Document:

Exhibit 10.19

                                EARN-IN AGREEMENT

                                     BETWEEN

                              RODEO CREEK GOLD INC.

                      GREAT BASIN GOLD LTD. (AS GUARANTOR)

                                       AND

                              HECLA VENTURES CORP.

                       HECLA MINING COMPANY (AS GUARANTOR)

                       HOLLISTER DEVELOPMENT BLOCK VENTURE

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                                TABLE OF CONTENTS

                                EARN-IN AGREEMENT

ARTICLE I      DEFINITIONS.....................................................2
ARTICLE II     REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS ..............5
ARTICLE III    TERM OF EARN-IN AGREEMENT ......................................8
ARTICLE IV     RELATIONSHIP OF THE PARTIES.....................................8
ARTICLE V      INITIAL CONTRIBUTION...........................................10
ARTICLE VI     MAINTENANCE AND ABANDONMENT OF PROPERTIES......................13
ARTICLE VII    AREA OF INTEREST ..............................................14
ARTICLE VIII   WITHDRAWAL AND TERMINATION.....................................15
ARTICLE IX     OPERATIONS AND GOVERNANCE......................................17
ARTICLE X      RECLAMATION OBLIGATIONS........................................28
ARTICLE XI     REPORTING, INSPECTION AND AUDIT................................29
ARTICLE XII    MEMORANDUM.....................................................30
ARTICLE XIII   DEFAULTS.......................................................30
ARTICLE XIV    CONFIDENTIALITY................................................30
ARTICLE XV     TAXES..........................................................32
ARTICLE XVI    COOPERATION....................................................32
ARTICLE XVII   GENERAL PROVISIONS.............................................32

                                    EXHIBITS

EXHIBIT A:  PROPERTIES AND TERMINATION & RELEASE AGREEMENT

EXHIBIT B:  ACCOUNTING PROCEDURES

EXHIBIT B1  INSURANCE

EXHIBIT C:  FORM OF QUITCLAIM DEED AND ASSIGNMENT

EXHIBIT D:  FORM OF MEMORANDUM OF AGREEMENT

EXHIBIT E:  EXPENDITURE SCHEDULE AND INITIAL
            PROGRAM & BUDGET

EXHIBIT F:  OPERATING AGREEMENT

EXHIBIT G:  HECLA MINING WARRANT AGREEMENT

EXHIBIT H:  GREAT BASIN WARRANT AGREEMENT

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                                EARN-IN AGREEMENT

         This Earn-in Agreement is made as of August 2, 2002, ("Effective Date")
between HECLA VENTURES CORP., a Nevada corporation duly qualified to do business
and in good standing in the state of Nevada, whose principal address is 6500
Mineral Drive, Coeur d'Alene, Idaho 83815-8788 (hereinafter referred to as
"Hecla Ventures") and its Guarantor, Hecla Mining Company and RODEO CREEK GOLD
INC., a Nevada corporation whose address is C/O Richard Harris, Ste. 260-6121
Lakeside Drive, Reno, NV 89511 (hereinafter referred to as "Rodeo Creek") who is
qualified to do business and is in good standing in the State of Nevada and its
Guarantor, Great Basin Gold Ltd.

                                    RECITALS

         A. WHEREAS, Rodeo Creek owns certain mining claims and other real
property interests more specifically described in Exhibit A, attached hereto and
incorporated herein by this reference (hereinafter referred to as the
"Properties");

         B. WHEREAS, Hecla Ventures desires to acquire an undivided interest in
the Properties by spending the Earn-in Expenditures on or for the benefit of the
Properties unless terminated pursuant to the terms hereof; and

         C. WHEREAS, upon completion of a Earn-in Activities (as that term is
defined below) by Hecla Ventures, Hecla Ventures and Rodeo Creek; enter into the
Operating Agreement attached hereto as Exhibit F;

         D. WHEREAS, Hecla Mining Company ("Hecla Mining"), as Guarantor has
agreed to guarantee the due performance of all of the obligations of Hecla
Ventures hereunder.

         E. WHEREAS, Great Basin Gold Ltd. ("Great Basin"), as Guarantor has
agreed to guarantee the due performance of all the obligations of Rodeo Creek
hereunder.

         NOW, THEREFORE, in consideration of the payments provided for herein
and the mutual promises set forth below, all the Parties hereto agree to the
provisions of this Earn-in Agreement.

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                                    ARTICLE I
                                   DEFINITIONS

         1.1 "Accounting Procedures" means the procedures set forth in Exhibit
B.

         1.2 "Affiliate" means any person, partner, partnership, joint venture,
limited liability company, corporation or other form of enterprise which
directly or indirectly controls, is controlled by, or is under common control
with a party to this Agreement. For purposes of the preceding sentence,
"control" means possession, directly or indirectly, of the power to direct or
cause direction of management and policies through ownership of voting
securities, contract, voting trust or otherwise.

         1.3 "Area of Interest" means an area commonly known as the Hollister
Development Block with the three dimensional coordinates 34,000 E to 40,000
E;35,000 N to 42,000 N; and from surface to 4,000 feet above sea level. (A map
of the Hollister Development Block is attached to this Earn-in Agreement as
Exhibit A).

         1.4 "Assets" means all materials, supplies, equipment, and personal
property required to conduct Earn-in Activities.

         1.5 "Currency", "$", means US dollars unless otherwise stated.

         1.6 "Commercial Production" means greater than or equal to 400 tonnes
mined on average per day over a 21 day calendar period or such longer time as is
consistent with the Feasibility Study.

         1.7 "Default" means a Party's failure to perform its obligations
required under this Earn-in Agreement.

         1.8 "Earn-in Activities" means all activities on or for the benefit of
the Properties giving rise to Earn-in Expenditures which are duly incurred and
paid as herein provided.

         1.9 "Earn-in Agreement" means this Earn-in Agreement together with all
Exhibits and other information appended hereto.

         1.10 "Earn-in Expenditures" means the issuance of the Hecla Mining
Warrants (subject to the issuance of the Great Basin Warrants) and other
expenditures including Assets acquired by Hecla Ventures for Earn-in Activities
for the benefit of the Properties.

         1.11 "Effective Date" means the date set forth on Page 1 of this
Earn-in Agreement.

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         1.12 "Expenditure Commitment" means the minimum sum Hecla Ventures must
spend on Earn-in Expenditures (pursuant to the Expenditure Schedule that is
found in Exhibit E) during each Annual Expenditure Commitment Period.

         1.13 "Expenditure Commitment Period" means each year (set out in the
Expenditure Schedule that is found in Exhibit E and/or an approved Program and
Budget under Section 9.3) during which the corresponding Annual Expenditure
Commitment is to be spent.

         1.14 "Expenditure Schedule" means Exhibit E.

         1.15 "Feasibility Study" means a study of the feasibility of developing
and operating one or more mine(s) on the Properties, including an analysis of
economic, geological, engineering, environmental, regulatory and other
considerations, and containing the level of detail customary in the industry for
a feasibility study presented to financial institutions for the purpose of
seeking and obtaining financing for the development of a mine (with all
estimates developed to an accuracy within +/-10%).

         1.16 "Guarantors" means Great Basin Gold Ltd. ("Great Basin") and Hecla
Mining Company ("Hecla Mining").

         1.17 "Initial Feasibility Study" or "Prefeasibility Study" means a
study of the feasibility of developing and operating a mine on the Properties,
including an analysis of economic, engineering, geological, environmental,
regulatory and other considerations, and containing the level of detail
customary in the industry to determine whether the veins, ore bodies or other
targets identified in Stage I of Earn-in Activities are of sufficient interest
to the Parties to proceed with Stage II of Earn-in Activities (with all
estimates developed to an accuracy within +/-15%).

         1.18 "Operating Agreement" means that agreement, attached to this
Earn-in Agreement as Exhibit F, which is to be effective between Rodeo Creek and
Hecla Ventures upon Hecla Ventures' fulfillment of the requirements set out in
Article V, Section 5.1 of this Earn-in Agreement.

         1.19 "Participating Interest" means the percentage interest of a
Participant in the Properties, Products and all other rights and obligations
arising under this Earn-in Agreement. From the Effective Date hereof through
completion of Earn-in Activities, and only for purposes of implementing Earn-in
Activities, Hecla Ventures and Rodeo Creek shall each be deemed to have a fifty
percent (50%) Participating Interest.

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         1.20 "Parties" means Rodeo Creek and Hecla Ventures and any other
persons or entities that become subject to this Earn-In Agreement in accordance
with the provisions hereof. Great Basin and Hecla Mining are Parties to this
Earn-In Agreement only with regard to their respective obligations:

         (1) as Guarantors under Recitals D and E, and Sections 2.3 and 2.6;

         (2) under Sections 2.4 and 2.7 concerning certain representations and
warranties; and

         (3) to issue their respective Warrants pursuant to Article V and
Exhibits E, G and H.

         1.21 "Participants" means Rodeo Creek and Hecla Ventures.

         1.22 "Payments" means those payments identified in Exhibit E.

         1.23 "Prime Rate" means a prime rate listed in the Wall Street Journal
(source: Federal Reserve).

         1.24 "Products" means all ores, minerals and mineral resources produced
from the Properties under this Earn-In Agreement.

         1.25 Programs and Budgets are as defined under Section 9.3.

         1.26 "Property or Properties" means those interests in real property
and all mineral estates (and portions thereof) therein described in Exhibit A
and all other interests in real property within the Area of Interest which are
made subject to this Agreement subject to the obligations pertaining thereto
under applicable law or pursuant to Underlying Agreements noted on Exhibit A.

         1.27 "Term" means the term of this Earn-in Agreement as defined in
Article III.

         1.28 "Underlying Agreements" means those agreements pursuant to which
Rodeo Creek or any Affiliate holds and interest in the Properties with Newmont
Mining Corp. and certain other parties all of which are more particularly
described in Exhibit A.

All words not defined herein shall first be construed as commonly used in the
mining industry. If there is no such usage in the mining industry then such
words shall be given its common understanding.

                                      -4-
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                                   ARTICLE II
                REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS

         2.1 Capacity. Each of the Parties represents as follows:

                  (a) that it is a corporation duly incorporated and in good
standing in its state or jurisdiction of incorporation and that it is qualified
to do business and is in good standing in those states or jurisdictions where
necessary in order to carry out the purposes of this Earn-in Agreement;

                  (b) that it has the capacity to enter into and perform this
Earn-in Agreement and all transactions contemplated herein and that all
corporate and other actions required to authorize it to enter into and perform
this Earn-in Agreement have been properly taken;

                  (c) that it will not breach any other agreement or arrangement
by entering into or performing this Earn-in Agreement; and

                  (d) that this Earn-in Agreement has been duly executed and
delivered by it and is valid and binding upon it in accordance with its terms.

         2.2 Rodeo Creek's Representations and Warranties. Rodeo Creek
represents and warrants that, with respect to the Properties:

                  (a) Rodeo Creek is in possession of and has the interests in
the Properties as described in Exhibit A and subject to the Underlying
Agreements;

                  (b) To the best of its information and belief and subject to
the paramount title of the United States, (i) the unpatented mining claims were
properly laid out and monumented; (ii) all required location work was properly
performed; (iii) location notices and certificates were properly recorded and
filed with appropriate governmental agencies; (iv) all assessment work has been
performed, or fee payments in lieu thereof made, as required to hold the
unpatented mining claims through the assessment year ending August 31, 2002; (v)
all affidavits of assessment work and other filings required to maintain the
claims in good standing have been properly and timely recorded or filed with
appropriate governmental agencies; (vi) the claims are free and clear of
defects, liens or encumbrances arising by, through or under Rodeo Creek; (vii)
there are no conflicting claims; and (viii) there are no pending or threatened
actions, suits or proceedings involving the mining claims;

                  (c) To the best of its information and belief, the Properties
are free and clear of all defects, liens and encumbrances except for those
specifically identified on Exhibit A hereto and except for those which would not
have a material adverse effect on the usage contemplated herein;

                                      -5-
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                  (d) There is no judgment outstanding or litigation, proceeding
or governmental investigation pending or threatened against Rodeo Creek, or the
Properties, which would have an adverse effect on the title or interest of Rodeo
Creek in or to the Properties or Rodeo Creek's power or right to sell, convey,
transfer or assign the mineral estate on the Properties, nor has Rodeo Creek
received any communication asserting or threatening any adverse claim to any
part of the Properties;

                  (e) Rodeo Creek has made or shall make, pursuant to Article
XVI of this Earn-in Agreement, available to Hecla Ventures all information and
data regarding the existence of minerals within the Properties, and all
information concerning record, possessory, legal or equitable title to the
Properties which is within Rodeo Creek's knowledge, possession or control;

                  (f) To the best of Rodeo Creek's knowledge information and
belief and except as disclosed to the appropriate environmental regulatory
authorities, there has never been any: 1) release, spill, discharge, leak,
emission, escape, dumping or any material release of any kind of any toxic or
hazardous substances as defined under any local, state or federal regulation,
laws or statutes, from, on, in or under Rodeo Creek's Properties or into any
environment surrounding the Properties, except for those releases permissible
under such regulations, laws or statutes or otherwise allowable under applicable
permits; 2) disposal of toxic or hazardous substances or toxic or hazardous
wastes on the Properties or related to the Properties; and, 3) material storage
or treatment of toxic or hazardous substances or toxic or hazardous wastes on,
at, or related to the Properties;

                  (g) To the best of its information and belief, Rodeo Creek is
in compliance in all material respects with all federal, state and local laws,
rules and regulations relating to or affecting the Properties, and has obtained,
maintained in full force and effect, and operated in substantial compliance with
all authorizations, licenses, permits, easements, consents, certificates and
orders of any governmental or regulatory body relating to or affecting the
Properties; and operations of Rodeo Creek and its agents or contractors on, at,
or related to the Properties have not resulted in any violations of federal,
state or local laws, rules, regulations, ordinances or orders which would have
an adverse effect on the usage contemplated herein;

                  (h) There are no existing mineral production or other
royalties of any kind which are payable with respect to the Properties or
mineral substances mined therefrom other than those specifically identified in
Exhibit A;

                                      -6-
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                  (i) Rodeo Creek is not a party to nor has any knowledge of any
existing oral or written agreement of any kind which does or could have any
adverse impact whatsoever on record or possessory title to the mineral estate of
the Properties and/or the access, exploration, development or mining of same;

                  (j) To the best of Rodeo Creek's knowledge, information and
belief there are no existing restrictions which would have any adverse effect on
the right to explore, develop and mine mineral substances from the Properties,
excluding restrictions contained in applicable laws, statutes, regulations,
permits and other agency directives including Bureau of Land Management ("BLM"),
Nevada Division of Environmental Protection ("NDEP") and Traditional Cultural
Property on the Properties, and other Nevada State and Federal agencies;

                  (k) To the best of Rodeo Creek's knowledge, information, and
belief, Rodeo Creek is unaware of any material facts or circumstances, which
have not been disclosed or made available to Hecla Ventures or been deliberately
withheld from Hecla Ventures, which Hecla Ventures should be aware of in order
to prevent the representations in this Section 2.2 from being misleading.

                  (l) Rodeo Creek and its Affiliates shall conduct its other
business activities near, under and adjacent to the Area of Interest in a manner
that does not unreasonably interfere with, hinder or delay Earn-in Activities.

         2.3 Great Basin, on behalf of Rodeo Creek, hereby warrants and
covenants with Hecla Ventures that it does hereby unconditionally and
irrevocably guarantee to Hecla Ventures all of Rodeo Creek's representation,
warranties and obligations hereunder.

         2.4 For Great Basin only, Great Basin represents and warrants, that its
publicly filed corporate disclosure records with regulatory authorities are up
to date and correct in all material respects.

         2.5 Hecla Ventures' represents and warrants that it has or will obtain
the necessary labor and equipment to conduct Earn-in Activities.

         2.6 Hecla Mining, on behalf of Hecla Ventures hereby warrants and
covenants with Rodeo Creek that it does hereby unconditionally and irrevocably
guarantee to Rodeo Creek all of Hecla Ventures' representations, warranties and
obligations hereunder.

                                      -7-
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         2.7 For Hecla Mining only, Hecla Mining represents and warrants that
its publicly filed corporate disclosure record with regulatory authorities is up
to date and correct in all material respects.

         2.8 Materiality of Representations. Al representations warranties and
covenants made in this Article II are material to this Earn-in Agreement and the
Parties' intent in entering into it.

                                   ARTICLE III
                            TERM OF EARN-IN AGREEMENT

         The Term of this Earn-in Agreement shall commence as of the Effective
Date and shall automatically terminate after four (4) years thereof or upon
execution of the Operating Agreement in accordance with Sections 5.5 and 8.3,
unless this Earn-in Agreement is terminated earlier pursuant to Article VIII or
extended by amendment upon the Parties' mutual written agreement.

                                   ARTICLE IV
                           RELATIONSHIP OF THE PARTIES

         4.1 No Partnership. Nothing contained in this Earn-in Agreement shall
be deemed to constitute any Party the partner of another, nor, except as
otherwise herein expressly provided, to constitute any Party the agent or legal
representative of another, nor to create any fiduciary relationship between or
among them. It is not the intention of the Parties to create, nor shall this
Earn-in Agreement be construed to create, any mining, commercial or other
partnership. No Party shall have any authority to act for or to assume any
obligation or responsibility on behalf of the other Party, except as otherwise
expressly provided herein. The rights, duties, obligations and liabilities of
the Parties shall be several and not joint or collective. Each Party shall be
responsible only for its obligations as herein set out and shall be liable only
for its share of the costs and expenses as provided herein, it being the express
purpose and intention of the Parties that their ownership of assets and the
rights acquired hereunder shall be as tenants in common. Each Party shall
indemnify, defend and hold harmless the other Party, its directors, officers,
employees, agents and attorneys from and against any and all losses, claims,
damages and liabilities (including litigation costs and attorneys' fees) arising
out of any act or any assumption of liability by the indemnifying Party, or any

                                      -8-
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of its directors, officers, employees, agents and attorneys done or undertaken,
or apparently done or undertaken, on behalf of any other Party, except pursuant
to the authority expressly granted herein or as otherwise agreed in writing
between the Parties.

         4.2 Federal Tax Elections and Allocations. The Parties agree that their
relationship pursuant to this Earn-in Agreement shall not constitute a tax
partnership within the meaning of Section 761(a) of the United States Internal
Revenue Code of 1986, as amended.

         4.3 State & Provincial Income Tax. The Parties also agree that their
relationship shall be treated for Canadian Federal, U.S. State and Canadian
Provincial income tax purposes in the same manner as it is for U.S. Federal
income tax purposes.

         4.4 Other Business Opportunities. Except as expressly provided in this
Earn-in Agreement, each Party shall have the right independently to engage in
and receive full benefits from business activities, whether or not competitive
with the operations under this Earn-in Agreement, without consulting any other
Party. The doctrines of "corporate opportunity" or "business opportunity" shall
not be applied to any other activity, venture, or operation of any Party, and,
except as otherwise provided in this Earn-in Agreement, no Party shall have any
obligation to any other with respect to any opportunity to acquire any property
at any time.

         4.5 Waiver of Right to Partition. The Parties hereby waive and release
all rights of partition, or of sale in lieu thereof, or other division of
Assets, including any such rights provided by applicable law.

         4.6 Transfer or Termination of Rights to Properties. Except as
otherwise provided in this Earn-in Agreement, no Party shall transfer all or any
part of its interest in the Properties or this Earn-in Agreement or otherwise
permit or cause such interests to terminate.

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

         4.8 Employees. Employees of the respective Parties are not and shall
not be employees of the other Parties or of any venture, which may be comprised
of the Parties.

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                                    ARTICLE V
                              INITIAL CONTRIBUTION

         5.1 Properties and Required Earn-in Expenditures.

                  (a) Rodeo Creek, hereby makes available to Hecla Ventures the
Properties for the purposes of this Earn-in Agreement and all existing technical
data and other information concerning the Properties. Upon receipt of each
Tranche of Hecla Mining Warrants (as defined below) Rodeo Creek will forthwith
issue to Hecla Ventures two year warrants to purchase common shares in Great
Basin ("Great Basin Warrants") as follows: 1) 1 million Great Basin Warrants
upon receipt of Tranche 1 Hecla Mining Warrants; 2) 500,000 Great Basin Warrants
upon receipt of Tranche 2 Hecla Mining Warrants; and 3) 500,000 Great Basin
Warrants upon receipt of Tranche 3 Hecla Mining Warrants. Great Basin Warrants
will be exercisable at the weighted average daily closing prices for the twenty
(20) trading days on the TSX Venture Exchange immediately prior to issuance and
done substantially in accordance with the form Warrant Agreement attached hereto
in Exhibit H.

                  (b) Hecla Ventures hereby agrees to fund one-hundred percent
(100%) of Stage I Earn-in Activities and shall exchange with Great Basin 2
million (2,000,000) two year warrants ("Tranche 1") to purchase Hecla Mining
common stock $0.25 par value exercisable at the weighted average daily closing
prices on the New York Stock Exchange for the twenty (20) trading days
immediately prior to the date of the Warrant Agreement ("Exercise Price") which
for Tranche 1 is also the Effective Date. Hecla Ventures agrees to issue the
Warrants within thirty (30) days after the warrant date to Great Basin as
attached hereto as Exhibit G.

                  (c) Hecla Ventures hereby commits to initiate and fund Stage I
Earn-in Activities on the Effective Date, subject to receipt of Stage I permits,
in an expeditious manner and to complete same on a best efforts diligent basis,
within 24 months of the Effective Date, provided that the Earn-in Activities are
not subjected to a public Environmental Impact Statement (under NEPA) or other
public review and comment process, and to completely fund (100%) of Stage I
(estimated to take approximately twelve (12) months) such Earn-in Activities.
Within sixty (60) days after completion of Stage I Earn-in Activities, Hecla
Ventures must elect to either: (1) proceed with and fund 100% of the estimated
$11.5 million Stage II Program of Earn-In Activities as approved by the

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Management Committee; (2) vest by making the payment to the Joint Venture upon
its actual formation under the Operating Agreement and taking other action as
set forth in section 5.5(b); or (3) elect not to proceed with Stage II and
terminate this Earn-In Agreement. If Hecla Ventures elects to proceed with Stage
II Earn-in Activities or funding in lieu, it will issue one million (1,000,000)
Hecla Mining Warrants ("Tranche 2") dated and priced on the election date,
within ten (10) days thereafter in the form of the Warrant Agreement in Exhibit
G, exercisable at the Exercise Price and in accordance with the terms and
conditions of the Warrant Agreement. If however, Hecla Ventures elects not to
proceed with Stage II of Earn-in Activities or funding in lieu, it shall provide
written notice to Rodeo Creek. Notwithstanding any provision in this Earn-in
Agreement to the contrary, if Hecla Ventures does not notify Rodeo Creek in
writing within the required time of its choice to proceed, or to terminate or
elects not to participate in Stage II Earn-in Activities, it shall have no
further rights or obligations hereunder (except the obligation to reclaim the
Properties for all Earn-in Activities it has conducted) and the Parties shall
execute and record the Termination and Release Agreement in substantially the
same form as Exhibit A, Part IV. To complete the Earn-In Activities, Hecla
Ventures will issue Rodeo Creek an additional one million (1,000,000) two year
warrants (dated and priced on the date that Hecla Ventures gives notice to Rodeo
Creek that Stage II Earn-In Activities are complete or Hecla Ventures elects to
fund Stage II in lieu) to purchase Hecla Mining common stock ("Tranche 3")
exercisable at the Exercise Price and in accordance with the terms and
conditions of the Warrant Agreement. The Tranche 3 Warrants will be issued
within 30 days from the date of the Warrants. After vesting of Hecla Ventures'
Participating Interest, each of the Participants shall be obligated to fund such
activities in accordance with its Participating Interest as defined in Exhibit F
attached hereto and determined thereunder from time to time.

         5.2 Reasonable Earn-in Activities. Hecla Ventures' Earn-in Activities
shall be conducted in accordance with Exhibit E at the direction of the
Management Committee and in accordance with all applicable laws, regulations and
good mining industry standards in the United States.

         5.3 Credit for Excess Earn-in Expenditures. Earn-in Expenditures made
by Hecla Ventures in excess of that required in a given Annual Expenditure
Commitment Period shall be credited to subsequent Annual Expenditure Commitments
for the following Annual Expenditure Commitment Periods.

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         5.4 Completion of Required Earn-in Expenditures. Within thirty (30)
days after completing Earn-in Activities (as provided in Section 5.1 and in
accordance with Exhibit E), Hecla Ventures shall provide notice to Rodeo Creek
that it has completed Earn-in Expenditures. Together with the notice, Hecla
Ventures shall provide sufficient detail and supporting documentation to permit
Rodeo Creek to review, audit and reasonably verify the Earn-in Expenditures.

         5.5 Transfer. Hecla Ventures shall have earned a vested and undivided
Participating Interest in the Properties subject to the Operating Agreement by
completing either of the requirements in subparagraphs (a) OR (b) OR (c) of this
section 5.5:

                  (a) Upon completion of Stage II Earn-in Activities and issuing
Rodeo Creek Tranche 3 Hecla Mining Warrants set forth in Exhibit E and G, Hecla
Ventures shall have a vested right to an undivided fifty percent (50%)
Participating Interest in the Properties effective as of the date Hecla Ventures
provides notice pursuant to Section 5.4 above. Within thirty (30) days after
providing notice verifying that Hecla Ventures has made Earn-in Expenditures
consistent with the requirements of this Article V:

                  (1) Rodeo Creek shall convey to Hecla Ventures an undivided
                  fifty percent (50%) of Rodeo Creek's interest in the
                  Properties, by executing, acknowledging and delivering to
                  Hecla Ventures a good and sufficient conveyance in the form of
                  Exhibit C to this Earn-in Agreement; and,

                  (2) Rodeo Creek and Hecla Ventures shall cause to become
                  effective an Operating Agreement on the Properties in the form
                  of the attached Exhibit F, which 1) shall include the
                  Properties and 2) shall have an effective date as of the date
                  of the above-described notice from Hecla Ventures to Rodeo
                  Creek; and,

                  (3) Rodeo Creek shall issue to Hecla Ventures the Great Basin
                  Warrants set forth in Exhibit E and H.

                  (b) By completing Stage I Earn-In Activities and providing
written notice to Rodeo Creek that Hecla Ventures elects to vest by making a
payment to the Joint Venture in an amount of $21.8 million dollars (U.S.) less
actual costs to complete Stage I of Earn-In Activities (excluding overruns
greater than 10%) of a Management Committee approved Program and Budget; and
issue Rodeo Creek the Tranche 2 and Tranche 3 Hecla Mining Warrants set forth in
Exhibit E and G. Within thirty (30) days after receiving the preceding vesting
payment:

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                  (1)      Rodeo Creek shall convey to Hecla Ventures an
                           undivided fifty percent (50%) of Rodeo Creek's
                           interest in the Properties, by executing,
                           acknowledging and delivering to Hecla Ventures a good
                           and sufficient conveyance in the form of Exhibit C to
                           this Earn-in Agreement; and,

                  (2)      Rodeo Creek and Hecla Ventures shall cause to become
                           effective an Operating Agreement on the Properties in
                           the form of the attached Exhibit F, which 1) shall
                           include the Properties and 2) shall have an effective
                           date as of the date of the above-described notice
                           from Hecla Ventures to Rodeo Creek; and

                  (3)      Rodeo Creek shall issue to Hecla Ventures the Great
                           Basin Warrants set forth in Exhibit E and H.

                  (c) By Hecla Ventures completing Stage I and thereupon
completing either Stage II of Earn-in Activities and achieving Commercial
Production; and in either such event issuing Rodeo Creek the Tranche 2 and
Tranche 3 Warrants;

                  (1)      Rodeo Creek shall convey to Hecla Ventures an
                           undivided fifty percent (50%) of Rodeo Creek's
                           interest in the Properties by executing,
                           acknowledging and delivering to Hecla Ventures a good
                           and sufficient conveyance in the form of Exhibit C to
                           this Earn-in Agreement; and,

                  (2)      Rodeo Creek and Hecla Ventures shall cause to become
                           effective an Operating Agreement on the Properties in
                           the form of the attached Exhibit F, which 1) shall
                           include the Properties and 2) shall have and
                           effective date as of the date of the above described
                           notice from Hecla Ventures to Rodeo Creek; and

                  (3)      Rodeo Creek shall issue to Hecla Ventures the Great
                           Basin Warrants set forth in Exhibit E and H.

                                   ARTICLE VI
                    MAINTENANCE AND ABANDONMENT OF PROPERTIES

         6.1 Maintenance of Properties. Hecla Ventures as Manager shall take all
steps necessary to maintain at its expense, as part of the Earn-in Activities,
of the Properties (pursuant to the Underlying Agreements and all general legal
requirements relating thereto) all necessary payments on the Properties to
maintain them in good standing during the Term of this Earn-in Agreement.

                                      -13-
<PAGE>

         6.2 Assessment Work or Fees. During the term of this Earn-in Agreement,
Hecla Ventures as Manager shall also perform any annual assessment work required
to maintain such claims for any assessment year in which this Earn-in Agreement
has not expired or been terminated prior to thirty (30) days before the end of
such assessment year, and will make annual fee payments required to maintain
unpatented (or patented) mining claims included in the Properties for any
assessment year in which this Earn-in Agreement has not expired or been
terminated forty-five (45) days prior to the fee payment due date. Hecla
Ventures shall timely record, file and furnish to Rodeo Creek affidavits of such
performance and evidence of fee payment. Excepting for the August 2002
Properties filings and amounts due shall be paid by and filed by Rodeo Creek.
These 2002 amounts shall be reimbursed by Hecla Ventures to Rodeo Creek as part
of Earn-in Activities, within thirty (30) days of receipt of invoice from Rodeo
Creek. No Party shall be liable on account of holdings by any court or
governmental agency that the effects of any work elected and performed in good
faith by such Party are insufficient to constitute annual assessment work for
purposes of preserving title to such claims, provided that the work so done is
of the kind generally accepted as assessment work in the mining industry in the
United States and provided that such Party expended a total amount sufficient to
meet any minimum requirements during the required period of time with respect to
all such unpatented claims.

         6.3 Abandonment of Properties. If either Participant desires to
abandon, release or surrender its rights to a part of the Properties at any
time, it shall notify the other Participant and offer to convey to the other
Participant at no cost the part of those parts of the Properties it intends to
abandon, release or surrender. If the other Participant does not accept the
offer within thirty (30) days of the notice, the notifying Participant may
abandon, release, or surrender that part of those Properties without liability
or obligation to the other Participant for such abandonment, release or
surrender but any liability for reclamation or to any third party arising before
such event shall be unaffected. Properties that are abandoned, released,
surrendered, or conveyed to the other Participant pursuant to this Section 6.3
shall cease to be part of the Properties and the Area of Interest.

                                      -14-
<PAGE>

                                   ARTICLE VII
                                AREA OF INTEREST

         7.1 Proposed Acquisition of Properties. If during the Term of this
Earn-in Agreement, a Party or an Affiliate of any Party should acquire any
interest in real property (including any mineral interest or estate therein)
within the boundary of the Area of Interest, it shall notify the other Party
(referred to in this Article VII as "Other Party") within ten (10) days after
the acquisition and shall include in the notice a description of the interest in
real property and a statement of the total acquisition cost and any committed
work expenditures.

         7.2 Election to Acquire Properties. The Other Party shall have a period
of thirty (30) days from receipt of such notice under Section 7.1 within which
to elect to subject the interest in real property to this Earn-in Agreement. If
a Participant elects to include the interest to this Earn-in Agreement, it shall
notify the other Participant and the interest in real property shall become a
part of the Properties subject to this Earn-in Agreement.

         7.3 Excluded Acquisition. If the Other Party elects not to subject the
real property or interest in real property to this Earn-in Agreement during the
thirty (30) day period referenced in Section 7.1, the acquiring party shall hold
it free and clear of this Earn-in Agreement, and it will not be a part of the
Properties or the Area of Interest.

                                  ARTICLE VIII
                           WITHDRAWAL AND TERMINATION

         8.1 Termination. This Earn-in Agreement shall terminate as expressly
provided herein, unless earlier terminated by written agreement. Withdrawal by
Hecla Ventures in accordance with Section 8.2 shall be deemed to terminate this
Earn-in Agreement.

         8.2 Hecla Ventures' Election to Withdraw and Terminate. Hecla Ventures
may withdraw from and terminate this Earn-in Agreement at any time subject to
its reclamation obligations herein provided and subject to Hecla Ventures
commitment to fund the estimated budget and program of the Stage I Earn-in
Activities. To withdraw, Hecla Ventures must provide Rodeo Creek with written
notice of withdrawal. The withdrawal shall be effective thirty (30) days after
the date the notice of withdrawal is sent to Rodeo Creek. Upon such withdrawal
and termination:

                  (a) This Earn-in Agreement shall terminate; and

                                      -15-
<PAGE>

                  (b) Hecla Ventures shall quitclaim in favour of Rodeo Creek
any rights hereunder and shall ensure there are no liens or encumbrances on
Properties arising out of its Earn-in Activities hereunder. Hecla Ventures shall
thereupon have no further right, title, or interest in or to, the Properties, in
accordance with Article X of this Earn-in Agreement and any Real Property,
subject always to Hecla Ventures' obligations hereunder.

