Document:

EXHIBIT 4.12

         THIS NOTE AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED
         UNDER APPLICABLE STATE SECURITIES LAWS AND HAVE BEEN TAKEN FOR
         INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO OR FOR SALE IN
         CONNECTION WITH ANY DISTRIBUTION THEREOF. NEITHER THIS NOTE NOR THE
         SECURITIES REPRESENTED HEREBY MAY BE SOLD OR OTHERWISE TRANSFERRED IN
         THE ABSENCE OF SUCH REGISTRATION AND QUALIFICATION WITHOUT, EXCEPT
         UNDER CERTAIN SPECIFIC LIMITED CIRCUMSTANCES, AN OPINION OF COUNSEL FOR
         THE LENDER, REASONABLY ACCEPTABLE TO THE COMPANY, THAT SUCH
         REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

                               DELTA MUTUAL, INC.
                        10% CONVERTIBLE PROMISSORY NOTE

$550,000                                                             May 1, 2007
                                                      Sellersville, Pennsylvania

         FOR VALUE RECEIVED, DELTA MUTUAL INC., a Delaware corporation (the
         "Company"), with offices at 111 North Branch Street, Sellersville, PA
         18960, promises to pay to GZSZ, a New York corporation, (the "Lender"),
         of 199 Lee Avenue, Suite # 188, Brooklyn, NY 11211 in lawful money of
         the United States of America, the principal sum of Five Hundred Fifty
         Thousand Dollars ($550,000), together with interest from the Funding
         Dates (as defined below) of this Note on the unpaid principal balance
         at a rate equal to ten percent (10.0%) per annum, computed on the basis
         of a year of 360 days and compounded annually on the last day of the
         calendar year. All unpaid principal, together with any then unpaid and
         accrued interest and other amounts payable hereunder, shall be due and
         payable at any time after the earlier of (i) the Maturity Dates (as
         defined below), or (ii) when, upon or after the occurrence of an Event
         of Default (as defined below), such amounts are declared due and
         payable by the Lender or made automatically due and payable in
         accordance with the terms hereof.

Lender agrees to provide the principal amount of this Note to the Company by
wire transfer in two tranches as follows: the first tranche of Two Hundred Fifty
Thousand Dollars ($250,000), as of the date hereof; and the second tranche of
Three Hundred Thousand Dollars ($300,000) on June 27, 2007 (collectively, the
"Funding Dates").

         The following is a statement of the rights of the Lender and the
conditions to which this Note is subject, and to which the Lender, by the
acceptance of this Note, agrees:

      1. Definitions. As used in this Note, the following capitalized terms have
the following meanings:

            1.1 "Common Stock" shall mean the common stock, par value $.0001 per
share, of Delta Mutual, Inc., a Delaware corporation.

            1.2 "Company" includes the corporation initially executing this Note
and any Person which shall succeed to or assume the obligations of the Company
under this Note.

            1.3 "Event of Default" has the meaning given in Section 6 hereof.

            1.4 "Lender" shall mean the Person specified in the introductory
paragraph of this Note or any Person who shall at the time be the registered
holder of this Note.

            1.5 "Maturity Dates" shall mean twelve (12) months from the date of
the respective Funding Dates.

            1.6 "Obligations" shall mean all obligations, owed by the Company to
the Lender, now existing or hereafter arising under or pursuant to the terms of
this Note.
<PAGE>

            1.7 "Person" shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock the Company, a limited
liability the Company, an unincorporated association, a joint venture or other
entity or a governmental authority.

      2. Interest. All accrued and unpaid interest on this Note shall be due and
payable on the Maturity Dates.

      3. Seniority. This Note shall be senior to all term and convertible notes,
issued by the Company and outstanding as of the date hereof, except that this
Note shall be subordinate to and rank behind in seniority to four demand notes
issued by the Company in the aggregate principal amount of $270,655 (the "Demand
Notes") that are outstanding as of the date hereof.

      4. Repayment at the Company's Option. At any time after the date hereof
and prior to the Maturity Date, the Company may repay this Note, including all
interest accrued on this Note, without penalty or premium, in whole or in part;
provided that any such repayment will be applied first to the payment of unpaid
interest accrued on this Note and second, to the payment of principal of this
Note, by providing ten (10) days prior written notice to the Lender.
Notwithstanding the foregoing, prior to the expiration of the ten-day notice
period, the Lender shall have the right to convert this Note in accordance
herewith prior to any such repayment, as set forth in Section 8.1 hereof.

      5. Representations and Warranties of The Lender. The Lender represents and
warrants to the Company upon the acquisition of the Note as follows:

            5.1 Binding Obligation. The Lender has full legal capacity, power
and authority to execute and deliver this Note and to perform its obligations
hereunder. This Note is a valid and binding obligation of the Lender,
enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency or other laws of general application relating to or affecting the
enforcement of creditors' rights generally and general principles of equity.

            5.2 Securities Law Compliance. The Lender has been advised that this
Note has not been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws and, therefore, cannot be resold
unless it is registered under the Securities Act and applicable state securities
laws or unless an exemption from such registration requirements is available.
The Lender is aware that the Company is under no obligation to effect any such
registration with respect to this Note or to file for or comply with any
exemption from registration. The Lender is purchasing this Note for its own
account for investment, not as a nominee or agent, and not with a view to, or
for resale in connection with, the distribution thereof. The Lender has such
knowledge and experience in financial and business matters that the Lender is
capable of evaluating the merits and risks of such investment, is able to incur
a complete loss of such investment and is able to bear the economic risk of such
investment for an indefinite period of time.

      6. Events of Default. The occurrence of any of the following shall
constitute an "Event of Default" under this Note:

            6.1 Failure to Comply With Covenants. The Company shall have failed
to perform, keep, or observe any other material term, provision, condition,
covenant, or agreement contained in this Note and has failed to cure such
default within fifteen (15) business days after the Company's receipt of written
notice from the Lender of such default;

            6.2 Voluntary Bankruptcy or Insolvency Proceedings. The Company
shall (i) apply for or consent to the appointment of a receiver, trustee,
liquidator or custodian of itself or of all or a substantial part of its
property, (ii) be unable, or admit in writing its inability, to pay its debts
generally as they mature, (iii) make a general assignment for the benefit of its
or any of its creditors, (iv) be dissolved or liquidated, (v) become insolvent
(as such term may be defined or interpreted under any applicable statute), (vi)
commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
consent to any such relief or to the appointment of or taking possession of its
property by any official in an involuntary case or other proceeding commenced
against it, or (vii) take any action for the purpose of effecting any of the
foregoing; or

            6.3 Involuntary Bankruptcy or Insolvency Proceedings. Proceedings
for the appointment of a receiver, trustee, liquidator or custodian of the
Company or of all or a substantial part of the property thereof, or an
involuntary case or other proceedings seeking liquidation, reorganization or
other relief with respect to the Company or the debts thereof under any
bankruptcy, insolvency or other similar law now or hereafter in effect shall be
commenced and an order for relief entered or such proceeding shall not be
dismissed or discharged within sixty (60) days of commencement.
<PAGE>

      7. Rights of The Lender upon Default. Upon the occurrence or existence of
any Event of Default (other than an Event of Default referred to in Sections 6.2
and 6.3) and at any time thereafter during the continuance of such Event of
Default, the Lender may, by written notice to the Company, declare all
outstanding Obligations payable by the Company hereunder to be immediately due
and payable without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived. Upon the occurrence or existence
of any Event of Default described in Sections 6.2 and 6.3, immediately and
without notice, all outstanding Obligations payable by the Company hereunder
shall automatically become immediately due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived. In addition to the foregoing remedies, upon the occurrence or
existence of any Event of Default, the Lender may exercise any other right,
power or remedy otherwise permitted to it by law, either by suit in equity or by
action at law, or both.

      8. Conversion.

            8.1 Optional Conversion by the Lender. At any time after the date
hereof and prior to the Maturity Dates, the Lender may convert all or any
portion of the outstanding principal balance of this Note, and, unless paid in
cash by or on behalf of the Company, all accrued and unpaid interest thereon,
into fully paid and nonassessable shares of Common Stock. The number of shares
of Common Stock into which this Note may be converted (the "Conversion Shares")
shall be determined by dividing the aggregate principal amount, and, if
applicable, accrued and unpaid interest, of the Note by the Conversion Price (as
defined below) in effect at the time of such conversion. The "Conversion Price"
shall be equal to $0.05 per share (subject to adjustment for stock splits,
combinations and other similar transactions, and as set forth below in Section
8.5).

            8.2 Optional Conversion by the Company. On and after 180 days from
the respective Funding Dates, the Company, in its sole discretion, shall have
the right, but not the obligation, to convert the entire principal amount, and,
if applicable, accrued and unpaid interest, of the Note into fully paid and
nonassessable shares of Common Stock, if the closing bid price of a share of
Common Stock is Fifty Cents ($0.50) per share, or higher, for ten (10)
consecutive trading days.

            8.3 Fractional Shares; Effect of Conversion. No fractional shares
shall be issued upon conversion of this Note. Upon conversion of this Note in
full, the Company shall be forever released from all its obligations and
liabilities under this Note

            8.4 Reservation of Stock Issuable Upon Conversion. The Company shall
at all times reserve and keep available out of its authorized but unissued
shares of Common Stock solely for the purpose of effecting the conversion of
this Note such number of its shares of Common Stock as shall from time to time
be sufficient to effect the conversion of the Note; and if at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient
to effect the conversion of the entire outstanding principal amount and, if
applicable, accrued and unpaid interest, of the Note, without limitation of such
other remedies as shall be available to the Lender of this Note, the Company
will use its best efforts to take such corporate action as may, in the opinion
of counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purposes.
8.5

            8.5 Adjustment to Conversion Price. In the event that the Company
shall at any time subdivide the outstanding securities into which this Note
shall be convertible, or shall issue a stock dividend on the securities into
which this Note shall be convertible, the number of Conversion Shares
immediately prior to such subdivision or to the issuance of such stock dividend
shall be proportionately increased, and the Conversion Price shall be
proportionately decreased, and in the event that the Company shall at any time
combine the outstanding securities into which this Note shall be convertible,
the number of Conversion Shares immediately prior to such combination shall be
proportionately decreased, and the Conversion Price shall be proportionately
increased, effective at the close of business on the date of such subdivision,
stock dividend or combination, as the case may be. The foregoing
notwithstanding, for so long as any portion of the principal amount, and, if
applicable, accrued and unpaid interest, of this Note is outstanding, if the
Company issues shares of Common Stock or other securities convertible into
Common Stock, at a price per share below $0.05, then the Conversion Price shall
be adjusted to the price per share of the shares of Common Stock or convertible
securities so issued by the Company.

      9. Covenants of The Company. The Company will, until the earlier to occur
of the conversion or repayment in full of this Note, have authorized a
sufficient number of shares of each class or series of capital stock into which
this Note is convertible pursuant to Section 8 hereof and shall reserve for
issuance upon conversion hereof a sufficient number of shares thereof.
<PAGE>

      10. Registration Rights. If at any time, the Company proposes to register
any of its securities under the Securities Act (the "Act"), whether or not for
its own account (other than by a registration statement on Form S-8 or Form
S-4), it shall give written notice to Lender of its intent to file a
registration statement and include in such registration statement that number of
Conversion Shares held by Lender or that number of shares requested by Lender to
be included in such registration statement upon conversion, subject to the
limitations set forth in this Section 10 ("Piggyback Registration Rights").

            10.1 Underwritten Public Offerings. If the Company elects to
register its securities by or through an underwriter, the Lender may elect to
sell its Conversion Shares on the same terms and conditions as apply to other
selling shareholders or may elect not to have its Conversion Shares included in
such registration. The Company shall pay all expenses in connection with the
registration of Lender's Conversion Shares pursuant to the Piggyback
Registration Rights.

            10.2 Priority in Piggyback Registration. The Company shall not be
required to include any Conversion Shares to the extent the managing underwriter
reasonably believes and advises Lender that inclusion of such shares would
materially adversely affect such offering; provided, however, that any such
reduction or elimination shall be pro rata among all other holders of Common
Stock exercising any registration rights in proportion to the respective number
of shares of Common Stock requested to be registered, if any.

      11. Successors and Assigns. Subject to the restrictions on transfer
described in Sections 13 and 14 below, the rights and obligations of the Company
and the Lender of this Note shall be binding upon and benefit the successors,
assigns, heirs, administrators and transferees of the parties.

      12. Waiver and Amendment. Any provision of this Note may be amended,
waived or modified upon the written consent of the Company and the Lender.

      13. Transfer of this Note or Securities Issuable on Conversion Hereof.
This Note may not be sold, assigned or transferred by the Lender. With respect
to any sale or other disposition of the securities into which this Note may be
converted, the Lender will give written notice to the Company prior thereto,
describing briefly the manner thereof, together with a written opinion of the
Lender's counsel, or other evidence if reasonably satisfactory to the Company,
to the effect that such offer, sale or other distribution may be effected
without registration or qualification (under any federal or state law then in
effect). Upon receiving such written notice and reasonably satisfactory opinion,
if so requested, or other evidence, the Company, as promptly as practicable,
shall notify the Lender that the Lender may sell or otherwise dispose of such
securities, all in accordance with the terms of the notice delivered to the
Company. If a determination has been made pursuant to this Section 12 that the
opinion of counsel for the Lender, or other evidence, is not reasonably
satisfactory to the Company, the Company shall so notify the Lender promptly
after such determination has been made. Each certificate representing the
securities thus transferred shall bear a legend as to the applicable
restrictions on transferability in order to ensure compliance with the
Securities Act, unless in the opinion of counsel for the Company such legend is
not required in order to ensure compliance with the Securities Act. The Company
may issue stop transfer instructions to its transfer agent in connection with
such restrictions. Subject to the foregoing, transfers of this Note or the
securities underlying this Note shall be recorded in registration books
maintained for such purpose by or on behalf of the Company. Prior to
presentation of this Note or such securities for transfer, the Company shall
treat the registered Lender hereof as the owner and holder of this Note for the
purpose of receiving all payments of principal and interest hereon and for all
other purposes whatsoever.

      14. Assignment by The Company. Neither this Note nor any of the rights,
interests or obligations hereunder may be assigned, by operation of law or
otherwise, in whole or in part, by the Company without the prior written consent
of the Lender.

      15. Notices. All notices, requests, demands, consents, instructions or
other communications required or permitted hereunder shall in writing and faxed,
mailed or delivered to each party at the respective addresses or facsimile
numbers of the parties. All such notices and communications shall be effective
(a) when sent by Federal Express or other overnight service of recognized
standing, on the business day following the deposit with such service; (b) when
mailed, by mail, first class postage prepaid and addressed as aforesaid through
the United States Postal Service, upon receipt; (c) when delivered by hand, upon
delivery; and (d) when faxed, upon confirmation of receipt.

      16. Waivers. The Company hereby waives notice of default, presentment or
demand for payment, protest or notice of nonpayment or dishonor and all other
notices or demands relative to this instrument.

      17. Governing Law. This Note and all actions arising out of or in
connection with this Note shall be governed by and construed in accordance with
the laws of the Commonwealth of Pennsylvania, without regard to the conflicts of
law provisions of the Commonwealth of Pennsylvania, or of any other state.

      IN WITNESS WHEREOF, The Company has caused this Note to be issued as of
the date first written above.

                                             DELTA MUTUAL, INC.
                                             a Delaware corporation

                                             By:   /s/ Peter F. Russo
                                                ---------------------
                                             Name:     Peter F. Russo
                                             Title:    President & CEOCONFORMED
      COPY

     

    Mesquite
      Gold Mine Project

    Credit
      Agreement relating to a US$105,000,000 Term Loan Facility

     

    Dated
      30 March 2007

     

    Western
      Mesquite Mines, Inc. 

    (as
      Borrower)

     

    Western
      Goldfields, Inc. 

    (as
      Guarantor)

     

    Investec
      Bank (UK) Limited 

    (as
      Arranger)

     

    Investec
      Bank (UK) Limited 

    (as
      Agent)

     

    Investec
      Bank (UK) Limited 

    (as
      Security Trustee)

     

    The
      Banks

     

    The
      Hedging Banks

     

    DentonWildeSapte...

    
      
        	
                One
                  Fleet Place

              	
                T+44
                  (0)20 7242 1212

              
	
                London
                  EC4M 7WS

              	
                F
                  +44 (0)20 7246 7777

              
	
                United
                  Kingdom

              	
                info@dentonwildesapte.com

              
	 	
                www.dentonwildesapte.com

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Contents

              
	 	 	 
	
                1

              	
                Definitions
                  and interpretation

              	
                1

              
	 	 	 
	
                2

              	
                Facility

              	
                24

              
	 	 	 
	
                3

              	
                Conditions
                  precedent

              	
                25

              
	 	 	 
	
                4

              	
                Drawdown

              	
                25

              
	 	 	 
	
                5

              	
                Interest

              	
                27

              
	 	 	 
	
                6

              	
                Repayment
                  of Loan

              	
                28

              
	 	 	 
	
                7

              	
                Cancellation

              	
                30

              
	 	 	 
	
                8

              	
                Changes
                  in circumstances

              	
                31

              
	 	 	 
	
                9

              	
                Payments
                  and deliveries

              	
                33

              
	 	 	 
	
                10

              	
                Representations
                  and warranties

              	
                36

              
	 	 	 
	
                11

              	
                Undertakings

              	
                42

              
	 	 	 
	
                12

              	
                Facility
                  Accounts and Permitted Investments

              	
                52

              
	 	 	 
	
                13

              	
                Triggers

              	
                55

              
	 	 	 
	
                14

              	
                Default

              	
                59

              
	 	 	 
	
                15

              	
                Fees
                  and expenses

              	
                61

              
	 	 	 
	
                16

              	
                Amendments
                  and waivers

              	
                63

              
	 	 	 
	
                17

              	
                Set-off

              	
                64

              
	 	 	 
	
                18

              	
                Pro
                  rata sharing

              	
                64

              
	 	 	 
	
                19

              	
                The
                  Agent

              	
                66

              
	 	 	 
	
                20

              	
                Miscellaneous

              	
                71

              
	 	 	 
	
                21

              	
                Notices

              	
                71

              
	 	 	 
	
                22

              	
                Assignments,
                  transfers and syndication

              	
                73

              
	 	 	 
	
                23

              	
                Indemnities

              	
                76

              
	 	 	 
	
                24

              	
                Confidentiality

              	
                77

              
	 	 	 
	
                25

              	
                Law
                  and jurisdiction

              	
                78

              

      

    

     

    
      
        
        

      

      
        Contents
          (i)

        
          

        

      

      
        
        

      

    

     

    
      	
              Schedule
                1 - The Banks

            	
              80

            
	 	 
	
              Schedule
                2 - Part 1 - Conditions Precedent

            	
              81

            
	 	 
	
              Schedule
                2 - Part 2 - Mining Claims

            	
              85

            
	 	 
	
              Schedule
                3 - Drawdown Notice

            	
              104

            
	 	 
	
              Schedule
                4 - Costs Certificate

            	
              105

            
	 	 
	
              Schedule
                5 - Compliance Certificate

            	
              106

            
	 	 
	
              Schedule
                6 - Repayment Schedule

            	
              107

            
	 	 
	
              Schedule
                7 - Form of Transfer Certificate

            	
              108

            
	 	 
	
              Schedule
                8 - Not Used

            	
              111

            
	 	 
	
              Schedule
                9 - Mandatory Cost formulae

            	
              112

            
	 	 
	
              Schedule
                10 - Permits

            	
              114

            
	 	 
	
              Schedule
                11 - Reclamation Bonds

            	
              116

            
	 	 
	
              Schedule
                12 - Form of Consent to Assignment

            	
              117

            
	 	 
	
              Schedule
                13 - Contract Packages

            	
              118

            

    

     

    
      
        
        

      

      
        Contents
          (ii)

        
          

        

      

      
        
        

      

    

     

    Credit
      Agreement 

     

    Dated
      30 March 2007

     

    Between:

     

    
      	
              (1)

            	
              Western
                Mesquite Mines, Inc., a
                Nevada corporation, with its principal executive office at 6502
                E. Highway 78, Brawley, California 92277 (the Borrower);

            

    

     

    
      	
              (2)

            	
              Western
                Goldfields, Inc., an
                Idaho corporation, with its principal executive office at 2 Bloor
                Street
                West, Suite 2102, Box 110, Toronto, Ontario, Canada M4W 3E2 (the
                Guarantor);

            

    

     

    
      	
              (3)

            	
              Investec
                Bank (UK) Limited of
                2 Gresham Street, London EC2V 7QP, United Kingdom (the Arranger);

            

    

     

    
      	
              (4)

            	
              Investec
                Bank (UK) Limited of
                2 Gresham Street, London EC2V 7QP, United Kingdom (the Agent);

            

    

     

    
      	
              (5)

            	
              Investec
                Bank (UK) Limited of
                2 Gresham Street, London EC2V 7QP, United Kingdom (the Security
                Trustee);

            

    

     

    
      	(6)	
              The
                financial institutions listed
                in Schedule 1 Part A, as Banks;
                and

            

    

     

    
      	(7)	
              The
                financial institutions listed
                in Schedule 1 Part B, as Hedging
                Banks.

            

    

     

    It
      is agreed:

     

    
      	1	
              Definitions
                and interpretation 

            

    

     

    
      	1.1	
              Definitions

            

    

     

    In
      this
      Agreement:

     

    Account
      Bank means
      Bank of America Corporation and its successors in title and each successor
      Account Bank from time to time appointed by the Borrower with the consent of
      the
      Agent (not to be unreasonably withheld or delayed).

     

    Account
      Control Agreement means
      the
      agreement dated on or about the date of this Agreement
      entered into between the Borrower, the Security Trustee and the Account
      Bank.

     

    Accounts
      means,
      in
      respect of the Borrower, its unaudited accounts and in respect of the
Guarantor,
      its audited consolidated accounts (in each case including all additional
      information and
      notes
      to the accounts), together with any relevant directors' report and auditors'
      report.

     

    Additional
      Cost Rate has
      the
      meaning given in Schedule 9. 

     

    Additional
      Drawing Conditions mean
      each
      of the following:

     

    
      	
            	(a)	
              in
                accordance with the Base Case Model (which shall be consistent with
                the
                Development Plan) the:

            

    

    
    

     

    
      	
            	(i)	
              Project
                Life Cover Ratio is greater than
                2:0;

            

    

     

    
      
        	
              	(ii)	
                Loan
                  Life Cover Ratio is greater than 1.7:0;

              

      

    

     

    
      	
            	(iii)	
              forward
                looking Debt Service Cover Ratio is greater than 1.5:0;
                and

            

    

     

    
      
        
        

      

      
        Page
          1

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iv)	
              Reserve
                Tail is greater than 30 per cent,

            

    

     

    
      in
        each
        case as such terms are defined in the Base Case Model;

    

     

    
      	 	
              (b)

            	
              appropriate
                revisions have been agreed and made to the Approved Hedging Programme;

            

    

     

    
      	 	
              (c)

            	
              no
                Default or Trigger has occurred and is continuing or would occur
                as a
                result of making
                the relevant Advance; and

            

    

     

    
      	 	
              (d)

            	
              the
                repayment schedule set out in Schedule 6 has been amended to the
                extent
                necessary
                to reflect the amount of the Loan on the basis that the relevant
                Advance
                is made.

            

    

     

    Advance
      means
      an
      advance made or to be made to the Borrower under the Facility or, as the
case
      may
      be, the outstanding principal amount of any such advance (including, for the
      avoidance of doubt, any such Advances as consolidated in accordance with Clause
      5.2.6).

     

    Affiliate
      means,
      in
      relation to a person or entity, a Subsidiary or a Holding Company of that person
      or entity and any other Subsidiary of that Holding Company.

     

    Agency
      Fees Letter means
      the
      letter dated on or about the date of this Agreement from the Agent to the
      Borrower relating to certain fees payable to the Agent by the Borrower in
      relation to
      the
      Financing Documents, being described on its face as the "Agency Fees
      Letter".

     

    Agent
      means
      Investec Bank (UK) Limited in its capacity as agent for the Banks, its
      successors in title and each successor appointed in accordance with Clause
      19.

     

    Agreed
      Insurance Programme means
      the
      insurance programme entered into by the Borrower
      and the Agent on or prior to the Effective Date and relating to the insurances
      to be effected
      and maintained by the Borrower in relation to the Project throughout the
      Security Period,
      such programme to include, without limitation:

     

    
      	 	
              (a)

            	
              undertakings
                from the Borrower in relation to the insurances to be effected and
                maintained;

            

    

     

    
      	 	
              (b)

            	
              details
                of the insurance policies to be effected and maintained, including
                details
                as to the
                type of cover, the names of the insured parties, details of the property
                insured, commencement
                and expiry dates, levels of insurance cover, maximum deductibles,
                geographical limits and principal extensions and
                exclusions;

            

    

     

    
      	 	
              (c)

            	
              to
                the extent not included in the Security Documents, a form of notice
                of
                assignment of insurances;

            

    

     

    
      	
            	(d)	
              full
                wording of the Financing Party endorsements;
                and

            

    

     

    
      	
            	(e)	
              a
                form of broker's letter to the
                Agent,

            

    

     

    as
      the
      same may be amended from time to time with the consent of the Borrower and
      the
Agent.

     

    Approved
      Committed Equity means
      Committed Equity in an amount no greater than the lesser
      of:

     

    
      	
            	(a)	
              US$20,000,000;
                and

            

    

     

    
      	 	
              (b)

            	
              such
                amount as would ensure that, on the making of the relevant Advance,
                the
                ratio of the Loan to Equity is no greater than
                80:20.

            

    

     

    
      
        
        

      

      
        Page
          2

        
          

        

      

      
        
        

      

    

    Approved
      Fuel Hedging Counterparty means
      any
      Qualifying Bank other than a Bank or a Hedging
      Bank that has been approved in writing by the Agent (acting on the instructions
      of the Majority
      Banks, such approval not to be unreasonably withheld or delayed).

     

    Approved
      Fuel Hedging Derivative Transaction means
      any
      Derivative Transaction for the forward purchase of fuel or other options
      strategies relating to the purchase of fuel by the Borrower that has been
      approved in writing by the Agent (acting on the instructions of the Majority
      Banks, such approval not to be unreasonably withheld or delayed).

     

    Approved
      Fuel Hedging Document means
      any
      document relating to an Approved Fuel Hedging
      Derivative Transaction entered into by the Borrower with an Approved Fuel
      Hedging Counterparty.

     

    Approved
      Fuel Hedging Expenses means
      in
      respect of a period, all amounts payable during that period in respect of the
      Borrower's liabilities under any Approved Fuel Hedging Document.

     

    Approved
      Hedging Programme means
      the
      approved hedging programme entered into by the
      Borrower and the Hedging Banks on or prior to the Effective Date and relating
      to
      the Derivative
      Transactions to be entered into between the Borrower and the Hedging Banks
      for
      the Facility and relating to the Project, as the same may be amended from time
      to time with the consent of the Borrower, the Agent and the Hedging
      Banks.

     

    Arrangement
      Fee Letter means
      the
      letter dated on or about the date of this Agreement from the Arranger to the
      Borrower relating to arrangement fees for the Facility, being described on
      its
      face as the "Arrangement Fee Letter".

     

    Assets
      means
      all
      such assets and rights to enable the Borrower (or a prudent mining developer
      and
      operator) to design, construct, own, operate, manage, maintain and repair a
      project such as the Project, in accordance with the Transaction Documents,
      including:

     

    
      	
            	(a)	
              land
                and buildings;

            

    

     

    
      	 	
              (b)

            	
              any
                equipment or other property (whether acquired, leased or held and
                used or
                intended for use in connection with the
                Project);

            

    

     

    
      	 	
              (c)

            	
              books
                and records (including operating and maintenance manuals, health
                and
                safety manuals, design and other technical
                information);

            

    

     

    
      	
            	(d)	
              spare
                parts, tools and other assets;

            

    

    
      	 	 	 

      	
            	(e)	
              any
                contractual rights;

            

    

     

    
      	
            	(f)	
              intellectual
                property rights,

            

    

     

    and
      including all works and operations in connection with the construction,
      development, expansion,
      maintenance and operation of the Mesquite Mine.

     

    Auditors
      means
      H.J. and Associates, PriceWaterhouseCoopers or any other firm of chartered
      accountants of internationally recognised standing that has been appointed
      as
      auditors of the Guarantor.

     

    Available
      Commitment means,
      in
      relation to a Bank, its Commitment in the Facility less its Participation
      in the Loan.

     

    Available
      Facility means
      the
      aggregate of the Available Commitments.

     

    Availability
      Period means
      the
      period starting on the date of this Agreement and ending on:

     

    
      	
            	(a)	
              in
                respect of US$ 85,000,000 of the total Commitments, the earlier of
                the
                Completion Date
                and the Longstop Date; and

            

    

     

    
      
        
        

      

      
        Page
          3

        
          

        

      

      
        
        

      

    

     

    
      	
            	(b)	
              in
                respect of the total Commitments available for refinancing the Approved
                Committed Equity, the date falling 12 Months after the Completion
                Date.

            

    

     

    Bank
      Liabilities means
      all
      obligations and liabilities (whether present or future, actual or contingent,
      as principal or surety and whether severally or jointly) of the Security
      Companies to the
      Financing Parties under or arising out of or in connection with the Financing
      Documents.

     

    Banks
      means
      the
      banks and other financial institutions listed as such in Schedule 1, Part A
      and
      any
      Bank transferee pursuant to a Transfer Certificate, together with their
      respective successors
      in title, and Bank
      means
      any
      of them, provided that any bank or financial institution
      which transfers all of its Commitment and Participation (as applicable) in
      accordance with
      Clause 22 shall cease to be a Bank.

     

    Banks'
      Advisers means
      the
      Banks' Insurance Adviser, the Independent Technical Consultant,
      the Banks' Model Auditor, the Banks' Legal Advisers and such other advisers
      or
      consultants as the Agent may appoint in connection with the Project or any
      Transaction Document
      with the prior approval of the Majority Banks (but to avoid doubt, excluding
      any
such
      advisers or consultants individually appointed by any Bank (other than the
      Agent)) and Bank's
      Adviser means
      any
      of them.

     

    Banks'
      Insurance Adviser means
      Willis or such other person or entity as the Agent may appoint to perform such
      role with the prior approval of the Majority Banks.

     

    Banks'
      Legal Advisers means
      Denton Wilde Sapte LLP in respect of matters of English law, Holland
      & Hart LLP in respect of matters of US law or such other person(s) or
      entity(ies) as the Agent
      may
      appoint to perform any such role with the prior approval of the Majority
      Banks.

     

    Banks'
      Model Auditor means
      Duff & Phelps LLC or such other person or entity as the Agent may appoint to
      perform such role with the prior approval of the Majority Banks.

     

    Base
      Case Model means
      the
      projected production, income and expenditure of the Borrower (in respect of
      each
      Monthly period for the period from the date of this Agreement until the
Target
      Completion Date and thereafter in respect of each six Month period) based on
      the
      Development Plan, Reserve Statement and on prudent assumptions and agreed by
      the
      Borrower and the Agent as the base case model for the purposes of this Agreement
      and delivered
      in accordance with Schedule 2, Part 1, paragraph 3(e), including the methodology
      used for computing such projections.

     

    Break
      Costs means
      the
      amount (if any) by which:

     

    
      	 	
              (a)

            	
              the
                interest which a Bank should have received for the period from the
                date of
                receipt of
                all or any part of its participation in an Advance or Unpaid Sum
                to the
                last day of the current
                Interest Period in respect of that Advance or Unpaid Sum, had the
                principal amount or Unpaid Sum received been paid on the last day
                of that
                Interest Period,

            

    

     

    exceeds:

     

    
      	 	
              (b)

            	
              the
                amount which that Bank would be able to obtain by placing an amount
                equal
                to the principal
                amount or Unpaid Sum received by it on deposit with a leading bank
                in the
                London
                Interbank Market for a period starting on the Business Day following
                receipt or recovery and ending on the last day of the current Interest
                Period.

            

    

     

    Business
      Day means
      a
      day (other than a Saturday or Sunday) on which banks are open for general
      business in London and New York.

     

    Capital
      Expenditure means
      any
      expenditure which will be treated as capital expenditure in accordance with
      United States GAAP.

     

    Capital
      Lease means
      any
      lease or hire purchase contract which would, in accordance with United States
      GAAP, be treated as a finance or capital lease.

     

    
      
        
        

      

      
        Page
          4

        
          

        

      

      
        
        

      

    

     

    Certified
      Copy means,
      in
      relation to a document, a copy of that document bearing the endorsement
      "Certified a true, complete and accurate copy of the original", which has been
      signed and dated by a duly authorised officer of the relevant company and which
      complies with that endorsement.

     

    CFADS
      means,
      in
      respect of a period, the cash flow available for Debt Service in respect of
      that
      period, and shall be equal to Operating Revenues for that period less Operating
      Costs for that
      period.

     

    Commitment
      means,
      in
      relation to a Bank, the amount which that Bank has committed to the Facility.
      The initial Commitment of each Bank in respect of the Facility is set out
      opposite its name in Schedule 1, Part A or the amount of Commitment transferred
      to such bank pursuant to Clause 22 as set out in the relevant Transfer
      Certificate.

     

    Committed
      Equity means
      US$48,400,000 of Equity.

     

    Commitment
      Fees means
      the
      fees payable by the Borrower pursuant to Clause 15.4.

     

    Completion
      means
      the
      satisfaction and completion by the Borrower of the Completion Test as certified
      by the Independent Technical Consultant (with respect to the technical and
      performance tests) and as certified by the Agent to the Borrower and the other
      Financing Parties in accordance with the procedure set out in the Completion
      Test.

     

    Completion
      Date means
      the
      date on which Completion occurs.

     

    Completion
      Test means
      the
      tests and conditions set out in the document referred to in Schedule 2 Part
      1,
      paragraph 7.

     

    Compliance
      Certificate means
      a
      certificate executed by an authorised officer of the Borrower, in the form
      set
      out in Schedule 5.

     

    Consent
      to Assignment means,
      for any Material Contract, a written consent to the collateral assignment
      of such Material Contract to the Secured Parties under the Security Agreement
      substantially in the form of Schedule 12, together with such amendments or
      supplements as are reasonably required by the Agent having regard to such
      Material Contract and the rights and
      obligations arising thereunder.

     

    Cost
      Overrun means
      Capital Expenditure or Operating Costs, not being a Variation, incurred or
      to be
      incurred by the Borrower to achieve Completion that have been certified in
      writing by the
      Agent
      (in consultation with the Independent Technical Consultant) as not having been
      provided for adequately in the Base Case Model and the Initial Development
      Plan
      having taken
      account of:

     

    
      	 	
              (a)

            	
              any
                contingency amount or items provided for in the Base Case Model and
                the
                Development Plan; and

            

    

     

    
      	 	
              (b)

            	
              other
                line items in the Base Case Model and the Development Plan that could
                be
                applied
                in respect of such Capital Expenditure or Operating Costs to the
                extent
                that those
                line items have either:

            

    

     

    
      	
            	(i)	
              already
                been completed and the Capital Expenditure or Operating Costs applied
                in completing those line items was less than anticipated in the Base
                Case
                Model and the Development Plan; or

            

    

     

    
      	
            	(ii)	
              not
                been completed but the Borrower has demonstrated to the satisfaction
                of
                the Agent (in consultation with the Independent Technical Consultant)
                that
                the Capital
                Expenditure or Operating Costs to be applied in completing those
                line
                items
                will be less than is anticipated in the Base Case Model and the
                Development
                Plan.

            

    

     

    
      
        
        

      

      
        Page
          5

        
          

        

      

      
        
        

      

    

     

    Cost
      Overrun Account means
      the
      account of that name held and maintained by the Borrower pursuant to Clause
      12.7.

     

    Costs
      Certificate means
      a
      certificate of the Borrower in the form attached at Schedule 4 certifying that
      the amounts in respect of which the relevant Advance is to be applied are
      Permitted Capital Expenditure or Operating Costs and certifying:

     

    
      	 	
              (a)

            	
              the
                value of the works completed (not being Cost Overruns or Variations)
                as at
                the date
                of the relevant certificate and the amount which is due to be paid
                in
                connection with
                such completed works;

            

    

     

    
      	 	
              (b)

            	
              all
                other amounts to be paid as part of such Permitted Capital Expenditure
                (not being Cost
                Overruns or Variations) or Operating Costs and, in respect of any
                such
                items of Permitted
                Capital Expenditure with a value of US$250,000 or more, itemizing
                the
                same;
                and

            

    

     

    
      	 	
              (c)

            	
              any
                Cost Overruns and approved Variations and itemizing any Permitted
                Capital
                Expenditures in relation to the
                same.

            

    

     

    Dangerous
      Materials means
      any
      element or substance, whether consisting of gas, liquid, solid
      or
      vapour, identified by any applicable Environmental Law to be, to have been,
      or
      to be capable
      of being or becoming, harmful to mankind, human senses or any living organism
      or
      ecological system or damaging to the Environment.

     

    Debt
      means
      the
      aggregate of:

     

    
      	
            	(a)	
              the
                Bank Liabilities; and

            

    

     

    
      	
            	(b)	
              the
                Hedging Liabilities (if any).

            

    

     

    Debt
      Service means,
      in
      respect of a period, the amount of Financing Costs and Financing Principal
      payable during that period.

     

    Debt
      Service Reserve Account means
      the
      account held and maintained by the Borrower pursuant to Clause
      12.6.

     

    Deed
      of Trust means
      the
      deed of trust dated on or about the date of this Agreement and entered
      into between the Borrower and the Security Trustee.

     

    Default
      means
      an
      Event of Default or any event or circumstance specified in Clause 14 which
      would
      (with the expiry of a grace period, the giving of notice, the making of any
      determination or the satisfaction of any condition under the Financing Documents
      or any combination of any of the foregoing) be an Event of Default.

     

    Derivative
      Transaction means
      any
      transaction which is (a) a rate swap transaction, basis swap, forward rate
      transaction, commodity swap, commodity option, equity or equity index
swap,
      equity or equity index option, bond option, interest rate option, foreign
      exchange transaction,
      forward commodity transaction, credit derivative transaction, repurchase or
      reverse
      repurchase transaction, securities lending transaction, cap transaction, floor
      transaction,
      collar transaction, currency swap transaction, cross-currency rate swap
transaction,
      currency option or any other similar transaction (including any option with
      respect to any of these transactions) or (b) any combination of these
      transactions.

     

    Development
      Plan means
      the
      Initial Development Plan or the latest Development Plan (if any) delivered
      to
      and approved by, the Agent in accordance with Clause 11.1 (c).

     

    Disposal
      means
      a
      sale, assignment, transfer or other disposition or disposal (including byway
      of
      lease or loan) by a person or entity of all or part of its assets, whether
      by
      one transaction or a series of transactions and whether at the same time or
      over
      a period of time.

     

    
      
        
        

      

      
        Page
          6

        
          

        

      

      
        
        

      

    

     

    Distribution
      means
      any
      payment, repayment, dividend, redemption, discharge by way of set-off,
      counterclaim or otherwise or other distribution, whether in cash or in kind,
      made by or on behalf of the Borrower to the Guarantor or any other Affiliate
      howsoever the same may arise and whether pursuant to the terms of an agreement
      or otherwise, provided that the following payments shall not constitute
      Distributions:

     

    
      	 	
              (a)

            	
              payments
                by the Borrower to the Guarantor in accordance with the Management
                Agreement; and

            

    

     

    
      	 	
              (b)

            	
              payments
                by the Borrower to the Guarantor to reimburse the Guarantor for costs
                incurred
                by it in accordance with the Development Plan and the Base Case
                Model.

            

    

     

    Distributions
      Account means
      the
      account held and maintained by the Borrower pursuant to Clause
      12.

     

    Drawdown
      Date means
      the
      date on which an Advance is made, or is proposed to be made, as the case may
      be.

     

    Drawdown
      Notice means
      a
      notice substantially in the form set out in Schedule 3. 

     

    Effective
      Date has
      the
      meaning given to it by Clause 3.1.

     

    Encumbrance
      means
      any
      mortgage, charge, pledge, lien, assignment by way of security, retention
      of title provision, or other security interest securing any obligation of any
      person or entity
      or
      any other agreement or arrangement in any jurisdiction having a similar
      effect.

     

    Environment
      means
      all
      or any of the following media: air (including air within buildings or other
      structures and whether above or below ground); land (including buildings and
      any
      other structures
      or erections in, on or under it and any soil and anything below the surface
      of
      land); land
      covered with water; and water (including sea, ground and surface
      water).

     

    Environmental
      Authorisations means
      all
      permits, consents, consent decrees, licences and authorisations required
      pursuant to applicable Environmental Law for any of the development of the
      Project and operation of the Mining Operations.

