Document:

EXHIBIT 10.1

                              ASSIGNMENT AGREEMENT

This Agreement is made as of February 14, 2001.

BETWEEN:

                  LIONS GATE INVESTMENT LIMITED,
                  -----------------------------
                  of Suite 2901, 1201 Marinaside Crescent,
                  Vancouver, British Columbia, V6Z 2V2

                  (the "Assignee")

AND:

                  N.D.G. SMITH,
                  ------------
                  of 2271, Flanders Avenue, S.W.,
                  Calgary, Alberta, T2T 5K9

                  (the "Assignor")

WHEREAS:

A. The Assignor owns a 2% overriding royalty (the "Royalty") over certain
petroleum producing lands in the Province of Alberta, Canada known as Edgerton
"27", TWP 42, RGE 3, W4M, Section 27 granted by Harbour Petroleum Company
Limited;

B. The Assignor wishes to assign the Royalty to the Assignee in consideration
for common shares of the Assignee;

IN CONSIDERATION OF THE sum of Ten Dollars ($10.00) paid by each party to the
other (the receipt and sufficiency of which is hereby acknowledged) the parties
hereto agree as follows:

1.   The Assignor hereby sells, assigns and transfers to the Assignee all of his
     right, title and interest in and to the Royalty and the royalty agreement
     as it pertains to the Royalty dated August 4, 1981 between Harbour
     Petroleum Company Limited and N.D.G. Smith (the "Royalty Agreement").

2.   In consideration for assigning the Royalty to the Assignee, the Assignee
     agrees to issue the Assignor 100,000 common shares at a deemed value of
     $0.50 per share.

3.   Commencing March 1, 2001, all royalty payments due under the Royalty
     Agreement shall accrue to the Assignee and shall be deposited to the credit
     of the Assignee.

4.   The summary of royalty payments received by the Assignor for 1999 and 2000
     attached as Schedule "A" to this agreement are true and accurate in all
     respects and representative of historical royalties paid under the Royalty
     Agreement.

5.   The Royalty Agreement attached as Schedule "B" to this agreement is a true
     copy of the Royalty Agreement under which the Assignor acquired the
     Royalty.

6.   This Agreement shall be governed by and construed in accordance with the
     laws of Alberta.

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

8.   This Agreement may be executed in several counterparts each of which when
     executed by any party hereto will be deemed to be an original and such
     counterparts will together constitute one and the same instrument.

<PAGE>

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto the
day and year first above written.

LIONS GATE INVESTMENT LIMITED

Per:     /s/ Keith Ebert
         --------------------------------------------
         Keith Ebert, President and Director

SIGNED, SEALED AND DELIVERED                         )
by N. DESMOND SMITH in the                           )
presence of:                                         )
                                                     )
                                                     )
--------------------------------                     )
Witness                                              )
                                                     )
--------------------------------                     )      /s/ N. Desmond Smith
Address                                              )      N. DESMOND SMITH
                                                     )
--------------------------------                     )
                                                     )
                                                     )
--------------------------------                     )
Occupation                                           )

                                       2

<PAGE>

                                  SCHEDULE "A"
                 TO ASSIGNMENT AGREEMENT DATED FEBRUARY 14, 2001

    ---------------------------------------------------------------------
                                      1999                  2000
        PRODUCTION MONTH             AMOUNT                AMOUNT

    ---------------------------------------------------------------------
        January                      $398.27               $635.59
    ---------------------------------------------------------------------
        February                     $310.86               $939.00
    ---------------------------------------------------------------------
        March                        $430.13               $979.61
    ---------------------------------------------------------------------
        April                        $572.05               $969.94
    ---------------------------------------------------------------------
        May                          $775.56             $1,088.83
    ---------------------------------------------------------------------
        June                         $617.09               $974.81
    ---------------------------------------------------------------------
        July                         $744.62               $862.73
    ---------------------------------------------------------------------
        August                       $776.34               $822.54
    ---------------------------------------------------------------------
        September                    $828.60               $827.40
    ---------------------------------------------------------------------
        October                      $887.40               $670.06
    ---------------------------------------------------------------------
        November                     $789.13            Not yet paid
    ---------------------------------------------------------------------
        December                     $760.30            Not yet paid
    ---------------------------------------------------------------------
    ---------------------------------------------------------------------
        Total                      $7,890.35             $8,770.51
    ---------------------------------------------------------------------
        Avg/Mo.                      $657.53               $877.05
    ---------------------------------------------------------------------EXHIBIT 10.1

                                OPTION AGREEMENT

THIS AGREEMENT made as of the 21st day of October, 2000

BETWEEN:

                           GERRY DIAKOW,
                           ------------
                           of 1537 - 54th Street, Tsawwassen, British Columbia

                           (the "Optionor")
                                                               OF THE FIRST PART

AND:

                           CASCADIA CAPITAL CORPORATION,
                           ----------------------------
                           of Suite 880, 50 West Liberty Street, Reno,
                           Nevada, 89501 USA

                           (the "Optionee")
                                                              OF THE SECOND PART

WHEREAS:

A.       The  Optionor  is the owner of certain  mineral  claims  located in the
Liard Mining Division of British Columbia (the "Property").