                  (c) Hecla Ventures shall make available all factual
exploration data, chips, core and rejects not previously provided to Rodeo
Creek. Hecla Ventures shall leave all Assets in reasonable working condition,
normal wear and tear excepted and will promptly remove all materials, supplies
and refuse as required by applicable laws and regulations from the Properties.
Rodeo Creek shall have the election respecting any Assets, the costs of which or
title to which have been included in the Earn-in Activities (such election to
made on 60-days' notice) to either require the conveyance of such Assets to
Rodeo Creek at no cost or to require their removal by Hecla Ventures. Hecla
Ventures shall be under no obligation to supply any interpretive reports or
conclusions of any type pertaining to the Properties.

         8.3 Termination Upon Execution and Delivery of Operating Agreement. If
not terminated earlier, this Earn-in Agreement shall terminate upon the
Operating Agreement pursuant to Section 5.5, becoming effective.

         8.4 Termination for Hecla Ventures' Failure to Make Annual Expenditure
Commitment. This Earn-in Agreement may be terminated by Rodeo Creek if Hecla
Ventures shall not have completed its Annual Expenditure Commitment on or before
the close of business on the last day of the Annual Expenditure Commitment
Period. Rodeo Creek shall provide notice thereof to Hecla Ventures in accordance
with Section 17.1, and Hecla Ventures shall have a period of ninety (90) days in
which to resolve or dispute any good faith unintended shortfall in the amount of
its Annual Expenditure Commitment. Any such termination shall not relieve Hecla
Ventures of its obligations hereunder and shall have the same effect as a
termination under Section 8.2.

         8.5 Removal of Property. Hecla Ventures shall have a period of ninety
(90) days following the effective date of termination or expiration of this
Earn-in Agreement (unless the Operating Agreement has been entered into or Rodeo
Creek exercises its option to acquire at no cost any Assets, the costs of which
or title to which have been included in the Earn-in Activities) to remove at its
sole cost and expense all equipment, machinery, inventory or supplies and it
will so remove them.

                                      -16-
<PAGE>

         8.6 Termination and Release Agreement. Upon the completion of the
procedures under this Article VIII and the reclamation obligations in Article X
Hecla Ventures and Rodeo Creek shall execute the Termination and Release
Agreement under Exhibit A.

                                   ARTICLE IX
                            OPERATIONS AND GOVERNANCE

         9.1 Management Committee.

         (a) Organization and Composition. Rodeo Creek and Hecla Ventures (the
"Participants") hereby establish a Management Committee consisting of four (4)
members to determine overall policies, objectives, procedures, methods and
actions under this Agreement. The Management Committee shall consist of two
member(s) appointed by Rodeo Creek and two member(s) appointed by Hecla
Ventures. Each Participant may appoint one or more alternates to act in the
absence of a regular member. Any alternate so acting shall be deemed a member.
Appointments shall be made or changed by notice to the other Participant prior
to the meeting at which the member is to act.

         (b) Decisions. Each Participant, acting through its appointed members,
shall have one vote on the Management Committee. All decisions by the Management
Committee shall be made by majority vote. In the event of a deadlock on a
proposed Program and Budget or on any other management matters relating to this
Earn-in Agreement then the issue along with written reasons by each Participant
shall be given to the respective Presidents of the Participants for a period of
up to twenty-one (21) calendar days for them to discuss, document and resolve;
thereafter, a Management Committee meeting shall be reconvened within fourteen
(14) calendar days and after taking into consideration the Presidents' resolve
or unresolve, as documented, a new vote taken. If the vote is still deadlocked,
Manager shall have the deciding vote (after documenting reasons).

         (c) Meetings. The Management Committee shall hold regular meetings at
least quarterly at a place to be designated by the Manager, or at other mutually
agreed places. The Manager shall give 30 days' notice to the Participants of
such regular meetings. Additionally, either Participant may call a special
meeting upon 15 days' notice to the Manager and the other Participant. In case
of an emergency, reasonable notice of a special meeting to consider the
emergency matter only shall suffice. There shall be a quorum if at least one
member representing each Participant is present in person or by conference
telephone; provided, however, that if a quorum is not present, those members in

                                      -17-
<PAGE>

attendance may adjourn the meeting to the same time and place seven days later,
and provided further that a quorum shall be deemed present at the adjourned
meeting if at least one Participant is represented. Each notice of a regular
meeting shall include an itemized agenda prepared by the Manager in the case of
a regular meeting, or by the Participant calling the meeting in the case of a
special meeting, but any matters may be considered in any type of meeting with
the consent of all Participants. The Manager shall prepare minutes of all
meetings and shall distribute copies of such minutes to the Participants within
10 days after the meeting. The minutes, when signed by all Participants, shall
be the official record of the decisions made by the Management Committee and
shall be binding on the Manager and the Participants. If the Manager's personnel
are required to physically (rather than by phone) attend a Management Committee
meeting, reasonable costs incurred in connection with such attendance shall be
reimbursed to the Manager in accordance with the Accounting Procedure (Exhibit
B). All other costs of attendance shall be paid by the Participants
individually.

         (d) Action Without Meeting. In addition to or in lieu of meetings, the
Management Committee may hold telephone conferences as long as no Participant's
representative objects and so long as all decisions are immediately confirmed in
writing by the Participants.

         (e) Matters Requiring Approval. Except as otherwise delegated to the
Manager in Section 9.2, the Management Committee shall have exclusive authority
to determine all management matters related to this Agreement.

         9.2 Manager.

                  (a) Appointment. The Participants hereby appoint Hecla
Ventures as the Manager with management responsibility for Earn-in Activities.
Hecla Ventures hereby agrees to serve until it resigns as provided in Section
9.2(d).

                  (b) Powers and Duties of Manager. Subject to the terms and
provisions of this Agreement, the Manager shall have the following powers and
duties and obligations which shall be discharged in accordance with adopted
Programs and Budgets:

                           (1) The Manager shall manage, direct and control
Earn-in Activities and shall prepare and present to the Management Committee
proposed Programs and Budgets as provided in Section 9.3 of this Earn-in
Agreement.

                           (2) The Manager shall implement the decisions of the
Management Committee, shall make all expenditures necessary to carry out adopted
Programs, and shall promptly advise the Management Committee if Manager lacks
sufficient funds to carry out its responsibilities under this Agreement. If
Hecla Ventures is the Manager, lack of sufficient funds shall be deemed a
default hereunder.

                                      -18-
<PAGE>

                           (3) The Manager shall: (i) purchase or otherwise
acquire all material, supplies, equipment, water, utility and transportation
services required for Earn-in Activities, such purchases and acquisitions to be
made on the best terms available, taking into account all circumstances; and
(ii) obtain such customary warranties and guarantees as are available in
connection with such purchases and acquisitions.

                           (4) The Manager shall: (i) make or arrange for all
payments required by leases, subleases, surface use agreements, licenses,
permits, contracts and other agreements related to the Assets and Properties;
(ii) pay all taxes, assessments and like charges on Earn-in Activities except
taxes determined or measured by a Participant's sales revenue or net income; and
(iii) do all other acts reasonably necessary to maintain unencumbered title to
and good condition of the Assets and the Properties. The Manager shall have the
right to contest in the courts or otherwise, the validity or amount of any
taxes, assessments or charges if the Manager deems them to be unlawful, unjust,
unequal or excessive, or to undertake such other steps or proceedings as the
Manager may deem reasonably necessary to secure a cancellation, reduction,
readjustment or equalization thereof before the Manager shall be required to pay
them, but in no event shall the Manager permit or allow title to the Assets and
Properties to be lost as the result of the nonpayment of any taxes, assessments
or like charges.

                           (5) The Manager shall in the name of Rodeo Creek: (i)
apply for all necessary permits, licenses and approvals; (ii) comply with
applicable federal, state and local laws and regulations; (iii) notify promptly
the Management Committee of any allegations of substantial violation thereof;
and (iv) prepare and file all reports or notices required for Earn-in
Activities. The Manager shall not be in breach of this provision if a violation
has occurred in spite of the Manager's good faith efforts to comply, and the
Manager has timely cured or disposed of such violation through performance, or
payment of fines and penalties.

                           (6) The Manager shall prosecute and defend, but shall
not initiate without consent of the Management Committee, all litigation or
administrative proceedings arising out of Earn-in Activities. The non-managing
Participant shall have the right to participate, at its own expense, in such
litigation or administrative proceedings. The non-managing Participant shall
approve in advance any settlement involving payments, commitments or obligations
in excess of $100,000 in cash or value, unless part of an approved Program and
Budget.

                                      -19-
<PAGE>

                           (7) The Manager shall provide insurance for the
Earn-in Activities as provided in Exhibit B1.

                           (8) The Manager may dispose of Assets or Properties
only with authorization from the Management Committee but may dispose of
Properties only with the authorization of all of the Participants.

                           (9) The Manager shall have the right to carry out its
responsibilities hereunder through agents, Affiliates or independent contractors
but shall nevertheless remain responsible for the proper carrying out of such
responsibilities.

                           (10) The Manager shall perform or cause to be
performed during the term of this Agreement all assessment and other work or pay
fees or rental payments required by law in order to maintain any unpatented
mining claims that are included in the Properties. The Manager shall have the
right to perform any assessment work pursuant to a common plan of Exploration,
Development, Construction, Operating or Reclamation and continued actual
occupancy of such claims and sites shall not be required. The Manager shall not
be liable on account of any determination by any court or governmental agency
that work performed by the Manager does not constitute required annual
assessment work or occupancy for the purposes of preserving or maintaining
ownership of the claims, provided that any work done is in accordance with the
adopted Program and Budget. The Manager shall timely record with the appropriate
county and file with the appropriate United States agency, affidavits in proper
form attesting to the performance of assessment work or notices of intent to
hold in proper form, and allocating therein, to or for the benefit of each
claim, at least any minimum amount, if any, required by law to maintain such
claim or site.

                           (11) If authorized by the Management Committee, the
Manager may: (i) locate mine facilities, mill site or tunnel site, (ii) apply
for patents or mining leases or other forms of mineral tenure for any such
unpatented claims or sites, (iii) convert any unpatented claims or mill sites
into one or more leases or other forms of mineral tenure pursuant to any federal
law hereafter enacted.

                                      -20-
<PAGE>

                           (12) The Manager shall keep and maintain all required
accounting and financial records pursuant to the Accounting Procedure and in
accordance with customary cost accounting practices in the mining industry.

                           (13) At all reasonable times the Manager shall
provide the Management Committee or the representative of any Participant, upon
the request of any member of the Management Committee, access to, and the right
to inspect, audit and copy all maps, drill logs, core tests, reports, surveys,
assays, analyses, production reports, operations, technical, accounting and
financial records, and other information acquired in Earn-in Activities; such
information will be provided to the Management Committee at the cost set forth
in the Accounting Procedure and if additional copies are required by a
Participant, they will be paid for by that Participant. In addition, the Manager
shall allow the non-managing Participant, at the latter's sole risk and expense,
and subject to reasonable safety regulations, to inspect the Assets and Earn-in
Activities at all reasonable times, so long as the inspecting Participant does
not unreasonably interfere with Earn-in Activities.

                           (14) The Manager shall prepare or have prepared and
submit to the Management Committee a report containing a description and
analysis of the methods and costs and all other relevant aspects of reclaiming
the Properties pursuant to the requirements of applicable laws, rules and
regulations governing the reclamation of Earn-in Activities on the Properties,
the purpose of which shall be to establish a fund to finance costs and expense
anticipated to be incurred in connection with the reclamation or reclamation
bonding of the Properties. The Management Committee shall determine, based upon
the reclamation report, the total cost, including capital budget, which the
Management Committee reasonably estimates will be required to reclaim the
Properties, including a schedule of the timing of the capital requirements for
such purpose, and shall promptly establish a reclamation fund to meet such
capital requirements and any bonding or financial assurance requirements. The
reclamation fund for Earn-in Activities shall be funded entirely by contribution
of Hecla Ventures. The amounts determined by the Management Committee for
Purposes of funding the reclamation fund shall be included in the applicable
Programs and Budgets for the related periods. Manager may withhold a portion of
proceeds from sale of Products in an amount sufficient to meet expected
reclamation and expenditures as approved by the Management Committee.

                                      -21-
<PAGE>

                           (15) The Manager may conduct environmental audits or
reviews on an annual or as needed basis, and the cost and expense of such audits
or reviews shall be charged to Hecla Ventures.

                           (16) Manager shall make withholdings from payments to
Participants that are required by applicable law.

                           (17) The Manager shall undertake all other activities
reasonably necessary to fulfill the foregoing.

                  (c) Standard of Care. The Manager shall conduct all Earn-in
Activities in a good, workmanlike, safe and efficient manner, in accordance with
sound mining and other applicable industry standards and practices, and in
accordance with the terms and provisions of leases, subleases, licenses,
permits, plans of operation, contracts, Underlying Agreements, and other
agreements pertaining to Assets and Properties. The Manager shall not be liable
to the non-managing Participant for any act or omission resulting in damage or
loss to the other Participants except to the extent caused by or attributable to
the Manager's bad faith conduct, willful misconduct, or gross negligence.

                  (d) Resignation; Deemed Offer to Resign. If Hecla Ventures
resigns or is deemed to resign as Manager, (voluntary resignation may only be
made upon three months' prior written notice to the other Participant) prior to
completion of its Earn-In Activities without the consent of Rodeo Creek, this
Earn-In Agreement will be deemed to have terminated subject to the provisions of
withdrawal and termination in Article 8. If any of the following shall occur,
the Manager shall be deemed to have offered to resign, which offer shall be
accepted by the other Participant, if at all, at any time within ninety (90)
days following such deemed offer:

                           (1) Manager terminates this Agreement pursuant to
Article VIII; or

                           (2) The Manager fails to perform or in good faith,
commence a material obligation imposed upon it under this Agreement and action
to cure said failure is not initiated within thirty (30) days after notice from
the other Participant demanding performance; or

                           (3) The Manager fails to pay or contest in good faith
its debts within sixty (60) days after they are due; or

                           (4) A receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for a substantial part of its assets
is appointed and such appointment is neither made ineffective nor discharged
within sixty (60) days after the making thereof, or such appointment is
consented to, requested by, or acquiesced in by the Manager; or

                                      -22-
<PAGE>

                           (5) The Manager fails generally to pay its debts as
such debts become due; or takes corporate or other action in furtherance
thereto; or

                           (6) Entry is made against the Manager of a judgment,
decree or order for relief affecting a substantial part of its assets by a court
of competent jurisdiction in an involuntary case commenced under any applicable
bankruptcy, insolvency or other similar law of any jurisdiction now or hereafter
in effect.

                  (e) Payments to Manager. The Manager shall be compensated a
fee for its services and reimbursed for its costs hereunder in accordance with
the Accounting Procedure.

                  (f) Transactions With Affiliates. If the Manager engages
Affiliates to provide services hereunder, it shall do so on terms in accordance
with the Accounting Procedure.

         9.3 Programs and Budgets.

                  (a) Operations Pursuant to Programs and Budgets. Except as set
forth in Sections 9.2(b)(6), 9.3(g) and 9.3(h), Earn-in Activities shall be
conducted, expenses shall be incurred, and Assets shall be acquired only
pursuant to adopted Programs and Budgets.

                  (b) Types of Programs. Five general types of Programs may be
proposed: Exploration, Development, Construction, Operating and Reclamation
Programs.

                           (1) An "Exploration Program" shall be a Program
conducted within the Area of Interest, and it shall include but not be limited
to geological mapping, geochemical sampling, geophysical surveys, drilling, bulk
sampling and other such work expended to ascertain the existence, location,
quantity and quality of deposits of Products within the Area of Interest.

                           (2) A "Development Program" shall be a Program
conducted within the Area of Interest that shall include but not be limited to
drilling, test mining, preparing any Feasibility Study, other than the
Prefeasibility Study, and other such work in preparation for the removal and
recovery of Products within the Area of Interest, but does not encompass, by
itself, construction, operation, maintenance and attendant activities designed
to bring a Mine into production in reasonable commercial quantities.

                           (3) A "Construction Program" shall be a Program
conducted within the Area of Interest that is designed to bring a Mine into
production in reasonable commercial quantities, and that provides for its
subsequent operation. It shall include but not be limited to engineering and
design work, and work expended toward development of deposits of Products, as
well as construction, operation, maintenance, mine expansions, ore definition,
mill/processing scenarios, including a proposed alternative, time schedule for
Construction Program and attendant activities.

                                      -23-
<PAGE>

                           (4) An "Operating Program" shall be a Program
conducted with the Area of Interest that is designed to operate a Mine in
reasonable commercial quantities as defined by Commercial Production and at the
onset in conformance with the Feasibility Study, mine operating permit(s) or
other objective document(s). It shall include mining, transportation,
engineering, geology, milling (on-site or off-site) of deposits and related
Products.

                           (5) A "Reclamation Program" shall be a Program
conducted with the Area of Interest that shall include but not be limited to
reclaiming disturbed lands, water quality monitoring and treatment, if required,
disposal of Assets and other attendant activities in accordance with applicable
laws, regulations and permit requirements to reclaim and close a mine.

                  (c) Preparation, Presentation and Content of Programs and
Budgets.

                           (1) Content of Programs. Proposed Programs and
Budgets shall be prepared by the Manager. Each Program shall be accompanied by
and include a corresponding Budget and shall designate precisely the area on
which Earn-in Activities are to be performed, describe work to be performed, and
state the estimated period of time required to perform the work. Each Program
shall state whether it is an Exploration, Development, Construction, Operating,
or Reclamation Program.

                           (2) Content of Budgets. Each Budget shall be prepared
in reasonable detail and shall set forth each expenditure of $50,000 or more for
a budgeted item which, under generally accepted accounting treatment, would be
capitalized. Each Budget Program, as near as is practicable, shall show the
estimated expenditures for each month covered by the Budget period.

                           (3) Initial Program and Budget. The Management
Committee approved Initial Program and Budget is attached hereto in Exhibit E.

                           (4) Duration. An Exploration, Operating and
Reclamation Programs and Budget is anticipated to be for a period of one
calendar year from date of commencement. A Development or Construction Program
and Budget is anticipated to extend for a period of at least one year, but may
extend for such longer period as is reasonably necessary to complete the
Program, but in no event (save force majeure) longer than two years.

                                      -24-
<PAGE>

                           (5) Review. Each adopted Program and Budget,
regardless of length, shall be reviewed at least quarterly (supported by
detailed reports of costs and technical progress) at a regular meeting of the
Management Committee. During the period encompassed by any Program and Budget,
and at least two months prior to its expiration, a proposed Program and Budget
for the succeeding period shall be prepared by the Manager and submitted to the
Participants.

                  (d) Submittal and Approval of Proposed Programs and Budgets.

                           (1) Submittal of Manager's Program and Budget. Within
30 days after the Manager submits a proposed Program and Budget to the
Management Committee, the non-managing Participant shall submit to the
Management Committee:

                                    (i) Notice that the non-managing Participant
         approves of the Program and Budget; or

                                    (ii) Proposed modifications of the proposed
         Program and Budget, which shall include detailed specific objections
         regarding the proposed Program and Budget.

If a non-managing Participant fails to give either of the foregoing responses
within the allotted time, the failure shall be deemed an approval by the
non-managing Participant of the Manager's proposed Program and Budget. If a
non-managing Participant makes a timely submission to the Management Committee
pursuant to Section 9.3(d)(ii), then the Management Committee shall within the
following 30 days meet to consider the proposed Program and Budget and proposed
modifications. At that meeting, the Management Committee shall seek to develop a
Program and Budget acceptable to both the Participants. Failing approval by a
majority vote, the Participants shall follow the decision making process set
forth in Section 9.1(b).

                           (2) Feasibility Study. Any Participant may propose to
the Management Committee at any time that a Feasibility Study, evaluating the
feasibility of opening or expanding a mine on a particular area of the
Properties be conducted on behalf of Hecla Ventures. If the Management Committee
does not approve of the preparation of such Feasibility Study, then the
Participant proposing it may cause such Feasibility Study to be prepared at its
sole expense. Promptly upon completion of the Feasibility Study, the Participant
preparing it shall present it to the Management Committee for evaluation.

                                      -25-
<PAGE>

                  (e) Subsequent Programs. A subsequent Program relating to an
area for which a prior Program has been adopted under the provisions of this
Article IX may be proposed and conducted pursuant to this Agreement.

                  (f) Budget Overruns; Program Changes. The Manager shall
immediately notify the Management Committee of any material departure including
documented reasons, from an adopted Program and Budget. If the Manager exceeds
an adopted Budget by more than ten per cent (10%), then the excess over ten per
cent (10%), unless directly caused by an emergency expenditure made pursuant to
Section 9.3(h), due to unforeseen events beyond the reasonable control or
anticipation of the Manager, or unless otherwise authorized by the Management
Committee, shall be for the sole account of the Manager and such excess shall
not be included in the calculations of the Participating Interests. Budget
overruns of ten per cent (10%) or less shall be acceptable to form part of the
Earn-In Expenditures.

                  (g) Emergency Expenditures. In case of emergency, the Manager
may take any reasonable action it deems necessary to protect life, limb or
property, to protect the Assets or to comply with law or government regulation.
The Manager shall promptly notify the Participants of the emergency expenditure,
and the Manager shall be reimbursed by Hecla Ventures for all resulting costs
(if the Manager is other than Hecla Ventures).

                  (h) Interim Program and Budget. If the Management Committee
for any reason has failed to adopt a Program and Budget to succeed an expiring
or completed prior Program and Budget, the Manager shall continue operations at
levels necessary to maintain the Assets and to comply with any and all legal
obligations.

         9.4 Accounts and Settlements.

                  (a) Monthly Statements. The Manager shall promptly submit to
the Management Committee monthly statements of accounts (costs and activities)
reflecting in reasonable detail the Earn-in Activities during the preceding
month, including a written report of activities, progress and results.

                  (b) Cash Calls. On the basis of the adopted Program and
Budget, the Manager, if other than Hecla Ventures, shall submit to Hecla
Ventures prior to the 15th day of each calendar month, a billing for the
Manager's Fee due to Manager pursuant to section 9.2(e) for the preceding month.
Within ten (10) days after receipt of each billing, Hecla Ventures shall advance
to the Manager payment for the Manager's Fee.

                                      -26-
<PAGE>

                  (c) Failure to Meet Cash Calls. If Hecla Ventures fails to
meet cash calls in the amount and at the times specified in Section 9.4(b) shall
be in default, and the amounts of the defaulted cash call shall bear interest
from the date due at an annual rate equal to the Prime Rate plus 5%, but in no
event shall said rate of interest exceed the maximum permitted by law, nor be
included as part of Earn-in Activities.

                  (d) Audits. Upon request made by any Participant within 12
months following the end of any calendar year (or, if the Management Committee
has adopted an accounting period other than the calendar year, within 12 months
after the end of such period), the Manager shall order an audit of the
accounting and financial records for such calendar year (or other accounting
period). All written exceptions to and claims upon the Manager for discrepancies
disclosed by such audit shall be made not more than three months after receipt
of the audit report. Failure to make any such exception or claim within the
three-month period shall mean the audit is correct and binding upon the
Participants. The audits shall be conducted by a firm of certified public or
chartered accountants selected by the Manager, unless otherwise agreed by the
Management Committee.

         9.5 Parameters for Hecla Ventures' Earn-in Activities. During the Term
of this Earn-in Agreement, Hecla Ventures shall act in accordance with direction
from the Management Committee but Hecla Ventures shall be solely responsible for
conducting at its expense the specific manner and method of the Earn-in
Activities described in Exhibit E, including, without limitation, mineral
exploration, development, test mining and processing activities, drilling,
blasting, assaying, modeling, engineering, geophysics, geochemistry, hydrology,
metallurgy, metallurgical and environmental test work or other test work,
process testing, permitting, regulatory compliance, evaluation, performance and
preparation of a Feasibility Study, and all other activities incidental to or
arising therefrom, on or for the benefit of the Properties, regardless of where
such activities may be conducted. Hecla Ventures may recover and process a
reasonable amount of ore and other material from the Properties for testing
purposes during Earn-In-Activities and may conduct such testing on or off the
Properties. Proceeds from all Products produced from the Area of Interest during
the term of this Earn-In Agreement (estimated to approximate 40,000 tons at a
grade of 1.29 oz Au and 7 oz Ag diluted by 50% for a total tonnage of 60,000
tons; equivalent gold ounces produced expected to approximate 53,000 ozs) shall
be distributed one hundred percent (100%) to Hecla Ventures up to Hecla
Ventures' actual costs of Stage I and Stage II Earn-in Activities plus fifteen
percent (15%). Any excess amounts shall be distributed based on the deemed
Participating Interests of the Parties.

                                      -27-
<PAGE>

         9.6 Surface and Surface Facilities. Subject to approval of the
Management Committee and compliance with Underlying Agreements and applicable
law, including Newmont Mining Company reclamation agreement on the Reclaim Area
as described in Exhibit A, Hecla Ventures shall have the right without further
consideration, to use as much of the surface and any surface facilities owned or
controlled by Rodeo Creek, or on lands within the Area of Interest that are both
owned or controlled by Rodeo Creek and made subject to this Earn-in Agreement.
Hecla Ventures shall have the right to make other surface use arrangements only
upon authorization from the Management Committee and subject to compliance with
Newmont Mining Company reclamation activities on the Properties.

         9.7 Compliance With Laws and Agreements. Hecla Ventures' Earn-in
Activities on the Properties shall be conducted in compliance with all
applicable laws, statutes, regulations, Underlying Agreements (specified on
Schedule A as they may be augmented from time to time pursuant to the terms
hereof) and this Earn-in Agreement.

                                    ARTICLE X
                             RECLAMATION OBLIGATIONS

         Hecla Ventures shall comply with all laws and regulations of the State
of Nevada and the United States of America as they pertain to reclamation
obligations and Hecla Ventures shall fund and at Hecla Ventures' election,
either contract out or carry out these reclamation obligations relating to or
arising out of Earn-in Activities on the surface and subsurface of the Area of
Interest. If Rodeo Creek elects to continue activities on the Area of Interest
for greater than one year from the date of Termination by Hecla Ventures and
elects not to have reclamation activities undertaken at that time, then an
independent third party's determination of the reclamation liability for
Earn-In-Activities will be obtained. Based on the determination of the
reclamation liability ("DRL") for Earn-In-Activities then the following shall
occur:

         (1)      if the reclamation fund ("RF") equals the DRL than no monies
                  shall be removed from the RF and Hecla Ventures shall be
                  released of all further reclamation obligations under this
                  Earn-In-Agreement and the Parties shall execute the
                  Termination and Release Agreement in Part III of Exhibit A; or

                                      -28-
<PAGE>

         (2)      if the RF is less than the DRL than Hecla Ventures shall
                  contribute 100% of the deficiency; or

         (3)      if the RF is greater than the DRL than any unused portion of a
                  reclamation fund (funded during or on termination of the
                  Earn-in Activities) remaining after reclamation of the area(s)
                  or upon payment to Rodeo Creek of the DRL to which the
                  reclamation fund relates shall be distributed to Hecla
                  Ventures to the extent Hecla Ventures has not recouped 115% of
                  the actual costs of Stage I and Stage II Earn-in Activities,
                  otherwise distributed to the Participants based on their
                  respective Participating Interest at time of disbursement.

         In the event of (1), (2) or (3) above, then Rodeo Creek shall be fully
responsible for the DRL and Hecla Ventures shall be released of all further
reclamation obligations. Hecla Ventures acknowledges that certain areas of the
Properties are undergoing reclamation. Hecla Ventures agrees to coordinate its
Earn-in Activities with Rodeo Creek's reclamation and permitting activities and
Rodeo Creek's reclamation activities with Newmont Mining Company, and dealings
with BLM, NDEP and Traditional Cultural Properties and Resources and other
government agencies.

         Nothing in this Earn-in Agreement shall require or be interpreted as
requiring Hecla Ventures to perform any reclamation or pay any part of
reclamation costs associated with conditions resulting from any activities on
the Properties conducted by any other person or entity other than Hecla
Ventures.

                                   ARTICLE XI
                         REPORTING, INSPECTION AND AUDIT

         Hecla Ventures shall keep Rodeo Creek advised of all Earn-in Activities
during the term of this Earn-in Agreement by making available to Rodeo Creek all
Area of Interest data and information within a reasonable time but no more than
thirty (30) days after such data and information is available to Hecla Ventures;
if such information is material to Rodeo Creek then Hecla Ventures will provide
it promptly to Rodeo Creek. In addition, Rodeo Creek's employees, agents and
representatives (at Rodeo Creek's sole risk and expense and subject to
reasonable safety regulations) shall have the right to inspect and to audit

                                      -29-
<PAGE>

Hecla Ventures' activities on and with respect to the Properties and all
documents, records, accounts and other data at all reasonable times, so long as,
Rodeo Creek's employees, agents and representatives do not unreasonably
interfere with Earn-in Activities. Hecla Ventures shall provide Rodeo Creek
detailed reports within fifteen (15) days following the end of each calendar
month that summarize Hecla Ventures' Earn-in Activities for each month and a
schedule of plans for the forthcoming month.

                                   ARTICLE XII
                                   MEMORANDUM

         Hecla Ventures and Rodeo Creek shall execute and record a memorandum of
this Earn-in Agreement in substantially the form of Exhibit D, which shall not
disclose financial or other proprietary information contained herein, in a form
sufficient to constitute record public notice of the rights granted by this
Earn-in Agreement in the county or counties in which the Properties are
situated. This Earn-in Agreement shall not be recorded.

                                  ARTICLE XIII
                                    DEFAULTS

         In the event of any Default by either Hecla Ventures or Rodeo Creek in
the performance of its obligations under this Earn-in Agreement ("Defaulting
Party"), the Non-Defaulting Party shall give to the Defaulting Party written
notice specifying the default. If the Default is not completely cured within
thirty (30) days, or such other, longer time as may be specified in this
Agreement, after the Defaulting Party has received the notice, the
Non-Defaulting Party may declare this Earn-in Agreement terminated and/or pursue
legal action against the Defaulting Party. Nothing herein shall be construed as
a limitation of remedies to the Non-Defaulting Party.

                                   ARTICLE XIV
                                 CONFIDENTIALITY

         14.1 General. The financial terms of this Earn-in Agreement and all
geologic, metallurgical and other information obtained in connection with the
performance of it shall be the exclusive property of the Parties, except that on
termination of this Earn-in Agreement, other than on execution and delivery of
Operating Agreement, ownership of all information shall revert solely to Rodeo
Creek. Information, except as provided in Section 14.2, shall not be disclosed
by a Party to any third party or the public without the prior written consent of
the other Party.

                                      -30-
<PAGE>

         14.2 Exceptions. The consent required by Section 14.1 shall not apply
to a disclosure:

                  (a) To an Affiliate or a consultant, contractor or
subcontractor that has a bona fide need to be informed;

                  (b) To any third party to whom the disclosing Party
contemplates a transfer of all of its interest in or to this Earn-in Agreement;
or

                  (c) To a governmental agency or to the public which the
disclosing Party believes in good faith is required by pertinent law or
regulation or the rules of any stock exchange on which the disclosing Party is
listed.

In any case to which this Section 14.2 is applicable, the disclosing Party shall
give notice to the other Party concurrently with the making of such disclosure.
As to any disclosure pursuant to Section 14.2(a) or (b), only such confidential
information as such third party shall have a legitimate business need to know
shall be disclosed and such third party shall first agree in writing to protect
the confidential information from further disclosure for a period of one (1)
year after its receipt to the same extent as the Parties are obligated under
this Article XIV.

         14.3 Press Releases. Hecla Ventures and Rodeo Creek shall consult with
and provide a written copy to each other at least twenty-four (24) hours before
issuing any press release or public statement on the results of Earn-in
Activities on or for the benefit of the Properties. Neither Hecla Ventures nor
Rodeo Creek or their Guarantors shall issue any press release or public
statement mentioning the name of the other or of any entity related to the other
without the other Party's prior written approval, which approval shall not be
unreasonably withheld.

         14.4 Duration of Confidentiality. The provisions of this Article XIV
shall apply during the Term of this Earn-in Agreement and shall continue to
apply to any Party who withdraws, who is deemed to have withdrawn, or who
transfers its interest in this Earn-in Agreement, for one year following the
date of such occurrence. If the Parties enter into the Operating Agreement, its
provisions concerning confidentiality shall then apply to the financial terms of
this Earn-in Agreement and to all information obtained in connection with the
performance of Earn-in Activities.

                                      -31-
<PAGE>

                                   ARTICLE XV
                                      TAXES

         15.1 Payment of Properties and Improvement Taxes. All taxes levied on
real estate associated with the Properties or any improvements on the Properties
during the term of this Earn-in Agreement shall be paid by Hecla Ventures as
part of Earn-In Expenditures.

         15.2 Provisions Concerning Taxation. While this Earn-in Agreement is in
effect, all matters relating to taxation other than Section 15.1 shall be
governed by Article IV of this Earn-in Agreement.

                                   ARTICLE XVI
                                   COOPERATION

         Within ten (10) days after a request from a Party, each Party shall
provide the other Party with access to all data and information in its
possession or to which it has access relating to or affecting the Properties
including, but not limited to, title documents, legal opinions, pertinent
agreements, assays, samples of minerals, drill hole logs, test results,
historical materials relating to exploration, development, mining, environmental
matters and title, filings with governmental bodies, maps and surveys. Both
Parties shall have the right to make copies thereof, each at its own expense.

