

18.4      This
clause will survive the expiry or earlier termination of this Agreement.

 

19.        ASSIGNMENT
OR TRANSFER OF MINERAL LEASES

 

Vista Gold agrees that it shall not assign or
transfer its rights or obligations under this Agreement or any of them without
the prior written consent of the Minister. 
For the purposes of this clause Vista Gold assigns its rights and
obligations under the Agreement if there is a change in control or ownership of
Vista Gold.

 

The Territory shall not unreasonably withhold
consent to an assignment or transfer provided that:

 

(a)        the
Territory is reasonably satisfied as to the financial and business capacity of
the proposed transferee;

 

(b)        Vista
Gold remedies any default under this Agreement of which prior written notice
has been given to Vista prior to transfer; and

 

(c)        the
transferee enters into a further agreement with the Territory concerning the
matters contained in this Agreement on terms and conditions reasonably
acceptable to the Territory.

 

17

 

20.        NOTICES

 

20.1      All
notices, approvals, consents, demands or other communications required or
permitted to be given under this Agreement must be in writing and served:

 

(a)        personally;

 

(b)       by
pre-paid certified post; or

 

(c)        by
facsimile transmission,

 

at the address of the party set out below or at such other address as a
party may have substituted for it by written notice to the other.

 

20.2      A
notice, approval consent, demand or other communication is deemed to be given
by the sender and received by the addressee, if:

 

(a)        given
by delivery in person, when delivered to the addressee;

 

(b)       sent
by mail, on the second Business Day from and including the date of posting; or

 

(c)        sent
by facsimile, on receipt of a complete and correct transmission report by the
sender and if received by the addressee before 4.00pm (addressee’s time) on a
Business Day on that day otherwise it is deemed to be received at 9.00am on the
next following Business Day in the place of receipt.

 

20.3      For
the purposes of this Clause the address for service of each party is as
follows:

 

(a)  the Territory

 

Department of Primary Industry Fisheries and
Mines

GPO Box 3000

DARWIN  
NT   0801

 

	
  Attention:

  	
   

  	
  Chief Executive

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
  (08) 8999 5598

  
	
  Facsimile:

  	
   

  	
  (08) 8999 5191

  

 

 

(b)       Vista Gold

 

c/- Whittens Lawyers

Level 30, Piccadilly Tower

133 Castlereagh Street

SYDNEY  
NSW   2000

 

	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone: 

  	
   

  	
  (02) 9264 2216

  
	
  Facsimile: 

  	
   

  	
  (02) 9283 1970

  

 

18

 

(c)        Vista Gold Corp

 

7961 Shaffer Parkway

Suite 5

Littleton, CO 80127

 

	
  Attention:  

  	
   

  	
  Mike Richings

  
	
  Telephone:

  	
   

  	
  720-981-1185

  
	
  Facsimile:

  	
   

  	
  720-981-1186

  

 

20.4         Any
change to the details specified in this clause must be advised to the other
party by certified or registered mail within seven (7) days of the change.

 

21.        GOODS AND SERVICES TAX

 

21.1      For
the purposes of this Clause unless the context otherwise requires:-

 

(a)        “GST” means any tax imposed on Supply by or through the A New Tax System (Goods and Services Tax) Act 1999 (“the Act”) and any related Tax Imposition Act.  Where any other term is used in this clause
which is defined in the Act it shall have the meaning which it bears in the
Act, or (if the term is not defined in the Act) the meaning which it bears in
any related Tax Imposition Act;

 

(b)       “GST Rate” means the percentage amount of GST payable
determined under section 9-70 of the Act as amended from time to time; and

 

(c)        “Input Tax Credit”, “Recipient”, “Supplier”
and “Supply” and have
the meaning they bear in the Act.

 

21.2      The
parties acknowledge that the consideration under this Agreement is exclusive of
GST.

 

21.3      The
Supplier and the Recipient agree that in the case of a Supply which is a
taxable Supply the consideration payable to the Supplier will be increased by
an amount equal to the GST payable on the Supply where GST is calculated using
the GST Rate applicable at the time of the Supply.

 

21.4      The
Supplier shall provide the Recipient with a tax invoice and/or adjustment notes
in relation to the Supply prior to an amount being paid by the Recipient under
this Agreement and shall do all things reasonably necessary to assist the
Recipient to enable it to claim and obtain any Input Tax Credit available to it
in respect of a Supply.

