Document:

Exhibit 10.1

                               SEVERANCE AGREEMENT

         This Severance  Agreement (the "Agreement") is dated November 17, 2004.
This Agreement is made as a mutually agreed compromise among the parties for the
complete and final settlement of all claims, differences,  and alleged causes of
action existing between them as of the date of this Agreement.

                                     PARTIES

         The Parties to this Agreement are Mission  Resources  Corporation  (the
"Company") and Joseph G. Nicknish ("Executive"). The Company and Executive are
referred to collectively as the "Parties."

                                    PREAMBLE

         WHEREAS, Executive was previously employed as the Senior Vice President
- Operations and Engineering of the Company, pursuant to an Employment Agreement
dated November 6, 2002, as amended (the "Employment Agreement");

         WHEREAS,  Executive's last day of employment as Senior Vice President -
Operations and Engineering of the Company  pursuant to the Employment  Agreement
shall be November 17, 2004 (the "Resignation Date");

         WHEREAS, the Parties intend that this Agreement shall govern all issues
related to Executive's employment and separation from the Company;

         WHEREAS,  the Company has advised  Executive in writing to consult with
independent counsel respecting this Agreement;

         WHEREAS,  Executive has had an opportunity to consult with  independent
counsel  with  respect  to the  terms,  meaning  and  effect of this  Agreement,
including but not limited to, the release of all claims in Section 6 hereof;

         WHEREAS,  Executive  understands  that the  Company  regards  the above
representations   as  material   and  that  the  Company  is  relying  on  these
representations in entering into this Agreement; and

         WHEREAS, the Parties desire to settle and compromise any and all claims
or  potential  claims  between  them  which  arose on or before the date of this
Agreement.

         NOW, THEREFORE, in consideration of the mutual promises and obligations
contained  in this  Agreement  and other good and  valuable  consideration,  the
receipt and  sufficiency of which is hereby  acknowledged,  the Parties agree as
follows:

1. DEFINITIONS.

     1.1 When used in this Agreement, "Company and/or its Affiliates" shall mean
and include Mission Resources  Corporation,  a Delaware corporation,  and all of
its predecessors, successors and assigns and parents, subsidiaries, divisions or
other affiliated companies, partners, partnerships, present and former officers,
directors, employees,  stockholders,  agents, employee benefit plans or programs
and their  fiduciaries,  whether in their individual or official  capacities and
all of the successors and assigns of the foregoing.

<PAGE>

2. RESIGNATION BY EXECUTIVE.

         Effective on the Resignation Date, Executive shall resign all positions
he holds as an officer or  director of the Company  and/or its  Affiliates,  and
shall  provide a letter of  resignation  to the Company in the form  attached as
Exhibit 1.

     2.1 The Company shall  publish the press  release  attached as Exhibit 2 to
this Agreement, which was reviewed by and agreed to in advance by the Executive.

3.  TERMINATION  OF  THE  EMPLOYMENT  AGREEMENT.  The  Parties  agree  that  the
Employment  Agreement is hereby terminated and of no further force and effect as
of the  Resignation  Date,  and no  payments  or  benefits  are  due or  payable
thereunder,  except  that  paragraphs  7,  8  and  10  (respecting  confidential
information,  non-solicitation  and remedies) of the Employment  Agreement shall
survive termination.

4. SEVERANCE PAYMENTS TO EXECUTIVE.

     4.1 The Company  agrees to pay  Executive a severance  payment of $500,000,
payable in three equal  installments  of $166,666.66.  The first  installment is
payable on January 3, 2005, the second installment payable on March 31, 2005 and
the remaining installment payable on June 30, 2005 (the period of time beginning
on the  Resignation  Date and ending June 30, 2005 is herein  referred to as the
"Severance  Period");  provided that upon the  occurrence of a Change of Control
(as  defined  in  the  Employment  Agreement)  any  and  all  installments  then
outstanding  will be paid in a lump sum within 30 days of the  occurrence of the
Change of Control.  The  Executive  will also be  entitled  to a one-time  bonus
amount of $65,708.33  relating to his performance or employment on or before the
Resignation Date to be paid on or before the date bonuses are paid to the senior
executives of the Company  regarding  their 2004  performance.  All such amounts
will be subject to withholding by the Company consistent with its policies.

     4.2 During the Severance  Period,  the Executive shall not continue to make
any  deferrals  or  receive  any  employer  contributions  or any  other  future
contributions  under the  Company's  401(k) plan.  After the  Resignation  Date,
Executive shall be treated as any other terminated  employee under the Company's
401(k) plan.

     4.3 No vacation time will accrue during the Severance Period or thereafter.
All accrued unpaid vacation held by the Executive as of the Resignation  Date is
hereby forfeited.

     4.4 Except as otherwise provided in Section 5, Executive's participation in
all other employee  benefit plans and programs  maintained by the Company and/or
its  Affiliates  shall cease on the  Registration  Date, in accordance  with the
terms of the plans and/or  programs.  If Executive timely elects to continue his
group  medical  insurance  coverage  as in  effect  on the  Resignation  Date in
accordance with the Consolidated  Omnibus Budget  Reconciliation Act of 1985, as
amended  ("COBRA")  after the  Resignation  Date, then the Company shall pay all
premiums to continue  COBRA  coverage  under the Company's  medical plan (to the
extent such coverage is available)  for the  applicable  time period as required
under COBRA on account of Executive's termination of employment.