                                  ARTICLE XVII
                               GENERAL PROVISIONS

         17.1 Notices. All notices and other required communications made
pursuant to this Earn-in Agreement (referred to in this Section 17.1 as
"Notices") to the Parties shall be in writing, and shall be addressed
respectively as follows:

To:  Hecla Ventures Corp.          w/a copy to:  Hecla Mining Company
     6500 Mineral Drive                          6500 Mineral Drive
     Coeur d'Alene, Idaho 83815-8788             Coeur d'Alene, Idaho 83815-8788
     USA                                         USA
     Attn: President                             Attn: President and COO

                                      -32-
<PAGE>

To:  Rodeo Creek Gold Inc.         w/a copy to:  Lang Michener
     C/O Richard Harris                          1500-1055 West Georgia Street
     260-6121 Lakeside Drive                     Vancouver, British Columbia
     Reno, NV 89511                              V6E 4N7, CANADA
                                                 Attn: B. Zinkhofer

                                   w/a copy to:  Great Basin Gold Ltd.
                                                 1020-800 West Pender Street
                                                 Vancouver, British Columbia
                                                 V6C 2V6, CANADA
                                                 Attn: President & CEO

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

         17.2 Waiver. The failure of a Party to insist on the strict performance
of any provision of this Earn-in Agreement or to exercise any right, power or
remedy upon a breach hereof shall not constitute a waiver of any provision of
this Earn-in Agreement or limit the Party's right thereafter to enforce any
provision or exercise any right.

         17.3 Modification. No modification of this Earn-in Agreement shall be
valid unless made in writing and duly executed by the Parties.

         17.4 Force Majeure. Except for any obligation to make payments when due
hereunder and except for matters arising out of a Party's lack of funds, the
obligations of a Party shall be suspended to the extent and for the period that
performance is prevented by any cause, beyond its reasonable control, including,
without limitation, labor disputes (however arising and whether or not employee
demands are reasonable or within the power of the Party to grant); acts of God;
laws, regulations, orders, proclamations, instructions or requests of any
government or governmental entity; judgments or orders of any court; inability
to obtain on reasonably acceptable terms any public or private license, permit
or other authorization, including access and occupancy rights from surface

                                      -33-
<PAGE>

owners; acts of war or conditions arising out of or attributable to war, whether
declared or undeclared; riot, civil strife, insurrection or rebellion; fire,
explosion, earthquake, storm, flood, sink holes, drought or other adverse
weather conditions; delay or failure by suppliers or transporters of materials,
parts, supplies, services or equipment or by contractors' or subcontractors'
shortage of, or inability to obtain, labor, transportation, materials,
machinery, equipment, supplies, utilities or services; accidents; breakdown of
equipment, machinery or facilities; or any other cause similar to the foregoing
The affected Party shall promptly give notice to the other Party of the
suspension of performance, stating therein the nature of the suspension, the
reasons therefore, and the expected duration thereof. The affected Party shall
resume performance as soon as reasonably possible. Commercial frustration,
commercial impracticability or the occurrence of unforeseen events rendering
performance hereunder uneconomical shall not constitute an excuse of performance
of any obligation imposed hereunder.

         17.5 Governing Law. This Earn-in Agreement shall be governed by and
interpreted in accordance with the laws of the State of Nevada, except for its
rules pertaining to conflicts of laws.

         17.6 Rule Against Perpetuities. Any right or option to acquire any
interest in real or personal property under this Earn-in Agreement must be
exercised, if at all, so as to vest such interest within twenty-one (21) years
after the Effective Date.

         17.7 Further Assurances. Each of the Parties agrees to take from time
to time such actions and execute such additional instruments (without demand for
further consideration) as may be reasonably necessary or convenient to implement
and carry out the terms of this Earn-in Agreement.

         17.8 Entire Agreement; Amendments; Successors and Assigns. This Earn-in
Agreement contains the entire understanding of the Parties and supersedes all
prior agreements and understandings between the Parties relating to the subject
matter hereof, and may be amended only by a written agreement executed by the
Parties hereto. This Earn-in Agreement shall be binding upon and inure to the
benefit of the respective successors and permitted assigns of the Parties. No
Party shall assign any interest or obligation in this Earn-in Agreement to any
party without the written consent of the other Parties, which consent shall not
be unreasonably withheld, provided, however, that no consent shall be required
to transfer a Participant's interest to an Affiliate.

         17.9 Severability. In the event that a court of competent jurisdiction
determines that any term, part or provision of this Earn-in Agreement is
unenforceable, illegal, or in conflict with any federal, state, or local laws,

                                      -34-
<PAGE>

the Parties intend that the court reform that term, part or provision within the
limits permissible under law in a way as to approximate most closely the intent
of the Parties to this Earn-in Agreement; provided that, if the court cannot
make a reformation, then that term, part or provision shall be considered
severed from this Earn-in Agreement. The remaining portions of this Earn-in
Agreement shall not be affected and it shall be construed and enforced as if it
did not contain that term, part or provision.

         17.10 Paragraph Headings. The paragraph and other headings of this
Earn-in Agreement are inserted only for convenience and in no way define, limit
or describe the scope or intent of this Earn-in Agreement or effect its terms
and provisions.

         17.11 Attorneys' Fees. The prevailing party in any dispute arising
under this Earn-in Agreement shall be entitled to an award of its reasonable
attorneys' fees and costs.

         17.12 Counterparts. This Earn-In Agreement may be signed by the Parties
and Guarantors hereto in as many counterparts as may be necessary, and via
facsimile if necessary, each of which so signed being deemed to be an original
and such counterparts together constituting one and the same instrument and,
notwithstanding the date of execution, being deemed to bear the execution date
as set forth in this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this Earn-in Agreement as
of the date first above written.

HECLA VENTURES CORP.                        RODEO CREEK GOLD INC.

By:                                         By:
   -------------------------------             -------------------------------
        Authorized Signatory                         Authorized Signatory

----------------------------------          ----------------------------------
        Print Name                                   Print Name

----------------------------------          ----------------------------------
        Title                                        Title

                                      -35-
<PAGE>

IN WITNESS WHEREOF, the Guarantors hereto have executed this Earn-in Agreement
as of the date first above written.

Agreed as to Recital D and Sections         Agreed as to Recital E and Sections
2.6, 2.7, 5, Exhibit E and Article X        2.3, 2.4 and 5 and Exhibit E

HECLA MINING COMPANY                        GREAT BASIN GOLD LTD.

Per:                                        Per:
    ------------------------------              --------------------------------
Authorized Signatory                        Authorized Signatory

----------------------------------          ----------------------------------
Print Name                                  Print Name

----------------------------------          ----------------------------------
Title                                       Title

                                      -36-
<PAGE>

                                ACKNOWLEDGEMENTS

STATE OF IDAHO       )
                     ) ss.
County of Kootenai   )

         The foregoing instrument was acknowledged before me this ________ day
of _____________ 2002, by Thomas F. Fudge, President of Hecla Ventures Corp., a
Nevada corporation, on behalf of said corporation.

                                     -------------------------------------------
                                     Notary Public in and for the State of Idaho
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

STATE OF IDAHO       )
                     ) ss.
County of Kootenai   )

         The foregoing instrument was acknowledged before me this ________ day
of _____________ 2002, by __________________, _________________ of Hecla Mining
Company, a Delaware corporation, on behalf of said corporation.

                                     -------------------------------------------
                                     Notary Public in and for the State of Idaho
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

                                      -37-
<PAGE>

CANADA                       )
                             )
Province of British Columbia )

         The foregoing instrument was acknowledged before me this ______ day of
_______________, 2002, by ___________________________________ the
_______________________ of Rodeo Creek Gold Inc., a Nevada corporation, on
behalf of said corporation

                                     -------------------------------------------
                                     Notary Public in and for the
                                     Province of British Columbia
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

CANADA                       )
                             )
Province of British Columbia )

         The foregoing instrument was acknowledged before me this ______ day of
_______________, 2002, by __________________________________ the
_______________________ of Great Basin Gold Ltd., a British Columbia, Canada
corporation, on behalf of said corporation.

                                     -------------------------------------------
                                     Notary Public in and for the
                                     Province of British Columbia
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

                                      -38-
<PAGE>

                                    EXHIBIT A
                                   PROPERTIES
                    (INCLUDES EXHIBIT A, PART I, II AND III)

I.       The 73 unpatented lode claims located in Elko County, Nevada listed
         below lie completely or partially within the Area of Interest commonly
         known as the Hollister Development Block which is defined by the
         following three dimensional Mine Grid Coordinates:
         34,000E to 40,000E
         35,000N to 42,000N
         Surface to 4,000ft Above sea level

         These claims are subject to Underlying Agreements (Part II and III of
Exhibit A) and obligations or royalties of general application to any local,
state or federal governments.

<TABLE>
<CAPTION>
--------------------------------- ------------------------------- --------------------------------
           CLAIM NAME                      NCM NUMBERS                   NUMBER OF CLAIMS
--------------------------------- ------------------------------- --------------------------------

--------------------------------- ------------------------------- --------------------------------
<S>                               <C>                                            <C>
BILLY NUMBER 6-7                  103763-103764                                  2
--------------------------------- ------------------------------- --------------------------------
CAR 1-5                           103752-103756                                  5
--------------------------------- ------------------------------- --------------------------------
PICKUP 2                          103765                                         1
--------------------------------- ------------------------------- --------------------------------
GAPFILLER                         103767                                         1
--------------------------------- ------------------------------- --------------------------------
GAPFILLER 1                       103768                                         1
--------------------------------- ------------------------------- --------------------------------
JERRY 1,2,4,5,                    103769,103770,103772,                         14
      13-15,                      103775,103780-103782,
      23-25,                      103790-103792,
      28-31                       103793-103796
--------------------------------- ------------------------------- --------------------------------
WDF 1                             395835                                         1
--------------------------------- ------------------------------- --------------------------------
MWB 1                             515540                                         1
--------------------------------- ------------------------------- --------------------------------
PICKUP 1                          617440
--------------------------------- ------------------------------- --------------------------------
CLYN 151-175,                     679609-679633,                                41
     204-212,                     679662-679670,
     219,220,                     679677, 679678,
     222,224,226,                 679680, 679682, 679684,
     228, 230                     679686, 679688
--------------------------------- ------------------------------- --------------------------------
HAROLDS CLUB 1A-5A                681147-681151                                  5
--------------------------------- ------------------------------- --------------------------------
HAROLDS CLUB 8A                   681152                                         1
--------------------------------- ------------------------------- --------------------------------

--------------------------------- ------------------------------- --------------------------------
TOTAL                                                                        73 CLAIMS
--------------------------------- ------------------------------- --------------------------------
</TABLE>

                         Exhibit A to Earn-in Agreement
                               Part I - Properties
                                   Page 1 of 2
<PAGE>

                           HOLLISTER DEVELOPMENT BLOCK
                                AREA OF INTEREST

                                    [GRAPHIC]

                         Exhibit A to Earn-in Agreement
                               Part I - Properties
                                   Page 2 of 2
<PAGE>

II.      LEASES AND ROYALTIES AND UNDERLYING AGREEMENTS

         A. Hillcrest Claims. The Billy 6-7; Car 1-5; Pickup 2; Gapfiller;
Gapfiller 1; Jerry 1-2, 4-5, 13-15, 23-25, and 28-31; Pickup 1; and Harold's
Club 1A-5A and 8A claims (the "Hillcrest Claims") are owned by Hillcrest Mining
Company, a Nevada corporation.

         The Hillcrest Claims are subject to a Mineral Lease dated October 23,
1981 between Hillcrest Mining Company as Lessor and Auric Metals Corporation as
Lessee (the "Hillcrest Mining Lease"). A Sublease dated December 10, 1981 was
granted by Auric Metals Corporation to United States Steel Corporation. Through
various conveyances, the Sublease is now held by Rodeo Creek Gold Inc., a Nevada
corporation.

         There are three royalties associated with the Hillcrest Claims: a 2%
royalty on net proceeds reserved to Hillcrest/Auric; a 3% net returns royalty in
favor of USX (successor to United States Steel Corporation). A 5% net profits
interest reserved by Touchstone Resources Company will be paid entirely by Rodeo
Creek out of Rodeo Creek's Participating Interest or Rodeo Creek's interest in
the Net Profits Interest and will in no event affect the Participating Interest
or Net Profits Interest of Hecla Ventures. The USX royalty was subsequently
conveyed to Franco-Nevada Mining Corporation and Euro-Nevada Mining Corporation,
Inc., which have been acquired by Newmont Mining Corporation (or a related
company); the 3% net returns royalty is now owned and controlled by Newmont.

         B. Ivanhoe Claims. The WDF 1, MDW 1, and CLYN 151-175, 204-212,
219-220, 222, 224, 226, 228, and 230 claims (the "Ivanhoe Claims") are owned by
Rodeo Creek Gold Inc., a Nevada corporation.

         The Ivanhoe Claims are subject to two royalties: a 5% net returns
royalty, originally reserved by USX and now held by Newmont Mining Corporation
or an affiliate company. A 5% net profits interest reserved by Touchstone
Resources Company will be paid entirely by Rodeo Creek out of Rodeo Creek's
Participating Interest or Rodeo Creek's interest in the Net Profits Interest and
will in no event affect the Participating Interest or Net Profits Interest of
Hecla Ventures.

                         Exhibit A to Earn-in Agreement
      Part II - Properties -Leases and Royalties and Underlying Agreements
                                   Page 1 of 2
<PAGE>

         C. Underlying Agreements and Other Information. See Hollister
Development Block Land and Agreement 3 ring binder dated July 22, 2002 for legal
opinion, Property map and Underlying Agreements. A copy of the table of contents
follows in Part III.

                         Exhibit A to Earn-in Agreement
      Part II - Properties -Leases and Royalties and Underlying Agreements
                                   Page 2 of 2
<PAGE>

PART III - UNDERLYING AGREEMENTS AND OTHER INFORMATION

1.0 SUMMARY INFORMATION

      *  Claim List - claims in Hollister Development Block with ownership and
         royalties identified.

      *  Claim Map - Hollister Development Block with corresponding royalties
         identified.

2.0 LEGAL CORRESPONDENCE

      *  Title Report on Hollister Development Block, Elko County, Nevada, dated
         July 19, 2002 by Harris & Thompson.

      *  Hillcrest-Auric Production Royalty, dated June 26, 1998 by Harris,
         Trimmer & Thompson.

3.0 FEBRUARY 18, 2002 - NEWS RELEASE

      *  Newmont announces that it has completed its acquisition of
         Franco-Nevada Mining.

4.0 MARCH 15, 2002 - ACKNOWLEDGEMENT

      *  RODEO CREEK GOLD INC. AND TOUCHSTONE RESOURCES INC.: Touchstone's
         participating interest in the joint venture is reduced to below 10%,
         they relinquish their interest to Rodeo Creek and reserve a 5% Net
         Profits Royalty.

5.0 OCTOBER 27, 2000 - ASSIGNMENT OF INTEREST

      *  AURIC METALS CORPORATION AND FINLEY RIVER COMPANY: Auric assigns and
         transfers all of its rights, titles and interests in the Hillcrest
         Mining Lease and Sublease to Finley River.

6.0 MARCH 02, 1999 - PURCHASE AGREEMENT

      *  GREAT BASIN GOLD LTD. AND TOUCHSTONE RESOURCES COMPANY & CORNUCOPIA
         RESOURCES LTD.: Great Basin purchases all of the shares of Touchstone
         Resources from Cornucopia Resources.

7.0 JULY 31, 1998 - PURCHASE AGREEMENT ASSIGNMENT

      *  GREAT BASIN GOLD INC. AND RODEO CREEK GOLD INC.: Great Basin assigns
         all of its right, title and interest in the August 13, 1997 purchase
         agreement to Rodeo Creek.

      *  GREAT BASIN GOLD INC. AND RODEO CREEK GOLD INC.: Quitclaim deed and
         assignment of the "Ivanhoe Properties" from Great Basin to Rodeo Creek.

8.0 JULY 31, 1998 - VENTURE AGREEMENT ASSIGNMENT

      *  GREAT BASIN GOLD INC. AND RODEO CREEK GOLD INC.: Great Basin assigns
         all of its right, title and interest in the August 13, 1997 venture
         agreement to Rodeo Creek.

                         Exhibit A to Earn-in Agreement
       Part III - Properties -Underlying Agreements and Other Information
                                   Page 1 of 3
<PAGE>

9.0 AUGUST 13, 1997 - SUBLEASE AMENDMENT

      *  AURIC METALS CORPORATION, AND HILLCREST MINING COMPANY AND GREAT BASIN
         GOLD INC..: Auric and Hillcrest acknowledge the assignment of the
         Sublease to Great Basin effective August 13, 1997.

10.0 AUGUST 13, 1997 - QUITCLAIM DEED AND ASSIGNMENT

      *  NEWMONT EXPLORATION LIMITED AND GREAT BASIN GOLD INC..: Newmont
         quitclaims all rights titles and interest in the Ivanhoe properties to
         Great Basin Gold and assigns all of its rights , title and interests in
         the mineral lease and sub-lease to Great Basin.

11.0 AUGUST 13, 1997 - PURCHASE AGREEMENT

      *  NEWMONT EXPLORATION LIMITED, TOUCHSTONE RESOURCES COMPANY AND GREAT
         BASIN GOLD INC..: Newmont and Touchstone terminate the Venture
         Agreement and Great Basin acquires Newmont's interest in the Ivanhoe
         Properties.

12.0 AUGUST 13, 1997 - VENTURE AGREEMENT

      *  TOUCHSTONE RESOURCES COMPANY AND GREAT BASIN GOLD INC..: Great Basin
         and Touchstone participate jointly in the exploration, evaluation and
         development of mineral resources within the Ivanhoe Properties and any
         other acquired properties under the terms of this agreement.

13.0 MARCH 19, 1992 - QUITCLAIM DEED AND ASSIGNMENT

      *  USX CORPORATION AND EURO-NEVADA MINING CORPORATION: USX conveys all of
         its remaining interest right and title in the "Deed" dated December 20,
         1988 to Euro-Nevada.

14.0 DECEMBER 20, 1988 - QUITCLAIM DEED AND ASSIGNMENT

      *  USX CORPORATION AND TOUCHSTONE RESOURCES COMPANY: USX conveys all of
         its interest right and title in the USX Claims and the base leases and
         Hillcrest claims to Touchstone while reserving certain interests.

      *

15.0 MARCH 26, 1987 - LESSOR'S CERTIFICATION

      *  AURIC METALS CORPORATION AND TOUCHSTONE RESOURCES COMPANY: Auric
         certifies the good standing of the leases.

16.0 MARCH 19, 1987 - CERTIFICATION AND AGREEMENT

      *  HILLCREST MINING RESOURCES COMPANY AND TOUCHSTONE RESOURCES COMPANY AND
         USX CORPORATION: Renewal and amendment of the lease.

                         Exhibit A to Earn-in Agreement
       Part III - Properties -Underlying Agreements and Other Information
                                   Page 2 of 3
<PAGE>

17.0 MARCH 19, 1987 - AMENDMENT TO MINERAL LEASE

      *  AURIC METALS CORPORATION AND HILLCREST MINING RESOURCES: Amendment to
         the lease and assignment of interest.

18.0 DECEMBER 10, 1981 - SUBLEASE

      *  AURIC METALS CORPORATION AND USX: USX subleases the Hillcrest Claims
         from Auric.

19.0 OCTOBER 23, 1981 - MINERAL LEASE

      *  AURIC METALS CORPORATION AND HILLCREST MINING RESOURCES: Auric Leases
         the "Hillcrest" claims from Hillcrest.

                         Exhibit A to Earn-in Agreement
       Part III - Properties -Underlying Agreements and Other Information
                                   Page 3 of 3
<PAGE>

IV:      TERMINATION AND RELEASE AGREEMENT

         THIS AGREEMENT is entered into and made effective this ___ day of
________, 20___, by and between Hecla Ventures Corp., a Nevada corporation
("Hecla Ventures") and its Guarantor, Hecla Mining Company, with their principal
place of business at 6500 Mineral Drive, Coeur d'Alene, Idaho 83815-8788 and
Rodeo Creek Gold Inc., C/O Richard Harris, 260 - 6121 Lakeside Drive, Reno,
Nevada 89511, a Nevada corporation ("Rodeo Creek"), and its Guarantor, Great
Basin Gold Ltd. with their principal place of business at 1020 - 800 West Pender
Street, Vancouver, British Columbia V6C 2VC.

                                    RECITALS

         WHEREAS, Hecla Ventures and Rodeo Creek entered into an Earn-in
Agreement dated August 2, 2002 ("Earn-in Agreement"); and,

         WHEREAS, Hecla Ventures and Rodeo Creek desire to terminate the Earn-in
Agreement.

         NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 "Hecla Ventures" means Hecla Ventures Corp. and its subsidiaries,
affiliates, successors and assigns;

         1.2 "Great Basin" means Great Basin Gold Ltd. and its subsidiaries,
affiliates, successors and assigns;

         1.3 "Earn-in Agreement" means the Earn-in Agreement by and between
Hecla Ventures and Rodeo Creek, dated August 2, 2002, including all amendments
and modifications thereof, and all schedules and exhibits, thereto.

         1.4 "Agreement" shall mean collectively all covenants, terms and
conditions of this Termination and Release of Agreement, and any specifications
and exhibits thereto.

         1.5 All other defined terms used in this Agreement and in its exhibits
shall have the definitions previously agreed to in the Earn-in Agreement, unless
specifically defined herein.

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 1 of 6
<PAGE>

                                   ARTICLE II
                        TERMINATION OF EARN-IN AGREEMENT

2.1 As evidenced by their signatures below, Hecla Ventures and Rodeo Creek
hereby agree to terminate the Earn-in Agreement, subject to the terms and
conditions of this Agreement.

                                   ARTICLE III
                                 MUTUAL RELEASE

3.1 Except as set out in this Agreement, Hecla Ventures and Rodeo Creek hereby
release each other from all duties, obligations and liabilities, past, present
and future, including contingent liabilities arising in whole or in part from
joint operations on and near the Properties for activities undertaken pursuant
to the Earn-in Agreement, excluding Hecla Mining Warrants and Great Basin
Warrants which have been exchanged.

                                   ARTICLE IV
                                    INDEMNITY

4.1 Rodeo Creek's Indemnity

         Notwithstanding any provision of this Agreement to the contrary, Rodeo
Creek shall be solely responsible for, and shall indemnify, defend, and hold
harmless Hecla Ventures and its directors, officers, employees, agents,
attorneys and Affiliates from and against, any and all liabilities, losses,
claims, demands, damages, costs, expenses (including without limitation any
environmental, reclamation and remediation expenses, fines, penalties,
judgments, litigation costs and attorneys' fees) enforcement actions and causes
of action ("Claims") arising in whole or in part from the activities conducted
at any time prior to the Effective Date of the Earn-In Agreement on the
Properties or on lands owned or controlled as of the Effective Date by Rodeo
Creek within the Area of Interest, or on nearby lands involved in Rodeo Creek's
operations, regardless of whether such Claims arise or accrue before or after
the Effective Date of this Agreement, or after termination or expiration of the
Term of this Agreement for any reason.

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 2 of 6
<PAGE>

4.2 Hecla Ventures' Indemnity

         Notwithstanding any provision of this Agreement to the contrary, Hecla
Ventures shall be solely responsible for, and shall indemnify, defend, and hold
harmless Rodeo Creek and its directors, officers, employees, agents, attorneys
and Affiliates from and against, any and all liabilities, losses, claims,
demands, damages, costs, expenses (including without limitation any
environmental, reclamation and remediation expenses, fines, penalties,
judgments, litigation costs and attorneys' fees) enforcement actions and causes
of action ("Claims") arising in whole or in part from the Earn-in Activities
conducted at any time after the Earn-In Agreement Effective Date on the
Properties or on lands owned or controlled as of the Effective Date by Hecla
Ventures within the Area of Interest, or on nearby lands involved in Hecla
Ventures' operations, regardless of whether such Claims arise or accrue after
the Effective Date of this Agreement, or after termination or expiration of the
Term of this Agreement for any reason.

                                    ARTICLE V
                                 ATTORNEYS' FEES

5.1 The prevailing party in any dispute arising under this Agreement shall be
entitled to an award of its reasonable attorneys' fees and costs.

                                   ARTICLE VI
                                PARENT GUARANTEE

6.1 Hecla Mining hereby guarantees to Rodeo Creek the due performance of all the
obligations of Hecla Ventures owed to Rodeo Creek hereunder.

6.2 Great Basin hereby guarantees to Hecla Ventures the due performance of all
the obligations of Rodeo Creek owed to Hecla Ventures hereunder.

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

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 3 of 6
<PAGE>

HECLA VENTURES CORP.                        RODEO CREEK GOLD INC.

By NOT FOR SIGNATURE - FORM ONLY            By NOT FOR SIGNATURE - FORM ONLY
  ------------------------------              ------------------------------

-----------------------------------         --------------------------------
         Print Name                                  Print Name

------------------------------------        ------------------------------------
         Title                                       Title

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

HECLA MINING COMPANY                        GREAT BASIN GOLD LTD.

By NOT FOR SIGNATURE - FORM ONLY            By NOT FOR SIGNATURE - FORM ONLY
  ------------------------------              ------------------------------

-----------------------------------         --------------------------------
         Print Name                                  Print Name

------------------------------------        ------------------------------------
         Title                                       Title

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 4 of 6
<PAGE>

                                ACKNOWLEDGEMENTS

STATE OF IDAHO             )
                           ) ss.
County of Kootenai         )

         The foregoing instrument was acknowledged before me this ___ day of
_________________, 2002, by ______________________ the ____________________ of
Hecla Ventures Corp., a Nevada corporation, on behalf of said corporation.

                                        NOT FOR SIGNATURE - FORM ONLY
                                        Notary Public
                                        Residing at: __________________________
                                        My commission expires:_________________

STATE OF IDAHO             )
                           ) ss.
County of Kootenai         )

         The foregoing instrument was acknowledged before me this ___ day of
_________________, 2002, by ______________________ the ____________________ of
Hecla Mining Company, a Delaware corporation, on behalf of said corporation.

                                        NOT FOR SIGNATURE - FORM ONLY
                                        Notary Public
                                        Residing at: __________________________
                                        My commission expires:_________________

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 5 of 6
<PAGE>

CANADA                         )
                               )
Province of British Columbia   )

         The foregoing instrument was acknowledged before me this ___ day of
_________________, 2002, by ______________________ the ____________________ of
Rodeo Creek Gold Inc., a Nevada corporation, on behalf of said corporation.

                                        NOT FOR SIGNATURE - FORM ONLY
                                        Notary Public
                                        Residing at: __________________________
                                        My commission expires:_________________

CANADA                         )
                               )
Province of British Columbia   )

         The foregoing instrument was acknowledged before me this ___ day of
_________________, 2002, by _______________________ the ___________________ of
Great Basin Gold Ltd., a British Columbia corporation, on behalf of said
corporation.

                                        NOT FOR SIGNATURE - FORM ONLY
                                        Notary Public
                                        Residing at: __________________________
                                        My commission expires:_________________

                         Exhibit A to Earn-in Agreement
                   Part IV - Termination and Release Agreement
                                   Page 6 of 6
<PAGE>

                                    EXHIBIT B
                              ACCOUNTING PROCEDURES

                              I. GENERAL PROVISIONS

It is the intent of the Manager and the Participants that the Manager, except as
permitted by this Agreement, shall not lose or profit by reason of its duties
and responsibilities as Manager. The Accounting Procedures shall be reviewed by
the Management Committee upon the request of the Manager or any Participant to
assure that the Manager (directly or through its Affiliates) does not , except
as permitted by this Agreement, make a profit or suffer a loss from serving as
Manager. The Participants shall, in good faith, endeavor to agree on
modifications to these Accounting Procedures that will remedy any alleged
unfairness or inequity.

1.       Definitions

         All words indicated with initial capital letters shall have the meaning
         set forth in Article I of this Joint Operating Agreement.

2.       Conflict with Agreement

         In the event of a conflict between the provisions of this Accounting
         Procedure and the provisions of the agreement to which this Accounting
         Procedure is attached ("Operating Agreement"), the provisions of the
         Operating Agreement shall control.

3.       Collective Action by Non-Manager

         Where there are more than one non-Manager, where an agreement or other
         action by non-Manager is expressly required under this Accounting
         Procedure, and if the Operating Agreement contains no contrary
         provisions in regard thereto, the agreement or action of a majority in
         interest of the non-Manager shall be controlling on all non-Managers.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 1 of 15
<PAGE>

4.       Statements and Billings

         A.       Prior to the first day of each month covered by an approved
                  budget, or some other quantum of months as may be agreed by
                  the Participants and such time being hereinafter referred to
                  as the "Period," each Participant shall advance to the Joint
                  Accounts its proportionate share (i.e., according to its
                  Participating Interest in the Joint Operation) of the total
                  amount of the funds required for such Period, as reflected by
                  the budget. Manager shall pay and discharge all costs and
                  expenses of the Joint Account as the same become due and
                  payable. Notwithstanding the failure of the Participants to
                  approve any budget, each Participant shall advance to the
                  Joint Account its proportionate share of such funds as the
                  Manager shall by written notice advise the Participants are
                  required for protecting and maintaining the Joint Properties
                  and meeting the obligations properly incurred for the Joint
                  Account. No Participant shall be considered deficient as to
                  any advance due from it unless it shall have been allowed at
                  least ten (10) days (after receipt of copies of the approved
                  budget on which determination of the amount to be advanced is
                  based, or, in the case of an advance to be made pursuant to
                  the next preceding sentence, after receipt of notice from the
                  Manager in such regard) in which to make such advance.

         B.       Manager shall provide non-Manager on or before the last day of
                  the month following each Period a statement of costs and
                  expenses for the Period. Such statement will reflect all
                  charges and credits to the Joint Account, summarized by
                  appropriate classifications indicative of the nature thereof.
                  Proper adjustments shall be made between advances and direct
                  and indirect costs, to the end that each Participant shall
                  bear and pay its proportionate share of direct and indirect
                  costs incurred and no more or less.

5.       Payment and Advances by Non-Manager

         In the case where advances have been insufficient to cover actual
         costs, the Manager, by written notice, shall advise non-Manager of such
         deficiency and request that funds to cover such deficiency be paid in
         accordance with this paragraph 5 of Section I. If advances exceed
         actual costs, the Manager shall advise non-Manager of such excess and

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 2 of 15
<PAGE>

         advise non-Manager of either a reduced amount required to be advanced
         for the next Period or return to the Participants their proportionate
         share of such excess. Each non-Manager shall pay pro rata share of any
         advance due for a Period or for a deficiency request for funds within
         ten (10) days after receipt of notice from Manager. If payment is not
         made within such time, the unpaid balance shall bear interest at the
         annual rate of five (5) percent above the Prime Rate.

6.       Adjustments

         Payments of any such advance or deficiency requests shall not prejudice
         the right of the non-Manager to protest or question the correctness
         thereof, provided, however, all accounts and statements rendered to
         non-Manager during any calendar year shall conclusively be presumed to
         be true and correct after twelve (12) months following the end of such
         calendar year, unless within the said twelve (12) month period a
         non-Manager takes written exception thereto and makes claim on Manager
         for adjustment. No adjustment favorable to Manager shall be made unless
         it is made within the same prescribed period. The provisions of this
         paragraph shall not prevent adjustments resulting from a physical
         inventory of the Joint Property.

7.       Audits

         The Manager shall, upon the request of any Participant with a
         Participating Interest under this Agreement, have an annual audit
         performed on the Manager's accounts by a firm of auditors acceptable to
         the Participants which own the majority Participating Interest. The
         cost of such annual audit shall be charged to the Joint Account. In
         addition to the annual audit, any other work performed by these
         auditors (including the preparation of schedules for submission to any
         taxing authorities), if approved by the Management Committee, shall be
         charged to the Joint Account.

         Notwithstanding the above, any audit, accounting, taxation or similar
         work performed at the request of any Participant to this Agreement for
         the exclusive benefit of that Participant shall be a charge to that
         Participant and not be a charge to the Joint Account.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 3 of 15
<PAGE>

         A non-Manager, upon notice in writing to Manager, shall have the right
         to audit Manager's accounts and records relating to the accounting
         hereunder for any calendar year within the twelve (12) month period
         following the end of each calendar year, provided, however, the making
         of an audit shall not extend the time for the taking of written
         exception to and the adjustment of accounts as provided above. Where
         there are two or more non-Managers, the non-Manager shall make every
         reasonable effort to conduct joint or simultaneous audits in a manner
         which will result in a minimum of inconvenience to the Manager.

                               II. DIRECT CHARGES

Subject to limitations hereinafter prescribed, and unless otherwise provided in
the Operating Agreement, Manager shall charge the Joint Account with the
following items:

1.       Rentals, Royalties, Fees and Reclamation

         A.       Rentals and royalties when such rentals, lease payments and
                  royalties are paid by Manager for the Joint Account of the
                  Participants.

         B.       Any annual fee payment or assessment work expenditure on or
                  for the Properties.

         C.       A cash reclamation account that is funded on a per ounce basis
                  to meet expected reclamation costs identified in the
                  Feasibility Study as may be updated from time to time by an
                  independent consultant and approved by the Management
                  Committee.