B.       The Optionor has agreed to grant an exclusive option to the Optionee to
acquire an interest in and to the Property, subject to the Royalty, on the terms
and conditions hereinafter set forth;

NOW THEREFORE  THIS  AGREEMENT  WITNESSES  that in  consideration  of the sum of
$20.00 now paid by the Optionee to the Optionor  (the receipt of which is hereby
acknowledged), the parties agree as follows:

DEFINITIONS

1.       For the purposes of this  Agreement,  the  following  words and phrases
shall have the following meanings, namely:

         (a)      Commencement of Commercial Production" means:

                  (i)      if a Mill is located on the Property, the last day of
                           a period of 40  consecutive  days in  which,  for not
                           less than 30 days,  the Mill  processed  ore from the
                           Property  at 60  percent  of its rated  concentrating
                           capacity; or

                  (ii)     if no Mill is located on the  Property,  the last day
                           of a period of 30  consecutive  days during which ore
                           has been  shipped  from the  Property on a reasonably
                           regular basis for the purpose of earning revenues,

                  but no  period of time  during  which  ore or  concentrate  is
                  shipped from the Property for testing purposes,  and no period
                  of time during which  milling  operations  are  undertaken  as
                  initial  tune-up,  shall be taken into account in  determining
                  the date of Commencement of Commercial Production;

         (b)      "Exploration Expenditures" means the sum of:

<PAGE>

                  (i)      all  costs  of  acquisition  and  maintenance  of the
                           Property,    all    exploration    and    development
                           expenditures  and all  other  costs and  expenses  of
                           whatsoever  kind  or  nature  including  those  of  a
                           capital   nature,   incurred  or  chargeable  by  the
                           Optionee   with  respect  to  the   exploration   and
                           development  of the  Property  and the placing of the
                           Property into commercial production, and

                  (ii)     as compensation for general  overhead  expenses which
                           the  Optionee  will incur,  an amount equal to 10% of
                           all amounts included in subparagraph (i) in each year
                           except   costs  of  fixed   assets   and   costs  and
                           expenditures  paid by the Optionee under any contract
                           involving payments by it in excess of $100,000 in the
                           year,  and  5%  of  all  other  amounts  included  in
                           subparagraph (i) in each year;

         (c)      "Option" means the option to acquire a 100% undivided interest
                  in and to the Property as provided in this Agreement;

         (d)      "Option  Period"  means  the  period  during  the term of this
                  Agreement  from the date hereof to and  including  the date of
                  exercise or termination of the Option;

         (e)      "Property"  means the mineral claims described in Schedule "A"
                  and all mining leases and other mining interests  derived from
                  any such claims.  Any reference to any mineral claim comprised
                  in the Property includes any mineral leases or other interests
                  into which such mineral claim may have been converted;

         (f)      "Property  Rights"  means all  licenses,  permits,  easements,
                  rights-of-way,  certificates  and other approvals  obtained by
                  either of the parties  either before or after the date of this
                  Agreement and necessary for the exploration and development of
                  the Property,  or for the purpose of placing the Property into
                  production or continuing production;

         (g)      "Royalty"  means  the  amount  of  royalty  from  time to time
                  payable to the Optionor  hereunder  and as defined in Schedule
                  "B" attached hereto.

REPRESENTATIONS AND WARRANTIES OF THE OPTIONOR

2.       (a)      The Optionor represents and warrants to the Optionee that:

                  (i)      he is legally  entitled to hold the  Property and the
                           Property Rights and will remain so entitled until all
                           interest of the Optionor in the Property  (other than
                           the Royalty, if any) has been duly transferred to the
                           Optionee as contemplated hereby;

                  (ii)     he is  and  at  the  time  of  each  transfer  to the
                           Optionee of mineral claims  comprised in the Property
                           he will be, the recorded holder and beneficial  owner
                           of all of the mineral claims  comprising the Property
                           free and clear of all  liens,  charges  and claims of
                           others, except as noted on Schedule "A", and no taxes
                           or rentals are due;

                  (iii)    the mineral  claims  comprised in the  Property  have
                           been duly and validly  located and recorded  pursuant
                           to the laws of the jurisdiction in which the Property
                           is situate  and,  except as specified in Schedule "A"
                           and accepted by the  Optionee,  are in good  standing
                           with   respect   to   all   filings,   fees,   taxes,
                           assessments,  work commitments or other conditions on
                           the date hereof and until the dates set  opposite the
                           respective names in Schedule "A";

                                       2
<PAGE>

                  (iv)     there is no adverse claim or challenge  against or to
                           the  ownership  of or  title  to any  of the  mineral
                           claims comprising the Property,  nor to the knowledge
                           of the  Optionor  is there any basis  therefore,  and
                           there are no  outstanding  agreements  or  options to
                           acquire  or  purchase  the  Property  or any  portion
                           thereof,  and no  person  other  than  the  Optionor,
                           pursuant to the provisions hereof, has any royalty or
                           other interest  whatsoever in production  from any of
                           the mineral claims comprising the Property other than
                           as set out in Schedule "A";

                  (v)      no  proceedings  are pending for, and the Optionor is
                           unaware  of any  basis  for  the  institution  of any
                           proceedings leading to the placing of the Optionor in
                           bankruptcy or subject to any other laws governing the
                           affairs of insolvent persons.

         (b)      The representations  and warranties  contained in this section
                  are provided for the  exclusive  benefit of the Optionee and a
                  breach  of any  one or  more  thereof  may  be  waived  by the
                  Optionee in whole or in part at any time without  prejudice to
                  its rights in  respect of any other  breach of the same or any
                  other representation or warranty,  and the representations and
                  warranties   contained  in  this  section  shall  survive  the
                  execution hereof.

