Document:

SECOND MODIFYING AGREEMENT TO ASSETS’ SALES-PURCHASE CONTRACT SUBSCRIBED ON THE 10TH JULY 2006 SIGNED BY, A) COMPAÑÍA MINERA LA ESCUADRA, S.A. DE C.V., REPRESENTED IN THIS ACT BY MR. EMILIO ACUÑA PERALTA, IN HIS PERSONALITY AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE, THE (SELLER) AND, B) CORPORACIÓN AMERMIN, S.A. DE C.V., REPRESENTED IN THIS ACT BY MR. RAMIRO TREVIZO LEDEZMA, IN HIS PERSONALITY AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE, AS WELL AS BY MR. RAMIRO TREVIZO LEDEZMA IN HIS OWN BEHALF, ACTING SIMULTANEOUSLY PER THEIR OWN RIGHT, THE (BUYERS), AND MR. CARLOS ARNOLD ACUÑA IN HIS PERSONALITY AS CREDITOR OF COMPAÑÍA MINERA LA ESCUADRA, S.A. DE C.V., JOINTLY NAMED AS THE “PARTIES”, IN ACCORDANCE TO THE FOLLOWING PREVIOUS FACTS, DECLARATIONS AND CLAUSES.
 

 

 PREVIOUS FACTS
 

 

 I. 
 On the 10th July 2006, PARTIES subscribed a Sales-Purchase contract by virtue of   which, among other terms and conditions, the SELLER transferred in favor of the   BUYERS the property of different goods considered as assets, including a   machinery and equipment inventory pertaining to mining activities, the   INVENTORY, as well as the Title Holding of the mining rights derived from 8   (eight) mining concessions, the CONCESSIONS, agreeing to receive in exchange   for such a concept the certain price and in money the amount of $6’5000,000.00   Dollars, (Six million five hundred thousand Dollars 00/100 in legal tender of the   United States of America), plus the corresponding Added Value Tax, an amount   total of $7’475,000.00 Dollars, (Seven million four hundred seventy five   thousand Dollars 00/100 in legal tender of the United States of America) the   CONTRACT; ordinary copy of such document is annexed to this instrument as   ATTACHMENT I:
 

 II.  
 In order of formality, the CONTRACT’S subscription was ratified before Public 
 Broker as is proven in the Notary Ratification granted on the 25th October 2006   before testimony of Eugenio Fernando García Russek, appointed to Public Notary   number 28 for the Morelos Judicial District of the state of Chihuahua, whose Title   holder is Mr. Felipe Colomo Castro, Attorney at Law, and instrument that was duly   registered in Volume 12 of the Book of Acts Registered out of Protocol of such   Notary Public office under number 13,448;
 

 III. 
 In agreement to Clause Four of the CONTRACT, on the same date of subscription   of said instrument, that is, on the 10th July 2006, the BUYERS agreed to deliver in   favor of the SELLER as an advance or down payment, the amount of $382,142.86   Dollars, (Three hundred eighty two thousand and one hundred forty two 86/100   Dollars in legal tender of the United States of America), and agreeing that the   pending balance, fixed at the amount of $7’092,857.14 Dollars, (Seven million 
 

 1
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 ninety two thousand and eight hundred fifty seven Dollars 14/100 in legal tender of   the United States of America), including the Added Value Tax, would be favored in   3 (three) future payments.
 

 IV. 
 With the purpose of clarifying different terms and conditions agreed upon in the 
 CONTRACT, and because it was so convenient to both PARTIES, on the 31st   August 2006, a Modifying Agreement was subscribed in virtue of which, among   other aspects, it was specified that the schedule of payments to be favored in the   future with the purpose of liquidating balance mentioned in the foregoing numeral,   the AGREEMENT; ordinary copy of said document is annexed to this present   instrument as Attachment II;
 

 V. 
 In order of formality, the CONTRACT’S subscription was ratified before Public 
 Broker as is proven in the Notary Ratification granted on the 25th October 2006   before testimony of Eugenio Fernando García Russek, appointed to Public Notary   number 28 for the Morelos Judicial District of the state of Chihuahua, whose Title   holder is Mr. Felipe Colomo Castro, Attorney at Law, and instrument that was duly   registered in Volume 12 of the Book of Acts Registered out of Protocol of such   Notary Public office under number 13,449;
 

 

 VI. 
 On the date of signature of the AGREEMENT, that is on the 31st August 2006, the   SELLER subscribed with Mr. Carlos Arnold Acuña Aranda in the presence of the   BUYERS, an Agreement of Surrender of Rights of Collection, by virtue of which,   in general terms, it was granted in favor of Mr. Acuña Aranda the right to receive   the obligations’ payment derived from the CONTRACT and the AGREEMENT;
 

 VII. The 8 (eight) CONCESSIONS, object of the CONTRACT and of the 
 AGREEMENT, are the following:
 

 

 	 	
	 Title
	 Name of Lot

	 161,838
	 El Picacho

	 206,327
	 Unificación Rey de Oro

	 214,776
	 Mis Recuerdos

	 218,818
	 Picacho II

	 222,511
	 Dos Amigos

	 222,789
	 Picacho II

	 222,925
	 Picacho I

	 226,154
	 Crestón

 

 

 VIII. 
 Due to causes not imputable to the PARTIES, of the CONCESSIONS to date, only   the one related with lot named “Dos Amigos” is found to be duly registered in favor   of the SELLER before the General Directory of Mines, a dependency of the 
 

 2
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 Secretary of the Economy, while the rest of same are found to be registered in favor   of the following indicated Concessionaires:
 

 

 	 	 	
	 Title
	 Name of Lot
	 Registered Concessionaire

	 161,838
	 El Picacho
	 Compañía Minera El Coronel, S.A. de C.V.