2.       Labor

         A.       Salaries and wages of Manager's employees or Affiliates
                  directly engaged in the conduct of the Joint Operations
                  (except those entities' executives and officers), and salaries
                  or wages of technical employees who are temporarily assigned
                  to and directly employed in the conduct of Joint Operations
                  and whose salaries are not compensated for under Section III.

         B.       Manager's cost of holiday, vacation, sickness, and disability
                  benefits and other customary allowances paid to the employees
                  whose salaries and wages are chargeable to the Joint Account
                  under Paragraph 2A of this Section II and Paragraph 1 of
                  Section III; except that in the case of those employees only a
                  pro rata portion of whose salaries and wages are chargeable to

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 4 of 15
<PAGE>

                  the Joint Account under Paragraph 1 of Section III, not more
                  than the same pro rata portion of the benefits and allowances
                  herein provided for shall be charged to the Joint Account.
                  Cost under this Paragraph 2B may be charged on a "when and as
                  paid basis" or by "percentage assessment" on the amount of
                  salaries and wages chargeable to the Joint Account under
                  Paragraph 2A of this Section II and Paragraph 1 of Section
                  III. If percentage assessment is used, the rate shall be based
                  on the Manager's cost experience.

         C.       Expenditures or contributions made pursuant to assessments
                  imposed by governmental authority which are applicable to
                  Manager's labor cost of salaries and wages chargeable to the
                  Joint Account under Paragraphs 2A and 2B of this Section II
                  and Paragraph 1 of Section III.

         D.       Reasonable personal expenses of those employees whose salaries
                  and wages are chargeable to the Joint Account under Paragraph
                  2A of this Section II and for which expenses the employees are
                  reimbursed under Manager's usual practice.

3.       Employee Benefits

         Manager's cost of established plans for employees' group life
         insurance, hospitalization, pension, retirement, stock purchase,
         thrift, severance payments and other benefit plans of a like nature,
         applicable to Manager's labor cost chargeable to the Joint Account
         under Paragraphs 2A and 2B of this Section II and Paragraph 1 of
         Section III.

4.       Material

         Material and supplies ("Material") purchased or furnished by Manager
         for use on the Joint Property. So far as it is reasonably practical and
         consistent with efficient economical operation, only such Material
         shall be purchased for or transferred to the Joint Property as may be
         required for immediate use; and the accumulation of surplus stocks
         shall be avoided. The charges for any Material or services provided by
         Manager or an Affiliate of Manager shall not exceed the prevailing
         charges or rates for such Material or services in the vicinity of the
         Joint Property and those services performed by Manager or Affiliate of
         Manager shall be under the same terms and conditions as are customary
         and usual in the vicinity of the Joint Property in contracts of
         independent contractors who are doing work of a similar nature.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 5 of 15
<PAGE>

5.       Transportation

         Transportation of employees and Material necessary for the Joint
         Operations but subject to the following limitations:

         A.       If Material is moved to the Joint Property from the Manager's
                  warehouse or other properties, no charge shall be made to the
                  Joint Account for a distance greater than the distance from
                  the nearest reliable supply store or railway receiving point
                  where like material is available, except by agreement with
                  non-Manager.

         B.       If surplus Material is moved to Manager's warehouse or other
                  storage point, no charge shall be made to the Joint Account
                  for a distance greater than the distance to the nearest
                  reliable supply store or railway receiving point, except by
                  agreement with non-Manager. No charge shall be made to Joint
                  Account for moving Material to other properties belonging to
                  Manager, except by agreement with non-Manager.

         C.       In the application of subparagraphs A and B above, there shall
                  be no equalization of actual gross trucking costs of $100.00
                  or less.

6.       Off-Site Transportation of Ore

         Transportation of Products from the Properties to any off-site
         processing facility.

7.       Processing Cost

         It is understood at the time of the signing of this agreement that no
         final disposition of Products from the Properties has been arranged.
         However, the intent of the parties can be summarized as follows:

         A.       If the arrangement shall be toll milling then the Participants
                  shall take in kind and the costs required to beneficiate the
                  Products to the point where delivery may be taken in kind are
                  charged to the Joint Account as Processing Cost.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 6 of 15
<PAGE>

         B.       If the arrangement shall be custom milling the Processing Cost
                  shall be the difference between the gross value of metal in
                  the Products and the payment received for the Products.

8.       Services

         A.       The cost of contract services and utilities procured from
                  outside sources other than services covered by Paragraph 10 of
                  this Section II of this Accounting Procedure.

         B.       Use and services of equipment and facilities furnished by
                  Manager as provided in Paragraph 2 of Section IV of this
                  Accounting Procedure.

9.       Damages and Losses to Joint Property

         All costs or expenses necessary for the repair or replacement of Joint
         Property made necessary because of damages or losses incurred by fire,
         flood, storm, theft, accident, or any other cause. Manager shall
         furnish non-Manager written notice of damages or losses incurred as
         soon as practical after a report thereof has been received by Manager.

10.      Legal Expenses

         All costs and expenses of handling, investigating and settling
         litigation or claims arising by reason of the Joint Operations or
         necessary to protect or recover the Joint Property, including, but not
         limited to, attorneys' fees, court costs, cost of investigation or
         procuring evidence and amounts paid in settlement or satisfaction of
         any such litigation or claims; provided (a) except as otherwise
         permitted herein, no charge shall be made for the services of Manager's
         legal staff or other regularly employed legal personnel for legal
         services rendered solely on behalf of and for the benefit of Manager
         (such services being considered to be Administrative Overhead under
         Section III), except by agreement with non-Manager, (b) no charge shall
         be made for the fees and expenses of outside attorneys unless the
         employment of such attorneys is approved by the Management Committee,
         and (c) no settlement of litigation or claims for more than $100,000 in
         cash or value shall be made by the Manager without prior approval of
         the non-Manager.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 7 of 15
<PAGE>

11.      Taxes

         All taxes of every kind and nature assessed or levied upon or in
         connection with the Joint Property, the operation thereof, of the
         production therefrom, and which taxes have been paid by the Manager for
         the benefit of all the Participants. For greater certainty, any tax
         levied on income or profit of the Joint Venture is payable by each
         individual Participant to this Agreement and, to the extent paid by the
         Joint Account, is to be refunded to the Joint Account by each such
         Participant on whom such tax is assessed and/or levied.

12.      Insurance Premiums

         Premiums paid for insurance required to be carried on the Joint
         Property for the protection of the Participants.

13.      Other Expenditures

         Any other expenditures not covered or dealt with in the foregoing
         provisions of this Section II or in Section III, and which are incurred
         by the Manager for the necessary and proper conduct of the Joint
         Operations and pursuant to any applicable provisions of the Operating
         Agreement.

                              III. INDIRECT CHARGES

         Subject to limitations hereinafter prescribed, and unless otherwise
         provided in the Operating Agreement, Manager shall charge the Joint
         Account with the following items:

1.       Administrative Overhead

         In addition to the charges made pursuant to Paragraph 1 above, Manager
         shall charge the Joint Account with an overhead charge calculated as
         follows:

         A.       One percent (1%) of any expenditure for an item which would,
                  under generally accepted accounting treatment for financial
                  purposes, be capitalized and is not included as a direct
                  charge included in Section II of the Account Procedure; plus

         B.       Seven percent (7%) of all Direct Charges as defined in this
                  Exhibit B, except the Direct Charges identified in Section II,
                  paragraphs 1A, 1B and 1C of this Exhibit B but for any
                  individual contract in excess of $50,000 the fee shall be
                  reduced to 3%.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 8 of 15
<PAGE>

         Such overhead rates may be amended from time to time by mutual
         agreement of the Participants hereto if, in practice, the rates are
         found to be insufficient or excessive.

2.       Depreciation and Amortization

         The value of additional capital equipment and facilities acquired after
         Stage II will be amortized on a per ounce produced basis over the
         remaining mine life, or the expected useful life of the newly acquired
         capital asset, whichever is shorter.

                      IV. BASIS OF CHARGES TO JOINT ACCOUNT

1.       Purchases

         Material and equipment purchased and service procured shall be charged
         at the price paid by Manager after deduction of all discounts actually
         received.

2.       Material Furnished by Manager

         Material required for operations shall be purchased for direct charge
         to the Joint Account whenever practicable, except that Manager may
         furnish such material from Manager's stocks under the following
         conditions:

         A.       New Material (Condition "A")

                  (1)      New material transferred from Manager's warehouse or
                           other properties shall be priced F.O.B. the nearest
                           reputable supply store or railway receiving point,
                           where such material is available, at current
                           replacement cost of the same kind of material.

                  (2)      Cash discount shall be allowed.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 9 of 15
<PAGE>

         B.       Used Material (Conditions "B" and "C")

                  (1)      Material which cannot be classified as Condition "A"
                           but which are classified as Condition "B" or "C" as
                           defined below shall be priced at 50% of new price.

                           (a)      "Condition B": after reconditioning will be
                                    further serviceable for original function as
                                    good secondhand material, or

                           (b)      "Condition C": is serviceable for original
                                    function but substantially not suitable for
                                    reconditioning.

                  (2)      Material which cannot be classified as Condition "B"
                           or Condition "C" shall be priced at a value
                           commensurate with its use.

         C.       Material Furnished by Manager When Not Readily Available

                  When material and/or supplies are not readily available from
                  reputable supply sources due to scarcity, national emergency
                  or governmental regulations, Manager may furnish such from its
                  stock or properties at its nearest available supply and charge
                  Manager's full cost or replacement cost, as circumstances may
                  require, of same to the Joint Account, including, without
                  limitation, purchase price, procurement, warehousing,
                  handling, transportation and all other costs incurred in
                  connection therewith up to the time of delivery to the Joint
                  Property.

3.       Premium Prices

         Whenever materials and equipment are not readily obtainable at the
         customary supply point and at prices specified in Paragraphs 1 and 2 of
         this Section IV because of national emergencies, strike or other
         unusual causes over which the Manager has no control, the Manager may
         charge the Joint Account for the required materials on the basis of the
         Manager's direct cost and expense incurred in procuring, such
         materials, in making it suitable for use, and in moving it to the
         location; provided, however, that notice in writing is furnished to
         non-Manager of the proposed charge prior to billing the non-Manager for

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 10 of 15
<PAGE>

         the material or equipment acquired pursuant to this provision,
         whereupon non-Manager shall have the right, by so electing and
         notifying Manager, within ten (10) days after receiving notice from the
         Manager, to furnish in kind, or in tonnage as the Participants may
         agree, at the location nearest railway receiving point, or Manager's
         storage point within a comparable distance, all or part of its share of
         material or equipment suitable for use and acceptable to the Manager.
         Transportation costs on any such material furnished by the non-Manager,
         at any point other than at location, shall be borne by the non-Manager.
         If, pursuant to the provisions of this paragraph, the non-Manager
         furnishes material or equipment in kind, the Manager shall make
         appropriate credits therefore to the Joint Account.

4.       Warranty of Material Furnished by Manager

         Manager does not warrant the material furnished beyond the backing of
         the dealer's or manufacturer's guaranty; and in case of defective
         material, credit shall not be passed until adjustment has been received
         by Manager from the manufacturers or their agents.

5.       Manager's Exclusively Owned Facilities

         The following rates shall apply to service rendered to the Joint
         Account by facilities and equipment owned by Manager:

         A.       Water, fuel, power, compressor and other auxiliary services at
                  rates commensurate with cost of providing and furnishing such
                  service to the Joint Account but not exceeding rates currently
                  prevailing in the vicinity of the Joint Property.

         B.       Automotive equipment at rates commensurate with cost of
                  ownership and operation. Automotive rates shall include cost
                  of oil, gas, repairs, insurance and other operating expenses
                  and depreciation; and charges shall be based on use in actual
                  service on, or in connection with, the Joint Account
                  operations. Truck and tractor rates may include wages and
                  expenses of driver.

         C.       A fair rate shall be charged for the use of Manager's fully
                  owned machinery or equipment which shall be ample to cover
                  maintenance, repairs, depreciation, and the service furnished
                  the Joint Property; provided that such charges shall not
                  exceed those currently prevailing in the vicinity of the Joint
                  Property.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 11 of 15
<PAGE>

         D.       A fair rate shall be charged for laboratory services performed
                  by Manager for the benefit of the Joint Account; provided such
                  charges shall not exceed those currently prevailing if
                  performed by outside service laboratories.

         E.       Whenever requested, Manager shall inform non-Manager in
                  advance of the rates it proposes to charge.

         F.       Rates shall be revised and adjusted from time to time by the
                  Management Committee when found to be either excessive or
                  insufficient.

                      V. DISPOSAL OF EQUIPMENT AND MATERIAL

1.       Manager Not Obligated to Purchase

         The Manager shall be under no obligation to purchase interests of non
         Manager in surplus new or secondhand material. The disposition of major
         items of surplus material shall be subject to mutual determination by
         the Participants hereto; provided, Manager shall have the right to
         dispose of normal accumulations of junk and scrap material either by
         transfer or sale from the Joint Property.

2.       Material Purchased by the Manager or Non-Manager

         Material purchased by either the Manager or non-Manager shall be
         credited by the Manager to the Joint Account for the month in which the
         material is removed by the purchaser.

3.       Division in Kind

         Division of material in kind, if made between Manager and non-Manager,
         shall be in proportion to their respective interests in such material.
         Each Participant will thereupon be charged individually with the value
         of the material received or receivable by each Participant, and
         corresponding credits will be made by the Manager to the Joint Account.
         Such credits shall appear in the monthly statement of operations.

4.       Sales to Third Parties

         Sales to third parties of material from the Joint Property shall be
         credited by Manager to the Joint Account at the net amount collected by
         Manager from any such third party. Any claims by any such third party
         for defective material or otherwise shall be charged back to the Joint
         Account if and when paid by Manager.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 12 of 15
<PAGE>

                 VI. BASIS OF PRICING MATERIAL TRANSFERRED FROM
                    JOINT ACCOUNT TO ACCOUNT OF EITHER PARTY

1.       New Price Defined

         New price as used in the following paragraphs shall have the same
         meaning and application as that used in Section IV above, "Basis of
         Charges to Joint Account."

2.       New Material

         New Material (Condition "A"), being new material procured for the Joint
         Property but never used thereon, at one hundred percent (100%) of
         current new price (plus sales tax, if any).

3.       Good Used Material

         Good used material (Condition "B"), being used material in sound and
         serviceable condition, suitable for reuse without reconditioning.

         A.       At seventy-five percent (75%) of current new price (plus sales
                  tax, if any) if material was charged to the Joint Account as
                  new, or

         B.       At sixty-five percent (65%) of current new price (plus sales
                  tax, if any) if material was originally charged to the Joint
                  Account as Condition "B" material.

4.       Other Used Material

         Used material (Condition "C"), at fifty percent (50%) of current new
         price (plus sales tax, if any), being used material which:

         A.       After reconditioning will be further serviceable for original
                  function as good secondhand material (Condition "B"), or

         B.       Is serviceable for original function but substantially not
                  suitable for reconditioning.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 13 of 15
<PAGE>

5.       Bad-Order Material

         Material and equipment (Condition "D") which is no longer useable for
         its original purpose without excessive repair cost but is further
         useable for some other purpose shall be priced on a basis comparable
         with that of items nominally used for that purpose.

6.       Junk

         Junk (Condition "E"), being obsolete and scrap material at prevailing
         prices.

7.       Temporarily Used Material

         When the use of material is temporary and its service to the Joint
         Property does not justify the reduction in price, such material shall
         be priced on a basis that will leave a net charge to the Joint Account
         consistent with the value to the Venture.

                                VII. INVENTORIES

1.       Periodic Inventories, Notice and Representations

         At reasonable intervals, but no less than annually, inventories shall
         be taken by Manager of the Joint Account material, which shall include
         all such material as is ordinarily considered controllable by operators
         of mining properties. Written notice of intention to take inventory
         shall be given by Manager at least thirty (30) days before any
         inventory is to begin so that non-Manager may be represented at an
         inventory. Failure of non-Manager to be represented at an inventory
         shall bind the non-Manager to accept the inventory taken by Manager,
         who shall in that event furnish non-Manager with a copy thereof. The
         provisions of this paragraph do not apply if inventory is maintained on
         a perpetual basis.

2.       Reconciliation and Adjustment of Inventories

         Reconciliation of inventory with charges to the Joint Account shall be
         made by each Participant in interest, and a list of overages and
         shortages shall be jointly determined by Manager and non-Manager.
         Inventory adjustments shall be made by Manager to the Joint Account for
         overages and shortages, but Manager shall be held accountable to
         non-Manager only for shortages due to lack of reasonable care.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 14 of 15
<PAGE>

3.       Special Inventories

         Special inventories may be taken at the expense of a purchaser of a
         Party's Periodic Inventory whenever there is any sale or change of
         interest in the Joint Property; and it shall be the duty of the
         Participant selling to notify all other Participants hereto as quickly
         as possible after the transfer of interest takes place. In such cases,
         both the seller and the purchaser shall be represented and shall be
         governed by the inventory so taken.

                         Exhibit B to Earn-in Agreement
                              Accounting Procedures
                                  Page 15 of 15
<PAGE>

                                   EXHIBIT B1
                                    INSURANCE

1.       Manager as determined by the Management Committee shall maintain in the
         names of the Participants the following types of insurance with limits
         of liability as stated below and shall maintain insurance as required,
         as a cost charged to the Earn-in Activities, at all times while
         performing the operations for the benefit of the Participants. Upon
         written request by any Participant, Manager shall provide certificates
         of insurance executed by the insurance companies evidencing the
         insurance placed by Manager and shall promptly deliver said
         certificates to said Participant. The certificates procured by Manager
         shall provide that any major negative change in or the cancellation of
         any coverages for which certificates are issued shall not be valid as
         respects the certificate holder's interests therein until the
         certificate holder has had at least thirty days' notice in writing
         prior to such change or cancellation. Insurance provided by Manager
         under subsection (a)(i), (a)(ii) and (a)(iii), below, shall contain a
         waiver of subrogation in favor of the Participants, if such waiver is
         available under such policies of insurance. Contractors and
         subcontractors shall include the Participants as additional insureds,
         which inclusion shall be shown on appropriate certificates.

<TABLE>
<CAPTION>
         -------------------------------------------------------------- ---------------------------------------------
                                   COVERAGE                                            MINIMUM LIMITS
         -------------------------------------------------------------- ---------------------------------------------
<S>                                                                     <C>
          (i) Workers' Compensation ("WC") and                           WC - Statutory
          Employers' Liability ("EL") Insurance, including
          Occupational disease.                                          EL - $500,000
         -------------------------------------------------------------- ---------------------------------------------
          (ii) Business automobile liability insurance,                  $1,000,000 combined single limit per
          including all owned, and hired vehicles; provided,             occurrence for bodily injury and
          if Rodeo Creek uses  non-owned vehicles, it shall first        property damage.
          obtain coverage for such non-owned vehicles as part of the
          automobile liability insurance policy or under a rider
          thereto.
         -------------------------------------------------------------- ---------------------------------------------
          (iii) Commercial general liability insurance                   $5,000,000 combined single limit per
          including blanket contractual liability, personal              occurrence and in the annual aggregate
          injury, independent contractors.                               for bodily injury, personal injury and
                                                                         property damage.
         -------------------------------------------------------------- ---------------------------------------------
</TABLE>

2.       Manager shall cause all of Manager's Affiliates, contractors and
         subcontractors to maintain Worker's Compensation Insurance as
         prescribed by law, and to maintain Employer's Liability Insurance,

                         Exhibit B1 to Earn-in Agreement
                                    Insurance
                                   Page 1 of 2
<PAGE>

         Business Automobile Liability Insurance in amounts equal to at least
         10% of the amounts set forth above, and Commercial general liability
         insurance with a combined single limit of $1,000,000 and in the annual
         aggregate, at all times during the performance of Operations by such
         Affiliates, contractors or subcontractors.

                         Exhibit B1 to Earn-in Agreement
                                    Insurance
                                   Page 2 of 2
<PAGE>

                                    EXHIBIT C
                      FORM OF QUITCLAIM DEED AND ASSIGNMENT

RECORDING REQUESTED BY & RETURN TO:
         Hecla Ventures Corp.
         Land Records Department
         6500 Mineral Drive
         Coeur d'Alene, ID 83815-8788

                      FORM OF QUITCLAIM DEED AND ASSIGNMENT

        Rodeo Creek Gold Inc. (hereinafter referred to as "Transferor"), a
Nevada corporation, whose address is C/O Richard Harris, 260 - 6121 Lakeside
Drive, Reno, Nevada 89511, duly qualified to do business and in good standing in
the state of Nevada, in consideration of the sum of ten dollars ($10.00) and
other valuable consideration paid to Transferor by Hecla Ventures Corp.,
(hereinafter referred to as "Transferee"), a Nevada corporation duly qualified
to do business and in good standing in the state of Nevada, whose address is
6500 Mineral Drive, Coeur d'Alene, Idaho 83815-8788, the receipt of which is
hereby acknowledged by Transferor, hereby assigns and quitclaims to Transferee
an undivided fifty percent (50%) interest in all of the Transferor's interest in
the Properties described in Exhibit A to that Earn-in Agreement between
Transferor and Transferee dated __________, 2002 ("Property").

        TO HAVE AND TO HOLD, all and singular the Property, together with the
tenements, hereditaments and appurtenances belonging thereto, or in anywise
appertaining, and the rents, issues and profits of such property all to
Transferee and Transferee's successors and permitted assigns forever.

        IN WITNESS WHEREOF, Transferor has caused this Quitclaim Deed and
Assignment to be executed this _______ day of _________________, 2002.

                                       TRANSFEROR:
                                       RODEO CREEK GOLD INC.

                                        By: NOT FOR SIGNATURE - FORM ONLY
                                            -----------------------------

                                        Name:
                                             ----------------------------

                                        Title:
                                              ---------------------------

                          Exhibit C to Earn-in Agreement
                  Form of Form of Quitclaim Deed and Assignment
                                   Page 1 of 2

<PAGE>

                                 ACKNOWLEDGEMENT

CANADA                        )
                              )
Province of British Columbia  )

         The foregoing instrument was acknowledged before me this ______ day of
_______________, 2002, by ___________________________________ the
_______________________ of Rodeo Creek Gold Inc., a Nevada corporation, on
behalf of said corporation.

                                        NOT FOR SIGNATURE - FORM ONLY
                                        -----------------------------
                                        Notary Public in and for the
                                        Province of British Columbia
                                        Residing at: ___________________________
                                        My Commission Expires: _________________

                          Exhibit C to Earn-in Agreement
                  Form of Form of Quitclaim Deed and Assignment
                                   Page 2 of 2
<PAGE>

                                    EXHIBIT D
                         FORM OF MEMORANDUM OF AGREEMENT

RECORDING REQUESTED BY & RETURN TO:
         Hecla Ventures Corp.
         Land Records Department
         6500 Mineral Drive
         Coeur d'Alene, ID 83815-8788

                     FORM OF MEMORANDUM OF EARN-IN AGREEMENT

         This Memorandum of Earn-in Agreement, effective the ___ day of
_____________, 2002, is filed of record in accordance with the provisions
contained in that certain agreement of even date herewith known as the Ivanhoe
Project - Hollister Development Block Earn-in Agreement ("Earn-in Agreement"),
wherein Hecla Ventures Corp., a Nevada corporation, whose address is 6500
Mineral Drive, Coeur d'Alene, Idaho 83815-8788 ("Hecla Ventures") entered into a
mineral exploration, development and mining arrangement with Rodeo Creek Gold
Inc., a Nevada corporation, whose address is C/O Richard Harris, 260-6121
Lakeside Drive, Reno, NV 89511 ("Rodeo Creek"), for good and valuable
consideration as set forth in the provisions of the Earn-in Agreement, a copy of
which is available at the offices of the parties set forth above.

         Under the terms of the Earn-in Agreement, Hecla Ventures is granted the
right to conduct activities including, without limitation, mineral exploration,
development, test mining and processing, and all other activities incident to or
arising therefrom, on or for the benefit of the properties held by Rodeo Creek
more specifically described in Exhibit A, attached hereto and incorporated
herein by this reference (referred to as the "Properties").

         Upon completion of certain terms specified in the Earn-in Agreement and
payment of valuable consideration to Rodeo Creek, Hecla Ventures shall acquire
an immediate right to receive an undivided fifty percent (50%) interest in Rodeo
Creek's Properties, and both parties shall immediately contribute their
undivided interests in such properties to the purposes of a Joint Operating
Agreement, the form of which is attached as Exhibit F to the Earn-in Agreement.

         This Memorandum has been executed and filed of record solely to give
the public notice of the existence of the Earn-in Agreement. It does not in any
way amend, modify, revise, or replace the Earn-in Agreement.

                         Exhibit D to Earn-in Agreement
                         Form of Memorandum of Agreement
                                   Page 1 of 4
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Memorandum effective
as of the date and year first above written.

HECLA VENTURES CORP.                        RODEO CREEK GOLD INC.

By: NOT FOR SIGNATURE - FORM ONLY           By: NOT FOR SIGNATURE - FORM ONLY
   ------------------------------              ------------------------------

---------------------------------           ---------------------------------
         Print Name                                  Print Name

Its:                                        Its:
    -----------------------------               -----------------------------
         Title                                       Title

                         Exhibit D to Earn-in Agreement
                         Form of Memorandum of Agreement
                                   Page 2 of 4
<PAGE>

                                ACKNOWLEDGEMENTS

STATE OF IDAHO       )
                     ) ss.
County of Kootenai   )

         The foregoing instrument was acknowledged before me this ________ day
of _____________ 2002, by Thomas F. Fudge, President of Hecla Ventures Corp., a
Nevada corporation, on behalf of said corporation.

                                     NOT FOR SIGNATURE - FORM ONLY
                                     -----------------------------
                                     Notary Public in and for the State of Idaho
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

                         Exhibit D to Earn-in Agreement
                         Form of Memorandum of Agreement
                                   Page 3 of 4
<PAGE>

CANADA                        )
                              )
Province of British Columbia  )

         The foregoing instrument was acknowledged before me this ______ day of
_______________, 2002, by ___________________________________ the
_______________________ of Rodeo Creek Gold Inc., a Nevada corporation, on
behalf of said corporation.

                                     NOT FOR SIGNATURE - FORM ONLY
                                     -----------------------------
                                     Notary Public in and for the
                                     Province of British Columbia
                                     Residing at: ______________________________
                                     My Commission Expires: ____________________

                         Exhibit D to Earn-in Agreement
                         Form of Memorandum of Agreement
                                   Page 4 of 4
<PAGE>

                                    EXHIBIT E
               EXPENDITURE SCHEDULE AND INITIAL PROGRAM AND BUDGET

A.       Warrant Commitments.

         Subject to the right to terminate and to withdraw under Article VIII of
         the Earn-in Agreement, Hecla Ventures issues Great Basin the following
         warrants to purchase Hecla Common Stock:

<TABLE>
<CAPTION>
         Date of Hecla Mining Warrants                    Amount of Warrant Issuance
         -----------------------------                    --------------------------
<S>                                                       <C>
1.       At  signing ("Effective Date") of the Earn-in    2,000,000 two year warrants to purchase Hecla
         Agreement                                        Mining common stock ("Tranche 1")

2.       On date Hecla Ventures elects to                 An additional 1,000,000 two year warrants to
         proceed with Stage II Activities or fund in      purchase Hecla Mining common stock
         lieu                                             ("Tranche 2")

3.       On date Hecla Ventures gives notice to           An additional 1,000,000 two year warrants to
         Rodeo Creek that Stage II Earn-In Activities     purchase Hecla Mining common stock
         are complete or Hecla Ventures elects to fund    ("Tranche 3")
         Stage II in lieu.
</TABLE>

         Hecla Ventures shall issue to Great Basin the warrant certificate(s)
         dated as per above within thirty (30) days of the date of the Warrant
         Agreement, substantially in the form of Exhibit G hereto.

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 1 of 14
<PAGE>

         Upon receipt of each Tranche of Hecla Mining Warrants (as defined
         above) Great Basin will issue to Hecla Ventures warrants to purchase
         shares in Great Basin ("Great Basin Warrants") as follows: 1) 1 million
         Great Basin two year Warrants upon receipt of Tranche 1 Hecla Mining
         Warrants; 2) 500,000 Great Basin two year Warrants upon receipt of
         Tranche 2 Hecla Mining Warrants; and 3) 500,000 Great Basin two year
         Warrants upon receipt of Tranche 3 Hecla Mining Warrants. Great Basin
         Warrants will be exercisable at the weighted average closing price for
         the twenty (20) trading days on the Toronto Stock Exchange immediately
         prior to issuance and done substantially in accordance with the form
         Warrant Agreement attached hereto in Exhibit H, subject to Article V.

B.       Earn-in Activities.

         For purposes of this Exhibit E and the Earn-in Agreement, "Earn-in
         Activities" shall mean the following activities conducted in accordance
         with generally accepted mining practices in the United States of
         America.

         Stage I

            *  Plan, engineer and permit (in an expeditious manner) scope of
               work

            *  Develop underground access to Gwenivere and Clementine veins
               including some equipment purchases

            *  Delineate ore shoots within veins

            *  Convert resource to "measured and indicated" based on diamond
               core drilling program

            *  Complete Feasibility Study to determine the scope of work to be
               accomplished in Stage II and the overall feasibility of a mine
               project.

         See attached Scope of Work for Details of Stage I Work. The estimated
         costs to complete Stage I is $10,300,000 and the estimated time to
         complete is 12 months after date of issuance of permit(s) (pursued in
         an expeditious manner on a best efforts and diligent basis by Hecla
         Ventures), however, some permitting and Stage I work Program Activities
         will run concurrently. Earn-In Activities to commence on the Effective
         Date of this Agreement. If the actual costs of Stage I exceed the
         Initial Budget, but are done in accordance with a revised and approved

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 2 of 14
<PAGE>

         Program and Budget, then such additional costs shall apply towards
         Earn-In Expenditures as provided under Section 9.3, Programs and
         Budgets.

         Stage II

            *  Possible future development loop of underground to surface

            *  Underground production development

            *  Production equipment

            *  Surface Facilities and Infrastructure

            *  Engineering, procurement and management construction

                  The estimated costs to complete Stage II are $11,500,000 and
         are estimated to take approximately 12 months to complete. The total
         costs of Stage I and II are estimated at $21,800,000.

                  After completion of Stage II, the subject Properties are
         essentially developed to the point of Commercial Production or where a
         decision can be made whether they are capable of Commercial Production.
         Each Party must notify the other within thirty (30) days after
         completion of Stage II whether it elects to proceed.