REPRESENTATIONS AND WARRANTIES OF THE OPTIONEE

3.       (a)      The Optionee represents and warrants to the Optionor that:

                  (i)      it has been duly incorporated and validly exists as a
                           corporation  in good  standing  under the laws of its
                           jurisdiction of incorporation;

                  (ii)     it is lawfully  authorized to hold mineral claims and
                           real property under the laws of the  jurisdiction  in
                           which the Property is situate;

                  (iii)    it has duly obtained all corporate authorizations for
                           the   execution  of  this   Agreement   and  for  the
                           performance   of  this   Agreement   by  it  and  the
                           consummation of the transaction  herein  contemplated
                           will not conflict with or result in any breach of any
                           covenants or agreements  contained in or constitute a
                           default  under  or  result  in  the  creation  of any
                           encumbrance  under the  provisions of the Articles or
                           the  constating  documents  of  the  Optionee  or any
                           shareholders'  or directors'  resolution,  indenture,
                           agreement or other instrument whatsoever to which the
                           Optionee  is a party  or by  which  it is bound or to
                           which it or the Property may be subject; and

                  (iv)     no  proceedings  are pending for and the  Optionee is
                           unaware  of any  basis  for  the  institution  of any
                           proceedings leading to, the dissolution or winding up
                           of the  Optionee  or the  placing of the  Optionee in
                           bankruptcy or subject to any other laws governing the
                           affairs of insolvent corporations.

         (b)      The representations  and warranties  contained in this section
                  are provided for the  exclusive  benefit of the Optionor and a
                  breach  of any  one or  more  thereof  may  be  waived  by the
                  Optionor in whole or in part at any time without  prejudice to
                  its rights in  respect of any other  breach of the same or any
                  other  representation or warranty and the  representations and
                  warranties   contained  in  this  section  shall  survive  the
                  execution hereof.

                                       3
<PAGE>

GRANT AND EXERCISE OF OPTION

4.       (a)      The  Optionor  hereby  grants  to the  Optionee  the  sole and
                  exclusive  right  and  option  to  acquire  a  100%  undivided
                  interest in and to the Property free and clear of all charges,
                  encumbrances and claims,  except for those set out in Schedule
                  "A".

         (b)      The Option shall be fully exercised by the Optionee:

                  (i)      paying the Optionor the sum of $50,000 as follows:

                           (A)      $25,000 on or before December 31, 2001; and

                           (B)      an additional  $25,000 on or before December
                                    21, 2002.

                  (ii)     allotting  and  issuing  to the  Optionor  a total of
                           1,000,000 fully paid and non-assessable common shares
                           in the capital of the Optionee as follows:

                           (A)      100,000  shares  at a deemed  price of $0.50
                                    per   share   on  the   execution   of  this
                                    Agreement;

                           (B)      200,000  shares upon the  completion  of the
                                    first  phase  of  a  work   program  on  the
                                    Property,   subject  to   production  of  an
                                    acceptable  engineering or geological report
                                    detailing  the work done on the Property and
                                    recommending further work on the Property;

                           (C)      200,000  shares upon the  completion  of the
                                    second  phase  of  a  work  program  on  the
                                    Property,   subject  to   production  of  an
                                    acceptable  engineering or geological report
                                    detailing  the work done on the Property and
                                    recommending  further work on the  Property;
                                    and

                           (D)      500,000  shares upon the  completion  of the
                                    third  phase  of  a  work   program  on  the
                                    Property,  subject to the  production  of an
                                    acceptable  engineering or geological report
                                    detailing  the work done on the Property and
                                    recommending further work on the Property.

                  (iii)    incurring Exploration Expenditures of $100,000 on the
                           Property as follows:

                           (A)      $10,000 on or before September 1, 2001;

                           (B)      a further $40,000 on or before June 1, 2002;
                                    and

                           (C)      a further  $50,000 on or before December 31,
                                    2002.

                  In the event  that the  Optionee  spends,  in any of the above
                  periods,  less than the specified sum, it may pay the Optionor
                  the  difference  between the amount it actually  spent and the
                  specified  sum  before  the  expiry  of  that  period  in full
                  satisfaction of the expenditures  specified. In the event that
                  the Optionee  spends,  in any period,  more than the specified
                  sum,  the excess  shall be carried  forward and applied to the
                  expenditures to be made in succeeding periods.

                                       4
<PAGE>

         (c)      If and when the Option has been  exercised,  a 100%  undivided
                  right, title and interest in and to the Property shall vest in
                  the Optionee free and clear of all charges,  encumbrances  and
                  claims,  except for the obligations of the Optionee to pay the
                  Optionor the Royalty, if any, and to give the Optionor a right
                  of first refusal on any mineral claim comprising a part of the
                  Property which the Optionee wishes to abandon.

         (d)      In the event that the  Optionee  does not fully  exercise  the
                  Option by fulfilling the terms set out in subparagraph  (b) by
                  the 20th  anniversary  of this  Agreement  the Option and this
                  Agreement shall terminate.

RIGHT OF ENTRY

5.       Throughout  the  Option  Period,  the  directors  and  officers  of the
Optionee and its servants,  agents and independent  contractors,  shall have the
sole and exclusive right in respect of the Property to:

         (a)      enter thereon;

         (b)      have exclusive and quiet possession thereof;

         (c)      do such prospecting, exploration, development and other mining
                  work as the  Optionee  in its sole  discretion  may  determine
                  advisable;

         (d)      bring upon and erect upon the Property such buildings,  plant,
                  machinery  and  equipment as the Optionee may deem  advisable;
                  and

         (e)      remove and dispose of reasonable  quantities of ores, minerals
                  and  metals for the  purposes  of  obtaining  assays or making
                  other tests.

TRANSFER OF PROPERTY

6.       (a)      Concurrently  with  the  execution  of  this  Agreement,   the
                  Optionor shall deliver to the Optionee duly executed transfers
                  of the  appropriate  interest in the  Property  which shall be
                  acquired by the Optionee upon exercise of the Option.