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<PAGE>

5. STOCK OPTIONS.

     5.1 Executive and the Company agree that Executive holds 574,999 options to
acquire  the  Company's  common  stock,  par value  $.01  ("Common  Stock"),  as
described  on  the  attached  Exhibit  3  pursuant  to  the  Mission   Resources
Corporation 1996 Plan and Mission Resources  Corporation 2004 Incentive Plan and
the award agreements  awarding the Executive options  thereunder  (collectively,
the  "Options").  As used herein,  "Share" shall mean a share of Company  Common
Stock;  and "Option  Shares"  shall mean Shares that are issued or issuable upon
the exercise of the Options.

     5.2 The Company agrees that:

     a. The  Options  covering  424,999  Option  Shares of the Common  Stock are
currently  vested.  Under the terms of the Employment  Agreement,  the remaining
150,000 of the Options are to vest on the Resignation Date. All Options shall be
exercisable  for a period  equal to the  lesser  of (A) one year  following  the
Resignation Date, or (B) the remaining term of the applicable Option.

     b. Except as set forth in this  Section 5, the terms of the Options  remain
in full force and effect  and  subject to the terms of the plans and  agreements
under which such Options were awarded.

     c.  The  issuance  or  transfer  of the  Shares  shall  be  subject  to all
applicable  federal,  state and local laws and regulations and applicable  rules
and  regulations of any exchanges on which such  securities are traded or listed
and  Company  policies  and  procedures  respecting  Options  and no issuance or
transfer shall be made in violation of any of the foregoing.

     d. The  Company  shall have the right to deduct  from any  payment  made to
Executive,  or to  otherwise  require  payment  by  Executive  of,  prior to the
issuance or delivery of any Shares of the Common Stock, any applicable  federal,
state or local  taxes;  provided,  however,  that if the  Company has allowed or
allows any of its executives to satisfy such withholding obligations in a manner
other than payment in cash,  it shall permit  Executive to avail himself of such
alternative methods for satisfying such withholding pursuant to the terms of the
applicable Option plan and agreements.

     e. Executive agrees and acknowledges  that the Options described on Exhibit
3 hereto are the only stock options,  restricted stock or any other equity right
or  benefits  to  which  he is  entitled  from  the  Company  and/or  any of its
Affiliates.

     5.3 The  Company  and the  Executive  agree  that they will use their  best
efforts to provide for an orderly sale by the  Executive  of any Option  Shares.
Specifically,  but not by way of  limitation,  the  Company  and  the  Executive
recognize  and agree that an orderly  sale of Option  Shares in the open  market
would be beneficial to and in the best interests of both Parties. By comparison,
it is further  agreed that an attempt to sell a large number of Option Shares at
one time on the open market  would be  detrimental  to the market  price for the
Common Stock.  In recognition of those facts,  before the Executive  arranges or
agrees to sell, or sells,  any Option Shares,  the Executive agrees that he will
use his best efforts to  cooperate  with the Company in its efforts to arrange a
block trade or other  placement  of a large  number of Option  Shares to certain
buyers;  provided  that the  terms  of any such  block  trade or  placement  are
satisfactory to the Executive.

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<PAGE>

6. RELEASE BY EXECUTIVE.

     6.1 In  consideration  of the Company's  payments of benefits  described in
Section 4 and other concessions described above, Executive releases,  discharges
and forever holds harmless the Company  and/or its  Affiliates  from any and all
claims, causes of action, demands, costs, fees, debts, penalties,  taxes and all
liabilities whatsoever,  known or unknown, arising on or before the date of this
Agreement  other  than any and all  obligations  or rights  arising  under  this
Agreement and any obligations under the Employment  Agreement that survive under
Section 3 of this Agreement.

     6.2 Executive's  release  includes,  without  limitation,  claims at law or
equity, sounding in contract (express or implied) or tort arising under federal,
state or local law,  including but not limited to, any claims arising out of the
Employment  Agreement  other than as specified in Section 6.1 above,  any claims
for any wages, salary,  compensation,  sick time, benefits,  vacation time, paid
leave,  termination  or severance  pay (except as provided in Section  4.1),  or
other  remuneration or benefit of any kind; any claim of  discrimination  and/or
retaliation  on the  basis  of  race,  sex,  religion,  marital  status,  sexual
preference,  national origin, handicap or disability, veteran status, or special
disabled  veteran status;  any claim arising under Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age  Discrimination in Employment
Act of 1967, the Employee  Retirement Income Security Act of 1974, the Americans
with  Disabilities  Act,  the  Family  and  Medical  Leave  Act,  the Fair Labor
Standards Act of 1938, the Texas  Commission on Human Rights Act, Chapter 451 of
the Texas Labor Code,  or the Texas Payday Law, as such  statutes may be amended
from time to time;  any claim arising out of or related to an express or implied
employment  contract;  any other  contract  affecting  terms and  conditions  of
employment,  or a covenant  of good faith and fair  dealing;  any tort claims or
claims  for  personal  injury  or  property  damage,   any  claim  of  fraud  or
misrepresentation  and any personal gain with respect to any claim arising under
the qui tam provisions of any state or federal law.