C.       Initial Program and Budget for Stage I.

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 3 of 14
<PAGE>

              HOLLISTER DEVELOPMENT BLOCK VENTURE - AUGUST 2, 2002

                     STAGE 1 EXPLORATION PROGRAM AND BUDGET
                                      US $

<TABLE>
<S>                                                                 <C>
Permitting                                                          $   200,000
Project Planning and Engineering                           incl. in Management Services
Equipment and Facilities
              Procurement and Prep                                      653,165
              Mobilization                                               34,630
Drifting and Development
              Ramping, Crosscutting and Diamond Drill
              Stations - 5,780 ft                                     1,992,752
              Drift on Vein - 2,200 ft                                  591,600
              Raising on Veins 750 ft                                   366,200
Indirect Costs                                                        2,580,040
Metallurgy                                                               73,171
                                                               -----------------
              Subtotal - Setup and Construction                       6,491,558

Diamond Drilling - 40,000 ft.                                         1,080,000
Management Services @ 7%                                                530,009
                                                               -----------------
              Subtotal - Project                                      8,101,567

Contingencies
              Ground support                                            350,000
              Water handling                                            200,000
              Environmental 25% of Forecast Permitting Cost              50,000
              Equipment and Facilities                                  498,433
                                                               -----------------
              Subtotal Project with Contingencies                     9,200,000

Other
              Bonding                                                 1,000,000
              Other Contingencies                                       100,000

                                                               -----------------
              Total Estimated Stage I Costs                         $10,300,000
                                                               =================
</TABLE>

      Notes:
              1.  Assumes an E.I.S. is not needed, that an E.A. is sufficient
              2.  Does not include Reclamation
              3.  Phase 2 (USD) = $21.8 m less $10.3 m = $11.5 m

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 4 of 14
<PAGE>

PHASE I: DEFINITION AND CHARACTERIZATION

<TABLE>
<S>      <C>
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------
1.       PROJECT PLANNING / PERMITTING                                       QUANTITY        U/M    UNIT COST          TOTAL
---------------------------------------------------------------------------------------------------------------------------------
1.1.     Manage project planning and engineering                                             incl.                           -
---------------------------------------------------------------------------------------------------------------------------------
1.2.     Review existing Plan of Operations  (POO) to identify  changes to          1           LS  200,000            200,000
facilitate Phase I
---------------------------------------------------------------------------------------------------------------------------------
1.3.     Conduct a data  review for the project  with an initial  focus on                   incl.                           -
hydrogeology,  impacts to  surface  waters,  waste rock  characterization,
cultural impacts, and the existing EA.
---------------------------------------------------------------------------------------------------------------------------------
1.3.     Develop an ARD sampling  plan based on the data review and review                   incl.                           -
the plan with GBG
---------------------------------------------------------------------------------------------------------------------------------
1.4.     Prepare a  conceptual  Phase I plan and  schedule  for  review by                   incl.                           -
GBG, Newmont, and regulatory agencies
---------------------------------------------------------------------------------------------------------------------------------
1.5.     Review the conceptual  Phase I exploration POO and  environmental                   incl.                           -
monitoring  plans with BLM and NDEP prior to actual sample  collection and
analysis.
---------------------------------------------------------------------------------------------------------------------------------
1.6.     Determine  what  existing  permits  can  be  transferred  to  the                   incl.                           -
project, identify and correct deficiencies.
---------------------------------------------------------------------------------------------------------------------------------
1.7.     Pursue  in an  expeditious  manner  all  necessary  environmental                   incl.                           -
permits  to  conduct  an  underground  exploration  program  to define and
characterize mineral resources within the Hollister Development Block.
---------------------------------------------------------------------------------------------------------------------------------
1.8.     Pursue in an expeditious  manner all necessary  local,  state and                   incl.                           -
federal  permits such as but not limited to MSHA, and State of Nevada mine
ID numbers required to conduct the Phase One Scope of Work.
---------------------------------------------------------------------------------------------------------------------------------
1.9.     Pursue  in  an  expeditious  manner  all  necessary  permits  for                   incl.                           -
erection of surface  facilities,  communication  facilities  and all other
permits required by local, state or federal  authorities to accomplish the
Phase One Scope of Work.
---------------------------------------------------------------------------------------------------------------------------------
1.10.    Once  a  significant  geologic  resource  is  identified,   begin                   incl.                           -
permitting for Phase 2 Development.
---------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                      200,000
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
2.       SITE ACCESS                                                         QUANTITY       U/M     UNIT COST          TOTAL
---------------------------------------------------------------------------------------------------------------------------------
2.1.     Maintain  access  that  portion  of the  Midas -  Tuscarora  Road         52        Weeks  1,200               61,920
eastward from the Ken Snyder  turnoff to and including the project  access
road,  consisting of grading,  snow removal and dust suppression  suitable
for the season, traffic and vehicles using the road.
---------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                       61,920
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 5 of 14
<PAGE>

<TABLE>
<S>      <C>
----------------------------------------------------------------------------------------------------------------------------------
3.       SITE UTILITIES                                                       QUANTITY        U/M      UNIT COST        TOTAL
----------------------------------------------------------------------------------------------------------------------------------
3.1.     Procure and  establish  telephone  services  to the  project  site          1            LS      25,000         25,000
adequate for voice communication, fax and data transmission.
----------------------------------------------------------------------------------------------------------------------------------
3.2.1    Design,   supply,   and  install   services  for  electric   power          1            LS      15,000         15,000
sufficient to conduct Phase One Scope of Work.
----------------------------------------------------------------------------------------------------------------------------------
3.2.2    Operate and  maintain  functioning  services  for  electric  power         13         Month      58,462        975,000
sufficient to conduct Phase One Scope of Work.
----------------------------------------------------------------------------------------------------------------------------------
3.3.     Design,  supply,  install and  maintain  functioning  services for         12         Month         833         10,000
compressed air sufficient to conduct Phase One Scope of Work
----------------------------------------------------------------------------------------------------------------------------------
3.4.     Design,  supply,  install and  maintain  functioning  services for          1            LS      91,950         91,950
service water for the underground  work and surface  facilities  sufficient
to conduct  Phase One Scope of Work.  Water will be  available  from a well
owned by Great Basin Gold and trucked to the project  site for storage in a
tank or tanks on site.
----------------------------------------------------------------------------------------------------------------------------------
3.5.     Design,  supply,  install and  maintain  functioning  services for          1            LS      53,000         53,000
water drainage from the  underground  workings  sufficient to conduct Phase
One Scope of Work including required water treatment and disposal systems.
----------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                     1,169,950
----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
4.       SITE INFRASTRUCTURE                                                  QUANTITY        U/M      UNIT COST        TOTAL
----------------------------------------------------------------------------------------------------------------------------------
4.1.     Provide staffing including Project Manager,  Office Manager,  Mine         13         Month      67,269        874,500
Supervisors,  Engineer, Geologist, to carry out the Phase One Scope of Work
in Safe and Environmentally Compliant Manner.
----------------------------------------------------------------------------------------------------------------------------------
4.2.     Provide,   erect  and  maintain  office   facilities  for  Project         13         Month       1,000         29,450
Management, Safety, Environmental, Geologic, and Engineering functions during
the Phase One Scope of Work.
----------------------------------------------------------------------------------------------------------------------------------
4.3.     Using  the  material   generated  from  the   underground   access                    incl.                          -
development, prepare a pad suitable for ore stockpiling.
----------------------------------------------------------------------------------------------------------------------------------
4.4.     Provide and install  maintenance  area for  equipment  used in the          1            LS      50,000         50,000
underground  development which minimizes  contamination  from oils, greases
and waters from equipment.
----------------------------------------------------------------------------------------------------------------------------------
4.5.     Establish  secure  and  orderly  lay down  areas  and  warehousing          1            LS      25,000         25,000
facilities for parts and consumables  necessary to accomplish the Phase One
Scope of Work.
----------------------------------------------------------------------------------------------------------------------------------
4.6.     Provide  an  explosives  storage  area  which  meets all state and                    incl.                            -
federal requirements.
----------------------------------------------------------------------------------------------------------------------------------
4.7.     Erect fuel,  oil and grease  storage areas  including  containment          1            LS      15,000         15,000
areas and fire protection.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 6 of 14
<PAGE>

<TABLE>
<S>      <C>
-----------------------------------------------------------------------------------------------------------------------------------
4.       SITE INFRASTRUCTURE - CONTINUED                                     QUANTITY        U/M      UNIT COST          TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
4.8.     Supply fire  protection  equipment  suitable for each area of the                  incl.                              -
site.
-----------------------------------------------------------------------------------------------------------------------------------
4.9.     Site Grading and  preparation  within the East pit,  portal area,          1          LS     38,000              38,000
and explosive storage area.
-----------------------------------------------------------------------------------------------------------------------------------
4.10.    Provide sanitary facilities for site employees and visitors.               1          LS      9,000               9,000
-----------------------------------------------------------------------------------------------------------------------------------
4.11.    Provide  and erect dry  facilities  for project  crews  including          1          LS     22,100              22,100
miners, drillers,  supervisors,  engineers,  geologists and other staff as
needed.
-----------------------------------------------------------------------------------------------------------------------------------
4.12.    Provide a system  for waste oil and solid  waste  collection  and         12       Month      1,500              18,000
offsite disposal.
-----------------------------------------------------------------------------------------------------------------------------------
4.13.    Provide transportation for employees to site.                             13       Month      7,486              97,320
-----------------------------------------------------------------------------------------------------------------------------------
4.14.    Establish  and operate an accounting  system  capable of tracking                  incl.                              -
costs for each of the major  activities for the Phase One  Exploration and
Characterization work as well as Phase Two Preproduction Development.
-----------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                      1,178,370
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
5.       UNDERGROUND ACCESS DEVELOPMENT                                      QUANTITY        U/M      UNIT COST          TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
5.1.     Establish a secure  portal with locking gate on the 5560 bench in          1          LS     50,000              50,000
the  South  East  side  of the  Hollister  USX  East  Pit  at  approximate
Coordinates 36,990E, 35,780N

-----------------------------------------------------------------------------------------------------------------------------------
5.2.     Excavate a 13 feet wide by 14 feet high decline at  approximately      2,700          Ft        336             907,200
minus 15% 2,700 feet to  approximate  coordinates  of 37170E,  38170N Elev
5178 ft.  Crossing 38000N at 37370E Elevation 5212.
-----------------------------------------------------------------------------------------------------------------------------------
5.3.     Excavate  one  rehandling  and  passing  area at about 1,200 feet         52          Ft        336              17,472
from  portal.  32 feet  long,  13 feet  wide by 14  feet  high  and  widen
decline to 18 feet wide for 50 feet.  20 equivalent feet = 52 feet.
-----------------------------------------------------------------------------------------------------------------------------------
5.5.     From  approximate   coordinates  37170E,   38170N  Elev  5178  ft      2,050          Ft        336             688,800
excavate a 13 feet wide by 14 feet high decline approximately N 75 W 1,275 feet
at about -9.1% parallel to the general strike of the Clementine and Gwenivere
structures to approximate coordinates 35,250 EE, 38520 N, 5,000 feet Elevation.
-----------------------------------------------------------------------------------------------------------------------------------
5.6.     From   approximate   coordinates37170E,   38170N   Elev  5178  ft        560          Ft        336             188,160
Elevation and 36500 E, 38350 N Elevation 5113 ft excavate 13 feet wide by 14
feet high cross cuts approximately220 ft each to cross the East, South and
Central Clementines respectively. From about 36,650 E, 38,300 N Elevation 5,130
ft crosscut `120 feet south to cross the Gwenivere structure and establish a
diamond drill station. at about 36,600, E, 38200 N 5,140 Elev.
-----------------------------------------------------------------------------------------------------------------------------------
5.8.     Carry  all   utilities   necessary  to  perform  the   excavation                  incl.                              -
including  compressed air, fresh and discharge water,  ventilation,  power
and communication.
-----------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                               5,362                                  1,851,632
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 7 of 14
<PAGE>

<TABLE>
<S>      <C>
-----------------------------------------------------------------------------------------------------------------------------------
6.       DIAMOND DRILL STATION EXCAVATION                                    QUANTITY        U/M        UNIT COST        TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
6.1.     Excavate  approximately  20  diamond  drill  stations  along  the        420             Ft          336        141,120
access  decline  beginning at 2,400 ft from the portal,  then  stations at
2,700  feet,  2,900  feet then one every 100 feet along the  decline.  And
one Diamond  drill station at or near the crosscut  intersection  with the
Gwenivere  Structure.  Dimensions  of the drill  stations  will be 20 feet
deep as  measured  from the rib of the  decline,  13 feet wide and 16 feet
high to  accommodate 10 foot core barrels and maximum drill angles of plus
or minus 60 degrees while  maintaining all drilling  equipment  inside the
drill station.
-----------------------------------------------------------------------------------------------------------------------------------
6.3.     Supply  compressed air, mine water,  drainage line and electrical                     incl.                           -
power connections at the entrance to each drill station.
-----------------------------------------------------------------------------------------------------------------------------------
6.4.     Provide  alignment  markings and survey  control for the drilling                     incl.                           -
contractor to use for alignment of drill holes.
-----------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAl                                                                 420                                    141,120
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
7.       DRIFTING AND RAISING ON VEIN                                        QUANTITY        U/M        UNIT COST       TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
7.1.     From  approximately  37,200E,  38,400N Elev 5,200, Drift 400 feet        900             Ft          258        232,200
west and 500 feet  east on the East  Clementine  at a  minimum 7 feet wide
or vein width if vein is wider than 7 feet and 10.5 feet high.
-----------------------------------------------------------------------------------------------------------------------------------
7.2.     From  coordinates  36,500 E, 38450N  Elevation  5,150 feet ,Drift        600             Ft          258        154,800
300 feet  east and 300 feet west on the South  Clementine  Structure  at a
minimum 7 feet wide or vein width if the vein is wider than 7 feet wide.
-----------------------------------------------------------------------------------------------------------------------------------
7.3.     From  Coordinates  36,500 E, 38,550 N  Elevation  5,150 drift 300        600             Ft          258        154,800
feet  east and 300 feet  west on the  Central  Clementine  Structure  at a
minimum 7 feet wide or vein width if the vein is wider than 7 feet.
-----------------------------------------------------------------------------------------------------------------------------------
7.4.     From  Coordinates  36,100 E,  38,200 N  Elevation  5,160 Drift 50        100             Ft          258         25,800
feet east and 50 feet west on the Gwenivere  Structure at a minimum 7 feet
wide or vein width if the vein is wider than 7 feet.
-----------------------------------------------------------------------------------------------------------------------------------
7.5.     Drive Alimak  raises on East  Clementine,  South  Clementine  and        750             ft     See detail      366,200
Central  Clemetine  from  the  drifts  on vein to the  unconformity.  Each
raise will be about 250 feet high.  Unit cost  includes  mobilization  and
set up.
-----------------------------------------------------------------------------------------------------------------------------------
7.5.     Collect and assay face samples in drifts as required.                  1,200         assays           20         24,000
-----------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                               2,950             Ft                     957,800
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 8 of 14
<PAGE>

<TABLE>
<S>      <C>
--------------------------------------------------------------------------
                          RAISING COST DETAIL:

--------------------------------------------------------------------------
                                           1  LS       50000        50000
---------------------------------- ---------- ----- --------- ------------
Set up and Hideaway                       50  ft         258        12900
---------------------------------- ---------- ----- --------- ------------
Raising                                  250  ft         350        87500
---------------------------------- ---------- ----- --------- ------------
Set up and Hideaway                       50  ft         258        12900
---------------------------------- ---------- ----- --------- ------------
Raising                                  250  ft         350        87500
---------------------------------- ---------- ----- --------- ------------
Set up and Hideaway                       50  ft         258        12900
---------------------------------- ---------- ----- --------- ------------
Raising                                  250  ft         350        87500
---------------------------------- ---------- ----- --------- ------------
                                           1  LS       15000        15000
---------------------------------- ---------- ----- --------- ------------
                                   Total Raising                   366200
---------------------------------- -------------------------- ------------

--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
8.       DIAMOND DRILLING                                                   QUANTITY       U/M       UNIT COST        TOTAL
--------------------------------------------------------------------------------------------------------------------------------
8.1.     Drill  approximately   32,000  ft  of  NQ  size  core  into  the     40,000        Ft              25         1,000,000
Clementine  structures  and  8,000 ft into  the  Gwenivere  Structure  as
determined by geologic guidance.
--------------------------------------------------------------------------------------------------------------------------------
8.1.1    Photograph core before splitting.                                                incl.
--------------------------------------------------------------------------------------------------------------------------------
8.1.2    Split  core  with  hydraulic  splitter.  Send one half for assay                 incl.
with other half saved.
--------------------------------------------------------------------------------------------------------------------------------
8.1.3    Sample on geologic  breaks with a minimum of 20 cm and a maximum                 incl.
of 1 m in vein.
--------------------------------------------------------------------------------------------------------------------------------
8.1.4    Send all samples to an accredited  laboratory,  mutually  agreed                 incl.
upon.
--------------------------------------------------------------------------------------------------------------------------------
8.1.5 The lab will have a blind control sample list with instructions incl. to
include 2 pulps in the list with each fired lot. Control samples will include
standard pulps and pulp re-runs.
--------------------------------------------------------------------------------------------------------------------------------
8.1.6    Submit blind  rejects in the amount of 5% of the samples in vein                 incl.
at regular intervals.
--------------------------------------------------------------------------------------------------------------------------------
8.1.7    Compile a quality control report once per month.                                 incl.
--------------------------------------------------------------------------------------------------------------------------------
8.2.     Survey drill holes to collect angles of inclination  and bearing                 incl.                               -
at appropriate intervals.
--------------------------------------------------------------------------------------------------------------------------------
8.3.     Log drill  holes to include  the  following  as a minimum:  rock      4,000      Assays            20            80,000
type,  structure,  RQD,  assays for gold and  silver and other  metals as
requested by geologic staff.
--------------------------------------------------------------------------------------------------------------------------------
8.4.     Collect  samples of each different rock type for analysis of ARD                 incl.                               -
potential
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                      1,080,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
9.       GEOLOGIC CONTROL                                                   QUANTITY       U/M       UNIT COST        TOTAL
--------------------------------------------------------------------------------------------------------------------------------
9.1.     Map  declines  and drifts on an  appropriate  scale for geologic                 incl.                               -
interpretation  and mine planning.  Mapping will record as a minimum rock
type,  structures,  joint orientation,  bedding,  assay results and other
data as deemed necessary by the geologic staff.
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 9 of 14
<PAGE>

<TABLE>
<S>      <C>
--------------------------------------------------------------------------------------------------------------------------------
9.       GEOLOGIC CONTROL-CONTINUED                                         QUANTITY       U/M       UNIT COST        TOTAL
--------------------------------------------------------------------------------------------------------------------------------
9.2.     Collect  samples of all rock types  encountered  in  development                 incl.                               -
for analysis of ARD potential.
--------------------------------------------------------------------------------------------------------------------------------
9.3.     Geologic  mapping  will be  transferred  to  posting  sheets and                 incl.
digitized.
--------------------------------------------------------------------------------------------------------------------------------
9.4.     Longitudinal  sections of each vein showing sampling results and                 incl.
approximate geologic features and limits will be constructed.
--------------------------------------------------------------------------------------------------------------------------------
9.5.     Transverse  cross-sections  will be maintained  and posted as in                 incl.
9.4, above.
--------------------------------------------------------------------------------------------------------------------------------
9.6. Underground samples will be collected to obtain approximately 6 kg / m (5
lbs/ foot), cut horizontally with a hammer, moil, and other appropriate sampling
equipment. A duplicate vein sample will be collected from each face.
--------------------------------------------------------------------------------------------------------------------------------
9.7.     Assays  will be  maintained  in an ACCESS  database  and will be                 incl.
posted to plan and section.
--------------------------------------------------------------------------------------------------------------------------------
9.8      A compilation scale will be determined and updated  periodically                 incl.
to show relevant geologic and assay results.
--------------------------------------------------------------------------------------------------------------------------------
9.9      Will provide daily guidance on drift  placement and size for all                 incl.
on-vein development.
--------------------------------------------------------------------------------------------------------------------------------
9.10     Provide guidance and support for metallurgical testing.                          incl.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                             -
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
10.      SURVEYING                                                             QUANTITY    U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
10.1     Survey  and  detail  all  underground   work  and  compile  onto                 incl.                               -
underground  as built drawings in both digital and hard copy formats at a
scale adequate for mine planning and geologic functions.
--------------------------------------------------------------------------------------------------------------------------------
10.2.    Survey and detail all surface work and compile onto  underground          1        LS              1,800         1,800
as built  drawings  in both  digital  and hard  copy  formats  at a scale
adequate for mine planning and geologic functions.
--------------------------------------------------------------------------------------------------------------------------------
10.3.    Survey all diamond  drill hole collar  locations and bearing and                 incl.                               -
inclination at the collar of each diamond drill hole.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                         1,800
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
11.      UNDERGROUND INFRASTRUCTURE
--------------------------------------------------------------------------------------------------------------------------------
11.1.    Install and maintain the  following as necessary and as required                 incl.                               -
by State and Federal  regulations:  mine  ventilation,  mine fresh water,
mine discharge water, compressed air, communication, refuge area.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                             -
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 10 of 14
<PAGE>

<TABLE>
<S>      <C>
--------------------------------------------------------------------------------------------------------------------------------
12.      MINE EQUIPMENT                                                     QUANTITY       U/M        UNIT COST        TOTAL
--------------------------------------------------------------------------------------------------------------------------------
12.1.    Provide mobile mining equipment,  service  equipment,  and fixed          1        LS            290,791       290,791
facilities necessary to accomplish the Scope of Work, to include but not limited
to the following: Diesel-hydraulic drill jumbo, 3.5yd LHD, 6 yd LHD 16 ton
underground haul truck, Underground service truck, Scissor-Lift truck, Personnel
tractors, Crew-vans for surface transportation, Emergency First-Aid vehicle,
Underground mine fans, power-centers, switchgear.
--------------------------------------------------------------------------------------------------------------------------------
12.2.    Necessary Reconditioning of Equipment                                     1        LS            212,374       212,374
--------------------------------------------------------------------------------------------------------------------------------
12.3.    Mobilize Equipment to Project, place equipment in service                 1        LS             34,630        34,630
--------------------------------------------------------------------------------------------------------------------------------
12.4.    Additional  Equipment  not  available  from  Rosebud  to include          1        LS            150,000       150,000
handheld  drills,  smaller LHDs and one additional  large LHD for Decline
development.  All Equipment reconditioned.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                       687,795
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
13.      GEOTECHNICAL EVALUATION
--------------------------------------------------------------------------------------------------------------------------------
13.1.    Coordinate/perform  the  geotechnical  evaluations  necessary to          1        LS             15,000        15,000
carry out  ground  support  design in all  underground  openings,  and to
carry out potential stope design/layouts.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        15,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
14.      BULK SAMPLE COLLECTION
--------------------------------------------------------------------------------------------------------------------------------
14.1.    From drifts on Clementine and Gwenivere Veins,  collect material                 incl.                               -
representative  of future mine  production  for pilot testing and/or test
milling.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                             -
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
15.      ENVIRONMENTAL CHARACTERIZATION
--------------------------------------------------------------------------------------------------------------------------------
15.1.    Environmental  monitoring and reporting as required by permit or         13      Month             5,400        70,200
regulation.
--------------------------------------------------------------------------------------------------------------------------------
15.2.    Acid base  accounting on  representative  samples of development                 incl.                               -
material.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        70,200
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
16.      METALLURGICAL TESTING                                              QUANTITY       U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
16.1.    Preliminary Assessment Of Appropriate Processing Methods
--------------------------------------------------------------------------------------------------------------------------------
16.1.1.  Perform  cyanide  soluble  assays on  selected  pulps.  Identify          1        LS             20,000        20,000
general precious metal extraction,  refractory gold or silver occurrence,
potential preg robbing, soluble base metals.
--------------------------------------------------------------------------------------------------------------------------------
16.1.2.  Compile a  database  of  sample  locations,  total  and  cyanide                 incl.
soluble  assays and  pertinent  geology log data to  delineate  different
metallurgical ore types.
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 11 of 14
<PAGE>

<TABLE>
<S>      <C>
--------------------------------------------------------------------------------------------------------------------------------
16.      METALLURGICAL TESTING-CONTINUED                                       QUANTITY    U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
16.1.3.  Identify   potential   material  handling  problems  (i.e.  high                 incl.
moisture or high clay content).
--------------------------------------------------------------------------------------------------------------------------------
16.1.4.  Review  mineralogy  and ore types of nearby mines (i.e.  Ramarco                 incl.
and Midas).
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        20,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
16.2.    SELECTION  AND  COMPOSITE OF  METALLURGICAL  SAMPLES FOR FURTHER
STUDY
--------------------------------------------------------------------------------------------------------------------------------
16.2.1.  Categorize core into separate ore types.                                  1        LS              5,000         5,000
--------------------------------------------------------------------------------------------------------------------------------
16.2.2.  Select core intervals  within ore types that  represent  several                 incl.                               -
grade ranges.
--------------------------------------------------------------------------------------------------------------------------------
16.2.3.  Composite  intervals  to obtain a  representative  metallurgical                 incl.                               -
sample of a particular ore type for a particular grade range.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                         5,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
16.3.    METALLURGICAL TESTING PROGRAM

--------------------------------------------------------------------------------------------------------------------------------
16.3.1.  Feed  Preparation & Head  Analysis.  Determine head feed by fire          1        LS              2,662         2,662
assay, trace elements by ICP, and Bond ball mill work index.
--------------------------------------------------------------------------------------------------------------------------------
16.3.2.  Grind  & Leach  Kinetics  Tests.  Determine  the  mesh of  grind          1        LS              4,345         4,345
versus recovery relationship, optimum leach time
--------------------------------------------------------------------------------------------------------------------------------
16.3.3.  Cyanide   Optimization   Tests.    Determine   optimum   cyanide          1        LS              3,575         3,575
concentration  in the leach slurry,  cyanide  consumption  at the optimum
concentration.
--------------------------------------------------------------------------------------------------------------------------------
16.3.4.  Comparison  Carbon In Leach versus Counter  Current  Decantation          1        LS              3,960         3,960
Processes.  Perform  duplicate  standard  cyanidation and carbon in leach
bottle roll tests.  Determine metal extractions and reagent  consumption,
carbon loading for gold and silver.
--------------------------------------------------------------------------------------------------------------------------------
16.3.5.  Process  Confirmation Tests.  Perform agitated cyanidation tests          1        LS              9,405         9,405
using optimized  parameters.  Analyze all residues  including  carbon for
gold and silver.  Determine metal  extractions  and reagent  consumption.
Perform agitated cyanidation tests using optimized parameters.
--------------------------------------------------------------------------------------------------------------------------------
16.3.6.  Thickening & Filtration  Tests.  Perform  flocculent  screening,          1        LS              3,520         3,520
Kynch and  filter  leaf  tests on the  ground  feed and leach  residue to
determine thickening and filtration area requirements.
--------------------------------------------------------------------------------------------------------------------------------
16.3.7.  Environmental   Tests.   TCLP  test  on  leach   residue.   Acid          1        LS                493           493
generating / acid  neutralization  potential  tests on  ground  feed and
leach residue.
--------------------------------------------------------------------------------------------------------------------------------
16.3.8   Lab project management and reporting                                      1        LS              2,712         2,712
--------------------------------------------------------------------------------------------------------------------------------
16.3.9   Hecla project management and review.                                      1        LS              9,500         9,500
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        40,171
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 12 of 14
<PAGE>

<TABLE>
<S>      <C>
--------------------------------------------------------------------------------------------------------------------------------
17.      RESOURCE MODELING                                                     QUANTITY    U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
17.1.    Model the resource  delineated by drifting and drilling  using a             1     LS             30,000        30,000
software package or packages to be agreed upon by Great Basin and Hecla.
--------------------------------------------------------------------------------------------------------------------------------
17.2.    Construct a drill hole and chip sample database  appropriate for                 incl.
resource estimate.
--------------------------------------------------------------------------------------------------------------------------------
17.3.    Supply  geologic  model and data as required and  appropriate to                 incl.
conduct resource estimate.
--------------------------------------------------------------------------------------------------------------------------------
17.4.    Conduct  in-house  resource  estimate  using  its  software  and                 incl.
personnel and/or outside consultants as directed by Management Committee.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        30,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
18.      MARKETING                                                             QUANTITY    U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
18.1.    Tour  surrounding  area  process  facilities  of  the  Hollister          1        LS              8,000         8,000
Development Block.
--------------------------------------------------------------------------------------------------------------------------------
18.2.    Determine process efficiencies with Hollister  Development Block                 incl.
ore for each facility
--------------------------------------------------------------------------------------------------------------------------------
18.3.    Determine distance from the mine (haulage costs).                                incl.
--------------------------------------------------------------------------------------------------------------------------------
18.4.    Determine  tonnage  capacity (mill  throughput and tails storage                 incl.
availability).
--------------------------------------------------------------------------------------------------------------------------------
18.5.    Determine  if stand  alone  milling  or  co-mingling  of  owners                 incl.
(others) ore.
--------------------------------------------------------------------------------------------------------------------------------
18.6.    Determine refining capabilities.                                                 incl.
--------------------------------------------------------------------------------------------------------------------------------
18.7.    Negotiate preliminary contract agreement.                                        incl.
--------------------------------------------------------------------------------------------------------------------------------
18.8.    Propose custom and toll milling agreements.                                      incl.
--------------------------------------------------------------------------------------------------------------------------------
18.9.    Select process facility and finalize contract agreement.                         incl.
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                         8,000
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
19.      PRE FEASIBILITY STUDY                                              QUANTITY       U/M          UNIT COST         TOTAL
--------------------------------------------------------------------------------------------------------------------------------
19.1.    Prepare  conceptual  mine plans  compatible  with data  gathered          6      Month             8,800        52,800
from drilling, drifting on vein, geotechnical evaluation and test mining.
--------------------------------------------------------------------------------------------------------------------------------
19.2.    Develop  economic  model of  Conceptual  Mine  Plan  and  custom                 incl.                               -
milling operation.
--------------------------------------------------------------------------------------------------------------------------------
19.3.    With a combination  of Hecla in house costing data base and zero                 incl.                               -
based costing, evaluate production rates in the Conceptual Mine Plan(s).
--------------------------------------------------------------------------------------------------------------------------------
19.4.    Develop capital cost  estimates,  scope of work and schedule for                 incl.                               -
pre production program and budget (Phase 2).
--------------------------------------------------------------------------------------------------------------------------------
19.5.    Evaluate  Return on  Investment  and Net Present  Value,  price,                 incl.                               -
capital, grade and operating cost sensitivities
--------------------------------------------------------------------------------------------------------------------------------
         SUBTOTAL                                                                                                        52,800
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
         GRAND TOTAL                                                                                                  7,571,558
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-in Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 13 of 14
<PAGE>

                            CONTINGENCY CALCULATIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  COST ITEM AFFECTED    COST ITEM    BASE UNIT     UNITS      TOTAL    UNITS   % OF   QUANTITY   POSSIBLE   CONTINGENCY   PER CENT
  ------------------    ---------    ---------     -----      -----    -----   ----   --------   --------   -----------   --------
                          AMOUNT   COST AFFECTED             QUANTITY          TOTAL  AFFECTED  PERCENTAGE    AMOUNT    REDUCTION IN
                          ------   -------------             --------          -----  --------  ----------    ------    ------------
                                                                                                 INCREASE               ADVANCE RATE
------------------------------------------------------------------------------------------------------------------------------------
GROUND SUPPORT
--------------
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                <C>  <C>           <C>        <C>    <C>    <C>         <C>       <C>                <C>
  5. UNDERGROUND ACCESS  $1,851,632         $15  $/ft Ground   5,362      ft     30%    1608.6      100%      $ 24,129           50%
  DEVELOPMENT                                    Support

------------------------------------------------------------------------------------------------------------------------------------
                                            132  $/ft Labor    5,362      ft      30%    1608.6     100%      $212,335
------------------------------------------------------------------------------------------------------------------------------------
  6. DIAMOND DRILL          141,120         $15  $/ft Ground     420      ft      30%       126     100%      $  1,890           50%
  STATION EXCAVATION                             Support

------------------------------------------------------------------------------------------------------------------------------------
                                            132  $/ft Labor      420      ft      30%       126     100%      $ 16,632
------------------------------------------------------------------------------------------------------------------------------------
  7. DRIFTING ON VEIN       957,800         $15  $/ft Ground   2,200      ft      30%       660     100%      $  9,900           50%
                                                 Support
------------------------------------------------------------------------------------------------------------------------------------
                                            132  $/ft Labor    2,200      ft      30%       660     100%      $ 87,120
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  TOTAL GROUND SUPPORT CONTINGENCY                                                                            $352,006
  --------------------------------
------------------------------------------------------------------------------------------------------------------------------------
WATER HANDLING
--------------
------------------------------------------------------------------------------------------------------------------------------------
  5. UNDERGROUND ACCESS  $1,851,632         132  $/ft Labor    5,362      ft      50%     2,681      15%      $ 53,084           15%
  DEVELOPMENT

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  6. DIAMOND DRILL          141,120         132  $/ft Labor      420      ft      50%       210      15%      $  4,158           15%
  STATION EXCAVATION

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  7. DRIFTING ON VEIN       957,800         132  $/ft Labor     2200      ft      50%     1,100      15%      $ 21,780           15%

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  4. SITE INFRASTRUCTURE     53,000      53,000  Construction      1    L.S.     100%                50%      $ 26,500             0
                                                 of Settling
                                                 pond and water
                                                 disposal/recycling
                                                 system
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  TOTAL WATER HANDLING CONTINGENCY AMOUNT                                                                     $105,522
  ---------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         Exhibit E to Earn-In Agreement
                Expenditure Schedule and Initial Program & Budget
                                  Page 14 of 14
<PAGE>

                                    EXHIBIT F
                            JOINT OPERATING AGREEMENT

                         Exhibit F to Earn-In Agreement
                            Joint Operating Agreement
                                  Page 1 of 48
<PAGE>

                                    EXHIBIT G
                                WARRANT AGREEMENT

THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED OR QUALIFIED FOR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND ANY SUCH APPLICABLE STATE LAWS.

                              HECLA MINING COMPANY

                         WARRANT CERTIFICATE TO PURCHASE
                             SHARES OF COMMON STOCK

Date of Issuance: ___________________, 200_                      Certificate W-1

         FOR VALUE RECEIVED, Hecla Mining Company, a Delaware corporation (the
"Company"), hereby grants to Great Basin Gold Ltd. and/or its registered assigns
pursuant to Section 5 hereof (each, a "Registered Holder") the right to purchase
from the Company an aggregate of ________ of the Company's shares of common
stock, $0.25 par value per share ("Common Stock"), at a price per share of
$____, (the "Exercise Price") which price shall be the weighted average daily
closing price per share for the common stock of the Company for the twenty (20)
trading days immediately prior to the date of this Warrant Agreement, as
adjusted pursuant to Section 2 hereof.

         This Warrant is subject to the following provisions:

         Section 1. Exercise of Warrant.

         1A. Two Year Exercise Period. The Registered Holder may exercise, in
whole or in part, the purchase rights represented by this Warrant at any time
and from time to time during the two year period commencing on ____________,
200_ and ending on ______________, 200_ (the "Exercise Period").

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 1 of 11
<PAGE>

         1B. Exercise Procedure.

         (i) This Warrant shall be deemed to have been exercised when the
Company has received all of the following items (the "Exercise Time"):

                  (a) a completed Exercise Agreement, as described in paragraph
         1C below, executed by the Registered Holder;

                  (b) this Warrant;

                  (c) an Assignment or Assignments in the form set forth in
         Exhibit I if the Warrant is exercised by any Registered Holder other
         than Great Basin Gold Ltd.; and

                  (d) a cashier's check or wire transfer to the Company in an
         amount equal to the product of the Exercise Price multiplied by the
         number of shares of Common Stock being purchased upon such exercise
         (the "Aggregate Exercise Price").