	 206,327
	 Unificación Rey de Oro
	 Mexicana de Cobre, S.A. de C.V.

	 222,925
	 Picacho I
	 Compañía Minera El Coronel, S.A. de C.V.

	 214,776
	 Mis Recuerdos
	 Compañía Minera El Coronel, S.A. de C.V.

	 218,818
	 Picacho II
	 Emilio Acuña Peralta

	 222,789
	 Picacho II
	 Emilio Acuña Peralta

	 226,154
	 Crestón
	 Emilio Acuña Peralta

 

 

 IX.  
 Considering that the registry of Title holding of any mining concession requires to   be duly subscribed before the General Directory of Mines with the purpose of it   being certain and judicially public under the terms of the current and applicable   legislation, and in view that to date the SELLER cannot be considered a formal and   public Title holder of the 7 (seven) described concessions in the foregoing numeral,   independently that he may in the future manage to carry out the required paper   work, PARTIES have decided to withdraw them from the object of this   CONTRACT and of the AGREEMENT, with the purpose of restructuring in   conformity the manner in which in the future it may be managed to transmit the   Title holding of the rights mentioned in favor of the BUYERS, consequently   reducing the price to be paid by the transfer of only the property of the   INVENTORY and the Title holding of the lot named “Dos Amigos”, and;
 

 X. 
 As per the above, PARTIES have decided to subscribe this present agreement with   the purpose of modifying the CONTRACT’S content and of the AGREEMENT’S   in second opportunity for all the legal effects there might be.
 

 

 DECLARATIONS
 

  I. The SELLER declares through the offices of his legal representative and under oath of stating the truth, that:
 

 1. 
 It is a Mexican mercantile society, specifically a Stock Company with Varying 
 Amount of Capital, established and operating in conformity with the current and   applicable legislation of the United States of Mexico, as recorded in Public Writ   number 5,979, granted on the 23rd November 1984 before Mr. José Antonio   Lascurain y Osío, Attorney at Law, and at that time Notary Public number 21 of the   Morelos Judicial District, state of Chihuahua, and instrument that was duly   inscribed in the Public Registry of Property and Commerce, under number 105, in   Folio 27 of Book 379 of the Section of Commerce, dated 18th February 1985, and 
 

 3
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 
 reason by which it is endowed with the necessary and sufficient personality to 
 intervene in this present judicial act;
 

 2. 
 He enjoys the faculties, powers and necessary and sufficient mandates in order to   subscribe this present agreement as recorded in the described instrument of   immediately previous numeral, as well as in other corporate documents of the   society, same that have not been restrained, limited, suspended or revoked to date,   and thus is in the capacity to subscribe this agreement;
 

 3. 
 It is duly inscribed in the Federal Taxpayers Registry, and current to date in its 
 income tax obligations and other contributions that have corresponded to it;
 

 4. 
 It is his free will to subscribe this present document with the purpose of modifying   the terms of the CONTRACT and the AGREEMENT, in consent with the   BUYERS, and Mr. Carlos Arnold Acuña Aranda appearing as arranged in the   following clause.
 

 II. CORPORACIÓN AMERMIN, S.A. DE C. V., through the offices of its legal representative and under oath of stating the truth, declares, that:
 

 1. 
 It is Mexican mercantile society, specifically a Stock Company with Varying 
 Amount of Capital, duly established and operating as recorded in Public Writ   number 9,311, granted on the 9th August 2005, before the witness of Mr. José Miller   Hermosillo, Attorney at Law and Notary Public number 2 of the Morelos Judicial   District, state of Chihuahua, and instrument that was duly inscribed in the Public   Registry of Property and Commerce under mercantile electronic folio number   21164*10, and reason by which it enjoys the sufficient and necessary capacity to   intervene in this present judicial act;
 

 2. 
 It enjoys the faculties, powers and sufficient and necessary mandates to subscribe   this present agreement, as recorded in the instrument described in the immediately   previous numeral, and same that have not been limited, restrained, suspended or   otherwise revoked, and thus is in the capacity to subscribe this agreement;
 

 3. 
 It is duly inscribed in the Federal Taxpayers Registry and current to date in its 
 income tax payments and other contributions that have corresponded to it to date;
 

 4. 
 It is the wish of its corporation board to subscribe this present agreement with the   purpose of modifying the terms of the CONTRACT and of the AGREEMENT in   consent with the SELLER and Mr. Carlos Arnold Acuña Aranda appearing as   arranged in the following clause.
 

 

 III. Mr. RAMIRO TREVIZO LEDEZMA, per his right and under oath of stating the truth, declares, that:
 

 

 4
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 
 1. 
 He is a Mexican citizen, of age, in complete use of his physical and mental faculties   reason by which he enjoys the personality and sufficient and necessary capacity to   subscribe this present agreement;
 

 2. 
 To be duly inscribed in the Federal Taxpayers Registry and being to date current in   his income tax payments and other contributions that have corresponded to him to   date, and;
 

 3. 
 It is his free will to subscribe this present document with the purpose of modifying   the terms of the CONTRACT and of the AGREEMENT, in consent with the   SELLER and Mr. Carlos Arnold Acuña Aranda appearing as arranged in the   following clause.
 