         (b)      The  Optionee  shall  be  entitled  to  record  all  transfers
                  contemplated at its own cost with the  appropriate  government
                  office  to  effect  legal  transfer  of such  interest  in the
                  Property  into the  name of the  Optionee,  provided  that the
                  Optionee  shall hold such interest in the Property  subject to
                  the  terms of this  Agreement,  it being  understood  that the
                  transfer  of such  legal  title to the  Optionee  prior to the
                  exercise of the Option is for administrative convenience only.

OBLIGATIONS OF THE OPTIONEE DURING OPTION PERIOD

7.                During the Option Period, the Optionee shall:

         (a)      maintain in good standing  those mineral  claims  comprised in
                  the Property by the doing and filing of assessment work or the
                  making of  payments in lieu  thereof,  by the payment of taxes
                  and rentals,  and the  performance  of all other actions which
                  may be  necessary  in that  regard  and in order to keep  such
                  mineral  claims free and clear of all liens and other  charges
                  arising from the Optionee's activities thereon except those at
                  the time contested in good faith by the Optionee;

                                       5
<PAGE>

         (b)      permit  the  directors,  officers,  employees  and  designated
                  consultants  of the  Optionor,  at their own risk and expense,
                  access  to the  Property  at all  reasonable  times,  and  the
                  Optionor agrees to indemnify the Optionee  against and to save
                  it harmless from all costs,  claims,  liabilities and expenses
                  that the  Optionee  may  incur or  suffer  as a result  of any
                  injury  (including  injury  causing  death)  to any  director,
                  officer,  employee or  designated  consultant  of the Optionor
                  while on the Property;

         (c)      permit the Optionor, at its own expense,  reasonable access to
                  the results of the work done on the  Property  during the last
                  completed calendar year;

         (d)      do all work on the Property in a good and workmanlike  fashion
                  and in  accordance  with  all  applicable  laws,  regulations,
                  orders and ordinances of any governmental authority;

         (e)      indemnify and save the Optionor harmless in respect of any and
                  all costs, claims, liabilities and expenses arising out of the
                  Optionee's activities on the Property,  but the Optionee shall
                  incur no obligation  hereunder in respect of claims arising or
                  damages  suffered  after  termination  of the  Option  if upon
                  termination of the Option any workings on or  improvements  to
                  the  Property  made  by  the  Optionee  are  left  in  a  safe
                  condition.

TERMINATION OF OPTION

8.       (a)      The  Optionee  may  terminate  the  Option  by  notice  to the
                  Optionor.

         (b)      If the Option is  terminated  by the Optionee or the Optionor,
                  the Optionee shall:

                  (i)      leave in good standing for a period of at least three
                           months  from the  termination  of the  Option  Period
                           those mineral claims comprised in the Property;

                  (ii)     deliver  to the  Optionor  a Bill of  Sale  or  other
                           proper form of transfer documents, in recordable form
                           whereby the right,  title and  interest in and to the
                           Property has been  transferred to the Optionor or its
                           nominee or  nominees,  free and clear of all liens or
                           charges arising from the Optionee's activities on the
                           Property; and

                  (iii)    deliver at no cost to the Optionor  within 90 days of
                           such termination,  copies of all reports, maps, assay
                           results and other  relevant  technical  data compiled
                           by,   prepared  at  the   direction  of,  or  in  the
                           possession  of  the  Optionee  with  respect  to  the
                           Property  and  not   theretofore   furnished  to  the
                           Optionor.

         (c)      Notwithstanding  the  termination of the Option,  the Optionee
                  shall  have the right,  within a period of 180 days  following
                  the end of the Option Period,  to remove from the Property all
                  buildings, plant, equipment,  machinery, tools, appliances and
                  supplies  which have been  brought  upon the Property by or on
                  behalf of the  Optionee,  and any such  property  not  removed
                  within  such  180  day  period  shall  thereafter  become  the
                  property of the Optionor.

ROYALTY

9.       (a)      Upon the Commencement of Commercial  Production,  the Optionee
                  shall pay to the Optionor  the  Royalty,  being equal to 3% of
                  net Smelter  Returns on the terms and conditions as set out in
                  this section and in Schedule "B".

                                       6
<PAGE>

         (b)      Instalments of the Royalty  payable under  paragraph (a) shall
                  be paid by the Optionee as follows:

                  (i)      within  45  days   after  the  end  of  each  of  the
                           Optionee's first three fiscal quarters in each fiscal
                           year and within 60 days of the end of the  Optionee's
                           last fiscal quarter in each fiscal year, the Optionee
                           shall pay to the  Optionor an amount  equal to 25% of
                           the estimated  Royalty,  if any, for the fiscal year,
                           adjusted if necessary  after the first quarter of any
                           fiscal year to reflect  any change  during the fiscal
                           year in estimated Royalty; and

                  (ii)     within  120  days  after  the  end of the  Optionee's
                           fiscal year, the balance,  if any, of Royalty payable
                           in respect of the fiscal year last completed.

         (c)      After  Commencement  of  Commercial  Production,  the Optionee
                  shall,  within 45 days after the end of each  fiscal  quarter,
                  furnish  to  the  Optionor  quarterly   unaudited   statements
                  respecting  operations  on  the  Property,   together  with  a
                  statement  showing the  calculation  of Royalty for the fiscal
                  quarter last completed.

         (d)      Forthwith  after the end of each fiscal year,  commencing with
                  the  year  in  which  Commencement  of  Commercial  Production
                  occurs, the accounts of the Optionee relating to operations on
                  the Property shall be audited by the auditors of the Optionee,
                  at its expense,  and the statement of operations,  which shall
                  include the statement of  calculation  of Royalty for the year
                  last completed.  The Optionor shall have 45 days after receipt
                  of such statements to question the accuracy thereof in writing
                  and, failing such objection, the statements shall be deemed to
                  be correct and unimpeachable thereafter.