         (ii) Certificates for Common Stock, if any, purchased upon exercise of
this Warrant shall be delivered by the Company to the Registered Holder within
three business days after the date of the Exercise Time. Unless this Warrant has
expired or all of the purchase rights represented hereby have been exercised,
the Company shall prepare a new Warrant, substantially identical hereto,
representing the rights formerly represented by this Warrant which have not
expired or been exercised and shall, within such three-day period, deliver such
new Warrant to the person designated for delivery in the Exercise Agreement.

         (iii) The shares of Common Stock issuable upon the exercise of this
Warrant shall be deemed to have been issued to the Registered Holder at the
Exercise Time, and the Registered Holder shall be deemed for all purposes to
have become the record holder of such Common Stock at the Exercise Time.

         (iv) The issuance of certificates for the Common Stock, if any, upon
exercise of this Warrant shall be made without charge to the Registered Holder
for any issuance tax in respect thereof or other cost incurred by the Company in
connection with such exercise and the related issuance of Common Stock. Each

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 2 of 11
<PAGE>

share of Common Stock issuable upon exercise of this Warrant shall, when issued,
be duly and validly issued and free from all taxes, liens and charges. The
company shall prepare and file at its expense a registration statement with the
United States Securities and Exchange Commission ("SEC") forthwith after
issuance hereof and use its reasonable best efforts to obtain SEC approval
thereof so that any Common Stock acquired by exercise hereof is freely tradeable
in the United States within four (4) months from the date of issuance of this
warrant. Until registration of such Common Stock, each certificate shall bear
the following legend:

                  The shares of common stock of Hecla Mining Company represented
                  by this certificate have been issued pursuant to an exemption
                  from registration under the Securities Act of 1933 and may not
                  be resold without registration thereunder or an exemption
                  therefrom. The issuer may require an opinion of counsel
                  reasonably satisfactory to it to the effect that such an
                  exemption is available before permitting transfer of such
                  shares.

         (v) The Company shall assist and cooperate with any Registered Holder
required to make any governmental filings or obtain any governmental approvals
prior to or in connection with any exercise of this Warrant, without limitation,
making any filings required to be made by the Company.

         (vi) The Company shall take all such actions as may be necessary to
assure that all such shares of Common Stock may be so issued without violation
of any applicable law or governmental regulation or any requirements of any
domestic securities exchange upon which securities of the Company or their
equivalents may be listed (except for official notice of issuance which shall be
immediately delivered by the Company upon such issuance).

         (vii) Notwithstanding any other provision hereof, if an exercise of any
portion of this Warrant is to be made in connection with a registered public
offering of the Company, the sale of the Company or pursuant to Section 3
hereof, the exercise of any portion of this Warrant may, at the election of the
Registered Holder hereof, be conditioned upon the consummation of the public
offering, the sale or the event referred to in the notice described in Section
3, in which case such exercise shall not be deemed to be effective until the
consummation of such transaction.

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 3 of 11
<PAGE>

         1C. Exercise Agreement. Upon any exercise of this Warrant, the Exercise
Agreement shall be substantially in the form set forth in Exhibit II hereto. If
the number of shares of Common Stock to be issued does not include all the
Common Stock purchasable hereunder, it shall also state the Registered Holder to
whom a new Warrant for the unexercised portion of the rights hereunder is to be
delivered. Such Exercise Agreement shall be dated the actual date of execution
thereof.

         Section 2. Adjustment of Exercise Price and Number of Shares of Common
Stock. In order to prevent dilution of the rights granted under this Warrant,
the Exercise Price shall be subject to adjustment from time to time as provided
in this Section 2, and the number of shares of Common Stock obtainable upon
exercise of this Warrant shall be subject to adjustment from time to time as
provided in this Section 2.

         2A. Subdivision or Combination of Common Stock. If the Company at any
time subdivides (by any split, dividend, recapitalization or otherwise) its
outstanding Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision shall be proportionately reduced
and the number of shares of Common Stock obtainable upon exercise of this
Warrant shall be proportionately increased. If the Company at any time combines
(by reverse split or otherwise) its Common Stock into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of shares of Common Stock obtainable
upon exercise of this Warrant shall be proportionately decreased.

         2B. Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation, merger,
sale of all or substantially all of the Company's assets or other transaction,
in each case which is effected in such a way that the holders of Common Stock
are entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for the Common Stock is
referred to herein as an "Organic Change." Prior to the consummation of any
Organic Change, the Company shall make appropriate provision (in form and
substance satisfactory to the Registered Holders of the Warrants representing a
majority of the Common Stock obtainable upon exercise of all Warrants then
outstanding) to insure the Registered Holder of the Warrant shall thereafter be

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 4 of 11
<PAGE>

entitled to receive, upon exercise of this Warrant, the numbers or amount of
shares of stock, securities or assets resulting from such Organic Change that a
holder of the Common Stock deliverable upon exercise of this Warrant would have
been entitled to receive as a result of such Organic Change If the Warrant had
been exercised immediately before the effective date of such Organic Change. In
any such case, the Company shall make appropriate provision (in form and
substance satisfactory to the Registered Holders of the Warrants representing a
majority of the shares of Common Stock obtainable upon exercise of all Warrants
then outstanding) with respect to such holders' rights and interests to insure
that the provisions of this Section 2 and Sections 3 and 4 hereof shall
thereafter be applicable to the Warrant (including, in the case of any such
consolidation, merger or sale in which the successor entity or purchasing entity
is other than the Company, an immediate adjustment of the Exercise Price to the
value for the Common Stock reflected by the terms of such consolidation, merger
or sale, and a corresponding immediate adjustment in the number of shares of
Common Stock acquirable and receivable upon exercise of the Warrant, if the
value so reflected is less than the Exercise Price in effect immediately prior
to such consolidation, merger or sale). The Company shall not effect any such
consolidation, merger or sale, unless prior to the consummation thereof, the
successor entity (if other than the Company) resulting from consolidation or
merger or the entity purchasing such assets assumes by written instrument (in
form and substance satisfactory to the Registered Holders of Warrants
representing a majority of the shares of Common Stock obtainable upon exercise
of all of the Warrants then outstanding), the obligation to deliver to each such
holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such holder may be entitled to acquire.

         2C. Certain Events. If any event occurs of the type contemplated by the
provisions of this Section 2 but not expressly provided for by such provisions,
then the Company shall make an appropriate adjustment in the Exercise Price and
the number of shares of Common Stock obtainable upon exercise of this Warrant so
as to protect the rights of the Registered Holders.

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 5 of 11
<PAGE>

         2D. Notices.

                  (i) Immediately upon any adjustment of the Exercise Price, the
Company shall give written notice thereof to the Registered Holder, setting
forth in reasonable detail and certifying the calculation of such adjustment.

                  (ii) The Company shall give written notice to the Registered
Holder at least 10 days prior to the date on which the Company intends to (A)
make any pro rata subscription offer to holders of Common Stock or (B)
consummate any Organic Change, dissolution or liquidation.

         Section 3. Intention to Exercise. If the Company gives a notice
described in paragraph (ii) of Section 2D and the Registered Holder informs the
Company in writing within 10 days of receipt of such notice that it intends to
exercise the Warrant in whole or in part, the Company shall not make or
consummate the event described in such notice before the earlier of (i) the
completion of the exercise of the Warrant in whole or in part or (ii) 30 days
after the date the Registered Holder informs the Company of its intention to
exercise. If the event described in such notice is the liquidation of the
Company, whether or not the Registered Holder responds to such notice, the
Company shall pay to the Registered Holder the payment or payments (net of the
Exercise Price), if any, that would have been made to such Registered Holder on
the Common Stock had this Warrant been exercised in full immediately prior to
the liquidation.

         Section 4. No Voting Rights; Limitations of Liability. This Warrant
shall not entitle the Registered Holder to any voting rights or other rights as
a holder of Common Stock in the Company. No provision hereof, in the absence of
affirmative action by the Registered Holder to purchase Common Stock, and no
enumeration herein of the rights or privileges of the Registered Holder shall
give rise to any liability of such holder for the Exercise Price of Common Stock
acquirable by exercise hereof or as a holder of a Common Stock in the Company.

         Section 5. Warrant Transferable. This Warrant and all rights hereunder
are not transferable, in whole or in part, without the consent of the Company.
Upon receipt of such consent, the Warrant will be transferred without charge to
the Registered Holder, upon surrender of this Warrant with a properly executed
Assignment (in the form of Exhibit I hereto) at the principal office of the
Company. As soon as practicable after the transfer, the Company will prepare new
Warrants for the assigning and new Registered Holders, substantially identical
hereto, but reflecting the number of shares of Common Stock the assigning and
new Registered Holders are entitled to receive upon exercise of the applicable
Warrant.

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 6 of 11
<PAGE>

         Section 6. Warrant Exchangeable for Different Denominations. This
Warrant is exchangeable, upon the surrender hereof by the Registered Holder at
the principal office of the Company, for new Warrants of like tenor representing
in the aggregate the purchase rights hereunder, and each of such new Warrants
shall represent such portion of such rights as is designated by the Registered
Holder at the time of such surrender. The date the Company initially issues this
Warrant shall be deemed to be the "Date of Issuance" hereof regardless of the
number of times new certificates representing the unexpired and unexercised
rights formerly represented by this Warrant shall be issued. All Warrants
representing portions of the rights hereunder are referred to herein as the
"Warrant."

         Section 7. Replacement. Upon receipt of evidence reasonably
satisfactory to the Company (an affidavit of the Registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction or mutilation of
any certificate evidencing this Warrant, and in the case of any such loss, theft
or destruction, upon receipt of indemnity reasonably satisfactory to the Company
(provided that if the holder is a financial institution or other institutional
investor its own agreement shall be satisfactory), or, in the case of any such
mutilation upon surrender of such certificate, the Company shall (at its
expense) execute and deliver in lieu of such certificate a new certificate of
like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

         Section 8. Notices. Except as otherwise expressly provided herein, all
notices referred to in this Warrant shall be in writing and shall be delivered
personally, sent by reputable overnight courier service (charges prepaid) or
sent by registered or certified mail, return receipt requested, postage prepaid
and shall be deemed to have been given when so delivered or deposited in the
U.S. Mail (i) to the Company, at its principal executive offices and (ii) to the
Registered Holder of this Warrant, at such holder's address as it appears in the
records of the Company (unless otherwise indicated by any such holder).

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 7 of 11
<PAGE>

         Section 9. Amendment and Waiver. Except as otherwise provided herein,
the provisions of the Warrant may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Registered
Holders of Warrants representing a majority of the shares of Common Stock
obtainable upon exercise of the Warrants; provided that no such action may
change the Exercise Price of the Warrants or the number of shares or class of
shares obtainable upon exercise of each Warrant without the written consent of
all of the Registered Holders of Warrants.

         Section 10. Descriptive Headings; Governing Law. The descriptive
headings of the several Sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. The laws of the
State of Delaware shall govern all issues concerning the relative rights of the
Company and its members and interpretation of this Agreement.

         Section 11. Voting of Shares. So long as any Registered Holders and/or
its affiliates ("Registered Holder Group") hold, along or in the aggregate at
least ten percent (10%) of the shares of Common Stock issued to the Registered
Holder Group upon exercise of this Warrant, the Registered Holder Group agrees
to vote all of the shares of Common Stock held by the Registered Holder Group at
any annual or special meeting of the shareholders of the Company in accordance
with the recommendations of the Company's chief executive officer.

         Section 12. Trading Limitation. Except as otherwise permitted herein,
the Registered Holder Group shall not, individually or in the aggregate, dispose
of more than fifty thousand (50,000) share of Common Stock during any one
trading day. In addition, so long as the Registered Holder Group continues to
hold at least twenty percent (20%) of the shares of Common Stock issued upon
exercise of this Warrant, the Registered Holder Group shall provide the Company
with reasonable advance notice of any such sale of the shares of Common Stock.
The Registered Holder Group shall not be obligated to complete any sale of
shares of Common Stock even if it has provided the Company with advance written
notice of such sale, but the Registered Holder Group shall notify Company of its
withdrawal of any shares of Common Stock from the market with respect to which
the Registered Holder Group has provided prior notice of sale. Company shall
notify the Registered Holder Group of the pendency of a sale under any

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 8 of 11
<PAGE>

underwritten public offering by Company of Common Stock or any other Company
equity security, in which event the Registered Holder Group shall not effect any
sales of any shares of Common Stock within five (5) days prior to the
commencement of or during such underwritten public offering. The Registered
Holder Group shall have the right to sell any amount of shares of Common Stock
in a private transaction, provided that (i) any such sale shall not be reported
or reportable on any exchange or other public market where shares of Common
Stock are or may in future be traded, and (ii) the purchaser in such private
transaction agrees in writing that, for a period of six (6) months from and
after the date of such purchase and sale of shares of Common Stock, such
purchaser shall not sell any such shares of Common Stock. In addition, the
Registered Holder Group shall be permitted to pledge any number of shares of
Common Stock to an arm's-length lender to secure payment of a bona fide loan or
other indebtedness, subject to the terms hereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
and attested by its duly authorized officers and to be dated the Date of
Issuance hereof.

                                        HECLA MINING COMPANY

                                        By: NOT FOR SIGNATURE - FORM ONLY
                                            ------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 9 of 11
<PAGE>

                         EXHIBIT I TO WARRANT AGREEMENT

                                   ASSIGNMENT

         FOR VALUE RECEIVED, _________________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant (Certificate No. W-_____________) with respect to the number of shares
of Common Stock covered thereby set forth below, unto:

     Names of Assignee               Address                 Number of Shares
     -----------------               -------                 ----------------

Dated:                                  Signature NOT FOR SIGNATURE - FORM ONLY
                                                  -----------------------------

                                        Witness
                                                -------------------------------

                         Exhibit G to Earn-in Agreement
                             Hecla Warrant Agreement
                                  Page 10 of 11
<PAGE>

                         EXHIBIT II TO WARRANT AGREEMENT

                               EXERCISE AGREEMENT

To:                                             Dated:

         The undersigned, pursuant to the provisions set forth in the attached
Warrant (Certificate No. W-___________), hereby agrees to subscribe for the
purchase of __________ shares of Common Stock covered by such Warrant and makes
payment herewith in full therefore at the price per share provided by such
Warrant. If any new Warrant will be prepared under Section 1B(ii) of the
Warrant, please deliver it to _________, a Registered Holder.

                                        Signature NOT FOR SIGNATURE - FORM ONLY
                                                  -----------------------------

                                        Address
                                                -------------------------------

                         Exhibit G to Earn-In Agreement
                             Hecla Warrant Agreement
                                  Page 11 of 11
<PAGE>

                                    EXHIBIT H

                                WARRANT AGREEMENT

WITHOUT THE PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE
WITH ALL APPLICABLE SECURITIES LEGISLATION, THE COMMON SHARES, WHICH MAY BE
ACQUIRED ON EXERCISE OF THESE WARRANTS, MAY NOT BE SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE
EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL *, 2002. [FOUR MONTHS]

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES
ACT"). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT
OF THE ISSUER THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (A) TO THE ISSUER, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE
WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT IF APPLICABLE, (C)
INSIDE THE UNITED STATES (1) PURSUANT TO THE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF
AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (2) IN A
TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR
ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF
SECURITIES, AND THE HOLDER HAS PRIOR TO SUCH SALE FURNISHED TO THE ISSUER AN
OPINION OF COUNSEL.

Date of Issuance: _____________________, 2002
Warrant Certificate Number:     W-*

                              GREAT BASIN GOLD LTD.

                       SUITE 1020 - 800 WEST PENDER STREET

                             VANCOUVER, B.C. V6C 2V6

                  TELEPHONE: (604) 684-6365 FAX: (604) 684-8092

WARRANT CERTIFICATE TO PURCHASE ___________
SHARES OF COMMON STOCK

THE RIGHT TO PURCHASE COMMON SHARES UNDER THIS WARRANT EXPIRES AT 5:00 P.M.
(VANCOUVER TIME) ON *, 2004 (THE "EXPIRY DATE").

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 1 of 11
<PAGE>

ANY SHARES ACQUIRED BY EXERCISE PRIOR TO *, 2002 WILL BE SUBJECT TO RESALE
RESTRICTIONS IN CANADA UNTIL THAT DATE AND WILL BEAR A LEGEND TO THIS EFFECT.

FOR VALUE RECEIVED, GREAT BASIN GOLD LTD., a British Columbia corporation (the
"Company"), hereby grants to HECLA VENTURES CORP. (the "Registered Holder") the
right to purchase from the Company * of the Company's shares of common stock
("Common Stock"), at a price per share of $____, which price is the weighted
average daily closing price per share for the common stock of the Company for
the twenty (20) trading days immediately prior to the Date of this Warrant.

This Warrant is subject to the following provisions:

         Section 1. Exercise of Warrant.

         1A. Two Year Exercise Period. The Registered Holder may exercise, in
whole or in part, the purchase rights represented by this Warrant at any time
and from time to time during the two year time period commencing on
____________, 200_ and ending on _________________, 200_ (the "Exercise
Period").

         1B. Exercise Procedure.

                  (i) This Warrant shall be deemed to have been exercised at the
time when the Company has received all of the following items (the "Exercise
Time"):

                           (a) a completed Exercise Agreement, as described in
paragraph 1C below, executed by the Registered Holder;

                           (b) this Warrant; and

                           (c) a cashier's or certified check or wire transfer
to the Company in an amount equal to the product of the Exercise Price
multiplied by the number of shares of Common Stock being purchased upon such
exercise (the "Aggregate Exercise Price").

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 2 of 11
<PAGE>

                  (ii) Certificates for Common Stock, if any, purchased upon
exercise of this Warrant shall be delivered by the Company to the Registered
Holder within three business days after the date of the Exercise Time. Unless
this Warrant has expired or all of the purchase rights represented hereby have
been exercised, the Company shall prepare a new Warrant, substantially identical
hereto, representing the rights formerly represented by this Warrant which have
not expired or been exercised and shall, within such three-day period, deliver
such new Warrant to the person designated for delivery in the Exercise
Agreement.

                  (iii) The shares of Common Stock issuable upon the exercise of
this Warrant shall be deemed to have been issued to the Registered Holder at the
Exercise Time, and the Registered Holder shall be deemed for all purposes to
have become the record holder of such Common Stock at the Exercise Time.

                  (iv) The issuance of certificates for the Common Stock, if
any, upon exercise of this Warrant shall be made without charge to the
Registered Holder or the Purchaser for any issuance tax in respect thereof or
other cost incurred by the Company in connection with such exercise and the
related issuance of Common Stock. Each share of Common Stock issuable upon
exercise of this Warrant shall, when issued, be duly and validly issued and free
from all taxes, liens and charges.

                  (v) The Company shall assist and cooperate with any Registered
Holder required to make any governmental filings or obtain any governmental
approvals prior to or in connection with any exercise of this Warrant
(including, without limitation, making any filings required to be made by the
Company) including prompt notice and application to list any Common Shares
issuable on exercise hereof on the TSX Venture Exchange. . Any Common Stock
acquired by exercise hereof is freely tradeable in Canada after four (4) months
from the date of issuance of this warrant. Until the expiry of such four (4)
month period, all certificates of Common Stock issued to Registered Holder by
Exercise of its rights hereunder shall bear the following legend:

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 3 of 11
<PAGE>

                  UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
                  THE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE *, 2002.

                  WITHOUT THE PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE
                  AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE
                  SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
                  TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH
                  THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN
                  CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL
                  *, 2002.

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT
                  BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
                  AS AMENDED (THE "U.S. SECURITIES ACT"). THE HOLDER HEREOF, BY
                  PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE
                  ISSUER THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR
                  OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER, (B) OUTSIDE THE
                  UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S
                  UNDER THE U.S. SECURITIES ACT IF APPLICABLE, (C) INSIDE THE
                  UNITED STATES (1) PURSUANT TO THE EXEMPTION FROM THE
                  REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT
                  PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN
                  ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (2) IN A
                  TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S.
                  SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS
                  GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS
                  PRIOR TO SUCH SALE FURNISHED TO THE ISSUER AN OPINION OF
                  COUNSEL.

                  (vi) The Company shall take all such actions as may be
necessary to assure that all such shares of Common Stock may be so issued
without violation of any applicable law or governmental regulation or any
requirements of any domestic securities exchange upon which securities of the
Company or their equivalents may be listed (except for official notice of
issuance which shall be immediately delivered by the Company upon such
issuance). The Company shall file a qualifying issuer certificate with the TSX
Venture Exchange within ten (10) days after the Date of Issuance for each
Warrant Certificate issued hereunder and take other actions as required by
applicable law to make such shares of Common Stock freely tradeable through the
TSX Venture after the four (4) month holding period set forth in paragraph 1B(v)
herein above.

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 4 of 11
<PAGE>

         1C. Exercise Agreement. Upon any exercise of this Warrant, the Exercise
Agreement shall be substantially in the form set forth in Exhibit I hereto,
except that if the Common Stock is not to be issued in the name of the person in
whose name this Warrant is registered, the Exercise Agreement shall also state
the name of the person to whom the Common Stock is to be issued. Such Exercise
Agreement shall be dated the actual date of execution thereof.

         Section 2. Adjustment of Exercise Price and Number of Shares of Common
Stock. In order to prevent dilution of the rights granted under this Warrant,
the Exercise Price shall be subject to adjustment from time to time as provided
in this Section 2, and the number of shares of Common Stock obtainable upon
exercise of this Warrant shall be subject to adjustment from time to time as
provided in this Section 2.

         2A. Subdivision or Combination of Common Stock. If the Company at any
time subdivides (by any split, dividend, recapitalization or otherwise) its
outstanding Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision shall be proportionately reduced
and the number of shares of Common Stock obtainable upon exercise of this
Warrant shall be proportionately increased. If the Company at any time combines
(by reverse split or otherwise) its Common Stock into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of shares of Common Stock obtainable
upon exercise of this Warrant shall be proportionately decreased.

         2B. Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation, merger,
sale of all or substantially all of the Company's assets or other transaction,
in each case which is effected in such a way that the holders of Common Stock
are entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for the Common Stock is
referred to herein as an "Organic Change." Prior to the consummation of any
Organic Change, the Company shall make appropriate provision (in form and
substance satisfactory to the Registered Holders of the Warrants representing a
majority of the Common Stock obtainable upon exercise of all Warrants then
outstanding) to insure that each of the Registered Holders of the Warrants shall
thereafter have the right to acquire and receive, in lieu of or addition to (as
the case may be) the number of shares Common Stock immediately theretofore

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 5 of 11
<PAGE>

acquirable and receivable upon the exercise of such holder's Warrant, such
shares of stock, securities or assets as may be issued or payable with respect
to or in exchange for the number of shares of Common Stock immediately
theretofore acquirable and receivable upon exercise of such holder's Warrant had
such Organic Change not taken place. In any such case, the Company shall make
appropriate provision (in form and substance satisfactory to the Registered
Holders of the Warrants representing a majority of the shares of Common Stock
obtainable upon exercise of all Warrants then outstanding) with respect to such
holders' rights and interests to insure that the provisions of this Section 2
and Sections 3 and 4 hereof shall thereafter be applicable to the Warrants
(including, in the case of any such consolidation, merger or sale in which the
successor entity or purchasing entity is other than the Company, an immediate
adjustment of the Exercise Price to the value for the Common Stock reflected by
the terms of such consolidation, merger or sale, and a corresponding immediate
adjustment in the number of shares of Common Stock acquirable and receivable
upon exercise of the Warrants, if the value so reflected is less than the
Exercise Price in effect immediately prior to such consolidation, merger or
sale). The Company shall not effect any such consolidation, merger or sale,
unless prior to the consummation thereof, the successor entity (if other than
the Company) resulting from consolidation or merger or the entity purchasing
such assets assumes by written instrument (in form and substance satisfactory to
the Registered Holders of Warrants representing a majority of the shares of
Common Stock obtainable upon exercise of all of the Warrants then outstanding),
the obligation to deliver to each such holder such shares of stock, securities
or assets as, in accordance with the foregoing provisions, such holder may be
entitled to acquire.

         2C. Certain Events. If any event occurs of the type contemplated by the
provisions of this Section 2 but not expressly provided for by such provisions,
then the Company's management shall make an appropriate adjustment in the
Exercise Price and the number of shares of Common Stock obtainable upon exercise
of this Warrant so as to protect the rights of the holders of the Warrants.

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 6 of 11
<PAGE>

         2D. Notices.

                  (i) Immediately upon any adjustment of the Exercise Price, the
Company shall give written notice thereof to the Registered Holder, setting
forth in reasonable detail and certifying the calculation of such adjustment.

                  (ii) The Company shall give written notice to the Registered
Holder at least 10 days prior to the date on which the Company intends to (A)
make any pro rata subscription offer to holders of Common Stock or (B)
consummate any Organic Change, dissolution or liquidation.

         Section 3. Intention to Exercise. If the Company gives a notice
described in paragraph (ii) of Section 2D and the Registered Holder informs the
Company in writing within 10 days of receipt of such notice that it intends to
exercise the Warrant in whole or in part, the Company shall not make or
consummate the event described in such notice before the earlier of (i) the
completion of the exercise of the Warrant in whole or in part or (ii) 30 days
after the date the Registered Holder informs the Company of its intention to
exercise. If the event described in such notice is the liquidation of the
Company, whether or not the Registered Holder responds to such notice, the
Company shall pay to the Registered Holder the payment or payments (net of the
Exercise Price), if any, that would have been made to such Registered Holder on
the Common Stock had this Warrant been exercised in full immediately prior to
the liquidation.

         Section 4. No Voting Rights; Limitations of Liability. This Warrant
shall not entitle the holder hereof to any voting rights or other rights as a
holder of Common Stock in the Company. No provision hereof, in the absence of
affirmative action by the Registered Holder to purchase Common Stock, and no
enumeration herein of the rights or privileges of the Registered Holder shall
give rise to any liability of such holder for the Exercise Price of Common Stock
acquirable by exercise hereof or as a holder of a Common Stock in the Company.

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 7 of 11
<PAGE>

         Section 5. Warrant Exchangeable for Different Denominations. This
Warrant is exchangeable by the Registered Holder, upon the surrender hereof by
the Registered Holder at the principal office of the Company, for new Warrants
of like tenor representing in the aggregate the purchase rights hereunder, and
each of such new Warrants shall represent such portion of such rights as is
designated by the Registered Holder at the time of such surrender. The date the
Company initially issues this Warrant shall be deemed to be the "Date of
Issuance" hereof regardless of the number of times new certificates representing
the unexpired and unexercised rights formerly represented by this Warrant shall
be issued. These Warrants are non-transferable, except with the consent of the
TSX Venture. All Warrants representing portions of the rights hereunder are
referred to herein as the "Warrants."

         Section 6. Replacement. Upon receipt of evidence reasonably
satisfactory to the Company (an affidavit of the Registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction or mutilation of
any certificate evidencing this Warrant, and in the case of any such loss, theft
or destruction, upon receipt of indemnity reasonably satisfactory to the Company
(provided that if the holder is a financial institution or other institutional
investor its own agreement shall be satisfactory), or, in the case of any such
mutilation upon surrender of such certificate, the Company shall (at its
expense) execute and deliver in lieu of such certificate a new certificate of
like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

         Section 7. Notices. Except as otherwise expressly provided herein, all
notices referred to in this Warrant shall be in writing and shall be delivered
personally, sent by reputable overnight courier service (charges prepaid) or
sent by registered or certified mail, return receipt requested, postage prepaid
and shall be deemed to have been given when so delivered or deposited in the
mail (i) to the Company, at its principal executive offices and (ii) to the
Registered Holder of this Warrant, at such holder's address as it appears in the
records of the Company (unless otherwise indicated by any such holder).

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 8 of 11
<PAGE>

         Section 8. Amendment and Waiver. Except as otherwise provided herein,
the provisions of the Warrants may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
Registered Holders of Warrants representing a majority of the shares of Common
Stock obtainable upon exercise of the Warrants; provided that no such action may
change the Exercise Price of the Warrants or the number of shares or class of
shares obtainable upon exercise of each Warrant without the written consent of
all of the Registered Holders of Warrants.

         Section 9. Descriptive Headings; Governing Law. The descriptive
headings of the several Sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. The laws of the
Province of British Columbia shall govern all issues concerning the relative
rights of the Company and its members and interpretation of this Agreement. This
warrant and all rights pertaining hereto may not be transferred by the
registered holder without the consent of the TSX Venture Exchange.

         Section 10. Voting of Shares. So long as Registered Holder holds at
least ten percent (10%) of the Shares issued to Registered Holder under this
Agreement, Registered Holder Agrees to vote all of the Shares held by Registered
Holder at any annual or special meeting of shareholder in accordance with the
recommendations of the Company's chief executive officer.

         Section 11. Trading Limitation. Except as otherwise permitted herein,
the Registered Holder shall not, in the aggregate, dispose of more than
twenty-five thousand (25,000) of the Great Basin Shares during any one trading
day. In addition, so long as the Registered Holder continues to hold at least
twenty percent (20%) of the Great Basin Shares held by it upon consummation of
the transactions contemplated by this Agreement, the Registered Holder shall
provide the Company with reasonable advance notice of any such sale of the Great
Basin Shares. The Registered Holder shall not be obligated to complete any sale
of Great Basin shares even if it has provided the Company with advance written
notice of such sale, but Registered Holder shall notify Company of its
withdrawal of any Great Basin Shares from the market with respect to which
Registered Holder of the pendency of a sale under any underwritten public
offering by Company of company's common stock or any other Company equity

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 9 of 11
<PAGE>

security, in which event the Registered Holder shall not effect any sales of any
Great Basin Shares within Five (5) days prior to the commencement of or during
such underwritten public offering. The Registered Holder shall have the right to
sell any amount of Great Basin Shares in a private transaction, provided that
(i) any such sale shall not be reported or reportable on any exchange or other
public market where shares of Company are or may in future be traded, and (ii)
the Buyer in such private transaction agrees in writing that, for a period of
six (6) months from and after the date of such purchase and sale of Great Basin
Shares, such Buyer shall not sell any such Great Basin Shares. In addition, the
Registered Holder shall be permitted to pledge any number of Great Basin Shares
to an arm's length lender to secure payment of a bona fide loan or other
indebtedness, subject to the terms hereof.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and
attested by its duly authorized officers and to be dated the Date of Issuance
hereof.

GREAT BASIN GOLD LTD.

By:
    -----------------------------------
Name:
       --------------------------------
Title:
       --------------------------------

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 10 of 11
<PAGE>

                         EXHIBIT I TO WARRANT AGREEMENT

                               EXERCISE AGREEMENT

To:      GREAT BASIN GOLD LTD.
         Suite 1020 - 800 West Pender Street
         Vancouver, B.C. V6C 2V6
         Telephone: (604) 684-6365 - Fax: (604) 684-8092

Dated:
      -----------------------------------

The undersigned, pursuant to the provisions set forth in the attached Warrant
(Certificate No. W-___________), hereby agrees to subscribe for the purchase of
__________ shares of Common Stock covered by such Warrant and makes payment
herewith in full therefore at the price per share provided by such Warrant. The
shares shall be issued in the name of and delivered as described beneath the
signature of the authorized signatory of the warrant holder below. The shares
shall bear the legends referred to in the Warrant.

Signature
          -----------------------------------
Name
     ----------------------------------------
Address
        -------------------------------------

                       Exhibit H to the Earn-in Agreement
                               Great Basin Warrant
                                  Page 11 of 11Exhibit 10.20

                           LEASE AGREEMENT OF BLOCK B
                                  MINING AREAS

By and between, COMPANIA GENERAL DE MINERIA DE VENEZUELA C.A. "CVG MINERVEN", a
state owned corporation, domiciled in El Callao, Municipality El Callao, Bolivar
State, originally registered before the Commercial Registry of the Judicial
Circuit of the Federal District and Miranda State under No. 20, Book 31-A, dated
February 4, 1970 and thereafter registered before the Commercial Registry of the
Judicial Circuit of the Bolivar State, with principal offices in Puerto Ordaz,
having registered the last amendment to its Articles of Incorporation under No.
10, Book A No. 48, dated August 5, 1999 (hereinafter CVG Minerven), herein
represented by its President Engineer Franqui Jose Patines, a citizen of
Venezuela, of legal age, married, of this domicile, bearer of Identity Card N.
4.035.048, duly authorized by resolution No. RJD-227-2002 of the Board of
Directors of CVG MINERVEN, approved in the Board meeting No. JDE-001-2002 held
on August 19, 2002and Hecla Mining Company, a corporation incorporated and
existing under the laws of the State of Delaware, U.S.A. domiciled in the city
of Coeur D' Alene, Idaho, represented herein by Michael Callahan, a citizen of
the United States of America, bearer of Identity Card N(0) 82.264.221
(hereinafter the "Company"), duly authorized hereof by power of attorney granted
before the Notary Public of the State of Idaho, United States of America, on
August 7, 2002 and stamped with the corresponding apostille dated August 8, 2002
pursuant to the Hague Convention each of such parties being individually
referred to as the "Party" or jointly, the "Parties", have agreed to enter into
the following lease agreement of "Block B" (defined below), based on the
following:

                                    RECITALS

WHEREAS, CVG Minerven is the sole and exclusive holder of the concessions for
the exploitation of vein gold known as Minerven No. 1, Minerven No. 2, Minerven
No. 3, Minerven No. 4, Minerven No. 8 and Minerven No. 9, each comprising 500
hectares, located in the Jurisdiction of El Callao, State of Bolivar; which
Mining Titles were published in the Official Gazette of the Republic of
Venezuela No. 1562 Extraordinary dated January 9, 1973, and renewed by the
Ministry of Energy and Mines in favor of CVG Minerven for a term of 25 years
from the date of publication in the Official Gazette No. 5.217 Extraordinary of
March 4, 1998, copy of which is attached and is part of this Agreement under
Schedule "A".