 IV. CARLOS ARNOLD ACUÑA ARANDA, per his own right and under oath of stating the truth, declares, that:
 

 1. 
 He is a Mexican citizen, of age, in complete use of his physical and mental faculties   reason by which he enjoys the personality and sufficient and necessary capacity to   subscribe this present agreement;
 

 2. 
 To be duly inscribed in the Federal Taxpayers Registry and being to date current in   his income tax payments and other contributions that have corresponded to him to   date, and;
 

 3. 
 It is his free will to subscribe this present document with the purpose of modifying   the terms of the CONTRACT and of the AGREEMENT, as arranged in the   following clause
 

 

 V. Both PARTIES, per their own right or through the offices of their legal representatives, as be the case, under oath of stating the truth, they appear to the subscription of this present agreement being free of deceit, ill faith, error, harm or violence with the purpose of committing themselves in accordance to the following:
 

 

 CLAUSES
 

 FIRST. MODIFICATION: PARTIES expressly agree that with Mr. Carlos Arnold Acuña Aranda’s full consent and being in effect as of the date of this present instrument, the AGREEMENT’S Declarations and Clauses be modified as indicated following, conventions that will have an effect upon the CONTRACT correspondingly in order to be drawn up as follows;
 

 “B) The SELLER declares”.
 

 1. To a society (...).
 

 

 5
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 2. That its legal representative (...).
 

 3. That he is Title holder of the mining concessions detailed following and that are located in the Municipality of Bacoachi, Sonora, hereinafter named as the LOT:
 

 	 	 	 	
	 NAME OF LOT
	 TITLE
	 TYPE
	 SURFACE

	 Dos Amigos
	 222,511
	 Exploitation
	 24.4306 hectares

  

 4. That the mining concessions (...).
 

 5. That he has celebrated (...).
 

 6. That within his assets (...).
 

 7. The SELLER declares that a majority of his equipment and machinery mentioned in Attachment “A”, is installed within a premise approximately of 10 hectares in surface located 10 meters off the road from Cananea-Bacoachi and 2 kilometers distant from this latter town, in the state of Sonora. Such premise belongs by the common land owners of Bacoachi. The SELLER has an agreement with these people for the use of the land for a time term of 15 (fifteen) years. To date and already paid for in advance 8 (eight) years are already covered and a 7 (seven) years debt is still pending, an amount that must be paid in advance, a sum total of $70,000,00 Mexican Pesos (Seventy thousand Mexican Pesos 00/100).
 

 8. The SELLER declares that it his wish to sell precisely to the PURCHASER the list of assets and inventory of equipment and machinery indicated in Attachment “A”, as well as the rights derived from the mining lots referred to in Declaration B), numeral 3 of this present agreement.
 

 9. That to this date he has celebrated a contract for the supply of materials taken out from THE LOTS with Mexicana de Cobre, S.A. de C.V., by virtue of which there is a labor and production relationship, same that Mexicana de Cobre, S.A. de C.V., liquidates with a tardiness of approximately 90 (ninety) natural days against invoice presentation meeting all fiscal requirements.
 

 (...)
 

 CLAUSES
 

 

 THIRD: The price agreed upon by the parties for the list of assets and equipment inventory as indicated in attachment A, as well as the rights of the mining lots referred to in declaration B), numeral 3 of this present agreement, is for the amount of $869,565.21 Dollars (Eight hundred sixty nine thousand and five hundred sixty five Dollars 21/100 in legal tender of the United States of America), plus the corresponding Added Value Tax, that is, a sum total of ($1’000,000.00 Dollars (One million Dollars in legal tender of the 
 

 6
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 United States of America), amount that must be covered by the PURCHASER in the manner, terms and schedule consented to in this present agreement.
 

 FOURTH:  Both parties expressly agree that the PURCHASER will pay to the SELLER on the date of signature of this present agreement as an advance or down payment the amount of $382,142.86 Dollars (Three hundred eighty two thousand and one hundred forty two Dollars 86/100 in legal tender of the United States of America), Added Value Tax already included, or its equivalent in Mexican Pesos at the rate of exchange published by the Bank of Mexico in the Official Federal Diary on the immediately first able day before the date of payment, same amount that will be deducted of the price agreed upon by the parties referred to in foregoing Clause. The amount mentioned in this Clause as down payment or advance, the SELLER acknowledges that he has already received, on the 21st July 2006, the amount of $50,000.00 Dollars (Fifty thousand Dollars 00/100 in legal tender of the United States of America), the Added Value Tax already included, and same that delivered by the PURCHASER as a token of a deal, there still pending per this down payment or advance concept the amount of $332,142.86 Dollars (Three hundred thirty two thousand and one hundred forty two Dollars 86/100 in legal tender of the United States of America), Added Value Tax already included.
 

 FIFTH: The PURCHASER, by virtue of this present agreement commits himself to pay to the SELLER the remaining balance, an amount of $617,957.14 Dollars (Six hundred seventeen thousand and eight hundred fifty seven Dollars 147/100 in legal tender of the United States of America), Added Value Tax already included, accordingly to the following schedule of payments:
 

 1. On the 30th November 2006 the amount of $100,000.00 Dollars (One hundred thousand Dollars 00/100 in legal tender of the United States of America), Added Value Tax already included, or its equivalent in Mexican Pesos at the rate of exchange published by the Bank of Mexico in the Official Federal Diary on the immediate able day before date of payment.
 

 2. On the 28th February 2007 the amount of $382,142.86 Dollars (Three hundred eighty two thousand and one hundred forty two Dollars 86/100 in legal tender of the United States of America), Added Value Tax already included, or its equivalent in Mexican Pesos at the rate of exchange published by the Bank of Mexico in the Official Federal Diary on the immediate able day before date of payment.
 

 3. On the 31st August 2007, the remaining balance of the price agreed on, that is, the amount of $135,714.28 Dollars (one hundred thirty five thousand and seven hundred fourteen Dollars 28/100 in legal tender of the United States of America), Added Value Tax already included, or its equivalent in Mexican Pesos at the rate of exchange published by the Bank of Mexico in the Official Federal Diary on the immediate able day before date of payment.
 