     

    Environmental
      Law means
      any
      Law concerning:

     

    
      	 	
              (a)

            	
              pollution
                or contamination of the Environment or the removal, abatement, remediation
                or
                reclamation thereof or other response
                thereto;

            

    

     

    
      	 	
              (b)

            	
              harm,
                whether actual or potential, to mankind and human senses, living
                organisms
                and ecological systems;

            

    

     

    
      	 	
              (c)

            	
              the
                generation, manufacture, processing, management, distribution, use
                (including abuse),
                treatment, storage, disposal, transport or handling of Dangerous
                Materials; or

            

    

     

    
      	 	
              (d)

            	
              the
                emission, leak, release or discharge into the Environment of any
                noise,
                vibration, dust,
                fumes, gas, odours, smoke, steam, effluvia, heat, light, radiation
                (of any
                kind), infection, electricity or any Dangerous Material and any matter
                or
                thing capable of constituting a nuisance or an actionable tort of
                any kind
                in respect of such matters;

            

    

     

    provided
      that where the Equator Principles would impose a greater obligation or standard
      than any
      applicable Environmental Law, those Equator Principles shall be deemed to be
      an
Environmental
      Law for the purposes of this definition to the extent such Equator Principles
      are by
      their
      terms applicable to the Borrower or the Project and provided further that the
      Equator Principles
      will not apply to the Borrower or the Project at any time if such application
      of, or the Borrower's
      or the Project's compliance with, the Equator Principles will breach or
      otherwise result in a non-compliance with any Law applying to the Borrower
      or
      the Project at that time.

     

    
      
        
        

      

      
        Page
          7

        
          

        

      

      
        
        

      

    

     

    Equator
      Principles mean
      the
      framework principles entitled the Equator Principles adopted by the World
      Bank/International Finance Corporation and various other financial institutions
      in determining,
      assessing and managing environmental and social risk in project financing as
      updated
      by such institutions from time to time.

     

    Equipment
      Purchase Orders means
      the
      following purchase orders made by the Borrower for equipment in connection
      with
      the Project:

     

    
      	
            	(a)	
              No.
                2976 to Empire Machinery for the purchase of two O&K hydraulic
                excavators;

            

    

    
      	 	 	 

      	
            	(b)	
              No.
                2977 to Terex Corporation for the purchase of eleven unit rigs model
                MT3700AC;

            

      	 	 	 

    

    
      	
            	(c)	
              No.
                2978 to Empire Machinery for the purchase of two Caterpillar 16M
                graders;

            

    

    
      	 	 	 

      	
            	(d)	
              No.
                2979 to Empire Machinery for the purchase of three Drilltech drill
                rigs;

            

    

     

    
      	
            	(e)	
              No.
                2980 to Empire Machinery for the purchase of Caterpillar 834H wheel
                dozer;

            

    

    
      	 	 	 

      	
            	(f)	
              No.
                2981 to Empire Machinery for the purchase of two Caterpillar D10T
                tractors;

            

      	 	 	 

    

    
      	
            	(g)	
              No.
                2982 to Empire Machinery for the purchase of two 777 off-highway
                water
                trucks; (h) No.
                2983 to GCR Tire Center for the purchase of truck tires;
                and

            

    

     

    
      	
            	(i)	
              No.
                2974 to LeTourneau Sales & Service for the purchase of one L-1350
                Front End Loader Base Machine and related
                items.

            

    

     

    Equity
      means,
      at
      any time, the aggregate of:

     

    
      	 	
              (a)

            	
              the
                amount of the fully paid up ordinary share capital in the Borrower
                subscribed for in cash
                at that time; and

            

    

     

    
      	
            	(b)	
              Subordinated
                Debt.

            

    

     

    Event
      of Default any
      event
      or circumstance specified as such in Clause 14.

     

    Excess
      Cashflow means,
      on
      any Repayment Date, the amount by which A exceeds B

     

    where:

     

    
      	
            	A	
              is
                the amount (as estimated by the Borrower on the Business Day falling
                2
                Business Days
                before the relevant Repayment Date) that will be standing to the
                credit of
                the Proceeds
                Account on that Repayment Date following the payments or transfers
                referred
                to in Clauses 12.5.2(a) to 12.5.2(d) less the amount, if any, actually
                standing to the credit of the Proceeds Account on the previous Repayment
                Date following the payments or transfers made on that previous Repayment
                Date in accordance with Clauses
                12.5.2(a) to 12.5.2(d), that was retained in the Proceeds Account;
                and

            

    

     

    
      	
            	B	
              is
                US$4,000,000.

            

    

     

    Excluded
      Taxes means:

     

    
      	
            	(a)	
              Tax
                assessed on a Financing Party under the Law of the jurisdiction in
                which
                that Financing
                Party is incorporated or, if different, the jurisdiction (or
                jurisdictions) in which that
                Financing Party is treated as resident for tax purposes or under
                the Law
                of the jurisdiction
                in which that Financing Party's Facility Office is located, in respect
                of
                amounts received or receivable in that jurisdiction if, in either
                case,
                that Tax is imposed
                or calculated by reference to the net income received or receivable
                by
                that Financing
                Party;

            

    

     

    
      
        
        

      

      
        Page
          8

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              for
                any period with respect to which a Financing Party has failed to
                provide
                the Borrower
                with the forms required by Clause 9.7.4, any United States withholding
                tax
                imposed
                by reason of such failure; and

            

    

     

    
      	 	
              (c)

            	
              any
                Taxes imposed as a direct result of a Financing Party voluntarily
                effecting a change after the date of this Agreement in its jurisdiction
                of
                principal operations (but excluding any change as a result of, or
                in
                response to, any Law or change in Law after the date of this
                Agreement).

            

    

     

    Facility
      means
      the
      US Dollar term loan facility granted to the Borrower under this Agreement.
      

     

    Facility
      Accounts means
      each account listed in Clause 12.2.1.

     

    Facility
      Limit means
      US$105,000,000 as increased, reduced or cancelled in accordance with the express
      terms of this Agreement.

     

    Facility
      Office means
      the
      office or offices notified by a Bank to the Agent in writing on or before
      the date it becomes a Bank (or, following that date, by not less than five
      Business Days' written
      notice) as the office or offices through which it will perform its obligations
      under this Agreement.

     

    Feasibility
      Study means
      the
      study titled "Feasibility Study on the Mesquite Mine Expansion, Imperial
      County, California", prepared by Micon International Limited and dated 15 August
      2006 delivered to the Agent prior to the date of this Agreement, and including
      any further studies
      conducted by the Borrower or pursuant to the Bank's due diligence process prior
      to the Effective
      Date.

     

    Fees
      Letters means
      the
      Arrangement Fee Letter and the Agency Fees Letter. 

     

    Final
      Hedging Maturity Date means
      31
      December 2014.

     

    Final
      Repayment Date means
      31
      December 2014, or such earlier date as the Loan is repaid in
      full.

     

    Financial
      Year means
      the
      calendar year ending 31 December of that year. 

     

    Financing
      Costs means,
      in
      respect of a period, the aggregate of:

     

    
      	 	
              (a)

            	
              interest
                paid or payable in that period under this Agreement (including default
                interest paid
                or payable pursuant to Clause 5.4) and any sums paid or payable in
                respect
                of Clauses
                8.1, 8.2, 8.6 and 9.7; and

            

    

     

    
      	 	
              (b)

            	
              all
                commitment fees paid or payable under Clause 15.4 and fees paid or
                payable
                pursuant to Clause 15.6 and the Agency Fees
                Letter,

            

    

     

    plus
      net
      payments, if any, by the Borrower under any Hedging Document in that period
      or
      less net
      payments, if any, to the Borrower under any Hedging Document in that period
      (as
      the case may
      be).

     

    Financing
      Documents means
      all
      or any of:

     

    
      	
            	(a)	
              this
                Agreement;

            

    

    
      	 	 	 

      	
            	(b)	
              the
                Intercreditor Agreement;

            

      	 	 	 

    

    
      	
            	(c)	
              the
                Hedging Documents;

            

    

    
      	 	 	 

      	
            	(d)	
              the
                Security Documents;

            

      	 	 	 

    

    
      	
            	(e)	
              the
                Fees Letters; and

            

    

     

    
      
        
        

      

      
        Page
          9

        
          

        

      

      
        
        

      

    

     

    
      	
            	(f)	
              such
                other agreements and documents in respect of the Facility and the
                Project
                entered
                into from time to time pursuant to any of the foregoing to which
                any of
                the Security
                Companies or Key Contractual Counterparties are a counterparty with
                any
                Financing
                Party or Hedging Bank and which (i) are in form and substance satisfactory
                to
                the Borrower and (ii) the Agent determines shall be a Financing
                Document.

            

    

     

    Financing
      Parties means
      the
      Agent, the Arranger, the Security Trustee and the Banks and Financing
      Party means
      any
      of them.

     

    Financing
      Principal means,
      in
      respect of a period, principal repaid or repayable under this Agreement
      in that period.

     

    First
      Repayment Date means
      31
      December 2008.

     

    Guarantee
      means
      the
      guarantee issued by the Guarantor on or about the date of this Agreement
      in favour of the Security Trustee guaranteeing the obligations of the Borrower
      under the Financing Documents.

     

    Hedging
      Banks means
      the
      banks and financial institutions listed as such in Schedule 1, Part B and their
      respective assignees, transferees or successors in title under the Hedging
      Documents
      with respect to transfers or assignments made in accordance with Clause 22.6
      and
Hedging
      Bank means
      any
      of them, provided that any bank or financial institution which transfers all
      its
      rights and obligations under the Hedging Documents shall cease to be a
Hedging
      Bank.

     

    Hedging
      Documents means:

     

    
      	 	
              (a)

            	
              the
                ISDA Master Agreements and schedules thereto between the Borrower
                and any
                Hedging
                Bank;

            

    

     

    
      	 	
              (b)

            	
              each
                other document entered into by the Borrower and any Hedging Bank
                from time
                to time
                confirming each transaction entered into pursuant to any such ISDA
                Master
                Agreement
                and the schedule thereto; and

            

    

     

    
      	 	
              (c)

            	
              any
                other agreement entered into by the Borrower with any Hedging Bank
                pursuant to the
                Approved Hedging Programme or in respect of Hedging
                Liabilities.

            

    

     

    Hedging
      Expenses means
      in
      respect of a period, all amounts payable during that period in respect of the
      Borrower's Hedging Liabilities.

     

    Hedging
      Liabilities means
      all
      Indebtedness of the Borrower to the Hedging Banks under any Permitted Hedging
      Transaction.

     

    Historic
      DSCR means,
      as
      at a Repayment Date and the Completion Date and in respect of the 6 Month period
      immediately preceding that Repayment Date or, as the case may be, the Completion
      Date, the ratio of:

     

    
      	
            	(a)	
              the
                CFADS of the Borrower for that 6 Month period;
                to

            

    

     

    
      	
            	(b)	
              the
                Debt Service of the Borrower for that 6 Month
                period.

            

    

     

    Holding
      Company means
      (i)
      in respect of any corporation, any person or entity which directly or
      indirectly, owns or controls more than 50% of the issued and outstanding equity
      securities having
      ordinary voting power to elect a majority of the board of directors or such
      corporation (irrespective of whether at the time capital stock of any other
      class or classes of such corporation
      shall or might have voting power upon the occurrence of any contingency) at
      the
time
      (ii)
      in respect of any partnership, joint venture, limited liability company or
      other
      entity, any person
      or
      entity which directly or indirectly, owns or controls more than 50% of the
      equity interest having the power to vote, direct or control the management
      of
      such partnership, limited liability company, joint venture or other entity
      at
      the time.

     

    
      
        
        

      

      
        Page
          10

        
          

        

      

      
        
        

      

    

     

    Indebtedness
      means,
      any indebtedness for or in respect of:

     

    
      	
            	(a)	
              moneys
                borrowed;

            

    

    
      	 	 	 

      	
            	(b)	
              any
                amount raised by acceptance under any form of acceptance credit
                facility;

            

    

     

    
      	 	
              (c)

            	
              any
                amount raised pursuant to any note purchase facility or the issue
                of
                bonds, notes, debentures,
                loan stock or any similar
                instrument;

            

    

     

    
      	
            	(d)	
              the
                amount of any liability in respect of any Capital
                Lease;

            

    

     

    
      	 	
              (e)

            	
              receivables
                sold or discounted (other than any receivables to the extent they
                are sold
                on
                a non-recourse basis);

            

    

     

    
      	 	
              (f)

            	
              any
                amount raised under any other transaction having the commercial effect
                of
                a borrowing;

            

    

     

    
      	
            	(g)	
              any
                Derivative Transaction;

            

    

     

    
      	
            	(h)	
              the
                supply of any goods or services on payment terms in excess of 180
                days
                (excluding
                any terms agreed in the ordinary course of business for scheduled
                payments
                against supplies being made over a period in excess of 180 days)
                or the
                supply of any goods or services which is more than 180 days past
                the
                original due date for payment;

            

    

     

    
      	
            	(i)	
              any
                counter-indemnity obligation in respect of the guarantee, indemnity,
                bond,
                standby or documentary letter of credit or any other instrument issued
                by
                a bank or financial institution;

            

    

     

    
      	
            	(j)	
              any
                shares which are expressed to be
                redeemable;

            

    

     

    
      	
            	(k)	
              trade
                creditors in the ordinary course of business but only if in a total
                aggregate amount
                at any time greater than US$5,000,000 (or its equivalent in any other
                currency);
                and

            

    

     

    
      	
            	(l)	
              the
                amount of any liability in respect of any guarantee or indemnity
                for any
                of the items referred to in paragraphs (a) to (k)
                above.

            

    

     

    When
      calculating the value of any such Derivative Transaction for the purpose of
      the
      definition of Indebtedness such value shall be as determined by the Agent
      (acting reasonably) to be the gross
      marked to market value and shall only be taken into account if such value
      results in a gross
      exposure to such person or entity.

     

    Independent
      Technical Consultant means
      Chlumsky Armbrust & Meyer LLC or such other independent
      technical consultant as maybe appointed by the Agent (acting on the instructions
      of the Majority Banks) and agreed by the Borrower (acting reasonably) from
      time
      to time.

     

    Initial
      Development Plan means
      the
      business plans for the Borrower and the Mining Operations
      respectively describing the nature and extent of, and prospects for, the
      Borrower's businesses
      and operations as set out in the Feasibility Study (and which shall incorporate
      the Reserve
      Statement, the Base Case Model and Operating Budget), delivered pursuant to
      Schedule
      2, Part 1, paragraph 3(f).

     

    Information
      Package means:

     

    
      	
            	(a)	
              the
                Feasibility Study;

            

    

    
      	 	 	 

      	
            	(b)	
              the
                Accounts of the Borrower for the 2006 Financial
                Year;

            

    

    
      	 	 	 

      	
            	(c)	
              the
                Accounts of the Guarantor for the 2006 Financial
                Year;

            

    

     

    
      
        
        

      

      
        Page
          11

        
          

        

      

      
        
        

      

    

     

    
      	
            	(d)	
              the
                unaudited results of the Borrower and the Guarantor for the first
                3 Months
                of 2007;

            

    

     

    
      	 	
              (e)

            	
              copies
                of the Mineral Lease and Landfill Facilities Lease Agreement, the
                Equipment Purchase Orders and the Refining
                Agreement;

            

    

     

    
      	
            	(f)	
              a
                draft copy of the Management Agreement;
                and

            

    

     

    
      	
            	(g)	
              the
                Initial Development Plan (including the Base Case
                Model).

            

    

     

    Insurances
      means,
      at
      any time, the insurances effected and maintained at such time pursuant
to
      the
      Agreed Insurance Programme.

     

    Insurers
      means,
      at
      any time, the insurers and underwriters of all or any of the risks insured
      under
      the
      Insurances at that time, or any of them as approved by the Agent pursuant to
      the
      Agreed Insurance Programme.

     

    Intercreditor
      Agreement means
      the
      intercreditor agreement between the Borrower, the Guarantor,
      the Agent, the Security Trustee, the Banks and the Hedging Banks dated on or
      about the date of this Agreement.

     

    Interest
      Date means
      the
      last day of an Interest Period. 

     

    Interest
      Margin means
      in
      respect of each Advance:

     

    
      	 	
              (a)

            	
              2.20
                per cent per annum from the date of this Agreement until the Interest
                Date
                immediately following the Completion Date;
                and

            

    

     

    
      	 	
              (b)

            	
              1.75
                per cent per annum following the Interest Date immediately following
                the
                Completion Date.

            

    

     

    Interest
      Period means,
      in
      relation to an Advance, each period determined in accordance with Clause
      5.2 and, in relation to an Unpaid Sum, each period determined in accordance
      with
Clause
      5.3.

     

    ISDA
      Master Agreement means
      the
      ISDA Master Agreement (Multicurrency-Cross Border) as published in 2002 by
      the
      International Swap and Derivatives Association Inc..

     

    ITC
      Report means
      the
      report (including an environmental appraisal) by the Independent Technical
      Consultant in the agreed form to be prepared every 3 Months from the period
      commencing as at the date of this Agreement until the Completion Date and from
      the Completion
      Date on an annual basis or as may be otherwise requested by the Agent (acting
      on
      the instructions of the Majority Banks) from time to time.

     

    Key
      Contractual Counterparty means:

     

    
      	
            	(a)	
              the
                Refiner;

            

    

     

    
      	 	
              (b)

            	
              any
                other person or entity (other than a Security Party) who, after the
                date
                of this Agreement, enters into a Material Contract of the type listed
                in
                paragraph (f) of the definition of Material Contract and who the
                Agent
                reasonably determines should be a "Key Contractual
                Counterparty".

            

    

     

    Law
      means
      any
      applicable legislation, any common or customary law, constitution, decree,
      judgment,
      order, ordinance, treaty, regulation or other legislative measure in any
      jurisdiction having
      legal or judicial effect whether of a civil or criminal nature.

     

    
      
        
        

      

      
        Page
          12

        
          

        

      

      
        
        

      

    

     

    Leach
      Pad Construction Contract means
      the
      contract entered or to be entered into by the Borrower and a contractor relating
      to the leach pad construction work contemplated in the Initial Development
      Plan
      and Base Case Model, in a form and substance satisfactory to the Agent (acting
      reasonably).

     

    LIBOR
      means,
      in
      relation to any Advance:

     

    
      	
            	(a)	
              the
                applicable Screen Rate; or

            

    

     

    
      	 	
              (b)

            	
              (if
                no Screen Rate is available for US Dollars for the Interest Period
                of that
                Advance) the arithmetic mean (rounded upwards to four decimal places)
                of
                the rates as supplied to
                the Agent at its request quoted by the Reference Banks to leading
                banks in
                the London
                interbank market,

            

    

     

    as
      of
      11.00 am on the Quotation Day for the offering of deposits in US Dollars and
      for
      a period comparable
      to the Interest Period for that Advance.

     

    Loan
      means,
      from time to time, the aggregate of all Advances outstanding at such time.
      

     

    Longstop
      Date means
      the
      date falling 6 Months after the Target Completion Date. 

     

    Majority
      Banks means:

     

    
      	
            	(a)	
              whilst
                no Event of Default is continuing:

            

    

     

    
      	
            	(i)	
              a
                Bank or Banks whose Participations;
                and

            

    

    
      	 	 	 

      	
            	(ii)	
              Hedging
                Bank or Hedging Banks whose Hedging
                Liabilities,

            

    

     

    together
      exceed 662/3 per cent. of the aggregate of the
      Loan and the Hedging Liabilities or, at any time when no Advance is outstanding,
      a Bank or Banks whose Commitments and Hedging Bank or Hedging Banks whose
      Hedging Liabilities together exceed 662/3 per
      cent. of the aggregate of the total Commitments and the Hedging
      Liabilities,

     

    PROVIDED
      THAT, for purposes of making the required calculations of the aggregate of
      the
      Loan and the Hedging Liabilities in order to determine whether "Majority Banks"
      exist, the Hedging Liabilities shall not at any time exceed 75% of the Loan;
      and

     

    
      	
            	(b)	
              whilst
                an Event of Default is continuing:

            

    

     

    
      	
            	(i)	
              a
                Bank or Banks whose Participations;
                and

            

    

    
      	 	 	 

      	
            	(ii)	
              Hedging
                Bank or Hedging Banks whose Hedging
                Liabilities,

            

    

     

    together
      exceed 662/3
      per cent. of the aggregate of the Loan and the Hedging Liabilities
      or, at any time when no Advance is outstanding, a Bank or Banks whose
Commitments
      and Hedging Bank or Hedging Banks whose Hedging Liabilities together
      exceed 662/3
      per cent. of the aggregate of the total Commitments and the Hedging
      Liabilities.

     

    For
      the
      purposes of these calculations:

     

    
      	
            	(A)	
              the
                Hedging Liabilities shall be determined by the Agent based on information
                received
                from the relevant Hedging Bank (acting in a commercially reasonable
                manner) on such date as the Agent shall reasonably specify on a marked
                to
                market valuation
                and, for the avoidance of doubt, in the event that a particular Hedging
                Transaction shall be out of the money from the relevant Hedging Bank's
                perspective, for the purpose of determining the Majority Banks the
                corresponding Hedging Liability shall be treated as zero;
                and

            

    

     

    
      
        
        

      

      
        Page
          13

        
          

        

      

      
        
        

      

    

     

    
      	
            	(B)	
              if,
                in accordance with paragraph (a) above, the Hedging Liabilities for
                the
                purposes of determining
                whether "Majority Banks" exist are reduced to 75% of the Loan, the
                Hedging
                Liability for each of the Hedging Banks shall be reduced on a pro
                rata
                basis to
                the extent necessary so that the aggregate of the Hedging Liabilities
                following such reduction
                is equal to 75% of the Loan.

            

    

     

    Management
      Agreement means
      the
      agreement dated on or about the date of this Agreement entered into between
      the
      Borrower and the Guarantor.

     

    Mandatory
      Cost means
      the
      percentage rate per annum calculated by the Agent in accordance with Schedule
      9.

     

    Material
      Adverse Effect means
      a
      material adverse effect on:

     

    
      	 	
              (a)

            	
              the
                ability of any Security Company to comply with its obligations under
                the
                Transaction Documents to which it is a
                party;

            

    

     

    
      	 	
              (b)

            	
              the
                business, financial condition or assets of any Project Party to the
                extent
                that the same affects its ability to comply with its obligations
                under the
                Transaction Documents to which it is a
                party;

            

    

     

    
      	
            	(c)	
              the
                validity or enforceability of any Transaction Document;
                or

            

    

     

    
      	 	
              (d)

            	
              the
                Project (as a whole) or any material part thereof, or its implementation
                or operation.

            

    

     

    Material
      Contract means:

     

    
      	
            	(a)	
              the
                Refining Contract;

            

    

    
      	 	 	 

      	
            	(b)	
              the
                Mineral Lease and Landfill Facilities Lease
                Agreement;

            

      	 	 	 

    

    
      	
            	(c)	
              the
                Management Agreement;

            

    

    
      	 	 	 

      	
            	(d)	
              the
                Leach Pad Construction Contract;

            

      	 	 	 

    

    
      	
            	(e)	
              the
                Equipment Purchase Orders; and

            

    

     

    
      	 	
              (f)

            	
              any
                contract or agreement entered into by the Borrower that requires
                the
                consent of the Agent in accordance with Clause 11.4(m)(ii)(aa) and
                (cc).

            

    

     

    Mesquite
      Mine means
      the
      deposit, the mine, processing plant and land relating thereto required
      to exploit the Mining Claims, Mining Rights, complete and conduct the Mining
      Operations and otherwise develop the Project; such plant, mine, deposit and
      land
      being more particularly described in the Feasibility Study and the Development
      Plan.

     

    Mineral
      Lease and Landfill Facilities Lease Agreement means
      the
      agreement dated 11 June 1993 between Hanson Natural Resources Company, Hospah
      Coal Company and Santa Fe Pacific Minerals Corporation.

     

    Mining
      Claims means
      all
      fee property, all patented mining and millsite claims, all unpatented
mining,
      millsite and lode claims, all leaseholds relating to real property, all
      easements and rights-of-way
      owned or held, all water rights, and all other rights, titles and interests
      in
      and to real
      property, all as described in Schedule 2, Part 2 and Mining
      Claim shall
      mean any of them.

     

    Mining
      Operations means
      the
      plant and Mining Rights and land relating thereto acquired or to
      be
      acquired by the Borrower for the purposes of the Project, at the Mesquite Mine
      and such other plant and Mining Rights and land as is agreed by the Agent
      (acting on the instructions of the
      Majority Banks) to be acquired and/or developed in accordance with the
      Development Plan.

     

    
      
        
        

      

      
        Page
          14

        
          

        

      

      
        
        

      

    

     

    Mining
      Right means
      any
      right to investigate the presence of, explore for, develop, extract,
process
      or sell any metal or mineral (and any by-product thereof), including the
      carrying out of any
      geological survey or scientific experiment by the Borrower and Mining
      Rights means
      all
of
      them.

     

    Moody's
      means
      Moody's Investors Service, Inc.

     

    Month
      means
      a
      period starting on one day in a calendar month and ending on the numerically
      corresponding day in the next calendar month, except that:

     

    
      	 	
              (a)

            	
              (subject
                to paragraph (c) below) if the numerically corresponding day is not
                a
                Business Day,
                that period shall end on the next Business Day in that calendar month
                in
                which that period is to end if there is one or, if there is not,
                on the
                immediately preceding Business
                Day;

            

    

     

    
      	 	
              (b)

            	
              if
                there is no numerically corresponding day in the calendar month in
                which
                that period is to end, that period shall end on the last Business
                Day in
                that calendar month; and

            

    

     

    
      	 	
              (c)

            	
              if
                an Interest Period begins on the last Business Day of a calendar
                month,
                that Interest Period
                shall end on the last Business Day in the calendar month in which
                that
                Interest Period
                is to end.

            

    

     

    The
      above
      rules (a) to (c) will only apply to the last Month of any period.

     

    Monthly
      Report means,
      in
      relation to the Borrower, a report showing, in respect of the previous
      Month:

     

    
      	 	
              (a)

            	
              Capital
                Expenditure incurred by it or on its behalf compared against budgeted
                forecast;

            

    

     

    
      	 	
              (b)

            	
              production,
                costs and revenue details and environmental performance compared
                against
                budgeted forecast;

            

    

     

    
      	
            	(c)	
              a
                summary of trade creditors as of the date of the
                report;

            

    

     

    
      	 	
              (d)

            	
              full
                details of any new claim under the Insurance where such claim exceeds
                US$25,000
                or its equivalent or the aggregate amount of claims during such period
                exceeds
                US$250,000;

            

    

     

    
      	
            	(e)	
              Monthly
                management accounts of the Borrower;
                and

            

    

     

    
      	 	
              (f)

            	
              copies
                of all statements produced by the Account Bank of all transactions
                (whether debits
                or credits) and showing opening and closing balances in respect of
                each of
                the Facility
                Accounts.

            

    

     

    Operating
      Budget means,
      in
      relation to the Borrower, a report in the agreed form and consistent with the
      Development Plan, reflecting forecast production, Operating Revenue,
Financing
      Principal, Financing Costs and Operating Costs for each Month during the twelve
      Month
      period to which the Operating Budget relates and which has been delivered and
      approved
      by the Agent pursuant to Clause 11.1 (c).

     

    Operating
      Costs means,
      in
      respect of a period, the aggregate amounts paid or to be paid by the Borrower
      during that period in connection with the Project, including:

     

    
      	
            	(a)	
              Taxes;

            

    

     

    
      
        
        

      

      
        Page
          15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              sums
                payable pursuant to the Transaction Documents (other than Financing
                Costs
                and Financing Principal);

            

    

     

    
      	
            	(c)	
              Royalty
                Expenses;

            

    

    
      	 	 	 

      	
            	(d)	
              premiums
                on Insurances;

            

      	 	 	 

    

    
      	
            	(e)	
              Permitted
                Capital Expenditure;

            

    

    
      	 	 	 

      	
            	(f)	
              Hedging
                Expenses and Approved Fuel Hedging
                Expenses;

            

    

     

    
      	 	
              (g)

            	
              general
                corporate and administrative expenses provided for in the Operating
                Budget
                including
                those covered in the Management
                Agreement;

            

    

     

    
      	
            	(h)	
              scheduled
                amounts payable under the Reclamation Bonds and any other surety
                bonds
                contemplated
                in the Development Plan;

            

    

     

    
      	
            	(i)	
              amounts
                payable under Permitted Capital
                Leases;

            

    

     

    
      	
            	(j)	
              trade
                payables in the ordinary course of business provided for in the Operating
                Budget;
                and

            

    

     

    
      	
            	(k)	
              all
                other costs and expenses set out in the most recent Operating Budget,
                calculated in accordance with United States
                GAAP.

            

    

     

    Operating
      Revenues means,
      in
      respect of a period, all moneys received by the Borrower during
      that period of a revenue or income nature (in each case determined on a receipts
      basis, actual
      or, as the case may be, forecast and only to the extent that the same are not
      potentially refundable
      or repayable) including (but without double counting between any such
      moneys):

     

    
      	
            	(a)	
              revenue
                derived from the sale of gold;

            

    

     

    
      	
            	(b)	
              pursuant
                to the terms of any Transaction
                Document;

            

    

    
      	 	 	 

      	
            	(c)	
              interest
                accrued on the Facility Accounts;

            

      	 	 	 

    

    
      	
            	(d)	
              refunds
                of Tax; and

            

    

     

    
      	
            	(e)	
              proceeds
                of business interruption insurance.

            

    

     

    Participation
      means,
      in
      relation to a Bank and an Advance, the part of that Advance made available
      or to be made available by that Bank and thereafter the part of that Advance
      owing to that
      Bank
      from time to time.

     

    Party
      means
      a
      party to this Agreement.

     

    Permit
      means
      each permit listed in Schedule 10.

     

    Permitted
      Capital Expenditure means
      any
      Capital Expenditure but only to the extent such Capital
      Expenditure is included in the Development Plan or the Operating Budget and
      is
incorporated
      in the Base Case Model.

     

    Permitted
      Capital Lease means
      any
      Capital Lease or Capital Leases entered into by the Borrower in relation to
      the
      Project where the total aggregate amount of the Indebtedness under
      such Capital Lease or Capital Leases does not, at any time, exceed
      US$5,000,000.

     

    Permitted
      Encumbrance means:

     

    
      
        	 	
                (a)

              	
                any
                  Encumbrance created, subsisting or permitted under or in connection
                  with
                  any Financing Document;

              

      

       

    

    
      
        
        

      

      
        Page
          16

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              any
                right of set-off or lien, in each case arising or imposed by operation
                of
                Law , including, any Encumbrance such as materialmen's, mechanic's,
                carrier's, workmen's and
                repairmen's Encumbrances and any other Encumbrance arising in the
                ordinary
                course
                of business;

            

    

     

    
      	 	
              (c)

            	
              any
                Encumbrance arising out of title retention provisions in a contractor's,
                sub contractor's
                or other supplier's standard conditions of supply of goods, property
                or
                equipment or any purchase money security interest, in respect of
                goods,
                property or equipment
                acquired or held by the Borrower for the purposes of the Project
                and in
                the ordinary course of its
                business;

            

    

     

    
      	 	
              (d)

            	
              any
                Encumbrance created, subsisting or permitted under or in connection
                with
                any Permitted
                Capital Lease provided that the asset secured by such Encumbrance
                is the
                asset that is the subject of the Permitted Capital Lease and no other
                asset of the Borrower;

            

    

     

    
      	 	
              (e)

            	
              any
                Encumbrance created, subsisting or permitted under or in connection
                with
                any Reclamation Bond provided that the asset secured by such Encumbrance
                is a cash deposit and no other asset of the
                Borrower;

            

    

     

    
      	
            	(f)	
              any
                Encumbrance created, subsisting or permitted over the Distributions
                Account;

            

    

     

    
      	
            	(g)	
              Encumbrances
                reflected in the Accounts of the
                Guarantor;

            

    

     

    
      	
            	(h)	
              any
                Encumbrance created, subsisting or permitted in the ordinary course
                of
                business and on standard terms and conditions as a result of the
                Borrower
                making deposits or similar
                arrangements with utility providers pursuant to Clause 11.4(d)(iii)
                provided that the
                asset secured by such Encumbrance is a cash deposit and no other
                asset of
                the Borrower
                and provided further that such Encumbrances shall only constitute
                Permitted Encumbrances
                if the total value of the Borrower's liabilities at any time relating
                to
                or arising under or in respect of all such Encumbrances is less than
                US$500,000 in aggregate at that
                time;

            

    

     

    
      	
            	(i)	
              any
                Encumbrance arising or imposed by operation of Law in respect of
                an unpaid
                or undischarged
                Taxes, assessments and governmental charges or levies that are being
                contested
                by the Borrower in accordance with, and subject to, Clause
                11.3(a);

            

    

     

    
      
        	
              	(j)	
                any
                  Encumbrance arising or imposed in the ordinary course of business
                  and by
                  operation
                  of Law to secure obligations under workers' compensation Laws or
                  similar
                  legislation
                  or to secure public or statutory obligations applicable to the
                  Borrower
                  and the
                  Mining Operations provided that the liabilities giving rise to
                  such
                  Encumbrances are at all times insured by the Borrower on standard
                  commercial terms for such liabilities;

              

      

    

     

    
      	
            	(k)	
              any
                Encumbrance arising or imposed to secure the performance of bids,
                trade
                contracts
                and leases, surety bonds, performance bonds and other obligations
                of a
                like nature incurred in the ordinary course of business and consistent
                with the Development
                Plan provided that the asset secured by such Encumbrance is a cash
                deposit
                and no other asset of the Borrower;

            

    

     

    
      	
            	(l)	
              Encumbrances
                securing judgments (or the payment of money not constituting a
                Trigger
                Event under Section 13.1(e)) or securing appeal or other surety bonds
                related to
                such judgments provided that such Encumbrances shall only constitute
                Permitted Encumbrances
                if the total value of the Borrower's liabilities at any time relating
                to
                or arising under or in respect of such Encumbrances is less than
                US$750,000 in aggregate at that time;
                and

            

    

     

    
      
        
        

      

      
        Page
          17

        
          

        

      

      
        
        

      

    

     

    
      	
            	(m)	
              any
                replacement, extension or renewal of the Encumbrances listed in paragraphs
                (a) to
                (l) upon, over or in the same asset that is subject to such Encumbrance
                and on the same
                terms.

            

    

     

    Permitted
      Hedging Transaction means:

     

    
      	 	
              (a)

            	
              each
                and any Derivative Transaction entered into or to be entered into
                between
                the Borrower and the Hedging Banks in relation to the Project pursuant
                to
                the Hedging Documents
                and in accordance with the Approved Hedging Programme;
                and

            

    

     

    
      	
            	(b)	
              each
                and any Approved Fuel Hedging Derivative Transaction.
                

            

    

     

    Permitted
      Indebtedness means:

     

    
      	
            	(a)	
              Indebtedness
                outstanding under any Financing
                Document;

            

    

     

    
      	
            	(b)	
              Subordinated
                Debt;

            

    

     

    
      	
            	(c)	
              Indebtedness
                outstanding under any Permitted Capital Lease;
                or

            

    

     

    
      	
            	(d)	
              Indebtedness
                outstanding under any Approved Fuel Hedging Document.
                

            

    

     

    Permitted
      Investments means:

     

    
      	 	
              (a)

            	
              U.S.
                Government Obligations, in each case having a final maturity of 90
                days or
                less from
                the date of purchase thereof;

            

    

     

    
      	 	
              (b)

            	
              direct
                obligations of, or obligations the principal of and interest on which
                are
                unconditionally
                guaranteed by, the Government of Canada or of any Canadian province
                (or by any agency thereof to the extent such obligations are backed
                by the
                full faith and credit of the Government of Canada or of such Canadian
                province), in each
                case maturing within one year from the date of acquisition
                thereof;

            

    

     

    
      	 	
              (c)

            	
              certificates
                of deposit issued by, or bankers' acceptances of, or time deposits
                with,
                any bank,
                trust company or national banking association incorporated or doing
                business under
                the Laws of the United States of America or one of the states thereof
                having combined capital and surplus and retained earnings as of its
                last
                report of condition of at least $500,000,000 and having a short-term
                deposit debt rating of A1 by S&P or P1 by Moody's (or, if neither such
                organisation shall rate such short-term deposits at any time,
                a rating equal to the highest ratings the highest ratings assigned
                by any
                nationally
                recognized rating organisation in the United States of America) and
                having
                a final
                maturity of one year or less from date of purchase
                thereof;

            

    

     

    
      	 	
              (d)

            	
              commercial
                paper of any holding company of a bank, trust company or national
                banking
                association described in sub-clause (c) above and commercial paper
                of any
                corporation
                or finance company incorporated or doing business under the Laws
                of the
                United States of America or any state thereof having a rating assigned
                to
                such commercial
                paper of A1 by S&P or P1 by Moody's (or, if neither such organisation
                shall
                rate such commercial paper at any time, a rating equal to the highest
                ratings assigned by any nationally recognised rating organisation
                in the
                United States of America)
                and having a final maturity of 180 days or less from the date of
                purchase
                thereof;
                and

            

    

     

    
      	 	
              (e)

            	
              investments
                in certificates of deposit, banker's acceptances, commercial paper
                and
                time deposits maturing within 180 days from the date of acquisition
                thereof issued or guaranteed
                by or placed with, and money market deposit accounts issued or offered
                by,
                any domestic office or any commercial bank organised under the Laws
                of
                Canada or of any Canadian province having, at such date of acquisition,
                a
                credit rating on its long-term unsecured debt of at least "A-" by
                S&P.

            

    

     

    
      
        
        

      

      
        Page
          18

        
          

        

      

      
        
        

      

    

     

    If
      none
      of the above investments is available, the entire amount to be invested may
      be
      used to purchase
      U.S. federal funds overnight from an entity described in sub-clause (c)
      above;

     

    provided
      that in all cases, the same remain subject to the Security and transferable
      to
      the Security
      Trustee on an enforcement of the Security.

     

    Pledge
      Agreement means
      the
      pledge agreement dated on or about the date of this Agreement
      entered into between the Guarantor and the Security Trustee.

     

    Proceeds
      Account means
      the
      account held and maintained by the Borrower pursuant to Clause
      12.5.

     

    Project
      means
      the
      design, development, expansion, engineering, construction, equipment,
testing,
      commissioning, management, operation, maintenance and repair of the Mesquite
      Mine and the extraction, production, recovery, sale, transportation, storage,
      processing and delivery of
      gold
      doré in all respects in accordance with the Transaction Documents and the
Development
      Plan.

     

    Project
      Parties means:

     

    
      	
            	(a)	
              each
                Security Company; and

            

    

     

    
      	
            	(b)	
              each
                Key Contractual Counterparty, and
                Project
                Party means
                any of them.

            

    

     

    Project
      Team means
      the
      professional team appointed or to be appointed by the Borrower to manage
      the Project during either the design, the construction and commissioning phase
      and/or
      the operation and maintenance phase (as applicable).

     

    Qualifying
      Bank means
      a
      bank or financial institution, or a trust, fund or other entity which is
regularly
      engaged in or established for the purpose of making, purchasing or investing
      in
      loans, securities or other financial assets, the long-term senior unsecured
      credit of which is rated at least BB+ by Fitch or the equivalent rating from
      any
      other internationally recognised rating
      agency.

     

    Quotation
      Day means,
      in
      relation to any period for which an interest rate is to be determined,
two
      Business Days before the first day of that period unless market practice differs
      in the London
      interbank market in which case the Quotation Day will be determined by the
      Agent
      in accordance with market practice in the London interbank market (and if
      quotations would normally be given by leading banks in the London interbank
      market on more than one day, the Quotation Day will be the last of those
      days).

     

    Reclamation
      Bonds means
      the
      reclamation and reimbursement bonds listed in Schedule 11 or
      as
      approved by the Agent from time to time.

     

    Reference
      Banks means
      the
      principal London offices of The Royal Bank of Scotland plc, Barclays
      PLC and HSBC Bank plc or such other banks as may be selected by the Agent with
      the consent of the Borrower.

     

    Refiner
      means
      Johnson Matthey, Inc. and any replacement thereof approved by the Agent (acting
      on the instructions of the Majority Banks).

     

    Refining
      Contract means
      the
      agreement entered or to be entered into between the Borrower and the Refiner
      for
      the refining of the gold dore mined at the Mesquite Mine.

     

    Repayment
      Date means
      30
      June and 31 December in each year commencing on the First Repayment Date until
      the Final Repayment Date.

     

    Repayment
      Schedule means
      the
      Schedule of dates and amounts as set out in Schedule 6.