         (e)      If the  audited  financial  statements  furnished  pursuant to
                  paragraph  (d)  disclose  any  overpayment  of  Royalty by the
                  Optionee during the fiscal year, the amount of the overpayment
                  shall be debited against future instalments of Royalty payable
                  hereunder.

         (f)      If the  audited  financial  statements  furnished  pursuant to
                  paragraph  (d)  disclose  any  underpayment  of Royalty by the
                  Optionee  during the year, the amount thereof shall be paid to
                  the Optionor forthwith after determination thereof.

         (g)      The Optionor  agrees to maintain for each mining  operation on
                  the Property,  up-to-date and complete records relating to the
                  production  and  sale of  minerals,  ore,  bullion  and  other
                  product  from  the  Property,   including  accounts,  records,
                  statements  and returns  relating to  treatment  and  smelting
                  arrangements  of such product,  and the Optionor or its agents
                  shall have the right at all reasonable times,  including for a
                  period of 12 months following the expiration or termination of
                  this  Agreement,  to  inspect  such  records,  statements  and
                  returns  and make copies at its own expense for the purpose of
                  verifying  the  amount of Royalty  payments  to be made by the
                  Optionee to the Optionor  pursuant hereto.  The Optionor shall
                  have  the  right  at its own  expense  to have  such  accounts
                  audited by independent auditors once each fiscal year.

         (h)      Upon  the  Optionor  receiving  a  total  of  $1,000,000  from
                  payments of Royalty, the Royalty shall terminate. The Optionee
                  shall always have the right to prepay such amount before it is
                  actually due.

                                       7
<PAGE>

POWER TO CHARGE PROPERTY

10.      At any time after the Optionee has exercised  the Option,  the Optionee
may  grant  mortgages,  charges  or liens  (each of  which  is  herein  called a
"mortgage") of and upon the Property or any portion  thereof,  any mill or other
fixed assets located  thereon and any or all of the tangible  personal  property
located  on or used in  connection  with the  Property  to secure  financing  of
development of the Property,  provided that,  unless  otherwise agreed to by the
Optionor,  it shall be a term of each  mortgage that the mortgagee or any person
acquiring title to the Property upon  enforcement of the mortgage shall hold the
same subject to the rights of the Optionor  hereunder as if the mortgagee or any
such person had executed this Agreement.

TRANSFERS

11.      (a)      The Optionee may at any time either  during the Option  Period
                  or thereafter,  sell,  transfer or otherwise dispose of all or
                  any portion of its  interest in and to the  Property  and this
                  Agreement  provided that any purchaser,  grantee or transferee
                  of  any  such  interest  shall  have  first  delivered  to the
                  Optionor its  agreement  related to this  Agreement and to the
                  Property, containing:

                  (i)      a covenant  by such  transferee  to  perform  all the
                           obligations  of the  Optionee to be  performed  under
                           this  Agreement  in  respect  of the  interest  to be
                           acquired  by it from the  Optionee to the same extent
                           as if this Agreement had been originally  executed by
                           such transferee; and

                  (ii)     a provision  subjecting any further sale, transfer or
                           other  disposition  of such  interest in the Property
                           and this  Agreement  or any  portion  thereof  to the
                           restrictions contained in this paragraph (a).

         (b)      No  assignment  by the Optionee of any interest  less than its
                  entire  interest in this Agreement and in the Property  shall,
                  as between the  Optionee and the  Optionor,  discharge it from
                  any of its obligations hereunder, but upon the transfer by the
                  Optionee of the entire interest at the time held by it in this
                  Agreement,  whether to one or more  transferees and whether in
                  one or in a number of successive transfers, the Optionee shall
                  be deemed to be discharged from all obligations hereunder save
                  and except for the payment of the Royalty or other fulfillment
                  of  contractual  commitments  accrued due prior to the date on
                  which the  Optionee  shall  have no further  interest  in this
                  Agreement.

         (c)      If the  Optionor  should  receive  a bona fide  offer  from an
                  independent third party (the "Proposed  Purchaser") dealing at
                  arm's  length with the  Optionor to purchase  all or a part of
                  its interest in the Property, which offer the Optionor desires
                  to accept, or if the Optionor intends to sell all or a part of
                  its interest in the Property:

                  (i)      The  Optionor  shall first offer (the  "Offer")  such
                           interest  in  writing to the  Optionee  upon terms no
                           less  favourable  than those  offered by the Proposed
                           Purchaser or intended to be offered by the  Optionor,
                           as the case may be.

                  (ii)     The  Offer  shall   specify  the  price,   terms  and
                           conditions  of such  sale,  the name of the  Proposed
                           Purchaser and shall, in the case of an intended offer
                           by the  Optionor,  disclose  the person or persons to
                           whom the Optionor  intends to offer its interest and,
                           if the  offer  received  by  the  Optionor  from  the
                           Proposed  Purchaser  provides  for any  consideration
                           payable to the Optionor  otherwise  than in cash, the
                           Offer  shall  include  the   Optionor's   good  faith
                           estimate  of the  cash  equivalent  of  the  non-cash
                           consideration.