 SEVENTH: Both parties agree that in order to guarantee payment of $617,857.14 Dollars (Six hundred seventeen thousand and eight hundred fifty seven Dollars 14/100 Dollars in legal tender of the United States of America), referred to in the foregoing Fifth Clause, 
 

 7
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 the PURCHASER will grant before Notary Public within the next few days in favor of the SELLER or to whomever this latter designates, a General Power for Litigation and Collection, Acts of Administration and Dominion, irrevocable in character but limited to the object of this contract, and whose execution will be conditioned in a suspensive manner to the non compliance by the PURCHASER to any of the payment obligations that he assumes by virtue of the subscription of this present contract.
 

 (...)
 

 SECOND. SUBSISTENCE OF THE CONTRACT: PARTIES expressly agree that the modifications agreed upon in the foregoing Clause will in any way affect the validity, terms, conditions and execution of the rest of the clauses of the AGREEMENT or of the CONTRACT.
 

 THIRD. CONFIDENTIALITY: PARTIES expressly agree to keep the totality of past, present and future information in a confidential character related to this present instrument, and extending same obligation to whomever it be disclosed to, be it a corporation or an individual.
 

 The PARTY recipient of confidential information must limit access to same to its representatives or employees who, by a justifiable or reasonable cause, should request access to said information. In such cases, PARTIES must extend same obligation of confidentiality to the subjects to whom the information is disclosed to.
 

 For purposes of this present clause, the following will not be considered confidential information: 1. Information legitimately known and obtained by the recipient PARTY prior to the subscription of this agreement; 2. Information that to date or in a future date will considered as public domain, if and ever such consideration did not derive from the non compliance by one of the PARTIES to the stipulations set in this clause, or; 3) Information that must be disclosed to per law by an administrative or judicial mandate issued by competent authorities, including those concerned with the principle of transparency in the Stock Exchange media, both in the United States of Mexico and abroad.
 

 PARTIES agree that the current status of the contracted obligations by virtue of this present clause will subsist indefinitely, even after the expiration of the duration of this present instrument. 
 

 In case of a non compliance, PARTIES reserve to themselves the actions that per Law correspond to them, both administratively and judicially, in order to claim indemnity because of damages and harms done, as well as the application of other sanctions that may correspond.
 

 FOURTH. CONTACT ADDRESSES: PARTIES agree that for anything referring to the execution and compliance of the terms and conditions of this present instrument, as well as to present announcements, notifications and other communications related to same, state their permanent addresses to be:
 

 

 8
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 
 The SELLER
 The PURCHASERS
 

 Av. Independencia 3010
 Calle Ramón Domínguez 200
 Col. Santa Rosa
 Colonia Deportistas
 Ciudad de Chihuahua
 C.P. 31125 Cd. De Chihuahua
 Estado de Chihuahua, México
 Estado de Chihuahua, México
 

 In case of change of address, PARTIES agree in notifying their counterparts of such an event at least 5 (five) natural days prior to the date of the effective change of address. Not complying to this obligation will mean that the announcements, notifications and communications delivered at the original address of the PARTY moving out, will bear all the legal effects in favor of the PARTY that was not notified in all opportunity, as of the date of delivery and for as long as the non compliance continues.
 

 FIFTH. PERSONS TO BE IN CONTACT: PARTIES agree that the whole of announcements, notifications and communication necessary to be made known to the other and derived from the terms and conditions of this present instrument, must be addressed indistinctly to the following persons:
 

 The SELLER
 The PURCHASERS
 

 EMILIO ACUÑA PERALTA
 RAMIRO TREVIZO LEDEZMA
 

 In case it be their will to change the contact persons, PARTIES agree in notifying their counterpart of such a circumstance at least 5 (five) natural days in advance of the date in which the change takes effect. Not complying to this indicated obligation will mean that announcements, notifications and communications sent and delivered to the name of the original addressees of the PARTY making the change, will bear all legal effects in favor of the PARTY that was not opportunely notified, as of the date of delivery and for as long as the non compliance continues.
 

 SIXTH. TOTALITY OF THE CONTRACT: PARTIES accept that this present agreement, including the CONTRACT and the AGREEMENT, as well as their attachments and integral portions, contain the totality of the agreements between them regarding its object, and will subsist in everything that is not opposition, thus leaving without effect and canceling all agreements, reports, negotiations, correspondence, compromises and communication taken place previously between them, either in writing or verbal.
 

 SEVENTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in accordance to the current and applicable legal dispositions in the United States of Mexico, among which are included the Mining Law, its Ruling, the Code of Commerce and the Federal Civil Code.
 

 EIGHTH. JURISDICTION: PARTIES agree to submit any controversy arising regarding the interpretation and execution of this present agreement to the jurisdiction of the competent Courts of Law of the Morelos Judicial District in the city of Chihuahua, state 
 

 9
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.
 

 
 of Chihuahua, renouncing as of this moment to any other jurisdictional privilege that might correspond to them either by reason of their present or future addresses, or by whatever other circumstance. 
 

 BOTH PARTIES IN THE KNOWLEDGE OF THE CONTENT AND LEGAL REACH OF THIS PRESENT INSTRUMENT; THEY SIGN IT IN CONSENT, HAVING GATHERED AT THE CITY OF CHIHUAHUA, STATE OF CHIHUAHUA, ON THE THIRTIETH OCTOBER TWO THOUSAND AND SIX.
 

 

 THE SELLER
 THE PURCHASERS
 

        Signed
 Signed
 

 

 COMPAÑÍA MINERA LA ESCUADRA
 RAMIRO TREVIZO LEDEZMA
 S.A. DE C.V.
 Per his own right 
 Represented in this act by:
 and representing:
 EMILIO ACUÑA PERALTA
            CORPORACIÓN AMERMIN
 S.A. DE C.V.
 