WHEREAS, on May 19, 2000, CVG Minerven organized a process known as "Promotion
of Block B Mining Areas" for the lease of an area known as "Block B" (defined
below), which was awarded to Hecla Mining Company, a corporation duly
incorporated under the laws of the State of Delaware, United States of America,
by resolution of the Board of Directors of CVG Minerven No. RJD-207-2002 of
March 26, 2002, attached hereto as Schedule "B".

<PAGE>

WHEREAS, the Parties have agreed to all terms and conditions of this lease, and
therefore have agreed to enter into this lease agreement of Block B, which shall
be governed by the following provisions:

                                    ARTICLE I
                                 INTERPRETATION

1.1.- DEFINITIONS. In this Agreement, unless otherwise clearly stated, the
following terms and phrases shall have the following meanings.

"AGREEMENT": means this agreement for the lease of Block B including its
schedules and amendments made from time to time in writing by the Parties.

"BLOCK B",: means a mining area consisting of One Thousand Seven Hundred Eighty
Seven hectares (1,787 Has.), which constitutes the purpose of this Agreement and
is limited by the following boundaries expressed in U.T.M coordinates: Boom N 1
of Block B corresponds to vertex B 3 of the concession Minerven No. 1, UTM N
809,500 and E 624,000. Boom N 2 of Block B is located from N 1 southwards for a
distance of 2,5000 m, coinciding also with vertex B2 of the concession Minerven
No. 1, with coordinates UTM N 807,000 and E 624,000. Boom N 3 of Block B is
located from N 2 eastwards for a distance of 6,850 m on the southern boundary of
the Minerven No. 4 plot, known as boom M 4, with coordinates UTM N 807,000 and E
630,860. Boom N 4 of Block B is located from M 4 towards N 22(0) W, for a
distance of 2,454 m, on the boundary of plots Minerven N 03 and Minerven N 04,
known as boom M 4-1, with coordinates UTM N 809.256 and E 630,000. Boom 5 is
located from M 4-1 northwards for a distance of 744 m on the boundary of plots
Minerven N 08 and Minerven N 07, known as M8, with coordinates UTM N 810,000 and
E 630,000. Boom N 6 of Block B is located from M 8 westwards for a distance of
2,000 m, on the boundary of plots Minerven N 09 and Minerven N 08, known as boom
M8-1, with coordinates UTM N 810,000 and E 628,000. Boom N 7 of Block B is
located from M 8-1 southwards for a distance of 250 m, on the boundary of plots
Minerven N 09 and Minerven N 08, known as boom M 8-2, with coordinates UTM N
809,750 and E 628,000. Boom N 8 of Block B, is located from M 8-2 westwards for
a distance of 400 m, on concession Minerven N 09, known as M 9, with coordinates
UTM N 809,750 and E 627,600. Boom N 9 of Block B, is located from M 9 northwards

                                       2
<PAGE>

for a distance of 259 m, on concession Minerven N 09, known as M 9-1, with
coordinates UTM N 810,000 and E 627,600. Boom N 10 of Block B is located from M
9-1 westwards for a distance of 1,600 m on the western boundary of plot Minerven
N 09, known as boom M 9-2, with coordinates UTM N 810,000 and E 626,000. Boom N
11 of Block B is located from M 9-2 southwards for a distance of 500 m, on the
northern boundary of concessions Minerven 01, Minerven 02 and Minerven 09, known
as M 9-3, with coordinates UTM N 809,500 and E 626,000. Finally, form this point
westwards for a distance of 2,000 m, Boom N 1 of Block B is reached again,
coinciding with vertex B 3 of concession Minerven N 1, with coordinates UTM N
809,5000 and E 624,000, closing the perimeter which encloses Block B of CVG
Minerven, for a total surface of approximately ONE THOUSAND SEVEN HUNDRED
EIGHTY-SEVEN HECTARES (1,787 Has.) which corresponds to and includes the
Concessions, within its boundaries as follows:

         - Minerven Concession No. 1: total occupation according to the
         boundaries described in the Concession Titles.

         - Minerven Concession No. 2: total occupation according to the
         boundaries described in the Concession Titles, except as set forth in
         section 2.1

         - Minerven Concession No. 3: total occupation, according to the
         boundaries described in the Concession Titles.

         - Minerven Concession No. 4: partial occupation, described as follows:
         to locate the Booms that enclose the plot of land granted under
         concession Minerven N(0) 4, made up of one hundred (100) hectares, boom
         N(0) 3 is used as a reference point from the northeast vertex of
         concession Minerven N(0) 3, from such point southwards a distance of
         two hundred fifty-one meters (251 m) is measured to set boom N(0) 1 or
         the northeast vertex of the aforementioned plot; from such point
         southwards a distance of two thousand two hundred forty-nine meters
         (2,249m) is measured to set boom N(0) 2 or the southwest vertex; from
         such point eastwards a distance of eight hundred sixty meters (860 m)
         is measured to set boom N(0) 3 or the southeast vertex; form such point
         northeast 340(0), a distance of two thousand five hundred four meters
         (2,504) is measured to reach the point of reference, with which the
         triangular perimeter is closed.

         - Minerven Concession No. 8 and Minerven Concession N(0) 9: partial
         occupation, described as follows: to locate the booms that enclose the
         plot of land leased under the concessions Minerven N(0) 8 and Minerven
         N(0) 9, made up of one hundred ninety hectares (190 has.) boom N(0) 3
         is used as a reference point from the northeast vertex of concession
         Minerven N(0) 1, which will also be considered as boom N(0) 1 or the
         southwest vertex of this plot; from such point northwards a distance of

                                       3
<PAGE>

         five hundred meters (500 m) is measured to fix boom N(0) 2 or the
         northwest vertex; from such point eastwards, a distance of one thousand
         six hundred meters (1,600 m) is measured to fix boom N(0) 3 or the
         northwest vertex of the intermediate area neighboring the plot known as
         "SONI"; from such point southwards, two hundred fifty meters (250 m)
         are measured to fix boom N(0) 4 or the southwest vertex of the
         intermediate area neighboring plot "SONI"; from such point eastwards, a
         distance of four hundred meters (400 m) is measured to fix boom N(0) 5
         or the southeast vertex of the intermediate area neighboring plot
         "SONI", from such point northwards, a distance of two hundred fifty
         meters (250 m) are measured to fix boom N(0) 6 or the northeast vertex
         of the intermediate area neighboring plot "SONI", from such point
         eastwards, two thousand meters (2,000 m) are measured to set up boom
         N(0) 7 or the northeast vertex; from such point southwards five hundred
         meters (500 m) are measured to fix boom N(0) 8 or the southeast vertex;
         from such point westwards four thousand meters (4,000 m) are measured
         to reach the reference point with which the triangular perimeter is
         closed.

Reference maps of Block B are enclosed herein under Schedule "C" and are part of
this Agreement.

Reference maps of Block B are attached hereto as Schedule "C" and form part of
this Agreement.

"COMPANY": means Hecla Mining Company a corporation incorporated and existing
under the laws of the State of Delaware, U.S.A. domiciled in the city of Coeur
D' Alene, Idaho or its successor hereof assuming all rights and obligations
under this Agreement pursuant to section 20.1;

"CONCESSION TITLES": means the concession titles through which the MEM awarded
CVG Minerven the mining rights over the Concessions, which were published in the
Official Gazette No. 1.562 Extraordinary of January 9, 1973, and renewed by the
Ministry of Energy and Mines in favor of CVG Minerven for a term of 25 years
from its publication in the Official Gazette No. 5.217 Extraordinary of March 4,
1998 all registered before the Registry of the Roscio Municipality on the State
of Bolivar, with offices in Guasipati, on May 4, 2001 and filed as follows:
Minerven N(0) 1, under N(0) 13, First Protocol, Volume II, Second Quarter;
Minerven N(0) 2, under N(0) 14, First Protocol Volume II, Second Quarter,
Minerven N(0) 3, under N(0) 15, First Protocol, Volume II, Second Quarter;
Minerven N(0) 4, under N(0) 16, First Protocol, volume II, Second Quarter;
Minerven N(0) 8, under N(0) 20, First Protocol, Volume II, Second Quarter,
Minerven N(0) 9, under N(0) 21, First Protocol, Volume II, Second Quarter.

                                       4
<PAGE>

"CONCESSIONS": means the concessions for the exploitation of vein gold known as
Minerven No. 1, Minerven No. 2, Minerven No. 3, Minerven No. 4, Minerven No. 8
and Minerven No. 9, of 500 Has. each, located in the jurisdiction of the
Municipality of El Callao of the State of Bolivar and held by CVG Minerven;

"CVG MINERVEN": means "COMPANIA GENERAL DE MINERIA DE VENEZUELA C.A. "CVG
MINERVEN", a State owned company, domiciled in the Municipality of El Callao, of
the State of Bolivar , originally incorporated in the Mercantile Registry of the
Judicial Circuit of the Federal District and State of Miranda, under No. 20,
Volume 31-A, of February 4, 1970, and further incorporated in the Mercantile
Registry of the Judicial Circuit of the State of Bolivar , with branch in Puerto
Ordaz, the last modification to its by-laws being registered under Volume 19
A-pro N(0) 48, dated July 1, 2002. ;

"EFFECTIVE DATE": means the date of execution of this Agreement by the Parties
before a Notary Public;

"ENVIRONMENTAL PERMITS" means the "Permiso de Afectacion de Recursos para
Exploracion" (permit for the use of natural resources for exploration) of vein
gold on Block B granted by the Ministry of the Environment and Natural Resources
and any other environmental permit or authorization that from time to time such
Ministry or any other competent authority may request or that is required by law
to perform Exploration or Evaluation of the Deposit in Block B;

"EXPLORATION": means all activities aimed at determining the existence,
quantity, quality or commercial values of mineral deposits that may include gold
reserves, in any area within Block B, including the phases, terms and funding to
be invested in the evaluation of mineral resources discovered in such areas;

"EVALUATION OF THE DEPOSIT": means all activities for purposes of geologically
evaluating mineral resources presumably existing in some areas of Block B,
including but not limited to, the completion of additional perforations required
after the discovery of mineralizations of potential commercial value, general
plans to design and develop budgets including the phases, terms and funding to
be invested in the evaluation of such mineral resources;

"FORCE MAJEURE": means an event beyond the reasonable control of a Party
including, without limitation, acts of God; accidents; fires; floods; slides or
earthquakes; explosions; weather conditions materially preventing or impairing
work; interruption of, or inability to secure basic services, fuel or power; new
laws, decrees, regulations, orders or administrative acts issued by any public

                                       5
<PAGE>

authority legally competent; governmental restriction or control on imports,
exports or foreign exchange; delay in acting of any government or governmental
authority or agency, and any confiscation; war (declared or undeclared),
revolution, civil disturbance, sabotage, coup d' etats, terrorism or riot;
and any other event beyond the reasonable control of the Party affected which
may prevent or delay performance of the obligations of the Parties under this
Agreement;

"MATERIAL BREACH": means an act or omission by one Party which causes a material
adverse effect on: (i) the business, results of operations or financial
condition of the other Party; (ii) the ability of the other Party to perform its
obligations under this Agreement in a timely manner pursuant to the terms
herein; (iii) validity and enforceability of the Concession Titles, or; (iv) the
validity or enforceability of this Agreement or the rights or remedies of the
other Party;

"MEM":  means the Ministry of Energy and Mines.

"MONTHLY GOLD PRICE": means the monthly average price of gold which will be
calculated by dividing the sum of all the London Buillion Market Association
P.M. bid Gold Fix prices (which fixes the closing price for such metal for that
day per fine troy ounce of gold) reported for the monthly period in question by
the number of days for which such prices were reported;

"MINING LAW": means the Law of Mines, published in the Official Gazette No.5.382
of September 28, 1999, including its Regulations, Resolutions, Decrees and any
other applicable laws;

"PARTIES": in plural means both parties entering into this Agreement, that is,
CVG Minerven and the Company, and in singular (Party) each one of them;

"SCHEDULE", means any of the documents that pursuant to Section 1.2 are attached
to this Agreement. "SMALL MINERS AGREEMENTS", means the 18 agreements entered
into between CVG Minerven and certain third parties in some areas of Block B
under the administration and responsibility of CVG Minerven, according to the
list attached hereto as Schedule F;

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

         Schedule A-      Copy of the Concession Titles
         Schedule B-      Award of Block B to the Company
         Schedule C-      Maps of Block B
         Schedule D-      Authorization from the MEM to lease Block B

                                        6
<PAGE>

         Schedule E-      Power of attorney to the Company
         Schedule F-      Small Miners Agreements and map of their location
         Schedule G-      Judicial Inspection of the Minerven No. 2 Concession
         Schedule H-      Draft of Corporate Guarantee by Hecla Mining Company

1.3 SUBTITLES. The subtitles shown at the beginning of each section of this
Agreement are intended to identify the meaning of its contents and shall not be
considered as interpretations of this Agreement.

                                   ARTICLE II
                                      LEASE

2.1 LEASE. CVG Minerven, pursuant to authorization granted by the MEM, No.
VMM/336/02, dated August 28, 2002,, attached hereto as Schedule "D", pursuant to
Article 29 of the Mining Law, hereby leases to the Company and the Company
hereby accepts the lease of Block B in an exclusive manner for purposes of
performing Exploration, Evaluation of the Deposit and exploitation of vein gold,
with the same rights, obligations and duties that CVG Minerven has as holder of
the Concessions and according solely to the conditions set forth in this
Agreement and in the Mining Law and other applicable laws, except for the
concurrence, in percentage terms, of the joint liability in the performance of
the duties and obligations resulting from Minerven Concessions No. 4, 8 and 9,
according to the occupation and exploitation rights that each of the Parties
have on these Concessions, and according to the regime set forth below.

The superficial areas (grounds) occupied by the treatment or mineral processing
plant belonging to CVG Minerven, known as "El Peru Plant", including such plant,
located on the lands of the Minerven N(0) 2 concession are excluded from this
Agreement.

2.2 FIRST OPTION ADDITIONAL AREA. Because the original area of Block B initially
offered to investors as part of the Block B bidding process has suffered certain
modifications in its boundaries after the award, CVG Minerven agrees to grant
the Company the first option to lease an additional thirty (30) hectares located
within the following U.T.M. coordinates:

                                       7
<PAGE>

North: 807.002.295 and East: 627.657.574 from this point, three hundred forty
two and four hundred twenty six meters (342.426 m) true East to arrive to Boom
N(0) A-1, located at the following U.T.M. coordinates North: 807.000.000 and
East: 628.000.000; from this point four hundred meters (400.00m) true West to
arrive to boom B-2, located at the following U.T.M. coordinates North:
809.750.000 and East: 627.600.000; from this point seven hundred meters (700.00)
true North, to arrive to boom B-3, locates at the following U.T.M. coordinates
North: 810.500.000 and East: 627.600.000; from this point four hundred meters
(400,00 m) true East, to arrive to boom B-4, located at the following U.T.M.
coordinates North: 810.500.000 and East: 628.000.000; from this point seven
hundred and fifty meters (750,00 m) true south, to arrive to the starting point
boom B-1, with which the polygon is closed.

In this regard, in the event that such additional area becomes available from
any other lease holder, CVG Minerven and the Company shall enter into
negotiations for the lease of such area, in the understanding that CVG Minerven
cannot offer or negotiate such area with third parties (including small miners)
unless CVG Minerven and the Company have not reached an agreement within a term
not exceeding six (6) months after the area is offered to the Company. In such
case, the area will be considered to be free and CVG Minerven may offer it to
third parties.

2.3 EXTENSION OF OBLIGATIONS. The rights and obligations assumed by the Company
under this Agreement are limited only to the obligations as leaseholder of Block
B. Except for the obligations and responsibilities that the Company expressly
undertakes under this Agreement, it is understood that CVG Minerven will assume
any other liability and obligation before third parties resulting from its
capacity as holder of the Concessions, provided that such liability has not
resulted from any act or omission of the Company or had been a direct
consequence of the liabilities and obligations that the Company undertakes under
this Agreement.

2.4 POWER OF ATTORNEY. With the purpose of allowing the exercise of the rights
of Block B and to assure performance of the obligations undertaken by the
Company, in any event, with respect to any third party, individual or legal
entity and especially before the MEM, CVG Minerven hereby shall grant the
Company on the Effective Date a special power of attorney, ample and sufficient
as required by law, so that the Company or any authorized successor or assignee
may represent CVG Minerven before the MEM and/or any other public and/or private
entity, individual or legal, national, state or municipal entity, including the
Decentralized Administration and the Autonomous Institutions, State owned
Companies, Mining Protection by the National Guard and other entities related to
the mining activity or any successors of the same, for all purposes provided in
the Mining Law, the Organic Law of the Environment, the Environmental Criminal
Law as well as the Resolutions, rules, decrees, orders and other laws applicable
to this Agreement and/or to the activities related to the same. Therefore and in
exercise of such power of attorney, the Company may file writs, applications,

                                       8
<PAGE>

requests, authorizations, be summoned and receive notices; apply and pursue
expropriations or any other occupation procedures against holders of surface
areas, subject to prior approval by CVG Minerven, which cannot be unreasonably
denied or delayed; review and access any file, registry or archive, study them,
copy them completely or partially, or photocopy them, request certifications or
information verbally or in writing, and to perform any action relating to the
powers granted herein, and generally perform everything necessary to preserve
the rights of CVG Minerven as holder of the mining rights granted by the
Concessions which constitute Block B. The Company may also make the payments of
all respective taxes, fees and contributions, execute receipts, transactions,
and in general perform any action to comply with the special advantages
established in the Concession Titles. In exercise of such power of attorney it
shall specially preserve the enforceability of the Concessions and the
Concession Titles that include Block B and must perform all obligations and
duties related to it, explore and exploit Block B under the terms of the law and
without any limitation, since the above enumeration is a mere description and is
not limiting. Such power is granted in performance of the obligations assumed by
CVG Minerven in favor of the Company pursuant to this lease Agreement and
pursuant to Article 1705 of the Civil Code. The Company shall exercise this
power of attorney through its President or through a corporate or legal
representative, and such exercise shall be notified to CVG Minerven prior to its
performance. Likewise, the Company may substitute this power, completely or
partially only to such successor authorized pursuant to this Agreement.

In the event that, notwithstanding the power of attorney granted herein, the
Company requires the agreement and/or the individual consent of CVG Minerven for
any action before the MEM or any other entity as indicated above, CVG Minerven
agrees to execute all documents and perform all actions that the Company
requests, in the understanding that the costs and expenses resulting from any
such action shall be exclusively borne by the Company.

All the documents that the Company has received or filed before any of the
entities or persons mentioned above pursuant to this Agreement or to the power
of attorney granted under this provision, shall be communicated to CVG Minerven
within ten (10) working days from its receipt or delivery.

CVG Minerven hereby agrees to grant a separate irrevocable power of attorney in
favor of the Company in the same terms stated in this Article, and according to
the draft attached hereto as Schedule "E".

2.5 INSPECTION. CVG Minerven shall have the same powers granted by the law to
the MEM to visit and inspect Block B. Preferably, but without prejudice to its
power to inspect, CVG Minerven shall give sufficient prior notice to the Company
of its intent to practice any such visit or inspection so the Company may have
in site the competent personnel for its attention, if necessary, and provide the
necessary facilities for the correct performance of the inspection.

                                       9
<PAGE>

                                   ARTICLE III
                                      TERM

3.1 TERM. This Agreement shall be valid from the Effective Date and shall remain
to in effect throughout the same term or duration of the Concession Titles in
favor of CVG Minerven described in the beginning of this Agreement, that is,
until March 4, 2023.

3.2 EXTENSION OF TERM. In the event that due to any changes in the Venezuelan
mining legal regime, in the Mining Law, or due to any other reason, the
Concession Titles are renewed, extended or reissued in favor of CVG Minerven; or
the MEM grants any other mining rights on the same Concessions in favor of CVG
Minerven, this Agreement shall continue and remain in full force and effect
during the duration of such mining rights. If the granting of the new mining
rights to CVG Minerven at the expiration of the term of the Concessions requires
an amendment in the nature or other aspects of this Agreement, both Parties will
renegotiate this Agreement pursuant to the new legal regulations in order to
assure its continuity.

                                   ARTICLE IV
                        CONSIDERATION PAYABLE TO MINERVEN

4.1 CONSIDERATION. As consideration for the lease of Block B to the Company ,
the Company agrees to pay CVG Minerven the following amounts:

         4.1.1    RIGHT OF CONTRACT. An aggregate of Two Million Seven Hundred
                  and Fifty Thousand Dollars (US$2,750,000.oo), payable in
                  Dollars of the United States or in Bolivares at the applicable
                  purchase exchange rate fixed by the Venezuelan Central Bank
                  two (2) days prior to the date of payment, divided into three
                  (3) portions payable as follows:

                  (i)      Five Hundred Thousand Dollars (US$500,000.oo) payable
                           on the Effective Date;

                                       10
<PAGE>

                  (ii)     One Million Two Hundred Fifty Thousand Dollars
                           (US$1,250,000.oo) payable 180 days from the Effective
                           Date;

                  (iii)    One Million Dollars (US$1,000,000.oo) payable one (1)
                           year from the Effective Date.

         4.1.2    LEASE PAYMENTS. Five Thousand Dollars (US$5,000.oo) quarterly,
                  payable during the first five (5) working days at the end of
                  each quarter until the Company begins commercial production in
                  any of the Block B mining areas. When commercial production
                  begins, this payment will cease. This payment shall increase
                  every following year in fifty percent (50%) in comparison to
                  the previous year, to a maximum of five (5) years, from the
                  date on which the Environmental Permits are granted and until
                  commercial production begins. In the event that the Company
                  does not commence commercial production in five (5) years, the
                  Company shall continue paying a fixed lease amount for each
                  quarter equal to the last quarterly lease payment, that is,
                  the amount of One Hundred and One Thousand Two Hundred Fifty
                  Dollars (US$101,250.00) annually. Such payments shall be made
                  in Dollars of the United States or in Bolivares at the
                  applicable purchase exchange rate fixed by the Venezuelan
                  Central Bank two (2) days prior to the date of payment.

         4.1.3    ROYALTIES. A royalty calculated on the commercial value in
                  Caracas for refined gold extracted from the areas to be
                  exploited by the Company in Block B payable monthly, within
                  the first fifteen (15) days after the end of each month in
                  Dollars of the United States or in Bolivares, at the
                  applicable purchase exchange rate fixed by the Venezuelan
                  Central Bank two (2) days prior to the date of payment
                  according to the following scale:

                  (i)      Two percent (2%) if the Monthly Gold Price is below
                           $290 per Troy ounce of refined gold during the month
                           preceding payment;

                  (ii)     Two and a half percent (2.5%) if the Monthly Gold
                           Price is equal or greater than $290 and equal or
                           below $310 per Troy ounce of refined gold during the
                           month preceding payment;

                  (iii)    Three percent (3%) if the Monthly Gold Price is
                           greater than $310 per Troy ounce of refined gold
                           during the month preceding payment.

                                       11
<PAGE>

4.2. ELIMINATION OR SUBSTITUTION OF SPECIAL ADVANTAGE FOURTH. CVG Minerven will
use its best efforts in the most diligent manner through negotiations with the
MEM, to eliminate, reduce or substitute the Special Advantage number four of the
Concession Titles, which establishes an additional payment to the exploitation
tax of three percent (3%) of the commercial price of refined gold in Caracas for
the gold extracted from Block B. In case such special advantage is eliminated,
reduced or substituted; or its payment is exonerated, the Company shall not be
obliged to pay the additional three percent (3%). In the event that CVG Minerven
despite using its best efforts cannot achieve the elimination, reduction or
substitution of such special advantage, the aforesaid will not be considered a
Material Breach of this Agreement by CVG Minerven.

4.3 FORM OF PAYMENT. All payments under this section will be made to the name of
CVG Minerven by check or bank deposit to the account designated in writing by
CVG Minerven. For such purpose, before the Company makes any payment, CVG
Minerven shall provide information in writing to the Company regarding the
currency and form of payment.

4.4. DELAY IN PAYMENTS. If the Company fails to make payments on time on any of
the amounts established in this section, it shall pay a penalty interest at the
"London Interbank Offering Rate" (LIBOR) plus two percent (2%).

                                    ARTICLE V
                                  WORK PROGRAM

5.1 TERM FOR INITIAL EVALUATION. The Company shall have a term of two (2) years
starting from the granting of the Environmental Permits to carry out an
Evaluation of the Deposit in certain zones of Block B where some prior studies
have determined the presence of gold ore ("INITIAL EVALUATION TERM"). During the
Initial Evaluation Term the Company may also perform Exploration in any area of
Block B that the Company considers may have some potential for development and
exploitation.

5.2 PRE-FEASIBILITY STUDY. On the date of expiration of the Initial Evaluation
Term the Company must submit for review of CVG Minerven a prefeasibility study
("PRE-FEASIBILITY STUDY"). Such Pre-Feasibility Study shall be prepared by the
technical personnel of the Company for the purpose of determining the economic

                                       12
<PAGE>

and technical conditions set forth below, upon which the Initial Evaluation Term
may be extended, or to prepare the technical economic and environmental
feasibility study, which will serve as a basis to begin commercial production in
Block B. CVG Minerven shall have a term of thirty (30) calendar days following
receipt of the Pre-Feasibility Study to make any observations regarding the
conditions stated below, which cannot be unreasonably denied or delayed. In the
event that the Pre-Feasibility study is not approved, CVG Minerven must explain
in writing, the reasons and motives supporting such decision, in which case the
Parties will resolve any dispute according to the procedure set forth in section
18 hereof. While the Parties negotiate such dispute, this Agreement shall be
suspended until the dispute is finally resolved. However, if the 30-day term
elapses without CVG Minerven responding, such study shall be deemed approved.

If the Pre-Feasibility Study meets the follwing conditions:

         (a) The identification of a contiguous ore block containing a minimum
of 350,000 oz of gold at an average plant feed grade of greater than 14,00 grams
per ton of ore, and;

         (b) An internal rate of return on total investment of all sources
greater than 20%, then;

the Company must prepare within the following six (6) months a technical,
financial and environmental feasibility study ("Feasibility Study"). CVG
Minerven may extend such term for six (6) additional months, provided that the
Company requests such extension with an anticipation of thirty (30) calendar
days prior to the expiration of the 6-month term. Once the extension is filed,
CVG Minerven must respond within fifteen (15) days. The extension cannot be
unreasonably delayed or denied. The Company must submit to CVG Minerven a copy
of the Feasibility Study once it is completed. In such case, the Company shall
have a term of two (2) years starting from the granting of the construction
permits, for the design, development and construction of the necessary works to
initiate commercial production. The Company commits to making its best efforts
and to take all the necessary steps before the competent authorities to obtain
the required legal permits in order for such authorities to provide an answer in
the shortest possible time.

5.3 EXTENSIONS OF THE INITIAL EVALUATION TERM. In the event that upon expiration
of the Initial Evaluation Term the conditions set forth in section 5.2 are not
met concurrently, CVG Minerven agrees to concede to the Company annual

                                       13
<PAGE>

extensions of the Initial Evaluation Term up to a maximum of ten (10) annual
extensions, in order to allow the Company to continue performing the Evaluation
of the Deposit or Exploration in other areas of Block B in order to identify
mineral deposits which could comply with the conditions set forth in section 5.2
above. CVG Minerven must grant the annual extensions of the Initial Evaluation
Term within thirty (30) days after the request by the Company at the end of each
annual term, provided that:

         (a)      The Company has submitted a Pre-Feasibility Study during the
                  prior year in the terms provided by section 5.2;

         (b)      Such Pre-Feasibility Study demonstrates that neither one of
                  the conditions under section 5.2 have been met;

         (c)      The Company has invested in the past year and commits to
                  expend at least Two Hundred Thousand Dollars (US$200,000.00)
                  in Exploration and/or Evaluation of the Deposit in Block B for
                  the subsequent year;

Once the conditions established in section 5.2 are met, the Company must prepare
the Feasibility Study and shall begin commercial production in the terms
provided in section 5.2.

5.4 FINANCING FOR EXPLOITATION. In the event that after concluding the
Feasibility Study the Company has not obtained adequate financing for the
construction, development and production of gold, the Company shall not be
required to begin production in Block B within the term set forth in section
5.2, until adequate financing from a financial institution is arranged, provided
that the reasons for the lack of financing are not attributable to the Company.

In the event that the Company has obtained financing to begin commercial
production in Block B, but as a result of the terms offered for such financing
the internal rate of return established in the Feasibility Study is reduced to a
percentage of less than 20%, then the Company shall not be bound to start
commercial production in Block B until the Company has renegotiated the terms of
such financing or obtained other financing to the extent of the internal rate of
return set forth above.

The suspension of the obligation to begin commercial production due to lack of
financing (for reasons not attributable to the Company) or due to the high
financial costs shall amount to more than three (3) years from the filing of the
Feasibility Study. During the suspension term, the Company shall comply with the
payment of the lease established in section 4.1.2 until commercial production
begins.

                                       14
<PAGE>

5.5 REPORTING REQUIREMENTS. During the month of November of each year, the
Company shall submit to CVG Minerven an investment schedule and an estimated
budget corresponding to the following year. During the Initial Exploration Term
the Company must submit to CVG Minerven quarterly progress reports in connection
with the Exploration or Evaluation of the Deposit activities (as the case may
be) performed by the Company.

                                   ARTICLE VI
                                  ENVIRONMENTAL

6.1 ENVIRONMENTAL CONDITION OF BLOCK B. Due to the fact that (i) CVG Minerven
has entered into several Small Miners Agreements in Block B since the granting
of the Concessions to CVG Minerven; (ii) the Parties recognize that other
unauthorized small miners are currently working in Block B, and; (iii) to date
CVG Minerven lacks a detailed assessment of the environmental damage caused by
such small miners or other persons in Block B, CVG Minerven hereby authorizes
the Company to conduct at its sole cost any technical and environmental studies
in Block B in order to determine the past and present environmental conditions
prior to conducting any Exploration or exploitation works in any of the targets
selected for Exploration or exploitation by the Company. CVG Minerven shall
participate with the Company in all such technical and environmental studies and
such studies shall become part of this Agreement. Such studies will only serve
for the purposes of determining the environmental condition of the areas to be
explored by the Company, and it shall not be understood that the Company is
undertaking any obligation or liability in connection with any environmental
damage caused by third parties in Block B. To such effect, a Judicial Inspection
of the Minerven No. 2 concession is attached hereto as Schedule "G", in which
area the Company shall begin the Exploration and Evaluation of the Deposit.
Before commencing the Exploration the Company and CVG Minerven shall carry out a
base line environmental study as evidence of the condition of such concession,
which will also form part of this Agreement.

The Company will only be liable for any environmental damage caused by the
Company from its activities during the Exploration, Evaluation of the Deposit or
exploitation and in the areas selected by the Company once it begins activities.
In no event shall the Company be liable for any activities of any kind made in
the past by CVG Minerven, by persons working under Small Miners Agreements or by
third parties, which have caused environmental damage to Block B prior to the
Effective Date. CVG Minerven agrees to indemnify and save the Company harmless

                                       15
<PAGE>

from any debt, claim, obligation, payment, judicial or administrative actions of
any kind (including attorneys fees) against the Company as the result of any
past environmental damage caused by CVG Minerven, any person working under a
Small Miners Agreement or third parties in Block B and for any environmental
damage caused after the Effective Date by CVG Minerven or by persons working
under Small Miners Agreements.

6.2 ENVIRONMENTAL PERMITS. The Company shall carry on, with the cooperation of
CVG Minerven, if necessary, or acting with the authority granted by the power of
attorney set forth in section 2.4, all matters directed towards obtaining the
necessary Environmental Permits for the targets selected for Exploration,
Evaluation of the Deposit and exploitation by the Company within Block B at its
sole cost and expense, including those reasonably incurred by CVG Minerven in
such cooperation, provided that such expenses have been agreed prior to the
cooperation actions taken by CVG Minerven.

6.3 ENVIRONMENTAL BOND. Prior to beginning commercial production, the Company
shall give credit before CVG Minerven and the MEM, by means of a certified copy,
of the compliance of the environmental bond that guarantees the mitigation and
correction of any environmental damages that may result from the performance of
the mining activities that are the subject matter of this Agreement, pursuant to
the directions of the Ministry of the Environment and Natural Resources and the
MEM.

                                   ARTICLE VII
                               SPECIAL ADVANTAGES

7.1 COMPLIANCE WITH SPECIAL ADVANTAGES. Except as provided in the special
advantage seventh of the Concession Titles which obliges CVG Minerven to destine
1,000 Has. to small miners, the Company agrees to comply with the rest of the
special advantages, which may be required from the Effective Date, set forth in
the Concession Titles using the following mechanism:

         (a)      The Company shall comply with all special advantages
                  established in the Concession Titles that are leased in their
                  entirety, that is, Minerven 1, 2 and 3;

         (b)      CVG Minerven shall comply with all special advantages
                  established in the Concession Titles that are partially
                  leased, that is Minerven 4, 8 and 9. Once such advantages have

                                       16
<PAGE>

                  been complied with, CVG Minerven shall calculate the pro-rata
                  quota corresponding to the Company according to the area
                  leased, so that the Company shall reimburse CVG Minerven the
                  corresponding amounts.