                                       8
<PAGE>

                  (iii)    If within a period of 60 days of the  receipt  of the
                           Offer the  Optionee  notifies the Optionor in writing
                           that it will accept the Offer,  the Optionor shall be
                           bound to sell such  interest  to the  Optionee on the
                           terms and  conditions  of the Offer.  If the Offer so
                           accepted by the Optionee contains the Optionor's good
                           faith estimate of the cash equivalent of the non cash
                           consideration  as  aforesaid,  and  if  the  Optionee
                           disagrees  with the  Optionor's  best  estimate,  the
                           Optionee  shall so notify the Optionor at the time of
                           acceptance  and the Optionee  shall,  in such notice,
                           specify what it  considers,  in good faith,  the fair
                           cash   equivalent  to  be  and  the  resulting  total
                           purchase  price.  If the  Optionee  so  notifies  the
                           Optionor,  the  acceptance  by the Optionee  shall be
                           effective  and  binding  upon  the  Optionor  and the
                           Optionee,   and  the  cash  equivalent  of  any  such
                           non-cash consideration shall be determined by binding
                           arbitration  and shall be  payable  by the  Optionee,
                           subject to prepayment as hereinafter provided, within
                           60 days following its  determination  by arbitration.
                           The Optionee  shall in such case pay to the Optionor,
                           against receipt of an absolute  transfer of clear and
                           unencumbered  title to the  interest of the  Optionor
                           being  sold,   the  total  purchase  price  which  is
                           specified  in its  notice  to the  Optionor  and such
                           amount  shall be  credited  to the amount  determined
                           following  arbitration of the cash  equivalent of any
                           non-cash consideration.

                  (iv)     If the Optionee  fails to notify the Optionor  before
                           the expiration of the time limited  therefore that it
                           will purchase the interest offered,  the Optionor may
                           sell  and  transfer  such  interest  to the  Proposed
                           Purchaser   at  the   price  and  on  the  terms  and
                           conditions  specified in the Offer for a period of 60
                           days,  but the terms of this  paragraph  shall  again
                           apply to such  interest  if the sale to the  Proposed
                           Purchaser is not completed within such 60 days.

                  (v)      Any  sale  hereunder  shall be  conditional  upon the
                           Proposed Purchaser  delivering a written  undertaking
                           to the Optionee,  in form and substance  satisfactory
                           to  its  counsel,  to  be  bound  by  the  terms  and
                           conditions of this Agreement.

SURRENDER AND ACQUISITION OF PROPERTY
INTEREST PRIOR TO TERMINATION OF AGREEMENT

12.      The  Optionee  may at any time elect to abandon  any one or more of the
mineral  claims  comprised in the  Property by giving  notice to the Optionor of
such intention.  For a period of 30 days after giving such notice,  the Optionor
may elect to have any or all of the  mineral  claims in  respect  of which  such
notice has been given  transferred  to it by delivery of a request  therefore to
the  Optionee,  whereupon  the Optionee  shall deliver to the Optionor a Bill of
Sale or other  appropriate  transfer  documents in registrable form transferring
such mineral claims to the Optionor.  Any claims so transferred shall be in good
standing  under the laws of the  jurisdiction  in which they are  situate for at
least  three  months  from the de of  transfer.  If the  Optionor  fails to make
request for the transfer of any mineral  claims as aforesaid  within such 30 day
period, the Optionee may then abandon such mineral claims without further notice
to the Optionor.  Upon any such transfer or  abandonment,  the mineral claims so
transferred or abandoned  shall for all purposes of this Agreement cease to form
part of the Property.

FORCE MAJEURE

13.      (a)      If the Optionee is at any time either during the Option Period
                  or  thereafter  prevent  or  delayed  in  complying  with  any
                  provisions of this Agreement by reason of strikes,  lock-outs,
                  labour  shortages,  power  shortages,  fuel shortages,  fires,
                  wars, acts of God, governmental regulations restricting normal
                  operations, shipping delays or any other

                                       9
<PAGE>

                  reason  or  reasons,  other  than lack of  funds,  beyond  the
                  control of the Optionee,  the time limited for the performance
                  by the Optionee of its obligations hereunder shall be extended
                  by a period of time equal in length to the period of each such
                  prevention or delay,  but nothing  herein shall  discharge the
                  Optionee  from  its  obligations  hereunder  to  maintain  the
                  Property in good standing;

         (b)      The Optionee  shall give prompt notice to the Optionor of each
                  event of force majeure under  paragraph (a) and upon cessation
                  of such event shall furnish to the Optionor with notice t that
                  effect  together  with  particulars  of the  number of days by
                  which the  Obligations  of the  Optionee  hereunder  have been
                  extended  by virtue  of such  event of force  majeure  and all
                  preceding events of force majeure.

         (c)      After the Commencement of Commercial Production,  the Optionee
                  shall work,  mine and operate the Property during such time or
                  times as the  Optionee  in its sole  judgment  considers  such
                  operations  to be  profitable.  The  Optionee  may  suspend or
                  curtail  operations,  both  before and after  Commencement  of
                  Commercial  Production,   during  periods  when  the  products
                  derived  from  the  Property  cannot  be  profitable  sold  at
                  prevailing prices or if an unreasonable  inventory thereof, in
                  the  Optionee's  sole  judgment,   has  accumulated  or  would
                  otherwise accumulate.

CONFIDENTIAL INFORMATION

14.      No information  furnished by the Optionee to the Optionor  hereunder in
respect of the  activities  carried  out on the  Property  by the  Optionee,  or
related to the sale of minerals,  ore, bullion or other product derived from the
Property,  shall be published by the Optionor  without the prior written consent
of the  Optionee,  but such consent in respect of the  reporting of factual data
shall not be  unreasonably  withheld,  and shall not be  withheld  in respect of
information required to be publicly disclosed pursuant to applicable  securities
or corporation laws.

ARBITRATION

15.      (a)      The  parties  agree that all  questions  or matters in dispute
                  with respect to the  accounting of monies  hereunder or in any
                  respect to any other  dispute which the parties agree shall be
                  settled by  arbitration,  shall be  submitted  to  arbitration
                  pursuant to the terms hereof.