 

 

 Signed
 

 

 CARLOS ARNOLD ACUÑA ARANDA
 Per his own right and creditor of:
 COMPAÑÍA MINERA LA ESCUADRA
 S.A. DE C.V.
 

 

 

 PS: Follow two blank pages indicating in heading “Attachment I – Ordinary copy of CONTRACT”. And Attachment II – Ordinary copy of AGREEMENT.
 

 

 

 ###
 

 10
 Second Modifying Agreement subscribed on the 30th October 2006 between Minera La Escuadra, S.A. de C.V., on one part, and Corporación Amermin, S.A. de C.V. , and Ramiro Trevizo Ledezma, on the other part.SURRENDER OF MINING RIGHTS CONTRACT CELEBRATED BY A) EMILIO ACUÑA PERALTA, PER HIS OWN RIGHT (THE

“TRANSFEROR”) AND BY B) CORPORACIÓN AMERMIN, S    SURRENDER OF MINING RIGHTS CONTRACT CELEBRATED BY A) EMILIO ACUÑA PERALTA, PER HIS OWN RIGHT (THE “TRANSFEROR”) AND BY B) CORPORACIÓN AMERMIN, S.A. DE C.V., REPRESENTED IN THIS ACT BY RAMIRO TREVIZO LEDEZMA IN HIS PERSONALITY AS ITS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE, AS WELL AS RAMIRO TREVIZO LEDEZMA ACTING IN HIS OWN BEHALF (THE “TRANSFEREES”), JOINTLY NAMED AS THE “PARTIES”, IN ACCORDANCE WITH THE FOLLOWING DECLARATIONS AND CLAUSES:
 

 

 DECLARATIONS
 

 

 I.
 The TRANSFEROR declares per his own right and under oath of stating the 
 truth:
 

 1. To be a Mexican citizen, of age, in complete possession of his physical and 
 mental faculties and on account of which he is endowed with the necessary   and sufficient personality and capacity to appear and subscribe this present   agreement;
 

 2. To be duly inscribed in the Federal Taxpayers Registry and current to date in 
 his income tax payments and other contributions that might have corresponded   to him to date;
 

 3.  To be as of date the only and exclusive title holder of the rights derived from 
 the 6 (six) mining concessions that are described following (the   (“CONCESSIONS”);
 

 

 	 	
	 Title
	 Name of Lot:

	 161,838
	 El Picacho

	 222,925
	 Picacho I

	 214,776
	 Mis Recuerdos

	 218,818
	 Picacho II

	 222,789
	 Picacho II

	 226,154
	 Crestón

 

 

 4. Within the perimeters of the mining lot named “El Picacho” there are 20,000 
 tons of earth dumps property of Mr. C. B. Johnson who, as result of a previous   sales-purchase acquired stated dumps and reason by which these do not enter as   part of the object of this present contract;
 

 5. The CONCESSIONS are free of any encumbrance, appropriation and 
 domain limitation and are current regarding compliance to the obligations that   upon this kind of administration authorizations are stated in the Mining Law and   its Ruling, and;
 

 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
 1
 

 
 
 6. It is his free will to surrender in favor of the TRANSFEREES the rights 
 related to the CONCESSIONS, caring in every instance to the terms and   conditions of this present contract.
 

 II. 
 CORPORACIÓN AMERMIN, S.A. DE C.V., through the offices of its legal 
 representative and under oath of stating the truth, declares:
 

 1. To be a Mexican mercantile society, specifically a Stock Company with 
 Varying Amount of Capital, duly established and operating as per Public Writ   number 9,311 granted on the 9th August 1995 per testimony of Mr. José R.   Miller Hermosillo, Attorney at Law and Notary Public number 2 for the Morelos   Judicial District of the State of Chihuahua, instrument that was properly   inscribed in the Public Records of Property and Commerce under mercantile   electronic folio number 21164*10, reason by which he has the necessary and   sufficient personality to intervene in this present judicial act;
 

 2. To be endowed with the faculties, power and necessary as sufficient 
 mandates to subscribe this present agreement as attested in the instrument   described in the immediately above numeral, and same that have not been   limited, restrained, suspended or revoked to date, and thus enjoys the capacity to   subscribe this agreement;
 

 3. To be duly inscribed in the Federal Taxpayers Registry and to be current to 
 date in its income tax payments and other contributions that might have   corresponded to it to date, and;
 

 4. To be the will of its Administrations Board to subscribe this present 
 agreement with the purpose that it be ceded to it 97% (ninety seven per cent) of   the rights derived from the CONCESSIONS, caring in every instance to the   terms and conditions of this instrument.
 

 III. 
 RAMIRO TREVIZO LEDEZMA per his own right and under oath of stating 
 the truth declares:
 

 1. To be a Mexican citizen, of age, in complete possession of his mental and 
 physical faculties, reason by which he enjoys the personality, the sufficient and   necessary capacity to subscribe this present agreement;
 

 2. To be duly inscribed in the Federal Taxpayers Registry and to be current to 
 date in his income tax payments and other contributions that might have   corresponded to him to date, and;
 

 3. To be his free will to subscribe this present agreement with the purpose that it 
 be ceded to him 3% (three per cent) of the rights derived from the   CONCESSIONS, caring in every instance to the terms and conditions of this   instrument.
 

 IV.
 Both PARTIES declare per their own right or through the offices of their legal 
 representatives as might correspond, and under oath of stating the truth that they   assist to the subscriptions of this present document in good faith, free of deceit, 
 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 error or violence and whatever other vitiations in their consent with the purpose 
 of committing themselves to the following:
 

 

 CLAUSES
 

 

 FIRST. OBJECT: By virtue of the subscription of this present contract, the TRANSFEROR cedes onerously and definitely in favor of the TRANSFEREES, and in the percentages that have been established in previous Declarations, the mining rights declared in conjunction with the CONCESSIONS, and receiving in exchange as counter benefit the ascertained and determined price as will be described in the clauses indicated farther below.
 