     

    
      
        
        

      

      
        Page
          19

        
          

        

      

      
        
        

      

    

     

    Repeating
      Representations means
      each of the representations set out in Clause 10.1 (a) to 10.1
      (f)
      (inclusive).

     

    Replacement
      Key Contractual Counterparty means
      a
      person or entity who fulfils the criteria set
      out
      in paragraphs (a) to (d) below and is approved by the Agent (such approval
      not
      to be unreasonably
      withheld or delayed):

     

    
      	 	
              (a)

            	
              the
                legal capacity, power and authority of such proposed Replacement
                Key
                Contractual
                Counterparty to become a party to and perform obligations equivalent
                to
                those
                of the original Key Contractual Counterparty under the relevant Material
                Contracts,
                including all relevant consents;

            

    

     

    
      	 	
              (b)

            	
              the
                financial standing of such proposed Replacement Key Contractual
                Counterparty, whether by way of initial capitalisation cash collateral
                or
                by a letter of credit or guarantee or other credit support acceptable
                to
                the Banks, is sufficient;

            

    

     

    
      	 	
              (c)

            	
              the
                technical competence or the technical resources available to such
                proposed
                Replacement
                Key Contractual Counterparty (whether directly or by way of contractual
                arrangements)
                to perform obligations equivalent to those of the original Key Contractual
                Counterparty under the relevant Material Contracts;
                and

            

    

     

    
      	 	
              (d)

            	
              where
                required by the Agent, such proposed Replacement Key Contractual
                Counterparty
                has irrevocably undertaken to the Agent to enter into a direct agreement
                or other contractual arrangement with the Secured Parties or Security
                Trustee on terms
                similar to the direct agreement or other contractual arrangements
                executed
                by the
                original Key Contractual
                Counterparty.

            

    

     

    Reserve
      Statement means
      a
      statement prepared by the Borrower and confirmed by the Independent
      Technical Consultant relating to the Mining Operations in form and substance
      satisfactory
      to the Agent (acting reasonably), showing a number of ounces of proven and
      probable reserves as defined under National Instrument 43-101 issued by the
      Canadian Institute
      of Mining, Metallurgy and Petroleum, as updated by the Borrower in accordance
      with Clause
      11.1 (g) from time to time.

     

    Royalty
      Expenses means
      any
      royalties or overriding royalties, production payments, net profit interests,
      net smelter return interests, other rights or interests in ore bodies or
      production or revenues
      therefrom or rental payments, in each case payable by the Borrower under the
      Mining
      Claims, any Material Contract or otherwise in connection with the Mesquite
      Mine.

     

    Screen
      Rate means
      the
      British Bankers' Association Interest Settlement Rate for dollars for the
      relevant period for the relevant period, displayed on the appropriate page
      of
      the Reuters screen.
      If the agreed page is replaced or service ceases to be available, the Agent
      may
specify
      another page or service displaying the appropriate rate after consultation
      with
      the Borrower and the Banks.

     

    Secured
      Collateral means
      all
      rights, properties (real and personal), interests and other assets (of every
      form, kind and nature) of each Security Company that are subject to the
      Security.

     

    Secured
      Obligations means
      the
      obligations and liabilities of the Security Companies under the
      Financing Documents, all of which are secured by the Security.

     

    Secured
      Parties means
      the
      Financing Parties and the Hedging Banks from time to time and Secured
      Party means
      any
      of them.

     

    Security
      means
      the
      Encumbrances created by the Security Documents.

     

    Security
      Agreement means
      the
      security agreement dated on or about the date of this Agreement
      entered into between the Borrower and the Security Trustee.

     

    Security
      Companies means:

    
       

    

    
      	
            	
              (a)

            	
              the
                Borrower;

            

    

     

    
      
        
        

      

      
        Page
          20

        
          

        

      

      
        
        

      

    

     

    
      	
            	(b)	
              if
                applicable, any Subsidiary of the Borrower from time to time;
                and

            

    

     

    
      	
            	(c)	
              the
                Guarantor. 

            

    

     

    Security
      Documents means:

    

    
      	
            	(a)	
              the
                Guarantee;

            

    

     

    
      	
            	(b)	
              the
                Pledge Agreement;

            

    

     

    
      
        	
              	(c)	
                the
                  Security Agreement;

              

      

    

     

    
      	
            	(d)	
              the
                Deed of Trust;

            

    

     

    
      	
            	(e)	
              the
                Account Control Agreement;

            

    

     

    
      	
            	(f)	
              any
                Consent to Assignment; and

            

    

     

    
      	 	
              (g)

            	
              any
                other guarantee or document creating, evidencing or acknowledging
                security
                in respect
                of any of the obligations and liabilities of the Security Companies
                under
                any Financing Document.

            

    

     

    Security
      Period means
      the
      period starting on the date of this Agreement and ending on the date on which
      the liabilities of the Security Companies under each Financing Document are
      irrevocably
      discharged in full and no Financing Party has any commitment or liability,
      whether present or future, actual or contingent, in relation to the Facility
      and
      no Hedging Bank has any commitment or liability, whether present or future,
      actual or contingent, in relation to any Permitted Hedging
      Transaction.

     

    Security
      Trustee means
      Investec Bank (UK) Limited in its capacity as trustee for the Secured Parties,
      its successors in title and each successor appointed from time to time under
      and
      in accordance with the provisions of the Intercreditor Agreement.

     

    Standard
      & Poor's or
      S&P
      means
      Standard & Poor's Rating Services, currently a division of The McGraw-Hill
      Companies, Inc.

     

    Subordinated
      Debt means
      Indebtedness incurred by the Borrower to the Guarantor pursuant to
      the
      Subordinated Loan Agreement or any other Affiliate of the Borrower or the
      Guarantor and
      which
      is subordinated to the Facility under the terms of the Intercreditor
      Agreement.

     

    Subordinated
      Loan Agreement means
      the
      loan agreement entered or to be entered into between the Borrower and the
      Guarantor.

     

    Subsidiary
      means
      in
      respect of any corporation or limited liability company or other
      entity:

     

    
      	 	
              (a)

            	
              any
                corporation of which more than 50% of the issued and outstanding
                equity
                securities
                having ordinary voting power to elect a majority of the board of
                directors
                of such
                corporation (irrespective of whether at the time capital stock of
                any
                other class or classes
                of such corporation shall or might have voting power upon the occurrence
                of any
                contingency) is at the time directly or indirectly owned or controlled
                by
                such corporation,
                limited liability company or entity and one or more of its other
                Subsidiaries or
                by one or more of the Subsidiaries of such corporation, limited liability
                company or entity;
                or

            

    

     

    
      	 	
              (b)

            	
              any
                partnership, joint venture, limited liability company or other entity
                of
                which more than 50% of the equity interest having the power to vote,
                direct or control the management of such partnership, limited liability
                company, joint venture or other entity is at the time directly or
                indirectly owned and controlled by such corporation, limited liability
                company or entity and one or more to the other Subsidiaries or by
                one or
                more of the other Subsidiaries of such corporation, limited liability
                company or entity.

            

    

     

    
      
        
        

      

      
        Page
          21

        
          

        

      

      
        
        

      

    

     

    Sunk
      Equity means
      any
      Equity invested in the Borrower certified by the Agent (in consultation
with
      the
      Independent Technical Consultant) as having been applied towards Project costs
      provided
      for in the Development Plan and Base Case Model.

     

    Syndication
      means
      the
      syndication of the Facility including byway of primary syndication,
      sub-participation or other transfer.

     

    Target
      Completion Date means
      30
      June 2008.

     

    Taxes
      includes
      all present and future taxes, charges, imposts, duties, levies, deductions
      or
withholdings
      of any kind whatsoever, or any amount payable on account of or as security
      for
any
      of
      the foregoing, by whomsoever on whomsoever and wherever imposed, levied,
collected,
      withheld or assessed, together with any penalties, additions, fines, surcharges
      or interest relating thereto and Tax
      and
      Taxation
      shall
      be
      construed accordingly.

     

    Transaction
      Documents means
      the
      Financing Documents, the Mining Claims, the Permits and the Material
      Contracts.

     

    Transfer
      Certificate means
      a
      certificate in the form set out in Schedule 7.

     

    Treasury
      Obligations means
      U.S. Treasury securities (including STRIPS) maintained in the commercial
      book entry system entitled Treasury/Reserve Automated Debt Entry System
      ("Trades") pursuant to the Treasury Regulations or any successor commercial
      book
      entry system for U.S. Treasury securities maintained by Federal Reserve
      Banks.

     

    Treasury
      Regulations means
      31
      CFR Part 357, as amended from time to time.

     

    Trigger
      means
      a
      Trigger Event or any event or omission which with the expiry of a grace
period,
      the giving of notice, the making of any determination or the satisfaction of
      any
      condition under
      the
      Financing Documents or any combination of any of the foregoing, would be a
      Trigger
      Event.

     

    Trigger
      Event means
      any
      event or circumstance specified as such in Clause 13.

     

    United
      States GAAP means
      general accounting principles in the United States of America and
      concepts, bases and policies consistently applied and adopted and accepted
      in
      the United States
      of
      America.

     

    Unpaid
      Sum means
      any
      sum due and payable but unpaid by the Borrower under the Financing
      Documents.

     

    US
      Dollars and US$ means
      the
      lawful currency for the time being of the United States of America.

     

    US
      Government Obligations means
      (a)
      Treasury Obligations, (b) direct obligations of the United
      States of America and (c) obligations guaranteed by, or otherwise carrying
      the
      full faith and
      credit of, the United States of America.

     

    Variation
      means
      any
      Capital Expenditure which is not, as at the date of this Agreement, included
      within the Base Case Model or the Development Plan, provided such additional
      Capital
      Expenditure is included within a change to the Development Plan agreed in
accordance
      with Clause 11.1 (c) and the Base Case Model, and the Independent Technical
      Consultant confirms that the same has been or is to be properly and reasonably
      incurred in connection
      with the Project.

     

    VAT
      means
      value added tax as provided for in the Value Added Tax Act 1994 and any other
      tax of a similar nature.

     

    
      
        
        

      

      
        Page
          22

        
          

        

      

      
        
        

      

    

     

    Waste
      means,
      as
      to any person or entity, any act(s) or circumstance (other than a Disposal)
      that
      result(s), individually or collectively, in the abandonment, conversion,
      seizure, waste, depletion, removal or loss of identity of any asset of such
      person or entity, or results in any such asset being characterized as a fixture
      or accession to goods of another person or entity.

     

    
      	1.2	
              Headings

            

    

     

    The
      headings in this Agreement are for convenience only and shall be ignored in
      construing this Agreement.

     

    
      	1.3	
              Interpretation

            

    

     

    
      	1.3.1	
              In
                this Agreement (unless otherwise
                provided):

            

    

     

    
      	
            	(a)	
              words
                importing the singular shall include the plural and vice
                versa;

            

    

     

    
      	 	
              (b)

            	
              references
                to Clauses and Schedules are to be construed as references to the
                clauses
                of, and schedules to, this
                Agreement;

            

    

     

    
      	 	
              (c)

            	
              references
                to any Transaction Document or any other document shall be construed
                as
                references
                to that Transaction Document or that other document, as amended,
                varied,
                novated
                or supplemented in accordance with the terms thereof and, if applicable,
                in accordance with this Agreement;

            

    

     

    
      	 	
              (d)

            	
              references
                to any statute or statutory provision include any statute or statutory
                provision
                which amends, extends, consolidates or replaces the same, or which
                has
                been amended, extended, consolidated or replaced by the same, and
                shall
                include any
                orders, regulations, instruments or other subordinate legislation
                made
                under the relevant statute;

            

    

     

    
      	 	
              (e)

            	
              references
                to a document being in
                the agreed form means
                that document the form and content of which has been approved by
                the Agent
                and the Borrower and which has been initialled by or on behalf of
                the
                Agent and the Borrower;

            

    

     

    
      	 	
              (f)

            	
              references
                to assets
                shall
                include revenues and property and the right to revenues and
                property and rights of every kind, present, future and contingent
                and
                whether tangible
                or intangible (including uncalled share
                capital);

            

    

     

    
      	 	
              (g)

            	
              indebtedness
                includes
                any obligation, whether incurred as principal or as surety, for the
                payment or repayment of money, whether present or future, actual
                or
                contingent and whether owed jointly or severally or in any other
                capacity;

            

    

     

    
      	
            	(h)	
              liabilities
                includes
                any obligation whether incurred as principal or as surety, whether
                or
                not in respect of indebtedness, whether present or future, actual
                or
                contingent and whether
                owed jointly or severally or in any other
                capacity

            

    

     

    
      	
            	(i)	
              the
                words including
                and
                in
                particular shall
                be construed as being by way of illustration
                or emphasis only and shall not be construed as, nor shall they take
                effect
                as,
                limiting the generality of any foregoing
                words;

            

    

     

    
      	
            	(j)	
              the
                words other
                and
                otherwise
                shall
                not be construed to restrict the interpretation of any
                foregoing words to those of the same nature or category where a wider
                construction
                is possible;

            

    

     

    
      	
            	(k)	
              references
                to a person
                or
                entity
                shall
                be construed so as to include that person's or entity's
                assigns, transferees or successors in title and shall be construed
                as
                including references to an individual, firm, partnership, joint venture,
                company, corporation, body corporate, unincorporated body of persons
                or
                any state or any agency of a state;

            

    

     

    
      
        
        

      

      
        Page
          23

        
          

        

      

      
        
        

      

    

     

    
      	
            	(l)	
              material
                shall
                be construed as a reference to material to, or in the context of,
                the
                interests
                of the Financing Parties (or any of them) under the Financing Documents
                (or any
                of them);

            

    

     

    
      	
            	(m)	
              where
                there is a reference in this Agreement to any amount, limit or threshold
                specified
                in US Dollars, in ascertaining whether or not that amount, limit
                or
                threshold has been attained, broken or achieved, as the case may
                be, a
                non-US Dollar amount shall be calculated on the basis of the equivalent
                in
                US Dollars of that amount using the Agent's relevant spot rate of
                exchange;

            

    

     

    
      	
            	(n)	
              accounting
                terms shall be construed so as to be consistent with United States
                GAAP;
                and

            

    

     

    
      	
            	(o)	
              references
                to time are to London time.

            

    

     

    
      	1.3.2	
              A
                Default or Trigger (other than an Event of Default or Trigger Event)
                is
                continuing
                if
                it has not
                been remedied or waived in writing and an Event of Default or Trigger
                Event is continuing
                if
                it has not been waived in writing.

            

    

     

    
      	1.4	
              Third
                party rights

            

    

     

    
      	
              1.4.1

            	
              Unless
                expressly provided to the contrary in this Agreement a person or
                entity
                who is not a Party
                has no right under the Contracts (Rights of Third Parties) Act 1999
                (the
                Third
                Parties Act)
                to
                enforce or to enjoy the benefit of any term of this
                Agreement.

            

    

     

    
      	
              1.4.2

            	
              Notwithstanding
                any term of any Financing Document, the Parties may rescind, vary,
                waive,
                release,
                assign, novate or otherwise dispose of all or any of their respective
                rights or obligations
                under this Agreement without the consent of any person or entity
                who is
                not a Party.

            

    

     

    
      	2	
              Facility

            

    

     

    
      	2.1	
              Facility

            

    

     

    Subject
      to the terms of this Agreement the Banks have agreed to make available to the
      Borrower the Facility up to a maximum principal amount of
      US$105,000,000.

     

    
      	2.2	
              Limitation

            

    

     

    Notwithstanding
      any other term of this Agreement, no Bank shall be obliged to lend more than
      its
      Commitment.

     

    
      	2.3	
              Obligations
                several

            

    

     

    The
      obligations of each Financing Party under the Financing Documents are several.
      Failure by
      a
      Financing Party to perform its obligations under the Financing Documents does
      not affect the
      obligations of any other Financing Party under the Financing Documents. No
      Financing Party
      is
      responsible for the obligations of any other Financing Party under the Financing
      Documents.

     

    
      	2.4	
              Rights
                separate

            

    

     

    
      	
              2.4.1

            	
              The
                rights of each Financing Party under or in connection with the Financing
                Documents are separate
                and independent rights and any debt arising under the Financing Documents
                to a Financing Party from a Security Company shall be a separate
                and
                independent debt.

            

    

     

    
      	
              2.4.2

            	
              A
                Financing Party may, except as otherwise stated in the Financing
                Documents, separately enforce its rights under the Financing
                Documents.

            

    

     

    
      
        
        

      

      
        Page
          24

        
          

        

      

      
        
        

      

    

     

    
      	2.5	
              Purpose

            

    

     

    The
      Borrower shall apply amounts borrowed by it under the Facility
      towards:

     

    
      	
            	(a)	
              Permitted
                Capital Expenditures,

            

    

     

    
      	
            	(b)	
              Financing
                Costs in respect of capitalised interest and commitment
                fees;

            

    

     

    
      	
            	(c)	
              Operating
                Costs; and

            

    

     

    
      	
            	(d)	
              refinancing
                Approved Committed Equity.

            

    

     

    in
      each
      case, arising during the Availability Period and as provided for in the
      Development Plan and the Base Case Model.

     

    
      	2.6	
              No
                monitoring

            

    

     

    No
      Financing Party shall be obliged to investigate or monitor the use or
      application of drawings under
      the
      Facility or the proceeds of the Advances.

     

    
      	3	
              Conditions
                precedent

            

    

     

    
      	3.1	
              Conditions
                precedent

            

    

     

    Notwithstanding
      any other term of this Agreement, none of the Financing Parties shall be under
      any obligation to make the Facility available to the Borrower unless the Agent
      has notified
      the Borrower that all the conditions set out in Schedule 2, Part 1 have been
      satisfied or waived
      (the date of such notice being the Effective
      Date).

     

    
      	3.2	
              Confirmation
                of satisfaction

            

    

     

    The
      Agent
      shall only be required to certify whether or not the conditions set out in
      Schedule 2, Part
      1
      have been satisfied or, as the case may be, waived once it is satisfied that
      all
      such conditions have been satisfied or waived.

     

    
      	4	
              Drawdown

            

    

     

    
      	4.1	
              Drawdown
                of the Facility

            

    

     

    
      	
              4.1.1

            	
              Subject
                to the remaining provisions of this Agreement, Advances shall be
                made to
                the Borrower
                at any time during the Availability Period when requested by means
                of a
                Drawdown Notice issued in accordance with Clause
                4.4.

            

    

     

    
      	
              4.1.2

            	
              At
                the close of business on the last Business Day of the Availability
                Period
                the undrawn amount of each Bank's Commitment shall be automatically
                cancelled and no longer available for
                drawing.

            

    

     

    
      	4.2	
              Conditions
                to Advances

            

    

     

    The
      obligation of each Bank to make available its Participation in any Advance
      is
      subject to Clause 4.3 and to the conditions that, on the date on which the
      relevant Drawdown Notice is given
      and
      on the Drawdown Date:

     

    
      	
            	(a)	
              the
                Effective Date has occurred;

            

    

     

    
      	
            	(b)	
              the
                Drawdown Date falls during the Availability
                Period;

            

    

     

    
      	
            	(c)	
              the
                Repeating Representations are true in all material
                respects;

            

    

     

    
      
        
        

      

      
        Page
          25

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              no
                Default or Trigger has occurred and is continuing or would occur
                on the
                making of the
                Advance;

            

    

     

    
      	 	
              (e)

            	
              in
                respect of the first Advance only, the Agent is satisfied that all
                amounts
                in respect of Committed
                Equity have been applied towards Permitted Capital Expenditures and
                Operating Costs in accordance with the Development Plan;
                and

            

    

     

    
      	 	
              (f)

            	
              in
                respect of any Advance to be made for the purpose of refinancing
                Approved
                Committed Equity, the Agent has notified the Borrower and the Banks
                that
                all of Additional Drawing Conditions have been satisfied or
                waived.

            

    

     

    
      	4.3	
              Limitations
                and authorisation on
                Advances

            

    

     

    The
      following limitations shall apply to Advances:

     

    
      	
            	(a)	
              the
                Drawdown Date of an Advance shall be a Business
                Day;

            

    

     

    
      	
            	(b)	
              the
                principal amount of any Advance shall be a minimum amount of
                US$1,000,000;

            

    

     

    
      	 	
              (c)

            	
              no
                Advance shall be made if the making of that Advance would result
                in the
                Loan exceeding
                the Facility Limit; and

            

    

     

    
      	
            	(d)	
              there
                shall be no more than 10 Advances outstanding at any
                time.

            

    

     

    4.4 Drawdown
      Notice

     

    Whenever
      the Borrower wishes to drawdown an Advance under the Facility, the Borrower
      shall deliver to the Agent:

     

    
      	
            	(a)	
              a
                duly completed Drawdown Notice;

            

    

     

    
      	
            	(b)	
              a
                Costs Certificate; and

            

    

     

    
      	 	
              (c)

            	
              copies
                of any individual invoices against which such Advance is to be applied
                where the
                value of such invoice exceeds
                US$250,000,

            

    

     

    in
      each
      case, to be received not later than 11.00 a.m. on the third Business Day before
      the relevant
      Drawdown Date.

     

    
      	
              4.5

            	
              A
                Drawdown Notice shall be irrevocable and the Borrower shall be obliged
                to
                borrow in accordance with its
                terms.

            

    

     

    
      	4.6	
              Notification
                to Banks

            

    

     

    The
      Agent
      shall promptly notify each Bank of the details of each Drawdown Notice received
      by it.

     

    
      	4.7	
              Participations

            

    

     

    Subject
      to the terms of this Agreement, each Bank acting through its Facility Office
      shall make available
      to the Agent on the Drawdown Date for an Advance an amount equal to its
Participation
      in that Advance. A Bank shall participate in an Advance in the proportion borne
      by its Available Commitment to the Available Facility on the Drawdown Date
      of
      that Advance.

     

    
      
        
        

      

      
        Page
          26

        
          

        

      

      
        
        

      

    

     

    
      	5	
              Interest

            

    

     

    
      	5.1	
              Interest
                rate for Advances

            

    

     

    Interest
      shall accrue on each Advance from and including the relevant Drawdown Date
      to,
      but excluding,
      the date the Advance is repaid at the rate per annum which is the aggregate
      of:

     

    
      	
            	(a)	
              the
                applicable Interest Margin for such
                Advance;

            

    

     

    
      	
            	(b)	
              LIBOR;

            

    

     

    
      	
            	(c)	
              Mandatory
                Costs, if any; and

            

    

     

    
      	
            	(d)	
              any
                additional amounts incurred pursuant to Clause 13.2.1
                (c).

            

    

     

    
      	5.2	
              Interest
                Periods for Advances

            

    

     

    
      	
              5.2.1

            	
              Interest
                payable on each Advance prior to the Completion Date shall be calculated
                by reference
                to successive Interest Periods of 1, 2, 3 or 6 Months duration (or,
                in
                each case, such other
                interest periods as the Agent may allow) subject to the remaining
                provisions of this Clause
                5.2.

            

    

     

    
      	
              5.2.2

            	
              The
                first Interest Period for each Advance shall begin on the Drawdown
                Date of
                that Advance. Each succeeding Interest Period for that Advance shall
                begin
                on the Interest Date of the previous
                Interest Period. The Borrower shall specify in the relevant Drawdown
                Notice the duration of the first Interest Period for the each Advance.
                In
                relation to subsequent Interest Periods
                for each Advance, the Borrower shall notify the Agent in writing
                2
                Business Days before the end of the then current Interest Period
                of the
                duration of the next Interest Period. If the Borrower fails to provide
                such notice within the required time, the duration for the next Interest
                Period shall be one Month.

            

    

     

    
      	
              5.2.3

            	
              If
                an Interest Period would otherwise end on a day which is not a Business
                Day, that Interest Period shall instead end on the next Business
                Day in
                the same calendar Month (if there is one) or the preceding Business
                Day
                (if there is not).

            

    

     

    
      	
              5.2.4

            	
              If
                an Interest Period begins on the last Business Day in a calendar
                Month or
                a Business Day for
                which there is no numerically corresponding day in the calendar Month
                in
                which that Interest
                Period is to end, such Interest Period shall end on the last Business
                Day
                of such later calendar
                Month.

            

    

     

    
      	
              5.2.5

            	
              If
                an Interest Period for an Advance would otherwise extend beyond a
                Repayment Date, it shall be shortened so that it ends on such Repayment
                Date.

            

    

     

    
      	
              5.2.6

            	
              If
                an Interest Period relating to a new Advance begins at the same time
                as
                any other Interest Period
                relating to any Advance, the Interest Period for such new Advance
                shall
                end at the same
                time as the other Interest Period. If two or more Interest Periods
                for
                Advances end on the
                same date, such Advances shall be consolidated into, and be treated
                as, as
                a single Advance
                on the last day of such Interest
                Period.

            

    

     

    
      	5.3	
              Calculation
                and payment of interest

            

    

     

    
      	
              5.3.1

            	
              At
                the beginning of each Interest Period, the Agent shall notify to
                the
                Borrower and the Banks the rate and the amount of interest payable
                for
                such Interest Period.

            

    

     

    
      	5.3.2	
              Interest
                due from the Borrower under this Agreement
                shall:

            

    

     

    
      	
            	(a)	
              accrue
                from day to day at the rate calculated under this Clause
                5;

            

    

     

    
      
        
        

      

      
        Page
          27

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              except
                as otherwise provided in this Agreement, be paid by the Borrower
                to the
                Agent in arrears on the last date of the relevant Interest Period,
                as well
                as on the relevant Final Repayment
                Date;

            

    

     

    
      	 	
              (c)

            	
              be
                calculated on the basis of the actual number of days elapsed and
                a 360 day
                year; and

            

    

     

    
      	
            	(d)	
              be
                payable both before and after
                judgement.

            

    

     

    
      	5.3.3	
              Provided
                always that no Default has occurred which is subsisting, the Borrower
                shall (subject to complying with Clause 4 and this Clause 5.3.3)
                be
                entitled to capitalise interest and Commitment Fees accrued at the
                end of
                any Interest Period falling within the period from the date of this
                Agreement until the last Interest Date falling prior to the First
                Repayment Date (unless the Borrower notifies the Agent to the contrary
                by
                at least 5 Business Days' Notice) and
                such capitalised interest and Commitment Fees shall automatically
                be
                deemed a new Advance
                provided only that such Advance when aggregated with all other Advances
                made or to be made shall not exceed the Facility Limit. After such
                capitalisation, interest will accrue on such
                interest so capitalised at the interest rate in accordance with Clause
                5.1
                (or if not paid on the
                due date or otherwise capitalised, under Clause
                5.4).

            

    

     

    
      	5.4	
              Default
                interest

            

    

     

    
      	
              5.4.1

            	
              If
                the Borrower fails to pay any amount payable under any Financing
                Document
                on the due date,
                it shall pay default interest on the overdue amount from the due
                date to
                the date of actual payment
                calculated by reference to successive Interest Periods of one Month
                at the
                rate per annum
                being the aggregate of (a) 1 per cent. per annum, (b) the applicable
                Interest Margin (if any) and (c)
                LIBOR.

            

    

     

    
      	
              5.4.2

            	
              So
                long as the overdue amount remains unpaid, the default interest rate
                shall
                be recalculated in accordance with the provisions of this Clause
                5.4 on
                the last day of each such Interest Period of one Month and any unpaid
                interest shall be compounded at the end of each Interest Period.

            

    

     

    
      	6	
              Repayment
                of Loan

            

    

     

    
      	6.1	
              Repayment

            

    

     

    
      	
              6.1.1

            	
              The
                Borrower shall repay the Loan by payment to the Agent (for the account
                of
                the Banks) in consecutive semi-annual instalments (each a Repayment
                Instalment) on
                each of the Repayment
                Dates. The first Repayment Instalment shall be paid on the First
                Repayment
                Date and
                the final Repayment Instalment shall be paid on the Final Repayment
                Date.

            

    

     

    
      	
              6.1.2

            	
              The
                amount of the Repayment Instalment due on each Repayment Date set
                out in
                Column 1 of
                Schedule 6 shall be the amount set opposite that Repayment Date in
                Column
                2 of Schedule
                6.

            

    

     

    
      	
              6.1.3

            	
              In
                the event that the Facility is not fully drawn during the Availability
                Period, the Repayment Instalments shall be reduced on a pro rata
                basis by
                an amount equal to the undrawn amount at
                the end of the Availability Period and Schedule 6 shall be amended
                by the
                Agent accordingly.

            

    

     

    
      	
              6.1.4

            	
              In
                the event of any prepayment of the Loan in accordance with Clauses
                6.2,
                6.3, 6.4 or 6.5 below,
                the Agent shall amend Schedule 6
                accordingly.

            

    

     

    
      	6.2	
              Optional
                prepayment

            

    

     

    
      	6.2.1	
              The
                Borrower may, by giving the Agent not less than 10 Business Days'
                prior
                notice, prepay the
                whole or part of the Facility at any time during an Interest
                Period.

            

    

     

    
      
        
        

      

      
        Page
          28

        
          

        

      

      
        
        

      

    

     

    
      	6.2.2	
              Any
                amounts prepaid pursuant to Clause 6.2.1 shall be applied in prepayment
                of
                Repayment Instalments
                of the Loan in inverse order of maturity and pro rata between the
                Banks in
                respect of their Participations in the
                Loan.

            

    

     

    
      	6.3	
              Mandatory
                prepayment

            

    

     

    Notwithstanding
      the other provisions of this Agreement, on each Repayment Date the Borrower
      shall apply an amount equal to 50% of Excess Cashflow in prepayment of
Repayment
      Instalments of the Loan in inverse order of maturity and pro rata between the
      Banks
      in
      respect of their Participations in the Loan.

     

    
      	6.4	
              Right
                of repayment and cancellation in relation to a single
                Bank

            

    

     

    
      	6.4.1	
              If:

            

    

     

    
      	
            	(a)	
              any
                sum payable to any Bank is required to be increased under Clause
                9.7;

            

    

     

    
      	
            	(b)	
              any
                Bank claims indemnification from the Borrower under Clause 9.7 or
                Clause
                8.2; or

            

    

     

    
      	
            	(c)	
              any
                Bank claims its Mandatory Costs from the
                Borrower,

            

    

     

    the
      Borrower may, whilst the circumstance giving rise to the requirement,
      indemnification or claim
      continues, give the Agent not less than seven Business Days' (or such shorter
      period as the Majority Banks may agree) prior notice of cancellation of the
      Commitment of that Bank and its intention to either (a) procure the repayment
      of
      that Bank's Participation in the Loan or (b) procure
      a
      Qualifying Bank to purchase such Bank's Participation in the Loan for an amount
      equal
      to
      the outstanding principal amount of all Advances made by it and all accrued
      and
unpaid
      interest thereon as of the date of such purchase and otherwise on terms
      satisfactory to the
      Bank
      (acting reasonably).

     

    
      	
              6.4.2

            	
              On
                receipt of a notice referred to in Clause 6.4.1, the Commitment of
                that
                Bank shall immediately
                be reduced to zero.

            

    

     

    
      	
              6.4.3

            	
              On
                the last day of each Interest Period which ends after the Borrower
                has
                given notice under Clause
                6.4.1 (or, if earlier, the date specified by the Borrower in that
                notice),
                the Borrower shall prepay
                that Bank's Participation in the
                Loan.

            

    

     

    
      	6.5	
              Prepayment
                and Hedging

            

    

     

    
      	6.5.1	
              In
                the event of a prepayment of the whole of the Loan by the
                Borrower:

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower shall be entitled to terminate the Permitted Hedging Transactions
                in whole
                or in part on the date of such prepayment of the whole of the
                Loan;

            

    

     

    
      	 	
              (b)

            	
              in
                the event that a termination of all of the Permitted Hedging Transactions
                on the date of
                such repayment of the whole of the Loan would result in the Hedging
                Banks
                incurring
                a liability to the Borrower, the Hedging Banks shall be entitled
                to
                terminate the
                Permitted Hedging Transactions; and

            

    

     

    
      	 	
              (c)

            	
              in
                the event that a termination of all of the Permitted Hedging Transactions
                on the date of
                such repayment of the whole of the Loan would result in the Borrower
                incurring an aggregate liability to the Hedging Banks not exceeding
                US$1,000,000, the Hedging Banks
                shall be entitled to terminate the Permitted Hedging
                Transactions.

            

    

     

    
      	
              6.5.2

            	
              In
                the event of any prepayment of part of the Loan by the Borrower the
                Borrower shall be entitled to terminate any Permitted Hedging Transactions
                effected in respect of any period during
                which the Loan is not forecast to be outstanding following the changes
                to
                the Repayment Instalments resulting from such prepayment and the
                revisions
                to Schedule 6 pursuant
                to Clause 6.1.4.

            

    

     

    
      
        
        

      

      
        Page
          29

        
          

        

      

      
        
        

      

    

     

    
      	6.6	
              Restrictions

            

    

     

    
      	
              6.6.1

            	
              Any
                notice of prepayment given by the Borrower under this Clause 6 shall
                be
                irrevocable and, unless a contrary indication appears in this Agreement,
                shall specify the date or dates upon which
                the relevant prepayment is to be made and the amount of that
                prepayment.

            

    

     

    
      	6.6.2	
              Any
                prepayment under this Agreement:

            

    

     

    
      	 	
              (a)

            	
              if
                in part, shall be in a minimum amount of US$1,000,000 and the Agent
                acting
                reasonably
                must be satisfied that the Borrower will have sufficient funds available
                from time
                to time to enable it to implement the Development
                Plan;

            

    

     

    
      	 	
              (b)

            	
              shall
                be made together with accrued interest on the amount prepaid and
                any Break
                Costs but otherwise without premium or penalty;
                and

            

    

     

    
      	 	
              (c)

            	
              will
                not be permitted during the Availability Period save for a prepayment
                made
                under Clause
                6.4.1.

            

    

     

    
      	
              6.6.3

            	
              The
                Borrower may not repay or prepay all or any part of the Advances
                except as
                expressly provided in this
                Agreement.

            

    

     

    
      	6.7	
              No
                re-borrowing

            

    

     

    Any
      amount of the Facility repaid or prepaid may not be re-borrowed and the Facility
      Limit shall
      be
      reduced accordingly by the sum so repaid or prepaid in accordance with this
      Clause 6 and the Commitment of each Bank shall be reduced rateably in accordance
      with the amount of such repayment or prepayment.

     

    
      	7	
              Cancellation

            

    

     

    
      	
              7.1

            	
              The
                Borrower may, on not less than 10 Business Days' prior written notice
                to
                the Agent, cancel all or part of the Available Facility, provided
                that:

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower may not cancel, save for a cancellation made under Clause
                6.4.1,
                any part
                of the Facility if the Agent notifies the Borrower that the Majority
                Banks
                are not satisfied
                (acting reasonably) that the Borrower will have sufficient funds
                available
                from time
                to time to enable it to implement the Development Plan and such notice
                is
                issued to
                the Borrower within 10 days of making such determination;
                and

            

    

     

    
      	 	
              (b)

            	
              in
                the event of cancellation of all of the Facility, the Borrower has
                paid
                all outstanding fees,
                costs and expenses payable to the Financing Parties under the Financing
                Documents.

            

    

     

    
      	
              7.2

            	
              The
                Agent shall promptly notify the Banks of receipt of any notice delivered
                pursuant to Clause 7.1.

            

    

     

    
      
        
          	7.3	
                  Any
                    notice of cancellation shall be irrevocable and shall specify
                    the date on
                    which the cancellation
                    shall take effect and the amount of the
                    cancellation.

                

        

      

    

     

    
      	7.4	
              The
                Borrower may not utilise any part of the Facility which has been
                cancelled.

            

    

    

    
      
        
        

      

      
        Page
          30

        
          

        

      

      
        
        

      

    

    
      	7.5	
              Any
                cancellation shall reduce each Bank's Commitment rateably save for
                a
                cancellation under Clause
                6.4.1.

            

    

     

    
      	8	
              Changes
                in circumstances

            

    

     

    
      	8.1	
              Illegality

            

    

     

    If
      it
      becomes unlawful in any applicable jurisdiction for a Bank to perform any of
      its
      obligations as
      contemplated by this Agreement or to fund or maintain its Participation in
      any
      Advance:

     

    
      	
            	(a)	
              that
                Bank shall promptly notify the Agent upon becoming aware of that
                event;

            

    

     

    
      	 	
              (b)

            	
              upon
                the Agent notifying the Borrower, the Commitment of that Bank will
                be
                immediately
                cancelled; and

            

    

     

    
      	 	
              (c)

            	
              the
                Borrower shall repay that Bank's Participation in the Loan on the
                last day
                of the Interest Period for each Advance occurring after the Agent
                has
                notified the Borrower or,
                if earlier, the date specified by the Bank in the notice delivered
                to the
                Agent (being no
                earlier than the last day of any applicable grace period permitted
                by
                Law).

            

    

     

    
      	8.2	
              Increased
                Costs

            

    

     

    
      	
              8.2.1

            	
              Subject
                to Clause 8.4, the Borrower shall, within 10 Business Days of a demand
                by
                the Agent, pay
                for the account of a Financing Party the amount of any Increased
                Costs
                incurred by that Financing
                Party or any of its Affiliates as a result of (i) the introduction
                of or
                any change after the date of this Agreement in (or in the interpretation,
                administration or application of) any Law or regulation, (ii) compliance
                with any Law or regulation made after the date of this Agreement
                or (iii)
                compliance with any Law or regulation relating to capital adequacy,
                made
                after the date of this Agreement.

            

    

     

    
      
        	8.2.2	
                In
                  this Agreement Increased
                  Costs means:

              

      

    

     

    
      	 	
              (a)

            	
              a
                reduction in the rate of return from the Facility or on a Financing
                Party's (or its Affiliate's)
                overall capital;

            

    

     

    
      	
            	(b)	
              an
                additional or increased cost; or

            

    

     

    
      	
            	(c)	
              a
                reduction of any amount due and payable under any Financing
                Document,

            

    

     

    which
      is
      incurred or suffered by a Financing Party or any of its Affiliates to the extent
      that it is attributable
      to that Financing Party having entered into its Commitment or funding or
      performing its obligations under any Financing Document.

     

    
      	8.3	
              Increased
                cost claims

            

    

     

    
      	
              8.3.1

            	
              A
                Financing Party intending to make a claim pursuant to Clause 8.2
                shall
                notify the Agent of the
                event giving rise to the claim, following which the Agent shall promptly
                notify the Borrower.

            

    

     

    
      	
              8.3.2

            	
              Each
                Financing Party shall, as soon as practicable after a demand by the
                Agent,
                provide a certificate confirming the amount of its Increased
                Costs.

            

    

     

    
      	8.4	
              Exceptions

            

    

     

    Clause
      8.2 does not apply to the extent any Increased Cost is:

     

    
      	
            	(a)	
              attributable
                to a Tax deduction required by Law to be made by the
                Borrower;

            

    

     

    
      
        
        

      

      
        Page
          31

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              compensated
                for by Clause 9.7 (or would have been compensated for under Clause
                9.7 but was not so compensated solely because any of the exclusions
                in
                sub- clause 9.7.2 of Clause 9.7
                applied);

            

    

     

    
      	
            	(c)	
              compensated
                for by the payment of the Mandatory
                Cost;

            

    

     

    
      	 	
              (d)

            	
              attributable
                to the wilful breach by the relevant Financing Party or its Affiliates
                of
                any Law
                or regulation; or

            

    

     

    
      	 	
              (e)

            	
              not
                notified in writing to the Borrower within 90 days of the Financing
                Party
                becoming aware
                of such Increased Cost.

            

    

     

    
      	8.5	
              Absence
                of quotations

            

    

     

    Subject
      to Clause 8.6, if LIBOR is to be determined by reference to the Reference Banks
      but a Reference Bank does not supply a quotation by 11.00am on the Quotation
      Day, the applicable LIBOR
      shall be determined on the basis of the quotations of the remaining Reference
      Banks.

     

    
      	8.6	
              Market
                disruption

            

    

     

    
      	
              8.6.1

            	
              If
                a Market Disruption Event occurs in relation to an Advance for any
                Interest Period, then the rate
                of interest on each Bank's Participation in that Advance for the
                Interest
                Period shall be the percentage
                rate per annum which is the sum of:

            

    

     

    
      
        	
              	(a)	
                the
                  Interest Margin;

              

      

    

     

    
      	 	
              (b)

            	
              the
                rate notified to the Agent by that Bank as soon as practicable and
                in any
                event before
                interest is due to be paid in respect of that Interest Period, to
                be that
                which expresses
                as a percentage rate per annum the cost to that Bank of funding its
                participation
                in that Loan from whatever source it may reasonably select;
                and

            

    

     

    
      	
            	(c)	
              the
                Mandatory Cost, if any, applicable to that Bank's Participation in
                the
                Advance.