 

22.           CONFIDENTIAL
INFORMATION

 

22.1      Each
party must hold all Confidential Information of the other party in confidence
and must not make any use of it, except for the purposes of

 

19

 

performing its obligations or exercising its
rights under this Agreement and must not disclose or permit or cause the
Confidential Information of the other party to be disclosed to any person,
except:

 

(a)        as
authorised by the other party under this Agreement;

 

(b)       to
its employees, to the extent needed to perform their obligations under this
Agreement;

 

(c)        disclosure
as required by Law or by applicable Canadian or United States Federal,
Provincial or State law or Regulatory Authorities, or by the Toronto Stock
Exchange or the American Stock Exchange; and

 

(d)       disclosure
by the Territory to Ministers, Cabinet and the Legislative Assembly of the
Northern Territory.

 

22.2      The
parties acknowledge and agree that this Agreement is not Confidential
Information, and that it is intended that this Agreement be made public.

 

23.        INSPECTION OF RECORDS AND AUDIT RIGHTS

 

23.1      The
Territory shall make records and data brought into being in respect of Mt Todd
(with the exception of any records or data the subject of legal professional
privilege or which would be exempt from disclosure pursuant to the provisions
of the Information Act (NT) available for inspection
by Vista Gold to enable Vista Gold to carry out its initial studies and to more
fully understand the history and nature of the land management and
environmental issues pertaining to the site.

 

23.2      Upon
receipt of a request in writing from Vista Gold, the Territory must allow an
appropriately qualified person (“Auditor”) to conduct an audit on behalf of
Vista Gold to be performed at reasonable times during normal business
hours.  Such Auditor may be an independent
auditor engaged by Vista Gold, and the costs of any such audit shall be borne
by Vista Gold.

 

23.3      The
Territory must:

 

(a)        provide the Auditor with
access to its premises and to the records and data created and kept pursuant to
Clause 23.1 during the Term to enable the conduct of the audit; and

 

(b)       permit the Auditor to make
copies of any such records or data.

 

24.        FORCE MAJEURE

 

24.1         If
a party is unable to wholly or in part carry out its obligations due to acts of
God, strikes, lockouts or other industrial disturbances, war, unavoidable
accident or flood then the other party shall give the affected party notice
thereof and, insofar as is known, the probable extent to which it will be
unable to perform or will be delayed in performing such

 

20

 

obligation, whereupon such obligation shall
be suspended so far as it is affected by such cause.

 

24.2         Once
such cause has ended, the obligated party must resume carrying out all acts
which it would have been liable to carry out had the cause not intervened.

 

24.3         The
obligated party shall take all reasonable steps to ameliorate and eliminate the
intervening event and resume performance as promptly as practicable.

 

24.4         Costs
incurred by a party by reason of a force majeure event under clause 24.1 shall
be borne by the obligated party.

 

24.5         Notwithstanding
anything herein to the contrary, if an intervening event persists for longer
than thirty (30) days then either party may terminate this Agreement by notice
to the other in writing.

 

25.        COMPLIANCE WITH LAWS

 

The parties shall comply with the Law as in
force in the Territory from time to time.

 

26.        COSTS AND STAMP DUTY

 

The parties shall each pay their own costs of
and incidental to the negotiations for and the preparation and execution this
Agreement but any stamp duty payable on this Agreement shall be borne by Vista
Gold.

 

27.        ENTIRE AGREEMENT

 

This Agreement terminates and supersedes all
previous written and oral agreements and understandings between the parties
with regard to the matters dealt with in this Agreement.

 

28.        COUNTERPARTS

 

This Agreement may be signed in any number of
counterparts and all such counterparts when taken together shall constitute one
instrument.

 

29.        AMENDMENTS

 

No alteration, addition or amendment shall be
made to this Agreement other than in writing signed by each of the parties.

 

30.        WAIVER

 

30.1      A
party to this Agreement cannot allege or purport to rely upon a waiver of any
breach of or non-compliance with any warranty, term or condition of this
Agreement unless that wavier is in writing and signed by the party against whom
that waiver is claimed.  A waiver of any
breach of or non-compliance will not be deemed to be a waiver of any other or
subsequent breach or non-compliance.

 

21

 

30.2      A
failure or delay in exercise, or partial exercise, of a right , power or
privilege arising from a breach of or non-compliance with any warranty, term or
condition of this Agreement does not result in a waiver of that right, power or
privilege.