 SECOND. PRICE: As a counter benefit for the described cession, the TRANSFEREES commit themselves to pay in favor of the TRANSFEROR the amount of $5’630,434.78 Dollars (Five million six hundred thirty thousand four hundred and thirty four 78/100 in legal tender of the United States of America), plus the corresponding Added Value Tax, that is, the amount of $844,565.21 Dollars (Eight hundred forty four thousand five hundred and sixty five 21/100 Dollars in legal tender of the United States of America, a total amount of $6’475,000.00 Dollars (Six million four hundred seventy five thousand Dollars 00/100 in legal tender of the United States of America) (the (“PRICE”) caring in every instance to the terms and conditions agreed upon in this instrument.
 

 THIRD. MANNER, TIME AND PLACE OF PAYMENT: Both PARTIES agree that the TRANSFEREES will pay the PRICE in favor of the TRANSFEROR in compliance to the following schedule of partial payments:
 

 

 1.
 On the 31st August 2007, the amount of $110,559.01 Dollars (One hundred 
 and ten thousand five hundred and fifty nine 78/100 Dollars, current tender   of the   United States of America),  plus the corresponding Value Added Tax,   an amount total of $127,142.86 Dollars (One hundred and twenty seven   thousand one hundred and forty two 86/100 Dollars, current tender of the   United States of America);
 

 2. 
 On the 31st January 2008, the amount of $321,428.57 Dollars (Three hundred 
 twenty one thousand and four hundred and twenty eight 57/100 Dollars,   legal   tender of the United States of America), plus the corresponding Added   Value   Tax, an amount total of $369,642.85 (Three hundred and sixty nine   thousand six   hundred and forty two 85/100 Dollars, legal tender of the   United States of America);
 

 3. 
 On the 30th June 2008, the amount of $414,285.71 Dollars (Four hundred 
 fourteen thousand and two hundred eighty five 71/100 Dollars, legal tender   of the United States of America), plus the corresponding Added Value Tax,   an amount total of $476,428.56 Dollars (Four hundred seventy six thousand   and four hundred and twenty eight 56/100 Dollars, legal tender of the   United States of America);
 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 4. 
 On the 30th November 2008, the amount of $414,285.71 Dollars (Four hundred 
 fourteen thousand and two hundred eighty five 71/100 Dollars, legal tender   of the United States of America), plus the corresponding Added Value Tax,   an amount total of $476,428.56 Dollars (Four hundred seventy six thousand   and four hundred and twenty eight 56/100 Dollars, legal tender of the   United States of America);
 

 5.
 On the 30th April 2009, the amount of $600,000.00 Dollars (Six hundred 
 thousand Dollars 00/100, legal tender of the United States of America), plus   the corresponding Value Added Tax, an amount total of $690,000.00 Dollars   (Six hundred ninety thousand 00/100 Dollars, legal tender of the United   States of America);
 

 6. 
 On the 30th September 2009, the amount of $600,000.00 Dollars (Six hundred 
 thousand Dollars 00/100, legal tender of the United States of America), plus   the corresponding Value Added Tax, an amount total of $690,000.00 Dollars   (Six hundred ninety thousand 00/100 Dollars, legal tender of the United   States of America);
 

 7. 
 On the 28th February 2010, the amount of $692,857.14 Dollars (Six hundred 
 ninety two thousand and eight hundred and fifty seven 14/100 Dollars, legal   tender of the United States of America), plus the corresponding Added Value   Tax, an amount total of $796,785.71 Dollars (Seven hundred ninety six   thousand and seven hundred and eighty five 71/100 Dollars, legal tender of   the United States of America);
 

 8. 
 On the 31st August 2010, the amount of $692,857.14 Dollars (Six hundred 
 ninety two thousand and eight hundred and fifty seven 14/100 Dollars, legal   tender of the United States of America), plus the corresponding Added Value   Tax, an amount total of $796,785.71 Dollars (Seven hundred ninety six   thousand and seven hundred and eighty five 71/100 Dollars, legal tender of   the United States of America);
 

 9. 
 On the 28th February 2011, the amount of $835,714.29 Dollars, (Eight hundred 
 thirty five thousand and seven hundred and fourteen 29/100 Dollars, legal   tender of the United States of America), plus the corresponding Added Value   Tax, an amount total of $961,071.43 Dollars (Nine hundred sixty one   thousand and seventy one 43/100 Dollars, legal tender of the United States   of America);
 

 10.
 The balance payment on the PRICE, that is, the amount of (948,447.23 Dollars 
 (Nine hundred forty eight and four hundred and forty seven 23/100 Dollars,   legal tender of the United States of America), plus the corresponding Added   Value Tax, an amount total of $1’090,714.32 Dollars, (One million ninety   thousand and seven hundred and fourteen 32/100 Dollars, legal tender of   the United States of America), on the 31st August 2011.
 

 

 

 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 Regardless of the established terms, the TRANSFEROR expressly grants in favor of the TRANSFEREE a term of grace of thirty (30) natural days as of the dates the partial payments come due in order that the latter may comply.
 

 The PARTIES agree that advanced payments can be effected or advanced to the stipulated payments, in the understanding that same can be deducted beginning as of the payment due on 30th April 2009 and subsequent ones, if and ever the deduction does not exceed 50% (fifty per cent) of the amount of the partial payment to be paid. Any pending balance in favor of the TRANSFEREE as of the date due of the last partial payment, will made up against this last one.
 