         (b)      It shall be a condition precedent to the right of any party to
                  submit any matter to  arbitration  pursuant to the  provisions
                  hereof,  that any  party  intending  to refer  any  matter  to
                  arbitration  shall  have  given not less  than 10 days'  prior
                  notice of its intention to do so to the other party,  together
                  with particulars of the mater in dispute. On the expiration of
                  such 10 days,  the party who gave such  notice may  proceed to
                  refer the dispute to arbitration as provided in paragraph (c).

         (c)      The party  desiring  arbitration  shall appoint one arbitrator
                  and shall notify the other party of such  appointment  and the
                  other party shall, within 15 days after receiving such notice,
                  either  consent to the  appointment of such  arbitrator  which
                  shall then carry out the  arbitration or appoint an arbitrator
                  and the two  arbitrators so named,  before  proceeding to act,
                  shall within 30 days of the  appointment of the last appointed
                  arbitrator,  unanimously  agree on the  appointment of a third
                  arbitrator to act with them and be chairman of the arbitration
                  herein provided for.

         If the other party shall fail to appoint an  arbitrator  within 15 days
         after receiving notice of the appointment of the first arbitrator,  the
         first  arbitrator  shall  be  the  only  arbitrator,  and  if  the  two

                                       10
<PAGE>

         arbitrators  appointed  by the parties  shall be unable to agree on the
         appointment of the chairman,  the chairman shall be appointed under the
         provisions  of the  Commercial  arbitration  Act of  British  Columbia.
         Except  as  specifically   otherwise  provided  in  this  section,  the
         arbitration  herein  provided for shall be conducted in accordance with
         such Act. The  chairman,  or in the case where only one  arbitrator  is
         appointed,  the  single  arbitrator,  shall  fix a time  and  place  in
         Vancouver,  British  Columbia,  for the purpose of hearing the evidence
         and  representations  of the  parties,  and he shall  preside  over the
         arbitration  and  determine all questions of procedure not provided for
         under  such  Act or  this  section.  After  hearing  any  evidence  and
         representations that the parties may submit, the single arbitrator,  or
         the arbitrators, as the case may be, shall make an award and reduce the
         same to writing and  delivery  one copy thereof to each of the parties.
         The expense of the arbitration shall be paid as specified in the award.

         (d)      The  parties  agree  that  the  award  of a  majority  of  the
                  arbitrators  or in the  case of a single  arbitrator,  of such
                  arbitrator, shall be final and binding upon each of them.

DEFAULT AND TERMINATION

16.      (a)      If at any time during the Option Period the Optionee  fails to
                  perform  any  obligation   required  to  be  performed  by  it
                  hereunder or is in breach of a warranty given by it hereunder,
                  which  failure  or  breach  materially   interferes  with  the
                  implementation  of this Agreement,  the Optionor may terminate
                  this Agreement, but only if:

                  (i)      it shall have first given to the Optionee a notice of
                           default  containing  particulars  of  the  obligation
                           which the Optionee has not  performed or the warranty
                           breached; and

                  (ii)     the  Optionee  has  not,  within  45  days  following
                           delivery  of  such  notice  of  default,  cured  such
                           default or commenced proceedings to cure such default
                           by appropriate  payment or performance,  the Optionee
                           hereby  agreeing  that  should it so commence to cure
                           any default it will  prosecute the same to completion
                           without undue delay.

                  Should  the  Optionee  fail to comply  with the  provision  of
                  subparagraph (ii), the Optionor may thereafter  terminate this
                  Agreement.

         (b)      The Optionee may permanently  discontinue mining operations on
                  the Property at any time after the  Commencement of Commercial
                  Production  when in its opinion no further  mining  operations
                  can be  economically  carried out thereon.  At such time,  the
                  Optionee  shall dispose of all mining plant and equipment used
                  on the Property,  effect all  reclamation  work as required by
                  law and  otherwise  dispose of the  Property as it thinks fit.
                  Any  purchaser of the  Property  after  termination  of mining
                  operations  on the Property  shall take the Property  free and
                  clear of all  claims  by the  Optionor.  The  accounts  of the
                  Optionee  relating to its mining  operations  on the  Property
                  shall be audited by the  auditors  of the  Optionee as soon as
                  practicable after the sale or disposition of all mining plant,
                  equipment  and the Property  and  completion  of  reclamation.
                  Final  settlement of any Royalty payable to the Optionor shall
                  be effected  without  delay after receipt of the final audited
                  statements. After receipt of such final audited statements and
                  payment of  Royalty,  if any,  this  Agreement  and the mutual
                  obligations of the Optionee and the Optionor  hereunder  shall
                  terminate.

                                       11
<PAGE>

NOTICES

17.      (a)      Each  notice,  demand  or  other  communication   required  or
                  permitted to be given under this Agreement shall be in writing
                  and shall be sent by prepaid  registered  mail  deposited in a
                  Post  Office in Canada  addressed  to the  party  entitled  to
                  receive  the  same,  or  delivered,  telexed,  telegraphed  or
                  telecopied  to  such  party  at the  address  for  such  party
                  specified above. The date of receipt of such notice, demand or
                  other  communication  shall be the date of delivery thereof if
                  delivered, telexed, telegraphed or telecopied, or, if given by
                  registered mail as aforesaid,  shall be deemed conclusively to
                  be the third  business  day after the same  shall have been so
                  mailed except in the case of  interruption  of postal services
                  for any  reason  whatever,  in which  case the date of receipt
                  shall  be the  date on  which  the  notice,  demand  or  other
                  communication is actually received by the addressee.

         (b)      Either  party may at any time and from time to time notify the
                  other  party in  writing  of a change or  address  and the new
                  address to which notice shall be given to it thereafter  until
                  further change.

GENERAL

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

         (b)      No consent or waiver  expressed  or implied by either party in
                  respect  of  any  breach  or  default  by  the  other  in  the
                  performance by such other of its  obligations  hereunder shall
                  be deemed or  construed  to be a consent to or a waiver of any
                  other breach of default.