It is understood that the Company shall comply with the payment of special
advantage fourth of the Concession Titles while it is in force and only for the
exploitation activities carried on by the Company.

7.2 LIABILITY. The Company shall not be liable for compliance with any of the
special advantages which CVG Minerven has failed to comply with in a timely
fashion as holder of the Concessions. In the event that after having reviewed
the compliance with the special advantages before the MEM, the Company concludes
that CVG Minerven has not complied with some of these obligations which became
due in the past, CVG Minerven will immediately proceed to give compliance
thereof. However, if CVG Minerven fails to give full or partial compliance (as
the case may be) of the applicable special advantages in a timely manner, then
the Company may directly comply with such special advantages on behalf of CVG
Minerven using the power of attorney granted pursuant to section 2.4. CVG
Minerven shall reimburse any costs and expenses reasonably and justifiable
incurred by the Company in connection hereof.

7.3 ADMINISTRATIVE OFFICE. The Company agrees to implement from the Effective
Date, the installation of an administrative office in the jurisdiction of El
Callao in the most convenient place for its operations, in addition to the
facilities that will have to be installed within Block B once commercial
production begins.

7.4 SOCIAL PROGRAMS. With the purpose of contributing to the social development
of the local community, the Company shall permanently and actively, in
coordination with CVG Minerven, become part of any social program during the
term of this Agreement, be it assistance to the elderly or to children, or
economic support to any local school, or in the form of assistance, which shall
begin in a term not exceeding five (5) years from the date commercial production
begins. In any event, such program shall be chosen by the Parties, pursuant to
the results of a specific social evaluation or diagnosis made to that effect.
The implementation of the selected program shall be carried out under the
direction of the Company in coordination with CVG Minerven, and cannot exceed
Twelve Thousand Dollars (US$12,000.oo) per calendar year.

                                       17
<PAGE>

7.5 VENEZUELAN PERSONNEL. During the Exploration and Evaluation of the Deposit
and exploitation phases, the Company shall give preference to the hiring of
qualified workers and employees of the El Callao and neighboring areas,
preferably Venezuelan and, it may consider the qualified personnel recommended
by CVG Minerven in a number which matches the needs of the project and that
meets the required profiles for each case. Additionally, for the implementation
of Exploration and Evaluation of the Deposit and environmental studies, the
Company shall give preference to the hiring of services from qualified
Venezuelan companies, provided that such companies prove to be qualified for the
work requested and that the offered terms are competitive with respect to
quality, opportunity and cost.

                                  ARTICLE XIII
                            DISCLOSURE OF INFORMATION

8.1 DISCLOSURE BY THE COMPANY. CVG Minerven authorizes the Company to disclose,
in the manner and times the Company deems convenient, information related to the
mining project to be developed in Block B.

                                   ARTICLE IX
                         WARRANTIES AND REPRESENTATIONS

9.1 REPRESENTATIONS AND WARRANTIES OF CVG MINERVEN. CVG Minerven represents and
warrants that, as of the date hereof:

                  (a) ORGANIZATION. CVG Minerven is a State owned corporation
         duly organized, validly existing and in good standing under the laws of
         Venezuela and is registered with all relevant registration bodies in
         Venezuela and has full corporate power and authority to carry out its
         business as presently conducted.

                  (b) CORPORATE AUTHORIZATIONS AND VALIDITY. The board of
         directors of CVG Minerven, at duly convened and validly held meetings,
         has duly taken all actions required by law, and by the articles of
         incorporation and by-laws (or equivalent thereof) of CVG Minerven, to
         approve and authorize the execution and delivery of this Agreement and
         the consummation of the transactions herein contemplated, and has taken
         no action to revoke, rescind or otherwise terminate such approval and

                                       18
<PAGE>

         authorization. This Agreement and the documents and instruments
         executed by CVG Minerven pursuant hereto have been duly and validly
         executed by CVG Minerven constitute valid and legally binding
         obligations of CVG Minerven and are enforceable in accordance with the
         terms thereof.

                  (c) CONSENTS AND APPROVALS. All authorizations, approvals and
         consents from governmental authorities with jurisdiction over CVG
         Minerven that are necessary for (i) the execution and delivery of this
         Agreement, (ii) the performance of CVG Minerven obligations hereunder
         and (iii) all mining activities and all activities incidental thereto
         contemplated by this Agreement, have been obtained and are in full
         force and effect.

                  (d) NO CONFLICTS. The execution and delivery of this Agreement
         by CVG Minerven and the performance by CVG Minerven of the transactions
         contemplated herein are not in conflict with any resolution in force
         adopted by meetings of CVG Minerven shareholders or its board of
         directors and , will not constitute a default under, be a breach of, or
         conflict with any provision of CVG Minerven articles of incorporation
         or by-laws or any provision of, or result in the automatic acceleration
         of, any obligation under, or give any other party thereto the right to
         accelerate any obligation under, any mortgage, lien, lease, agreement,
         judgment, decree or instrument to which CVG Minerven is a party or by
         which it is bound, or violate any provision of law or governmental
         regulation or any court or regulating order, judgment or decree.

                  (e) LITIGATION. There is no litigation of any kind or nature,
         nor any judicial or administrative proceeding or investigation pending
         or threatened against CVG Minerven that may affect or impede the
         purpose of this Agreement, nor are there any outstanding decrees,
         judgments, sentences, injunctions or orders by any court, governmental
         department or agency arising from any judicial or administrative action
         with respect to CVG Minerven that may affect or impede the purpose of
         this Agreement.

                  (f) NO MATERIAL MISSTATEMENT. All documents, reports or other
         written information pertaining to this Agreement that have been
         furnished to the Company by or on behalf of CVG Minerven are true and
         correct in all material respects.

                  (g) THE CONCESSIONS.

                                       19
<PAGE>

                           (g.1) The Concessions were duly and legally awarded
                           to CVG Minerven and any right, title and interest
                           thereto, is fully and unconditionally vested in CVG
                           Minerven. No objection or petition to rescind, avoid
                           or terminate or other complaint of any nature, public
                           or private, has been made, filed or threatened with
                           respect to the Concessions.

                           (g.2) The Concessions or its rights are not currently
                           optioned, and have not been previously sold,
                           transferred, alienated, leased or encumbered in any
                           other manner (except for the Small Miners
                           Agreements), and the right to use and enjoy ownership
                           and possession of CVG Minerven has not been
                           transferred or surrendered since the initial award
                           thereof to CVG Minerven,

                           (g.3) The Concession Titles are free and clear of any
                           liens, mortgages, and pledges and are free of any
                           judicial measures of any kind, such as attachments.
                           The Concession Titles have been duly registered at
                           the Roscio Municipality, State of Bolivar, Real
                           Estate Registry Office.

                           (g.4) All fees, taxes and other applicable
                           contributions under the Mining Law have been duly
                           paid, and all other obligations and requirements of
                           law or set forth in the Titles to the Concessions
                           (including compliance with the special advantages)
                           have been substantially complied with in every
                           respect and CVG Minerven is not in breach thereof.

                           (g.5) CVG Minerven has not been served with notice or
                           any other form of communication from the MEM stating
                           that it has failed to perform any duties,
                           obligations, charges or requirements, whether legal,
                           contractual or administrative, in connection with the
                           Concessions.

                           (g.6) CVG Minerven has delivered within the
                           respective legal term all documents, information,
                           reports and any and all data which is required by law
                           or under the Concession Titles.

                                       20
<PAGE>

                           (g.7) CVG Minerven has possession of and absolute and
                           unrestricted right to the Concessions and for such
                           purpose is the holder of the Concession Titles and
                           occupation environmental permits.,.

                           (g.8) CVG Minerven has granted 18 Small Miners
                           Agreements in the areas set forth in Schedule "F"
                           which are in full force and effect and CVG Minerven
                           has not granted, optioned, leased, offered or granted
                           any other mining right of any nature to third parties
                           in Block B.

9.2 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and
warrants that, as of the date hereof:

                  (a) ORGANIZATION. The Company is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware, United States of America.,.

                  (b) CORPORATE AUTHORIZATIONS AND VALIDITY. The board of
         directors of the Company, at duly convened and validly held meetings,
         has duly taken all actions required by law, and by the articles of
         incorporation and by-laws (or equivalent thereof) of the Company, to
         approve and authorize the execution and delivery of this Agreement and
         the consummation of the transactions herein contemplated, and has taken
         no action to revoke, rescind or otherwise terminate such approval and
         authorization. This Agreement and the documents and instruments
         executed by the Company pursuant hereto have been duly and validly
         executed by the Company, constitute valid and legally binding
         obligations of the Company and are enforceable in accordance with the
         terms thereof.

                  (c) CONSENTS AND APPROVALS. All authorizations, approvals and
         consents from governmental authorities with jurisdiction over the
         Company that are necessary for (i) the execution and delivery of this
         Agreement, (ii) the performance of the Company obligations hereunder
         and (iii) all mining activities and all activities incidental thereto
         contemplated by this Agreement, have been obtained and are in full
         force and effect.

                  (d) NO CONFLICTS. The execution and delivery of this Agreement
         by the Company and the performance by the Company of the transactions
         contemplated herein are not in conflict with any resolution in force
         adopted by meetings of the Company's shareholders or board of

                                       21
<PAGE>

         directors, will not constitute a default under, be a breach of, or
         conflict with any provision of the Company articles of incorporation or
         by-laws or any provision of, or result in the automatic acceleration
         of, any obligation under, or give any other party thereto the right to
         accelerate any obligation under, any mortgage, lien, lease, agreement,
         judgment, decree or instrument to which the Company is a party or by
         which it is bound, or violate any provision of law or governmental
         regulation or any court or regulating order, judgment or decree.

                  (e) LITIGATION. There is no litigation of any kind or nature,
         nor any judicial or administrative proceeding or investigation pending
         or threatened against the Company that may affect or impede the purpose
         of this Agreement, nor are there any outstanding decrees, judgments,
         sentences, injunctions or orders by any court, governmental department
         or agency arising from any judicial or administrative action with
         respect to the Company that may affect or impede the purpose of this
         Agreement.

                  (f) NO MATERIAL MISSTATEMENT. All documents, reports or other
         written information pertaining to this Agreement that have been
         furnished to the Company by or on behalf of CVG Minerven are true and
         correct in all material respects.

                                    ARTICLE X
                             ADDITIONAL OBLIGATIONS

10.1 MAINTENANCE OF CONCESSIONS IN FORCE. CVG Minerven agrees to perform all
activities necessary to keep the Concessions in full force and effect during the
term of this Agreement. CVG Minerven agrees not to address MEM in writing to
terminate or waive in advance the Concessions and agrees not to perform any
other act or omission that may threaten the validity of the Concessions. Each
Party shall give immediate notice to the other of any written or verbal
communication received by MEM or of any authority or person related to the
Concessions.

10.2 TAX OBLIGATIONS. Each of the Parties shall comply with all tax obligations
set forth in the Venezuelan laws resulting from the execution and performance of
this Agreement from the Effective Date. The Company shall be liable for the
payment of the exploitation tax for its own production in Block B according to
the provisions set forth in article 90 of the Mining Law, but shall not be
responsible for any exploitation taxes corresponding to the persons operating

                                       22
<PAGE>

under the Small Miners Agreements. The Company shall not be liable for the
payment of past surface taxes in any of the Concessions or Block B, due to the
fact that CVG Minerven has timely paid the Exploitation Taxes in Mina Colombia
which are compensated with any surface tax due in the Concession.

10.3 GOOD FAITH. The Parties will use their best efforts to facilitate the
correct development of this Agreement in the most convenient manner, avoiding
any act or activity that could cause frictions between the Parties or in any
other way be an obstacle for completion of their obligations under this
Agreement. In the case unforeseen circumstances should arise that would affect
the objectives of the Parties, the Parties agree to use their best efforts to
find the most convenient solution.

10.4 FURTHER ASSURANCES. Each of the Parties shall execute or cause to be
executed all such other documents and instruments and do or cause to be done all
such other acts and things that are necessary or desirable to give effect to the
provisions of this Agreement.

10.5 ACCESS TO BLOCK B. CVG Minerven guarantees the Company full access to Block
B in order to carry out the activities established in this Agreement. In case
the Company is prevented or impeded to access Block B as a result of third
parties occupying such area (apart from the persons working under Small Miners
Agreements), among other obligations CVG Minerven shall instruct its personnel
and representatives to fully collaborate with the personnel of the Company to
avoid any interference with the activities performed by the Company in Block B.
Regardless of the obligations assumed above, in order to arrive at the best
possible solution, the Company may participate along with CVG Minerven in any
negotiation or agreement with any person interfering with access to Block B.

CVG Minerven shall not be liable for any occupations or invasions by third
parties in Block B not authorized by CVG Minerven after the Effective Date.
Notwithstanding the above, CVG Minerven, as holder of the Concession Titles,
shall use its best efforts and diligence to evict any person occupying or
invading Block B unlawfully.

10.6 ELECTRICAL INFRASTRUCTURE. In the event that an electrical infrastructure
project is carried out by a State owned company in Block B, the Company agrees
not to collect any amounts as rights of way, indemnities or other payments.
However, CVG Minerven authorizes the Company to negotiate with such electrical
companies the areas where such project could be installed so that it does not
interfere with the activities performed by the Company. CVG Minerven shall use
its best efforts to assist the Company in such negotiations in order to preserve
the intent of this Agreement.

                                       23
<PAGE>

10.7 SURFACE HOLDERS. Any legal surface holders or legitimate possessionaires as
well as any legitimate and legal improvements built by third parties on Block B
are excluded from this Agreement. However, if the Company requires the use of
the surface or needs to demolish any improvements for the exploration or
exploitation works, CVG Minerven and the Company shall make their best efforts
to reach the most adequate solution, maintaining the stability of the mining
rights granted to the Company by this Agreement. In any event, it is expressly
agreed that CVG Minerven shall not be liable for the payment of any kind of
indemnities or of any amounts whatsoever under any circumstances for these
matters. In the event that the Company needs to commence legal proceedings for
the expropriation or occupation of the surface, the power of attorney granted
pursuant to section 2.4 authorizes the Company to represent CVG Minerven for
such purposes. However, the Company shall request authorization of CVG Minerven
if required to commence any of such legal proceedings, the authorization cannot
be unreasonably denied or withheld. In any event, CVG Minerven agrees to grant
any other document or provide the information needed for these purposes.

                                   ARTICLE XI
                                  SMALL MINERS

11.1 SMALL MINERS AGREEMENTS. The Company hereby recognizes and accepts the
terms of the Small Miners Agreements until the expiration of each of their terms
or until the Company begins Exploration, Evaluation of the Deposit, development
or exploitation in any of the areas selected for such purposes. In case that
such areas are located within the boundaries under the Small Miners Agreements,
CVG Minerven will act according to the mechanism set forth in section 11.2 . In
the event that any person working under the Small Miners Agreements fails to
comply with any of the terms of its respective agreement, especially if they
operate below 100 mts from surface; or if their activities exceed the boundaries
of their respective agreements, CVG must seek strict compliance of the terms of
the Small Miners Agreements or alternatively must initiate termination
procedures and the corresponding legal actions seeking termination thereof, in a
speedy manner and at CVG Minerven's sole cost and expense and liability in
order to leave the area free from holders of rights and persons.

                                       24
<PAGE>

11.2 ACCESS/NO INTERFERENCE. CVG Minerven in its capacity as administrator and
party to the Small Miners Agreements hereby guarantees the Company access of its
personnel and equipment to all areas under the Small Miners Agreements for
purposes of carrying out the activities under this Agreement, so that the
persons working under such agreements do not interfere or prevent the activities
of the Company. CVG Minerven guarantees and shall be liable to the Company in
the event that any leaseholder working under a Small Miners Agreement interferes
with or prevents any of the activities performed by the Company in any of the
targets selected for Exploration, Evaluation of the Deposit or exploitation.

For purposes of this section, if the Company intends to access any of the areas
under the Small Miners Agreements for any Exploration and Evaluation of the
Deposit, it will notify CVG Minerven in order to take any immediate actions to
allow the Company to work in such area without interference .In addition, before
the Company begins exploitation and as a condition thereof, CVG Minerven must
have suspended any mining works in the areas which the Feasibility Study
determines are necessary to operate the mine , and must have evicted any persons
located there at its own expense.

In the event that access to such areas is impossible and it prevents the Company
from performing the Exploration or Evaluation of the Deposit; or the eviction of
the persons working under the Small Miners Agreements is not possible on a
friendly basis, so that the Company is prevented from beginning exploitation,
then the Parties shall jointly undertake the corresponding negotiations or legal
actions for the eviction of such persons in the most effective manner to
guarantee access of the Company to such areas. Any cost, expense or any other
amount necessary for such purposes shall be borne by both Parties.

It is understood that before any definite solution is reached for the access of
the Company to such areas, all terms and payments under this Agreement shall be
suspended.

11.3 NEW AGREEMENTS. CVG Minerven agrees not to enter into any agreement of any
kind with any person in Block B unless the Company has previously approved in
writing the terms and location of such agreements and only for purposes of
relocating the persons working under the Small Miners Agreements within Block
B.. Any cost, expense, action or fee related with termination of; or relocation
of persons or parties working under Small Miners Agreements will be exclusively
borne by CVG Minerven.

11.4 TECHNICAL ASSISTANCE. From the Effective Date, the Company shall provide
technical assistance to the persons working under valid and enforceable Small
Miners Agreements to make such activities safer and more efficient . Such
technical assistance shall be rendered according to a plan which will be
mutually agreed between the Parties.

                                       25
<PAGE>

                                   ARTICLE XII
                                   INTERNSHIPS

12.1 INTERNSHIP PROGRAM. With the purpose of contributing to the development and
improvement of its technical and professional personnel, CVG Minerven and the
Company agree to implement the following program of industrial internships.

         (a)      During the term of this Agreement, CVG Minerven may send to
                  Block B a maximum of two (2) Venezuelan professionals in the
                  earth sciences area and/or engineering as interns to be
                  trained in the exploration, development, exploitation and
                  processing techniques for gold mineral under the exclusive
                  supervision and control of the Company.

         (b)      Each internship, which shall be PRO BONO, at no cost for the
                  Company, except as set forth herein and shall last three (3)
                  consecutive calendar weeks per year. CVG Minerven shall bear
                  at its expense all labor benefits, accidents, disabilities,
                  legal actions and other costs related to such industrial
                  internships, notwithstanding the above, the Company shall
                  provide or pay transportation for the interns to and from El
                  Callao and within the Block B area. It is expressly understood
                  that there will not be a labor relationship between the
                  interns and the Company. The interns shall comply with the
                  rules set forth by the Company, subject to termination of such
                  internship. CVG Minerven and the Company may agree to modify
                  the scope, number of interns and duration of the industrial
                  internships.

12.2 TECHNICAL ASSISTANCE. As an alternative option, the Company may provide
technical assistance to Minerven by sending some of its personnel to CVG
Minerven, in case CVG Minerven requests such assistance. The technical
assistance program of the Company to be implemented in CVG Minerven shall be
governed by the procedures set forth in section 12.1; consequently, the Company
shall fulfill its obligations, in the same conditions in which CVG Minerven
fulfills such obligations when its interns are sent to Block B.

                                       26
<PAGE>

                                  ARTICLE XIII
                  GUARANTEES FOR THE FINANCING OF EXPLOITATION

13.1 ASSIGNMENT IN GUARANTEE. For the financing of the project to be developed
in Block B, CVG Minerven authorizes the Company to assign in guarantee the
Agreement, its results and any other accessory rights in favor of the
participant financial entity or entities granting the necessary loans for the
development of the exploitation project of Block B. If required, CVG Minerven
shall provide its consent in writing of any security interest that the Company
may be required to grant by the lenders in connection with the financing of the
project, as long as such security interests are in agreement with the terms set
forth herein and do not include the Concession Titles.

                                   ARTICLE XIV
                              AMENDMENT OF BY-LAWS

14.1 NOTICE. In the event of amendments to the by-laws of the Company, for sale
of its social assets, merger with another company, assignment of its shares or
any other reform provided in the Venezuelan Commercial Code, which modifies its
original share representation and results in other individuals or legal entities
appearing as holders of its capital; the Company shall inform CVG Minerven prior
to the performance of any such actions, so that CVG Minerven may be informed of
the new legal representation or by-laws of the Company.

14.2 BREACH. The breach of the obligation set forth in section 14.1 by the
Company may give rise to a sanction consisting in the payment of One Hundred
Thousand US Dollars ($US100,000.00), or its Bolivar equivalent according to
Article 117 of the Law of the Central Bank of Venezuela, which shall be paid to
CVG Minerven as soon as CVG Minerven knows of such breach and gives notice in
the manner set forth herein.

                                   ARTICLE XV
                                   TERMINATION

15.1 BY MUTUAL AGREEMENT. This Agreement may be terminated by the Company and
CVG Minerven through mutual agreement in writing.

15.2     UNILATERAL TERMINATION.

                                       27
<PAGE>

         (a)      If during the term of this Agreement the Company determines in
                  any moment that the conditions set forth in section 5.2 are
                  not met, the Company may terminate this Agreement, in which
                  case the advanced termination shall not give rise to any
                  indemnification whatsoever for any of the Parties. In such
                  event, this Agreement shall be terminated and CVG Minerven
                  shall be free to negotiate Block B with any other interested
                  party. The Company shall leave Block B free from any
                  environmental liabilities caused by the Company. All
                  geological studies, technical studies of exploration, plans,
                  diagrams, data sheets, geological cores, samples and any other
                  elements resulting from the programs shall become the property
                  of CVG Minerven without any indemnization whatsoever.

         (b)      If the Company interrupts the exploitation works that are the
                  subject matter of this Agreement for a term exceeding nine (9)
                  months without a justified reason, as determined by CVG
                  Minerven or a Force Majeure Event (in which case section 16.1
                  will be applicable), upon expiration of such term, CVG
                  Minerven will grant the Company an additional term of ten (10)
                  days allowing the Company to file an activity reinitiation
                  plan, which shall be implemented in a term not exceeding sixty
                  (60) days from the expiration of the additional term of ten
                  (10) days. If the reinitiation of the exploitation is not
                  implemented upon expiration of the sixty-day (60) term, CVG
                  Minerven may terminate this Agreement.

15.3 TERMINATION BY BREACH. In the event of a Material Breach of this Agreement
by a Party (the "Defaulting Party"), and if the dispute resolution mechanism
stated in section 18 has been followed without success, the other Party (the
"Non-Defaulting Party") will have the right to give written notice (the "Default
Notice") to the Defaulting Party specifying the breach in reasonable detail and
requiring the Defaulting Party to remedy the breach within a reasonable period
of time and in any event no later than ninety (90) days following receipt of the
Default Notice. The Defaulting Party will make diligent and commercially
reasonable efforts to rectify the breach to the reasonable satisfaction of the
Non-Defaulting Party at the earliest practicable time and in any event no later
than ninety (90) days following receipt of the Default Notice. If the Defaulting
Party fails to remedy the breach specified in the Default Notice to the
reasonable satisfaction of the Non-Defaulting Party within ninety (90) days
after the date of receipt of the Default Notice, then the Non-Defaulting Party
will have the right to terminate this Agreement and the matter shall be subject
to the arbitration procedure set forth in section 19.1. If to the reasonable
satisfaction of the Non-Defaulting Party the Defaulting Party has remedied the
breach specified in the Default Notice within the ninety (90) day notice period,
or is diligently pursuing the remedy of such breach, the notice of termination
will be void.

                                       28
<PAGE>

15.4 CONTINUED PERFORMANCE. In the event that any of the Parties initiates the
termination procedure due to an alleged Material Breach, both CVG Minerven and
the Company will continue the performance of their respective obligations while
any dispute or disagreement is being resolved, including during any period of
arbitration unless and until this Agreement is terminated or expires in
accordance with its terms.

                                   ARTICLE XVI
                                  FORCE MAJEURE

16.1 FORCE MAJEURE. Neither Party to this Agreement shall be liable for any
delay, interruption or failure in the performance of its obligations hereunder
if caused by an event of Force Majeure. If an event of Force Majeure occurs or
is likely to occur, the Party directly affected shall promptly notify the other,
giving particulars of the event. The Party so affected shall use best efforts to
eliminate, mitigate or remedy the event. If a Force Majeure event occurs and its
effects continue for longer than one hundred eighty (180) days notwithstanding
the efforts of the Party affected to eliminate or remedy the Force Majeure
event, and those effects frustrate the business intention of this Agreement, the
Parties may, upon request, enter into good faith negotiations to amend this
Agreement or to re-structure their relationship as may be appropriate.

                                  ARTICLE XVII
                                     NOTICES

17.1 NOTICES. Any notice, declaration, demand, request or other communications
to be made according to this Agreement shall be made in writing and delivered by
hand, facsimile or air courier return receipt requested at or to the following
addresses:

CVG Minerven:
-------------
Attention: President
Address: Zona Industrial Caratal, Edificio Administrativo de CVG Minerven
El Callao
Municipio El Callao
Estado Bolivar

                                       29
<PAGE>

Telephone:(0288) 762-0216/762-0220
Fax: (0288) 762-0215

WITH COPIES TO:

Ing. Rafael Unzueta
Zona Industrial Caratal, Edificio Administrativo de CVG Minerven
El Callao
Municipio El Callao
Estado Bolivar

Telephone:(0288) 762-0216/762-0220
Fax: (0288) 762-0215

The Company:
------------
General Counsel
Hecla Mining Company
6500 Mineral Drive, Suite 200
Coeur d' Alene, Idaho 83815, U.S.A.
Telephone : 208-769-4100
Fax:208-769-7612

WITH COPIES TO:

Neher von Siegmund Rengifo & Diquez
Centro Gerencial Mohedano, Piso 8, Oficina 8-D,
Avenida Mohedano, Urbanizacion La Castellana
Municipio Chacao, Estado Miranda
Caracas, Venezuela
Telf: (0212) 267-0507
---------------------
Fax (0212) 263-2807.
Att: Luis Rengifo Rohl.

Any of the Parties may appoint another officer as addressee of the notices by
written notice, as well as a new address for the delivery of notices,
declarations, demands, requests or other communications.

                                       30
<PAGE>

                                  ARTICLE XVIII
                           DISPUTE RESOLUTION PROCESS

18.1 DISPUTE RESOLUTION PROCESS. If a dispute touching upon the validity,
construction, meaning, performance or effect of this Agreement, the rights and
liabilities of the parties, any matter to be agreed upon after the date of this
Agreement arises out of or in connection with this Agreement, including a
dispute as to what constitutes a Material Breach of this Agreement or any
related agreement or in respect of any defined legal relationship associated
with or derived from this Agreement, the parties will follow the step-by-step
correction and resolution procedure set out below (the "DISPUTE RESOLUTION
PROCESS"):

         STEP 1   The party initiating the process (the "COMPLAINING PARTY")
                  will advise the other party (the "OTHER PARTY") in writing of
                  the alleged breach or other basis for dispute.

         STEP 2   If the dispute involves an alleged breach of this Agreement,
                  the Other Party will investigate the allegation and provide a
                  written report to the Complaining Party within five (5)
                  working days of receiving the notice given under Step 1 to the
                  effect that

                  (a) the investigation reveals that an alleged breach was not
                  committed,

                  (b) the breach or matter in dispute has been resolved, or

                  (c) the breach remains unresolved.

         STEP 3   If the Complaining Party wishes to pursue the alleged breach
                  or dispute, then the Complaining Party will immediately notify
                  the Other Party in writing in order to hold a meeting between
                  the Presidents of each of the Parties within the next five (5)
                  working days from the date of the reception of the notice, so
                  that both Parties can resolve the alleged breach. Minutes will
                  be drafted after each meeting and signed by all persons
                  attending the meeting.

                                       31
<PAGE>

         STEP 4   If the Parties referred to in Step 3 cannot resolve the
                  dispute through negotiation within fifteen (15) working days,
                  the dispute shall be referred to the termination procedure set
                  forth in section 15.3.

                                   ARTICLE XIX
                            APPLICABLE FORUM AND LAW

19.1 ARBITRATION. Any dispute, claim, controversy and/or differences that may
arise from this Agreement shall be resolved in a final manner by means of an
institutional arbitration, according to the proceedings, terms and other rules
provided for arbitration in the General Regulation of the Arbitration Center of
the Caracas Chamber of Commerce that may be applicable as of the date of the
controversy. The arbitration shall be made by three (3) arbitrators of law who
appear on the list of arbitrators of the Arbitration Center of the Caracas
Chamber of Commerce ("CACCC"), two (2) of which shall be appointed by each of
the Parties separately. The third arbitrator, who shall assume the presidency of
the Arbitration panel, may be appointed by mutual agreement of the parties or in
the absence thereof, by the Executive Committee of the CACCC within the term and
manner provided in the General Rules of the CACCC.

The arbitrators shall act as arbitrators in law and shall always consider the
provisions hereof, the rules, uses and commercial customs of the Republic of
Venezuela. The award shall be final and except for the nullity motion provided
in Article 43 of the Commercial Arbitration Law, no additional recourse shall be
admitted against it. The arbitration shall take place in the Arbitration Center
of the CACCC and the language to be used in the arbitration acts shall be
Spanish.

Pursuant to this arbitration agreement, the Parties waive their right to appear
before a court; therefore, the submission to arbitration herein provided shall
be interpreted as exclusive and therefore, excludes ordinary jurisdiction. The
parties also waive their right to argue their differences before any foreign
court or before arbitrators different from those provided for in this section.

19.2 APPLICABLE LAW. The Parties hereto expressly declare that this Agreement
and its Schedules shall be governed by the laws of the Bolivarian Republic of
Venezuela.

                                       32
<PAGE>

19.3 SPECIAL DOMICILE. The Parties hereby choose the city of Caracas as the
only, exclusive and special domicile for all effects of this Agreement.

                                   ARTICLE XX
                                  MISCELLANEOUS

20.1 INUREMENT/ASSIGMENT. The rights and obligations of the Parties hereto shall
be binding and inure to the benefit of and be binding upon its respective
successors and assigns universally. No Party to this Agreement may assign
directly or indirectly its rights and/or assign its obligations resulting from
this Agreement without the previous written authorization of the other Party,
except that (i) such assignment is made under section 13.1, or ; (ii) such
assignment is made to any subsidiary of the Company, in which case the
assignment must be notified to CVG Minerven within fifteen (15) working days
following execution of the assignment. In this case, the Company shall deliver
to CVG Minerven the corporate guarantee attached to this Agreement under
Schedule "H" to guarantee the obligations such subsidiary undertakes pursuant to
this Agreement. In any case where CVG Minerven must authorize an assignment
under this Agreement such authorization cannot be unreasonably denied. Any Party
authorizing the assignment must respond within twenty (20) days following
request. If at expiration of such term the Party has not responded, the
authorization shall be deemed granted. Any assignment made in violation hereof
shall be null and shall have no legal effects whatsoever. In any event, the
authorization of any act of disposition of the Agreement shall be made in
accordance with Article 29 of the Mining Law as may be applicable.

20.2 ECONOMIC EQUILIBRIUM. In case that during the term of this Agreement any
external economic factor or event arises which could prevent or hinder the
development of this Agreement by the Company, the Company shall promptly notify
CVG Minerven attaching a detailed description of such alleged factors. If
pursuant to the Parties criteria such factor or event causes a negative economic
imbalance, the Parties agree to restructure their relations in order to
reestablish the economic equilibrium of this Agreement.

20.3 NON WAIVER. If any of the Parties stops insisting on one or several
instances in the strict performance of any of the provisions hereof or does not
make use of any of its rights herein set forth, it shall not be deemed to be a
waiver of any such provisions or a waiver to the future exercise of any such

                                       33
<PAGE>

rights, which shall remain in full force and effect. If any of the provisions
herein set forth is declared null, unenforceable or in conflict with the Law,
the remaining provisions of this agreement shall not be affected and will remain
valid and enforceable in the extent permitted by the law, provided however, that
in the event that such nullity or unenforceability substantially harms the
rights and interests of any of the Parties, they shall renegotiate this
Agreement in good faith to try to preserve its stability.

20.4 COMPLIANCE WITH LAWS. Unless otherwise stated in this Agreement, it is
expressly understood and it is so accepted by the Company that the Exploration,
Evaluation of the Deposit and exploitation works referred to in this section
shall be performed in compliance to the applicable laws.

20.5 DELIVERY OF AGREEMENT. CVG Minerven agrees that upon execution of this
Agreement before a Notary Public, it shall deliver a copy of the same to the
MEM, for the corresponding legal and administrative purposes.

20.6 PROPER PERFORMANCE. CVG Minerven agrees to take all the necessary steps
before the MEM, without incurring in any costs, to allow the proper performance
of the Exploration and eventual exploitation of Block B in the same conditions
set forth in the Concession Titles and under this Agreement.

20.7 LANGUAGE. All negotiations and writings related to this Agreement shall be
made and expressed in Spanish, which is the official language in Venezuela,
pursuant to the Constitution.

Two (2) counterparts to the same effect are made in the city of Puerto Ordaz on
September 5, 2002.

                                       34

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