 Payments described must be done through the writing out of nominal checks or an electronic transfer of funds into the account that for such a purpose be determined.
 

 FOURTH. GUARANTEE: With the purpose of guaranteeing compliance to the payment obligations agreed upon in this present contract, the TRANSFEREES constitute, signal and grant as guarantee in favor of the TRANSFEROR, the totality of the rights derived from the CONCESSIONS, as well as the mining concessions that corresponds to the Lot named “UNIFICACIÓN REY DE ORO”, protected by title number 206,327, and granted for the purpose of exploitation and covering a surface of 495.3291 Hectares in the understanding that, in the event the TANSFEREES incur in a non payment regarding the obligations consigned in this instrument, such rights will be returned or restituted in favor of the TRANSFEROR, free of any lien, burden or limitation of domain.
 

 To such an effect, the TRANSFEREES will grant during the next coming days and before Notary Public in favor of the TRANSFEROR, or of the persons that to such an effect this latter names, the faculties, powers and/or mandates required but limited to the reach of the object of this present contract, and whose execution will be conditioned in a suspensive manner to the non compliance by the TRANSFEREES to any of the payment obligations they assume by virtue of subscribing this instrument.
 

 Consequently, during the current status of this present contract, the TANSFEREES commit themselves expressly not to lien, cede or transmit in any way whatsoever the rights derived from the CONCESSIONS without previously obtaining the written authorizations from the TRANSFEROR.
 

 FIFTH. ADMINISTRATIVE OBLIGATIONS: The TRANSFEREES commit themselves expressly to keep the CONCESSIONS current complying to such an effect with all the paper work involved and payments that eventually must be met in agreement to the current and applicable legislations.
 

 SIXTH. FORMALIZING THE SURRENDER OF RIGHTS: PARTIES oblige themselves to ratify before Notary Public or Public Broker this present document as soon as possible, with the purpose that same be inscribed in General Directory of Mines, a dependence of the Secretary of the Economy, as well as for the purpose of proceeding to whatever other administrative paper work required in agreement to the current and applicable legislation. The totality of the expenses related to the compliance of this present clause will be paid by the TRANSFEREES.
 

 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 SEVENTH. PROOF OF PAYMENT: Against payment of the whole of the obligations in the TRANSFEREE’S responsibility in conformity to this present contract, the TRANSFEROR commit himself to issue and deliver, within the following 5 (five) natural days of the effective date of respective payment, a voucher containing the requirements imposed by the current and applicable legislation and that moment.
 

 EIGHTH. CONFIDENTIALITY: PARTIES expressly commit themselves to keep the totality of past, present and future information related to this instrument confidential in character and conveying upon it the same condition on being disclosed to any physical or moral entity.
 

 The PARTY recipient of confidential information must limit access to it to its representatives and employees who, under a justifiable and reasonable cause, may request access to such information. In such cases, PARTIES must commit any individual to whom confidential information is disclosed to, to maintain to themselves the confidential information in question.
 

 For the purposes of this present clause, the following will not be considered confidential: 1. Information that might have been legitimately known and obtained by the recipient PARTY previously to the subscription of this instrument; 2. Information that to date or in the future might be considered as public domain, if and ever such consideration does not stem from an incompliance by any of the PARTIES to the stipulation set in this clause, or; 3. Information that must be disclosed to per law or per an administrative or judicial mandate and issued by competent authorities, including those of the Stock Exchange media.
 

 PARTIES agree that the duration of the contracted obligations by virtue of this present clause will subsist indefinitely, even after the duration of this present instrument is terminated.
 

 In the event of not complying, PARTIES expressly reserve to themselves to take action per law as may correspond to them, either administrative or judicial, in order to claim indemnity because of damages and harms caused, as well as to apply any sanctions called for.
 

 NINTH. DURATION AND ADVANCED TERMINATION: This present contract will have a duration covering the period between the 5th January 2007 and the 31st August 2011, dateline for the payment of the remaining balance of the PRICE in favor of the TRANSFEROR by part of the TRANSFEREES.
 

 None of the PARTIES will be able to terminate this present instrument in advance except in the case that the Terminating Agreement be subscribe between them in common agreement.
 

 TENTH. NON COMPLIANCE AND TERMINATION: PARTIES agree that in case one of them does not comply to any of the obligations assumed per virtue of the of the subscription of this present instrument, these latter will have the right to demand compulsory compliance to the obligation evaded, per one side, or the termination of this present contract, both PARTIES including themselves expressly as of this moment that as a Conventional Penalty in the event of non compliance, the surrender of the mining 
 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 concession of the Lot named “Unificación Rey de Oro”, protected by title number 206,327, on exploitation and covering a surface of 495.3292 Hectares.
 

 PARTIES expressly agree that, in case this present contract may not be fully carried out by causes imputable to the TRANSFEREES, or by force majeur, accidental occurrence or by a reason of Nature or through expressed cancellation or termination of the contract under the terms of the Ninth Clause, all payments already honored in favor of the TRANSFEROR to such a date, will remain in favor of this latter.
 

 The cancellation of this contract by the set forth reasons will not free any of the PARTIES to comply with the obligation that should be carried out previously to the date of the actual cancellation.
 

 ELEVENTH. SEPARATE ENTITIES: None of the terms and conditions of this present instrument must interpreted in the sense that the PARTIES have established some kind of relation or association, reason by which they are not considered jointly, and their assets are not merged for fiscal responsibilities purposes or before third parties, and by any other nature.
 

 TWELFTH. FISCAL OBLIGATIONS: Once recorded and inscribed in the Federal Taxpayers Registry, as well as being current in income tax payments and other contributions that might have corresponded to date, PARTIES agree that each will honor in separate taxes that correspond to them individually due to the compliance with the terms and conditions of this present instrument, as per the current and applicable fiscal legislation, and each committing itself to leave the other in safety regarding any fiscal obligation that might be imputable to it in contravention to this Clause by the competent authorities. 
 