            

    

     

    
      	8.6.2	
              In
                this Agreement Market
                Disruption Event means:

            

    

     

    
      	 	
              (a)

            	
              at
                or about noon on the Quotation Day for the relevant Interest Period
                the
                Screen Rate is not available and none or only one of the Reference
                Banks
                supplies a rate to the Agent
                to determine LIBOR for the relevant Interest Period;
                or

            

    

     

    
      	 	
              (b)

            	
              before
                close of business in London on the Quotation Day for the relevant
                Interest
                Period,
                the Agent receives notifications from a Bank or Banks (whose
                participations in a Loan exceed 33 per cent of that Loan) that the
                cost to
                it or them of obtaining matching deposits in the London Interbank
                Market
                would be in excess of LIBOR.

            

    

     

    
      	8.7	
              Alternative
                basis of interest or
                funding

            

    

     

    
      	
              8.7.1

            	
              If
                a Market Disruption Event occurs and the Agent or the Borrower so
                requires, the Agent and the
                Borrower shall enter into negotiations (for a period of not more
                than 30
                days) with a view to agreeing
                a substitute basis for determining the rate of
                interest.

            

    

     

    
      	
              8.7.2

            	
              Any
                alternative basis agreed pursuant to Clause 8.7.1 shall, with the
                prior
                consent of all the Banks
                and the Borrower, be binding on all
                Parties.

            

    

     

    
      	8.8	
              Break
                Costs

            

    

     

    
      	8.8.1	
              The
                Borrower shall, within three Business Days of demand by a Financing
                Party,
                pay to that Financing
                Party its Break Costs attributable to all or any part of an Advance
                or
                Unpaid Sum being paid by the Borrower on a day other than the last
                day of
                an Interest Period for that Advance or Unpaid
                Sum.

            

    

    

    
      
        
        

      

      
        Page
          32

        
          

        

      

      
        
        

      

    

    
      	8.8.2	
              Each
                Bank shall, as soon as reasonably practicable after a demand by the
                Agent,
                provide a certificate
                confirming the amount of its Break Costs for any Interest Period
                in which
                they accrue.

            

    

     

    
      	8.9	
              Mitigation

            

    

     

    
      	
              8.9.1

            	
              Each
                Financing Party shall, in consultation with the Borrower, take all
                reasonable steps to mitigate
                any circumstances which arise and which would result in any amount
                becoming payable under or pursuant to, or cancelled pursuant to,
                any of
                Clauses 8.1, 8.2, 9.7 or Schedule 9 including (but not limited to)
                transferring its rights and obligations under the Financing Documents
                to
                another Affiliate or Facility
                Office.

            

    

     

    
      	
              8.9.2

            	
              Sub-clause
                8.9.1 above does not in any way limit the obligations of any Security
                Company under the Financing
                Documents.

            

    

     

    
      	8.10	
              Limitation
                of liability

            

    

     

    
      	
              8.10.1

            	
              The
                Borrower shall indemnify each Financing Party for all costs and expenses
                reasonably incurred by that Financing Party as a result of steps
                taken by
                it under Clause 8.9.

            

    

     

    
      	
              8.10.2

            	
              A
                Financing Party is not obliged to take any steps under Clause 8.9
                if, in
                the opinion of that Financing
                Party (acting reasonably), to do so might be prejudicial to
                it.

            

    

     

    
      	9	
              Payments
                and deliveries

            

    

     

    
      	9.1	
              Payments

            

    

     

    
      	
              9.1.1

            	
              Each
                payment by the Borrower or a Bank shall be made to the Agent to such
                account as the Agent
                shall have notified to the Borrower or the Banks for such purpose.
                If the
                Agent receives a
                payment insufficient to discharge all the amounts then due and payable
                by
                the Borrower under
                this Agreement, the Agent shall apply that payment towards the obligations
                of the Borrower
                under this Agreement in the following order (which order shall override
                any appropriation
                made by the Borrower):

            

    

     

    
      	 	
              (a)

            	
              first,
                in or towards payment of any unpaid fees, costs and expenses of the
                Agent,
                the Arranger, the Security Trustee and the Account Bank under any
                Financing Document;

            

    

     

    
      	 	
              (b)

            	
              second,
                in or towards payment pro rata of any accrued interest due but unpaid
                under this Agreement in respect of the
                Loan;

            

    

     

    
      	 	
              (c)

            	
              third,
                in or towards payment pro rata of any principal due but unpaid under
                this
                Agreement in respect of the Loan;
                and

            

    

     

    
      	 	
              (d)

            	
              fourth,
                in or towards payment pro rata of any other sum due but unpaid under
                this
                Agreement.

            

    

     

    
      	
              9.1.2

            	
              The
                Agent shall, if so directed by all the Banks, vary the order set
                out in
                Clauses 9.1.1 (a) to 9.1.1
                (d).

            

    

     

    
      	9.2	
              Change
                of account

            

    

     

    The
      Agent
      may change its receiving account by not less than 5 Business Days' notice to
      the
Borrower.

     

    
      	9.3	
              Currency

            

    

     

    
      	9.3.1	
              All
                payments under this Agreement relating to costs, losses, expenses
                or Taxes
                shall be made in the currency in which the relative costs, losses,
                expenses or taxes were incurred to the extent permitted by Law. Any
                other
                amount payable under this Agreement shall, except as otherwise specified
                in this Agreement, be made in US
                Dollars.

            

    

     

    
      
        
        

      

      
        Page
          33

        
          

        

      

      
        
        

      

    

     

    
      	9.3.2	
              All
                payments to the Agent under this Agreement shall be made for value
                on the
                due date in freely
                transferable and readily available funds. Payments in US Dollars
                shall be
                made in funds for same day settlement in the New York Clearing House
                Interbank Payments System (or such other
                funds as the Agent may specify as being customary for the settlement
                in
                New York City of
                international banking transactions in US
                Dollars).

            

    

     

    
      	9.4	
              Distribution

            

    

     

    
      	
              9.4.1

            	
              The
                Agent may apply any amount received by it for the Borrower in or
                towards
                payment (on the
                date and in the currency and funds of receipt) of any amount due
                from the
                Borrower under this Agreement or in or towards the purchase of any
                amount
                of any currency to be so applied.

            

    

     

    
      	
              9.4.2

            	
              Where
                a sum is to be paid to the Agent under this Agreement for another
                Party,
                the Agent is not
                obliged to pay that sum to that Party until it has established that
                it has
                actually received that
                sum. The Agent may, however, assume that the sum has been paid to
                it in
                accordance with this Agreement, and, in reliance on that assumption,
                make
                available to that Party a corresponding amount. If the sum has not
                been
                made available but the Agent has paid a corresponding
                amount to another Party, that Party shall immediately on demand by
                the
                Agent refund
                the corresponding amount together with interest on that amount from
                the
                date of payment
                to the date of receipt, calculated at a rate determined by the Agent
                to
                reflect its cost of
                funds.

            

    

     

    
      	9.5	
              No
                set-off by Borrower

            

    

     

    All
      payments to be made by the Borrower under the Financing Documents shall be
      calculated and
      be
      made without (and free and clear of any deduction for) set-off or counterclaim,
      save to the extent that the Borrower and the Hedging Banks are expressly
      permitted to exercise set off and netting rights in any Hedging
      Document.

     

    
      	9.6	
              Business
                Days

            

    

     

    
      	
              9.6.1

            	
              Any
                payment which is due to be made on a day that is not a Business Day
                shall
                be made on the
                next Business Day in the same calendar Month (if there is one) or
                the
                preceding Business Day
                (if there is not).

            

    

     

    
      	
              9.6.2

            	
              During
                any extension of the due date for payment of any principal or Unpaid
                Sum
                under this Agreement,
                interest is payable on the principal or Unpaid Sum at the rate payable
                on
                the original
                due date.

            

    

     

    
      	9.7	
              Grossing-up

            

    

     

    
      	
              9.7.1

            	
              Subject
                to Clause 9.7.2, all sums payable to any Financing Party pursuant
                to or in
                connection with
                any Financing Document shall be paid in full free and clear of all
                deductions or withholdings
                whatsoever (excluding Excluded Taxes) and except only as may be required
                by Law.

            

    

     

    
      	
              9.7.2

            	
              If
                any deduction or withholding is required by Law in respect of any
                payment
                due from the Borrower
                to any Financing Party pursuant to or in connection with any Financing
                Document, the
                Borrower shall:

            

    

     

    
      	 	
              (a)

            	
              ensure
                or procure that the deduction or withholding is made and that it
                does not
                exceed
                the minimum legal requirement
                therefor;

            

    

     

    
      	 	
              (b)

            	
              pay,
                or procure the payment of, the full amount deducted or withheld to
                the
                relevant Taxation
                or other authority in accordance with the applicable
                Law;

            

    

    

    
      
        
        

      

      
        Page
          34

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              except
                with respect to Excluded Taxes, increase the payment in respect of
                which
                the deduction
                or withholding is required so that the net amount received by that
                Financing Party
                after the deduction or withholding (and after taking account of any
                further deduction
                or withholding which is required to be made as a consequence of the
                increase) shall be equal to the amount which the payee would have
                been
                entitled to receive
                in the absence of any requirement to make any deduction or withholding;
                and

            

    

     

    
      	 	
              (d)

            	
              promptly
                deliver or procure the delivery to the relative payee of receipts
                evidencing each
                deduction or withholding which has been
                made.

            

    

     

    
      	
              9.7.3

            	
              If
                the Agent is obliged to make any deduction or withholding from any
                payment
                to any Bank (an Agency
                Payment) which
                represents an amount or amounts received by the Agent from the Borrower
                under any Financing Document, then, except with respect to Excluded
                Taxes,
                the Borrower shall pay directly to that Bank such sum (an Agency
                Compensating Sum) as
                shall,
                after taking into account any deduction or withholding which the
                Borrower
                is obliged to make
                from the Agency Compensating Sum, enable that Bank to receive, on
                the due
                date for payment of the Agency Payment, an amount equal to the Agency
                Payment which that Bank would have received in the absence of any
                obligation to make any deduction or
                withholding.

            

    

     

    
      	
              9.7.4

            	
              Each
                Financing Party organized under the Laws of a jurisdiction outside
                the
                United States shall,
                on or prior to the date of its execution and delivery of this Agreement
                in
                the case of each Existing
                Bank or on or prior to the date of the assignment pursuant to which
                a New
                Bank becomes a Financing Party, provide each of the Agent and the
                Borrower
                with two original Internal Revenue Service Forms W-8BEN or W-8ECI,
                or any
                successor or other form prescribed by the Internal Revenue Service,
                certifying that such Financing Party is exempt from or entitled to
                a
                reduced rate of United States withholding tax on payments pursuant
                to this
                Agreement or any other Financing Document. In addition, each such
                Financing Party agrees
                to update such forms upon their expiration date or upon the reasonable
                written request of the Borrower where such forms require updating
                or
                amending pursuant to Law, unless such Financing Party is unable to
                do so
                due to a change in the applicable Law, or in the interpretation
                or application thereof, occurring after the date on which the Financing
                Party was originally
                required to provide such form, certificate or other
                document.

            

    

     

    
      	
              9.7.5

            	
              If
                the Borrower is required to make an increased payment for the account
                of a
                Bank under Clause
                9.7.2, then, without prejudice to that obligation and so long as
                such
                requirement exists the
                Borrower may prepay all, but not part, of that Bank's Participation
                in
                accordance with Clause
                6.4.

            

    

     

    
      	
              9.7.6

            	
              If
                any Bank determines that it has received, realised, utilised and
                retained
                a Tax benefit by reason of any deduction or withholding in respect
                of
                which the Borrower has made an increased payment under this Clause
                9.7,
                that Bank shall, provided that it has received all amounts
                which are then due and payable by the Borrower under any Financing
                Document, pay to the Borrower (to the extent that the Bank can do
                so
                without prejudicing the amount of the
                benefit or repayment and the right of that Bank to obtain any other
                benefit, relief or allowance which may be available to it) such amount,
                if
                any, as that Bank, in its absolute discretion shall determine, will
                leave
                that Bank in no worse position than it would have been in if the
                deduction
                or withholding had not been required, provided
                that:

            

    

     

    
      	 	
              (a)

            	
              each
                Bank shall have an absolute discretion as to the time at which and
                the
                order and manner in which it realises or utilises any Tax benefit
                and
                shall not be obliged to arrange its business or its Tax affairs in
                any
                particular way in order to be eligible for any credit or refund or
                similar
                benefit;

            

    

     

    
      	 	
              (b)

            	
              no
                Bank shall be obliged to disclose any information regarding its business,
                Tax affairs or
                Tax computations;

            

    

     

    
      	 	
              (c)

            	
              if
                any Bank has made a payment to the Borrower pursuant to this Clause
                9.7.6
                on account
                of any Tax benefit and it subsequently transpires that that Bank
                did not
                receive that Tax benefit, or received a lesser Tax benefit, the Borrower
                shall, on demand, pay to that Bank such sum as that Bank may determine
                as
                being necessary to restore its after-tax position to that which it
                would
                have been had no adjustment under this Clause 9.7.6 been
                made.

            

    

     

    
      
        
        

      

      
        Page
          35

        
          

        

      

      
        
        

      

    

     

    
      	
              9.7.7

            	
              If
                a Financing Party, in its sole discretion, determines that it has
                received
                a refund of any taxes or
                with respect to which the Borrower has paid additional amounts pursuant
                to
                this Clause 9.7, it shall pay to the Borrower an amount equal to
                such
                refund (but only to the extent of the taxes or
                additional amounts paid by the Borrower under this Clause 9.7 with respect
                to the taxes giving
                rise to such refund); provided that the Borrower, upon the request
                of the
                Financing Party, agrees to repay the amount paid over to the Borrower
                to
                the Financing Party if the Financing Party is required to repay such
                refund to such taxing authority.

            

    

     

    
      	
              9.7.8

            	
              No
                Bank shall be obliged to make any payment under Clause 9.7 if, by
                doing
                so, it would contravene
                the terms of any applicable Law or any notice, direction or requirement
                of
                any governmental or regulatory authority (whether or not having the
                force
                of Law).

            

    

     

    
      	10	
              Representations
                and warranties

            

    

     

    
      	10.1	
              Borrower
                representations and
                warranties

            

    

     

    Each
      Financing Party and Hedging Bank has entered into this Agreement in reliance
      on
      the representations
      of the Borrower and the Guarantor set out in this Clause 10, and each of the
      Borrower and the Guarantor warrants to each Financing Party and each Hedging
      Bank on the date of this Agreement as set out in this Clause 10.

     

    
      	 	
              (a)

            	
              Status:
                Each
                Security Company is a company duly incorporated and existing under
                the
                Laws of the jurisdiction of its incorporation, and it possesses the
                capacity to sue and be sued in its own name and has the power to
                carry on
                its business and to own its property and other
                assets.

            

    

     

    
      	 	
              (b)

            	
              Powers
                and authority: Each
                Security Company has power to execute, deliver and perform
                its obligations under the Transaction Documents to which it is a
                party and
                to carry
                out the transactions contemplated by those documents and to grant
                and
                create the Security and all necessary corporate, shareholder and
                other
                action has been or will
                be taken to authorise the execution, delivery and performance of
                the same
                and no limitation on the powers of the Borrower to borrow or the
                Guarantor
                to guarantee will be exceeded as a result of borrowings under this
                Agreement.

            

    

     

    
      	
            	(c)	
              Binding
                obligations, security and Secured
                Collateral:

            

    

     

    
      	
            	(i)	
              Each
                of the Security Parties' obligations under the Transaction Documents
                to
                which it is a party constitute its legal, valid, binding and enforceable
                obligations (subject to the reservations and qualifications in respect
                of
                such matters in the opinions delivered pursuant to Schedule 2, Part
                1,
                paragraph 5(i)).

            

    

     

    
      	
            	(ii)	
              Each
                Encumbrance expressed to be created under each Security Document
                (when
                entered into) is and will remain a first priority legal, valid and
                binding
                and
                (subject to the reservations and qualifications in respect of such
                matters
                in the
                opinions delivered pursuant to Schedule 2, Part 1, paragraph 5(i))
                enforceable
                and perfected Encumbrance over the Secured Collateral, subject
                only
                to Permitted Encumbrances (including with respect to
                priority).

            

    

     

    
      
        	
              	(iii)	
                All
                  surface and mining leases constituting Secured Collateral are valid
                  and
                  subsisting
                  in all material respects, and to the best knowledge of the Borrower,
                  all
                  mining leases are superior and paramount to all other leases or
                  other
                  Mining
                  Rights respecting the Mesquite
                  Mine.

              

      

    

    

    
      
        
        

      

      
        Page
          36

        
          

        

      

      
        
        

      

    

    
      	
            	(iv)	
              Except
                as expressly described in the Base Case Model, the Borrower has not
                assigned,
                sold or created in any other person or entity any right or interest
                which
                would give rise to a Royalty
                Expense.

            

    

     

    
      	 	
              (d)

            	
              Contraventions:
                The
                execution, delivery and performance by each Security Company of
                the Financing Documents and Material Contracts to which it is a party
                does
                not:

            

    

     

    
      	
            	(i)	
              contravene
                any applicable Law or regulation or any order of any governmental
                or other
                official authority, body or agency or any judgment, order or decree
                of any
                court having jurisdiction over it;

            

    

     

    
      	
            	(ii)	
              conflict
                with, or result in any breach of any of the terms of, or constitute
                a
                default under, any of the Permits or Mining
                Claims;

            

    

     

    
      	
            	(iii)	
              conflict
                with, or result in any material breach of any of the terms of, or
constitute
                a material default under, any agreement or other instrument to
                which
                it is a party or any licence or other authorisation to which it is
                subject
                or by
                which it or any of its property is bound;
                or

            

    

     

    
      	
            	(iv)	
              contravene
                or conflict with its constitutional documents or by-laws or any
                resolution
                of its board of directors.

            

    

     

    
      	 	
              (e)

            	
              Insolvency:
                Each
                Security Company is able to pay its debts (including trade debts)
                as
                the
                same become due. None of the Security Companies has taken any action
                nor
                have
                any steps been taken, petition presented or resolution passed or
                legal
                proceedings
                been started or threatened against it in respect of any bankruptcy
                proceeding
                or for the winding-up, dissolution, liquidation or re-organisation
                of it
                or any of its assets, the enforcement of any Encumbrance over its
                assets
                or for the appointment of a receiver, administrative receiver, or
                administrator, trustee or similar officer of it or of any of its
                assets.

            

    

     

    
      	
            	(f)	
              No
                default or trigger:

            

    

     

    
      	
            	(i)	
              no
                Default or Trigger has occurred or will occur as a result of making
                any
                Advance; and

            

    

     

    
      
        	
              	(ii)	
                no
                  Security Company is (nor would be with any of the giving of notice,
                  the
                  lapse
                  of time, the determination of materiality, or the satisfaction
                  of any
                  other condition)
                  in breach of or in default
                  under:

              

      

    

     

    
      	
            	(aa)	
              any
                Material Contract to which it is a party or any Permit or Mining
                Claim;

            

    

     

    
      	
            	(bb)	
              any
                other agreement to which it is a party or which is binding on it
                or
                any
                of its assets which could reasonably be expected to have a Material
                Adverse Effect.

            

    

     

    
      	 	
              (g)

            	
              Litigation:
                Other
                than as set out in the letter dated 28 March 2007 from the Borrower
                to the
                Agent, no action, litigation, arbitration or administrative proceeding
                has
                been commenced,
                or is pending or, to the knowledge of the Borrower, threatened, against
                any Security Company which, if decided adversely, could reasonably
                be
                expected to have
                a Material Adverse Effect, nor, to the knowledge of the Borrower,
                is there
                subsisting any unsatisfied judgments or awards given against it by
                any
                court, arbitrator or
                other body for amounts exceeding US$250,000 in aggregate in respect
                of any
                Security
                Company.

            

    

     

    
      	
            	(h)	
              Accounting
                Principles: Each
                of the latest Accounts and other financing statements prepared
                by the Guarantor and delivered by the Borrower to the Agent under
                this
                Agreement have been prepared consistently with United States
                GAAP.

            

    

    

    
      
        
        

      

      
        Page
          37

        
          

        

      

      
        
        

      

    

    
      	
            	(i)	
              Encumbrances:
                No
                Encumbrance other than Permitted Encumbrances exists over all or
                any part
                of the assets of the Borrower or the
                Guarantor.

            

    

     

    
      	
            	(j)	
              No
                Encumbrances created: The
                execution by each of the Security Companies of the Financing
                Documents to which it is or is to be a party and the exercise of
                its
                rights and the
                performance of its obligations under the Financing Documents does
                not and
                will not
                result in the creation of, or any obligation to create, any Encumbrance
                over or in respect of its assets other than in favour of the Secured
                Parties pursuant to the Financing
                Documents.

            

    

     

    
      	
            	(k)	
              Authorisations:

            

    

     

    
      	
            	(i)	
              All
                Permits listed in Schedule 10, Part A and other consents, licences,
                permits, approvals
                and authorisations required by Law and which are
                necessary:

            

    

     

    
      	
            	(aa)	
              to
                carry out the Project;

            

    

     

    
      	
            	(bb)	
              for
                the ownership of the Secured Collateral and the conduct of the Borrower's
                business and (where relevant) to implement the Initial Development
                Plan;

            

    

     

    
      	
            	(cc)	
              for
                the performance and discharge of its obligations under the Transaction
                Documents to which it is a party;
                and

            

    

     

    
      	
            	(dd)	
              in
                connection with the execution, delivery, validity, enforceability
                or
                admissibility
                in evidence of the Transaction Documents to which it is a party,

            

    

     

    (in
      each
      case, other than those other consents, licenses, permits, approvals and
      authorisations referred to in sub-clause (k)(ii) below) have been validly issued
      and obtained and are valid and in full force and effect and there is not (nor
      has there been) a breach or default of their terms and conditions (other than
      a
      breach or default that has been remedied in full by the Borrower and in
respect
      of which there is no outstanding liability), in all cases, other than in the
      case
      of
      the Permits, which could reasonably be expected to have a Material Adverse
      Effect and:

     

    
      	
            	(AA)	
              no
                notice has been served or delivered by any person to revoke, suspend
                or
                vary any such Permits or such other consents,
                licences, permits, approvals and authorisations;
                and

            

    

     

    
      	
            	(BB)	
              to
                the knowledge of the Borrower, no steps have been taken to
                revoke, suspend or vary any such Permits or such other consents,
                licences, permits, approvals and
                authorisations.

            

    

     

    
      	
            	(ii)	
              In
                respect of any Permit listed in Schedule 10, Part B or other consent,
                licence,
                permit, approval and authorisations which are required by Law at
                any
                given
                time after the date of this Agreement and which are necessary to
                do the
                following at such time:

            

    

     

    
      	
            	(aa)	
              to
                carry out of the Project;

            

    

     

    
      	
            	(bb)	
              for
                the ownership of the Secured Collateral and the conduct of the Borrower's
                business and (where relevant) to implement the Initial Development
                Plan;

            

    

     

    
      	
            	(cc)	
              for
                the performance and discharge of its obligations under the Transaction
                Documents to which it is a party;
                and

            

    

     

    
      
        
        

      

      
        Page
          38

        
          

        

      

      
        
        

      

    

     

    
      	
            	(dd)	
              in
                connection with the execution, delivery, validity, enforceability
                or admissibility
                in evidence of the Transaction Documents to which it is a party,

            

    

     

    the
      Borrower has no reason to believe that such Permit, consent, licence,
permit,
      approval or authorisation will not be obtained when the same becomes required
      by
      Law for the purposes specified above.

     

    
      	
            	(iii)	
              No
                statement made by any Security Company for the purpose of any grant
                of
                any
                consent, licence, permit, approval or authorisation necessary for
                the
                carrying out of the Project was false or misleading in any material
                respect or was recklessly made.

            

    

     

    
      	
            	(l)	
              Taxes:
                Each
                Security Company has complied with all Taxation Laws in all jurisdictions
                in which it is subject to Taxation and has paid all Taxes due and
                payable
                by it and no claims
                are being asserted against it in respect of Taxes except for Taxes
                or
                assessments
                in relation to the ordinary course of its business or claims contested
                in
                good faith and in respect of which adequate provision has been made
                and
                disclosed in the
                latest Accounts or other information delivered to the Agent under
                this
                Agreement.

            

    

     

    
      	
            	(m)	
              Information
                Package:

            

    

     

    
      	
            	(i)	
              The
                factual information contained in the Information Package was, at
                the date
                of the relevant report or document, true and accurate and not misleading
                in any material respect;

            

    

     

    
      	
            	(ii)	
              there
                are no other facts the omission of which would make any fact or
                statement
                in the Information Package misleading in any material respect and
                nothing
                has occurred which would render any fact or statement in the Information
                Package untrue or misleading in any material
                respect;

            

    

     

    
      	
            	(iii)	
              all
                estimates, forecasts and projections contained or referred to in
                the
                Information
                Package and all assumptions and presumptions upon the basis of
                which
                the same were made, were, in the opinion of the Borrower and the
                Guarantor
                acting reasonably, fair and reasonable at the time they were made,
                and,
                to the knowledge of the Borrower and the Guarantor, nothing has occurred
                since the date the same were made which would necessitate a materially
                adverse revision to any of those estimates, forecasts or projections
                in
                order for them to be fair and reasonable;
                and

            

    

     

    
      	
            	(iv)	
              there
                are no facts, transactions, events or occurrences (other than general
                political
                or economic facts, transactions, events or occurrences) which
                could easonably
                be expected to materially adversely affect the business, assets,
                liabilities
                or financial condition of any Security Company and which have not
                been
                disclosed to the Agent.

            

    

     

    
      	
            	(n)	
              Accounting
                reference date: The
                accounting reference date of the Borrower is 31 December.

            

    

     

    
      
        
        

      

      
        Page
          39

        
          

        

      

      
        
        

      

    

     

    
      	
            	(o)	
              Environmental:

            

    

     

    
      	
            	(i)	
              Each
                Security Company has at all times since 7 November 2003 complied
                (and
                continues to do so) with all relevant applicable Environmental Laws
                and
                Environmental
                Authorisations in connection with the conduct of its business and
                the ownership, use, exploitation or occupation of its assets and
                there has
                been
                no default in the observance of the conditions and restrictions (if
                any)
                imposed in, or in connection with, any of the same and to the best
                of its
                information,
                knowledge and belief, no circumstances have
                arisen:

            

    

     

    
      	
            	(aa)	
              which
                would entitle any person or entity to revoke, suspend, amend, vary,
                withdraw or refuse to amend any Environmental Authorisation;
                or

            

    

     

    
      	
            	(bb)	
              which
                might give rise to a claim against
                it.

            

    

     

    
      	
            	(ii)	
              Since
                7 November 2003 no circumstances have arisen relating to the treatment,
                storage, manufacture, generation, refining or use of Dangerous
                Materials
                from, in, upon, or under any real property owned or occupied by any
                Security
                Company which might reasonably be expected to have an adverse effect
                on the Environment.

            

    

     

    
      	
            	(iii)	
              To
                the best of its information, knowledge and belief, prior to 7 November
                2003:

            

    

     

    
      	
            	(aa)	
              there
                was no material default in the observance of the conditions and
                restrictions
                (if any) imposed in, or in connection with, any of the relevant applicable
                Environmental Laws and Environmental Authorisations in connection
                with the
                conduct of the business of the Mesquite Mine and the ownership, use,
                exploitation or occupation of the
                Mesquite Mine assets;

            

    

     

    
      	
            	(bb)	
              no
                circumstances arose which might give rise to a claim against any
                Security
                Company that could reasonably be expected to have a Material
                Adverse Effect; and

            

    

     

    
      	
            	(cc)	
              no
                circumstances arose relating to the treatment, storage, manufacture,
                generation, refining or use of Dangerous Materials from, in, upon,
                or
                under any real property of the Mesquite Mine which could reasonably
                be expected to have a material adverse effect on the Environment.

            

    

     

    
      	
            	(p)	
              Capital
                Expenditure: The
                Borrower has (taking into account the Commitments of the Banks hereunder)
                sufficient committed funds available to it to enable it to make the
                Permitted Capital Expenditures anticipated in the Initial Development
                Plan.

            

    

     

    
      	
            	(q)	
              No
                material adverse change,
                etc.:

            

    

     

    
      	
            	(i)	
              since
                the date of the latest Accounts delivered to the Agent, no event
                has
                occurred
                which has had or could be reasonably expected to have a Material
                Adverse
                Effect and which has not been taken into account in the Development
                Plan;

            

    

     

    
      	
            	(ii)	
              since
                7 November 2003, the Borrower (aa) has not undertaken any trading
                activity
                other than the operation and development of the Mesquite Mine or
                as
                contemplated by the Development Plan, the Mining Claims, the Permits
                or
                the Material Contracts or other contracts or agreements in respect
                of the
                Project and (bb) has not acquired any assets or liabilities except
                for
                assets and liabilities which may arise pursuant to the Mining Claims,
                the
                Permits and the Material Contracts or other contracts or agreements
                in
                respect of the Project and liabilities which are included in the
                Development Plan; and

            

    

    

    
      
        
        

      

      
        Page
          40

        
          

        

      

      
        
        

      

    

    
      	
            	(iii)	
              the
                Borrower does not carry on any trade or business other than the
                Project.

            

    

     

    
      	
            	(r)	
              Title:
                The
                Borrower has good, marketable and indefeasible title to, and is the
                beneficial owner
                of, all Secured Collateral, free and clear of any Encumbrance other
                than
                any Permitted Encumbrance.

            

    

    
       

    

    
      	
            	
              (s)

            	
              Hedging:
                the
                Borrower has not entered into any Derivative Transaction other than
                the
                Permitted Hedging Transactions.

            

    

     

    
      	
            	(t)	
              Transaction
                Documents and Consents:

            

    

     

    
      
        	
              	(i)	
                The
                  copies of the Transaction Documents and authorisations, approvals,
                  licences
                  and consents which are delivered to the Agent by the Borrower from
                  time to
                  time are true and complete copies of such documents as at the date
                  on
                  which they are delivered, and include copies of all side letters
                  relating
                  thereto (if
                  any).

              

      

    

     

    
      
        	
              	(ii)	
                None
                  of the documents referred to in Clause 10.1 (t)(i) has been materially
                  varied
                  or supplemented in any way since the relevant copies were delivered
                  to
                  the
                  Agent except by means of a document, a Certified Copy of which
                  has
                  been
                  given to the Agent.

              

      

    

     

    
      	
            	(iii)	
              There
                are no other material agreements or arrangements to which any Security
                Company is a party on the date of this Agreement relating to the
                Project,
                Certified Copies of which have not been delivered to the Agent prior
                to
                the
                date of this Agreement.

            

    

     

    
      	
            	(u)	
              Insurances:

            

    

     

    
      	
            	(i)	
              All
                Insurances required pursuant to the Agreed Insurance Programme and
                by
                Law
                to be in place have been placed, are in full force and effect and
                no event
                or
                circumstance has occurred nor has there been any omission to disclose
                a
                fact which in any such case could entitle any Insurer to avoid or
                otherwise reduce its liability under or in respect of any such insurances
                to less than the amount provided in the relevant
                policy.

            

    

     

    
      	
            	(ii)	
              There
                are no insurances in effect under which the Borrower is insured or
                has any
                rights except for the Insurances.

            

    

     

    
      	
            	(v)	
              Development
                Plan and Operating Budget:

            

    

     

    
      	
            	(i)	
              The
                most recent Development Plan and Operating Budget required to be
delivered
                to the Agent under this Agreement and the assumptions on which
                such
                documents were based were arrived at by the Borrower and its directors
                in
                good faith, with due care and proper
                consideration.

            

    

     

    
      
        	
              	(ii)	
                It
                  is not aware of any fact, event or circumstances which makes the
                  most
                  recent
                  Development Plan and/or Operating Budget inaccurate or misleading
                  in
                  a
                  manner that could reasonably be expected to have a Material Adverse
                  Effect.

              

      

    

     

    
      	
            	(iii)	
              As
                at the date of this Agreement the Base Case Model takes due account
                of:

            

    

     

    
      	
            	(aa)	
              all
                provisions of the Transaction Documents and other authorisations,
                approvals,
                licences and consents;

            

    

     

    
      	
            	(bb)	
              all
                applicable Laws as they apply (including those relating to Taxes);
                and

            

    

     

    
      
        
        

      

      
        Page
          41

        
          

        

      

      
        
        

      

    

     

    
      	
            	(cc)	
              all
                other relevant facts and circumstances affecting the Project that
                are
                known
                to the Security Companies.

            

    

     

    
      	10.2	
              Repetition

            

    

     

    The
      representations set out in this Clause 10 shall survive the execution of this
      Agreement and
      the
      Repeating Representations are deemed to be repeated by the Borrower and, until
      the Completion Date, by the Guarantor by reference to the facts and
      circumstances then existing on
      each
      Drawdown Date, the first date of each Interest Period, the Completion Date
      and,
      for the benefit of the Hedging Banks only, on the date each ISDA Master
      Agreement is entered into and the date on which each Transaction (as defined
      in
      the relevant ISDA Master Agreement)
      is entered into.

     

    
      	11	
              Undertakings

            

    

     

    
      	11.1	
              Information
                undertakings

            

    

     

    The
      undertakings in this Clause 11.1 are made by the Borrower to each Financing
      Party and each
      Hedging Bank and shall remain in force during the Security Period, unless the
      Agent (acting
      on the instructions of the Majority Banks) otherwise agrees.

     

    
      	 	
              (a)

            	
              Annual
                Accounts: As
                soon as the same become available (and in any event within 120
                days after the end of each of its Financial Years), the Borrower
                shall
                deliver to the Agent
                in sufficient copies for all the Banks its Accounts and the Accounts
                of
                the Guarantor for each Financial Year which shall, in the case of
                the
                Guarantor's Accounts, have been audited by the
                Auditors.

            

    

     

    
      	 	
              (b)

            	
              Interim
                Accounts: As
                soon as the same become available (and in any event within 45
                days after the end of each of the first three quarter periods of
                each of
                its Financial Years), the Borrower shall deliver to the Agent in
                sufficient copies for all the Banks its management
                accounts and the unaudited interim consolidated accounts of the
                Guarantor
                for each such quarter period.

            

    

     

    
      	
            	(c)	
              Development
                Plan and Operating
                Budgets:

            

    

     

    The
      Borrower shall:

     

    
      	
            	(i)	
              provide
                to the Agent (with sufficient copies for the Banks and the Independent
                Technical
                Consultant) for the Agent's approval any proposed material alterations
                to the Development Plan to reflect any change to the Project or any
                Variation.
                The Agent may commission the undertaking of an independent study
                to
                evaluate such proposed alteration, such independent study to be at
                the
                Borrower's expense. Until the Agent has approved such alterations
                (acting
                on the instructions of the Majority Banks) the previously approved
                Development Plan will continue in
                effect;

            

    

     

    
      	
            	(ii)	
              provide
                to the Agent for the Agent's approval (such approval to be given
                in
                accordance
                with the instructions of the Majority
                Banks):

            

    

     

    
      	
            	(aa)	
              not
                less than 45 days prior to the first Repayment Date following the
                Completion
                Date and thereafter no later than 30 days prior to the end of
                each Financial Year; and

            

    

     

    
      
        	
              	(bb)	
                at
                  the same time as any alteration to the Development Plan is proposed
                  in accordance with sub-clause (i) above following the Completion
                  Date,
                  

              

      

    

    
       

      an Operating
        Budget for the twelve Month period following such Repayment Date
        or
        alteration to the Development Plan. Each such Operating Budget shall be
        consistent with the Development Plan, (except where any alteration to the
        Development Plan is being proposed, in which case it shall be consistent
        with
        the proposed Development Plan) or in the event that it is not so consistent,
        the Borrower shall simultaneously propose an alteration to the Development
        Plan
        (in accordance with sub-clause (i) above) and explain the reason
        for any such alteration thereto. Until the Agent has approved such Operating
        Budget (acting on the instructions of the Majority Banks) the Borrower shall
        be
        obliged to comply with the most recently approved Operating Budget which
        will
        continue in effect; and

       

    

    
      
        
        

      

      
        Page
          42

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iii)	
              on
                a request of the Agent or, if the Borrower shall determine that any
                of the
                estimates,
                forecasts, assumptions (whether technical or economic) or other
                projections
                contained within the Development Plan and/or the Operating Budget
                are materially incorrect and/or should be materially different from
                those
                set
                out in the then current Development Plan or Operating Budget (as
                the case
                may be), then immediately following such request or determination,
                provide
                to the Agent revised estimates forecasts, assumptions or other projections
                and revise the Development Plan and the Operating Budget accordingly
                provided that in the event of any dispute as to whether such estimates,
                forecasts, assumptions or projections are materially incorrect, the
                Agent
                (acting reasonably) shall determine the applicable estimates, forecasts
                assumptions
                and projections which shall apply on the basis of that which it considers
                to be prudent at the time (but in the case of technical issues, after
                consultation with the Independent Technical
                Consultant).

            

    

     

    
      	 	
              (d)

            	
              Monthly
                Reports: The
                Borrower shall deliver to the Agent (in sufficient copies for all
                the
                Banks and the Independent Technical
                Consultant):

            

    

     

    
      	
            	(i)	
              a
                Monthly Report; and

            

    

     

    
      	
            	(ii)	
              a
                Monthly summary of management information regarding the Guarantor
                and its
                Subsidiaries,

            

    

     

    in
      each
      case, not more than 30 days after the end of each calendar Month.

     

    
      	 	
              (e)

            	
              Information
                on request: The
                Borrower shall promptly following the Agent's request, and at the
                Borrower's expense, provide or procure the provision to the Agent
                of such
                other
                information, estimates, forecasts or projections in relation to any
                Security Company
                and any of the businesses, assets, financial condition, ownership
                or
                prospects of any Security Company as the Agent may reasonably
                require.

            

    

     

    
      	 	
              (f)

            	
              Compliance
                certificates: On
                each Repayment Date, the Borrower shall provide to the Agent a Compliance
                Certificate.

            

    

     

    
      	 	
              (g)

            	
              Reserve
                Statements: The
                Borrower shall provide the Agent with all revised Reserve Statements
                which
                have been prepared pursuant to changes to the Development Plan or
                as
                required by Law.

            

    

     

    
      	
            	(h)	
              ITC
                Report: The
                Borrower shall co-operate with, and provide all
                reasonable

            

    

     

    assistance
      to, the Independent Technical Consultant including access during normal
working
      hours to financial and technical information and data and relevant directors
      and
      other
      personnel to enable the ITC Report being made available (at the expense of
      the
      Borrower) no later than 30 days after the relevant date, which shall
      be:

     

    
      	
            	(i)	
              prior
                to the Completion Date, the last day of each three Month period after
                the
                date of this Agreement;

            

    

     

    
      	
            	(ii)	
              the
                Completion Date; and

            

    

     

    
      
        
        

      

      
        Page
          43

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iii)	
              following
                the occurrence of the Completion Date, each anniversary thereof,
                if
                required
                by the Agent (acting on the instructions of the Majority Banks, acting
                reasonably).

            

    

     

    
      	
            	(i)	
              Accounting
                Principles: The
                Borrower shall ensure that all Accounts and other financial
                statements submitted to the Agent and the Banks under this Agreement
                are
                prepared
                in accordance with United States
                GAAP.

            

    

     

    
      	
            	(j)	
              Default,
                litigation, etc.: The
                Borrower shall, promptly upon becoming aware of the same
                and, in any event, within 5 Business Days of becoming aware of the
                same,
                notify
                the Agent and provide details of:

            

    

     

    
      	
            	(i)	
              the
                occurrence of a Default or Trigger;

            

    

     

    
      	
            	(ii)	
              any
                litigation, arbitration or administrative proceeding (including any
notification
                from any governmental or administrative authority in respect of any
                alleged
                breach of Environmental Law) commenced against any Security Company
                or the Secured Collateral (or any part thereof) either involving
                a
                potential liability in excess of US$250,000 or which could reasonably
                be
                expected to have a Material Adverse
                Effect;

            

    

     

    
      	
            	(iii)	
              any
                notice, order, direction, requisition, permission or other like matter
                whatsoever
                issued by any competent person or entity or government authority
                or
                department to the any Security Company relating to such company,
                or any of
                its respective undertaking, rights or assets the effect of which
                could
                reasonably be expected to have a Material Adverse
                Effect;

            

    

     

    
      	
            	(iv)	
              any
                occurrence (including the occurrence of any event beyond the reasonable
                control
                of the Borrower (other than general political or economic events
                of
                occurrence)
                or any third party claim or liability) which could reasonably be
                expected
                to have a Material Adverse Effect;

            

    

     

    
      	
            	(v)	
              any
                occurrence which causes the unscheduled cessation or disruption to
                construction
                or operation of the Mining Operations or refining operations for
                a period
                of three or more days; and

            

    

     

    
      	
            	(vi)	
              any
                proposal (whether formal or informal) for the material amendment,
cancellation,
                waiver, surrender, abandonment, termination or other similar action
                in relation to any Mining Claim, Permit, Mining Right or Material
                Contract
                other than any such proposal in relation to any Mining Claim, Permit,
                Mining
                Right or Material Contract that is not, at the time of such proposal
                required in the Development
                Plan.