     6.3  Executive  represents  that  Executive has read and  understands  this
release provision and that (i) rights and claims under the Age Discrimination in
Employment  Act of 1967 are among the  rights  and claims  against  the  Company
and/or its  Affiliates  that  Executive is releasing  and (ii)  Executive is not
releasing  any rights or claims the events for which arise  after the  Effective
Date (as defined in Section 14 hereof). Notwithstanding anything to the contrary
in this Section,  Executive is not releasing any right to (i) any vested benefit
under any employee  benefit plan, as defined by the Employee  Retirement  Income
Security  Act of 1974,  as  amended,  (ii)  any  rights  to  COBRA  continuation
coverage; or (iii) any rights provided in this Agreement.

     6.4 Executive acknowledges and agrees that the consideration,  described in
Sections 4 and 5 of this  Agreement,  in exchange for his release is in addition
to anything of value to which he already is entitled from the Company and/or its
Affiliates  and that the  Company,  and/or its  Affiliates  are not  required to
provide the said  consideration  herein pursuant to contract or otherwise except
as required by this Agreement itself.

                                       4
<PAGE>

     6.5 Executive  represents  that  Executive has not filed or authorized  and
shall not file or authorize  the filing of any  complaints,  charges or lawsuits
against the  Company  and/or its  Affiliates  with any  federal,  state or local
court,  governmental agency, or administrative  agency, and that if, unbeknownst
to  Executive,  any such  complaint  has been  filed or is filed on  Executive's
behalf,  Executive will cause it to be withdrawn  immediately and dismissed with
prejudice.

     6.6 Executive acknowledges that he has 21 days from the Resignation Date to
consider  and  return an  executed  copy of this  Agreement  to either the Chief
Executive  Officer or the Chief Financial  Officer of the Company.  If Executive
does  not  return  a  signed  copy of this  Agreement  within  21 days  from the
Resignation  Date this Agreement shall be null and void and no benefits shall be
payable  hereunder.  Executive's  execution of this  Agreement is subject to his
right of revocation described in Section 14 hereof.

7. RELEASE BY COMPANY.

     7.1  In  consideration  of  Executive's   release,  the  Company  releases,
discharges and forever holds harmless Executive from any and all claims,  causes
of action,  demands,  costs, fees, debts,  penalties,  taxes and all liabilities
whatsoever,  known or unknown,  arising on or before the date of this  Agreement
(including,  without limitation, claims, causes of action, demands, costs, fees,
debts, penalties, taxes and all liabilities whatsoever, known or unknown, claims
at law or equity,  sounding  in contract  (express  or implied) or tort  arising
under  federal,  state or local law,  any claims  arising out of the  Employment
Agreement other than as set forth in this Section 7.1),  except that the Company
is not releasing any rights related to this Agreement, including but not limited
to, the terms and  conditions  of the  Options  pursuant  to Section 5.2 of this
Agreement,  or the rights of the Company and/or its Affiliates  under paragraphs
7, 8 and 10 of the Employment Agreement.

     7.2 In addition,  and in further consideration of the foregoing,  Executive
and the Company  hereby agree that nothing  contained  in this  Agreement  shall
constitute or be treated as an admission of liability or wrongdoing by either of
the Parties to this agreement, and all such liability is expressly denied.

8. CONFIDENTIALITY.

     8.1 Both  Parties  shall  keep  strictly  confidential  all the  terms  and
conditions,  including amounts payable,  in the Agreement and shall not disclose
them to any person  other  than  legal  and/or  financial  advisors,  government
officials  who seek such  information  in the course of their  official  duties,
individuals  at the Company  responsible  for  implementing  the  Agreement,  or
Executive's spouse, unless compelled to do so by law or regulation,  or business
necessity  (including the requirement to file this Agreement with the Securities
and Exchange Commission or tax reporting  obligations).  Nothing in this Section
is intended to prevent  Executive from  disclosing the fact that he was employed
by the Company or from describing his employment duties.

                                       5
<PAGE>

9. LITIGATION SUPPORT.

     9.1 In the event and for so long as the Company is actively  contesting  or
defending against any action, suit, proceeding, hearing,  investigation,  audit,
charge,  complaint,  claim, or demand brought against (a) the Company and/or its
Affiliates or (b) the Executive in his capacity of employee, director or officer
of the Company in connection  with any fact,  situation,  circumstance,  status,
condition, activity practice, plan, occurrence, event, incident, action, failure
to act,  or  transaction  involving  the  Company  and/or its  Affiliates,  then
Executive  will  reasonably  cooperate with the Company and/or its Affiliates or
their counsel in the contest or defense,  and provide such  testimony and access
to his  books,  records  and  documents  as shall  be  reasonably  necessary  in
connection with the contest or defense,  all at the sole cost and expense of the
Company.  The Executive  further  agrees to not provide  assistance of any kind,
other than as required by law, to any person to assist in pursuing any currently
pending or threatened claim, litigation,  arbitration, mediation, administrative
hearing or other legal proceedings against the Company and/or its Affiliates.

     9.2 With  respect  to  Executive,  the  Company  shall  honor all rights to
indemnification and exculpation from liabilities for acts or omissions occurring
at or prior to the date  hereof  now  existing  in favor of  current  or  former
employees, agents, directors or officers of the Company, including Executive, as
provided in its  organizational  documents  and  indemnification  agreements  or
arrangements  heretofore  entered into by the Company in  accordance  with their
terms. The Company shall continue to provide directors' and officers'  liability
insurance  with  respect to claims  against the  Executive  arising  from facts,
events,  acts or omissions which occurred at or prior to the date hereof, to the
same extent and with the same coverage and amounts, and terms and conditions, as
that  coverage  provided by the Company from time to time for its  executives or
directors.  In the event that the Company or any of its respective successors or
assigns  undergoes  a change of  control,  then,  and in each such case,  proper
provision will be made so that the  successors and assigns of the Company,  will
assume the obligations set forth in this Section 9.2.