 

31.        ASSIGNMENT

 

A party shall not assign or otherwise deal
with this Agreement or any right under this Agreement without the prior written
consent of the other party which consent may not be unreasonably withheld.

 

32.        SEVERABILITY

 

If a court determines that a word, phrase,
sentence, paragraph or provision in this arrangement is unenforceable, illegal
or void then it shall be severed and the other provisions of this arrangement
shall remain operative.

 

33.        JURISDICTION AND PROPER LAW

 

This Agreement shall be governed by and
construed in accordance with the law for the time being in force in the
Northern Territory and the parties hereto submit to the exclusive jurisdiction
of the Supreme Court of the Northern Territory at Darwin in respect of all matters
arising hereunder or related hereto.

 

34.        FURTHER ACTS

 

Each party will promptly do and perform all
acts and execute and deliver all documents (in a form and context reasonably
satisfactory to that party) required by Law or by applicable Canadian or United
States Federal, Provincial or State law or Regulatory Authorities, or by the
Toronto Stock Exchange or the American Stock Exchange or reasonably requested
by the other party to give effect to this Agreement.

 

35.        GUARANTEE AND INDEMNITY

 

35.1         The Guarantor:

 

(a)           gives this guarantee and indemnity in
consideration of the Territory agreeing to enter into this Agreement; and

 

(b)           acknowledges incurring obligations and giving
rights under this guarantee and indemnity for valuable consideration received
from the Territory.

 

35.2         The Guarantor unconditionally and irrevocably
guarantees the due and punctual performance of the Guaranteed Obligations.

 

35.3         If Vista Gold does not duly and punctually
perform the Guaranteed Obligations in accordance with the terms of this
Agreement then the Guarantor agrees to perform the Guaranteed Obligations on
demand from the Territory (whether or not demand has been made on Vista
Gold).  A demand may be made at any time
and from time to time.

 

22

 

35.4         As a separate undertaking, the Guarantor
indemnifies the Territory against all liability or loss arising from, and any
costs, charges or expenses incurred in connection with, the Guaranteed
Obligations not being duly and punctually performed because of any circumstance
whatsoever.

 

35.5         This guarantee and indemnity is a continuing
security and extends to all money payable under this guarantee and indemnity
and to all of the Guaranteed Obligations. 
The Guarantor waives any right it has of first requiring the Territory
to proceed against or enforce any other right, power, remedy or security or
claim payment from Vista Gold or any other person before claiming from the
Guarantor under this guarantee and indemnity.

 

35.6         The liabilities under this guarantee and
indemnity of the Guarantor as guarantor, principal debtor, principal obligor or
indemnifier and the rights of the Territory under this guarantee and indemnity
are not affected by anything which might otherwise affect it at law or in equity
including, without limitation, one or more of the following:

 

(a)           the Territory or another person granting time or
other indulgence to, compounding or compromising with or releasing Vista Gold;
or

 

(b)           acquiescence, delay, acts, omissions or mistakes
on the part of The Territory; or

 

(c)           any variation or novation of a right of the
Territory, or alteration of this Agreement or a document, in respect of Vista
Gold.

 

35.7         As long as the Guaranteed Obligations or any of
them remain unperformed, the Guarantor may not, without the consent of the
Territory:

 

(a)           make a claim or enforce a right (including,
without limitation, a mortgage, charge or other encumbrance) against Vista Gold
or its property; or

 

(b)           prove in competition with the Territory if a
liquidator, provisional liquidator, official manager or trustee in bankruptcy
is appointed in respect of Vista Gold or Vista Gold is otherwise unable to pay
its debts when they fall due.

 

35.8         The Guarantor represents and warrants that its
obligations under this guarantee and indemnity are valid and binding and that
it does not enter into this guarantee and indemnity in the capacity of a
trustee of any trust or settlement.

 

35.9         For the purposes of this guarantee and indemnity
“Guaranteed Obligations” means all express or implied obligations of Vista Gold
to the Territory in connection with this Agreement, or any transaction or
variation agreed to, or contemplated by it, or collateral thereto.

 

23

 

EXECUTED by the parties as an Agreement.