         (c)      The parties shall promptly execute or cause to be executed all
                  documents, deeds, conveyances and other instruments of further
                  assurance  and do such  further  and other  acts  which may be
                  reasonably  necessary  or  advisable  to carry  out  fully the
                  intent of this Agreement or to record wherever appropriate the
                  respective  interest  from time to time of the  parties in the
                  Property.

         (d)      This  Agreement  shall  enure to the benefit of and be binding
                  upon the parties and their respective successors and permitted
                  assigns.

         (e)      This   Agreement   shall  be  governed  by  and  construed  in
                  accordance  with the laws of  British  Columbia  and  shall be
                  subject  to  the   approval  of  all   securities   regulatory
                  authorities having jurisdiction.

         (f)      Time shall be of the essence in this Agreement.

         (g)      Wherever the neuter and singular is used in this  Agreement it
                  shall be deemed to include the plural, masculine and feminine,
                  as the case may be.

                                       12
<PAGE>

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.

The CORPORATE SEAL of                                   )
Cascadia Capital Corporation                            )
was hereunto affixed in the                             )
presence of:                                            )        c/s
                                                        )
/s/ Keith Ebert                                         )
-----------------------------------------------------
Keith Ebert, President, C.F.O. and Director             )

SIGNED, SEALED AND DELIVERED                            )
by Gerry Diakow in the presence of:                     )
                                                        )
/s/ Gerald R. Tuskey                                    )        /s/Gerry Diakow
-----------------------------------------------------            ---------------
Witness - Gerald R. Tuskey                              )        Gerry Diakow
                                                        )
1000 - 409 Granville Street                             )
-----------------------------------------------------
Address                                                 )
                                                        )
Vancouver, B.C.  V6C 1T2                                )
--------------------------------------------

                                       13
<PAGE>

                                  SCHEDULE "A"
                   To Option Agreement dated October 21, 2000

<TABLE>
<CAPTION>
CLAIM NAME                           RECORD NUMBER                ANNIVERSARY DATE             YEAR OF EXPIRY
----------                           -------------                ----------------             --------------
<S>                                  <C>                          <C>                          <C>
Vowel #7                             364416                       Nov. 15                      2001
Vowel #8                             364417                       Nov. 15                      2001
Vowel #9                             364418                       Nov 15                       2001
Vowel #10                            364419                       Nov. 15                      2001
Vowel #11                            364420                       Nov. 15                      2001
Vowel #12                            364421                       Nov. 15                      2001
Vowel #13                            364422                       Nov. 15                      2001
Vowel #14                            364423                       Nov. 15                      2001
PT #1                                364396                       Nov. 15                      2001
PT #2                                364397                       Nov. 15                      2001
PT #3                                364398                       Nov. 15                      2001
PT #4                                364399                       Nov. 15                      2001
PT #5                                364400                       Nov. 15                      2001
PT #6                                364401                       Nov. 15                      2001
PT #7                                364402                       Nov. 15                      2001
PT#8                                 364403                       Nov. 15                      2001
PT#19                                364442                       Nov. 15                      2001
PT#20                                364443                       Nov. 15                      2001
Birch #1                             364414                       Nov. 15                      2001
</TABLE>

Liard Mining Division, British Columbia

<PAGE>

                                  SCHEDULE "B"
                   To Option Agreement dated October 21, 2000

                               NET SMELTER RETURNS

1.       For the purposes of this Agreement "Net Smelter Returns" shall mean the
actual proceeds received from any mint,  smelter or other purchaser for the sale
of bullion,  concentrates  or ores  produced  from the Property and sold,  after
deducting  from such proceeds the following  charges to the extent that they are
not deducted by the purchaser in computing payment:

         (a)      in the case of the sale of bullion, refining charges only;

         (b)      in the case of the sale of concentrates, smelting and refining
                  charges,  penalties  and the  cost of  transportation  of such
                  concentrates  from  the  Property  to  any  smelter  or  other
                  purchaser; and

         (c)      in the case of ores shipped to a purchaser,  refining  charges
                  for bullion and charges for smelting, refining and the cost of
                  transportation from the mill to any smelter or other purchaser
                  for concentrates.

2.       The  Optionee  shall  have  the  right to  commingle  with ore from the
Property,  ore  produced  from  other  properties  owned  or  controlled  by the
Optionee,  provided the Optionee shall adopt and employ reasonable practices and
procedures for weighing, sampling and assaying in order to determine the amounts
of products  derived from, or  attributable  to, ore mined and produced from the
Property.  The Optionee shall maintain  accurate  records of the results of such
sampling,  weighing and assaying with respect to any ore mined and produced from
the Property.  The Optionor or its authorized agent shall be permitted the right
to examine at all  reasonable  times such records  pertaining to  commingling of
ores or to the calculations of Net Smelter Returns.

3.       Commencing on the fifth  anniversary  of this  Agreement and every year
thereafter until  Commencement of Commercial  Production from the Property,  the
Optionee  shall pay the Optionor an advance on Net Smelter  Returns of $100,000.
Any  advances  on Net  Smelter  Returns  paid  under  this  paragraph  shall  be
accumulated  and be deductible  from any Net Smelter  Returns to the Optionor to
the extent such Net Smelter  Returns  payments  exceed $100,000 for any calendar
year.

4.       If, after Commencement of Commercial Production from the Property,  Net
Smelter  Returns  payable to the Optionor  for any  calendar  year are less than
$100,000,  the  Optionee  shall pay to the  Optionor  on or before June 1 of the
following year the difference between the $100,000 and the amount of Net Smelter
Returns payable for the said calendar year.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]