Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals U.S. Inc. - Exhibit 4.12

	 Page 1 of 5	
6/29/2005 
	

 First Amendment to

  Mining Lease and Option to Purchase Agreement of August 1, 2004 

  Between Diversified Inholdings L.L.C. and Romarco Minerals U.S. Inc.
  

  Exhibit A 

  Description of Zebra Property and Area of Interest

 1.             Effective
  Date 

  The effective date of this amendment is September 1, 2004. 

 2.             Area
  of Interest 

  The Area of Interest “AOI” has been expanded and includes the following:
  

  T38N R44E Section 2 NW4, E2NE4, SE4/NE4 

  T39N R44E Section 14 NW4, N2/SW4, W2/E2, NE4/NE4, 

  T39N R44E Section 15 S2/NE4, SE1/4, NE4/SW4

  T39N R44E Section 22 NE4/NW4, N2/NE4 

  T39N R44E Section 23 E2/NW4, W2/E2

  T39N R44E Section 26 NE4/NE4, S2/NE4, S2

  T39N R44E Section 27 E2/SE4

  T39N R44E Section 35 N2, N2/SW4, NE4/SE4 

  Exhibit A see attached. 

 3.             Claims
  within Area of Interest 

  Attachment 1 see attached. 

 ATTACHMENT 1 

  Created from the Bureau of Land Management database on 12-12-2003 

  and appended on 12-18-2004. 

	 

      Claim Name  	 NMC  	 Location Date  	 Section  	 Township  
	 BJ 1  	 847292  	 1/31/2003  	 35	  39N 44E  
	 BJ 2  	 847293  	 1/31/2003  	35	  39N 44E  
	 BJ 3  	 847294  	 1/31/2003  	35	  39N 44E  
	 BJ 4  	 847295  	 1/31/2003  	35	  39N 44E  
	 KAT 11  	 847498  	 2/9/2003  	 23	  39N 44E  
	 KAT 12  	 847499  	 2/9/2003  	23	  39N 44E  
	 KAT 13  	 847500  	 2/9/2003  	23	  39N 44E  
	 KAT 14  	 847501  	 2/9/2003  	23	  39N 44E  
	 DJ 38  	 847289  	 2/27/2003  	 2	  38N 44E  
	 DJ 39  	 847290  	 2/27/2003  	 2	  38N 44E  
	 DJ 40  	 847291  	 2/27/2003  	 2	  38N 44E  
	 KAT 1  	 847497  	 4/24/2003  	 23	  39N 44E  
	 DJ 13  	 849929  	 5/6/2003  	 26	  39N 44E  
	 DJ 14  	 849930  	 5/6/2003  	 26	  39N 44E  

 Diversified Inholdings L.L.C. Exhibit A Amended
  

  P.O. Box 34089, Reno, Nv. 89533-4089, Manager: Greg Ekins 775-746-8803, Manager:
  Pete Dilles 775-972-7989 

	 Page 2 of 5	 6/29/2005  

	 DJ 15  	 849931  	 5/6/2003  	 26  	 39N 44E  
	 DJ 99  	 849936  	 5/6/2003  	 35  	 39N 44E  
	 DJ 5  	 849927  	 5/14/2003  	 35  	 39N 44E  
	 DJ 6  	 849928  	 5/14/2003  	 35  	 39N 44E  
	 DJ 29  	 849932  	 5/14/2003  	 35  	 39N 44E  
	 DJ 30  	 849933  	 5/14/2003  	 35  	 39N 44E  
	 DJ 32  	 849934  	 5/14/2003  	 35  	 39N 44E  
	 DJ 33  	 849935  	 5/14/2003  	 35  	 39N 44E  
	 KAT 2  	 851382  	 9/1/2003  	 23  	 39N 44E  
	 KAT 3  	 851383  	 9/1/2003  	 23  	 39N 44E  
	 KAT 4  	 851384  	 9/1/2003  	 23  	 39N 44E  
	 KAT 5  	 851385  	 9/1/2003  	 23  	 39N 44E  
	 KAT 6  	 851386  	 9/1/2003  	 23  	 39N 44E  
	 KAT 7  	 851387  	 9/1/2003  	 23  	 39N 44E  
	 KAT 8  	 851388  	 9/1/2003  	 23  	 39N 44E  
	 KAT 9  	 851389  	 9/1/2003  	 23  	 39N 44E  
	 KAT 10  	 851390  	 9/1/2003  	 23  	 39N 44E  
	 KAT 15  	 851391  	 9/7/2003  	 26  	 39N 44E  
	 KAT 16  	 851392  	 9/7/2003  	 26  	 39N 44E  
	 DJ 7  	 526478  	 9/2/2004  	 26  	 39N 44E  
	 DJ 8  	 526479  	 9/2/2004  	 26  	 39N 44E  
	 DJ 9  	 526480  	 9/2/2004  	 26  	 39N 44E  
	 DJ 10  	 526481  	 9/2/2004  	 26  	 39N 44E  
	 DJ 11  	 526482  	 9/2/2004  	 26  	 39N 44E  
	 DJ 12  	 526483  	 9/2/2004  	 26  	 39N 44E  
	 DJ 41  	 526484  	 9/2/2004  	 26  	 39N 44E  
	 DJ 42  	 526485  	 9/2/2004  	 26  	 39N 44E  
	 DJ 43  	 526486  	 9/2/2004  	 26  	 39N 44E  
	 DJ 44  	 526487  	 9/2/2004  	 26  	 39N 44E  
	 DJ 45  	 526488  	 9/2/2004  	 26  	 39N 44E  
	 DJ 46  	 526489  	 9/2/2004  	 26  	 39N 44E  
	 DJ 47  	 526490  	 9/2/2004  	 26  	 39N 44E  
	 DJ 48  	 526491  	 9/2/2004  	 26  	 39N 44E  
	 DJ 49  	 526492  	 9/2/2004  	 26  	 39N 44E  
	 DJ 50  	 526493  	 9/2/2004  	 26  	 39N 44E  
	 DJ 51  	 526494  	 9/2/2004  	 26  	 39N 44E  
	 DJ 52  	 526495  	 9/2/2004  	 26  	 39N 44E  
	 DJ 53  	 526496  	 9/2/2004  	 26  	 39N 44E  
	 DJ 54  	 526497  	 9/2/2004  	 26  	 39N 44E  
	 DJ 55  	 526498  	 9/2/2004  	 14  	 39N 44E  
	 DJ 56  	 526499  	 9/2/2004  	 14  	 39N 44E  
	  	 	 	 	 
	 GR 26  	 526500  	 9/2/2004  	 15  	 39N 44E  

 Diversified Inholdings L.L.C. Exhibit A Amended
  

  P.O. Box 34089, Reno, Nv. 89533-4089, Manager: Greg Ekins 775-746-8803, Manager:
  Pete Dilles 775-972-7989

	 Page 3 of 5	 6/29/2005  

	
GR 27 
		
526501 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 28 
		
526502 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 29 
		
526503 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 30 
		
526504 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 31 
		
526505 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 32 
		
526506 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 33 
		
526507 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 38 
		
526508 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 39 
		
526509 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 40 
		
526510 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 41 
		
526511 
		
9/2/2004 
		
15 
		
39N 44E 
	
	
GR 42 
		
526512 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 43 
		
526513 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 44 
		
526514 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 45 
		
526515 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 46 
		
526516 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 47 
		
526517 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 48 
		
526518 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 49 
		
526519 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 50 
		
526520 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 51 
		
526521 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 52 
		
526522 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 53 
		
526523 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 61 
		
526524 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 63 
		
526525 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 65 
		
526526 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 67 
		
526527 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 69 
		
526528 
		
9/2/2004 
		
14 
		
39N 44E 
	
	
GR 71 
		
526529 
		
9/2/2004 
		
14 
		
39N 44E 
	

 Total Claims: 85 

  Claimed Acreage: 1700 or less 

 Diversified Inholdings L.L.C. Exhibit A Amended
  

  P.O. Box 34089, Reno, Nv. 89533-4089, Manager: Greg Ekins 775-746-8803, Manager:
  Pete Dilles 775-972-7989 

 

	 Page 4 of 5	 6/29/2005  

 
   Diversified Inholdings L.L.C. Exhibit A Amended
    

    P.O. Box 34089, Reno, Nv. 89533-4089, Manager: Greg Ekins 775-746-8803, Manager:
    Pete Dilles 775-972-7989

 

	 Page 5 of 5	 6/29/2005  

 The parties have executed this First Amendment to the Mining Lease and Option
  to Purchase Agreement of August 1, 2004 Between Diversified Inholdings L.L.C.
  and Romarco Minerals U.S. Inc. effective September 1, 2004.

Date of signing February 1, 2005.

 Diversified Inholdings L.L.C. 

  P.O. Box 34089 

  Reno Nv. 89533-4089 

 By: __________________ Date ______________

   Greg Ekins, Manager 

 By: __________________ Date ______________

   Pete Dilles, Manager 

 Romarco Minerals U.S. Inc. 

  80 Bitterbrush Road 

  Reno, Nevada 89523-9679 

 Romarco Minerals Inc. 

  885 W. Georgia St. 

  Suite 1500 

  Vancouver, B.C., Canada V6C 3E8 

 By: __________________ Date ______________

  Diane R. Garrett, President & CEO

 Diversified Inholdings L.L.C. Exhibit A Amended
  

  P.O. Box 34089, Reno, Nv. 89533-4089, Manager: Greg Ekins 775-746-8803, Manager:
  Pete Dilles 775-972-7989Filed by Automated Filing Services Inc. (604) 609-0244 - Continental Minerals Corporation - Exhibit 4A

 

 SHAREHOLDERS AGREEMENT 

 

 BY AND AMONG 

 

 HIGHLAND MINING INC. 

 TIBET TIAN YUAN MINERALS EXPLORATION LIMITED 

 

 AND 

 

 SHAREHOLDERS OF HIGHLAND MINING INC.

 CONTINENTAL MINERALS CORPORATION 

 CHINA NETTV HOLDINGS INC. 

 AND 

 WANG ZHI 

 

 

 DATED 23 December 2004 

 TABLE OF CONTENTS 

	 SECTION	  	 PAGE
	 	 	 
	 SECTION 1	 DEFINITIONS	 1
	 	 	 
	 SECTION 2	 BOARD MATTERS, CORPORATE GOVERNANCE	 5
	 	 	 
	 SECTION 3	 SHAREHOLDERS MEETINGS	 11
	 	 	 
	 SECTION 4	 RESTRICTIONS ON TRANSFER OF ORDINARY SHARES	 13
	 	 	 
	 SECTION 5	 NPI PAYMENT RIGHTS	 17
	 	 	 
	 SECTION 6	 EXPLORATION BUDGETS	 18
	 	 	 
	 SECTION 7	 COMPANY ANNUAL BUDGETS	 21
	 	 	 
	 SECTION 8	 TIAN YUAN ANNUAL BUDGETS	 22
	 	 	 
	 SECTION 9	 FUNDING OF THE COMPANY	 23
	 	 	 
	 SECTION 10	 MANAGEMENT STRUCTURES	 27
	 	 	 
	 SECTION 11	 CERTAIN COVENANTS	 27
	 	 	 
	 SECTION 12	 TERMINATION OF AGREEMENT	 30
	 	 	 
	 SECTION 13	 REPRESENTATIONS AND WARRANTIES	 31
	 	 	 
	 SECTION 14	 OBLIGATIONS AND LIABILITY OF WZ	 32
	 	 	 
	 SECTION 15	 MISCELLANEOUS	 32
	 	 	 
	 SCHEDULE A	 ADHERENCE AGREEMENT	 40
	 	 	 
	 SCHEDULE B	 SAMPLE CALCULATIONS	 41
	 	 	 
	 SCHEDULE C	 SAMPLE CALCULATIONS	 42

 SHAREHOLDERS AGREEMENT 

 This SHAREHOLDERS AGREEMENT (this "Agreement")
  is made and entered into as of [*], 2004 by and among: 

	 (1)      	 Highland Mining Inc., a British Virgin
        Islands company with offices at TrustNet Chambers, Road Town, Tortola,
        British Virgin Islands; Fax: (852) 5242-0544 (the "Company");
      

	 
	 (2)      	 Tibet Tian Yuan Minerals Exploration Ltd.,
        a wholly foreign-owned enterprise incorporated and existing under the
        laws of the People's Republic of China with a registered address at 13F,
        Foreign Economic and Trade Tower, 75 Jin Zhu West Road, Lhasa, Tibet,
        People's Republic of China, Fax: (86 891) 6868-708 ("Tian Yuan");
      

	 
	 (3)      	 China NetTV Holdings Inc., a Delaware corporation
        with offices at Suite 830-789 West Pender Street, Vancouver, B.C., Canada,
        V6C 1H2, Fax: (1-604) 408-8515 ("CTVH"); 

	 
	 (4)      	 Continental Minerals Corporation, a British
        Columbia company with offices at Suite 1020 - 800 West Pender Street,
        Vancouver, British Columbia, Canada, V6C 2V6, Fax: (1 604) 684-8092 ("Continental");
        and 

	 
	 (5)      	 Wang Zhi, a citizen the United States of
        America with an address at Apt. 116, 2205 BridgePointe Parkway, San Mateo,
        CA 94404, United States of America, Fax: (86 10) 6202 8274 ("WZ").
      

 WHEREAS, Leung Yuet Mei, Leung Chi Ming, Chen Yulin, the
  Company, Tian Yuan, Wang Zhi, CTVH, Hunter Dickinson Inc. and Continental
  have entered into a Option Agreement dated as of 23 December 2004 (the "Option
  Agreement"), pursuant to which the Company will issue, and Continental will
  purchase from Leung Yuet Mei, Leung Chi Ming and Chen Yulin shares of the Company
  representing 50% of the issued and outstanding Ordinary Shares of the Company,
  as set forth in the Option Agreement; 

 WHEREAS, upon the exercise of the first option under the Option
  Agreement, Continental will be a shareholder of the Company; 

 WHEREAS, the execution and delivery of this Agreement is a
  condition to the closing under the Option Agreement.