 THIRTEENTH. LABOR RELATIONS: In order to comply with the obligations that each of the PARTIES contracts by virtue of the subscription of this contract, both state that they will act as moral and totally separated entities from each other, reason by which under no circumstance it should be understood that there exists a labor condition between them, thus disregarding the possibility of enforcing the applicable and current labor and social security legislation. Consequently, PARTIES under no supposition shall hire employees or workers in the name or representation of their counterpart.
 

 Regarding their own workers and employees, PARTIES state that there is no labor relation at all between the workers and employees of the TRANSFEROR with the TRANSFEREES, and none whatsoever of this latter with the former. Thus, PARTIES state being the employers of their own workers and employees complying to the current and applicable social security and labor legislations, and being the sole and exclusive responsible entities regarding labor and social security relations that should be complied with in favor of said subjects.
 

 Consequently, PARTIES commit themselves to keep in safety their counterparts from any labor and social security responsibility that might be imputable to them in contravention to this Clause in relation to their own workers and employees as concerns the current and applicable labor and social security legislations.
 

 

 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 FOURTEENTH. CONTACT ADDRESSES AND TELEPHONES: PARTIES agree that anything referring to the execution and compliance to the terms and conditions of this present instrument, as well as to deliver notices, notifications and other communications related to same, they state their contact addresses and telephones to be the following:
 

 TRANSFEROR
 TRANSFEREES
            Av. Independencia 3010                    
 Calle Ramón Domínguez 202
           
 Colonia Santa Rosa                     
 Colonia Deportistas
 Ciudad de Chihuahua
 C.P. 311125 Ciudad de Chihuahua
 Estado de Chihuahua
 Estado de Chihuahua, México
 

 In case of change of address, PARTIES agree in notifying their counterparts of such circumstance at least 5 (five) natural days in advance to the date of the actual change of address.
 

 FIFTEENTH. NOTICES, NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcements, notifications or communications required to be given to their counterpart, must be done in writing.
 

 Sending of such documents should be carried out through two means: 1. By ordinary courier delivered in hand or by certified mail, both with receipt acknowledgement, or; 2. By electronic mail. In this latter case, remittance will be considered valid and legally delivered only when reception of the given electronic mail is likewise confirmed electronically within 3 (three) natural days after remittance, be it automatically through a software means, or by an expressed means, through an answering service and confirmation returned by consignee.
 

 PARTIES agree likewise that notices, notifications and communication carried out in relation with this present instrument will bear their respective effects on the day of their reception. In the event that such notices bear some kind of a dateline, it will begin to be in effect on the following day in which its reception is confirmed independently if it is a labor or natural day.
 

 SIXTEENTH. PERSONS TO CONTACT: PARTIES agree that the totality of notices, notifications and communications necessary to be given to the other derived from the terms and conditions of this present instrument, must be remitted indistinctly to the following persons:
 

 TRANSFEROR
 TRANSFEREES
 

 

 EMILIO ACUÑA PERALTA
 RAMIRO TREVIZO LEDEZMA
 

 In the event it is their will to switch the contact persons, PARTIES agree in notifying their counterpart of such a circumstance at least 5 (five) natural days in advance of the actual date of the switch of persons. Not complying to this described obligation will imply that notices, notifications or communications sent and delivered in the name of the original consignees of the PARTY making the change, will bear all legal effects in 
 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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 favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long the non compliance subsists.
 

 SEVENTEENTH. CONTRACT’S TOTALITY: PARTIES accept that this present agreement contains the totality of the agreements between them regarding the object, and thus leaving without effect and cancelling the whole of agreements, reports, negotiations, correspondence, compromises and communications carried out beforehand between them, having these been related either in writing or orally.
 

 EIGHTEENTH. MODIFICATIONS: The terms and conditions of this present instrument can only be modified by virtue of the subscription of modifying agreements between the PARTIES. To such agreements must be added, as annexes, ordinary copy of this contract and searching for a clear interpretation of the terms and conditions that both PARTIES might have agreed on.
 

 NINETEENTH. APPLICABLE LAW: This present instrument will be ruled and interpreted in accordance to the Mining Law, its Ruling and the Federal Civil Code among other current and applicable legal dispositions in the United States of Mexico.
 

 TWENTIETH. JURISDICTION: In the event that controversies may arise related to the validity, intention, interpretation, execution or compliance of this contract, PARTIES expressly agree to submit same before the competent Law Courts of the Morelos Judicial District of the State of Chihuahua, thus renouncing to any other jurisdiction, privilege that might correspond them by reason of their present or future domiciles, or by any other circumstance.
 

 

 BOTH PARTIES IN THE KNOWLEDGE OF THE FORCE AND LEGAL REACH OF THIS PRESENT CONTRACT, THEY SUBSCRIBE IT BEING TOGETHER IN THE CITY OF CHIHUAHUA, ON THE FIFTH JANUARY 2007.
 

 

 TRANSFEROR
 TRANSFEREE
 

 Signed
 Signed
 

 

 EMILIO ACUÑA PERALTA
 RAMIRO TREVIZO LEDEZMA
 PER HIS OWN EIGHT
 PER HIS OWN RIGHT AND
 REPRESENTING 
                                                      CORPORACIÓN AMERMIN,  S.A. DE C.V.
 

 

 

 ###
 

 Surrender of mining rights contract subscribed on the 5th January 2007 between Emilio Acuña Peralta as one party and Corporación Amermin, S.A. de C.V., and Ramiro Trevizo Ledezma as second party.
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