 

 

	
  SIGNED by the HON
  KONSTANTINE

  VATSKALIS MLA, Minister for Mines and

  Energy for and on behalf of the

  NORTHERN TERRITORY OF

  	
  )

  )

  )

  )

  	
   

  	
  

  

  

  
	
  AUSTRALIA in the presence of:

  	
  )

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature of Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name of Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE COMMON SEAL of VISTA GOLD
  AUSTRALIA PTY LTD

  (A.C.N. 117 327 509) was hereto
  affixed in accordance with its Constitution in the

  presence of:

  	
  

  )

  )

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director / Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE COMMON SEAL of VISTA GOLD
  CORPORATION was hereto affixed in the

  presence of:

  	
  )

  )

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director / Secretary

  	
   

  	
   

  	
   

  

 

24

 

SCHEDULE A

 

NT ASSETS

 

	
  Description

  	
   

  	
  Infrastructure

  
	
   

  	
   

  	
   

  
	
  RP1 to RP7 pumping system

  	
   

  	
  •      Approximately
  3.2km of poly pipeline (350mm diameter)

   

  •      VSU
  YF61 20044 Toya Denki variable speed unit

   

  •      Electric
  motor (stainless steel) 150kw 4 Pole Toshiba 3 Phase

   

  •      Various
  lengths of spare pipeline laying along the length of the existing pipeline.

  
	
   

  	
   

  	
   

  
	
  RP7/Raw Water (RW) pumping circuit, including:

  	
   

  	
  •      1.6km
  of 560mm diameter pipeline running around the base of the tails dam from the
  raw water dam to the decant pond, including all valves, flanges and 7 lengths
  of spare pipeline laying near the existing pipeline

   

  •      RW
  pumps being 2 x Ingersoll Rand Decant Water Pumps, type 10x8x13 powered by
  Teco 75 kw motor with fittings, gates, valves, suction hose, pontoon and flow
  meters

   

  •      Decant
  Pond pumps being 2 x Thompson Kelly & Lewis Hydro-Titan Raw Water Pumps,
  including motors, fittings, gate, valves and flow controls

   

  •      1x
  Header Tank

   

  •      Pipeline
  from booster pump to the plant consisting of approximately 3.4km of poly pipe
  of 450mm diameter

   

  •      Pipeline
  from decant pond to the plant similarly consists of approximately 3.4km of
  poly pipe of 450mm diameter

  
	
   

  	
   

  	
   

  
	
  Heap leach pumping system to RP7 including pipe work of various
  diameters connecting cells 1,2,3 and 4 inclusive (including all pumps,
  valves, goose necks, manifolds and filters)

  	
   

  	
  •              Distribution
  lines of various diameters across the Heap Leach pad and all equipment within
  the boundaries of the Heap Leach

   

  •              Cell
  1 Pump – 1 x Flygt 37kw submersible pump

  

 

25

 

	
   

  	
   

  	
  •      Cell
  4 Pump – 1 x 55kw submersible pump

   

  •      Pipeline
  from Heap Leach to Barren Pond (RP5) and from Barren Pond (RP5) to Heap Leach
  consisting of two separate lines being a mixture of poly and steel pipe of
  approximately 1km each

   

  •      The
  Barren Pond including liner, surrounding fence etc

   

  •      Poly
  pipeline from Barren Pond (RP5) to RP7 which includes all valves, fittings
  etc of approximately 1.5km in length and approximately 450mm in diameter

   

  •      Poly
  pipeline from Heap Leach to RP7 which includes all valves, fittings etc of
  approximately 0.5km in length and approximately 350mm and various diameters

   

  •      Poly
  pipeline from Heap Leach to RP7 which includes two separate lines of 165mm
  and 200mm diameter and approximately 0.25km in length each

  
	
   

  	
   

  	
   

  
	
  RP2 pumping system including pumps pipes and valves:

  	
   

  	
  •      1
  x 55kw stainless steel submersible pump

   

  •      poly
  pipeline of approximately 0.8km in length from RP2 to RP5 (Batman Pit) of
  various diameters

   

  •      poly
  pipeline of approximately 1km in length from RP2 to RP7 (Tails Dam) of
  various diameters.

  
	
   

  	
   

  	
   

  
	
  Irrigation/Watering System located on the Western side of PR7, being
  the evaporation system which includes:

  

  	
   

  	
  •      approximately
  0.2km of 200mm diameter poly pipeline

   

  •      various
  diameter and lengths of poly pipeline distributing water via sprinkler heads
  and associated spare poly pipeline valves, flanges etc located near existing
  system

  
	
   

  	
   

  	
   

  
	
  Spares

  	
   

  	
  removed from existing stores and relocated to seatainer and locked in
  old cyanide compound.