 NOW, THEREFORE, on the basis of the foregoing premises and
  the mutual agreements and covenants set
  forth in this Agreement, the parties hereto agree as follows: 

 SECTION 1 DEFINITIONS

	 1.1      	 Defined Terms. Unless otherwise defined herein,
        the following terms are defined as follows: 

	 
	 	 "Affiliate" shall mean in relation to an
        entity, any individual, partnership, corporation, trust or other entity
        that directly or indirectly controls, or is controlled by, or is under
      

 1

 

	 	common control with, such entity, where control means
        the direct or indirect ownership  of more than 50% of the outstanding
        shares or other ownership interests having  ordinary voting power
        to elect directors or the equivalent. The term Affiliate shall, in 
        relation to Continental, include Hunter Dickinson Inc, and any company
        directly or  indirectly controlled by Hunter Dickinson Inc., and
        in relation to CTVH, include any  company directly or indirectly
        controlled by Wang Zhi.

	 	 
	 	"Applicable Law" means with respect to any
        Person, any and all provisions of any constitution, treaty, statute, law,
        regulation, ordinance, code, rule, judgment, rule of common law, order,
        decree, award, injunction, judgment, Governmental Approval, concession,
        grant, franchise, license, agreement, directive, guideline, policy, requirement,
        or other governmental restriction or any similar form of decision of,
        or determination by, or any interpretation or administration of any of
        the foregoing by, any Governmental Authority, whether in effect as of
        the date hereof or thereafter and in each case as amended, applicable
        to such Person or its subsidiaries or their respective assets 

	 	 
	 	"Board" means the board of directors of the
        Company from time to time.  

	 	 
	 	"Business Day" shall mean any day (excluding
        Saturdays, Sundays and public holidays in Vancouver, Canada or PRC) on
        which banks generally are open for business in Vancouver, Canada, and
        PRC.

	 	 
	 	"CEO" means the chief executive officer of
        the Company, appointed in accordance with Section 10.1.

	 	 
	 	"Company Annual Budget" means, for any financial
        year, a budget for the Company's operations during such financial year
        prepared by the CEO in accordance with Section 7.

	 	 
	 	"Confidential Information" means:  

	 	 (a) 	 any information,
        data, samples or material concerning the Party supplying or disclosing
        such information or material including but not limited to information
        concerning such Party's business, financial condition, operations, technology,
        plans, research and development, assets or liabilities;

	 	  	 	 
	 	 (b) 	 any information
        or materials concerning any other entity or person in respect of which
        the disclosing Party is bound by obligations of confidentiality, as the
        disclosing Party identifies to any other Party (the "Recipient")
        from time to time; and

	 	  	 	 
	 	 (c) 	 the terms and
        conditions of this Agreement, the Option Agreement and all exhibits and
        schedules attached hereto and thereto. Confidential Information shall
        not include information that:

	 	  	 	 
		 	(i)  
	 was known by the Recipient prior to
        disclosure by the disclosing Party;  

	 	  	 	 
		 	(ii)  
	 is or becomes public knowledge other
        than through the Recipient's breach of Section 15.4 of this Agreement;
        or

 2

 

	 	 	 (iii)     
      
	 was obtained by the Recipient from a third party
        where the Recipient was not aware that the third party was under an obligation
        of confidentiality with respect to such information. 

	 	 	 	 
	 	"Consent" means any consent,
        approval, authorization, waiver, permit, grant, franchise, concession,
        agreement, license, exemption or order of, registration, certificate,
        declaration or filing with, or report or notice to, any Person, including
        any Governmental Authority. 

       "Continental" means Continental Minerals Corporation,
        a British Columbia company with offices at Suite 1020 - 800 West Pender
        Street, Vancouver, British Columbia, Canada, V6C 2V6.

       "Continental Exploration Program" means an annual
        exploration program and budget in relation to the Property submitted by
        Continental in accordance with Section 6.4. 

       "CTVH Exploration Program" means an annual exploration
        program and budget in relation to the Property submitted by CTVH in accordance
        with Section 6.5.

       "Director" means a member of the Board.

       "Encumbrance" means any lien, pledge, mortgage,
        deed of trust, security interest, claim, lease, charge, option, right
        of first refusal, transfer restriction, hypothecation, encumbrance or
        other security interest of any kind or nature whatsoever, or any agreement
        to give or make any of the foregoing. 

       "First Expenditure Period" means the period from
        the date of the Option Agreement to November 10, 2006. 

       "GAAP" means Canadian generally accepted accounting
        principles, consistently applied. 

       "General Manager" means the general manager of
        Tian Yuan, appointed in accordance with Section 10.2. 

       "Governmental Approvals" shall mean any action,
        order, authorization, consent, approval, license, lease, waiver, franchise,
        concession, agreement, license, ruling, permit, tariff, rate, certification,
        exemption of, filing or registration by or with, or report or notice to,
        any Governmental Authority. 

       "Governmental Authority" means any nation or
        government, any state or other political subdivision thereof, any entity
        exercising executive, legislative, judicial regulatory or administrative
        functions of or pertaining to any government with competent jurisdiction.

       "Group Company" means a Person (other than a
        natural person or an individual) that is controlled by the Company. 

3

 

	 	"Net Profits" for a particular financial year
        means the profits of the Company available for distribution in respect
        of that year to the shareholders of the Company, in accordance with GAAP,
        after deduction of operating expenses, applicable taxes, loan repayments
        and other costs and financial commitments, as well as, working capital
        and reserves either required by law or determined to be reasonable by
        the Board in order to provide for working capital or for environmental
        reclamation in relation to the Company, Group Companies and the Property.

       "Offered Ordinary Shares" shall mean the Ordinary
        Shares proposed to be Transferred by a Selling Shareholder. 

       "Ordinary Shares" means the Ordinary Shares of
        the Company, par value US$1.00, which shall be the only class of shares
        of the Company. 

       "Party" means a reference to either CTVH, the
        Company, Continental, Tian Yuan, a Group Company or WZ and "Parties"
        shall mean a reference to two or more of the foregoing. 

       "Permitted Transfer" means a transfer of shares
        by a Shareholder (i) that is not prohibited by the terms of this Agreement
        or any other agreement, instrument, or constitutional document, (ii) where
        the transferee has executed and delivered to the Company an Adherence
        Agreement substantially in the form attached hereto as Schedule A, assuming
        the obligations of the transferring Shareholder with respect to the transferred
        shares, and (iii) where the Company is given written notice at the time
        of such transfer stating the name and address of the transferee and identifying
        the shares of the Company that are being transferred. 

       "Person" means any individual, corporation, partnership,
        limited liability company, firm, joint venture, association, joint-stock
        company, trust, unincorporated organization, governmental body or other
        entity. 

       "PRC" means the People's Republic of China.

       "Property" means the Xietongmen Copper Property,
        which is located near Xiong Village, Xietongmen County, Rikaze area, Tibet
        Autonomous Region, the PRC. 

       "Restated Articles" means the Articles of Association
        of the Company, filed with the Registrar of Companies in British Virgin
        Islands as the same may be further amended from time to time after the
        date hereof in accordance with the terms hereof and the terms therein.
      

       "Restated Memorandum" means the Memorandum of
        Association of the Company dated June 18, 2004, filed with the Registrar
        of Companies in British Virgin Island as the same may be further amended
        from time to time after the date hereof in accordance with the terms hereof
        and the terms therein. 

       "Second Expenditure Period" means the period
        from November 10, 2006 to November 10, 2007. 

 4

 

	 	 "Shareholder" means CTVH, Continental
        and such other Person as may from time to time hold Ordinary Shares of
        the Company and have become a party to this Agreement in accordance with
        Section 15.5(b). 

	 
	 	 "Selling Shareholder" means the
        Shareholder that plans to sell, transfer, pledge or otherwise dispose
        of or permit the sale, transfer, pledge, or other disposition of any interest
        in any of its Ordinary Shares. 

	 
	 	 "Taxes" shall mean any domestic
        or foreign taxes, charges, fees, levies or other assessments, including
        any interest, penalties or additions relating thereto, imposed by any
        Governmental Authority or other taxing authority. 

	 
	 	 "Tian Yuan" shall mean Tibet Tian
        Yuan Minerals Exploration Ltd., a company incorporated under the law of
        the PRC, all of the shares of which are held by Company. 

	 
	 	 "Tian Yuan Annual Budget" means,
        for any financial year, a budget for the Company's operations during such
        financial year prepared by the General Manager in accordance with Section
        8. 

	 
	 	 "Tian Yuan Board" shall mean the
        Board of Directors of Tian Yuan. 

	 
	 	 "Transfer," "Transferring"
        (or any correlative term) shall mean a sale, assignment, pledge, gift,
        placement in trust (voting or otherwise) or transfer by operation of law
        of, or disposal (directly or indirectly and whether or not voluntary),
        and shall include any transfer by will or intestate succession. 

	 
	 	 "UNCITRAL Rules" means the Arbitration
        Rules of the United Nations Commission on International Trade Law. 

	 
	 	 "US$" means the legal currency
        of the United States. 

	 
	 	 "Warrantors" means the Company,
        Tian Yuan, CTVH and WZ. 

	 
	 1.2      	 Rules of Construction. Words such
        as "herein", "hereinafter", "hereto", "hereby"
        and "hereunder", when used with reference to this Agreement, refer
        to this Agreement as a whole, unless the context otherwise requires. The
        words "include", "includes", "included" and "including"
        shall be construed as if followed by the phrase "without being limited
        to." A reference to a particular gender means a reference to any gender.
      

	 
	 SECTION 2 BOARD MATTERS, CORPORATE GOVERNANCE
    
	 
	 2.1      	 Election of Directors to the Board.
      

	 
	 	 (a)     
      
	 The Board shall initially consist of six (6) Directors.
      

	 
	 	 (b)      
	 For so long as (1) Continental and CTVH are shareholders
        of the Company and the Company has no other shareholders and (2) Continental
        holds at least 50% of the outstanding Ordinary Shares: 

 5

 

	 	 	 (i)     
      
	 CTVH shall be entitled to designate three Directors
        and 

	 
	 	 	 (ii)      
	 Continental shall be entitled to designate three
        Directors. 

	 
	 	 (c)      	 If a party other than Continental and
        CTVH holds Ordinary Shares or Continental holds less than 50% of the outstanding
        Ordinary Shares, then the Board shall be reconstituted with a maximum
        of nine (9) Directors and each Shareholder shall be entitled to designate
        one Director for each full eleven percent (11%) of outstanding Ordinary
        Shares held by such Shareholder. 

	 
	 	 (d)      	 The Shareholders shall
        take all action (including, without limitation, voting the Ordinary Shares
        owned by each, calling extraordinary meetings of shareholders and executing
        and delivering written consents, and obtaining the resignation or removal
        of incumbent directors) necessary to elect the Directors designated by
        the Shareholders in accordance with the provisions of (b) and (c) of this
        Section 2.1, including amendments, if any, to the Restated Articles. 

	 
	 	 (e)      	 The Directors elected pursuant to this
        Section 2.1 shall be entitled to appoint alternates to serve at any meeting
        of the Board or of any committee thereto, and such alternates shall be
        permitted to attend all meetings of the Board or of any committee and
        vote on the Director's behalf. An alternate director, whilst acting in
        the place of a Director who appointed him or her, shall exercise and discharge
        all the duties and functions of the Director he or she represents. The
        appointment of an alternate director shall cease on the happening of any
        event which, if he or she were a Director, would cause him or her to cease
        to be a Director, or if a Director gives notice to the secretary of the
        Company that the alternate director representing him or her shall have
        ceased to represent such Director. 

	 
	 	 (f)      	 No Director shall be removed except by
        the affirmative vote of the Shareholder designating such Director, however
        the other Shareholders may remove a Director due to bad faith, willful
        misconduct, fraud, or a breach of the standards of behavior while in Tibet
        that may be reasonably expected to adversely affect Tibet's political
        stability or national harmony or to offend Tibet's customs and traditions,
        provided, however, that the Shareholder that designated such Director
        shall be entitled to designate the replacement of a Director so removed.
      

	 
	 	 (g)      	 Subject to Section 2.1(h), in the event
        of a deadlock amongst the Board, the Chairman of the Board shall have
        the casting vote. Continental shall have the right to appoint the Chairman
        of the Board, provided, however, that if Continental holds less than 50%
        of the outstanding Ordinary Shares, the Shareholder holding the largest
        percentage of outstanding Ordinary Shares in the Company shall have the
        right to appoint the Chairman of the Board. 

	 
	 	 (h)      	 In the event that Tian Yuan undertakes
        a CTVH Exploration Program, the following supplementary provisions shall
        apply: 

	 
	 	 	 (i)      
	 one of the Directors designated by CTVH, and not
        the Chairman of the Board, shall have a casting vote in respect of all
        matters relating to the CTVH Exploration Program for so long as the activities
        under the 

6

 

	 	 	  	CTVH Exploration Program are conducted in a good
        workmanlike, safe and efficient manner in accordance with sound mining
        and applicable industry standards and practice in China, including the
        issuance of shares by the Company to fund the CTVH Exploration Program;
        and 

	 
	 	 	 (ii)      
	 the Chairman of the Board shall have a casting vote
        on all other deadlocked matters, if any, excluding matters relating to
        the CTVH Exploration Program. 

	 
	 	 (i)      
	 Subject to the limitations in this Agreement,
        the Shareholders shall not take any action that may result in Continental
        not having control of the Board. 

	 
	 2.2      	 Election of Directors to Tian Yuan.
      

	 
	 	 (a)      
	 The Parties shall take such actions as
        shall be necessary to ensure that the Tian Yuan Board shall be the same
        size and include the same individuals as the Board from time to time.
      

	 
	 	 (b)      
	 The Parties shall procure that, to the
        extent permitted by relevant law, all corporate actions of Tian Yuan and
        any other direct or indirect subsidiary of the Company, shall follow the
        instruction of the Board, subject always to the approval requirement of
        Section 3. 

	 
	 2.3      	 Board Meetings. 

	 
	 	 (a)      
	 The Board shall appoint a secretary, who
        need not be a Director. The secretary shall, on the instructions of the
        Chairman of the Board, give the required notice to the Directors, shall
        duly record the minutes of all meetings of the Board and shall distribute
        such minutes to the Directors. The secretary shall certify in such minutes
        that proper notice of a meeting of the Board was given in accordance with
        this Section 2.3. 