10. RETURN OF COMPANY MATERIALS AND NON-SOLICITATION.

     10.1 Executive  agrees to deliver promptly to the Company all originals and
copies  of  materials  in  the  Executive's  possession,   custody,  or  control
containing  Information (as defined in paragraph 7 of the Employment  Agreement)
and other property of the Company and/or its Affiliates.

     10.2  From and  after  the  Resignation  Date and for a period of 12 months
thereafter, Executive agrees that he will not, without the written permission of
the  Company,  directly  or  indirectly,  either for himself or on behalf of any
other  party,  hire,  employ,  solicit  or engage for  employment,  either for a
temporary,  contract or permanent  position,  any then  current  employee of the
Company or any of its affiliates.

11. ACCEPTANCE.

     11.1 The Company  advises  Executive to consult  with an attorney  prior to
executing this Agreement, and Executive acknowledges being given that advice.

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<PAGE>

12. DISPUTE RESOLUTION.

     12.1 Any  dispute  arising out of or  relating  to this  Agreement,  or any
breach thereof,  shall be resolved by binding arbitration in Houston,  Texas, in
accordance  with the Employment  Arbitration  Rules of the American  Arbitration
Association  then in effect,  as amended by this Agreement,  and judgment on the
award  rendered  by the  arbitrator  may be  entered  in any court of  competent
jurisdiction.  The  Parties  agree  that the  arbitrator  shall have no power or
authority  to make  awards  or issue  orders  of any kind  except  as  expressly
permitted by this Agreement.  The  arbitrator's  decision shall follow the plain
meaning  of the  relevant  documents,  apply  Texas  law  as  provided  in  this
Agreement,  and shall be final and binding.  The location of such arbitration in
Houston,  Texas,  shall be  selected  by the  Company  in its sole and  absolute
discretion.  All costs and expenses,  including attorneys' fees, relating to the
resolution of any such dispute shall be borne by the party  incurring such costs
and expenses.

     12.2 Notwithstanding the preceding paragraph,  the Parties acknowledge that
either of them may seek emergency or temporary or permanent injunctive relief or
a  restraining  order,  including  but not limited to such  emergency  relief or
temporary  or  permanent  injunctive  relief or a  restraining  order to enforce
paragraphs 7, 8 and 10 of the Employment Agreement including costs and attorneys
fees incurred in connection with such action, but absolutely no other relief, in
any court of competent  jurisdiction.  All other  disputes,  claims and remedies
shall be settled by arbitration in accordance with Section 12.1.

13. NO DEFAMATORY STATEMENTS.  Executive agrees that he will refrain from making
any  representation,  statement,  comment  or any  other  form of  communication
(hereinafter  collectively referred to as "representation"),  whether written or
oral,  to any person or entity,  including  but not  limited to the  principals,
officers,  directors,  employees,  advisors,  agents,  customers,  suppliers and
competitors  of Company  and/or its  Affiliates,  which  representation  has the
effect or tendency to disparage,  denigrate,  or otherwise reflect negatively on
Company  and/or its  Affiliates  and/or  their  business,  officers,  directors,
shareholders,  employees,  agents,  advisors or  investors.  The Company  hereby
covenants to  Executive  and agrees that it shall not,  directly or  indirectly,
make or solicit or encourage  others to make or solicit any disparaging  remarks
concerning Executive, or any of his businesses or activities. The Company agrees
to give  Executive  an  opportunity  to review  and make  comments  on all press
releases  the  Company  will issue  describing  Executive's  departure  from the
Company.

14.  REVOCATION OF AGREEMENT;  EFFECTIVE DATE.  Executive,  at Executive's  sole
discretion,  may revoke  this  Agreement  on or before the  expiration  of seven
calendar  days after  signing it.  Revocation  shall be in writing and effective
upon dispatch to the Company.  If Executive elects to revoke the Agreement,  all
of the provisions of the Agreement shall be void and unenforceable. If Executive
does not so elect, the Agreement shall become effective at the expiration of the
revocation  period (i.e., on the eighth day after Executive signs the Agreement)
(the "Effective Date").

15. MISCELLANEOUS.

     15.1 The  Parties  acknowledge  that  this  Agreement  is the  result  of a
compromise  and shall never be construed as, or said by either of them to be, an
admission by the other of any  liability,  wrongdoing,  or  responsibility.  The
Parties   expressly   disclaim  any  such  liability,   wrongdoing,   fault,  or
responsibility.

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<PAGE>

     15.2 This Agreement,  the surviving paragraphs of the Employment Agreement,
the agreements and documents related to Options,  any indemnification  agreement
entered into by the Executive and the Company and other benefit plans constitute
the entire  agreement  between the Parties.  This  Agreement  may be executed in
identical  counterparts,  each of which shall  constitute an original and all of
which shall constitute one and the same agreement.  Except as expressly provided
herein, this Agreement supersedes the Employment Agreement,  the Options and any
severance benefit plan or program or any bonus program at the Company and/or its
Affiliates.