            

    

     

    
      	
            	(k)	
              Insurances:
                The
                Borrower shall notify the Agent promptly on the happening of any
                event
                which could reasonably be expected to affect, render void, voidable,
                unenforceable, suspend, impair or defeat any of the Insurances in
                a
                material manner; or of any fact, event or circumstance which has
                caused or
                may cause the Borrower to be in breach of any material requirement
                in
                relation to the Insurances.

            

    

     

    
      	
            	(l)	
              Contracts:
                The
                Borrower shall provide to the Agent Certified Copies of any contract,
                or
                agreement entered into by the Borrower after the date of this Agreement
                in
                accordance with Clause 11.4(m)(ii).

            

    

     

    
      	11.2	
              Guarantor
                undertakings

            

    

     

    
      	11.2.1	
              The
                Guarantor undertakes to each Financing Party and each Hedging Bank
                that
                prior to the Completion Date, it shall unless the Agent (acting on
                the
                instructions of the Majority Banks) otherwise
                agrees:

            

    

    
       

      
        	 	
                (a)

              	
                maintain
                  a consolidated net worth equal to or greater than US$25,000,000,
                  computed
                  in accordance with United States
                  GAAP;

              

      

    

    
       

      
        
        

      

      
        Page
          44

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              maintain
                Current Assets in excess of Current Liabilities (as such terms are
                defined
                in its
                latest Accounts) by 1.1:1;

            

    

     

    
      	 	
              (c)

            	
              not
                incur any additional Indebtedness after the date of this Agreement
                in
                excess of US$5,000,000
                outstanding at anytime;

            

    

     

    
      	
            	(d)	
              own,
                directly or indirectly, 100% of the voting rights in the Borrower;
                and

            

    

     

    
      	 	
              (e)

            	
              provide
                to the Borrower such non-monetary support and assistance using its
                reasonable
                commercial efforts as is necessary for Completion to be achieved
                by the
                Target Completion Date provided that such support and assistance
                does not
                constitute a payment or performance guarantee and provided further
                that
                the Guarantor shall not be liable for any losses, costs, expenses,
                damages
                or other amounts arising from the failure
                to achieve Completion by the Target Completion Date, other than to
                the
                extent set
                out in the Guarantee.

            

    

     

    
      	
              11.2.2

            	
              The
                Guarantor undertakes to each Financing Party and each Hedging Bank
                that
                following the Completion
                Date and until expiry of the Security Period, it shall, unless the
                Agent
                (acting on the instructions of the Majority Banks) otherwise agrees
                own at
                least 50.1% of the voting rights in the Borrower and provide to the
                Borrower such non-monetary support and assistance using its reasonable
                commercial efforts as is necessary for the Mining Operations to be
                conducted in a manner that would be expected of a professional, prudent
                operator of a mine of the size, location
                and characteristics comparable to the Project and in the manner and
                with
                the skill and care
                of a reasonable business man, provided that such support and assistance
                does not constitute a payment or performance guarantee and provided
                further that the Guarantor shall not
                be liable for any losses, costs, expenses, damages or other amounts
                arising from the failure of the Mining Operations to be so
                conducted.

            

    

     

    
      	
              11.2.3

            	
              The
                Parties acknowledge that the Guarantor intends to enter into certain
                transactions as contemplated in the "Agreement and Plan of Merger
                between
                Western Goldfields, Inc, Western
                Goldfields US Inc and Western Goldfieds Inc" (for the purpose of
                this
                Clause, the Merger
                Agreement) appended
                to the United States Securities and Exchange Commission Form
                S - 4 dated 26 March 2007 (for the purpose of this Clause, the
                Restructure).

            

    

     

    If
      the
      Restructure is approved by the stockholders of the Guarantor and the Guarantor
      proceeds
      with the implementation of the Restructure, the Guarantor shall procure, prior
      to completion
      of the Restructure and to the satisfaction of the Agent (acting on the
      instructions of the
      Majority Banks):

     

    
      	 	
              (a)

            	
              that
                if the Restructure occurs prior to the Completion Date, the ultimate
                Holding Company of the Guarantor (for the purpose of this Clause,
                the
                Parent)
                issues
                in favour of the Financing Parties and the Hedging Banks a guarantee
                on
                the terms of the Guarantee;

            

    

     

    
      	
            	(b)	
              that
                the Parent accede to this Agreement on the same terms as the
                Guarantor;

            

    

     

    
      	 	
              (c)

            	
              that
                the immediate Holding Company of the Borrower (for the purpose of
                this
                Clause, the HoldCo)
                enters
                into a stock pledge agreement or agreements on the terms of the Pledge
                Agreement;

            

    

     

    
      	 	
              (d)

            	
              that
                the HoldCo accedes to this Agreement in order to give the covenants
                set
                out in Clauses
                11.2.1 (d) and 11.2.2; and

            

    

     

    
      	 	
              (e)

            	
              in
                relation to the Parent and the HoldCo and the transactions contemplated
                in
                (a) to (d) above,
                the provision of such legal opinions, corporate resolutions and such
                other
                documentation (including know your customer documentation) as the
                Agent
                may reasonably
                request.

            

    

     

    
      
        
        

      

      
        Page
          45

        
          

        

      

      
        
        

      

    

     

    
      	
              11.2.4

            	
              If,
                at any time after the date of this Agreement and during the Security
                Period, the Guarantor proposes to make or effect, or submits any
                filings
                to make or effect, any material changes to the
                Restructure, it shall no later than 10 Business Days prior to such
                material amendments being
                made or effected or such filings being
                submitted:

            

    

     

    
      	 	
              (a)

            	
              notify
                the Agent in writing of such proposals to be made or effected, or
                filings
                to be submitted;
                and

            

    

     

    
      	 	
              (b)

            	
              consult
                with the Agent in respect of such proposals to be made or effected,
                or
                filings to be
                submitted and the affect the same would have on the interests of
                the
                Financing Parties
                and Hedging Banks under the Financing
                Documents.

            

    

     

    If,
      in
      the Agent's opinion (acting reasonably and on the instructions of the Majority
      Banks and in consultation with the Banks' Legal Advisers) such material
      changes:

     

    
      	
            	(i)	
              could
                be expected to have a Material Adverse
                Effect;

            

    

     

    
      	
            	(ii)	
              could
                be expected to render any or all of the undertakings and conditions
                referred to in Clause 11.2.3 above inapplicable or unenforceable;
                or

            

    

     

    
      	
            	(iii)	
              result
                in a different:

            

    

     

    
      	
            	(AA)	
              final
                corporate group structure (including the additional of interim
                holding
                companies); or

            

    

     

    
      	
            	(BB)	
              management
                team and board of directors, in
                each case, to that contemplated in the Merger Agreement and the
                Restructure
                and which could reasonably be expected to have an adverse effect
                on the Financing Parties and Hedging Banks' interests under the
                Financing
                Documents,

            

    

     

    the
      Guarantor shall not make or effect, or submit any filings to make or effect,
      such material changes until the Parties have agreed, to the satisfaction of
      the
      Agent (acting on the instructions of the Majority Banks), such changes to the
      undertakings and conditions referred to
      in
      Clause 11.2.3 above as are appropriate and necessary with regard to the
      Financing Parties
      and Hedging Banks' interests under the Financing Documents.

     

    
      	
              11.2.5

            	
              On
                satisfaction of the conditions set out in Clauses 11.2.3 and 11.2.4
                above,
                the Guarantee and
                the Pledge Agreement shall terminate and the Guarantor shall have
                no
                further liabilities under
                those documents or this Agreement save for any liabilities that arose
                prior to the satisfaction of such conditions and which remain outstanding
                at such time.

            

    

     

    
      	
              11.2.6

            	
              Any
                information received by the Agent pursuant to Clause 11.2.4 shall
                be
                treated as "Confidential Information" for the purposes of Clause
                24.2.

            

    

     

    
      	11.3	
              Positive
                undertakings

            

    

     

    The
      undertakings in this Clause 11.3 are made by the Borrower to each Financing
      Party and each
      Hedging Bank and shall remain in force during the Security Period, unless the
      Agent (acting
      on the instructions of the Majority Banks) otherwise agrees.

     

    
      	
            	(a)	
              Pay
                Taxes: The
                Borrower shall pay and discharge all Taxes and governmental charges
                payable by or assessed upon it prior to the date on which the same
                become
                overdue
                unless, and only to the extent that, such Taxes and charges shall
                be
                contested
                in good faith by appropriate proceedings, pending determination of
                which
                payment may lawfully be withheld, and there shall (if the Auditors
                so
                advise) be set aside adequate reserves with respect to any such Taxes
                or
                charges so contested in accordance with United States
                GAAP.

            

    

     

    
      
        
        

      

      
        Page
          46

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Insurances:
                The
                Borrower shall comply with all its obligations set out in the Agreed
                Insurance Programme.

            

    

     

    
      	 	
              (c)

            	
              Authorisations:
                The
                Borrower shall obtain, maintain and comply with the terms of any:

            

    

     

    
      	
            	(i)	
              Permit;
                and

            

    

     

    
      	
            	(ii)	
              any
                other permit, authorisation, approval, licence, consent, exemption,
                clearance,
                filing or registration necessary:

            

    

     

    
      	
            	(aa)	
              for
                the conduct of its business in accordance with the Development
                Plan;
                and

            

    

     

    
      	
            	(bb)	
              to
                enable it to perform its obligations under, or for the validity,
                enforceability
                or admissibility in evidence of, any Transaction Document,
                other
                than where the absence of such permit, authorisation, approval, licence,
                consent,
                exemption, clearance, filing or registration could not reasonably
                be
                expected to have a Material Adverse
                Effect.

            

    

     

    
      	 	
              (d)

            	
              Access:
                For
                the purpose of monitoring the performance of the Borrower's obligations
                under the Transaction Documents the Borrower shall permit the Agent
                or the
                Banks and
                any person or entity (being an accountant, auditor, solicitor, valuer
                or
                other professional
                adviser of the Agent or the Banks and including the Independent
                Technical
                Consultant) authorised by the Agent, at all reasonable times during
                normal
                business
                hours and on reasonable notice, to have access to its property, premises
                and
                accounting books and records and to its officers, but in no event
                more
                than once in any 12 Month period other than (i) when a Trigger Event
                or an
                Event of Default has occurred
                and is continuing and then as often as the Agent deems necessary
                or
                advisable and (ii) in respect of the Agent and the Independent Technical
                Consultant who together shall be entitled to have such access to
                its
                property, premises and accounting
                books and records and to its officers four times during any 12 Month
                period from
                the date of this Agreement until the Completion
                Date.

            

    

     

    
      	 	
              (e)

            	
              Mining
                Operations: The
                Borrower shall develop, maintain and operate the Mining Operations
                in
                accordance with the Development Plan in all material respects and
                procure
                that the same and other assets of the Borrower are maintained and
                diligently operated
                for the extraction, production, transportation, storage, processing
                and
                delivery of gold in a good and workmanlike manner and in accordance
                with
                (a) prudent industry practices, (b) the Transaction Documents and
                (c) in
                all material respects, all applicable Laws, rules and regulations,
                and
                procure that appropriate action is taken according to practices of
                prudent
                operators in the industry to maintain and manage the Mining Operations
                and
                all operations on such sites and procure that all machinery, equipment
                and
                facilities of any kind now or hereafter forming part of the same
                or on
                such sites as necessary for the extraction, production, transportation,
                storage, processing, delivery or marketing of gold are provided and
                are
                kept in all material respects in good and efficient operating condition
                (taking into account reasonable wear and
                tear).

            

    

     

    
      	
            	(f)	
              Maintenance
                of Secured Collateral:

            

    

     

    The
      Borrower shall:

     

    
      	
            	(i)	
              maintain
                all tangible Secured Collateral in good condition and repair (ordinary
                wear and tear accepted);

            

    

     

    
      	
            	(ii)	
              defend
                the Secured Collateral against all claims by persons or entities
                other
                than the Agent; and

            

    

     

    
      
        
        

      

      
        Page
          47

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iii)	
              take
                all commercially reasonable steps necessary to release or discharge
                any
                Encumbrance
                (other than a Permitted Encumbrance) on the Secured Collateral
                in favour of any third party, including by paying any amounts owed
                in
                respect thereof in compliance with the Financing Documents, unless
                the
                Borrower is contesting such Encumbrance in good faith by proper legal
                proceedings; provided that in the event the Borrower fails to release,
                discharge
                or contest any such Encumbrance promptly, the Agent may (but shall
                not be obligated to) satisfy or contest such Encumbrance, and the
                Borrower
                shall reimburse the Agent for all sums expended to so satisfy or
                contest
                on demand.

            

    

     

    
      	
            	(g)	
              Mining
                Rights and Material
                Contracts:

            

    

     

    The
      Borrower shall:

     

    
      
        	
              	(i)	
                carry
                  out its business including the operations which are the subject
                  of the
                  Mining Rights in a manner consistent with prudent industry
                  practice;

              

      

    

     

    
      	
            	(ii)	
              pay
                when due all claims, maintenance fees, rents, Royalty Expenses and
                other
                royalties and other sums and make all filings with government agencies
                as
                are required to maintain the Mining Rights and the Mining Claims
                in good
                standing; and

            

    

     

    
      	
            	(iii)	
              comply
                with the terms of each of the Material Contracts except to the extent
                that
                non-compliance could not reasonably be expected to have a Material
                Adverse
                Effect.

            

    

     

    
      	
            	(h)	
              Ranking
                of obligations: The
                Borrower shall ensure that its obligations under the FinancingDocuments
                to which it is a party insofar as the same are not secured under
                any of
                the Security Documents, shall at all times rank at least pari passu
                with
                all its other
                present and future Indebtedness except for any obligations which
                are
                mandatorily
                preferred by Law and not by
                contract.

            

    

     

    
      	
            	(i)	
              Priority
                of Security: The
                Borrower shall ensure that its payment obligations to the Banks
                and the Hedging Banks under the Financing Documents to the extent
                that
                they are secured under the Security Documents, shall at all times
                rank in
                all respect in priority to all its other Indebtedness other than
                such
                Indebtedness as would be preferred by applicable
                Law.

            

    

     

    
      	
            	(j)	
              Further
                documents: The
                Borrower shall at the request of the Agent, do or procure the
                doing of all such things and execute or procure the execution of
                all such
                documents
                as are, in the opinion of the Agent acting reasonably, required to
                ensure
                that
                the Secured Parties obtain all the rights and benefits intended to
                be
                conferred on them
                under the Security Documents.

            

    

     

    
      	
            	(k)	
              Compliance
                with Laws (other than Environmental Laws): The
                Borrower shall maintain
                all Secured Collateral in compliance with and otherwise comply in
                all
                respects
                with the Law, excluding Environmental Laws, except to the extent
                any
                non-compliance
                could not reasonably be expected to have a Material Adverse
                Effect.

            

    

     

    
      	
            	(l)	
              Compliance
                with Environmental Laws: The
                Borrower shall comply in all respects with Environmental
                Law.

            

    

     

    
      	
            	(m)	
              Dangerous
                Materials: The
                Borrower shall ensure that all Dangerous Materials treated,
                kept and stored, produced, manufactured, generated, refined or used
                from,
                in, upon, or under any of the property owned or occupied by it are
                held
                and kept upon such property in compliance with applicable Law and
                in such
                a manner consistent with prudent industry
                practice.

            

    

     

    
      
        
        

      

      
        Page
          48

        
          

        

      

      
        
        

      

    

     

    
      	
            	(n)	
              Consent
                to Assignment: At
                the request of the Agent, the Borrower shall deliver to the Agent
                a Consent to Assignment in respect of any Material Contract described
                under Clause
                11.4(m)(ii)(cc).

            

    

     

    
      	
            	(o)	
              Maintenance
                of Existence: The
                Borrower shall do all things necessary to preserve and
                keep in full force and effect its existence, franchises, rights and
                privileges under the
                Laws of the State of Nevada.

            

    

     

    
      	11.4	
              Negative
                undertakings

            

    

     

    
      Theundertakings
        in this Clause 11.4 are made by the Borrower to each Financing Party and
        each
        Hedging Bank and shall remain in force during the Security Period, unless
        the
        Agent (acting
        on the instructions of the Majority Banks) otherwise agrees.

    

     

    
      	 	
              (a)

            	
              Negative
                Pledge: The
                Borrower shall not create or permit to subsist any Encumbrance over
                any of
                its assets other than Permitted
                Encumbrances;

            

    

     

    
      	
            	(b)	
              Disposal
                of assets: The
                Borrower shall not make a Disposal other
                than:

            

    

     

    
      	
            	(i)	
              Disposals
                of mineral production in the ordinary course of its operating or
trading
                activities at arm's length and on commercial terms and not inconsistent
                with
                the Development Plan;

            

    

     

    
      	
            	(ii)	
              Disposals
                in respect of which the book value of any single asset disposed of
                by the
                Borrower does not exceed US$250,000 (or the equivalent thereof) or
                in
                respect of which all assets disposed of by the Borrower in any 12
                Month
                period does not exceed US$500,000 (or the equivalent thereof), provided
                that such Disposal:

            

    

     

    
      	
            	(aa)	
              is
                not inconsistent with the Development Plan;
                or

            

    

     

    
      	
            	(bb)	
              does
                not adversely affect the Borrower's ability to implement the Development
                Plan;

            

    

     

    
      	
            	(iii)	
              a
                Disposal at arm's length and on commercial terms of obsolete assets
                or of
                assets
                which are promptly replaced by other assets of equivalent or greater
                utility;

            

    

     

    
      	
            	(iv)	
              a
                Disposal of any Permitted Investment held in an account subject to
                the
                Account
                Control Agreement;

            

    

     

    
      	
            	(v)	
              the
                grant of any option or other right to purchase any asset in a transaction
                that
                would be permitted under this Clause 11.4(b);
                or

            

    

     

    
      	
            	(vi)	
              Disposals
                of any assets, including without limitation any Permitted Investment,
                held
                in the Distribution Account.

            

    

     

    For
      the
      purposes of this paragraph, the value of any asset shall be the greater of
      its
book
      value and the consideration received for it.

     

    
      	 	
              (c)

            	
              Mergers:
                The
                Borrower shall not enter into any amalgamation, demerger, merger
                or
                reconstruction.

            

    

     

    
      	 	
              (d)

            	
              Loans:
                The
                Borrower shall not make any loans or grant any credit to or for the
                benefit of any person or entity, other
                than:

            

    

     

    
      	
            	(i)	
              amounts
                of credit allowed in the ordinary course of its trading
                activities;

            

    

    

    
      
        
        

      

      
        Page
          49

        
          

        

      

      
        
        

      

    

    
      	
            	(ii)	
              loans
                and advances to employees in the ordinary course of the business
                of the
                Borrower as presently conducted in an aggregate principal amount
                not to
                exceed $500,000 at any time outstanding;
                and

            

    

    
       

      
        	
              	(iii)	
                deposits
                  or similar arrangements with utility providers made in the usual
                  course
                  of dealings with such utility providers provided that reasonable details
                  of
                  any such deposits or similar arrangements made after the date of
                  this
                  Agreement
                  have been provided in writing to the
                  Agent.

              

      

    

     

    
      	 	
              (e)

            	
              Issue
                of shares: The
                Borrower shall not issue any further shares (other than to the
                Guarantor
                and provided that such shares are subject to the Pledge Agreement)
                or
                alter
                any rights attaching to its issued shares in existence at the date
                of this
                Agreement.

            

    

     

    
      	 	
              (f)

            	
              Indebtedness:
                The
                Borrower shall not incur or permit to subsist any Indebtedness other
                than
                Permitted Indebtedness.

            

    

     

    
      	
            	(g)	
              Restriction
                on expenditure: The
                Borrower shall not incur:

            

    

     

    
      	
            	(i)	
              Capital
                Expenditure during any period other than the Permitted Capital Expenditure
                for the relevant period;

            

    

     

    
      	
            	(ii)	
              Cost
                Overruns in excess of the amount standing to the credit of the Cost
                Overrun
                Account; and

            

    

     

    
      	
            	(iii)	
              Operating
                Costs during any period other than in accordance with the Operating
                Budget for the relevant period or otherwise as required by
                Law,

            

    

     

    provided
      that the Borrower may incur emergency expenditures during any period that
are
      not
      included in the Operating Budget for the relevant period provided that the
      Borrower
      (acting reasonably) has certified to the Agent and the Independent Technical
      Consultant
      within 5 Business Days of incurring such emergency expenditures that (i)
such
      emergency expenditures were necessary in order to avoid, remedy or mitigate
      any
      breach or default or any potential breach or default of or in connection with
      any Transaction
      Document or any Law (including any Environmental Law) and (ii) the circumstances
      giving rise to such emergency expenditures were not reasonably foreseeable.

     

    
      	
            	(h)	
              Hedging:
                The
                Borrower shall not enter into any Derivative Transaction other than
                a
                Permitted Hedging Transaction.

            

    

     

    
      	
            	(i)	
              Distributions:
                The
                Borrower shall not make any transfer into the Distribution Account,
                except
                in accordance with Clause 12.5.2(f), and only subject to the following
                conditions being satisfied:

            

    

     

    
      	
            	(i)	
              the
                Repayment Date falling after the Completion Date has passed;
                

            

    

     

    
      	
            	(ii)	
              no Default or Trigger has occurred
                and is
                continuing; 

            

    

     

    
      	
            	(iii)	
              the Historic DSCR is greater
                than
                1.25:1;

            

    

     

    
      	
            	(iv)	
              the
                mandatory prepayment obligations set out in Clause 6.3 have been
                complied
                with in full;

            

    

     

    
      	
            	(v)	
              the
                transfer is made within 30 days following a Repayment Date;
                and

            

    

     

    
      	
            	(vi)	
              no
                Default or Trigger would occur, and the ratio in Clause 11.4(i)(iii)
                would
                not fail
                to be achieved at the level referred to herein, as a result of such
                transfer.

            

    

     

    
      
        
        

      

      
        Page
          50

        
          

        

      

      
        
        

      

    

    
      	
            	(j)	
              Change
                of business, deviation from Development Plan: The
                Borrower shall not make
                any material change to the nature or scope of its business from that
                agreed in the
                Development Plan.

            

    

     

    
      	
            	(k)	
              Development
                Plan: The
                Borrower shall not make any material change, variation, amendment
                or supplement to the Development Plan other than as permitted under
                the
                Financing Documents.

            

    

     

    
      	
            	(l)	
              Mining
                Claims, Permits, Mining Rights: The
                Borrower shall not amend, vary, release,
                terminate, cancel, surrender, abandon or concur in the same, or do
                or omit
                to do
                or suffer anything which renders terminable or cause to be frustrated
                or
                waive any rights available to it under (or agree to any of the same)
                any
                of the Mining Claims, Permits or Mining
                Rights:

            

    

     

    
      	
            	(i)	
              that
                are required in the implementation of the Development Plan;
                or

            

    

     

    
      	
            	(ii)	
              where
                such amendment, variation, release, termination,
                cancellation, surrender,
                abandonment, frustration or waiver could reasonably be expected to
                have a
                Material Adverse Effect.

            

    

     

    
      	
            	(m)	
              Material
                Contracts: The
                Borrower shall not:

            

    

     

    
      	
            	(i)	
              amend,
                vary or terminate any Material Contract where such amendment, variation
                or termination could reasonably be expected to have a Material
                Adverse
                Effect; or

            

    

     

    
      	
            	(ii)	
              enter
                into any other contract or agreement in respect of the Project other
                than:

            

    

     

    
      	
            	(aa)	
              a
                replacement or substitute contract for a Material Contract that has
                expired or been terminated provided that the Agent has approved in
                writing
                that replacement or substitute contract prior to the Borrower entering
                into the same (such approval not to be unreasonably withheld or
                delayed);

            

    

     

    
      	
            	(bb)	
              the
                contracts and agreements described in Schedule 13;
                or

            

    

     

    
      	
            	(cc)	
              any
                contract or agreement in respect of the Project (other than those
                referred
                to in (aa) and (bb) above) provided that the Agent has approved
                in writing that contract or agreement prior to the Borrower entering
                into the same (such approval not to be unreasonably withheld or
                delayed) if, in respect of that contract or
                agreement:

            

    

     

    
      	
            	(AA)	
              the
                term is greater than 12 Months;

            

    

     

    
      	
            	(BB)	
              the
                annual value is greater than US$1,000,000;
                or

            

    

     

    
      	
            	(CC)	
              is
                inconsistent with the Development
                Plan.

            

    

     

    
      	
            	(n)	
              Abandonment
                of mine: The
                Borrower shall not abandon, or give notice of its intention
                to, or do anything, or suffer anything, which evidences its intention
                to
                abandon
                conduct of all or a substantial part of the Mining Operations other
                than
                in accordance
                with the Development Plan.

            

    

     

    
      	
            	(o)	
              Waste:
                The
                Borrower shall not cause, permit or suffer, directly or indirectly,
                any
                Waste in respect of the Secured Collateral other than any portion
                thereof
                with respect to which
                Waste thereof could not reasonably be expected to have a Material
                Adverse
                Effect.

            

    

    

    
      
        
        

      

      
        Page
          51

        
          

        

      

      
        
        

      

    

    
      	11.5	
              The
                Base Case Model

            

    

     

    
      	
              11.5.1

            	
              The
                Borrower shall not make any revision to the Base Case Model except
                in
                accordance with this Clause 11.5,

            

    

     

    
      	
              11.5.2

            	
              By
                notice to the Borrower, the Agent may at any time make, or require
                the
                Borrower in the manner
                directed by the Agent to make, in each case, with the consent of
                the
                Borrower (acting reasonably),
                such revisions to the Base Case Model as may be required for the
                purpose
                of:

            

    

     

    
      	
            	(a)	
              correcting
                any deficiency in the form or structure of the Base Case Model;
                or

            

    

     

    
      	 	
              (b)

            	
              incorporating
                any additional or revised assumptions required to reflect any changes
                to
                the
                Development Plan made in accordance with this
                Agreement.

            

    

     

    
      	
              11.5.3

            	
              If
                the Agent and the Borrower are unable to agree such revisions to
                the Base
                Case Model as may
                be required within 10 Business Days of the Agent giving notice to
                the
                Borrower pursuant to
                Clause 11.5.2, the Independent Technical Consultant shall determine
                such
                revisions. In this case, the Independent Technical Consultant's
                determination of the revisions that are required shall
                (in the absence of fraud or manifest error) be final and conclusive.
                During the period in which any determination is being made by Independent
                Technical Consultant in accordance with this Clause, the Base Case
                Model
                shall remain in its form prior to the Agent giving notice to
                the Borrower pursuant to Clause
                11.5.2.

            

    

     

    
      	
              11.5.4

            	
              If
                the Base Case Model is revised, the Agent shall promptly notify each
                Bank
                and Hedging Bank of the revision.

            

    

     

    
      	12	
              Facility
                Accounts and Permitted
                Investments

            

    

     

    
      	12.1	
              Account
                Bank

            

    

     

    
      	 	
              12.1.1

            	
              The
                Borrower represents and warrants that it has appointed the Account
                Bank to
                open, maintain
                and operate the Facility Accounts in accordance with the provisions
                of the
                Financing Documents.

            

    

     

    
      	 	
              12.1.2

            	
              The
                Agent and the Borrower may agree to change the branch at which the
                Facility Accounts are maintained from time to time, such agreement
                to be
                in writing.

            

    

     

    
      	12.2	
              Facility
                Accounts

            

    

     

    
      	
              12.2.1

            	
              During
                the Security Period the Borrower shall maintain the following bank
                accounts denominated in US$ in its name at the relevant branch of
                the
                Account Bank (unless otherwise specified):

            

    

     

    
      	
            	(a)	
              a
                Proceeds Account;

            

    

     

    
      	
            	(b)	
              a
                Debt Service Reserve Account;

            

    

     

    
      	
            	(c)	
              a
                Cost-Overrun Account; and

            

    

     

    
      	
            	(d)	
              a
                payroll account.

            

    

     

    
      	
              12.2.2

            	
              The
                Borrower shall not open or maintain any bank, deposit, savings or
                other
                account except for the Facility Accounts other
                than:

            

    

     

    
      	
            	(a)	
              the
                Distributions Account;

            

    

     

    
      	
            	(b)	
              a
                physical gold account with the Refiner;
                and

            

    

     

    
      	
            	(c)	
              the
                AIG commutation account.

            

    

     

    
      
        
        

      

      
        Page
          52

        
          

        

      

      
        
        

      

    

     

    
      	
              12.2.3

            	
              Each
                Facility Account shall be a separate account at the Account Bank.
                The
                Proceeds Account,
                the Debt Service Reserve Account and the Cost-Overrun Account shall
                be
                subject to the Account Control
                Agreement.

            

    

     

    
      	
              12.2.4

            	
              If
                the Borrower receives any moneys for crediting to a Facility Account
                in a
                currency other than US
                Dollars it shall within a commercially reasonable period of time
                (unless
                otherwise agreed with the Agent) convert or, as the case may be,
                request
                the Account Bank promptly to convert these
                moneys into US Dollars and transfer the same to the Proceeds
                Account.

            

    

     

    
      	
              12.2.5

            	
              None
                of the restrictions on the withdrawal of funds from Facility Accounts
                contained in this Clause
                12 shall affect the obligations of the Borrower to make all payments
                of
                any amount required
                to be made by it to the Agent, or the Banks, on the due date for
                payment
                thereof in accordance
                with the Financing Documents.

            

    

     

    
      	
              12.2.6

            	
              The
                Facility Accounts shall be subject to, and pledged by the Borrower
                on, the
                terms and conditions of the Pledge Agreement and the Account Control
                Agreement. The Agent agrees that
                it will send a Notice (as defined the Account Control Agreement)
                only upon
                the occurrence and
                during the continuance of an Event of Default or a Trigger Event.
                Upon the
                cessation of an
                Event of Default or a Trigger Event, the Agent shall send a notice
                to the
                Bank under the Account Control Agreement stating that the Activation
                Period (as defined therein) has
                ceased.

            

    

     

    
      	12.3	
              Withdrawals

            

    

     

    
      	
              12.3.1

            	
              No
                payments to, or withdrawals from, any Facility Account shall be made
                except as expressly permitted
                by this Clause 12 and in accordance with the Account Control
                Agreement.

            

    

     

    
      	12.3.2	
              The
                Borrower may not make any withdrawal from any Facility
                Account:

            

    

     

    
      	 	
              (a)

            	
              if
                an Event of Default or a Trigger Event has occurred and is continuing
                or
                would result from
                that withdrawal; and

            

    

     

    
      	 	
              (b)

            	
              the
                Security Trustee has given notice to the Account Bank pursuant to
                the
                Account Control Agreement on the occurrence of that Event of Default
                or
                Trigger Event.

            

    

     

    
      	12.4	
              Access
                to books and records

            

    

     

    
      	
              12.4.1

            	
              The
                Borrower irrevocably grants the Agent or any of its appointed
                representatives access to review
                the books and records of its Facility Accounts and agrees to deliver
                to
                the Agent copies of
                statements and other information relevant to the Facility Accounts
                as may
                be requested by the Agent from time to time. Subject to Clause 24,
                the
                Borrower irrevocably waives any right of confidentiality that may
                exist in
                respect of such books, records, statements and other information.
                The
                Borrower irrevocably authorises the Account Bank to give the Agent,
                Security
                Trustee and each Bank unrestricted access on reasonable prior notice
                to
                review such books, records, statements and other information held
                by the
                Account Bank, and to provide by fax, mail or telephone such additional
                information or records as the Banks or the Agent shall request and
                the
                Borrower shall take all such further steps or actions necessary to
                confirm
                or continue such authorisation.

            

    

     

    
      	
              12.4.2

            	
              Nothing
                in this Clause 12.4 shall require the Account Bank to disclose to
                any
                person or entity any
                books, records or other information which the Account Bank would
                not be
                required to disclose
                to the Borrower.

            

    

     

    
      	12.5	
              Proceeds
                Account

            

    

     

    
      	12.5.1	
              The
                Borrower shall pay into the Proceeds
                Account:

            

    

     

    
      	
            	(a)	
              the
                proceeds of all Advances;

            

    

     

    
      	
            	(b)	
              all
                amounts received in respect of Committed
                Equity;

            

    

    

    
      
        
        

      

      
        Page
          53

        
          

        

      

      
        
        

      

    

    
      	
            	(c)	
              any
                net proceeds received pursuant to the Hedging
                Documents;

            

    

     

    
      	 	
              (d)

            	
              all
                other receipts of the Borrower (including, without limitation, pursuant
                to
                any Disposals); and shall
                procure that all its Operating Revenues and other sums owing to it
                are
                paid directly into the
                Proceeds Account.

            

    

     

    
      	
              12.5.2

            	
              The
                Borrower may only withdraw sums from the Proceeds Account for the
                following purposes and in the following order of
                priority:

            

    

     

    
      	 	
              (a)

            	
              first,
                for paying Operating Costs (including transfers to the pay roll account)
                and, prior to
                the Completion Date, Permitted Capital Expenditure, in each case
                consistent with those costs and expenditures projected in the most
                recent
                Development Plan and Operating
                Budget;

            

    

     

    
      	 	
              (b)

            	
              second,
                to meet unpaid fees, costs and expenses of the Agent, the Security
                Trustee, the
                Arranger and the Account Bank incurred under the Financing
                Documents;

            

    

     

    
      	 	
              (c)

            	
              third,
                to meet its Debt Service liabilities under this Agreement and any
                Hedging
                Liabilities
                pursuant to any Permitted Hedging
                Transaction;

            

    

     

    
      	 	
              (d)

            	
              fourth,
                on any Repayment Date, to transfer amounts to its Debt Service Reserve
                Account
                in accordance with Clause 12.6;

            

    

     

    
      	 	
              (e)

            	
              fifth,
                on any Repayment Date, to make any mandatory prepayments in accordance
                with Clause 6.3; and

            

    

     

    
      	 	
              (f)

            	
              sixth,
                to make transfers into the Distributions Account provided that the
                conditions in Clause
                11.4(i) have been satisfied in
                full.

            

    

     

    
      	
              12.5.3

            	
              Amounts
                standing to the credit of the Proceeds Account may be invested by
                the
                Borrower in Permitted Investments in accordance with the Account
                Control
                Agreement.

            

    

     

    
      	12.6	
              Debt
                Service Reserve Account

            

    

     

    
      	
              12.6.1

            	
              Having
                satisfied its obligations under Clause 12.5.2(a) to 12.5.2(c), the
                Borrower shall on or prior to the Completion Date transfer from its
                Proceeds Account directly to the Debt Service Reserve Account such
                amounts
                (if any and if available) as is required to ensure that the amount
                standing to the credit of its Debt Service Reserve Account at the
                Completion Date is equal to the Required Level for the Debt Service
                Reserve Account and shall thereafter maintain
                the Required Level pursuant to this Clause by transferring out of
                monies
                available for transfer
                under Clause 12.5.2(d).

            

    

     

    
      	
              12.6.2

            	
              The
                Required
                Level for
                the Debt Service Reserve Account is, at any time, the Debt Service
                which
                will become payable on the next Repayment
                Date.

            

    

     

    
      	
              12.6.3

            	
              The
                Borrower may only withdraw sums from the Debt Service Reserve Account
                with
                the prior written
                approval of the Agent which shall be produced to the Account Bank
                by the
                Borrower, prior
                to any such withdrawal and for the following
                purposes:

            

    

     

    
      	 	
              (a)

            	
              to
                pay Debt Service payable to the Banks, to the Agent as and when it
                falls
                due to the extent (but only to the extent) that the amount standing
                to the
                credit of the Proceeds Account when the relevant Debt Service falls
                due is
                insufficient to pay it in full; or

            

    

     

    
      	 	
              (b)

            	
              to
                the extent that the amount standing to the credit of the Debt Service
                Reserve Account at any time exceeds the Required Level for the Debt
                Service Reserve Account
                at that time and the amount withdrawn is transferred directly to
                the
                Proceeds Account, with respect to which the approval of the Agent
                shall
                only be required if an Event of Default or Trigger Event shall have
                occurred and is continuing.

            

    

     

    
      
        
        

      

      
        Page
          54

        
          

        

      

      
        
        

      

    

    
      	
              12.6.4

            	
              The
                Borrower may satisfy its obligations to maintain at all times the
                Required
                Level for the Debt
                Service Reserve Account pursuant to this Clause by procuring the
                issue in
                favour of the Agent
                of a letter of credit in an amount no less than the Required Level
                for the
                Debt Service Reserve Account provided that such letter of credit
                is at all
                times:

            

    

     

    
      	
            	(a)	
              in
                a form, and on terms, acceptable to the Agent (acting reasonably);
                and

            

    

     

    
      	 	
              (b)

            	
              issued
                by a bank or other financial institution acceptable to the Agent
                and who
                has, to the
                satisfaction of the Agent (acting reasonably), no recourse whatsoever
                to
                the Borrower,
                the Assets or the Project in respect of any liability or indebtedness
                arising as a result of the issue of, or payment under, such letter
                of
                credit.

            

    

     

    
      	
              12.6.5

            	
              Amounts
                standing to the credit of the Debt Service Reserve Account may be
                invested
                by the Borrower in Permitted Investments in accordance with the Account
                Control Agreement.

            

    

     

    
      	12.7	
              Cost
                Overrun Account

            

    

     

    
      	
              12.7.1

            	
              The
                Borrower shall deposit US$7,500,000 into the Cost Overrun Account
                prior to
                the first Advance.

            

    

     

    
      	12.7.2	
              The
                Borrower may withdraw sums from the Cost Overrun
                Account:

            

    

     

    
      	 	
              (a)

            	
              prior
                to the Completion Date, for the purpose of financing any Cost Overrun
                provided that
                in the case of any such Cost Overrun, the Development Plan and the
                Base
                Case Model have been updated to reflect the additional Capital Expenditure
                and the Agent (in consultation with the Independent Technical Consultant)
                has confirmed that such Capital Expenditure has been or is to be
                properly
                and reasonably incurred in connection with the Project and is a Cost
                Overrun;

            

    

     

    
      	 	
              (b)

            	
              upon
                the Completion Date, to transfer the amount (if any) standing to
                the Cost
                Overrun Account to the Debt Service Reserve Account to the extent
                required
                to satisfy the
                requirements of Clause 12.6 and thereafter to transfer any balance
                to an
                account nominated
                by the Borrower.

            

    

     

    
      	
              12.7.3

            	
              Amounts
                standing to the credit of the Cost Overrun Account may be invested
                by the
                Borrower in Permitted Investments in accordance with the Account
                Control
                Agreement.

            

    

     

    
      	12.8	
              Distributions
                Account

            

    

     

    
      	
              12.8.1

            	
              Having
                satisfied its obligations under Clause 12.5.2(a) to (e), the Borrower
                may,
                subject to Clause 11.4(i), transfer amounts (if any) standing to
                the
                credit of the Proceeds Account directly to the Distribution
                Account.

            

    

     

    
      	
              12.8.2

            	
              The
                Borrower shall be entitled to withdraw, at anytime, all and any amounts
                transferred pursuant to this Agreement into the Distribution
                Account.

            

    

     

    
      	13	
              Triggers 

            

      	 	 

      	13.1	Trigger
              Event

    

     

    Each
      of
      the following events shall be a Trigger Event:

     

    
      	
            	(a)	
              Breach
                of Undertakings: Any
                Security Company breaches any one or more of its obligations
                (other than: (i) a payment obligation (which shall be an Event of
                Default
                under
                and in accordance with Clause 14.1 (a) and (ii) in the case of the
                Guarantor only, (A)
                its obligations in respect of its ownership in the voting shares
                of the
                Borrower under
                each of Clause 11.2.1 (d) and Clause 11.2.2 (which shall be an Event of
                Default under
                and in accordance with Clause 14.1 (j)(i)) and (B) any of its other
                obligations under Clause 11.2 (which shall be a Trigger Event under
                and in
                accordance with Clause
                13.1 (b)) under any Financing Document, or any condition attached
                to any
                waiver or consent given under any Financing Document is not fulfilled
                on
                the due date provided
                that a Trigger Event shall not occur under this Clause 13.1 (a) in
                respect
                of a breach
                by the Borrower of any one or more of its obligations under Clause
                11.3(l)
                or Clause
                11.3(m) if, in either case,:

            

    

    
       

      
        	
              	(i)	
                such
                  breach is capable of being remedied by the
                  Borrower;

              

      

       

    

    
      
        
        

      

      
        Page
          55

        
          

        

      

      
        
        

      

    

    
      	
            	(ii)	
              the
                amounts spent or to be spent by the Borrower to remedy such breach
                are
                equal to or less than US$50,000;
                and

            

    

     

    
      	
            	(iii)	
              such
                breach is remedied by the Borrower within 10 days after the earlier
                of (i)
                notice
                of that breach being given by the Agent to the Borrower and (ii)
                the
                Borrower becoming aware of such
                breach.