	 
	 	 (b)      
	 Notice of each Board meeting shall be
        given at least twenty-one (21) days prior (exclusive of the day of receipt).
        The secretary shall send such notice together with a draft agenda for
        the meeting to all the Directors. The secretary shall at least fourteen
        (14) days prior to the meeting send to all the Directors the final agenda
        for the meeting, with such additions to the agenda a Director may have
        requested. The secretary shall also circulate minutes of each Board meeting
        to all the Directors within fourteen (14) days after the date of each
        such meeting. The Directors shall confirm in writing its receipt of the
        notice and agenda within seven (7) days upon its receipt of such notice.
      

	 
	 	 (c)      
	 Topics or proposals not listed in the
        final agenda set forth in Section 2.3(b) shall not be put to vote in the
        meeting of the directors, unless unanimously approved by all Directors
        of the Company, present or not. 

	 
	 	 (d)      
	 Board meetings shall be held at such times
        and at such places and in any such manner as the Directors may from time
        to time decide but shall be held at least semi-annually until such time
        as mine development work commences. Any Director shall have the right
        to convene a Board meeting at any time upon due notice.  

 7

	 	(e) 	The Board shall meet quarterly to discuss: 
    
	 	 	 	 
	 	 	(i)	the performance of the Company's business;  
	 	 	(ii) 	detailed management accounts prepared by the Company to show its results
      for the prior quarter for each Group Company and on a consolidated basis; 
    
	 	 	(iii) 	the Company's performance vis-à-vis the Company Annual Budget; 
    
	 	 	(iv)	personnel matters, including performance and retention issues; and 
    
	 	 	(v)	any other significant matters.  

	 (f)  	 Meetings of the Board and
        of any committee of the Board may be held by telephone or other electronic
        means whereby all persons participating in the meeting can hear each other.
        Directors may elect to attend any Board or committee meeting by such electronic
        means.

	  	 
	 (g)  	 For so long as (1) Continental
        and CTVH are shareholders of the Company and the Company has no other
        shareholders and (2) Continental holds 50% or more of the outstanding
        Ordinary Shares, a quorum of the Board or the Tian Yuan Board shall consist
        of four directors present in person or by alternate or proxy, at least
        two of whom shall be the directors designated by Continental. Quorum otherwise
        shall consist of a majority of directors present in person or by alternate
        or proxy, provided that (so long as such party has the right to designate
        a director) one of the directors constituting quorum shall be a director
        designated by CTVH and one of the directors constituting quorum shall
        be a director designated by Continental.

	  	 
	 2.4  	 Resolutions and Voting. 
      

	 	 
	 (a)  	 Except for matters required
        by law to be dealt with by the Company's shareholders and the restrictions
        contained in Section 3, the Restated Articles of the Company shall provide
        that all decisions of the Company shall be resolved by simple majority
        vote of the Board at a properly constituted meeting. In the event that
        a quorum for a meeting of the Board or Tian Yuan Board is not present
        within thirty (30) minutes after the time at which such meeting was to
        have commenced according to the terms of the notice convening such meeting,
        the meeting shall stand adjourned to a place, date, and time determined
        by the directors present, which date shall not be sooner than five (5)
        Business Days later. The directors not present shall forthwith be informed
        in writing of the adjournment of the meeting and the place, date and time
        for the resumption of the adjourned meeting. If by thirty (30) minutes
        after the time at which such resumed meeting was to have commenced a quorum
        is not present, the members of the Board or Tian Yuan Board then present
        shall constitute a quorum.

	  	 
	 (b)  	 The Board may adopt any
        resolution without a meeting if such resolution is signed by at least
        the number of directors required for a quorum at a Board meeting. Information
        supporting such resolution must be sent in written form to all of the
        directors then holding office and the resolution for signature must be
        sent to the directors no sooner than seven (7) days after the supporting
        information having been sent to the directors. 

 8

 

	(c) 	Directors nominated by Continental shall have no
        right to vote on the approval of the costing of the provision by Continental
        or an Affiliate of Continental of technical or other services to the Company
        or Group Companies as set out in the Company Annual Budget, except matters
        associated with the implementation of a Continental Exploration Budget.
      

	 	 
	(d) 	Directors nominated by CTVH shall have no right to
        vote on matters involving CTVH or an Affiliate of CTVH, excluding matters
        related to the subscription by CTVH or an Affiliate of CTVH for the issuance
        of Ordinary Shares of the Company and matters associated with the implementation
        of a CTVH Exploration Budget. 

	 2.5      	 Expenses. 

	 
	 	 The Company shall reimburse the Directors
        elected pursuant to Sections 2.1 and 2.2 for all reasonable expenses relating
        to all Board and Tian Yuan Board activities, including, without limitation,
        expenses or fees incurred in relation to attending the Board and Tian
        Yuan Board meetings or meetings of any committee. Directors expenses incurred
        shall form part of the expenditure in terms of the Continental Exploration
        Program or CTVH Exploration Program (as the case may be). 

	 
	 2.6      	 Committees. 

	 
	 	 2.6.1      
	 At such time as the Company engages in
        mining activities in relation to the Property, the Board shall establish
        committees in accordance with this Section 2.6 consisting of Directors
        of the Company to deal with matters delegated to such committees by the
        Board. 

	 
	 	 2.6.2      
	 Audit Committee. 

	 
	 	 	(a)
	 The audit committee, if any, shall consist of four
        (4) members, of which at least one member shall be a Director designated
        by CTVH as long as CTVH holds not less than twenty-five percent (25%)
        of the Ordinary Shares of the Company. A Director designated by the largest
        shareholder of the Company shall be the chairman of the audit committee.
        The chairman shall have a casting vote. 

	 
	 	 	(b)
	 The duties of the audit committee shall include:
      

	 	 	 	(i) 	recommending the selection of the external auditor
        to the Board; 

	 	 	 	 	 
	 	 	 	(ii)	reviewing the external audit plan;

	 	 	 	 	 
	 	 	 	(iii) 	evaluating the annual audited financial statements;
      

	 	 	 	 	 
	 	 	 	(iv)	overseeing the external audit process and audit results;
      

	 	 	 	 	 
	 	 	 	(v) 	monitoring the external auditor's independence; 

	 	 	 	 	 
	 	 	 	(vi) 	monitoring internal control over financial reporting;
      

 9

 

	 	 	 	(vii) 	overseeing the internal audit function; and 
	 	 	 	 	 
	 	 	 	(viii) 	evaluating interim financial statements and the external auditor's review
      of those statements. 

	 	 2.6.3      	 Management Committee. 

	 
	 	 	 (a)      
	 The management committee, if any, shall
        consist of four (4) members, of which at least one member shall be a Director
        designated by CTVH as long as CTVH holds not less than twenty-five percent
        (25%) of the Ordinary Shares in the Company. A Director designated by
        the largest shareholder of the Company shall be the chairman of the management
        committee. The chairman shall have a casting vote. 

	 
	 	 	 (b)      
	 The duties of the management committee
        shall include: 

	 
	 	 	 	 (i)     
      
	 reviewing the operations of the Company and Group
        Companies; 

	 
	 	 	 	 (ii)      
	 reviewing the detailed management accounts of the
        Company and Group Companies; and 

	 
	 	 	 	 (iii)      
	 reviewing the financial accounts of the Company
        and Group Companies 

	 
	 	 2.6.4      	 Compensation Committee. 

	 
	 	 	 (a)      
	 The compensation committee, if any, shall
        consist of four (4) members, of which at least one member shall be a Director
        designated by CTVH as long as CTVH holds not less than twenty-five percent
        (25%) of the Ordinary Shares of the Company. A Director designated by
        the largest shareholder of the Company shall be the chairman of the compensation
        committee. The chairman shall have a casting vote. 

	 
	 	 	 (b)      
	 The duties of the compensation committee
        shall include: 

	 
	 	 	 	 (i)      
	 determining remuneration policies; and 

	 
	 	 	 	 (ii)      
	 recommending the remuneration of senior officers,
        consultants and technical personnel of the Company and Group Companies
        to the Board. 

	 
	 	 2.6.5      	 Procedures for Committee Meetings.
      

	 
	 	 	 Meetings of each committee shall be held
        in accordance with the following procedures: 

	 
	 	 	 (a)      
	 Meetings of each committee shall be held
        no less often than every six months and at such places and in any such
        manner as the members of such committee may from time to time decide.
      

 10

 

	 	  	(b) 
	The quorum of the meeting of a committee shall be
        two members, and decisions shall be passed by simple majority. 

	 
	 	 	 (c)      
	 A resolution in writing circulated to all the members
        of a committee or their representatives and signed by all of the members
        or their representatives shall be as valid and effectual as if it had
        been passed at a duly held meeting of the committee. For such purposes,
        a signature sent by facsimile, or by email using a PDF file or some other
        similar electronic imaging software, shall be deemed a written signature.
      

	 
	 2.7      	 Director Information. 

	 
	 	 The Company shall furnish to each Director
        of the Board: 

	 
	 	 (a)      
	 promptly after the delivery thereof, all
        management letters of accountants relating to the Company or any Group
        Company; 

	 
	 	 (b)      
	 promptly upon any executive officer obtaining
        actual knowledge thereof and in any event promptly upon delivery or receipt
        by the Company or any Group Company of any notice relating thereto, written
        notification of: 

	 
	 	 	 (i)     
      
	 the occurrence of any default or breach under any
        material agreement to which the Company or any Group Company is a party;
        and 

	 
	 	 	 (ii)      
	 the commencement of any material legal or regulatory
        proceeding, action or investigation to which the Company or any Group
        Company is a party. 

	 
	 2.8      	 Officers. 

	 
	 	 Unless stated otherwise in this Agreement,
        the Board shall have the absolute right, in its sole discretion, to appoint
        or remove senior officers of the Company or any Group Company (other than
        the CEO), with or without cause, subject to all Applicable Laws. 

 SECTION 3 SHAREHOLDERS' MEETINGS

	 3.1      	 Quorum. 
	 
	 	 The quorum for meetings of the Shareholders of the
        Company shall be the presence of the duly authorized representative (whose
        authority shall be in writing) of each Shareholder at the commencement
        of the meeting. 

	 
	 3.2      	 Adjournment. 

	 
	 	 If a quorum is not present within thirty (30) minutes
        of the time at which a Shareholders' meeting should have commenced at
        which such meeting was to have commenced according to the terms of the
        notice convening such meeting, the meeting shall stand adjourned to a
        place, and a time and on a date not sooner than the fifth (5th )
        day following the date on which the meeting was adjourned, of which adjournment
        the 

 11

 

	 	 Shareholder not present shall forthwith
        be informed in writing of the meeting and the place, date and time for
        the resumption of the adjourned meeting. If within thirty (30) minutes
        after the time to which the meeting was adjourned as aforesaid, the quorum
        is still not present, the Shareholders then present shall constitute a
        quorum. 

	 
	 3.3      	 Actions Requiring Special Consent.
      

	 
	 	 Notwithstanding anything herein that may
        be to the contrary, each of the Shareholders undertakes to each other
        that it shall exercise all its powers in relation to the Company so as
        to procure (insofar as it is able) that, in addition to any other approvals
        required by Applicable Law, the Restated Memorandum and the Restated Articles
        or any equivalent organizational documents of any Group Company, the following
        matters shall not be effected in relation to the Company or any Group
        Company, without the unanimous consent of the Shareholders: 

	 
	 	 (a)     
      
	 the amendment, alteration, or repeal of any provision
        of the Restated Memorandum or Restated Articles, or the constitutional
        documents of any Group Company; 

	 
	 	 (b)      
	 any alteration or reorganization of the share capital
        or registered capital of the Company or any Group Company, including,
        without limitation, reduction, consolidation, subdivision or conversion
        thereof, or the rights in respect of any share capital, but excluding
        any increase in the share capital; 

	 
	 	 (c)      
	 except as provided herein, the payment or declaration
        of a distribution or dividend, including, without limitation, the redemption
        or repurchase of any such capital shares; 

	 
	 	 (d)      
	 any issuance of capital share of the Company in
        class other than Ordinary Shares; 

	 
	 	 (e)      
	 the merger, amalgamation or consolidation of the
        Company or any Group Company with any Person, or the sale, lease, exchange,
        transfer, contribution, Encumbrance or other disposition of all or substantially
        all of the consolidated assets of the Company or any Group Company (whether
        in an individual transaction or a series of related transactions), or
        the purchase or other acquisition of all or substantially all of the assets
        of another Person, or the reorganization of the Company or any Group Company;
      

	 
	 	 (f)      
	 any voluntary dissolution, winding-up or liquidation
        of the Company or any Group Company; 

	 
	 	 (g)      
	 except as provided herein, any increase or decrease
        in the size of the Board or the board of directors or similar governing
        body of any Group Company; 

	 
	 	 (h)      
	 any major corporate or financial commitment, expenditure
        or cash disbursement on the part of the Company or any Group Company that
        could result in a variance from the Company Annual Budget of greater than
        twenty percent (20%); 

 12

 

	 	 (i)     
      
	 the giving of any guarantee or indemnity
        by the Company or any Group Company regarding or in connection with any
        borrowing, other than borrowings by the Company or a Group Company in
        the normal course of business; 

	 
	 	 (j)      
	 any change in accounting principles of
        the Company or any Group Company, except as required by the Applicable
        Law; 

	 
	 	 (k)      
	 the creation of any Encumbrance (other
        than those created by operation of law) with respect to assets of the
        Company or any Group Company, other than in the normal course of business;
        and 

	 
	 	 (l)      
	 the consideration of and, as may be appropriate,
        the approval of any material diversification or investment, or a change
        of business, subject to the appropriate governmental approvals (if required).
      

	 
	 SECTION 4 RESTRICTIONS
        ON TRANSFER OF ORDINARY SHARES 

	 
	 4.1      	 Legends. 

	 
	 	 Each certificate representing Ordinary
        Shares of the Company shall be stamped or otherwise imprinted with a legend
        in substantially the following form in the English language pursuant to
        this Agreement: 

	 
	 	  	"THE SALE, PLEDGE, HYPOTHECATION, ASSIGNMENT
        OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT
        TO THE TERMS AND CONDITIONS OF A CERTAIN SHAREHOLDERS AGREEMENT BY AND
        AMONG THE COMPANY AND CERTAIN SHAREHOLDERS OF THE COMPANY. COPIES OF THE
        SHAREHOLDERS AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY
        OF THE COMPANY." 

	 
	 4.2      	 Right of First Refusal. 

	 
	 	 (a)      
	 Parties’ Respective Rights of
        First Refusal. 