     15.3 The Parties warrant that no representations  have been made other than
those contained in the written  provisions of this  Agreement,  and that they do
not rely on any representations not stated in this Agreement.

     15.4  The  Parties   further   warrant  that  they  or  their   undersigned
representatives  are  legally  competent  and fully  authorized  to execute  and
deliver this Agreement.

     15.5 The  Parties  confirm  they  have  had the  opportunity  to have  this
Agreement  explained to them by attorneys of their choice, and that they execute
this Agreement freely, knowingly and voluntarily.  The Company is relying on its
own judgment and on the advice of its attorneys and not upon any  recommendation
of  Executive  or his  agents,  attorneys  or other  representatives.  Likewise,
Executive is relying on his own judgment and on the advice of his attorneys, and
not  upon  any  recommendation  of  the  Company  or  its  directors,  officers,
employees, agents, attorneys or other representatives.  By voluntarily executing
this  Agreement,  both Parties  confirm their  competence  to understand  and do
hereby accept the terms of this  Agreement as resolving  fully all  differences,
disputes  and  claims  that may exist  within the scope of this  Agreement.  The
Executive also acknowledges and agrees that Porter & Hedges,  L.L.P.  represents
the Company, and not the Executive, and that he has retained separate counsel to
advise him regarding this Agreement.

     15.6 The  Company  represents  that with  respect to any  matters  released
pursuant to Section 7 hereof it has not filed or authorized and will not file or
participate in, at any time, the filing of any  complaints,  charges or lawsuits
against Executive with any federal,  state or local court,  governmental agency,
or  administrative  agency,  and that if,  unbeknownst to the Company,  any such
complaint  has been  filed on its  behalf,  it will cause it to  immediately  be
withdrawn and dismissed with prejudice.

     15.7 This  Agreement  may not be  modified  or amended  except by a writing
signed by all Parties.  No waiver of this  Agreement or of any of the  promises,
obligations, terms, or conditions contained in it shall be valid unless it is in
writing signed by the Party against whom the waiver is to be enforced.

     15.8 If any  part or any  provision  of this  Agreement  shall  be  finally
determined to be invalid or  unenforceable  under  applicable  law by a court of
competent  jurisdiction,  that part shall be  ineffective  to the extent of such
invalidity or unenforceability  only, without in any way affecting the remaining
parts of said provision or the remaining provisions of the Agreement.

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<PAGE>

     15.9 The Parties have  cooperated  in the  preparation  of this  Agreement.
Hence,  the Agreement shall not be interpreted or construed  against or in favor
of any  Party  by  virtue  of the  identity,  interest,  or  affiliation  of its
preparer.

     15.10 This Agreement is made and shall be enforced  pursuant to the laws of
the State of Texas,  without  regard to its law governing  conflicts of law. All
performance  required by the terms of this Agreement  shall take place in Harris
County, Texas.

     15.11 The amount of benefits  payable  under this  Agreement  shall be paid
from the general  assets of the  Company  and there  shall be no separate  trust
established to pay any benefits under this  Agreement.  Executive's  status with
respect to the payment of benefits  under this  Agreement  shall be as a general
unsecured creditor of the Company.

     15.12 All payments of benefits under this Agreement shall be subject to all
applicable  federal,  state and local taxes, and Executive  acknowledges that he
shall be solely responsible for all such taxes.

     15.13  This  Agreement  shall be  binding  and inure to the  benefit of the
successors  and assigns of the Parties.  No rights or  obligations,  benefits or
payments  of  Executive  under  this  Agreement  may be  subject  to  claims  of
Executive's  creditors,  or in any  manner may be  assigned  or  transferred  by
Executive  other  than  his  rights  to  compensation   and  benefits  that  are
transferred by will or to his estate by operation of law.

                            [SIGNATURE PAGE FOLLOWS]

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<PAGE>

Joseph G. Nicknish ("Executive")    MISSION RESOURCES CORPORATION ("Company")

BY: /s/ Joseph G. Nicknish          By: /s/ Richard W. Piacenti
                                    ----------------------------------
                                    Printed Name:  Richard W. Piacenti
                                    Title: Exective VP - CFO
                                    Date: November 17, 2004
Date: November 17, 2004

            THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION.

              THIS AGREEMENT CONTAINS A GENERAL RELEASE OF CLAIMS.

                                       10================================================================================

                        MINERAL PROPERTY OPTION AGREEMENT

                  THIS AGREEMENT dated for reference July 31, 2004.

BETWEEN:

                  RICH RIVER EXPLORATION LTD., a company incorporated  pursuant
                  to the laws of British Columbia with an address at PO Box 131,
                  Grindrod,  British Columbia, V0E 1Y0;

                  CRAIG A. LYNES, of PO Box 131, Grindrod, British Columbia,
                  V0E 1Y0;

                  (the "Optionors")

                                                              OF THE FIRST PART

AND:

                  BOSS MINERALS, INC.,  a company incorporated  pursuant to the
                  laws of the State of Nevada  and  having  its head  office  at
                  400 - 318 Homer  Street, Vancouver, British Columbia, V6B 2V2;

                  ("Boss")

                                                             OF THE SECOND PART

W H E R E A S :

A.  Craig A. Lynes is the  registered  and Rich River  Exploration  Ltd.  is the
beneficial owner of a mineral property claim group comprising  approximately 500
hectares located in the Kamloops Mining Division, British Columbia, known as the
Mosquito King property, which claims are more particularly described in Schedule
"A"  attached  hereto  which  forms a material  part hereof  (collectively,  the
"Claims");