  
	
   

  	
   

  	
   

  
	
  Tools required to help in the 

  	
   

  	
  •      HF630
  Fusionmaster poly pipe 

  

 

26

 

	
  maintenance of the different systems

  	
   

  	
  welding machine

   

  •      FW225
  Fielder poly pipe welding machine

   

  •      Denyo
  diesel welder/generator (TLW38055WK)

  
	
   

  	
   

  	
   

  
	
  Substation 111

  

  	
   

  	
  •      Low
  voltage switchgear equipment no 1300-MCC-103 and shelter

   

  •      Wilson
  1500 kVA 11 KV-415 transformer equipment no TX117

  
	
   

  	
   

  	
   

  
	
  Substation 109 (Decant Pond)

  

  	
   

  	
  •      Low
  voltage switchgear equipment no 2100-MCC-115 and shelter-skid mounted (not
  including telemetry equipment already sold)

   

  •      Wilson
  500 kVA 11 KV-415 transformer equipment no 2100-TX-115

  
	
   

  	
   

  	
   

  
	
  Substation 06 (Heap Leach)

  	
   

  	
  •      Low
  voltage switchgear equipment no 04-MCC-08, skid mounted

   

  •      Wilson
  750 kVA 11 KV-415 transformer equipment no 04-TX-07

  
	
   

  	
   

  	
   

  
	
  Substation 03

  

  	
   

  	
  •      Low
  voltage switchgear equipment no 05-MCC-04 and building, not including VS
  drive owned by DME and telemetry equipment already sold

   

  •      Wilson
  750 kVA 11 KV-415 transformer equipment no 05_TX04

  
	
   

  	
   

  	
   

  
	
  Genset

  

  	
   

  	
  •      Diesel
  Generator set, skid mounted (asset 5-16)

   

  •      Alternator:
  Magnamax Model No 573RSL4032BP530W, Serial No YA 387 205101 650 KVA, 240/415
  volt

   

  •      Prime
  Mover: Detroit Diesel V8 engine model no 80837416 Spec L12253 Unit No
  08VE154379, Serial No 9830922ser# in enclosed cabinet, skid base with 

  

 

27

 

	
   

  	
   

  	
  inbuilt fuel tank, model
  572RSL4024BP/533W,(OSGE01)

  
	
   

  	
   

  	
   

  
	
  Substation 00

  	
   

  	
  •      Hi
  voltage switchgear equipment no 10-SB-01 and building with tripping power
  supply.

  
	
   

  	
   

  	
   

  
	
  Used raw water tank

  	
   

  	
  •      Plant
  No 1720-TK-151 with all remaining appurtenances mounted on it as of deed
  date.

  
	
   

  	
   

  	
   

  
	
  Pipes and Associated Infrastructure

  	
   

  	
  •      All
  pipe and pipe fittings on Site

  
	
   

  	
   

  	
   

  
	
  Electrical Infrastructure

  	
   

  	
  •      Power
  line to stacker

   

  •      Power
  line (11kv) adjacent decant pond.

   

  •      415
  V Turkey Nest Transformer

   

  •      Substations
  – Bores 1,6 &10

   

  •      Lightening
  Tower

  
	
   

  	
   

  	
   

  
	
  Buildings

  	
   

  	
  •      Front
  Gate Demountable

   

  •      Telephone
  Exchange Building & equipment owned by APL

  
	
   

  	
   

  	
   

  
	
  Tanks

  	
   

  	
  •      Cyanide
  Tanks (3)

   

  •      Lime
  Silo

   

  •      Cement
  Silo

   

  •      Thickener
  Overflow Slurry Tank

  
	
   

  	
   

  	
   

  
	
  General

  	
   

  	
  •      Fencing
  Around Tailings Dam

   

  •      Septic
  Systems (2) and Septic Head

   

  •      Wooden
  Sleepers Adjacent to Stacker Area

   

  •      Site
  Access Gate

   

  •      Turkeys
  Nest Liner

   

  •      RP5
  Liner and RP6 Liners and associated infrastructure

   

  •      Pipework
  and equipment associated with heapleach and decant not mentioned in
  contractual purchases

  

 

28

 

SCHEDULE B

 