	 
	 	 	 (i)     
      
	 Continental shall have the right to Transfer its
        Ordinary Shares provided that the other Shareholders then holding Ordinary
        Shares have first been offered the Ordinary Shares on the same terms as
        Continental proposes to accept in accordance with this Section 4.2. Any
        Transfer of Ordinary Shares to an Affiliate of Continental shall not require
        Continental to first offer the Ordinary Shares to be Transferred to the
        Other Shareholders. 

	 
	 	 	 (ii)      
	 Each Shareholder other than Continental shall have
        the right to Transfer its Ordinary Shares in the Company provided that
        such Shareholder has first offered Continental the Ordinary Shares on
        the same terms as the Shareholder that is selling proposes to accept in
        accordance with this Section 4.2. Any Transfer of Ordinary Shares to an
        Affiliate of CTVH shall not require CTVH to first offer the Ordinary Shares
        to be Transferred to Continental. 

 13

 

	 	 	 (iii)   
          
	 The transferee in relation to a Transfer permitted
        under this Section 4.2 shall execute and deliver to the Company an Adherence
        Agreement substantially in the form attached hereto as Schedule A, assuming
        the obligations of the transferring Shareholder with respect to the transferred
        shares. 

	 
	 	 (b)      	 Transfer Notice. 

	 
	 	 	 Each Shareholder agrees that if at any
        time it plans to Transfer any of its Offered Ordinary Shares, then such
        Selling Shareholder shall give the Shareholder having a right of first
        refusal in relation to the Offered Ordinary Shares in accordance with
        Section 4.2(a) (the "RFR Shareholders") a written notice of its
        intention to make such Transfer ("First Transfer Notice"), which
        such First Transfer Notice shall include: 

	 
	 	 	 (i)      
	 the number of Offered Ordinary Shares; 

	 
	 	 	 (ii)      
	 the identity of the prospective transferee(s); and
      

	 
	 	 	 (iii)      
	 the consideration and the material terms and conditions
        upon which the proposed Transfer is to be made. 

	 
	 	 	 The First Transfer Notice shall certify
        that such Selling Shareholder has received a firm offer from a third party
        transferee(s) and in good faith believes a binding agreement for the Transfer
        is obtainable on the terms set forth in the First Transfer Notice. The
        First Transfer Notice shall also include a copy of any written proposal,
        term sheet or letter of intent or other agreement relating to the proposed
        Transfer. 

	 
	 	 (c)      	 Purchase Notice. 

	 
	 	 	 Within thirty (30) days following the
        receipt of the First Transfer Notice (subject to extension as provided
        in Sections 4.2(d)(iii) and 4.2(d)(iv)), RFR Shareholders may exercise
        their right of first refusal by giving notice, pursuant to Sections 4.2(d),
        to the Selling Shareholder ("Purchase Notice"), with a copy to
        the Company. If an RFR Shareholder fails to deliver the Purchase Notice
        within thirty (30) days following the receipt of a First Transfer Notice,
        it may not exercise its right of first refusal in such Transfer. 

	 
	 	 (d)      	 RFR Shareholders' Right of First Refusal.
      

	 
	 	 	 (i)      
	 If an RFR Shareholder elects to exercise its right
        of first refusal, its Purchase Notice shall set forth the number of Offered
        Ordinary Shares such Remaining Shareholder wishes to purchase, subject
        to a maximum of its right of first refusal pro rata amount, calculated
        immediately prior to the time of the purchase hereunder from the Selling
        Shareholder. 

 14

 

	 	 	 (ii)      	 Immediately following the expiration of the thirty
        (30) day period referred to in Section 4.2(c) above, the Selling Shareholder
        shall send out a second notice ("Second Transfer Notice") to each
        RFR Shareholder that exercised its right of first refusal regarding the
        First Transfer Notice ("Purchasing Shareholder"), with a copy to
        the Company, setting forth the number of shares that remain unpurchased
        from the First Transfer Notice ("Remaining Shares"). Each Purchasing
        Shareholder shall have fifteen (15) Business Days from the date of receipt
        of the Second Transfer Notice to purchase up to that portion of the Remaining
        Shares equal to the proportion that the number of Ordinary Shares held
        by such Purchasing Shareholder bears to the total number of Ordinary Shares
        held by all Purchasing Shareholders who wish to purchase the Remaining
        Shares by giving Notice to the Selling Shareholder ("Second Purchase
        Notice"). 

	 
	 	 	 (iii)      	 Should any Shareholder be wound-up, liquidated,
        placed under judicial management, whether provisionally or finally and
        whether voluntarily or compulsorily (other than for the purposes of a
        reconstruction or amalgamation) then the Shareholder shall be deemed,
        on the day immediately preceding the occurrence of such event, to have
        offered all its Ordinary Shares in the Company to the other Shareholders,
        and the price per Ordinary Share shall be the greater of the original
        subscription price paid by the Selling Shareholder for such Offered Ordinary
        Shares (appropriately adjusted for share splits, share dividends, combinations
        and the like) or the fair market value of such Offered Ordinary Shares,
        which shall be a price determined in good faith by the Board reflecting
        the current value of the Offered Ordinary Shares in view of the present
        earnings and future prospects of the Company, determined within thirty
        (30) days after receipt by the RFR Shareholders of the First Transfer
        Notice. In the event that the Selling Shareholder or his or her executor
        disagrees with such valuation as determined by the Board, the Selling
        Shareholder or his or her executor shall be entitled to have the valuation
        determined by an independent appraiser to be mutually agreed upon by the
        RFR Shareholders and the Selling Shareholder or his or her executor, the
        fees of which appraiser shall be borne by the Selling Shareholder or his
        or her estate. The thirty (30) day period specified in Section 4.2(c)
        shall be extended to the fifth (5th ) Business Day after a
        valuation pursuant to this Section 4.2(d)(iii) has been determined to
        be final and binding. 

	 
	 	 	 (iv)      	 In the event the consideration for the Offered Shares
        specified in a First Transfer Notice is payable in property other than
        cash and the Selling Shareholder and the RFR Shareholders who wish to
        purchase the Offered Shares (acting together) cannot agree on the cash
        value of such property within thirty (30) days after such RFR Shareholders'
        receipt of the First Transfer Notice, the value of such property shall
        be determined by an independent appraiser to be mutually agreed upon by
        the Selling Shareholder and such RFR Shareholders (acting together) within
        one month from its appointment, and such determination shall be final
        and binding on the Selling Shareholder and such RFR Shareholders. The
      

 15

 

	 	 	  	cost of such appraisal shall be paid by the Shareholders
        whose value is the furthest away from the value determined by the independent
        appraiser. The thirty (30) day period specified in Section 8.1(c) shall
        be extended to the fifth (5th ) Business Day after a valuation
        pursuant to this Section 8.1(d)(iv) has been determined to be final and
        binding. 

	 
	 	 	 (v)      
	 The exercise (whether in full or in part) or non-exercise
        of any right of first refusal by any Remaining Shareholder to purchase
        or participate in one or more proposals to Transfer any Offered Ordinary
        Shares shall not adversely affect its rights to purchase or participate
        in subsequent Transfers of Offered Ordinary Shares. 

	 
	 	 	 (vi)      
	 Notwithstanding any rights or rights of first refusal
        in this Section 4.2, in the event the RFR Shareholders do not purchase
        all of the offered Ordinary Shares that remain available in the Second
        Transfer Notice, the Selling Shareholder may cancel all sales to RFR Shareholders
        and Transfer all of the Offered Ordinary Shares to the third party transferee(s)
        on the terms set forth in the First Transfer Notice. 

	 
	 4.3      	 Non-Exercise of Rights. 

	 
	 	 Completion of the Transfer of the Offered
        Ordinary Shares to the third party transferee(s) set forth in the First
        Transfer Notice (and if applicable, the Purchasing Shareholders) shall
        occur no later than the later of (i) thirty (30) days after the receipt
        of the Second Transfer Notice or (ii) the determination of the value of
        the shares by an independent appraiser pursuant to Sections 4.2(d)(iii)
        and 4.2(d)(iv). If no RFR Shareholder elects to exercise the right of
        first refusal, all but not less than all Offered Ordinary Shares may be
        transferred in accordance with the First Transfer Notice. The Selling
        Shareholder shall procure, as a condition of the effectiveness of the
        Transfer of the Offered Ordinary Shares, that the third party transferee(s)
        assume the obligations of the Selling Shareholder under this Agreement
        by executing and delivering to the Company an Adherence Agreement substantially
        in the form attached hereto as Schedule A. Unless written consent
        of each RFR Shareholder is obtained, if such Transfer is not completed
        within the time period prescribed in this Section 4.3, or if any proposed
        terms or conditions with respect to the Transfer of the Offered Shares
        become more favorable to the proposed purchaser than those set forth in
        the First Transfer Notice, then such proposed Transfer shall again be
        subject to the right of first refusal, and the procedures in connection
        therewith, set forth in Section 4.2. 

	 
	 4.4      	 Disclosure to Proposed Transferees.
      

	 
	 	 Each holder of Ordinary Shares shall be
        entitled to disclose to any third party transferee(s) of Ordinary Shares
        any information, documents, or materials concerning the Company and Group
        Companies known to or in the possession of such holder, and the Company
        shall provide any assistance or cooperation reasonably requested by such
        holder or any third party transferee in connection with such third party
        transferee's due diligence investigation of the Company subject to appropriate
        nondisclosure arrangements. 

 16

 SECTION 5 NPI PAYMENT RIGHTS

	 5.1      	 The Shareholders of the Company will be
        entitled to share in dividends of the Company and in the distribution
        of net proceeds upon a liquidation of the assets of Company according
        to their respective shareholdings in the Company, provided that if the
        shareholding in the Company in aggregate held by either CTVH or Continental,
        and only CTVH or Continental (as the case may be), (such party a "Selecting
        Shareholder") falls below 15%, then the Selecting Shareholder will
        have an once-off option, exercisable by notice to the other Shareholder,
        no later than 30 days after its aggregated shareholding falls below the
        aforementioned 15%, to: 

	 
	 	 (a)      
	 continue to hold its Ordinary Shares to
        be entitled to receive its share of dividends of the Company according
        to its shareholding and to be liable to make equity contributions according
        to its shareholding in accordance with Section 9; or 

	 
	 	 (b)      
	 to the extent permitted by law, redeem
        its Ordinary Shares in exchange for an annual payment, payable ninety
        (90) days after the financial year end of the Company or the date that
        the Company distributes dividends to its shareholders, whichever date
        is the later, (a "BVI NPI Payment") in respect of each financial
        year of the Company following the date of redemption, calculated at a
        fixed rate of 12.5% of the Net Profits, which BVI NPI Payments shall be
        subject to the following provisions: 

	 
	 	 	 (i)     
      
	 subject to subclauses (ii), (iii) below, BVI NPI
        Payments will not accrue or be payable to the Selecting Shareholder until
        after the other Shareholder or Shareholders (as the case may be) have
        recovered through their receipt of dividends from the Company all of their
        "BVI Excess Investment" (as defined below); 

	 
	 	 	 (ii)      
	 in respect of any financial year before BVI NPI
        Payments have accrued and become payable in accordance with subclause
        (i) above, and provided that in any event that the Company has BVI Net
        Profits of no less than US$2 million, the Selecting Shareholder shall
        be entitled to a fixed interim payment of US$250,000; 

	 
	 	 	 (iii)      
	 once BVI NPI Payments have accrued and become payable
        in accordance with subclauses (i) and (ii) above, then the first US$250,000
        of the BVI NPI Payments for each year shall be paid to the Selecting Shareholder,
        and the remaining amounts accrued, on an aggregated basis, shall be reduced
        by the amount of any interim payments the Selecting Shareholder has received
        in accordance with subclause (ii) above until all such previously paid
        fixed interim amounts have been accounted for as a credit to the amounts
        otherwise due to the Selecting Shareholder; and 

	 
	 	 	 (iv)      
	 the Company shall provide the Selecting Shareholder
        with an audit certificate evidencing the calculation of the BVI NPI Payment
        for that year. 

	 
	 5.2      	 The term "BVI Excess Investment"
        means all loan and equity capital invested, provided and or contributed
        to the Company by the other Shareholders, as well as any 

 17

 

	 	 additional investment not accounted for in such loan or equity capital
      and made by the other Shareholders in relation to the Company, Group Companies
      and the Property directly or indirectly under the terms hereof and not otherwise
      accounted for as part of the Company's loan or equity capital after the
      point at which the shareholding of the Selecting Shareholder falls below
      15% of the total shareholders equity capital, plus interest on such funds
      at the interest rate published calculated in accordance with the prime overdraft
      rate charged by the Bank of Montreal, Canada to its corporate customers.
    
	 
	 5.3      	 The Parties will enter into a Net Profits Agreement concurrently with
      such Shareholders exercising their option to receive the Net Profits, in
      a form satisfactory to the other Shareholders. An example of the calculations
      above is attached as Schedule B. 

 SECTION 6 EXPLORATION BUDGETS

	 6.1      	 Business. 

	 
	 	 The business of the Group Companies shall be the
        exploration for minerals on and under the Property, the compilation of
        a bankable feasibility study on exploiting the minerals on and under the
        Property, and the mining and beneficiation of the minerals on and under
        the Property. 

	 
	 6.2      	 Exploration Programs and Budgets. 

	 
	 	 The Company and Group Companies' exploration operations
        shall be conducted, expenses shall be incurred, and assets shall be acquired
        only pursuant to an approved exploration program and budget. The Parties
        undertake to set the term of each exploration program and budget so that
        the program runs over the same period as the Company's financial year
        after completion of the First Expenditure Period or the Second Expenditure
        Period (as the case may be). 

	 
	 6.3      	 Preparation of Exploration Programs and Budgets.
      

	 	 (a)      	 Continental shall prepare "the Continental Exploration
        Program" and submit its Continental Exploration Program to each Director
        no later than forty-five (45) days after the end of the existing Continental
        Exploration Program, for the Directors' review and adoption in accordance
        with Section 6.4. 