B.  The  Optionors  have  agreed  to grant to Boss the sole and exclusive right,
privilege and option to explore the Claims  together with the sole and exclusive
right, privilege and option to purchase the Claims upon the terms and conditions
hereinafter set forth;

                  NOW THEREFORE THIS AGREEMENT  WITNESSETH that in consideration
of the mutual covenants and provisos herein contained,  THE PARTIES HERETO AGREE
AS FOLLOWS:

1.                OPTIONORS' REPRESENTATIONS

1.1               The Optionors represent and warrant to Boss that:

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                                      -2-

         (a)      Collectively, the Optionors are the registered  and beneficial
                  owners of the Claims and hold the right to explore and develop
                  the Claims;

         (b)      The  Optionors  hold the  Claims  free and clear of all liens,
                  charges and claims of others,  and the  Optionors  have a free
                  and  unimpeded  right of access to the  Claims and have use of
                  the Claims surface for the herein purposes;

         (c)      The Claims have been duly and validly  located and recorded in
                  a good and miner-like  manner  pursuant to the laws of British
                  Columbia  and are in good  standing in British  Columbia as of
                  the date of this Agreement;

         (d)      There are no adverse  claims or  challenges  against or to the
                  Optionors'  ownership  of or title to any of the Claims nor to
                  the  knowledge of the  Optionors is there any basis  therefor,
                  and there are no outstanding  agreements or options to acquire
                  or purchase the Claims or any portion thereof;

         (e)      The Optionors  have the full right,  authority and capacity to
                  enter into this Agreement  without first obtaining the consent
                  of any other person or body corporate and the  consummation of
                  the transaction herein  contemplated will not conflict with or
                  result in any breach of any covenants or agreements  contained
                  in, or constitute a default  under,  or result in the creation
                  of any  encumbrance  under the  provisions  of any  indenture,
                  agreement  or other  instrument  whatsoever  to  which  either
                  Optionor  is a party  or by which  they are  bound or to which
                  they are subject; and

         (f)      No  proceedings  are pending for, and each of the Optionors is
                  unaware of any basis for, the  institution of any  proceedings
                  which  could  lead  to  the  placing  of  either  Optionor  in
                  bankruptcy, or in any position similar to bankruptcy.

1.2 The representations and warranties of the Optionors set out in paragraph 1.1
above  form a part of this  Agreement  and are  conditions  upon  which Boss has
relied in entering into this Agreement and shall survive the  acquisition of any
interest in the Claims by Boss.

2.                BOSS'S REPRESENTATIONS

                  Boss warrants and  represents  to the  Optionors  that it is a
body  corporate,  duly  incorporated  under the laws of the State of Nevada with
full power and absolute capacity to enter into this Agreement and that the terms
of this Agreement have been authorized by all necessary corporate acts and deeds
in order to give effect to the terms hereof.

3.                GRANT OF OPTION

                  The  Optionors  hereby  give  and  grant  to Boss the sole and
exclusive right and option to acquire a l00% undivided right, title and interest
in and to the Claims (the "Option"), subject to a 2% net smelter returns royalty
reserved in favour of the Optionors, by performing the acts and deeds and paying
the sums provided for in paragraph 4.

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                                      -3-

4.                CONSIDERATION FOR THE GRANT OF OPTION

4.1 In order to keep the Option granted to Boss in respect of the Claims in good
standing and in force and effect, Boss shall be obligated to:

                  Cash Payments
                  -------------

         (a)      Pay to the Optionors a total of $33,000 in the following
                  manner:

                  (i)      $3,000 by August 25, 2004;

                  (ii)     an additional $5,000 by August 15, 2005; and

                  (iii)    an additional $25,000 by August 15, 2006;

                  Property Payments and Assessment Work
                  -------------------------------------

         (b)      Pay,  or  cause  to be  paid,  to  the  Optionors,  or on  the
                  Optionors'  behalf as Boss may determine,  all Claims payments
                  and  assessment  work  required  to keep the  Claims  and this
                  Option in good standing during the term of this Agreement.

4.2 Area of Influence.  For the purpose of this  Agreement,  the area covered by
the Claims shall include an area of influence surrounding the outer perimeter of
the Claims to a maximum of three  kilometres  (the "Area of Influence")  and all
mineral  concessions,  interests  or rights  acquired,  directly or  indirectly,
within  the Area of  Influence  before  or after  the  date of  signing  of this
Agreement by the Optionors or Boss during the currency of this  Agreement  shall
become part of this Agreement.

5.                COVENANTS OF BOSS

5.1 Boss shall  perform all work on the Claims in a miner-like  manner and shall
comply with all laws, regulations and permitting  requirements of Canada and the
Province of British Columbia including compliance with all:

         (a)      environmental statutes, guidelines and regulations;

         (b)      work permit conditions for lakes and streams; and

         (c)      work restrictions relating to forest fire hazards.

6.                RIGHT TO ABANDON PROPERTY INTERESTS

                  Should Boss, in its sole  discretion,  determine that any part
of the Claims no longer warrants further exploration and development,  then Boss
may  abandon  such  interest  or  interests  without  affecting  its  rights  or
obligations under this Agreement, so long as Boss provides the Optionors with 30
days  notice  of its  intention  to do so.  Upon  receipt  of such  notice,  the
Optionors may request Boss to retransfer the title to such interest or interests
to them,  and Boss hereby  agrees to do so, and upon  expiry of the 30 days,  or
upon the earlier transfer thereof,  such interests shall cease to be part of the
Claims for the purposes of this Agreement.