            

    

     

    
      	 	
              (b)

            	
              Other
                defaults: Any
                Security Company breaches any of its obligations under any Transaction
                Document to which it is a party (other than obligations or conditions
                referred to in Clause 13.1(a) or 14.1(a)) and such breach could reasonably
                be expected to have a Material Adverse Effect and if it is capable
                of
                remedy, it is not remedied
                within 10 Business Days after the earlier of (i) notice of that breach
                being given
                by the Agent to the Borrower and (ii) the relevant Security Party
                becoming
                aware of such breach.

            

    

     

    
      	 	
              (c)

            	
              Breach
                of representation or warranty: Any
                representation, warranty or written statement
                made or deemed to be repeated by any Security Company under any Financing
                Document or in any document delivered by or on behalf of the Borrower
                under
                or in connection with any Financing Document is incorrect or inaccurate
                when made
                or deemed to have been made unless the circumstances giving rise
                to the
                representation,
                warranty or statement being incorrect or
                inaccurate:

            

    

     

    
      	
            	(i)	
              are
                capable of cure or remedy; and

            

    

     

    
      	
            	(ii)	
              are
                remedied within 15 Business Days such that if the representation,
warranty
                or statement were repeated it would not be incorrect or
                misleading.

            

    

     

    
      	 	
              (d)

            	
              Cross-default:
                Any
                Indebtedness of the Borrower in excess of, in aggregate, US$250,000
                or its equivalent, or any Indebtedness of the Guarantor in excess
                of, in
                aggregate,
                US$500,000 or its equivalent:

            

    

     

    
      	
            	(i)	
              is
                not paid on its due date for payment (taking into account any relevant
                grace period);

            

    

     

    
      	
            	(ii)	
              is
                declared to be or otherwise becomes due and payable prior to its
                specified
                maturity, or

            

    

     

    
      	
            	(iii)	
              any
                creditor of any of the same becomes entitled to declare any such
                Indebtedness
                due and payable prior to its specified
                maturity.

            

    

     

    
      	 	
              (e)

            	
              Attachment
                or distress: A
                creditor or encumbrancer attaches or takes possession of, or a distress,
                execution, sequestration, foreclosure, action or notice to reduce
                a claim
                to
                judgement or other process is instituted, levied or enforced upon
                or sued
                out against, any of the assets of any Security Company (in respect
                of an
                amount of at least
                US$250,000 in aggregate or its equivalent);
                or

            

    

     

    
      	 	
              (f)

            	
              Project
                production: In
                any consecutive three Month period:

            

    

     

    
      
        	
              	
                (i)

              	
                the
                  ore-grade into the Mesquite Mine;

              

      

       

    

    
      	
            	(ii)	
              the
                amount of ore placed on the leach
                pads;

            

    

     

    
      
        
        

      

      
        Page
          56

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iii)	
              the
                processing recovery; or

            

    

     

    
      	
            	(iv)	
              the
                aggregate actual production of gold recovered from the Mining Operations,
                is
                less than 90 per cent of that projected for such period in the most
                recent
                Operating Budget
                provided however that no Trigger Event shall occur under this Clause
                if
                any of the
                items in (i) to (iii) above are less than 90% of that projected for
                such
                period, but item (iv) is equal to or more than 90% of that projected
                for
                such period and no Trigger Event
                shall have occurred under Clause 13.1 (g)
                below.

            

    

     

    
      	
            	(g)	
              Project
                Margin: in
                any consecutive three Month period the operating margin (being the
                weighted average revenue per ounce of production sold during such
                period
                less Capital Expenditure and Operating Costs per ounce of production
                sold
                during such period) is less than US$ 150 per ounce of
                gold.

            

    

     

    
      	
            	(h)	
              Mining
                Claims, Permits and Mining Rights: any
                steps are taken or proposals made for the amendment, cancellation
                or
                termination in relation to any of the terms and conditions of the
                Mining
                Claims, Permits, Mining Rights or any condition thereto is not
                met
                in full by the date specified for the meeting of the same in each
                case to
                the extent required
                in the Development Plan.

            

    

     

    
      	
            	(i)	
              Reserves:
                at
                any time, and as stated in the latest Reserve Statement at that time,
                the
                proven and probable reserves of gold that are forecast to remain
                at the
                Mesquite Mine beyond the later of the Final Repayment Date and the
                Final
                Hedging Maturity Date are less than 30% of the proven and probable
                reserves of gold that are forecast to remain at
                the Mesquite Mine in the Reserve Statement as at the date of this
                Agreement.

            

    

     

    
      	
            	(j)	
              Completion:
                the
                Completion Date has not occurred by the Longstop Date, (k)
                Material
                Contracts:

            

    

     

    
      	
            	(i)	
              Any
                Key Contractual Counterparty breaches any of its material obligations
                under
                any Material Contract to which it is a party and if that breach or
                failure
                is capable
                of remedy, it is not remedied within a period of 20 Business Days
                following the date of such breach, provided that such a breach will
                not
                constitute
                a Trigger Event if a Replacement Key Contractual Counterparty has
                been
                found to assume the obligation of such Key Contractual Counterparty
                under
                the relevant Transaction Documents within 20 Business Days of the
                date of
                occurrence of such event, and such Replacement Key Contractual
                Counterparty
                enters into such agreement within 30 Business Days of the date of
                occurrence of such event.

            

    

     

    
      	
            	(ii)	
              Any
                Material Contract is not renewed, replaced or substituted with a
                counterparty
                and on terms substantially similar to the Material Contract being
                replaced
                or substituted for within 30 Business Days of the termination or
                expiry
                of
                any such Material Contract where the renewal of such Material Contract
                was
                contemplated in the Development
                Plan.

            

    

     

    
      	
            	(l)	
              Key
                Contractual Counterparty: There
                occurs, in relation to any Key Contractual Counterparty,
                in any country or territory in which any of them carries on business
                or to
                the
                jurisdiction of whose courts any part of their assets is subject,
                any
                event which in that
                country or territory corresponds with, or has an effect equivalent
                or
                similar to any of
                those events referred to in Clause 13.1 (d), Clause 14.1 (c), Clause
                14.1
                (d), Clause 14.1(e),
                14.1 (f), 14.1(g), 14.1(h), 14.1
                (i)
                (Provided that in the case of Clause 13.1 (d) or Clause
                14.1(e) the relevant amounts referred to therein shall be deemed
                to be
                US$1,000,000 (or its equivalent)); and in these circumstances a
                Replacement Key Contractual Counterparty has not been found to assume
                the
                obligation of such Key Contractual Counterparty under the relevant
                Transaction Documents within 20 Business Days of the date of occurrence
                of
                such event, and such Replacement Key Contractual
                Counterparty has not entered into such agreement within 30 Business
                Days
                of the date of occurrence of such
                event.

            

    

     

    
      
        
        

      

      
        Page
          57

        
          

        

      

      
        
        

      

    

    
      	
            	(m)	
              Security:
                There
                occurs (in the opinion of the Agent, acting reasonably) any event
                or
                circumstance
                which adversely affects the Security or the Security
                Documents.

            

    

     

    
      	
            	(n)	
              Permitted
                Encumbrance: A
                beneficiary of a Permitted Encumbrance (other than of the
                type referred to in paragraph (a) of the definition for Permitted
                Encumbrance) commences any formal action or exercises any rights
                in
                connection with that Permitted Encumbrance
                against the Borrower, the Mesquite Mine or any of the other assets
                of
                the
                Borrower and, in each case:

            

    

     

    
      	
            	(i)	
              the
                amount of the Indebtedness secured by that Permitted Encumbrance
                is
                greater
                than US$250,000 (unless the Agent is satisfied that such formal action
                or
                exercise of rights is frivolous or vexatious following submission
                to the
                Agent of all relevant documentation relating to the same by the Borrower
                within 5 Business Days of it becoming aware of the same);
                or

            

    

     

    
      	
            	(ii)	
              the
                commencement of such formal action or the exercise of such rights
                could
                reasonably be expected to have a Material Adverse
                Effect.

            

    

     

    
      	13.1.2	
              The
                Trigger Events listed in Clause 13.1 in respect of the Guarantor
                shall
                only constitute a Trigger Event if any of them occur prior to the
                Completion Date (other than a Trigger Event arising under Clause
                13.1 (b)
                in relation to the Guarantor as a result of a breach of its obligations
                under Clause 11.2.2 (other than its obligations in respect of its
                ownership in the voting
                shares of the Borrower), 11.2.3(c), (d) or (e) or
                11.2.4).

            

    

     

    
      	13.2	
              Exercise
                of rights

            

    

     

    
      
        
          	13.2.1	
                  If
                    a Trigger Event occurs and remains unremedied and unwaived, the
                    Agent may
                    if instructed by
                    the Majority Banks, and shall if so instructed by the Majority
                    Banks, by
                    notice to the Borrower
                    and subject to Clause 13.2.2 in the case of a Trigger Event under
                    Clauses
                    13.1 (a), 13.1
                    (d),
                    13.1(e)or13.1(h)only:

                

        

      

    

     

    
      
        
          	
                	(a)	
                  enforce
                    its rights to exercise the Guarantor's voting rights attached
                    to the
                    shares in the Borrower
                    in accordance with the Pledge
                    Agreement;

                

        

      

    

     

    
      	
            	(b)	
              exercise
                any or all of its rights under Clause
                14.3.1;

            

    

     

    
      	
            	(c)	
              charge
                an additional one per cent on the Interest Margin applicable to the
                Loan;
                and/or

            

    

     

    
      	 	
              (d)

            	
              require
                that all technical information relating to Mining Operations be audited
                and certified
                by the Independent Technical
                Consultant.

            

    

     

    
      
        
          	13.2.2	
                  The
                    Agent may exercise the rights set out in Clause 13.2.1 if instructed
                    by
                    the Majority Banks if
                    a Trigger Event has occurred
                    under:

                

        

      

    

     

    
      
        
          	
                	(a)	
                  Clause
                    13.1 (a), after a period of 10 Business Days from the earlier
                    of (i)
                    notice of such non
                    performance or non compliance being given by the Agent to the
                    Borrower and
                    (ii) the
                    relevant Security Party becoming aware of such non performance
                    or non
                    compliance;

                

        

      

    

     

    
      
        
          	
                	(b)	
                  Clause
                    13.1
                    (d),
                    after a period of 10 Business Days from the earlier of (i) notice
                    of such
                    cross
                    default event being given by the Agent to the Borrower and (ii)
                    the
                    Borrower or the
                    Guarantor becoming aware of such cross default
                    event;

                

        

      

    

     

    
      
        
          	
                	(c)	
                  Clause
                    13.1 (e), after a period of 30 Business Days from the earlier
                    of (i)
                    notice of such
                    action being given by the Agent to the Borrower and (ii) the
                    relevant
                    Security Party
                    becoming aware of such action;
                    or

                

        

      

    

     

    
      
        
        

      

      
        Page
          58

        
          

        

      

      
        
        

      

    

     

    
      	
            	(d)	
              Clause
                13.1 (h), after a period of 10 Business Days from the earlier of
                (i)
                notice of such
                steps or proposals being given by the Agent to the Borrower and (ii)
                the
                Borrower or
                the Guarantor becoming aware of such steps or
                proposals.

            

    

     

    
      	14	
              Default
                

            

    

     

    
      	14.1	
              Default

            

    

     

    Each
      of
      the following events shall be an Event of Default:

     

    
      
        
          	
                	(a)	
                  Non-payment:
                    Any
                    Security Company does not pay on or within 2 Business Days following
                    the due date any amount payable by it under the Financing Documents
                    at
                    the
                    place at and in the currency and funds in which it is expressed
                    to be
                    payable.

                

        

      

    

     

    
      
        
          	
                	(b)	
                  Unlawfulness
                    or repudiation: It
                    is unlawful for any Security Company to perform or comply
                    with, or any Security Company
                    repudiates:

                

        

      

    

     

    
      	
            	(i)	
              any
                of its obligations under any Financing Document or any such obligation
                is
                not
                legally binding and enforceable; or

            

    

     

    
      	
            	(ii)	
              any
                of its material obligations under any Transaction Documents (other
                than
                the
                Financing Documents) or any such obligation is not legally binding
                and
                enforceable.

            

    

     

    
      	
            	(c)	
              Cross-default:
                Any
                Indebtedness of the Borrower in excess of, in aggregate, US$1,000,000
                or its equivalent, or any Indebtedness of the Guarantor in excess
                of, in
                aggregate,
                US$2,500,000 or its equivalent:

            

    

     

    
      	
            	(i)	
              is
                not paid on its due date for payment (taking into account any relevant
                grace period);

            

    

     

    
      	
            	(ii)	
              is
                declared to be or otherwise becomes due and payable prior to its
                specified
                maturity, or

            

    

     

    
      	
            	(iii)	
              any
                creditor of any of the same becomes entitled to declare any such
                Indebtedness
                due and payable prior to its specified
                maturity.

            

    

     

    
      
        
          	
                	(d)	
                  Enforcement
                    of security: A
                    beneficiary of an Encumbrance (other than a Permitted Encumbrance)
                    over any of the assets of any Security Company commences any
formal
                    action or exercises any rights in connection with that Permitted
                    Encumbrance against
                    that Security Company, the Mesquite Mine or any of the other
                    assets of
                    that Security
                    Company (unless the Agent is satisfied that such formal action
                    or exercise
                    of rights
                    is frivolous or vexatious following submission to the Agent of
                    all
                    relevant documentation
                    relating to the same by the relevant Security Company within
                    5
                    Business
                    Days of it becoming aware of the
                    same).

                

        

      

    

     

    
      	
            	(e)	
              Inability
                to pay debts: Any
                Security Company:

            

    

     

    
      	
            	(i)	
              suspends
                payment of its debts or is unable or admits its inability to pay
                its
                debts
                as they fall due; or

            

    

     

    
      	
            	(ii)	
              begins
                negotiations with its creditors as a whole with a view to the readjustment,
                rescheduling or forgiveness of all or a substantial part of its
                Indebtedness
                which it may otherwise be unable to pay;
                or

            

    

     

    
      	
            	(iii)	
              proposes
                or enters into any composition or other arrangement for the benefit
                of
                its creditors generally or any class of creditors in respect of
                Indebtedness which it may otherwise be unable to
                pay.

            

    

     

    
      
        
        

      

      
        Page
          59

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                	(f)	
                  Insolvency
                    proceedings: Any
                    person or entity takes any action or any legal proceedings
                    are started or other steps taken (including the presentation
                    of a petition
                    unless
                    the Agent is satisfied that the same is frivolous or vexatious
                    following
                    submission
                    to the Agent of all relevant documentation relating to the same
                    by the
                    relevant
                    Security Company within 5 Business Days of it becoming aware
                    of the same)
                    for:

                

        

      

    

     

    
      	
            	(i)	
              any
                Security Company to be adjudicated a bankrupt or found insolvent;
                

            

    

     

    
      	
            	(ii)	
              the winding up, dissolution or
                liquidation
                of any Security Company;

            

    

     

    
      	
            	(iii)	
              the
                reorganisation, readjustment, arrangement, winding up, dissolution
                or
                liquidation
                of any Security Company other than in connection with a solvent
                reconstruction,
                the terms of which in respect of a Security Company have been
                previously approved in writing by the Agent (acting on the instructions
                of
                the
                Majority Banks); or

            

    

     

    
      	
            	(iv)	
              the
                appointment of a trustee, receiver, administrator, administrative
                receiver, trustee
                in bankruptcy, examiner or similar officer in respect of any Security
                Company,
                liquidator or any of their respective
                assets.

            

    

     

    
      
        
          	
                	(g)	
                  Adjudication
                    or appointment: Any
                    adjudication, order or appointment is made under or
                    in relation to any of the proceedings referred to in Clause 14.1
                    (f).

                

        

      

    

     

    
      	
            	(h)	
              Analogous
                proceedings: Any
                event occurs or proceeding is taken with respect to any
                Security Company as applicable in any jurisdiction to which it is
                subject
                which has an
                effect equivalent or similar to any of the events mentioned in Clause
                13.1
                (e), 14.1(e),
                14.1 (f) or 14.1 (g) taking into account any qualifications thereto
                or
                grace periods.

            

    

     

    
      	
            	(i)	
              Cessation
                of business: Any
                Security Company suspends, ceases or threatens to suspend
                or cease to carry on all or a substantial part of its business and,
                in
                relation to the
                Guarantor only, such event or circumstances could reasonably be expected
                to have
                a Material Adverse Effect;

            

    

     

    
      	
            	(j)	
              Change
                of control: At
                any time:

            

    

     

    
      	
            	(i)	
              the
                Guarantor transfers any interest in the shares of the Borrower (other
                than
                as
                permitted pursuant to Clause 11.2);
                or

            

    

     

    
      	
            	(ii)	
              the
                ultimate parent company of the Borrower ceases to have its ordinary
                shares
                listed on a recognised investment
                exchange.

            

    

     

    
      	
            	(k)	
              Material
                adverse change: Any
                event or series of events occur which could reasonably be expected
                to have
                a Material Adverse Effect.

            

    

     

    
      	
            	(l)	
              Trigger
                Event: A
                Trigger Event is occurring on the date falling four Months after
                the
                occurrence
                of the same.

            

    

     

    
      	14.1.2	
              The
                Events of Default listed in Clause 14.1 in respect of the Guarantor
                (other
                than under Clause 14.1 (j)) shall only constitute Events of Default
                if any
                of them occur prior to the Completion
                Date.

            

    

     

    
      	14.2	
              Acceleration

            

    

     

    
      	14.2.1	
              If
                an Event of Default occurs and remains unremedied and unwaived, the
                Agent
                may, acting upon
                the instructions of the Majority Banks, and shall if so instructed
                by the
                Majority Banks, by notice
                to the Borrower:

            

    

     

    
      	
            	(a)	
              cancel
                the Facility (to the extent there are outstandings under such
                Facility);

            

    

     

    
      
        
        

      

      
        Page
          60

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              declare
                the Facility (to the extent there are outstandings under such Facility)
                due and payable;
                and

            

    

     

    
      	 	
              (c)

            	
              require
                the Borrower immediately to repay all or any of the Loan together
                with
                accrued interest
                and all other sums payable under each such
                Facility.

            

    

     

    
      	14.2.2	
              Upon
                the service of any such notice the Banks' obligations under this
                Agreement
                shall be terminated,
                the Facility shall be cancelled and the Facility Limit (as applicable)
                shall be reduced
                to zero.

            

    

     

    
      	14.3	
              Facility
                Accounts

            

    

     

    
      
        
          	14.3.1	
                  The
                    Agent shall, if so instructed by the Majority Banks, at anytime
                    and
                    without the consent of the
                    Borrower (a) whilst an Event of Default or Trigger Event is continuing
                    and
                    for the purpose of
                    curing such Event of Default or Trigger Event (b) following service
                    of a
                    notice by the Agent under
                    Clause 14.2.1:

                

        

      

    

     

    
      	 	
              (a)

            	
              give
                notice to the Account Bank that it is to be the sole signatory on
                any or
                all of the Facility
                Accounts; and/or

            

    

     

    
      	 	
              (b)

            	
              give
                notice to the Account Bank that no withdrawal may be made from any
                or all
                of the Facility
                Accounts except with the prior consent of the Agent;
                and/or

            

    

     

    
      	 	
              (c)

            	
              apply
                all amounts in the Facility Accounts in or towards payment of Financing
                Principal,
                Financing Costs, Hedging Expenses and such other amounts as the Majority
                Banks
                may agree; and

            

    

     

    
      	 	
              (d)

            	
              appropriate
                the amounts to be applied under Clause 14.3.1 (c) against the obligations
                against
                which they are to be applied in such order as the Agent thinks fit
                (but
                subject, as
                between the Financing Parties and without conferring any rights on
                the
                Borrower, to Clause
                12.1).

            

    

     

    
      
        
          	14.3.2	
                  No
                    amount shall be payable to the Borrower, or may be withdrawn
                    by the
                    Borrower, from or in respect
                    of any Facility Account at any time after the Agent gives a notice
                    of the
                    kind described in
                    Clause
                    14.3.1.

                

        

      

    

     

    
      	15	
              Fees
                and expenses

            

    

     

    
      	15.1	
              Transaction
                expenses

            

    

     

    
      
        
          	15.1.1	
                  The
                    Borrower shall promptly on demand pay the Arranger, the Agent,
                    the
                    Security Trustee and the
                    Account Bank:

                

        

      

    

     

    
      	 	
              (a)

            	
              the
                amount of all costs and expenses (including legal fees and the fees
                of the
                Banks' Advisers)
                reasonably incurred by any of them in connection with the negotiation,
                preparation,
                printing, execution and syndication of the Financing Documents (including
                the
                ITC Report);

            

    

     

    
      	 	
              (b)

            	
              the
                amount of all costs and expenses in making any site visits and in
                meeting
                the fees and
                expenses of the Independent Technical Consultants in respect of the
                ITC
                reports and
                site visits or otherwise or any legal, insurance or other consultants'
                fees to the extent
                that the same are reasonably and properly incurred;
                and

            

    

     

    
      	 	
              (c)

            	
              the
                cost and expenses incurred by them in respect of the services of
                the
                Banks' Advisers
                to be performed after the date of this
                Agreement.

            

    

     

    
      
        
          	15.1.2	
                  The
                    Borrower shall be provided with reasonably detailed accounts
                    and invoices
                    for such costs and
                    expenses as described in Clause
                    15.1.1.

                

        

      

    

     

    
      
        
        

      

      
        Page
          61

        
          

        

      

      
        
        

      

    

     

    
      	15.2	
              Amendment
                costs

            

    

     

    If
      a
      Security Company requests an amendment, waiver or consent the Borrower shall,
      within three
      Business Days of demand, reimburse the Agent for the amount of all costs and
      expenses
      (including legal fees) reasonably incurred by the Agent in responding to,
      evaluating, negotiating
      or complying with that request or requirement.

     

    
      	15.3	
              Enforcement
                costs

            

    

     

    The
      Borrower shall, within 10 Business Days of demand, pay to each Financing Party
      the amount
      of
      all costs and expenses (including legal fees) incurred by that Financing Party
      in connection with the enforcement of, or the preservation of any rights under,
      any Financing Document.

     

    
      	15.4	
              Commitment
                fee

            

    

     

    
      
        
          	15.4.1	
                  The
                    Borrower shall pay to the Agent (for the account of each Bank)
                    a fee
                    computed at the rate of
                    0.75 per cent. per annum on that Bank's Available Commitment
                    for the
                    Availability
                    Period.

                

        

      

    

     

    
      
        
          	15.4.2	
                  Subject
                    to Clause 5.3.3, the accrued commitment fee is payable on the
                    last day of
                    each successive
                    period of three Months which ends during the Availability Period,
                    on the
                    last day of the
                    Availability Period and, if cancelled in full, on the cancelled
                    amount of
                    the relevant Bank's Commitment
                    at the time the cancellation is
                    effective.

                

        

      

    

     

    
      	15.5	
              Arrangement
                fee

            

    

     

    The
      Borrower shall pay to the Arranger an arrangement fee in the amount and at
      the
      times agreed in the Arrangement Fee Letter.

     

    
      	15.6	
              Agency
                fee

            

    

     

    The
      Borrower shall pay to the Agent (for its own account) an agency fee in the
      amount and at the times agreed in the Agency Fees Letter.

     

    
      	15.7	
              Stamp
                taxes

            

    

     

    The
      Borrower shall pay and, within three Business Days of demand, indemnify each
      Financing Party against any cost, loss or liability that Financing Party incurs
      in relation to all stamp duty, registration and other similar Taxes payable
      in
      respect of any Financing Document.

     

    
      	15.8	
              VAT

            

    

     

    
      
        
          
            	15.8.1	
                    All
                      amounts set out, or expressed to be payable under a Financing
                      Document by
                      any Party to a
                      Financing Party which (in whole or in part) constitute the
                      consideration
                      for VAT purposes shall
                      be deemed to be exclusive of any VAT which is chargeable on
                      such supply,
                      and accordingly,
                      subject to paragraph 15.8.2 below, if VAT is chargeable on
                      any supply made
                      by any
                      Financing Party to any Party under a Financing Document, that
                      Party shall
                      pay to the Financing
                      Party (in addition to and at the same time as paying the consideration)
                      an
                      amount equal
                      to the amount of the VAT (and such Financing Party shall promptly
                      provide
                      an appropriate
                      VAT invoice to such
                      Party).

                  

          

        

      

    

     

    
      
        
          	15.8.2	
                  If
                    VAT is chargeable on any supply made by any Financing Party (the
                    "Supplier") to any other Financing
                    Party (the "Recipient") under a Financing Document, and any Party
                    (the
                    "Relevant Party")
                    is required by the terms of any Financing Document to pay an
                    amount equal
                    to the consideration
                    for such supply to the Supplier (rather than being required to
                    reimburse
                    the Recipient
                    in respect of that consideration), such Party shall also pay
                    to the
                    Supplier (in addition
                    to and at the same time as paying such amount) an amount equal
                    to the
                    amount of such
                    VAT. The Recipient will promptly pay to the Relevant Party an
                    amount equal
                    to any credit
                    or repayment from the relevant tax authority which it reasonably
                    determines relates to the
                    VAT chargeable on that
                    supply.

                

        

      

    

     

    
      
        
        

      

      
        Page
          62

        
          

        

      

      
        
        

      

    

     

    
      	15.8.3	
              Where
                a Financing Document requires any Party to reimburse a Financing
                Party for
                any costs or
                expenses, that Party shall also at the same time pay and indemnify
                the
                Financing Party against
                all VAT incurred by the Financing Party in respect of the costs or
                expenses to the extent that the Financing Party reasonably determines
                that
                neither it nor any other member of the group of which it is a member
                for
                VAT purposes is entitled to credit or repayment from the relevant
                tax
                authority in respect of the VAT.

            

    

     

    
      	15.9	
              Indemnity
                payments

            

    

     

    Where
      in
      any Financing Document the Borrower has an obligation to indemnify or reimburse
      any
      Financing Party in respect of any loss or payment, the calculation of the amount
      payable by
      way of
      indemnity or reimbursement shall take account of the likely Tax treatment in
      the
      hands of that Financing Party (as conclusively determined by that Financing
      Party acting in good
      faith and in the absence of any manifest error) of the amount payable by way
      of
      indemnity or reimbursement and of the loss or payment in respect of which that
      amount is payable.

     

    
      	16	
              Amendments
                and waivers

            

    

     

    
      	16.1	
              Required
                consents

            

    

     

    
      
        
          	16.1.1	
                  Subject
                    to Clause 16.2 any term of the Financing Documents may be amended
                    or
                    waived only with
                    the consent of the Majority Banks and the Security Companies
                    and any such
                    amendment or
                    waiver will be binding on all
                    Parties.

                

        

      

    

     

    
      
        
          	16.1.2	
                  The
                    Agent may effect, on behalf of any Financing Party, any amendment
                    or
                    waiver permitted by
                    this Clause.

                

        

      

    

     

    
      	16.2	
              Exceptions

            

    

     

    
      	16.2.1	
              An
                amendment or waiver that has the effect of changing or which relates
                to:

            

    

     

    
      	
            	(a)	
              the
                definition of Majority
                Banks in
                Clause 1.1;

            

    

     

    
      	
            	(b)	
              an
                extension to the date of payment of any amount under the Financing
                Documents;

            

    

     

    
      	 	
              (c)

            	
              a
                reduction in the Interest Margin or a reduction in the amount of
                any
                payment of principal,
                interest, fees or commission
                payable;

            

    

     

    
      	
            	(d)	
              an
                increase in or an extension of any
                Commitment;

            

    

     

    
      	
            	(e)	
              an
                extension of the Availability
                Period;

            

    

    
      	 	 	 

      	
            	(f)	
              a
                change to the Security Companies;

            

    

     

    
      	
            	(g)	
              any
                provision which expressly requires the consent of all the
                Banks;

            

    

     

    
      	
            	(h)	
              Clauses
                2.2, 2.3, 22 or this Clause 16;

            

    

    
      	 	 	 

      	
            	(i)	
              a
                change in the currency of any payment under any Financing Document;
                

            

    

     

    
      	
            	(j)	
              any change to Clauses 5, 6, 7,
                15.4 or 18;
                or

            

    

     

    
      	
            	(k)	
              a
                release or partial release of any Encumbrance created, evidenced
                or
                granted under the Financing
                Documents,

            

    

     

    shall
      not
      be made without the prior consent of all the Banks and in the case of (a),
      (f),
      (j) and (k)
      all
      the Banks and the Hedging Banks.

     

    
      
        
        

      

      
        Page
          63

        
          

        

      

      
        
        

      

    

     

    
      	16.2.2	
              An
                amendment or waiver which relates to the rights or obligations of
                the
                Agent, the Security Trustee
                or the Arranger may not be effected without the consent of the Agent,
                the
                Security Trustee
                or the Arranger.

            

    

     

    
      	16.3	
              Consents

            

    

     

    Any
      consent or approval by the Agent, Security Trustee, any Bank or Hedging Bank,
      the Majority
      Banks, the Account Bank or the Borrower under any provision of the Financing
      Documents must be in writing. Any waiver or consent may be given subject to
      any
      conditions thought
      fit by the person or entity giving it and will be effective only in the instance
      and for the purpose
      for which it is given.

     

    
      	16.4	
              Majority
                Banks procedure

            

    

     

    
      
        
          	16.4.1	
                  Where
                    any consent, approval, determination, waiver or other decision
                    is required
                    to be given, made
                    or taken by the Majority Banks under this Agreement, the Agent
                    shall by
                    notice to the Banks
                    specify the period of time (not being less than 5 Business Days
                    (except in
                    the case of an
                    emergency) nor more than 15 Business Days) within which replies
                    are
                    required and whether
                    the procedure in Clause 16.4.2 shall
                    apply.

                

        

      

    

     

    
      
        
          	16.4.2	
                  Each
                    Bank or Hedging Bank shall be entitled to one vote per US Dollar
                    (in the
                    case of a Bank) of
                    its relative Participation (or if no Advances are outstanding,
                    its
                    Commitments) or (in the case of
                    a Hedging Bank) its Hedging Liabilities (in accordance with the
                    definition
                    of Majority Banks herein)
                    provided that each Bank or Hedging Bank shall be entitled to
                    exercise its
                    votes in its absolute
                    discretion and need not exercise its votes
                    consistently.

                

        

      

    

     

    
      
        
          	16.4.3	
                  Unless
                    as otherwise provided for in any Financing Document, if any Bank
                    or
                    Hedging Bank does
                    not vote within the period specified by the Agent, the amount
                    of its
                    Participation or its Commitment
                    or the Hedging Liability outstanding to it (as the case may require)
                    shall, if the Agent
                    has in the notice specified that this Clause 16.4.2 shall apply,
                    be
                    disregarded in the denominator
                    for the purpose of determining whether or not the requisite percentage
                    vote has been
                    achieved.

                

        

      

    

     

    
      	16.5	
              Remedies
                and waivers

            

    

     

    No
      failure to exercise, nor any delay in exercising, on the part of any Financing
      Party, any right or
      remedy
      under the Financing Documents shall operate as a waiver, nor shall any single
      or
partial
      exercise of any right or remedy prevent any further or other exercise or the
      exercise of any other right or remedy. The rights and remedies provided in
      this
      Agreement are cumulative and not exclusive of any rights or remedies provided
      by
      Law.

     

    
      	17	
              Set-off

            

    

     

    Subject
      to the provisions of the Intercreditor Agreement, a Financing Party may set
      off
      any matured obligation due from the Borrower under the Financing Documents
      (to
      the extent beneficially owned by that Financing Party) against any matured
      obligation owed by that Financing Party to the Borrower, regardless of the
      place
      of payment, booking branch or currency
      of either obligation. If the obligations are in different currencies, the
      Financing Party may convert either obligation at a market rate of exchange
      in
      its usual course of business for the purpose of the set-off.

     

    
      	18	
              Pro
                rata sharing

            

    

     

    
      	18.1	
              Payments
                to Financing Parties

            

    

     

    If
      a
      Financing Party (a Recovering
      Financing Party) receives
      or recovers any amount from the Borrower or any other person or entity other
      than in accordance with Clause 9 and applies that
      amount to a payment due under the Financing Documents then:

     

    
      
        
        

      

      
        Page
          64

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              the
                Recovering Financing Party shall, within three Business Days, notify
                details of the receipt
                or recovery to the Agent;

            

    

     

    
      
        
          	
                	(b)	
                  the
                    Agent shall determine whether the receipt or recovery is in excess
                    of the
                    amount the
                    Recovering Financing Party would have been paid had the receipt
                    or
                    recovery been
                    received or made by the Agent and distributed in accordance with
                    Clause 9,
                    without
                    taking account of any Tax which would be imposed on the Agent
                    in relation
                    to the
                    receipt, recovery or distribution; and

                

        

         

      

    

    
      
        
          	
                	
                  (c)

                	
                  the
                    Recovering Financing Party shall, within three Business Days
                    of demand by
                    the Agent,
                    pay to the Agent an amount (the Sharing Payment) equal to such
                    receipt or
                    recovery
                    less any amount which the Agent determines may be retained by
                    the
                    Recovering
                    Financing Party as its share of any payment to be made, in accordance
                    with
                    Clause 9.

                

        

      

    

     

    
      	18.2	
              Redistribution
                of payments

            

    

     

    The
      Agent
      shall treat the Sharing Payment as if it had been paid by the Borrower and
      distribute
      it between the Financing Parties (other than the Recovering Finance Party)
      in
accordance
      with Clause 9.1.

     

    
      	18.3	
              Recovering
                Financing Party's rights

            

    

     

    
      
        
          	18.3.1	
                  On
                    a distribution by the Agent under Clause 18.2, the Recovering
                    Financing
                    Party will be subrogated
                    to the rights of the Financing Parties which have shared in the
                    redistribution.

                

        

      

    

     

    
      
        
          	18.3.2	
                  If
                    and to the extent that the Recovering Financing Party is not
                    able to rely
                    on its rights under Clause
                    18.3.1, the Borrower shall be liable to the Recovering Financing
                    Party for
                    a debt equal to
                    the Sharing Payment which is immediately due and
                    payable.

                

        

      

    

     

    
      	18.4	
              Reversal
                of redistribution

            

    

     

    If
      any
      part of the Sharing Payment received or recovered by a Recovering Finance Party
      becomes
      repayable and is repaid by that Recovering Finance Party, then:

     

    
      
        
          	
                	(a)	
                  each
                    Financing Party which has received a share of the relevant Sharing
                    Payment
                    pursuant
                    to Clause 18.2 shall, upon request of the Agent, pay to the Agent
                    for
                    account of
                    that Recovering Financing Party an amount equal to the appropriate
                    part of
                    its share
                    of the Sharing Payment (together with an amount as is necessary
                    to
                    reimburse that
                    Recovering Financing Party for its proportion of any interest
                    on the
                    Sharing Payment
                    which that Recovering Financing Party is required to pay);
                    and

                

        

      

    

     

    
      
        
          	
                	(b)	
                  that
                    Recovering Financing Party's rights of subrogation in respect
                    of any
                    reimbursement
                    shall be cancelled and the Borrower will be liable to the reimbursing
                    Financing
                    Party for the amount so
                    reimbursed.

                

        

      

    

     

    
      	18.5	
              Exceptions

            

    

     

    
      
        
          	18.5.1	
                  This
                    Clause 18 shall not apply to the extent that the Recovering Financing
                    Party would not, after
                    making any payment pursuant to this Clause, have a valid and
                    enforceable
                    claim against the
                    Borrower.

                

        

      

    

     

    
      
        
          	18.5.2	
                  A
                    Recovering Financing Party is not obliged to share with any other
                    Financing Party any amount
                    which the Recovering Financing Party has received or recovered
                    as a result
                    of taking legal
                    or arbitration proceedings,
                    if:

                

        

      

    

     

    
      	
            	(a)	
              it
                notified that other Financing Party of the legal or arbitration
                proceedings; and

            

    

     

    
      	 	
              (b)

            	
              that
                other Financing Party had an opportunity to participate in those
                legal or
                arbitration proceedings
                but did not do so as soon as reasonably practicable having received
notice
                and did not take separate legal or arbitration
                proceedings.

            

    

     

    
      
        
        

      

      
        Page
          65

        
          

        

      

      
        
        

      

    

     

    
      	18.5.3	
              no
                Hedging Bank shall be obliged to share any amount set off pursuant
                to any
                provision of any Hedging
                Document provided that this Clause 18.5.3 shall not apply to any
                such
                amount set off pursuant to section 6(f) of a document which is a
                Hedging
                Document within sub-paragraph (a) of the definition
                thereof.

            

    

     

    
      	19	
              The
                Agent

            

    

     

    
      	19.1	
              Appointment
                of Agent

            

    

     

    Each
      Bank
      and Hedging Bank hereby appoints the Agent to act as its agent in connection
      with each
      of
      the Financing Documents and authorises the Agent to exercise such rights,
      powers, authorities
      and discretions as are specifically delegated to the Agent by the Financing
      Documents together with all such rights, powers, authorities and discretions
      as
      are reasonably incidental
      thereto.

     

    
      	19.2	
              Agent's
                rights

            

    

     

    The
      Agent
      may:

     

    
      	
            	(a)	
              assume
                that:

            

    

     

    
      	
            	(i)	
              any
                representation made by any Project Party in connection with any
                Transaction Document is true;

            

    

     

    
      	
            	(ii)	
              no
                Default has occurred;

            

    

     

    
      	
            	(iii)	
              no
                Project Party is in breach of or default under its obligations under
                any
                Transaction
                Document; and

            

    

     

    
      	
            	(iv)	
              any
                right, power, authority or discretion vested herein upon the Majority
                Banks,
                the Banks or any other person or entity or group of persons or entities
                has
                not been exercised,

            

    

     

    unless
      it
      has, in its capacity as Agent, received notice to the contrary from any other
      party
      to
      a Transaction Document;

     

    
      
        
          	
                	(b)	
                  assume
                    that the Facility Office of each Bank and Hedging Bank is that
                    identified
                    in Schedule
                    1, the relevant Transfer Certificate or other such document that
                    evidences
                    the
                    transfer of a Bank or Hedging Bank's rights and interests until
                    it has
                    received from such
                    Bank or Hedging Bank a notice designating some other office to
                    replace its
                    Facility
                    Office and act upon any such notice until the same is superseded
                    by a
                    further such
                    notice;

                

        

      

    

     

    
      	 	
              (c)

            	
              engage
                and pay for the advice or services of any lawyers, accountants, surveyors
                or other
                professional or technical experts whose advice or services may to
                it seem
                necessary,
                expedient or desirable and rely upon any advice so
                obtained;

            

    

     

    
      
        
          	
                	(d)	
                  appoint
                    any agent or delegate to any person or entity reasonably determined
                    by the
                    Agent
                    to be suitable qualified and experienced all or any of the rights,
                    powers
                    and authorisations
                    vested in it by the Financing Documents and the Agent shall not
                    be
                    bound
                    to supervise or be in anyway liable for any loss incurred by
                    any such
                    person or entity
                    by reason of any misconduct or default on the part of any such
                    agent or
                    delegate;

                

        

      

    

     

    
      	 	
              (e)

            	
              rely
                as to any matters of fact which might reasonably be expected to be
                within
                the knowledge
                of a Project Party upon a certificate signed by or on behalf of that
                Project Party;

            

    

     

    
      
        
        

      

      
        Page
          66

        
          

        

      

      
        
        

      

    

     

    
      	
            	(f)	
              rely
                upon any communication or document believed by it to be
                genuine;

            

    

     

    
      
        
          	
                	(g)	
                  refrain
                    from exercising any right, power or discretion vested in it as
                    Agent under
                    this Agreement
                    unless and until instructed by the Majority Banks as to whether
                    or not
                    such right,
                    power or discretion is to be exercised and, if it is to be exercised,
                    as
                    to the manner
                    in which it should be exercised;
                    and

                

        

      

    

     

    
      	
            	(h)	
              refrain
                from acting in accordance with any instructions of the Majority Banks
                to
                begin any legal action or proceeding arising out of or in connection
                with
                this Agreement until it shall have received such security as it may
                require (whether by way of payment in advance or otherwise) for all
                costs,
                claims, losses, expenses (including, without limitation, legal fees)
                and
                liabilities together with any VAT or any other similar tax thereon
                which
                it may incur in complying with those
                instructions.