	 
	 	 (b)      	 The annual expenditure under a Continental Exploration
        Program shall be at least US$1,000,000, except that if the expenditure
        under the previous Continental Exploration Program exceeded the budgeted
        expenditure amount, then the excess amount (“Excess Amount”)
        shall be credited toward such minimum US$1,000,000 budgeted annual
        expenditure for the subsequent Continental Exploration Program. In the
        event that the budgeted expenditure for a Continental Exploration Program
        is less than US$1,000,000, then the shortfall shall nonetheless be
        budgeted for and Continental shall in any case invest no less than US$1,000,000
        in Ordinary Shares of the Company except in the event where there is an
        Excess Amount in which event the amount invested by Continual shall be
        no less than the difference between US$1,000,000 and the 

 18

 

	 	  	Excess Amount. Any amounts so invested shall be first
        used to fund expenditure under a subsequent Continental Exploration Program.
      

	 
	 	 (c)      
	 Continental may elect to provide suitable engineering
        expertise to the Company and Tian Yuan, charged at the market rates contemplated
        under the terms of the Continental Exploration Program approved by the
        Board, and the Company and Tian Yuan shall engage personnel recommended
        by Continental to operate all the engineering programs. Continental may
        elect to have the costs of such provision of expertise be either (i) reimbursed
        to it by Tian Yuan or (ii) credited as Continental's expenditure incurred
        in relation to the Property. The costing of such services shall be approved
        as a separate budget item in accordance with Section 2.3. This Section
        shall apply mutatis mutandis to CTVH if it proposes a CTVH Exploration
        Program. 

	 
	 6.4      	 Review and Adoption of Proposed Programs.
      

	 
	 	 (a)      
	 Within fourteen (14) days of receipt of a proposed
        Continental Exploration Program, each Director shall provide their comments
        or proposed modifications to the proposed Continental Exploration Program,
        if any, to Continental. Failure to provide comments or modifications shall
        not preclude a Director from voting for or against the adoption of a Continental
        Exploration Program. 

	 
	 	 (b)      
	 No earlier than fourteen (14) days, but no later
        than twenty-eight (28) days after submitting the proposed Continental
        Exploration Program to the Directors, Continental shall submit the Continental
        Exploration Program, as amended in his sole discretion to take account
        of Directors' comments and proposed modifications, to the Board. 

	 
	 	 (c)      
	 Within fourteen (14) days after receipt of the Continental
        Exploration Program, the Board and the Tian Yuan Board shall convene in
        accordance with Sections 2.3 and 2.4 for the purpose of reviewing and
        voting upon the Continental Exploration Program. The Board shall give
        its written notice to all Shareholders as to whether it has approved or
        rejected the Continental Exploration Program. In the event that the Board
        approves the Continental Exploration Program with the exception of the
        budget items relating to services to be rendered by a Shareholder or its
        Affiliates to the Company or a Group Company, the CEO will be entitled
        to continue the operations of the Company in accordance with such Continental
        Exploration Program excluding the unapproved budget items and the Shareholders
        will meet to resolve the outstanding budgetary items. Until such time
        that the Shareholders resolve the outstanding budgetary items, the CEO
        shall be entitled to incur expenditures for those items up to the limit
        approved for those items under the previous Continental Exploration Program
        having been approved by the Board. 

	 
	 	 (d)      
	 If the Board rejects the Continental Exploration
        Program, the Shareholders shall meet within fourteen (14) days in order
        to determine a new exploration program and budget and in the event that
        the Shareholders are unable to agree on a new exploration program and
        budget within twenty -eight (28) days of the Board rejecting the Continental
        Exploration Program, the matter shall be referred for arbitration in terms
        of Section 15.10. 

 19

 

	 	 (e)     
      
	 Notwithstanding the foregoing, any Continental Exploration
        Program may be approved and adopted by the unanimous written consent of
        the Board. 

	 
	 6.5      
	 In the event that Continental fails to
        submit or fund a Continental Exploration Program in accordance with Section
        6.3 upon expiry of the First Expenditure Period (or if Continental exercises
        the Second Option (as defined in the Option Agreement), then upon expiry
        of the Second Expenditure Period), CTVH shall be entitled to submit the
        CTVH Exploration Program no later than sixty (60) days after the end of
        the existing exploration program and budget to the Board for approval
        and Continental undertakes that it will approve and Continental will cause
        the directors it designated to approve the CTVH Exploration Program if
        it is in accordance with sound mining and applicable industry standards
        and practices in China. 

	 
	 6.6      
	 In the event that Continental: 

	 
	 	 (a)      
	 does not elect to fund the CTVH Exploration Program;
      

	 
	 	 (b)      
	 elects to fund less than US$1,000,000 of the
        funding required under the terms of the CTVH Exploration Program; or 

	 
	 	 (c)      
	 elects to fund less than its pro rata share of the
        CTVH Exploration Program if that is less than US$1,000,000. 

	 
	 	 then CTVH shall be entitled to implement
        its proposed exploration program according to the CTVH Exploration Program
        and CTVH may elect to assume the operatorship, management and administration
        of the CTVH Exploration Program. In the event that Tian Yuan undertakes
        a CTVH Exploration Program, the Board voting procedures as set out in
        Section 2.1(h) will apply. 

	 
	 6.7      
	 In the event that Continental submits
        a Continental Exploration Program in any period during which CTVH has
        assumed the operatorship, management and administration under a CTVH Exploration
        Program, the operatorship, management and administration of the exploration
        program and budget under the Continental Exploration Program following
        the expiration of the CTVH Exploration Program shall revert to Continental
        and Continental shall have a casting vote for all matters before the Board
        so long as Continental holds 50% or more of the shares of the Company.
      

	 
	 6.8      
	 The provisions of Section 6.3 will apply
        mutatis mutandis to CTVH and the provisions of 6.5 will apply mutatis
        mutandis to Continental if CTVH's shareholding rises above 50%. 

	 
	 6.9      
	 Program Review. 

	 
	 	 The progress of each Continental Exploration
        Program and each CTVH Exploration Program adopted by the Board shall be
        reviewed at least quarterly at meetings of the Board. 

 20

 SECTION 7 COMPANY ANNUAL BUDGETS

	 7.1      	 Company Annual Budgets. 

	 
	 	 The Company's operations shall be conducted,
        expenses shall be incurred, and assets shall be acquired only pursuant
        to an approved annual budget which shall include on a consolidated basis
        the Tian Yuan Annual Budget approved in terms of Section 8 or the Continental
        Exploration Budget or CTVH Exploration Budget (as the case may be) approved
        in terms of Section 6. The annual budget shall include a two-year rolling
        forecast. 

	 
	 7.2      	 Preparation of the Company Annual Budget.
      

	 
	 	 The CEO shall on an annual basis prepare
        and submit a proposed Company Annual Budget to each Director no later
        than forty-five (45) days before the end of the current financial year,
        for the Directors' review in accordance with Section 7.3. The provision
        of services by a Shareholder or its Affiliates to the Company or a Group
        Company and the costing of such services shall be approved as separate
        budget items in accordance with Section 2.3. 

	 
	 7.3      	 Review and Adoption of Company Annual
        Budget. 

	 
	 	 (a)     
      
	 Within fourteen (14) days of receipt of a proposed
        Company Annual Budget, each Director shall provide their comments or proposed
        modifications to the proposed Company Annual Budget, if any, to the CEO.
        Failure to provide comments or modifications shall not preclude a Director
        from voting for or against the adoption of a Company Annual Budget. 

	 
	 	 (b)      
	 No earlier than fourteen (14) days, but no later
        than twenty -eight (28) days after submitting the proposed Company Annual
        Budget to the Directors, the CEO shall submit the Company Annual Budget,
        as amended in his sole discretion to take account of Directors' comments
        and proposed modifications, to the Board. 

	 
	 	 (c)      
	 Within fourteen (14) days after receipt of the Company
        Annual Budget, the Board shall convene for the purpose of reviewing and
        voting upon the Company Annual Budget. The Board shall give written notice
        to all Shareholders as to whether it has approved or rejected the Company
        Annual Budget. In the event that the Board approves the Company Annual
        Budget with the exception of the budget items relating to services to
        be rendered by a Shareholder or its Affiliates to the Company or a Group
        Company, the CEO will be entitled to continue the operations of the Company
        in terms of the Company Annual Budget, excluding the unapproved budgetary
        items, and the Shareholders will meet to resolve the outstanding budgetary
        item. The CEO may incur expenditure for unapproved budget items if such
        budget items were approved in the previous year's Company Annual Budget
        having been approved by the Board. 

	 
	 	 (d)      
	 If the Board rejects the Company Annual Budget,
        the Shareholders shall meet within fourteen (14) days in order to determine
        a new Company Annual Budget 

 21

 

	 	 	and in the event that the Shareholders are unable
        to agree on a new Company Annual Budget within twenty -eight (28) days
        of the Board rejecting the Company Annual Budget, the CEO shall be entitled
        to operate the Group Companies under the terms of the then existing approved
        Company Annual Budget until such time as the Board approves a new Company
        Annual Budget.

SECTION 8 TIAN YUAN ANNUAL BUDGETS

	 8.1      	 Tian Yuan Annual Budgets. 
	 
	 	 Tian Yuan's operations shall be conducted, expenses shall be incurred,
      and assets shall be acquired only pursuant to an approved annual budget.
      During the period that the Company operates under either a Continental Exploration
      Program or a CTVH Exploration Program (as the case may be), the Continental
      Exploration Program or a CTVH Exploration Program (as the case may be) shall
      be the deemed to be the Tian Yuan Annual Budget. The annual budget shall
      include a two year rolling forecast. 
	 
	 8.2      	 Preparation of the Tian Yuan Annual Budget. 
	 
	 	 The General Manager shall on an annual basis prepare and submit a Tian
      Yuan Annual Budget to each Tian Yuan Director no later than sixty (60) days
      before the end of the current financial year, for the Tian Yuan Directors'
      review in accordance with Section 8.3. Continental may elect to provide
      suitable engineering expertise, charged at market related rates, as agreed
      in terms of the annual exploration budget and program approved by the Board,
      to the Company and Tian Yuan, and the Company and Tian Yuan shall engage
      personnel recommended by Continental to operate such engineering programs.
      Continental may elect to have the costs of such provision of expertise be
      either (i) reimbursed to it by Tian Yuan or (ii) credited as Continental's
      expenditure incurred in relation to the Property. The costing for such services
      shall be approved as separate budget items in accordance with Section 2.3.
      This Section 8.2 shall apply mutatis mutandis to CTVH if it proposes a CTVH
      Exploration Program. 
	 
	 8.3      	 Review and Adoption of Tian Yuan Annual Budget. 

	 	(a) 	Within fourteen (14) days of receipt of a proposed
        Tian Yuan Annual Budget, each Tian Yuan Director shall provide their comments
        or proposed modifications to the proposed Tian Yuan Annual Budget, if
        any, to the General Manager. Failure to provide comments or modifications
        shall not preclude a Tian Yuan Director from voting for or against the
        adoption of a Tian Yuan Annual Budget. 

	 	 	 
	 	(b) 	No earlier than fourteen (14) days, but no later
        than twenty -eight (28) days after submitting the proposed Tian Yuan Annual
        Budget to the Tian Yuan Directors, the General Manager shall submit the
        Tian Yuan Annual Budget, as amended in his sole discretion to take account
        of the Tian Yuan Directors' comments and proposed modifications, to the
        Tian Yuan Board. 

	 	 	 
	 	(c)	 Within fourteen (14) days after receipt of the Tian
        Yuan Annual Budget, the Tian Yuan Board shall convene for the purpose
        of reviewing and voting upon 

 22

 

	 	 	 the Tian Yuan Annual Budget. In the event that the
        Board approves the Tian Yuan Annual Budget with the exception of the budget
        items relating to services to be rendered by a Shareholder or its Affiliates
        to the Company or a Group Company, the General Manager will be entitled
        to continue the operations of the Company in terms of the Tian Yuan Annual
        Budget and the Shareholders will meet to resolve the outstanding budgetary
        item. The General Manager may incur expenditure for unapproved budget
        items up to the limit approved for such items in the previous year's Tian
        Yuan Annual Budget having been approved by the Tian Yuan Board. 

	 
	 	 (d)      	 If the Tian Yuan Board rejects the Tian Yuan Annual
        Budget, the Shareholders shall meet within fourteen (14) days in order
        to determine a new Tian Yuan Annual Budget and in the event that the Shareholders
        are unable to agree on a new Tian Yuan Annual Budget within twenty -eight
        (28) days of the Tian Yuan Board rejecting the Tian Yuan Annual Budget,
        the General Manager shall be entitled to operate Tian Yuan under the terms
        of the then existing approved Tian Yuan Annual Budget until such time
        as the Tian Yuan Board approves a new Tian Yuan Annual Budget 

 SECTION 9 FUNDING OF THE COMPANY

	 9.1      	 Continental having completed its investment into
        the Company in connection with the First Option or Second Option (as the
        case may be) as provided in the Option Agreement, the Board may from time
        to time by simple majority resolution determine that the Company requires
        additional funding in accordance with a Company Annual Budget having been
        approved by the Board. The then Shareholders of Company shall have first
        right to supply such additional funding. 

	 
	 9.2      	 In the event that the Board determines by simple
        majority resolution that the Company requires additional funding in accordance
        with the terms of an approved Company Annual Budget, the Shareholders
        shall agree to make either equity contributions or shareholders loans
        to Company. If the Shareholders cannot reach agreement on the form of
        funding, the funding will be in the form of shareholders equity and the
        Company shall undertake an issuance of Ordinary Shares to permit such
        funding. 

	 
	 9.3      	 Pre-emptive Right. 

	 
	 	 The Company hereby grants to each Shareholder a
        right of first refusal to subscribe for its pro rata share of any such
        increase in shareholders equity capital that the Company may, from time
        to time, propose. A Shareholder's "pro rata share", for purposes
        of this pre-emptive right, shall be determined according to the number
        of Ordinary Shares owned by such Shareholder immediately prior to the
        issuance of the Ordinary Shares in relation to the total number of Ordinary
        Shares outstanding immediately prior to the issuance of the Ordinary Shares.
        Each Shareholder shall have a right of over-allotment such that, if any
        Shareholder fails to exercise its right hereunder to subscribe for its
        pro rata share of the increase in shareholders equity capital, the other
        Shareholders may subscribe for the non-subscribing Shareholder's portion
        on a pro rata basis in accordance with Section 9.4 below. 

 23

 

	 9.4      	 Issuing Of Ordinary Shares: Procedures.
      

	 
	 	 (a)     
      
	 First Participation Notice. 