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                                      -4-

7.                TERMINATION OF OPTION

7.1 Subject to paragraph  7.2, the Option shall  terminate if Boss fails to make
the required cash payments or to complete required assessment work in accordance
with paragraph 4.1 herein within the time periods specified therein.

7.2 If Boss shall be in default of any  requirement  set forth in paragraph  4.1
herein,  the Optionors  shall give written notice to Boss specifying the default
and Boss shall not lose any rights granted under this  Agreement,  unless within
30 days after the giving of notice of default by the Optionors,  Boss has failed
to take reasonable steps to cure the default by the appropriate performance.

7.3 If the  Option is  terminated  in  accordance  with  paragraphs  7.1 and 7.2
herein,  Boss shall have no interest in or to the Claims,  and all  expenditures
and payments made by Boss to or on behalf of the Optionors  under this Agreement
shall be non-refundable by the Optionors for which Boss shall have no recourse.

8.                ACQUISITION OF INTERESTS IN THE PROPERTY

                  At  such  time as  Boss  has  made  all of the  required  cash
payments  in  accordance  with  paragraph  4.1 herein,  within the time  periods
specified  therein,  then the Option  shall be deemed to have been  exercised by
Boss,  and Boss shall  have  thereby,  without  any  further  act,  acquired  an
undivided  100%  interest  in and to the  Claims,  subject  to a 2% net  smelter
returns royalty in favour of the Optionors.

9.                RIGHT OF ENTRY

                  For so long as the Option  continues in full force and effect,
Boss, its employees, agents, permitted assigns and independent contractors shall
have the right to:

         (a)      enter upon the Claims;

         (b)      incur expenditures;

         (c)      bring upon and erect upon the Claims such mining  facilities
                  as Boss may consider  advisable; and

         (d)      remove from the Claims and sell or otherwise dispose of
                  mineral products.

10.               NET SMELTER RETURNS ROYALTY

10.1 For the purposes of this  Agreement,  "net smelter  returns" shall mean the
net  amount  shown due by the  smelter  or other  place of sale from the sale of
mineral  products,  as  indicated  by its returns or  settlement  sheets,  after
payment of:

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                                      -5-

                  (a)      all freight charges from the shipping point to the
                           smelter or other place of sale;

                  (b)      all other proper  treatment or other  charges at such
                           smelter or other place of sale; and

                  (c)      provincial or federal royalties due and payable on
                           production, if any.

10.2 For the purposes of paragraph 10, "commercial production" shall not include
milling of ores for the  purpose  of  testing  or  milling  by a pilot  plant or
milling during an initial tune-up period of a plant.

10.3 On the  date  Boss  commences  commercial  production  on the  Claims,  the
Optionors shall be entitled to receive and Boss shall pay to the Optionors 2% of
net smelter returns, to a maximum of $500,000.

10.4 Boss  shall be under no  obligation  whatsoever  to place the  Claims  into
commercial  production  and  in  the  event  they  are  placed  into  commercial
production,  Boss shall have the right,  at any time, to curtail or suspend such
production as it, in its absolute discretion, may determine.

10.5 Net smelter  returns and the payments  payable to the  Optionors  hereunder
shall be adjusted and paid  quarterly,  and within 90 days after the end of each
fiscal year during which the Claims were in commercial  production,  the records
relating to the calculation of net smelter returns during that fiscal year shall
be  audited  and any  adjustments  shall  be  made  forthwith,  and the  audited
statements  shall be  delivered  to the  Optionors  who shall have 60 days after
receipt of such  statements  to question in writing  their  accuracy and failing
such question, the statements shall be deemed correct.

10.6 The Optionors or their representatives duly appointed in writing shall have
the right at all reasonable times, upon written request,  to inspect those books
and  financial  records of Boss which are relevant to the  determination  of net
smelter returns, and, at the expense of the Optionors, to make copies thereof.

11.               OPERATOR

                  After the  execution  of this  Agreement,  Boss,  or at Boss's
option, its respective associate or nominee or such other unrelated entity as it
may  determine,  will act as the  operator of the Claims  under this  Agreement.
Boss, if operator,  may resign as the operator at any time by giving 30 calendar
days prior written notice to the Optionors,  and within such 30 day period, Boss
may appoint  another  party who  covenants  to act as the operator of the Claims
upon such terms as Boss sees fit.

12.               POWER AND AUTHORITY OF THE OPERATOR

                  After the execution of this Agreement, the Operator shall have
full right,  power and  authority  to do  everything  necessary  or desirable in
connection  with the  exploration and development of the Claims and to determine
the manner of operation of the Claims as a mine.

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                                      -6-

13.               REGISTRATION OF PROPERTY INTERESTS

                  Upon the request of Boss,  the Optionors  shall assist Boss to
record this Agreement with the  appropriate  mining recorder and, when required,
the Optionors shall further provide Boss with such recordable  documents as Boss
and its  counsel  shall  require  to record its due  interest  in respect of the
Claims.

14.               FURTHER ASSURANCES

                  The parties hereto agree to do or cause to be done all acts or
things necessary to implement and carry into effect the provisions and intent of
this Agreement.