            

    

     

    
      	19.3	
              Agent's
                obligations

            

    

     

    The
      Agent
      shall:

     

    
      	 	
              (a)

            	
              promptly
                inform each Bank and Hedging Bank of the contents of any notice or
                document
                received by it in its capacity as Agent from the Borrower under any
                Financing
                Document;

            

    

     

    
      	 	
              (b)

            	
              promptly
                notify each Bank and Hedging Bank of the occurrence of any Default
                or any
                default
                by the Borrower in the due performance of or compliance with its
                obligations under
                any Financing Document of which the Agent has notice from any other
                Party;

            

    

     

    
      	 	
              (c)

            	
              except
                as otherwise provided in this Agreement, act as agent under the Financing
                Documents
                in accordance with any instructions given to it by the Majority Banks,
                which
                instructions shall be binding on all the Banks and Hedging Banks;
                and

            

    

     

    
      	 	
              (d)

            	
              promptly
                respond to and consider any and all documents sent by Borrower to
                the
                Agent
                with respect of Completion, including providing confirmation as required
                under the
                Completion Test; and

            

    

     

    
      	 	
              (e)

            	
              if
                so instructed by the Majority Banks, refrain from exercising any
                right,
                power or discretion
                vested in it as Agent under any Financing
                Document.

            

    

     

    
      	19.4	
              Agent's
                protections

            

    

     

    Notwithstanding
      anything to the contrary in this Agreement, the Agent shall not:

     

    
      	
            	(a)	
              be
                bound to enquire as to:

            

    

     

    
      	
            	(i)	
              whether
                or not any representation made by any Project Party in connection
                with
                any Transaction Document is true;

            

    

     

    
      	
            	(ii)	
              the
                occurrence or otherwise of any
                Default;

            

    

     

    
      	
            	(iii)	
              the
                performance by any Project Party of its obligations under any Transaction
                Document;
                or

            

    

     

    
      	
            	(iv)	
              any
                breach of or default by any Project Party of its obligations under
                any
                Transaction
                Document;

            

    

     

    
      	 	
              (b)

            	
              be
                bound to account to any Bank or Hedging Bank for any sum or the profit
                element of any
                sum received by it for its own
                account;

            

    

     

    
      	 	
              (c)

            	
              be
                bound to disclose to any other person or entity any information relating
                to any Project
                Party if such disclosure would or might in its opinion constitute
                a breach
                of any Law
                or regulation or be otherwise actionable at the suit of any person
                or
                entity;

            

    

     

    
      
        
        

      

      
        Page
          67

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              be
                liable to any Bank or Hedging Bank or any other party in respect
                of any
                waiver or confirmation
                or agreement given under this Agreement at the request of the Borrower
                and
                in accordance with the instructions of the Majority Banks; or
                

            

    

     

    
      	 	
              (e)

            	
              be
                under any obligations other than those for which express provision
                is made
                in this Agreement.

            

    

     

    
      	19.5	
              Indemnity

            

    

     

    Each
      Bank
      and Hedging Bank shall indemnify the Agent on demand (to the extent not
reimbursed
      by the Borrower) rateably according to that Bank's Participation in the Facility
      (or, if no
      Advance shall then be outstanding, its Commitment in respect of the Facility)
      or
      that Hedging Bank's Hedging Liabilities from and against all liabilities, losses
      and expenses of any kind
      or
      nature whatsoever (except in respect of any fee due to the Agent) which may
      be
incurred
      by the Agent in relation to the Financing Documents or any action taken or
      omitted in enforcing
      or preserving the rights of the Banks and Hedging Banks under the Financing
      Documents,
      provided that no Bank or Hedging Bank shall be liable for any such liabilities,
      losses or expenses resulting from the gross negligence or wilful misconduct
      of
      the Agent.

     

    
      	19.6	
              Responsibility

            

    

     

    No
      Financing Party or Hedging Bank accepts any responsibility for the accuracy
      or
completeness
      of any information supplied by the Borrower in connection with the Project
      or
      for the
      legality, validity, effectiveness, adequacy or enforceability of any Transaction
      Document and
      the
      Agent shall not be under any liability as a result of taking or omitting to
      take
      any action in relation to any Transaction Document, except in the case of gross
      negligence or wilful misconduct.

     

    
      	19.7	
              Agent's
                directors, officers and
                employees

            

    

     

    Each
      Bank
      and Hedging Bank agrees that it will not assert or seek to assert against any
      director,
      officer or employee of the Agent from time to time any claim it might have
      against any of them in respect of the matters referred to in Clause
      19.6.

     

    
      	19.8	
              Agent's
                business

            

    

     

    The
      Agent
      may accept deposits from, lend money to and generally engage in any kind of
      banking or other business with any Project Party.

     

    
      	19.9	
              Resignation
                and removal of Agent

            

    

     

    
      
        	19.9.1	
                The
                  Agent may resign or transfer to a related company within the same
                  group
                  its appointment under
                  this Agreement at any time without assigning any reason therefor
                  by giving
                  not less than 30
                  days' prior written notice to that effect to each of the other
                  Parties,
                  and the Majority Banks may
                  remove the Agent from its appointment under this Agreement without
                  assigning any reason
                  therefor by giving not less than 30 days' prior notice to that
                  effect to
                  the Agent and each of the other Parties, provided that no such
                  resignation, transfer or removal shall be effective
                  until:

              

      

    

     

    
      
        
          
            	
                  	(a)	
                    a
                      successor Agent has accepted its appointment as such for the
                      purposes of
                      the Financing
                      Documents in accordance with Clause 19.10 and has agreed to
                      be bound
                      by
                      and comply with the obligations and to enjoy the rights of
                      the retiring
                      Agent thereunder
                      as if the successor Agent had been a party thereto in place
                      of the
                      retiring Agent;
                      and

                  

          

        

      

    

     

    
      
        
          
            	
                  	(b)	
                    without
                      prejudice to paragraph (a), the successor Agent has executed
                      and delivered
                      all
                      deeds and documents required under the terms of any Financing
                      Document
                      in relation
                      to its
                      appointment,

                  

          

        

      

    

     

    
      
        
        

      

      
        Page
          68

        
          

        

      

      
        
        

      

    

     

    whereupon:

     

    
      
        	
              	(i)	
                the
                  retiring Agent shall cease to be a party to the Financing Documents
                  in its
                  capacity as such and shall have no further rights and be discharged
                  from
                  any further obligation thereunder (but without prejudice to any
                  liabilities accrued thereunder but unperformed by the retiring
                  Agent) but
                  shall remain entitled to the benefit of this Clause 19;
                  and

              

      

    

     

    
      	
            	(ii)	
              the
                successor Agent and each other party to the Financing Documents shall
                have
                the same rights and obligations amongst themselves as they would
                have had
                if the successor Agent had been a party thereto in place of the retiring
                Agent,

            

    

     

    and
      the
      Borrower shall execute and deliver all deeds and documents and do all acts
      and
      things as the retiring Agent or the successor Agent may reasonably require
      in
      relation to the appointment
      of the successor Agent. The retiring Agent shall make available to the successor
      Agent all records and documents held by it as Agent, and shall co-operate with
      the successor Agent in order to ensure an orderly transition.

     

    
      
        
          
            	19.9.2	
                    In
                      the event that the successor Agent is not a Bank or an Affiliate
                      of a
                      Bank, the Banks shall, other
                      than where an Event of Default has occurred and is continuing,
                      obtain the
                      consent of the Borrower
                      (not to be unreasonably delayed or withheld) prior to the appointment
                      of a
                      successor Agent.

                  

          

        

      

    

     

    
      	19.9.3	
              The
                successor Agent shall promptly notify the other Parties of its
                appointment.

            

    

     

    
      
        
          	19.9.4	
                  Subject
                    to the express provisions of this Agreement to the contrary,
                    each party
                    shall bear its own
                    costs or expenses incurred in connection with the resignation
                    or removal
                    of the Agent.

                

        

      

    

     

    
      	19.10	
              Successor
                Agent

            

    

     

    If
      the
      Agent gives notice of its resignation or if the Majority Banks give the Agent
      notice of removal pursuant to Clause 19.9, then the Majority Banks may, with
      the
      consent of the Borrower
      (not to be unreasonably delayed or withheld) and other than where an Event
      of
Default
      has occurred and is continuing, appoint as a successor to the Agent (after
      consultation with
      the
      Borrower) any reputable and experienced bank or other financial institution
      but,
      if no such successor is so appointed before the fifth Business Day prior to
      the
      expiry of the period of
      such
      notice, the Agent may, with the consent of the Borrower (not to be unreasonably
      delayed
      or withheld) and other than where an Event of Default has occurred and is
      continuing, appoint such a successor itself.

     

    
      	19.11	
              Credit
                decisions

            

    

     

    Each
      Bank
      and Hedging Bank agrees that it has itself been, and will continue to be, solely
      responsible
      for making its own independent appraisal of and investigations into the
      financial condition,
      creditworthiness, condition, affairs, status and nature of each Project Party
      and of the
      Project and, accordingly, each Bank and Hedging Bank represents and warrants
      to
      each Financing
      Party, the Agent and to the Arranger that it has not relied on and will not
      hereafter rely
      on
      it:

     

    
      
        
          	
                	(a)	
                  to
                    check or enquire on its behalf into the adequacy, accuracy or
                    completeness
                    of any information
                    provided by any Project Party or any other person or entity in
                    connection
                    with
                    any Transaction Document or the transactions contemplated in
                    the
                    Transaction Documents
                    (whether or not such information has been or is after the date
                    of this
                    Agreement
                    circulated to such Bank by the Agent);
                    or

                

        

      

    

     

    
      
        
          	
                	(b)	
                  to
                    assess or keep under review on its behalf the financial condition,
                    creditworthiness, condition,
                    affairs, status or nature of any Project Party or of the
                    Project.

                

        

      

    

     

    
      
        
        

      

      
        Page
          69

        
          

        

      

      
        
        

      

    

     

    
      	19.12	
              Agent's
                agency division

            

    

     

    Each
      division or department of the Agent (including, for so long as Investec Bank
      (UK) Limited is
      the
      Agent, the Commodities and Resource Financing Department) of Investec Bank
      (UK)
Limited
      shall be treated as a separate entity from any other division or department
      of
      the Agent.
      If
      any of the Agent's divisions or departments should act for any Project Party
      in
      any capacity
      (whether as bankers or otherwise) in relation to any other matter, any
      information given by that Project Party to any such division or department
      may
      be treated as confidential and the Agent shall, as between itself and the Banks
      and the Hedging Banks, not be obliged to disclose the same to any Bank or
      Hedging Bank or any other person or entity.

     

    
      	19.13	
              Banks'Advisers

            

    

     

    The
      Agent
      shall take such steps as are reasonable and appropriate in the circumstances
      to
procure
      so far as it is able so to do that the Banks' Advisers punctually perform such
      functions as
      are
      expressed to be performed by them as contemplated in this Agreement or in the
      terms of their appointment, provided that the Agent shall not be held
      responsible for any failure by a Banks' Adviser to perform any such function.
      If
      a Banks' Adviser shall cease to be such, whether by reason of removal,
      replacement, resignation or otherwise, the Agent shall appoint another
      Banks' Adviser as soon as reasonably practicable in order to ensure that those
      functions
      to be performed by the Banks' Adviser, as contemplated by this Agreement or
      in
      the terms
      of
      the appointment of the Banks' Adviser, are performed punctually.

     

    
      	19.14	
              Arranger

            

    

     

    Other
      than as specifically provided in the Financing Documents, the Arranger shall
      have no obligations or responsibilities under, or in respect of, the Transaction
      Documents or the Project.

     

    
      	19.15	
              Information
                and fees

            

    

     

    
      
        
          	19.15.1	
                  The
                    Agent shall provide the Banks and Hedging Banks with all information
                    and
                    copies of all notices
                    which are given to it and which by the terms of this Agreement
                    are to be
                    provided or given
                    to the Banks and Hedging Banks. The Agent may retain for its
                    own use and
                    benefit (and shall
                    not be liable to account to any Bank for all or any part of)
                    any sums
                    received by it by way of
                    agency or management or arrangement fees or by way of reimbursement
                    of
                    expenses incurred
                    by it.

                

        

      

    

     

    
      
        
          	19.15.2	
                  Each
                    Bank and Hedging Bank confirms in favour of the Agent that, unless
                    it
                    notifies the Agent to
                    the contrary, it will be the beneficial owner of any interest
                    paid to it
                    under this Agreement and
                    it will be within the charge to United Kingdom corporation tax
                    as respects
                    that interest.

                

        

      

    

     

    
      	19.16	
              Change
                of office

            

    

     

    The
      Agent
      may at any time in its sole discretion by notice to the Borrower and each Bank
      and Hedging Bank designate a different office from which its duties under this
      Agreement will be performed.

     

    
      	19.17	
              Execution
                of Financing Documents

            

    

     

    Each
      Bank
      and Hedging Bank irrevocably authorises the Agent to sign or execute and
      deliver, as
      the
      case may be, the following Financing Documents:

     

    
      	
            	(a)	
              the
                Intercreditor Agreement; and

            

    

     

    
      
        
          
            
              	
                    	(b)	
                      theSecurity
                        Documents (except where entered into by the Security Trustee
                        on behalf
                        of
                        the Secured Parties), on
                        its
                        behalf.

                    

            

          

        

      

    

     

    
      
        
        

      

      
        Page
          70

        
          

        

      

      
        
        

      

    

     

    
      	20	
              Miscellaneous

            

    

     

    
      	20.1	
              Partial
                invalidity

            

    

     

    If,
      at
      any time, any provision of the Financing Documents is or becomes illegal,
      invalid or unenforceable
      in any respect under any Law of any jurisdiction, neither the legality, validity
      or enforceability
      of the remaining provisions nor the legality, validity or enforceability of
      such
      provision under the Law of any other jurisdiction will in any way be affected
      or
      impaired.

     

    
      	20.2	
              Counterparts

            

    

     

    Each
      Financing Document may be executed in any number of counterparts, and this
      has
      the same effect as if the signatures on the counterparts were on a single copy
      of the Financing Document.

     

    
      	21	
              Notices

            

    

     

    
      	21.1	
              Communications
                in writing

            

    

     

    Any
      communication to be made under or in connection with the Financing Documents
      shall be made in writing and, unless otherwise stated, may be made by fax or
      letter.

     

    
      	21.2	
              Delivery

            

    

     

    
      	
              21.2.1

            	
              Any
                communication or document made or delivered by one person or entity
                to
                another under or
                in connection with the Financing Documents will only be
                effective:

            

    

     

    
      	
            	(a)	
              if
                by way of fax, when received in legible form;
                or

            

    

     

    
      	 	
              (b)

            	
              if
                by way of letter, when it has been left at the relevant address or
                five
                Business Days after
                being deposited in the post postage prepaid in an envelope addressed
                to it
                at that
                address; 

            

    

     

    and,
      if a particular department or officer is specified
      as part of its address details provided under
      Clause 21.3, if addressed to that department or officer.

     

    
      	
              21.2.2

            	
              Any
                communication or document to be made or delivered to the Agent will
                be
                effective only when
                actually received by the Agent and then only if it is expressly marked
                for
                the attention of the
                department or officer identified with the Agent's signature below
                (or any
                substitute department
                or officer as the Agent shall specify for this
                purpose).

            

    

     

    
      
        	21.2.3	
                All
                  notices from or to the Borrower shall be sent through the
                  Agent.

              

      

    

     

    
      	
              21.2.4

            	
              Any
                communication or document made or delivered to the Borrower in accordance
                with this Clause
                will be deemed to have been made or delivered to each of the
                Obligors.

            

    

     

    
      
        	21.3	
                Addresses

              

      

    

     

    
      	21.3.1	
              The
                address and fax number (and the department or officer, if any, for
                whose
                attention the communication
                is to be made) of each Party for any communication or document to
                be made
                or
                delivered under or in connection with the Financing Documents is
                as
                identified below or any substitute address or fax number or department
                or
                officer as the Party may notify to the Agent (or the Agent may notify
                to
                the other Parties, if a change is made by the Agent) by not less
                than five
                Business Days' notice:

            

    

    
       

      
         (a) 
           the
          Borrower:

         

                
2
          Bloor
          Street West Suite
          2102

      

    

    
      
        
           

          
            	 	 	 

          

        

      

    

    
      
        
        

      

      
        Page
          71

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            Box
              110

            Toronto,
              Ontario Canada
              M4
              W
              3E2

          

        

      

    

     

    Attention:
      Chief Financial Officer 

    Fax:
      (416)324-9494

     

     (b) the
      Guarantor:

     

    2
      Bloor
      Street West 

    Suite
      2102 

    Box
      110

    Toronto,
      Ontario 

    Canada
      M4
      W
      3E2

     

    Attention:
      Chief Financial Officer 

    Fax:
      (416)324-9494

     

     (c) the
      Agent:

     

    2
      Gresham
      Street 

    London
      

    EC2V
      7QP

    United
      Kingdom

     

    Attention: Loans
      Administration

    Fax: +44
      20
      7597 4913

     

    With
      copies of legal notices to:

     

    Attention: Documentation
      and Counterparty Management

    Fax: +44
      20
      7597 4975

     

     (d) the
      Security Trustee:

     

    2
      Gresham
      Street 

    London
      

    EC2V
      7QP

    United
      Kingdom

     

    Attention: Loans
      Administration

    Fax: +44
      20
      7597 4913

     

    With
      copies of legal notices to:

     

    Attention: Documentation
      and Counterparty Management

    Fax: +44
      20
      7597 4975

     

    
      	21.4	
              Notification
                of address and fax number

            

    

     

    Promptly
      upon receipt of notification of an address or fax number or change of address
      or
      fax number
      pursuant to Clause 21.3 or changing its own address or fax number, the Agent
      shall notify
      the other Parties.

     

    
      
        
        

      

      
        Page
          72

        
          

        

      

      
        
        

      

    

     

    
      	21.5	
              Electronic
                communication

            

    

     

    
      	
              21.5.1

            	
              Any
                communication to be made between the Agent and a Bank under or in
                connection with the Financing
                Documents may be made by electronic mail or other electronic means,
                if the
                Agent and
                the relevant Bank:

            

    

     

    
      	 	
              (a)

            	
              agree
                that, unless and until notified to the contrary, this is to be an
                accepted
                form of communication;

            

    

     

    
      	 	
              (b)

            	
              notify
                each other in writing of their electronic mail address and/or any
                other
                information required
                to enable the sending and receipt of information by that means;
                and

            

    

     

    
      	 	
              (c)

            	
              notify
                each other of any change to their address or any other such information
                supplied
                by them.

            

    

     

    
      	
              21.5.2

            	
              Any
                electronic communication made between the Agent and a Bank will be
                effective only when actually
                received in readable form and in the case of any electronic communication
                made by a Bank
                to the Agent only if it is addressed in such a manner as the Agent
                shall
                specify for this purpose.

            

    

     

    
      	22	
              Assignments,
                transfers and syndication

            

    

     

    
      	22.1	
              Assignments
                and transfers by the
                Borrower

            

    

     

    The
      Borrower may not assign any of its rights or transfer any of its rights or
      obligations under the
      Financing Documents.

     

    
      	22.2	
              Assignments
                and transfers by Banks

            

    

     

    
      	
              22.2.1

            	
              Subject
                to this Clause 22, a Bank (the Existing
                Bank) may
                transfer by novation any of its rights
                and obligations under the Financing Documents listed in Schedule
                7 to a
                Qualifying Bank,
                an Affiliate or another Bank (the New
                Bank) provided
                that if an Event of Default has occurred
                and is continuing the Existing Bank may transfer to any bank or financial
                institution, or
                a trust, fund or other entity which is regularly engaged in or established
                for the purpose of making,
                purchasing or investing in loans, securities or other financial
                assets.

            

    

     

    
      	22.2.2	
              A
                transfer will only be effective if the procedure set out in Clause
                22.4 is
                complied with.

            

    

     

    
      
        	22.2.3	
                If:

              

      

    

     

    
      	 	
              (a)

            	
              a
                Bank transfers any of its rights or obligations under the Finance
                Documents in accordance
                with Clause 22.2.1 or changes its Facility Office;
                and

            

    

     

    
      	 	
              (b)

            	
              as
                a result of circumstances existing at the date transfer or change
                occurs,
                the Borrower
                would be obliged to make a payment or an increased payment to the
                New
                Bank
                or Bank acting through its new Facility Office under Clause 9,7 or
                Clause
                8.2,

            

    

     

    then
      the
      New Bank or Bank acting through its new Facility Office is only entitled to
      receive payment
      under those Clauses to the same extent as the Existing Lender or Lender acting
      through
      its previous Facility Office would have been if the transfer or change had
      not
      occurred.

     

    
      	
              22.2.4

            	
              The
                New Bank shall, on the date upon which a transfer takes effect, pay
                to the
                Agent (for its own
                account) a fee of $1,000.

            

    

     

    
      	22.3	
              Limitation
                of responsibility of Existing
                Banks

            

    

     

    
      	22.3.1	
              Unless
                expressly agreed to the contrary, an Existing Bank makes no representation
                or warranty
                and assumes no responsibility to a New Bank
                for:

            

    

     

    
      
        
        

      

      
        Page
          73

        
          

        

      

      
        
        

      

    

    

      
        	 	
                (a)

              	
                the
                  legality, validity, effectiveness, adequacy or enforceability of
                  the
                  Financing Documents
                  or any other documents;

              

      

       

      
        	
              	(b)	
                the
                  financial condition of the
                  Borrower;

              

      

       

      
        	 	
                (c)

              	
                the
                  performance and observance by the Borrower of its obligations under
                  the
                  Financing
                  Documents or any other documents;
                  or

              

      

       

      
        	 	
                (d)

              	
                the
                  accuracy of any statements (whether written or oral) made in or
                  in
                  connection withany
                  Financing Document or any other document, and
                  any representations or warranties implied by Law are
                  excluded.

              

      

       

      
        	22.3.2	
                Each
                  New Bank confirms to the Existing Bank and the other Financing
                  Parties
                  that it:

              

      

       

      
        	 	
                (a)

              	
                has
                  made (and shall continue to make) its own independent investigation
                  and
                  assessment
                  of the financial condition and affairs of the Borrower and its
                  relate
                  dentities in connection with its participation in this Agreement
                  and has
                  not relied exclusively
                  on any information provided to it by the Existing Bank in connection
                  with
                  any
                  Financing Document; and

              

      

       

      
        	 	
                (b)

              	
                will
                  continue to make its own independent appraisal of the creditworthiness
                  of
                  each Borrower
                  and its related entities whilst any amount is or may be outstanding
                  under
                  the Financing
                  Documents or any Commitment is in
                  force.

              

      

       

      
        	22.3.3	
                Nothing
                  in any Financing Document obliges an Existing Bank
                  to:

              

      

       

      
        	 	
                (a)

              	
                accept
                  a re-transfer from a New Bank of any of the rights and obligations
                  assigned or transferred
                  under this Clause 22; or

              

      

       

      
        	 	
                (b)

              	
                support
                  any losses directly or indirectly incurred by the New Bank by reason
                  of
                  the non-performance
                  by the Borrower of its obligations under the Financing Documents
                  or
                  otherwise.

              

      

       

      
        	22.4	
                Procedure
                  for transfer

              

      

       

      
        	
                22.4.1

              	
                Subject
                  to the conditions set out in Clauses 22.1 and 22.2 a transfer is
                  effected
                  in accordance with
                  sub-clause 22.4.3 below when the Agent executes an otherwise duly
                  completed Transfer Certificate delivered to it by the Existing
                  Bank and
                  the New Bank. The Agent shall, subject to paragraph
                  (b) below, as soon as reasonably practicable after receipt by it
                  of a duly
                  completed Transfer
                  Certificate appearing on its face to comply with the terms of this
                  Agreement and delivered in accordance with the terms of this Agreement,
                  execute that Transfer Certificate.

              

      

       

      
        	
                22.4.2

              	
                The
                  Agent shall only be obliged to execute a Transfer Certificate delivered
                  to
                  it by the Existing Bank
                  and the New Bank once it is satisfied it has complied with all
                  necessary
                  "know your customer"
                  or other similar checks under all applicable Laws and regulations
                  in
                  relation to the transfer to such New
                  Bank.

              

      

       

      
        	22.4.3	
                On
                  the Transfer Date:

              

      

       

      
        	 	
                (a)

              	
                to
                  the extent that in the Transfer Certificate the Existing Bank seeks
                  to
                  transfer by novation
                  its rights and obligations under the Financing Documents the Borrower
                  and
                  the Existing Bank shall be released from further obligations towards
                  one
                  another underthe
                  Financing Documents and their respective rights against one another
                  under
                  the Financing Documents shall be cancelled (being the Discharged
                  Rights andObligations);

              

      

       

      
        	 	
                (b)

              	
                the
                  Borrower and the New Bank shall assume obligations towards one
                  another
                  and/oracquire rights against one another which differ from the
                  Discharged
                  Rights and

              

      

       

      
        
          
          

        

        
          Page
            74

          
            

          

        

        
          
          

        

      

       

      Obligations
        only insofar as the Borrower and the New Bank have assumed and/or acquired
        the
        same in place of the Borrower and the Existing Bank;

       

      
        	
              	(c)	
                the
                  Agent, the Arranger, the New Bank and other Banks shall acquire
                  the same
                  rights and
                  assume the same obligations between themselves as they would have
                  acquired
                  and assumed had the New Bank been an original Bank with the rights
                  and/or
                  obligations
                  acquired or assumed by it as a result of the transfer and to that
                  extent
                  the Agent,
                  the Arranger and the Existing Bank shall each be released from
                  further
                  obligations to each other under the Financing Documents; and the
                  New Bank
                  shall become a Party as a "Bank".

              

      

       

      
        	22.5	
                Copy
                  of Transfer Certificate to
                  Borrower

              

      

       

      The
        Agent
        shall, as soon as reasonably practicable after it has executed a Transfer
        Certificate, send
        to
        the Borrower a copy of that Transfer Certificate.

       

      
        	22.6	
                Assignments
                  and transfers by Hedging
                  Banks

              

      

       

      
        	
                22.6.1

              	
                Each
                  Hedging Bank may transfer at its own cost any of its rights and
                  obligations under any Financing
                  Document and hereby undertakes to each Financing Party that it
                  will not
                  assign, novate, transfer or dispose of any of its rights or obligations
                  under any Financing Document,other than by way of novation, transfer
                  or
                  disposal to a Bank of all or part of its rights and obligations
                  under the
                  Hedging Document to which it is a party where such Bank is a Hedging
                  Bank
                  or agrees to execute the necessary documentation to become a party
                  to this
                  Agreement as a Hedging Bank.

              

      

       

      
        	
                22.6.2

              	
                Each
                  Party agrees that upon the execution of a transfer pursuant to
                  Clause
                  22.6.1, the transferee
                  Bank and each of the other Parties shall have the same rights and
                  obligations amongst themselves as if that transferee Bank had been
                  an
                  original Party to this Agreement as
                  a Hedging Bank. Each Party hereby irrevocably authorises the Agent
                  to
                  execute and deliver the required documentation on its
                  behalf.

              

      

       

      
        	22.7	
                Disclosure
                  of information

              

      

       

      Any
        Bank
        or Hedging Bank may disclose to any of its Affiliates and any other person
        or
        entity:

       

      
        	 	
                (a)

              	
                to
                  (or through) whom that Bank assigns or transfers (or may potentially
                  assign or transfer) all or any of its rights and obligations under
                  this
                  Agreement;

              

      

       

      
        	 	
                (b)

              	
                with
                  (or through) whom that Bank enters into (or may potentially enter
                  into)
                  any sub-participation in relation to, or any other transaction
                  under which
                  payments are to bemade
                  by reference to, this Agreement or the Borrower;
                  or

              

      

       

      
        	 	
                (c)

              	
                to
                  whom, and to the extent that, information is required to be disclosed
                  by
                  any applicable Law or regulation, any information about the Borrower
                  and
                  the Financing Documents as that Bank shall consider appropriate.

              

      

       

      
        	22.8	
                Syndication

              

      

       

      
        	22.8.1	
                The
                  Borrower shall, at the request of the Arranger (acting reasonably),
                  provide reasonable assistance
                  to the Arranger in effecting Syndication,
                  by:

              

      

       

      
        	
              	(a)	
                providing
                  such information available to it as may be required by the Arranger
                  (acting reasonably)
                  in connection with Syndication including, without limitation, in
                  connection with
                  the preparation, revision and approval of the Information Package
                  for
                  potential lending
                  institutions (which shall be in form and substance satisfactory
                  to the
                  Arranger and
                  approved by the Borrower); and

              

      

       

      
        
          
          

        

        
          Page
            75

          
            

          

        

        
          
          

        

      

       

      
        	
              	
                (b)

              	
                making
                  management and members of staff of the Borrower available at reasonable
                  times
                  and on reasonable notice for the purposes of making presentations
                  to
                  potential lending institutions, and otherwise assisting the Arranger,
                  to
                  the extent reasonably necessary to achieve
                  Syndication.

              

      

       

      
        
          	22.8.2	
                  The
                    Borrower shall give the representation and warranty set out in
                    Clause 10.1
                    (m) to each bank or financial institution which enters into a
                    transfer or
                    participation agreement in connection
                    with Syndication at the date or dates of Syndication (each a
Syndication
                    Date):

                

        

      

       

      
        	23	
                Indemnities

              

      

       

      
        
          	23.1	
                  Indemnities

                

        

      

       

      The
        Borrower shall,  within three Business Days of demand,  indemnify each Financing
        Party against any cost,  loss or liability incurred by that Financing Party
        as a
        result of:

       

      
        	
              	(a)	
                the
                  occurrence of any Event of Default;

              

      

       

      
        	 	
                (b)

              	
                a
                  failure by a Security Company to pay any amount due under a Financing
                  Document on its due date,  including any cost, loss or liability
                  arising
                  as a result of Clause 18;

              

      

       

      
        	 	
                (c)

              	
                funding,
                  or making arrangements to fund, its participation in an Advance
                  requested
                  bythe
                  Borrower in a Drawdown Notice but not made by reason of the operation
                  of
                  anyone or more of the provisions of this Agreement (other than
                  by reason
                  of default or negligence
                  by that Financing Party alone); or

              

      

       

      
        	 	
                (d)

              	
                the
                  Loan (or part of the Loan) not being prepaid in accordance with
                  a notice
                  of prepayment given by the
                  Borrower.

              

      

       

      
        	23.2	
                Indemnity
                  to the Agent

              

      

       

      The
        Borrower shall promptly indemnify the Agent against any cost, loss or liability
        incurred by the Agent (acting reasonably) as a result of:

       

      
        	
              	(a)	
                investigating
                  any event which it reasonably believes is a
                  Default;

              

      

       

      
        	 	
                (b)

              	
                entering
                  into or performing any foreign exchange contract for the purposes
                  of
                  Clause 19; or

              

      

       

      
        	 	
                (c)

              	
                acting
                  or relying on any notice, request or instruction which it reasonably
                  believes to be
                  genuine, correct and appropriately
                  authorised.

              

      

       

      
        	23.3	
                Currency
                  indemnity

              

      

       

      
        	23.3.1	
                If
                  any sum due from the Borrower under the Financing Documents (a
                  Sum),
                  or
                  any order, judgment
                  or award given or made in relation to a Sum, has to be converted
                  from the
                  currency (the
                  First
                  Currency) in
                  which that Sum is payable into another currency (the Second
                  Currency)
                  for
                  the purpose of:

              

      

       

      
        	
              	(a)	
                making
                  or filing a claim or proof against the Borrower;
                  or

              

      

       

      
        	 	
                (b)

              	
                obtaining
                  or enforcing an order, judgment or award in relation to any litigation
                  or
                  arbitration proceedings,

              

      

       

      the
        Borrower shall, as an independent obligation, within three Business Days
        of
        demand, indemnify each Financing Party to whom that Sum is due against any
        cost,
        loss or liability arising
        out of or as a result of the conversion including any discrepancy between
        (i)
        the rate of exchange
        used to convert that Sum from the First Currency into the Second Currency
        and
        (ii) the
        rate
        or rates of exchange available to that person or entity at the time of its
        receipt of that

      
        Sum.

         

        
          
            
            

          

          
            Page
              76

            
              

            

          

          
            
            

          

        

      

       

      
        	23.3.2	
                The
                  Borrower waives any right it may have in any jurisdiction to pay
                  any
                  amount under the Financing
                  Documents in a currency or currency unit other than that in which
                  it is
                  expressed to be payable.

              

      

       

      
        	23.4	
                Project
                  indemnities

              

      

       

      The
        Borrower shall, within 10 Business Days of demand, indemnify each Financing
        Party and each
        Hedging Bank on demand against any loss or expense sustained or incurred
        by it
        as a result
        of:

       

      
        	 	
                (a)

              	
                it
                  incurring any liability under or pursuant to any Environmental
                  Law or
                  Environmental Authorisation
                  which would not have been incurred by it if it was not party to
                  the
                  arrangements
                  established under or pursuant to the Financing Documents;
                  or

              

      

       

      
        	 	
                (b)

              	
                any
                  failure on the part of the Borrower to comply with any Environmental
                  Authorisation or
                  Environmental Law; or

              

      

       

      
        	 	
                (c)

              	
                any
                  acts or omissions of any Project Party arising out of or in connection
                  with the obligations
                  to be performed by or on behalf of that Project Party pursuant
                  to the
                  Transaction Documents, except, in each case, where any such liability
                  is
                  due to the gross misconduct or wilful negligence
                  of any Financing Party.

              

      

       

      
        	24	
                Confidentiality

              

      

       

      
        	24.1	
                Borrower
                  confidentiality

              

      

       

      
        	
                24.1.1

              	
                The
                  Borrower undertakes not to disclose to any third party any of the
                  material
                  financial terms and
                  conditions of this Agreement or any other Financing Document other
                  than:

              

      

       

      
        	
              	(a)	
                to
                  its auditors or professional
                  advisers;

              

      

       

      
        	
              	(b)	
                to
                  its Affiliates and potential
                  Affiliates;

              

      

       

      
        	 	
                (c)

              	
                in
                  any proceedings arising out of or in connection with the Financing
                  Documents or if required by an order of any court of competent
                  jurisdiction or in pursuance of any procedure
                  for disclosure of documents in any proceedings before such
                  court;

              

      

       

      
        	 	
                (d)

              	
                pursuant
                  to any request or requirement of an agency or any state or if required
                  under any
                  applicable Law or directive as if required by any securities exchange
                  on
                  which the securities
                  of any Security Company or any Affiliate of any Security Company
                  are
                  listed;

              

      

       

      
        
          	
                	(e)	
                  to
                    the Insurers in fulfilment of any obligation arising under the
                    Insurances;
                    or

                

        

      

       

      
        	
              	(f)	
                with
                  the prior consent of the Agent (acting on the instructions of the
                  Majority
                  Banks).

              

      

       

      
        	
                24.1.2

              	
                Nothing
                  in this Clause 24.1 shall apply to any information, reports or
                  documents
                  which shall have
                  come into the public domain (otherwise than in consequence of a
                  breach
                  of
                  Clause
                  24.1). Nor shall Clause 24.1 apply to any information, report or
                  document
                  received in good faith by the Borrower otherwise than from a Financing
                  Party or a person or entity acting on a Financing Party's
                  behalf.

              

      

    

     

    
      
        
        

      

      
        Page
          77

        
          

        

      

      
        
        

      

    

    

      
        	24.2	
                Financing
                  Party and Hedging Bank
                  confidentiality

              

      

       

      
        	
                24.2.1

              	
                Subject
                  to Clause 24.2.4, each Financing Party and each Hedging Bank shall,
                  at all
                  times during and after the continuance of this Agreement, hold
                  confidential and not disclose to any third
                  party and (except in the context of an accretion to its general
                  experience, knowledge and expertise
                  or with the consent of the Borrower) use only for the purposes
                  of the
                  Project, the Transaction
                  Documents all confidential information, reports or documents relating
                  to
                  the Project
                  received by it pursuant to, or in the course of the negotiations
                  leading
                  to, the Financing Documents
                  (Confidential
                  Information).

              

      

       

      
        	24.2.2	
                A
                  Financing Party and a Hedging Bank shall be permitted to disclose
                  Confidential Information:

              

      

       

      
        	
              	(a)	
                to
                  its auditors or professional
                  advisers;

              

      

       

      
        	
              	(b)	
                to
                  any of the Banks' Advisers (subject to Clause
                  24.2.4);

              

      

       

      
        	 	
                (c)

              	
                to
                  any actual or potential assignee, novatee or sub-participant (in
                  each case
                  subject to Clause
                  24.2.4);

              

      

       

      
        	 	
                (d)

              	
                in
                  any proceedings arising out of or in connection with the Transaction
                  Documents or if required by an order by any court of competent
                  jurisdiction or in pursuance of any procedure
                  for disclosure of documents in any proceedings before such
                  court;

              

      

       

      
        	 	
                (e)

              	
                pursuant
                  to any request or requirement of an agency or any state or if required
                  under any applicable Law or
                  directive;

              

      

       

      
        	
              	(f)	
                to
                  the Insurers in fulfilment of any obligation arising under the
                  Insurances;
                  or

              

      

       

      
        	 	
                (g)

              	
                at
                  any time after any Security created under or pursuant to the Security
                  Documents has become exercisable, in connection with the enforcement
                  of
                  that Security.

              

      

       

      
        	
                24.2.3

              	
                Nothing
                  in this Clause 24.2 shall apply to any information, reports or
                  documents
                  which shall have
                  come into the public domain (otherwise than in consequence of a
                  breach of
                  Clause 24.2). Nor shall Clause 24.2 apply to any information, report
                  or
                  document received in good
                  faith by a Financing Party or a Hedging Bank otherwise than from
                  the
                  Borrower or a person
                  or entity acting on the Borrower's
                  behalf.

              

      

       

      
        	
                24.2.4

              	
                A
                  disclosure of Confidential Information may only be made under Clause
                  24.2.2(b) and Clause
                  24.2.2(c) subject to the relevant Financing Party or Hedging Bank
                  obtaining from the recipient of such Confidential Information an
                  undertaking substantially in the terms of Clause
                  24.2.

              

      

       

      
        	25	
                Law
                  and jurisdiction

              

      

       

      
        	25.1	
                Law

              

      

       

      This
        Agreement is governed by English Law.

       

      
        	25.2	
                Jurisdiction

              

      

       

      
        	
                25.2.1

              	
                The
                  courts of England have exclusive jurisdiction to settle any dispute
                  arising out of or in connection
                  with this Agreement (including a dispute regarding the existence,
                  validity
                  or termination
                  of this Agreement) (a Dispute).

              

      

       

      
        	
                25.2.2

              	
                The
                  Parties agree that the courts of England are the most appropriate
                  and
                  convenient courts to settle Disputes and accordingly no Party will
                  argue
                  to the contrary.

              

      

       

      This
        Clause 25.2 is for the benefit of the Financing Parties only. As a result,
        no
        Financing Party
        shall be prevented from taking proceedings relating to a Dispute in any other
        courts with jurisdiction.
        To the extent allowed by law, the Financing Parties may take concurrent
        proceedings in any number of jurisdictions.

       

      
        
          
          

        

        
          Page
            78

          
            

          

        

        
          
          

        

      

       

      25.3
        Service of process

       

      Without
        prejudice to any other mode of service allowed under any relevant Law, each
        of
        the Borrower and the Guarantor:

       

      
        	 	
                (a)

              	
                irrevocably
                  appoints Law Debenture Corporate Services of Fifth Floor, 100 Wood
                  Street,
                  London, EC2V 7EX as its agent for service of process in relation
                  to any
                  proceedings
                  before the English courts in connection with any Financing Document;
                  and

              

      

       

      
        	 	
                (b)

              	
                agrees
                  that failure by a process agent to notify the Borrower or the Guarantor
                  (as applicable)
                  of the process will not invalidate the proceedings
                  concerned.

              

      

       

      In
        witness whereof
        the Parties have caused this Agreement to be duly executed on the date set
        out
above.