	 
	 	 	 In the event that the Company proposes to undertake
        an issuance of Ordinary Shares, it shall give to each Shareholder Notice
        indicating its intention to issue Ordinary Shares, describing the amount
        of shareholders' equity that the Company proposes to raise and the general
        terms upon which the Company proposes to issue such Ordinary Shares ("First
        Participation Notice"). Each Shareholder shall have thirty (30) Business
        Days from the date of receipt of any such First Participation Notice to
        agree in writing to subscribe for such Shareholder's pro rata share of
        such shareholders equity upon the terms and conditions specified in the
        First Participation Notice by giving written notice to the Company and
        stating in such notice the quantity of shareholders equity to be subscribed
        for (not to exceed such Shareholder's pro rata share). If any Shareholder
        fails to so agree in writing within such thirty (30) Business Day period
        to subscribe for such Shareholder's full pro rata share of the shareholders'
        equity, then such Shareholder shall forfeit the right hereunder to subscribe
        for that part of its pro rata share of such shareholders equity that it
        did not so agree to subscribe. 

	 
	 	 (b)      
	 Second Participation Notice; Oversubscription.
      

	 
	 	 	 If any Shareholder fails to exercise its rights
        under the First Participation Notice in full in accordance with subsection
        (a) above, the Company shall promptly give each Shareholder that has exercised
        its rights under the First Participation Notice in full ("Participating
        Shareholder") a Second Participation Notice indicating the amount
        of shareholders equity remaining available for subscription. Each such
        Participating Shareholder shall have five (5) Business Days from the date
        of receipt of the Second Participation Notice to elect by written notice
        to the Company to subscribe for that portion of the remaining shareholders'
        equity equal to the proportion that the number of Ordinary Shares held
        by such Participating Shareholder bears to the total number of Ordinary
        Shares held by all Participating Shareholders who wish to subscribe for
        the remaining shareholders' equity. If the shareholders equity made available
        for subscription is not fully subscribed for by the Shareholders following
        issuance of the Second Participation Notice, the Board may invite investors
        who are not Shareholders to subscribe for the shareholders equity still
        available for subscription, subject to the investors being acceptable
        to the Shareholders and becoming party to this Agreement in accordance
        with Section 15.5(b). 

	 
	 9.5      	 Failure to Exercise. 

	 
	 	 In the event that the Shareholders together
        fail to subscribe for all the Ordinary Shares offered in terms of Section
        9.4, the Company may reduce the amount of Ordinary Shares to be subscribed
        for to an amount equal to the amount subscribed, or it may offer any unsubscribed
        Ordinary Shares to third parties approved by the holder of a majority
        of Ordinary Shares upon terms not more favorable to the third parties
        than specified in the First Participation Notice. In the event that the
        Company has not issued and sold such Ordinary Shares within ninety (90)
        days after the Shareholders receipt of the First 

 24

 

	 	 Participation Notice, then the Company
        shall not thereafter issue or sell any Ordinary Shares without again first
        offering such Ordinary Shares to the Shareholders pursuant to Section
        9.4. 

	 
	 9.6      	 Timing of Subscription. 

	 
	 	 The payment for Ordinary Shares by Shareholders
        pursuant to this Section 9.6 shall occur no later than the time stipulated
        by the Board, provided, however, that the Board shall not require payment
        earlier than thirty (30) days following the Shareholders' receipt of the
        First Participation Notice (or the Second Participation Notice, if such
        is given). 

	 
	 9.7      	 Termination. 

	 
	 	 The right of each Shareholder under this
        Section 9 shall terminate upon such Shareholder ceasing to hold any Ordinary
        Shares. 

	 
	 9.8      	 Board Voting for New Issuance of Shares.
      

	 
	 	 Where CTVH and Continental subscribe the
        shares to be issued in accordance with the above, the new issuance of
        shares shall be approved by the Board with a simple majority. 

	 
	 9.9      	 Formula for Issuance of New Shares
        by Company. 

	 
	 	 (a)      
	 If Continental has exercised the First
        Option but not the Second Option under the Option Agreement: 

	 
	 	 	 (i)      
	 Determination of Shareholders Interest.
      

	 
	 	 	 	 CTVH's shareholders interest = A divided
        by (A plus B), expressed as a percentage. 

	 
	 	 	 	 Continental's shareholders interest =
        B divided by (A plus B), expressed as a percentage. 

	 
	 	 	 	 Where: 

	 
	 	 	 	 A = 
	 The aggregate amount of contributions, including
        share capital and surplus, to the Company, expressed as a US$ amount
        after Continental has completed its required expenditure in relation to
        the First Option, if any, plus US$5,000,000 as a deemed amount for
        the purpose of calculating CTVH's shareholders interests, less subscription
        monies paid to acquire CTVH's pro rata number of shares in relation to
        the First Option. 

	 
	 	 	 	 B = 
	 the aggregate amount of contributions, including
        share capital and surplus, to the Company, expressed as a US$ amount,
        after Continental has completed its required expenditure in relation to
        the First Option if any, plus US$5,000,000. 

25

 

	 	 	(ii) 
	Determination of number
        of shares to be issued.  

	 	 	 	 	 
	 	 	 	The Company will issue at
        par the number of shares required to equate  the shareholding of
        the Shareholders with their respective shareholders  interests as
        calculated above and the balance of the subscription price will be
        allocated to the surplus account of the Company. An example calculation
        is appended as Schedule C.  

	 	 	 	 
	 	 	In the event that the Company
        has Shareholders other than Continental and CTVH, the formula will be
        amended to include such other Shareholders.  

	 	 	 
	 	(b)  
	If Continental has exercised
        the Second Option under the Option Agreement and has completed its expenditure
        under the Second Option, then:

	 	 	 
	 	 	(i)
	Determination of Shareholders
        Interest.  

	 	 	 	 
	 	 	 	CTVH's shareholders interest
        = A divided by (A plus B), expressed as a percentage  

	 	 	 	 
	 	 	 	Continental's shareholders
        interest = B divided by (A plus B), expressed as a percentage.

	 	 	 	 
	 	 	 	Where:  

	 	 	 	 	 
	 	 	 	A =  
	The aggregate amount of contributions,
        including share capital and surplus, to the Company, expressed as a US$
        amount after Continental has completed its required expenditure in relation
        to the Second Option, if any, plus US$5,333,330 as a deemed amount
        for the purpose of calculating CTVH's shareholders interests, less subscription
        monies paid to acquire ABC's pro rata number of shares in relation to
        the First and Second Option.

	 	 	 	 	 
	 	 	 	B =
	the aggregate amount of contributions,
        including share capital and surplus, to the Company, expressed as a US$
        amount, after Continental has completed its required expenditure in relation
        to the Second Option, if any, plus US$8,000,000.

	 	 	 	 	 
	 	 	(ii) 
	Determination of number
        of shares to be issued. 

	 	 	 	 
	 	 	 	The Company will issue at
        the nominal value the number of Ordinary Shares required to equate the
        shareholding of the parties with their respective shareholders interests
        as calculated above and the balance of the subscription price will be
        allocated to the surplus account of the Company.

	 	 	 	 
	 	 	 	An example calculation is
        appended as Schedule C. 

	 	 	 	 
	 	In the event that the Company
        has Shareholders other than Continental and CTVH, the formula will be
        amended to include such other Shareholders.

 26

 

	 9.10	 Bank Accounts. 

	 
	 	 The Group Companies shall from time to time open
        an account or accounts with such bank or banks as the Board may determine,
        such accounts to be maintained in the name of the relevant Group Company.
        All monies from time to time received by, or on account of, the Group
        Companies shall be deposited forthwith preferably by electronic transfer
        in such Group Company accounts and all disbursements on account of the
        Group Companies shall be drawn upon such Group Company account or accounts.
        Such persons as may from time to time be designated by resolution of the
        Board, may draw cheques in the name of the Group Companies and may sign,
        endorse and accept in the name of the Group Companies, any bills, notes,
        cheques, drafts or other instruments for the purpose of the Business of
        the Group Companies, subject to such restrictions as may from time to
        time be prescribed by the Board. 

 SECTION 10 MANAGEMENT STRUCTURES

	 10.1	 The Company shall have a management organization
        that is under the leadership of the CEO, who shall be an individual nominated
        by the Shareholder holding the largest number of Ordinary Shares of the
        Company and appointed by the Board. In the event that Tian Yuan is operating
        a CTVH Exploration Program, CTVH shall have the right to remove and nominate
        the CEO. 

	 
	 10.2	 The Company shall cause Tian Yuan to set up a management
        organization that is under the leadership of the General Manager, who
        shall be an individual nominated by the CEO of the Company and appointed
        by the Tian Yuan Board by simple majority vote. 

	 
	 10.3	 In the event that Tian Yuan is operating a CTVH
        Exploration Program, CTVH shall have the right to remove any of the personnel
        of Tian Yuan and appoint replacement personnel for the duration of the
        CTVH Exploration Program. 

 SECTION 11 CERTAIN COVENANTS

	 11.1 	 Covenants of the Company. 

	 
	 	 (a)      
	 Accounting; Financial Statements and
        Other Information; Inspection Rights. 

	 
	 	 	 The Company covenants to the each of the
        Shareholders as follows: 

	 
	 	 	 (i)     
      
	 Accounting. The Company shall maintain and
        cause each Group Company to keep complete accounts and records, maintain
        a system of accounting established and administered in accordance with
        GAAP, and shall set aside on its books and cause each Group Company to
        set aside on its books, all such proper reserves as shall be required
        by GAAP and the Board. The Company shall engage an international firm
        of auditors to audit its accounts and annual financial statements and
        to prepare an audit report and KPMG shall be the initial auditors of the
        Company appointed by the Board. 

 27

 

	 	 	 (ii)      	 Financial Statements and Other Information.
      

	 
	 	 	 	 The Company shall deliver to the Shareholders
        and the Selecting Shareholder (as the case may be), promptly after the
        period covered thereby, and in any event within ninety (90) days thereafter,
        annual audited financial statements of the Company and each Group Company,
        prepared in accordance with GAAP and certified by an independent reputable
        international certified public accounting firm or an Affiliate thereof
        approved by the Board. 

	 
	 	 	 	 The Company shall deliver to the Shareholders
        then holding more than ten percent (10%) of the outstanding Ordinary Shares:
      

	 
	 	 	 	 (A)     
      
	 promptly after the period covered thereby, and in
        any event within thirty (30) days thereafter, quarterly unaudited financial
        statements of the Company and each Group Company, prepared in accordance
        with GAAP, 

	 
	 	 	 	 (B)      
	 monthly operational and management reports or reviews
        detailing key operational performance indicators of the Company and each
        Group Company within thirty (30) days after the end of each month, 

	 
	 	 	 	 (C)      
	 copies of any resolutions, minutes or written consents
        of the Board or committees of the Company (or similar bodies for any Group
        Company), or the Shareholders of the Company or any Group Company, in
        each case within fourteen (14) days following the date of the applicable
        meeting or within five (5) days following the complete execution of the
        unanimous written consent, 

	 
	 	 	 	 (D)      
	 no later than thirty (30) days before the commencement
        of each financial year, the Company Annual Budget for the upcoming financial
        year of the Company and each Group Company, 

	 
	 	 	 	 (E)      
	 general communications from the Company or any Group
        Company to its shareholders, directors or the public at large, 

	 
	 	 	 	 (F)      
	 reports or other materials filed by the Company
        or any Group Company with any Governmental Authority; 

	 
	 	 	 	 (G)      
	 notice of any material adverse event, condition
        or litigation affecting the Company or any Group Company, 

	 
	 	 	 	 (H)      
	 such other information and copies of documents concerning
        the business and operations of the Company or any Group Company as the
        Shareholder may request including without limitation, information and
        returns on Taxes, Governmental Approvals and Consents; and 

 28

 

	 	 	 	(I) 	any information that such Shareholder reasonably
        requests in connection with any domestic or foreign tax or other governmental
        filing to be made by such Shareholder or its Affiliates, provided that
        such Shareholder reimburses the Company for the incidental out-of-pocket
        costs incurred by the Company in preparing and delivering any such information
        (including reasonable costs in respect of the Company's own personnel
        and facilities). 

	 	 	 (iii)      	 Inspection Rights. 
	 
	 	 	 	 The Company shall permit any representative designated
        by any Shareholder holding no less than ten percent (10%) of the outstanding
        Ordinary Shares of the Company, at such Shareholder's expense, to visit
        and inspect any of the properties or assets of the Company or any Group
        Company, including its and their books of account (and to make copies
        thereof and to take extracts therefrom), and to discuss its and their
        affairs, Taxes, finances and accounts with its and their officers or employees,
        all at such reasonable times and as often as may be reasonably requested;
        provided, however, that such rights shall be exercised in a manner so
        as not to materially and adversely disrupt the ordinary course of business
        of the Company or any Group Company. 

	 
	 	 	 	 The Company shall permit any international accounting
        firm designated by the Selecting Shareholder, at the Selecting Shareholder's
        expense, to inspect the books of account of the Company or any Group Company
        (and to make copies thereof and to take extracts therefrom), all at such
        reasonable times and as often as may be reasonably requested; provided,
        however, that such rights shall be exercised in a manner so as not to
        materially and adversely disrupt the ordinary course of business of the
        Company or any Group Company. 

	 
	 	 (b)      
	 Insurance. 

	 
	 	 	 The Company shall, and shall cause each
        Group Company to maintain or cause to be maintained, with financially
        sound and reputable insurers, insurance with respect to their properties
        and business against loss or damage of the kinds customarily insured against
        by corporations of established reputation engaged in the same or similar
        business in the country or countries in which each of the Company and
        the Group Company conducts its business, in such amounts as are customarily
        carried under similar circumstances by such other corporations in such
        countries. In addition, the Company shall maintain with sound and reputable
        insurers, insurance with respect to actions of the Board and the officers
        of the Company in amounts and with insurance carriers satisfactory to
        Shareholders. 

 29

 

	 	 (c)      	 Disclosure and Cooperation with Respect
        to Transfers. 

	 
	 	 	 Upon the request of any Shareholder, the
        Company shall: 

	 
	 	 	 (i)     
      
	 promptly supply to such Shareholder or its third
        party transferees permitted hereunder, all information regarding the Company
        required to be delivered in connection with such transfer, if applicable,
        provided that such transferee enters into a reasonable and customary confidentiality
        agreement with respect to such information; and 

	 
	 	 	 (ii)      
	 otherwise cooperate and take all other actions as
        reasonably requested by such Shareholder in connection with any transfer.
      