15.               FORCE MAJEURE

                  If Boss is  prevented  from or delayed in  complying  with any
provisions of this Agreement by reasons of strikes,  labour disputes,  lockouts,
labour  shortages,  power  shortages,  fires,  wars,  acts of God,  governmental
regulations  restricting normal operations or any other reason or reasons beyond
the  control  of Boss,  the time  limited  for the  performance  of the  various
provisions  of this  Agreement as set out above shall be extended by a period of
time  equal in length to the  period of such  prevention  and  delay,  and Boss,
insofar as is possible,  shall  promptly give written notice to the Optionors of
the  particulars  of the reasons for any prevention or delay under this section,
and shall take all  reasonable  steps to remove the cause of such  prevention or
delay and shall  give  written  notice to the  Optionors  as soon as such  cause
ceases to exist.

16.               CONFIDENTIAL INFORMATION

                  No information furnished by Boss to the Optionors hereunder in
respect of the  activities  carried out on the Claims by Boss, or related to the
sale of mineral  products  derived  from the Claims,  shall be  published by the
Optionors without the prior written consent of Boss, but such consent in respect
of the reporting of factual data shall not be unreasonably withheld.

17.               ENTIRE AGREEMENT

                  This  Agreement  constitutes  the  entire  agreement  to  date
between  the  parties   hereto  and   supersedes   every   previous   agreement,
communication,   expectation,  negotiation,   representation  or  understanding,
whether oral or written, express or implied, statutory or otherwise, between the
parties hereto with respect to the subject matter of this Agreement.

18.               NOTICE

18.1 Any notice  required to be given under this Agreement shall be deemed to be
well and  sufficiently  given if delivered,  or if mailed by registered  mail in
Canada, in the case of the Optionors addressed to them as follows:

<page>

                                      -7-

                  Rich River Exploration Ltd.
                  Craig A. Lynes
                  Box 131
                  Grindrod, British Columbia
                  V0E 1Y0

and in the case of Boss addressed as follows:

                  Boss Minerals, Inc..
                  Suite 400 - 318 Homer Street
                  Vancouver, British Columbia
                  V6B 2V2

and any  notice  given as  aforesaid  shall be  deemed to have  been  given,  if
delivered,  when  delivered,  or if mailed,  on the third business day after the
date of mailing thereof.

18.2 Either party  hereto may from time to time by notice in writing  change its
address for the purpose of this section.

19.               OPTION ONLY

                  Until the  Option  is  exercised,  this is an option  only and
except as specifically  provided  otherwise,  nothing herein  contained shall be
construed as obligating  Boss to do any acts or make any payments  hereunder and
any acts or payments made hereunder shall not be construed as obligating Boss to
do any further acts or make any further payments.

20.               RELATIONSHIP OF PARTIES

                  Nothing  contained  in this  Agreement  shall,  except  to the
extent specifically  authorized hereunder,  be deemed to constitute either party
hereto a partner, agent or legal representative of the other party.

21.               TIME OF ESSENCE

                  Time shall be of the essence of this Agreement.

22.               TITLES

                  The  titles to the  respective  sections  hereof  shall not be
deemed a part of this  Agreement  but shall be  regarded as having been used for
convenience only.

23.               CURRENCY

                  All funds referred to under the terms of this Agreement  shall
be funds designated in the lawful currency of the United States of America.

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                                      -8-

24.               SEVERABILITY

                  In the  event  that any of the  paragraphs  contained  in this
Agreement,  or any portion of thereof,  is  unenforceable or is declared invalid
for any reason whatsoever,  such unenforceability or invalidity shall not affect
the  enforceability  or validity  of the  remaining  terms or  portions  thereof
contained in this  Agreement and such  unenforceable  or invalid  paragraph,  or
portion thereof, shall be severable from the remainder of the Agreement.

25.               APPLICABLE LAW

                  The situs of the Agreement is Vancouver, British Columbia, and
for all purposes this  Agreement  will be governed  exclusively by and construed
and enforced in accordance  with the laws  prevailing in the Province of British
Columbia.

26.               ENUREMENT

                  This  Agreement  shall  enure to the benefit of and be binding
upon the parties hereto and their respective successors and assigns.

                  IN WITNESS  WHEREOF  this  Agreement  has been  executed  as
of the day and year  first  above
written.

RICH RIVER EXPLORATION LTD.                               BOSS MINERALS, INC.

per:                                                  By:/s/ Andrei Krioukov
----------------------                                -------------------------
Authorized Signatory                                  Andrei Krioukov
                                                      Authorized Signatory

By: /s/ Craig A. Lynes
----------------------
Craig A. Lynes

<page>

                                      -9-

                                  SCHEDULE "A"
                                 --------------

               TO THAT CERTAIN AGREEMENT MADE AS OF JULY 31, 2004
                      BETWEEN RICH RIVER EXPLORATION LTD.,
                     CRAIG A. LYNES AND BOSS MINERALS, INC.

The o mineral claims that constitute the Mosquito King claims are located in the
Kamloops  Mining  Division,  Province on British  Columbia on Map Sheet 082M003.
Specifics of the claims are as follows:

  Claim Tag Numbers      No. of Claims Units    Date of Staking   Tenure Number
 ------------------      -------------------    ---------------   -------------
       208529                     20             2002 / 11 / 17       398162

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