Third Party owned assets

 

	
  3rd Party

  	
   

  	
  Description of
  Plant and Equipment

  
	
   

  	
   

  	
   

  
	
  Tanami Gold NL

  	
   

  	
  •      Carbon
  in Leach Tanks (9)

   

  •      Flotation
  Building Inclusive of tanks

  
	
   

  	
   

  	
   

  
	
  Crusher Services International

  	
   

  	
  •      Lay
  down Area adjacent Heap Leach

  
	
   

  	
   

  	
   

  
	
  Carol Davis

  	
   

  	
  •      Garden
  Shed on Road to Stacker

  
	
   

  	
   

  	
   

  
	
  Colin Freeman

  	
   

  	
  •      Stores
  Holding yard contents owned by Colin Freeman – now apparently removed

   

  •      Shed
  (formerly substation) 101

   

  •      Shed
  (formerly substation) 102

   

  •      Shed
  (formerly substation) 105

   

  •      Shed
  (formerly substation) 107

  

 

29

 

SCHEDULE C

 

SITE ENTRY CONDITIONS

 

The Territory acknowledges and agrees that:

 

1.             At any time during which The Territory, its
officers, servants, agents or contractors are on the grounds comprising the
Mine:

 

(a)           with the exception of mining officers acting
pursuant to the Mining Management Act, they will
follow the directions and instructions given by security personnel, Vista Gold
and the officers, servants, agents and contractors of Vista Gold;

 

(b)           no alcohol, firearms, or pets are permitted on
the Mine site;

 

(c)           persons under the age of 16 years will not be
permitted on the Mine site.

 

2.             When undertaking any major dismantling (being
work which involves the disassembly of equipment, structures and buildings or
the use of elevated platforms, work baskets or the handling of hazardous substances):

 

(a)           only the Territory, its officers, servants,
agents or contractors who have completed an OH & S and environmental
pre-qualification to the satisfaction of the Vista Gold shall be permitted on
the Mine site;

 

(b)           minimum clothing requirements are steel toed
boots, long trousers, sleeved shirt, safety helmet, glasses and such other
personal protective equipment as directed by Vista Gold or its officers,
servants, agents or contractors;

 

(c)           the sequence of any dismantling will be
determined and controlled by Vista Gold so as to ensure the orderly dismantling
and removal of any equipment, structures and buildings situated on the Mine
site.

 

3.             In the context of any mobile plant sought to be
brought onto the Mine site by or on behalf of the Territory:

 

(a)           all mobile plant will be inspected by the Vista
Gold’s servants, agents or contractors and will only be permitted on site in
the absolute discretion of Vista Gold;

 

(b)           cranes and forklifts must be certified in
accordance with the requirements of the NT Work Health Authority;

 

(c)           all lifting equipment, including chains, slings
and shackles shall carry current certification from a National Association of
Testing Authority registered tester;

 

30

 

(d)           the operators of equipment must hold a
certification (from the NT Work Health Authority or other appropriate
interstate statutory authority) relevant to the equipment which is being
operated and demonstrate a level of competency to the satisfaction of Vista Gold.

 

4.             At all times, The Territory, its officers,
servants, agents and contractors shall comply with all applicable statutory and
regulatory requirements relevant to their attendance on the Mine site,
including those contained in the Mining Act and
the Mining Management Act and the
regulations or other instruments created under, or to give force to, those
Acts.

 

31

 

	
   

  	
  BETWEEN:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NORTHERN TERRITORY OF AUSTRALIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“the Territory”)

  
	
   

  	
   

  	
   

  
	
   

  	
  AND:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VISTA GOLD AUSTRALIA PTY LTD

  
	
   

  	
  (A.C.N. 117 327 509)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“Vista Gold”)

  
	
   

  	
   

  	
   

  
	
   

  	
  AND:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VISTA GOLD CORP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“the Guarantor”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AGREEMENT

  
	
   

  	
   

  	
   

  
	
   

  	
  Solicitor for the Northern Territory

  
	
   

  	
  45 Mitchell Street

  
	
   

  	
  DARWIN NT 0800

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  (08) 8999 7623

  
	
   

  	
  Facsimile:

  	
  (08) 8999 6316

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ref: 20051515 AJS:ME / KMC

  
	
   

  	
   

  	
   

  
	
   

  	
  C200515806 – Vista Corp – –1 February

  2006 – clean copy

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]