	 
	 	 (d)      	 Compliance with Applicable Laws; Maintenance
        of Governmental Approvals. 

	 	 	(i)	The Company shall (and shall
        cause each Group Company to) comply at all times in all material respects
        with all Applicable Laws applicable to the Company or any Group Company.
      

	 	 	 	 	 	 
	 	 	(ii)	 The Company shall, and
        shall cause each Group Company, as applicable, to: 

	 	 	 	 	 	 
	 	 	 	(1)
	 keep in full force and
        effect all such Governmental Approvals and Consents, that may be required
        for: 

	 	 	 	 	 	 
	 	 	 	 	(a)
	the carrying on of its business and the business
        of each Group Company, in each case as it is presently carried on and
        is contemplated to be carried on, and 

	 	 	 	 	 	 
	 	 	 	 	(b)
	 the exercise by any Shareholders of its rights and
        remedies under any of such agreements to which it is a party. 

	 	 	 	 	 	 
	 	 	 	(2)
	obtain any other Governmental
        Approvals and Consents required to be obtained, as soon as such Governmental
        Approvals and Consents become necessary. 

 SECTION 12 TERMINATION OF AGREEMENT

	 12.1      	 This Agreement shall terminate with respect
        to each Shareholder at the time at which such Shareholder ceases to own
        any Ordinary Shares of the Company, except that such termination shall
        not affect: 

	 
	 	 (a)     
      
	 rights perfected or obligations incurred by such
        Shareholder under this Agreement prior to such termination, and 

	 
	 	 (b)      
	 obligations expressly stated to survive such cessation
        of ownership of any Ordinary Shares of the Company. 

 30

 SECTION 13 REPRESENTATIONS AND WARRANTIES

	 13.1      	 Representations and Warranties of the
        Warrantors. 

	 
	 	 The Warrantors hereby jointly and severally
        represent and warrant to Continental that on the date of this Agreement:
      

	 
	 	 (a)     
      
	 Each of the Group Companies, the Company, Tian Yuan
        and CTVH is a company duly organized, validly existing and in good standing
        under the laws of the jurisdiction of its incorporation; 

	 
	 	 (b)      
	 Each of the Warrantors and the Group Companies has
        full power and authority, and has obtained all necessary consents and
        approvals to enter into this Agreement and to exercise its rights and
        perform its obligations under this Agreement. All corporate and other
        actions required to authorize the execution and delivery of this Agreement
        and the performance of the obligations in this Agreement has been duly
        taken by the Warrantors and the Group Companies. 

	 
	 	 (c)      
	 Each of the Warrantors has full capacity to enter
        into this Agreement. 

	 
	 	 (d)      
	 Neither the execution and delivery of this Agreement,
        nor any of the agreements referred to herein or contemplated hereby, nor
        the consummation of the transactions hereby contemplated conflict with,
        result in the breach of, or accelerate the performance required by, any
        agreement to which each of the Warrantors is a party; 

	 
	 	 (e)      
	 The execution and delivery of this Agreement and
        the agreements contemplated hereby by the Warrantors will not violate
        or result in the breach of the laws of any jurisdiction applicable or
        pertaining to the Warrantors (as the case may be) or their respective
        constitutional documents (as the case may be); 

	 
	 	 (f)      
	 This Agreement constitutes a legal, valid and binding
        obligation of each of the Warrantors. 

	 
	 13.2      	 Representations and Warranties of Continental.
      

	 
	 	 Continental hereby represents and warrants
        to CTVH, the Company, Tian Yuan, and WZ that on the date of this Agreement:
      

	 
	 	 (a)      
	 It is a company duly organized, validly existing
        and in good standing under the laws of the province of British Columbia;
      

	 
	 	 (b)      
	 It has full power and authority to carry on its
        business and to enter into this Agreement and any agreement or instrument
        referred to or contemplated by this Agreement; 

	 
	 	 (c)      
	 Neither the execution and delivery of this Agreement,
        nor any of the agreements referred to herein or contemplated hereby, nor
        the consummation of the 

 31

 

	 	  	transactions hereby contemplated conflict with, result
        in the breach of, or accelerate the performance required by, any agreement
        to which it is a party; 

	 
	 	 (d)      
	 The execution and delivery of this Agreement and
        the agreements contemplated hereby by it will not violate or result in
        the breach of the laws of any jurisdiction applicable or pertaining to
        it or of its constitutional documents; and 

	 
	 	 (e)      
	 This Agreement constitutes a legal, valid and binding
        obligation of Continental. 

	 
	 13.3      	 Survival. 

	 
	 	 The representations and warranties in
        this Section 13 are conditions on which the Parties have relied in entering
        into this Agreement and shall survive until the termination of this Agreement.
        The Parties confirm for the avoidance of doubt that no Party may make
        a claim against another Party for a breach of any representation or warranty
        in this Section 13 if such breach has no adverse effect on the benefits,
        rights or interests of the Party entitled to make a claim. 

 SECTION 14 OBLIGATIONS AND LIABILITY OF WZ

	 14.1	 Obligations. 

	 
	 	 WZ shall actively assist Continental, the Company,
        Group Companies and Tian Yuan to apply for and maintain the Governmental
        Approvals and other approvals, registrations, licenses, permits, authorizations
        and support necessary or desirable in order for the Company and Tian Yuan
        to undertake the exploration and development of the Property and for Continental
        to participate in those activities. The parties confirm for the avoidance
        of doubt that by agreeing to provide his active assistance, WZ does not
        guarantee to the other parties that such Government Approvals or such
        other approvals, registrations, licenses, permits, authorizations and
        support will be available. 

	 
	 14.2      	 Liability. 

	 
	 	 WZ’s hereby agrees that he shall be liable
        to Continental for any breach of any representation or warranty under
        Section 13.1 and such aggregated liability under Section 13.1 shall not
        exceed USD$2,000,000. Unless terminated earlier by the relevant provision(s)
        of this Agreement, WZ's liability to Continental under Section 13.1 shall
        be terminated two years from the date of this Agreement. 

 SECTION 15 MISCELLANEOUS

	 15.1	 Area of Interest. 
	 
	 	 Continental, CTVH and WZ agree that if any of them
        either becomes aware of any interests in any mineral properties within
        10 kilometres of the perimeter of the Property that may be available for
        purchase, or if it actually makes a purchase of such interests, that any
        such interests will first be offered to Tian Yuan for purchase at that
        party's cost of acquisition as paid or payable to a third party, with
        the decision as to whether Tian 

 32

 

	 	 Yuan should purchase the interest being
        at the sole discretion of the Tian Yuan Board. The Tian Yuan Board shall
        make a decision whether to purchase such interests within twenty (20)
        days after Tian Yuan is offered to purchase such interests. The directors
        appointed by the party (or the party itself if it is a director) shall
        abstain from voting on the acquisition of the mineral property in question.
        If the Tian Yuan Board cannot make a decision within such time period,
        Tian Yuan shall be deemed to have waived the right to purchase such interests.
      

	 
	 15.2      	 Laws, Customs and Traditions in Tibet.
      

	 
	 	 Each Party acknowledges that it will comply
        with all laws and regulations applicable in Tibet. 

	 
	 	 The Parties shall make reasonable efforts
        to cause their employees to comply with the laws and regulations applicable
        in Tibet, and not to engage in any activities, or spread any information,
        while in Tibet that may reasonably be expected to adversely affect Tibet's
        political stability or national harmony or to offend Tibet's customs and
        traditions. Such efforts will include: 

	 
	 	 (a)     
      
	 Training employees on the laws and regulations applicable
        in, and the customs and traditions of, Tibet and the standards of behavior
        to be maintained while working in Tibet. CTVH shall assist Continental
        to prepare and deliver the training; 

	 
	 	 (b)      
	 To the extent allowed by law, providing in all employment
        agreements that the employer has the right to terminate the employment
        of any employee who commits a serious breach of such standards of behavior;
      

	 
	 	 (c)      
	 To the extent allowed by law, terminating the employment
        of employees who commit a serious breach of such standards of behavior,
        provided that the Company has received notice of such breach from the
        public security bureau or other government department with authority over
        the employee. 

	 
	 	 If any Party breaches the requirements
        of this Section 15.2, it must commence to remedy the breach on receipt
        of notice of such breach and complete remedy of the breach within one
        year of receiving the notice of such breach, as well as use its reasonable
        endeavors to mitigate the damages. 

	 
	 15.3      	 Notices. 

	 
	 	 All notices, requests, demands, approvals,
        consents, waivers or other communications required or permitted to be
        given hereunder (each, a "Notice") shall be in writing and shall
        be (a) personally delivered, (b) transmitted by telecopy facsimile, provided
        that the original copy thereof also is sent by pre-paid, first class,
        certified or registered mail or by next-day or overnight mail or courier
        or by an internationally recognized express delivery service, (c) sent
        by first class, registered or certified mail or by next-day or overnight
        mail or courier return receipt requested, postage and charges prepaid,
        or (d) delivered by an internationally recognized express delivery service
        with all postage and charges prepaid: 

 33

 

	 	 (a)     
      
	 if to any Shareholder, at the address set forth
        on the Registry of Members of the Company, or at such other address as
        the Shareholder may specify in a Notice to the Company; and 

	 
	 	 (b)      
	 if to the Company, at Suite 1020 - 800 West Pender
        Street, Vancouver, British Columbia, Canada, V6C 2V6, Fax: (1 604) 684-8092
        or at such other address as may have been furnished by the Company in
        a Notice to the other Parties. 

	 
	 	 Any Notice shall be deemed effective or
        given upon receipt (or refusal of receipt). 

	 
	 15.4      	 Confidentiality. 

	 
	 	 (a)      
	 Disclosure of Terms. 

	 
	 	 	 Confidential Information, including the existence
        of such Confidential Information, shall not be disclosed by any Party
        to any third party during the term of this Agreement and for two (2) years
        thereafter, except in accordance with the provisions set forth below.
      

	 
	 	 (b)      
	 Permitted Disclosures. 

	 
	 	 	 Notwithstanding the foregoing any Party may disclose
        any of the Confidential Information to its (i) respective employees, contractors
        and advisors where such disclosure of Confidential Information is required
        for such Party to undertake the activities contemplated by this Agreement,
        or (ii) current or bona fide prospective investors, employees, investment
        bankers, lenders, accountants and attorneys, in each case only where such
        persons or entities are under appropriate nondisclosure obligations; 

	 
	 	 (c)      
	 Legally Compelled Disclosure. 

	 
	 	 	 In the event that any Party is requested or becomes
        legally compelled (including without limitation, pursuant to securities
        laws and regulations) to disclose the existence of this Agreement or any
        of the Confidential Information in contravention of the provisions of
        this Section 15.4, such Party shall provide the other parties with prompt
        written notice of that fact so that the appropriate Party may seek (with
        the cooperation and reasonable efforts of the other Parties) a protective
        order, confidential treatment or other appropriate remedy. In such event,
        the Party disclosing Confidential Information shall furnish only that
        portion of the information that is legally required and shall exercise
        reasonable efforts to obtain reliable assurance that confidential treatment
        will be accorded such information to the extent reasonably requested by
        any such other non-disclosing Party. 

	 
	 	 	 (d) Relief. 

	 
	 	 	 The Group Companies and Shareholders acknowledge
        that monetary damages may not be a sufficient remedy for an unauthorized
        disclosure of Confidential Information and that in the event of such disclosure
        by any Party to this Agreement, the other Party shall be entitled, without
        waiving any other rights or 

 34

 

	 	  	remedies, to seek injunctive relief or similar judicial
        or administrative remedies. 

	 
	 15.5      	 Binding Effect; Assignment. 

	 
	 	 (a)      
	 Assignment. Except as otherwise provided in this
        Agreement, the rights of each Shareholder shall be transferred to any
        person who acquires shares of the Company in a Permitted Transfer, and
        who becomes a "Shareholder" hereunder pursuant to their execution of an
        Adherence Agreement. Any such transferee shall receive such assigned rights
        subject to all the terms and conditions of this Agreement, including without
        limitation the provisions of this Section 15.5. 

	 
	 	 (b)      
	 Adherence Agreement. Any Shareholder Transferring
        Ordinary Shares of the Company shall procure that the transferee shall
        execute and deliver to the Company an Adherence Agreement substantially
        in the form and substance attached hereto as Schedule A, thereby assuming
        the rights and obligations of such Shareholder under this Agreement. Upon
        the execution and delivery of an Adherence Agreement by any transferee,
        such transferee shall be deemed to be a Shareholder hereunder. By their
        execution hereof, each of the Parties appoints the Company as its attorney-in-fact
        for the limited purpose of executing any Adherence Agreement which may
        be required to be delivered pursuant to this Section 15.5(b). 

	 
	 15.6      	 Severability. 

	 
	 	 Should any Section or any part of a Section
        within this Agreement be rendered void, invalid or unenforceable by any
        court of law for any reason, such invalidity or unenforceability shall
        not void or render invalid or unenforceable any other Section or part
        of a Section in this Agreement. 

	 
	 15.7      	 Amendments. 

	 
	 	 Except as otherwise provided in this Agreement,
        any provision of this Agreement may be amended only with the written consent
        of the Company, Tian Yuan and the Shareholders. The observance of any
        provision of this Agreement may be waived (either generally or in a particular
        instance and either retroactively or prospectively) as to any Party only
        with the written consent of that Party and any Party may waive any of
        its rights hereunder without obtaining the consent of any other Party.
        Any amendment or waiver effected in writing in accordance with this Section
        15.7 shall be binding upon the Company, Tian Yuan, each Shareholder, and
        their respective successors in interest. 

	 
	 15.8      	 Entire Agreement. 

	 
	 	 This Agreement, together with all schedules
        and exhibits hereto, which are hereby expressly incorporated herein by
        this reference, constitute the entire understanding and agreement between
        the Parties with regard to the subjects hereof. 

	 
	 15.9      	 Delays or Omissions. 

	 
	 	 No delay or omission to exercise any right,
        power or remedy accruing to any Party hereto upon any breach or default
        of any other Party hereto under this Agreement, shall 

 35

 

	 	 impair any such right, power or remedy
        of the aggrieved Party nor shall it be construed to be a waiver of any
        such breach or default, or an acquiescence therein, or of any similar
        breach of default thereafter occurring; nor shall any waiver of any other
        breach or default theretofore or thereafter occurring. Any waiver, permit,
        consent or approval of any kind or character on the part of any Party
        hereto of any breach of default under this Agreement or any waiver on
        the part of any Party hereto of any provisions or conditions of this Agreement,
        must be in writing and shall be effective only to the extent specifically
        set forth in such writing. All remedies, either under this Agreement,
        or by law or otherwise afforded to the parties shall be cumulative and
        not alternative 

	 
	 15.10      	 Dispute Resolution. 

	 
	 	 The Parties agree to negotiate in good
        faith to resolve any dispute between them regarding this Agreement. If
        the negotiations do not resolve the dispute to the reasonable satisfaction
        of all Parties within thirty (30) days after one Party has given notice
        to the others requesting such negotiations, then such dispute shall be
        settled by arbitration in accordance with the UNCITRAL Rules as at present
        in force, as amended by the following provisions: 

	 
	 	 (a)     
      
	 The appointing authority shall be the Hong Kong
        International Arbitration Centre (the "HKIAC"). 

	 
	 	 (b)      
	 The place of arbitration shall be in Hong Kong at
        the HKIAC. 

	 
	 	 (c)      
	 There shall be only one arbitrator chosen by the
        Parties by agreement in accordance with the UNCITRAL Rules, provided that
        if they do not reach agreement on the choice of a sole arbitrator, then
        three arbitrators shall be appointed in accordance with the UNCITRAL Rules.
        The sole or presiding arbitrator shall not be a citizen of any of Canada,
        United States of America and People's Republic of China. 

	 
	 	 (d)      
	 Any such arbitration shall be administered by the
        HKIAC in accordance with the HKIAC Procedures for Arbitration in force
        at the date of this Agreement including such additions to the UNCITRAL
        Rules as are therein contained. 

	 
	 	 (e)      
	 The language to be used in the arbitral proceedings
        shall be English. 

	 
	 	 (f)      
	 CTVH and Continental shall each submit to the arbitrators
        in writing a description of the facts relating to, and a requested remedy
        for, the dispute. The arbitrators shall select between the remedy requested
        by CTVH and that requested by Continental and it shall award the entire
        remedy selected and only that remedy. In no event may the arbitrators
        issue an award that provides a remedy less than, more than, or in any
        other way different from the Party-requested remedy that the arbitrators
        have selected. 

	 
	 	 (g)      
	 The arbitration award shall be final and binding
        on the Parties. 

 36

 

	 15.11      	 Force Majeure. 

	 
	 	 A Party shall not be deemed
        in default of this Agreement to the extent that performance of its obligations
        or attempts to cure any breach are delayed, restricted or prevented by
        reason of any acts of God, war, civil strife, fire, natural disaster,
        acts of terrorism, acts of government, strikes or labor disputes, inability
        to obtain on reasonably acceptable terms any public or private license,
        permit or other authorization, delay or failure by suppliers or transporters
        of materials, parts, supplies, services or equipment, or any other act
        or condition beyond the reasonable control of the Parties provided that
        the affected Party gives the other Party written notice thereof and uses
        its best efforts to cure the delay. In the event that any act of force
        majeure prevents any Party from carrying out its obligations under this
        Agreement for a period of more than six months (or such other period as
        may be agreed by the Parties), the other Parties may terminate this Agreement
        without liability upon thirty (30) days’ notice.

	 
	 15.12      	 Supremacy of this Agreement. 

	 
	 	(a) 
	 The provisions of this Agreement shall take precedence
        over the Restated Articles and in the event of any conflict between the
        Restated Articles and this Agreement, the provisions of this Agreement
        will prevail. 

	 
	 	(b) 
	 The Shareholders agree that operation of any provision
        of the Restated Articles which may from time to time conflict with this
        Agreement shall be deemed to be suspended during the subsistence of this
        Agreement. 

	 
	 	(c) 
	 In the event of any conflict between the Articles
        and this Agreement, upon written request by any Shareholder, the Parties
        undertake to procure an amendment of the Restated Articles to eliminate
        such inconsistency, and the Shareholders undertake irrevocably to vote,
        or execute written consents, to effect any such amendment. 

	 
	 15.13      	 Legal Fees. 

	 
	 	 In the event of any action at law, suit
        in equity or arbitration proceeding in relation to this Agreement or the
        rights conferred hereunder, the Parties shall be responsible for each
        Party's respective attorney's fees and out-of-pocket expenses incurred
        in relation to the above mentioned action at law, suit in equity or arbitration
        proceeding. 

	 
	 15.14      	 Language of Performance. 

	 
	 	 All notices, communications, and proceedings
        relating to this Agreement and the exercise or performance of the Parties'
        respective rights and duties hereunder shall be in the English language.
      

	 
	 15.15      	 Further Assurances. 

	 
	 	 Each Party shall from time to time and
        at all times hereafter make, do, execute, or cause or procure to be made,
        done and executed such further acts, deeds, conveyances, consents and
        assurances without further consideration, which may reasonably be required
        to effect the transactions contemplated by this Agreement. 

 37

 

	 15.16      	 Captions and Section Headings. 

	 
	 	 Section titles or captions contained in this Agreement
        are inserted as a matter of convenience and for reference purposes only,
        and in no way define, limit, extend or describe the scope of this Agreement
        or the intent of any provision hereof. 

	 
	 15.17      	 Schedules. 

	 
	 	 The schedules attached hereto are hereby incorporated
        into this Agreement and are an integral part of this Agreement. 

	 
	 15.18      	 Counterparts. 

	 
	 	 This Agreement may be executed (including by facsimile
        transmission) with counterpart signature pages or in one or more counterparts,
        each of which shall be deemed an original and all of which together shall
        be considered one and the same agreement. 

	 
	 15.19      	 Shares Subject to this Agreement. 

	 
	 	 This Agreement shall apply to (a) the Ordinary Shares
        held by the parties hereto, as well as any Ordinary Shares hereafter acquired
        by any such party, and (b) any and all shares in the capital of the Company
        which may be issued in respect of, exchanged for, or substituted for Ordinary
        Shares, by reason of any stock dividend, split, reverse split, combination,
        reclassification, merger, recapitalization, share exchange or other transaction.
      

	 
	 15.20      	 Governing Law. 

	 
	 	 This Agreement shall be governed by the laws of
        British Columbia, Canada without giving effect to any choice of law rule
        that would cause the application of the laws of any jurisdiction other
        than the laws of British Columbia, Canada to the rights and duties of
        the Parties. 

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

 HIGHLAND MINING INC. 

 

	 By:  	 
    	 
	  	 Name:  	 
	  	 Title:  	 

 38

 

	TIBET TIAN YUAN MINERALS EXPLORATION LIMITED 
    	 
	 	 	 
	 	  	 
	 	  	 
	 	  	 
	By:  	 
    	 
	 	 Name:  	 
	 	 Title:  	 
	 	  	 
	 	  	 
	 	  	 
	 CONTINENTAL MINERALS CORPORATION 
    	 
	 	  	 
	 	  	 
	 	  	 
	By:  	 
    	 
	 	 Name:  	 
	 	 Title:  	 
	 	  	 
	 	  	 
	 	  	 
	 CHINA NETTV HOLDINGS INC.  	 
	 	  	 
	 	  	 
	 	 	 
	By:  	 	 
	 	 Name:  	 
	 	 Title:  	 
	 	  	 
	 	  	 
	 	  	 
	 Wang Zhi  	 
	 	 
	 	 
	 	 
	 	 

 39

 SCHEDULE A 

  ADHERENCE AGREEMENT 

              This
  Adherence Agreement ("Adherence Agreement") is executed by the undersigned
  (the "Transferee") pursuant to the terms of that certain Shareholders
  Agreement dated as of _____________ , 2004 (the "Agreement") by and among
  Highland Mining Inc. (the "Company"), Tibet Tian Yuan Minerals Exploration
  Limited and certain of its shareholders, and is in consideration of the shares
  purchased by the Transferee and other good and valuable consideration, the receipt
  and sufficiency of which are hereby acknowledged. Capitalized terms used but
  not defined in this Agreement shall have the respective meanings ascribed to
  such terms in the Agreement. By the execution of this Adherence Agreement, the
  Transferee agrees as follows: 

              1.             
  Acknowledgment. Transferee acknowledges that Transferee is acquiring
  [number] of ordinary shares of the Company (the "Shares") from [name
  of transferor] (the "Transferor"), subject to the terms and conditions
  of the Agreement. 

              2.             
  Agreement. Immediately upon transfer of the Shares, Transferee (i) agrees
  that the Shares acquired by Transferee shall be bound by and subject to the
  terms of the Agreement applicable to the Transferor, and (ii) hereby adopts
  the Agreement with the same force and effect as if Transferee were originally
  a "Shareholder" thereunder.

              3.             
  Notice. Any notice required or permitted by the Agreement shall be given
  to Transferee at the address listed beside Transferee's signature below. 

                                 EXECUTED
  AND DATED this ______ day of _________________ , ____. 

	  	 	 TRANSFEREE:  
	  	 	 
	  	 	 By:  ______________________________________
	  	 	 Name:  ____________________________________
	 Accepted and Agreed:  	 	 Title:  _____________________________________ 
	 HIGHLAND MINING INC.  	 	  
	 By:  ______________________________________	 	 Address:  __________________________________
	 Name:  ____________________________________	 	 Fax:  ______________________________________
	 Title:  _____________________________________ 	 	  

 40

 SCHEDULE B 

 SAMPLE CALCULATIONS 

 BVI NET PROFITS CALCULATION EXAMPLE 

	  	 CS$ 
	 Net income before interest and taxes  	 10,000,000 
	 Interest  	 (1,000,000) 
	 Net income before taxes  	 9,000,000 
	 Taxes  	 (3,000,000) 
	 Distributable Income  	 6,000,000 
	 Less: Loan repayments  	 (1,000,000) 
	 Less: Financial Commitments  	 (1,000,000) 
	 Less: Working Capital requirements  	 (1,000,000) 
	 Less: Reserves  	 (1,000,000) 
	 Company Net Profits  	 2,000,000 

 BVI EXCESS INVESTMENT CALCULATION EXAMPLE 

	  	 Month 1 	 Month 2 	 Month 3 
	 Days  	 31 	 30 	 31 
	 Interest rate  	 2.00% 	 2.00% 	 2.00% 
	 Opening balance  	 0 	 1,001,699 	 2,004,989 
	 Share equity (par value)  	 10,000 	 0 	 0 
	 Surplus  	 990,000 	 0 	 0 
	 Shareholders loan  	 0 	 1,000,000 	 1,000,000 
	 Total  	 1,000,000 	 2,001,699 	 3,004,989 
	 Interest  	 1,699 	 3,290 	 5,104 
	 Closing balance  	 1,001,699 	 2,004,989 	 3,010,093 

 BVI PAYMENTS CALCULATION EXAMPLE 

	  	 Company

       Net Profits	 Company

       Payments	Fixed

       Interim

       Payment	 Repayment	 Balance

       Accrued	 Net

       Payment
	  Year 1	 -  	 -  	  	   	  	  
	  Year 2	 -  	 -  	  	   	  	  
	  Year 3	 -  	 -  	  	   	  	  
	  Year 4	 1,500,000  	 -  	 -  	 - 	 -  	 -  
	  Year 5	 2,000,000  	 -  	 250,000  	 - 	 250,000  	 -  
	  Year 6	 3,000,000  	 -  	 250,000  	 - 	 500,000  	 -  
	 Year 7* 	 4,000,000  	 500,000  	 250,000  	 (250,000) 	 250,000  	 -  
	  Year 8	 5,000,000  	 625,000  	 250,000  	 (250,000) 	 -  	 125,000  
	  Year 9	 10,000,000  	 1,250,000  	 -  	 - 	 -  	 1,250,000  
	 Year 10  	 10,000,000  	 1,250,000  	 -  	 - 	 -  	 1,250,000  

* BVI Excess Investment repaid in year 7 

 41

 SCHEDULE C 

 SAMPLE CALCULATIONS 

 SAMPLE CALCULATION WHERE CONTINENTAL HAS EXERCISED THE FIRST
  

  OPTION BUT NOT THE SECOND OPTION IN TERMS OF THE OPTION 

  AGREEMENT 

 CTVH's shareholders interest before subscription = 50% 

Continental's shareholders interest before subscription = 50%

 Funding required by the Company = USD2,000,000 

CTVH subscribes for US$400,000 

Continental subscribes for US$1,600,000 

 Calculation of Shareholders Interest

	 A =	 400,000 + 5,000,000 	  	 B =	 1,600,000 +  5,000,000  
	 	 	 	 	 
	 A =	 5,400,000 	  	 B =	 6,600,000  

	CTVH shareholders interest	 = A / (A+B) 
	 	= 5,400,000 / (5,400,000 + 6,600,000)
	 	 = 5,400,000 / (12,000,000)
	 	= 45%
	 	 	 	 
	Continental's shareholders interest	 	= B / (A+B) 
	 	 	= 6,600,000 / (5,400,000 + 6,600,000)
	 	 	= 6,600,000 / (12,000,000)
	 	 	= 55%

 SAMPLE CALCULATION WHERE CONTINENTAL HAS EXERCISED THE 

  SECOND OPTION IN TERMS OF THE OPTION AGREEMENT 

 CTVH's shareholders interest before subscription = 40% 

Continental's shareholders interest before subscription = 60% 

Funding required by the Company = USD2,000,000

 CTVH subscribes for US$340,000 

 42

 Continental subscribes for US$1,660,000 

 Calculation of Shareholders Interest

	 A =	 340,000 + 5,333,330	  	 B =	 1,660,000 +   8,000,000
	 	 	 	 	 
	 A =	 5,673,330	  	 B =	 9,660,000 

	CTVH shareholders interest	 = A / (A+B) 
	 	= 5,673,330 / (5,673,330+ 9,660,000)
	 	 = 6,600,000 / (12,000,000)
	 	= 37%
	 	 	 	 
	Continental's shareholders interest	 	= B / (A+B) 
	 	 	= 9,660,000 / (5,673,330+ 9,660,000)  
	 	 	= 9,660,000 / (15,333,330)  
	 	 	= 63%

 43

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