       

      
        
          
          

        

        
          Page
            79

          
            

          

        

        
          
          

        

      

      Schedule
        1 - The Banks

       

      
        	Part A: Term Facility Banks
                	
              	 
	 	 	 
	Bank and Facility
                Office	
                Address
                  for Notices

              	
                Commitment

              
	 	 	 
	Investec Bank (UK) Limited
                (London)	
                2
                  Gresham Street 

                London
                  

                EC2V
                  7QP United Kingdom

              	US$105,000,000

      

       

      
        	
                Part
                  B: Hedging Banks 

              	
              	 
	 	 	 
	Bank and Office	
                
                  Address
                    for Notices

                

              	
              
	 	 	 
	
                Investec
                  Bank (UK) Limited (London)

              	
                
                  2
                    Gresham Street 

                  London
                    

                  EC2V
                    7QP United Kingdom

                

              	
              

      

       

      
        
          
          

        

        
          Page
            80

          
            

          

        

        
          
          

        

      

       

      Schedule
        2 - Part 1 - Conditions Precedent

       

      The
        Agent
        shall have received the items listed in the paragraphs 1 to 7 below in form
        and
        substance satisfactory to it or is satisfied that any conditions set out
        therein
        have been met.

       

      
        	1.	
                Delivery
                  of Corporate Documents

              

      

       

      
        	 	
                (a)

              	
                A
                  Certified Copy of the certificate of incorporation (and any relevant
                  certificate of incorporation on change of name) and constitutional
                  documents and by-laws of each Security
                  Company.

              

      

       

      
        	 	
                (b)

              	
                A
                  Certified Copy of each shareholder resolution and board minutes,
                  as
                  applicable, of each Security Company approving and authorising
                  the
                  execution, delivery and performance of each Financing Document
                  to which it
                  is a party on the terms and conditions of those documents and authorising
                  a person or persons to sign or otherwise
                  attest the due execution of those documents and any other documents
                  to be
                  executed
                  or delivered by it pursuant to those documents (including approval
                  by the
                  Guarantor's
                  and the Borrower's boards of directors of the Initial Development
                  Plan).

              

      

       

      
        	 	
                (c)

              	
                A
                  Certified Copy of each of the consents, licences, approvals or
                  authorisations of any governmental or other authority, bureau or
                  agency
                  required by each Security Company
                  party to the Financing Documents in connection with the execution,
                  delivery, performance,
                  validity or enforceability of the Financing Documents or any document
                  to
                  be delivered under the Financing
                  Documents.

              

      

       

      
        	
              	(d)	
                A
                  solvency certificate of each Security
                  Company.

              

      

       

      
        	 	
                (e)

              	
                A
                  certificate from the Borrower stating that there has been no material
                  adverse change in the condition of the Borrower or the Borrower's
                  Assets
                  since 31 December 2006.

              

      

       

      
        	 	
                (f)

              	
                A
                  secretary's certificate of the Guarantor relating to the corporate
                  structure of the Security
                  Companies.

              

      

       

      
        	 	
                (g)

              	
                A
                  secretary's certificate for each Security Company certifying the
                  corporate
                  documentation delivered under this paragraph 1, together with an
                  incumbency certificate for each Security
                  Company.

              

      

       

      
        	2.	
                Delivery
                  of original documentation

              

      

       

      
        	
              	(a)	
                An
                  original of each Financing
                  Document.

              

      

       

      
        	 	
                (b)

              	
                Evidence
                  that the agreed Approved Hedging Programme has been entered into,
                  any
                  amounts due and payable to the Hedging Banks thereunder have been
                  paid and
                  any Derivative Transactions required to be entered into on or before
                  the
                  first Advance to comply
                  with the terms thereof shall have been entered into. For the purposes
                  of
                  entering into the Approved Hedging Programme, the Borrower shall
                  be
                  required to satisfy
                  all other conditions precedent listed in this
                  Schedule.

              

      

       

      
        	
              	(c)	
                A
                  Certified Copy of the Subordinated Loan
                  Agreement.

              

      

       

      3. Financial
        conditions precedent

       

      
        	
              	(a)	
                Confirmation
                  that the Facility Accounts have been opened with the Account
                  Bank.

              

      

       

      
        	 	
                (b)

              	
                Evidence
                  that an amount equal to the Committed Equity less the Sunk Equity
                  has been
                  deposited into the Proceeds
                  Account.

              

      

       

      
        	
              	(c)	
                Evidence
                  that US$7,500,000 has been deposited into the Cost Overrun
                  Account.

              

      

      

      
        
          
          

        

        
          Page
            81

          
            

          

        

        
          
          

        

      

      
        	 	
                (d)

              	
                Confirmation
                  that all requirements under the Fees Letters have been met on or
                  before
                  the date of the first Advance, including irrevocable instructions
                  issued
                  by the Borrower to
                  the Agent to pay all amounts due and payable under the Fees Letters
                  out of
                  the proceeds
                  of the first Advance.

              

      

       

      
        	 	
                (e)

              	
                An
                  agreed Base Case Model to be held with the Agent on behalf of the
                  Banks
                  and the Hedging
                  Banks.

              

      

       

      
        	 	
                (f)

              	
                The
                  Initial Development Plan covering normal physical mining parameters,
                  mineral production
                  and the Agent being satisfied that the cashflow is substantially
                  the same
                  as or
                  higher than as that set out in the Feasibility Study. The Initial
                  Development Plan shall
                  include:

              

      

       

      
        	
              	(i)	
                the
                  Base Case Model (which shall be consistent with of the Initial
                  Development
                  Plan) showing (each as defined in the Base Case
                  Model):

              

      

       

      
        	
              	(aa)	
                the
                  Project Life Cover Ratio is greater than 2:0;

              

        	 	 	 

      

      
        
          	
                	(bb)	
                  the
                    Loan Life Cover Ratio is greater than 1.7:0;

                

          	 	 	 

        

      

      
        	
              	
                (cc)

              	
                the
                  forward looking Debt Service Cover Ratio is greater than 1.5:0;
                  

              

        	 	 	 

      

      
        	
              	(dd)	
                the
                  Reserve Tail is greater than 30 per cent; and

              

      

       

      
        
          
            	
                  	(ii)	
                    a draft Operating
                      Budget.

                  

          

        

      

       

      For
        the
        purposes of calculating the ratios set out in paragraph (i) above, it shall
        be
        assumed that the Facility is fully drawn during the Availability Period and
        that
        the first calculation date in respect of which calculation is made is the
        Target
        Completion Date or the Interest Date following such date.

       

      
        	 	
                (g)

              	
                All
                  reasonable out-of-pocket expenses due and owing to the Agent in
                  respect of
                  the third
                  party costs, including the reasonable fees and other charges of
                  Denton
                  Wilde Sapte
                  LLP as counsel for the Agent, shall have been paid, or the Agent
                  is
                  satisfied shall be paid, in full to the extent invoiced to the
                  Borrower on
                  or before the first Advance.

              

      

       

      
        	4.	
                Project
                  documentation and
                  authorisations

              

      

       

      
        	 	
                (a)

              	
                Certified
                  Copies of each Material Contract (other than those Material Contracts
                  referred
                  to in paragraph (f) of the definition of Material Contracts) duly
                  executed
                  and delivered
                  by each party thereto on terms and with parties in each case acceptable
                  to
                  the
                  Agent acting reasonably and confirmation that each has become
                  effective.

              

      

       

      
        	 	
                (b)

              	
                Evidence
                  that all conditions precedent in the Material Contracts (other
                  than those
                  Material Contracts referred to in paragraph (f) of the definition
                  of
                  Material Contracts) and the Mining Claims listed in Schedule 2,
                  Part 2
                  have been met in full or waived or a certificate of the Borrower
                  that
                  there are no such conditions
                  precedent.

              

      

       

      
        	 	
                (c)

              	
                Evidence
                  or a certificate that none of the Material Contracts (other than
                  those
                  Material Contracts referred to in paragraph (f) of the definition
                  of
                  Material Contracts) and/or the Mining
                  Claims are subject to any condition which would or might prevent
                  it (or
                  the rights or obligations of any party under it) from coming into
                  effect.

              

      

       

      
        	
              	(d)	
                Certified
                  Copies of all necessary Mining Claims set out in Schedule 2, Part
                  2.

              

      

       

      
        	 	
                (e)

              	
                Certified
                  Copies of the Permits listed in Schedule 10, Part A, together with
                  Certified Copies
                  of the Bonding/Reclamation Plans listed in Schedule 10, Part B,
                  paragraph
                  1.

              

      

       

      
        
          
          

        

        
          Page
            82

          
            

          

        

        
          
          

        

      

      
        	
              	(f)	
                Insurances:

              

      

       

      
        	
              	(i)	
                the
                  Agreed Insurance Programme in the agreed
                  form;

              

      

       

      
        	
              	(ii)	
                evidence
                  satisfactory to the Agent that the Insurances required to be in
                  full
                  force
                  and effect on or prior to the Effective Date pursuant to the Agreed
                  Insurance
                  Programme are in full force and effect and in accordance with the
                  terms
                  thereof, including evidence that the Financing Parties and Hedging
                  Banks
                  are included as insured parties on the relevant insurance
                  policies;

              

      

       

      
        	
              	(iii)	
                a
                  letter from the Borrower's brokers in form and substance satisfactory
                  to
                  the Agent;

              

      

       

      
        	
              	(iv)	
                evidence
                  satisfactory to the Banks' Insurance Adviser that adequate disclosure
                  has
                  been made to all the Insurers in respect of the
                  Insurances;

              

      

       

      
        	
              	(v)	
                a
                  report from the Banks' Insurance Adviser confirming that the Insurance
                  meets
                  the Banks' and Hedging Banks' requirements hereunder;
                  and

              

      

       

      
        	
              	(vi)	
                to
                  the extent that delay in start up insurance cover is not part of
                  the
                  Agreed Insurance Programme, confirmation from the Borrower that
                  there are
                  no material delays to the equipment delivery schedule for the Project
                  (such schedule in the form as at the date of this
                  Agreement).

              

      

       

      
        
          	5.	
                  Miscellaneous

                

        

      

       

      
        	 	
                (a)

              	
                The
                  Information Package (to extent not already provided elsewhere under
                  this
                  Schedule).

              

      

       

      
        	 	
                (b)

              	
                Evidence
                  of identification of certain authorised officers of the Borrower
                  including
                  certified copies of respective passports and other documentation
                  evidencing their permanent residential
                  addresses.

              

      

       

      
        	 	
                (c)

              	
                Written
                  waivers from the relevant counterparties in respect of all or any
                  negative
                  pledges and/or covenants binding on the Guarantor other than under
                  the
                  Financing Documents or a certificate from the Borrower that none
                  are
                  required.

              

      

       

      
        	 	
                (d)

              	
                Evidence
                  that the Project Team for the design and construction phase have
                  been
                  appointed and evidence of the delivery of the Borrower's plan for
                  the
                  Project Team for the operating phase, in each case satisfactory
                  to the
                  Agent (acting reasonably).

              

      

       

      
        	 	
                (e)

              	
                Evidence
                  that each of the Security Companies has appointed an agent for
                  the service
                  of
                  process in the jurisdiction of England and Wales under each Financing
                  Document expressed
                  to be governed by English law.

              

      

       

      
        	 	
                (f)

              	
                Reports
                  from the Model Auditor, the Independent Technical Consultant and
                  the
                  Banks' Insurance
                  Adviser.

              

      

       

      
        	 	
                (g)

              	
                Copies
                  of all documents and information required by Law for the Banks
                  to satisfy
                  their "know-your-customer"
                  requirements.

              

      

       

      
        	
              	(h)	
                Certified
                  Copies of the Reclamation Bonds.

              

      

       

      
        	
              	(i)	
                The
                  issue of legal opinions in satisfactory form relating to, amongst
                  other
                  things, each Security
                  Company party to the Security Documents and their obligations under
                  the
                  Financing
                  Documents to which they are a party and perfection of security
                  interests
                  granted thereunder issued by:

              

      

       

      
        	
              	(i)	
                Denton
                  Wilde Sapte LLP as to English law;

              

      

       

      
        
          
          

        

        
          Page
            83

          
            

          

        

        
          
          

        

      

       

      
        	
              	(ii)	
                DLA
                  Piper Rudnick Gray Carey US LLP as to the laws of California;

                (iii)
                  Givens Pursley LLP as to the laws of Idaho; and 

                (iv)
                  Lionel Sawyer & Collins as to the laws of
                  Nevada.

              

      

       

      
        	6.	
                Delivery
                  of Security Documents

              

      

       

      
        	 	
                (a)

              	
                All
                  notices of charge, if any, to be delivered pursuant to the Security
                  Documents, together with acknowledgements thereof have been delivered
                  and
                  acknowledgements received.

              

      

       

      
        	 	
                (b)

              	
                Delivery
                  of original share certificates, together with duly executed indorsement
                  certificates in the form of Exhibit A to the Pledge Agreement (or
                  other
                  instrument of transfer
                  or assignment in blank, in form and substance satisfactory to Security
                  Trustee)
                  to the Security Trustee in respect of those shares to be pledged
                  to the
                  Security
                  Trustee pursuant to the Pledge Agreement. A certified copy of an
                  extract
                  from the
                  share register in respect of the Borrower for the whole of the
                  issued
                  share capital of
                  the Borrower.

              

      

       

      
        	 	
                (c)

              	
                All
                  filings, registrations and recordings required for the validity,
                  enforceability or priority of
                  the Financing Documents have been made or the Agent is satisfied
                  will be
                  made, within
                  the required time limit (if any).

              

      

       

      
        	 	
                (d)

              	
                Acknowledgements
                  to the Agent of notice of security over the Facility Accounts from
                  the
                  Account Bank as appropriate in the required form (except insofar
                  as
                  contained in the Account Control
                  Agreement).

              

      

       

      
        	7.	
                Completion

              

      

       

      The
        Completion Test in the agreed form.

       

      
        
          
          

        

        
          Page
            84

          
            

          

        

        
          
          

        

      

       

      Schedule
        2 - Part 2 - Mining Claims

       

      Unpatented
        Mining and Millsite Claims Owned by Western Mesquite Mines,
        Inc.

       

      The
        following-described mining and millsite claims located within Section 12,
        Township 13 South, Range 18 East, and Sections 2-11 and 15, Township 13 South,
        Range 19 East, SBB&M, Imperial County,
        California:

      

        
          	 	 	 	 	
                   Notice
                    of Location and Last Amended Notice of Location Recorded in Official
                    Records of Imperial County, California

                	 
	 	 	 	 	
                  Original

                	 	
                  Amended

                	 
	
                  Name
                    of Claim

                	 	
                  BLM
                    Serial No. (CAMC)

                	 	
                  Book

                	 	
                  Pages

                	 	
                  Book

                	 	
                  Pages

                	 
	
                  MESQ
                    7 

                	 	 	
                  94380
                    

                	 	 	
                  1473
                    

                	 	 	
                  177
                    

                	 	 	
                  1590
                    

                	 	 	
                  628-29
                    

                	 
	
                  MESQ
                    8 

                	 	 	
                  94381
                    

                	 	 	
                  1473
                    

                	 	 	
                  178
                    

                	 	 	
                  1506
                    

                	 	 	
                  572-74
                    

                	 
	
                  MESQ
                    9 

                	 	 	
                  94382
                    

                	 	 	
                  1473
                    

                	 	 	
                  179
                    

                	 	 	
                  1590
                    

                	 	 	
                  630-31
                    

                	 
	
                  MESQ
                    31 

                	 	 	
                  108987
                    

                	 	 	
                  1483
                    

                	 	 	
                  1092
                    

                	 	 	
                  1506
                    

                	 	 	
                  578-79
                    

                	 
	
                  MESQ
                    42 

                	 	 	
                  108998
                    

                	 	 	
                  1483
                    

                	 	 	
                  1094
                    

                	 	 	 	 	 	 	 
	
                  MESQ
                    43 

                	 	 	
                  108999
                    

                	 	 	
                  1483
                    

                	 	 	
                  1095
                    

                	 	 	 	 	 	 	 
	
                  MESQ
                    44 

                	 	 	
                  109000
                    

                	 	 	
                  1483
                    

                	 	 	
                  1096
                    

                	 	 	 	 	 	 	 
	
                  MESQ
                    46 

                	 	 	
                  115872
                    

                	 	 	
                  1491
                    

                	 	 	
                  197
                    

                	 	 	
                  1495
                    

                	 	 	
                  1311-13
                    

                	 
	
                  MESQ
                    50 

                	 	 	
                  121208
                    

                	 	 	
                  1495
                    

                	 	 	
                  32
                    

                	 	 	
                  1506
                    

                	 	 	
                  607-08
                    

                	 
	
                  MESQ
                    51 

                	 	 	
                  121209
                    

                	 	 	
                  1495
                    

                	 	 	
                  33
                    

                	 	 	
                  1506
                    

                	 	 	
                  609-10
                    

                	 
	
                  MESQ
                    52 

                	 	 	
                  121210
                    

                	 	 	
                  1495
                    

                	 	 	
                  34
                    

                	 	 	
                  1506
                    

                	 	 	
                  611-12
                    

                	 
	
                  MESQ
                    53 

                	 	 	
                  121211
                    

                	 	 	
                  1495
                    

                	 	 	
                  35
                    

                	 	 	
                  1506
                    

                	 	 	
                  613-14
                    

                	 
	
                  SEA
                    9 

                	 	 	
                  121212
                    

                	 	 	
                  1495
                    

                	 	 	
                  36
                    

                	 	 	
                  1506
                    

                	 	 	
                  629-30
                    

                	 
	
                  SEA
                    18 

                	 	 	
                  105163
                    

                	 	 	
                  1479
                    

                	 	 	
                  1260
                    

                	 	 	
                  1506
                    

                	 	 	
                  637-38
                    

                	 
	
                  SEA
                    19 

                	 	 	
                  105164
                    

                	 	 	
                  1479
                    

                	 	 	
                  1261
                    

                	 	 	
                  1506
                    

                	 	 	
                  639-40
                    

                	 
	
                  SEA
                    20 

                	 	 	
                  105165
                    

                	 	 	
                  1479
                    

                	 	 	
                  1262
                    

                	 	 	
                  1506
                    

                	 	 	
                  641-42
                    

                	 
	
                  SEA
                    29 

                	 	 	
                  105166
                    

                	 	 	
                  1479
                    

                	 	 	
                  1263
                    

                	 	 	
                  1506
                    

                	 	 	
                  643-44
                    

                	 
	
                  SEA
                    30 

                	 	 	
                  105167
                    

                	 	 	
                  479
                    

                	 	 	
                  1264
                    

                	 	 	
                  1506
                    

                	 	 	
                  645-46
                    

                	 
	
                  SEA
                    31 

                	 	 	
                  105168
                    

                	 	 	
                  1479
                    

                	 	 	
                  1265
                    

                	 	 	
                  1506
                    

                	 	 	
                  647-48
                    

                	 
	
                  SEA
                    32 

                	 	 	
                  105169
                    

                	 	 	
                  1479
                    

                	 	 	
                  1266
                    

                	 	 	
                  1506
                    

                	 	 	
                  649-50
                    

                	 
	
                  SEA
                    33 

                	 	 	
                  105170
                    

                	 	 	
                  1479
                    

                	 	 	
                  1267
                    

                	 	 	
                  1506
                    

                	 	 	
                  651-52
                    

                	 
	
                  SEA
                    34 

                	 	 	
                  105171
                    

                	 	 	
                  1479
                    

                	 	 	
                  1268
                    

                	 	 	
                  1506
                    

                	 	 	
                  653-54
                    

                	 
	
                  SEA
                    35 

                	 	 	
                  105172
                    

                	 	 	
                  1479
                    

                	 	 	
                  1269
                    

                	 	 	
                  1506
                    

                	 	 	
                  655-56
                    

                	 
	
                  SEA
                    36 

                	 	 	
                  105173
                    

                	 	 	
                  1479
                    

                	 	 	
                  1270
                    

                	 	 	
                  1506
                    

                	 	 	
                  657-58
                    

                	 
	
                  SEA
                    37 

                	 	 	
                  105174
                    

                	 	 	
                  1479
                    

                	 	 	
                  1271
                    

                	 	 	
                  1506
                    

                	 	 	
                  659-60
                    

                	 
	
                  SEA
                    38 

                	 	 	
                  105175
                    

                	 	 	
                  1479
                    

                	 	 	
                  1272
                    

                	 	 	
                  1506
                    

                	 	 	
                  661-62
                    

                	 
	
                  SEA
                    40 

                	 	 	
                  105177
                    

                	 	 	
                  1479
                    

                	 	 	
                  1274
                    

                	 	 	
                  1506
                    

                	 	 	
                  663-64
                    

                	 
	
                  SEA
                    43 

                	 	 	
                  105180
                    

                	 	 	
                  1479
                    

                	 	 	
                  1277
                    

                	 	 	
                  1506
                    

                	 	 	
                  665-66
                    

                	 
	
                  SEA
                    44 

                	 	 	
                  105181
                    

                	 	 	
                  1479
                    

                	 	 	
                  1278
                    

                	 	 	
                  1506
                    

                	 	 	
                  667-68
                    

                	 
	
                  SEA
                    45 

                	 	 	
                  105182
                    

                	 	 	
                  1479
                    

                	 	 	
                  1279
                    

                	 	 	
                  1506
                    

                	 	 	
                  669-70
                    

                	 
	
                  SEA
                    46 

                	 	 	
                  105183
                    

                	 	 	
                  1479
                    

                	 	 	
                  1280
                    

                	 	 	
                  1506
                    

                	 	 	
                  671-72
                    

                	 
	
                  SEA
                    47 

                	 	 	
                  105184
                    

                	 	 	
                  1479
                    

                	 	 	
                  1281
                    

                	 	 	
                  1506
                    

                	 	 	
                  673-74
                    

                	 
	
                  SEA
                    48 

                	 	 	
                  105185
                    

                	 	 	
                  1479
                    

                	 	 	
                  1282
                    

                	 	 	
                  1506
                    

                	 	 	
                  675-76
                    

                	 
	
                  SEA
                    49 

                	 	 	
                  105186
                    

                	 	 	
                  1479
                    

                	 	 	
                  1283
                    

                	 	 	
                  1506
                    

                	 	 	
                  677-78
                    

                	 
	
                  SEA
                    56 

                	 	 	
                  105187
                    

                	 	 	
                  1479
                    

                	 	 	
                  1284
                    

                	 	 	
                  1506
                    

                	 	 	
                  679-80
                    

                	 

        

      

      
         

        
          
            
            

          

          
            Page
              85

            
              

            

          

          
            
            

          

        

      

       

      
        
          	 	 	 	 	
                  Notice
                    of Location and Last Amended Notice of Location Recorded in Official
                    Records of Imperial County, California

                	 
	 	 	 	 	
                  Original

                	 	
                  Amended

                	 
	
                  Name
                    of Claim

                	 	
                  BLM
                    Serial No. (CAMC)

                	 	
                  Book

                	 	
                  Pages

                	 	
                  Book

                	 	
                  Pages

                	 
	
                  SEA
                    58 

                	 	 	
                  105189
                    

                	 	 	
                  1479
                    

                	 	 	
                  1286
                    

                	 	 	
                  1506
                    

                	 	 	
                  681-82
                    

                	 
	
                  SEA
                    60 

                	 	 	
                  105191
                    

                	 	 	
                  1479
                    

                	 	 	
                  1288
                    

                	 	 	
                  1506
                    

                	 	 	
                  683-84
                    

                	 
	
                  SEA
                    61 

                	 	 	
                  105192
                    

                	 	 	
                  1479
                    

                	 	 	
                  1289
                    

                	 	 	
                  1506
                    

                	 	 	
                  685-86
                    

                	 
	
                  SEA
                    89 

                	 	 	
                  105220
                    

                	 	 	
                  1479
                    

                	 	 	
                  1317
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    98 

                	 	 	
                  105229
                    

                	 	 	
                  1479
                    

                	 	 	
                  1326
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    107 

                	 	 	
                  105238
                    

                	 	 	
                  1479
                    

                	 	 	
                  1335
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    121 

                	 	 	
                  105247
                    

                	 	 	
                  1479
                    

                	 	 	
                  1344
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    123 

                	 	 	
                  105249
                    

                	 	 	
                  1479
                    

                	 	 	
                  1346
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    125 

                	 	 	
                  105251
                    

                	 	 	
                  1479
                    

                	 	 	
                  1348
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    127 

                	 	 	
                  105253
                    

                	 	 	
                  1479
                    

                	 	 	
                  1350
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    129 

                	 	 	 	 	 	
                  105255
                    

                	 	 	
                  1479
                    

                	 	 	
                  1352
                    

                	 	 	 	 
	
                  SEA
                    131 

                	 	 	
                  105257
                    

                	 	 	
                  1479
                    

                	 	 	
                  1354
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    133 

                	 	 	
                  105259
                    

                	 	 	
                  1479
                    

                	 	 	
                  1356
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    135 

                	 	 	
                  105261
                    

                	 	 	
                  1479
                    

                	 	 	
                  1358
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    137 

                	 	 	
                  105263
                    

                	 	 	
                  1479
                    

                	 	 	
                  1360
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    139 

                	 	 	
                  105265
                    

                	 	 	
                  1479
                    

                	 	 	
                  1362
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    141 

                	 	 	
                  105267
                    

                	 	 	
                  1479
                    

                	 	 	
                  1364
                    

                	 	 	 	 	 	 	 
	
                  SEA
                    327 

                	 	 	
                  109895
                    

                	 	 	
                  1482
                    

                	 	 	
                  1160
                    

                	 	 	
                  1506
                    

                	 	 	
                  703-04
                    

                	 
	
                  SEA
                    328 

                	 	 	
                  109896
                    

                	 	 	
                  1482
                    

                	 	 	
                  1161
                    

                	 	 	
                  1506
                    

                	 	 	
                  705-06
                    

                	 
	
                  SEA
                    330 

                	 	 	
                  109898
                    

                	 	 	
                  1482
                    

                	 	 	
                  1163
                    

                	 	 	
                  1506
                    

                	 	 	
                  707-08
                    

                	 
	
                  SEA
                    332 

                	 	 	
                  109900
                    

                	 	 	
                  1482
                    

                	 	 	
                  1165
                    

                	 	 	
                  1506
                    

                	 	 	
                  709-10
                    

                	 
	
                  SEA
                    336 

                	 	 	
                  109904
                    

                	 	 	
                  1482
                    

                	 	 	
                  1169
                    

                	 	 	
                  1506
                    

                	 	 	
                  711-12
                    

                	 
	
                  SEA
                    339 

                	 	 	
                  109907
                    

                	 	 	
                  1482
                    

                	 	 	
                  1172
                    

                	 	 	
                  1506
                    

                	 	 	
                  715-16
                    

                	 
	
                  SEA
                    340 

                	 	 	
                  109908
                    

                	 	 	
                  1482
                    

                	 	 	
                  1173
                    

                	 	 	
                  1506
                    

                	 	 	
                  717-18
                    

                	 
	
                  SEA
                    746 

                	 	 	
                  121213
                    

                	 	 	
                  1495
                    

                	 	 	
                  37
                    

                	 	 	
                  1506
                    

                	 	 	
                  721-22
                    

                	 
	
                  SEA
                    747 

                	 	 	
                  121214
                    

                	 	 	
                  1495
                    

                	 	 	
                  38
                    

                	 	 	
                  1506
                    

                	 	 	
                  723-24
                    

                	 
	
                  SEA
                    748 

                	 	 	
                  121215
                    

                	 	 	
                  1495
                    

                	 	 	
                  39
                    

                	 	 	
                  1506
                    

                	 	 	
                  725-26
                    

                	 
	
                  SEA
                    759 

                	 	 	
                  121217
                    

                	 	 	
                  1495
                    

                	 	 	
                  41
                    

                	 	 	
                  1506
                    

                	 	 	
                  727-28
                    

                	 
	
                  SEA
                    760 

                	 	 	
                  121218
                    

                	 	 	
                  1495
                    

                	 	 	
                  42
                    

                	 	 	
                  1506
                    

                	 	 	
                  729-30
                    

                	 
	
                  SEA
                    761 

                	 	 	
                  121219
                    

                	 	 	
                  1495
                    

                	 	 	
                  43
                    

                	 	 	
                  1506
                    

                	 	 	
                  731-32
                    

                	 
	
                  SEA
                    762 

                	 	 	
                  121220
                    

                	 	 	
                  1495
                    

                	 	 	
                  44
                    

                	 	 	
                  1506
                    

                	 	 	
                  733-34
                    

                	 
	
                  SEA
                    763 

                	 	 	
                  121221
                    

                	 	 	
                  1495
                    

                	 	 	
                  45
                    

                	 	 	
                  1506
                    

                	 	 	
                  735-36
                    

                	 
	
                  SEA
                    764 

                	 	 	
                  121222
                    

                	 	 	
                  1495
                    

                	 	 	
                  46
                    

                	 	 	
                  1506
                    

                	 	 	
                  737-38
                    

                	 
	
                  SEA
                    765 

                	 	 	
                  121223
                    

                	 	 	
                  1495
                    

                	 	 	
                  47
                    

                	 	 	
                  1506
                    

                	 	 	
                  739-40
                    

                	 
	
                  SEA
                    766 

                	 	 	
                  121224
                    

                	 	 	
                  1495
                    

                	 	 	
                  48
                    

                	 	 	
                  1506
                    

                	 	 	
                  741-42
                    

                	 
	
                  SEA
                    767 

                	 	 	
                  121225
                    

                	 	 	
                  1495
                    

                	 	 	
                  49
                    

                	 	 	
                  1506
                    

                	 	 	
                  743-44
                    

                	 
	
                  SEA
                    768 

                	 	 	
                  121226
                    

                	 	 	
                  1495
                    

                	 	 	
                  50
                    

                	 	 	
                  1506
                    

                	 	 	
                  745-46
                    

                	 
	
                  SEA
                    769 

                	 	 	
                  121227
                    

                	 	 	
                  1495
                    

                	 	 	
                  51
                    

                	 	 	
                  1506
                    

                	 	 	
                  747-48
                    

                	 
	
                  SEA
                    770 

                	 	 	
                  121228
                    

                	 	 	
                  1495
                    

                	 	 	
                  52
                    

                	 	 	
                  1506
                    

                	 	 	
                  1467-68
                    

                	 
	
                  SEA
                    773 

                	 	 	
                  121229
                    

                	 	 	
                  1495
                    

                	 	 	
                  53
                    

                	 	 	
                  1506
                    

                	 	 	
                  749-50
                    

                	 
	
                  SEA
                    774 

                	 	 	
                  121230
                    

                	 	 	
                  1495
                    

                	 	 	
                  54
                    

                	 	 	
                  1506
                    

                	 	 	
                  751-52
                    

                	 
	
                  DTL
                    1 

                	 	 	
                  238260
                    

                	 	 	
                  1655
                    

                	 	 	
                  797
                    

                	 	 	 	 	 	 	 
	
                  LUCKY
                    STRIKE 1 

                	 	 	
                  94401
                    

                	 	 	
                  1473
                    

                	 	 	
                  198
                    

                	 	 	
                  1492
                    

                	 	 	
                  1294-95
                    

                	 
	
                  LUCKY
                    STRIKE 2 

                	 	 	
                  109012
                    

                	 	 	
                  1483
                    

                	 	 	
                  1079
                    

                	 	 	
                  1492
                    

                	 	 	
                  1296-97
                    

                	 
	
                  BIG
                    BROTHER 2 

                	 	 	
                  24626
                    

                	 	 	
                  1178
                    

                	 	 	
                  546
                    

                	 	 	
                  1590
                    

                	 	 	
                  624-25
                    

                	 

        

      

       

      
        
          
          

        

        
          Page
            86

          
            

          

        

        
          
          

        

      

      

        
          	 	 	 	 	
                  Notice
                    of Location and Last Amended Notice of Location Recorded in Official
                    Records of Imperial County, California

                	 
	 	 	 	 	
                  Original

                	 	
                  Amended

                	 
	
                  Name
                    of Claim

                	 	
                  BLM
                    Serial No. (CAMC)

                	 	
                  Book

                	 	
                  Pages

                	 	
                  Book

                	 	
                  Pages

                	 
	
                  BUDDY
                    5 

                	 	 	
                  24633
                    

                	 	 	
                  1278
                    

                	 	 	
                  788
                    

                	 	 	
                  1492
                    

                	 	 	
                  1265-66
                    

                	 
	
                  BUDDY
                    6 

                	 	 	
                  24634
                    

                	 	 	
                  1373
                    

                	 	 	
                  739
                    

                	 	 	
                  1492
                    

                	 	 	
                  1267-68
                    

                	 
	
                  BUDDY
                    7 

                	 	 	
                  24635
                    

                	 	 	
                  1373
                    

                	 	 	
                  740
                    

                	 	 	
                  1492
                    

                	 	 	
                  1269-71
                    

                	 
	
                  BUDDY
                    11 

                	 	 	
                  24639
                    

                	 	 	
                  1373
                    

                	 	 	
                  744
                    

                	 	 	
                  1492
                    

                	 	 	
                  1279-81
                    

                	 
	
                  GOLD
                    BUG 1 

                	 	 	
                  32398
                    

                	 	 	
                  1100
                    

                	 	 	
                  22
                    

                	 	 	
                  1492
                    

                	 	 	
                  1474-75
                    

                	 
	
                  GOLD
                    BUG 2 

                	 	 	
                  32399
                    

                	 	 	
                  1100
                    

                	 	 	
                  24
                    

                	 	 	
                  1492
                    

                	 	 	
                  1476-77
                    

                	 
	
                  GOLD
                    BUG 3 

                	 	 	
                  32400
                    

                	 	 	
                  1100
                    

                	 	 	
                  321
                    

                	 	 	
                  1492
                    

                	 	 	
                  1478-79
                    

                	 
	
                  GOLD
                    BUG 6 

                	 	 	
                  32403
                    

                	 	 	
                  1195
                    

                	 	 	
                  384
                    

                	 	 	
                  1492
                    

                	 	 	
                  1486-88
                    

                	 
	
                  GOLD
                    BUG 8 

                	 	 	
                  32405
                    

                	 	 	
                  1101
                    

                	 	 	
                  296
                    

                	 	 	
                  1492
                    

                	 	 	
                  1489-91
                    

                	 
	
                  GOLD
                    BUG 9 

                	 	 	
                  32406
                    

                	 	 	
                  1100
                    

                	 	 	
                  321
                    

                	 	 	
                  1492
                    

                	 	 	
                  1492-93
                    

                	 
	
                  GOLD
                    BUG 10 

                	 	 	
                  32407
                    

                	 	 	
                  1208
                    

                	 	 	
                  768
                    

                	 	 	
                  1492
                    

                	 	 	
                  1494-95
                    

                	 
	
                  GOLD
                    BUG 11 

                	 	 	
                  32408
                    

                	 	 	
                  1208
                    

                	 	 	
                  768
                    

                	 	 	
                  1492
                    

                	 	 	
                  1496-98
                    

                	 
	
                  GOLD
                    BUG 12 

                	 	 	
                  32409
                    

                	 	 	
                  1101
                    

                	 	 	
                  296
                    

                	 	 	
                  1493
                    

                	 	 	
                  352-53
                    

                	 
	
                  GOLD
                    BUG 13 

                	 	 	
                  32410
                    

                	 	 	
                  1101
                    

                	 	 	
                  296
                    

                	 	 	
                  1493
                    

                	 	 	
                  350-51
                    

                	 
	
                  GOLD
                    BUG 14 

                	 	 	
                  32411
                    

                	 	 	
                  1208
                    

                	 	 	
                  768
                    

                	 	 	
                  1492
                    

                	 	 	
                  1499-1500
                    

                	 
	
                  GOLD
                    BUG 15 

                	 	 	
                  32412
                    

                	 	 	
                  1208
                    

                	 	 	
                  768
                    

                	 	 	
                  1492
                    

                	 	 	
                  1501-03
                    

                	 
	
                  GOLD
                    BUG 16 

                	 	 	
                  32413
                    

                	 	 	
                  1215
                    

                	 	 	
                  211
                    

                	 	 	
                  1492
                    

                	 	 	
                  1504-05
                    

                	 
	
                  GOLD
                    BUG 17 

                	 	 	
                  32414
                    

                	 	 	
                  1219
                    

                	 	 	
                  416
                    

                	 	 	
                  1493
                    

                	 	 	
                  348-49
                    

                	 
	
                  GOLD
                    BUG 18 

                	 	 	
                  32415
                    

                	 	 	
                  1208
                    

                	 	 	
                  769
                    

                	 	 	
                  1492
                    

                	 	 	
                  1506-07
                    

                	 
	
                  GOLD
                    BUG 19 

                	 	 	
                  32416
                    

                	 	 	
                  1215
                    

                	 	 	
                  211
                    

                	 	 	
                  1492
                    

                	 	 	
                  1508-10
                    

                	 
	
                  GOLD
                    BUG 20 

                	 	 	
                  32417
                    

                	 	 	
                  1219
                    

                	 	 	
                  803
                    

                	 	 	
                  1492
                    

                	 	 	
                  1511-12
                    

                	 
	
                  GOLD
                    BUG 21 

                	 	 	
                  32418
                    

                	 	 	
                  1221
                    

                	 	 	
                  69
                    

                	 	 	
                  1492
                    

                	 	 	
                  1513-15
                    

                	 
	
                  GOLD
                    BUG 22 

                	 	 	
                  32419
                    

                	 	 	
                  1221
                    

                	 	 	
                  69
                    

                	 	 	
                  1492
                    

                	 	 	
                  1516-18
                    

                	 
	
                  GOLD
                    BUG 23 

                	 	 	
                  32420
                    

                	 	 	
                  1257
                    

                	 	 	
                  327
                    

                	 	 	
                  1492
                    

                	 	 	
                  1519-21
                    

                	 
	
                  GOLD
                    BUG 25 

                	 	 	
                  32422
                    

                	 	 	
                  1368
                    

                	 	 	
                  1736
                    

                	 	 	
                  1493
                    

                	 	 	
                  404-05
                    

                	 
	
                  GOLD
                    BUG 26 

                	 	 	
                  32423
                    

                	 	 	
                  1368
                    

                	 	 	
                  1737
                    

                	 	 	
                  1492
                    

                	 	 	
                  1524-26
                    

                	 
	
                  GOLD
                    BUG 27 

                	 	 	
                  109176
                    

                	 	 	
                  1483
                    

                	 	 	
                  1445
                    

                	 	 	
                  1492
                    

                	 	 	
                  1527-29
                    

                	 
	
                  GOLD
                    BUG 28 

                	 	 	
                  109005
                    

                	 	 	
                  1483
                    

                	 	 	
                  1085
                    

                	 	 	
                  1492
                    

                	 	 	
                  1530-32
                    

                	 
	
                  KEYSTONE
                    1 

                	 	 	
                  28623
                    

                	 	 	
                  1265
                    

                	 	 	
                  741
                    

                	 	 	
                  1492
                    

                	 	 	
                  1468-71
                    

                	 
	
                  KEYSTONE
                    2 

                	 	 	
                  109009
                    

                	 	 	
                  1483
                    

                	 	 	
                  1088
                    

                	 	 	
                  1492
                    

                	 	 	
                  1472-73
                    

                	 
	
                  GCB
                    

                	 	 	
                  17811
                    

                	 	 	
                  1423
                    

                	 	 	
                  1311
                    

                	 	 	
                  1590
                    

                	 	 	
                  620-21
                    

                	 
	
                  GCC
                    

                	 	 	
                  17812
                    

                	 	 	
                  1423
                    

                	 	 	
                  1312
                    

                	 	 	
                  1492
                    

                	 	 	
                  1228-30
                    

                	 
	
                  BEARCAT
                    

                	 	 	
                  42165
                    

                	 	 	
                  1216
                    

                	 	 	
                  926
                    

                	 	 	
                  1495
                    

                	 	 	
                  89-91
                    

                	 
	
                  BU
                    BU 1 

                	 	 	
                  42164
                    

                	 	 	
                  1101
                    

                	 	 	
                  550
                    

                	 	 	
                  1492
                    

                	 	 	
                  1400-01
                    

                	 
	
                  BU
                    BU 3 

                	 	 	
                  109003
                    

                	 	 	
                  1483
                    

                	 	 	
                  1083
                    

                	 	 	
                  1492
                    

                	 	 	
                  1411-13
                    

                	 
	
                  BLACK
                    IRON 1 

                	 	 	
                  32876
                    

                	 	 	
                  1273
                    

                	 	 	
                  827
                    

                	 	 	
                  1493
                    

                	 	 	
                  1103-05
                    

                	 
	
                  ZACKERY
                    2 

                	 	 	
                  32887
                    

                	 	 	
                  1344
                    

                	 	 	
                  261
                    

                	 	 	
                  1506
                    

                	 	 	
                  555-56
                    

                	 
	
                  CINDY
                    LYNN 

                	 	 	
                  52728
                    

                	 	 	
                  1364
                    

                	 	 	
                  278
                    

                	 	 	
                  1506
                    

                	 	 	
                  793-94
                    

                	 
	 	 	 	 	 	 	
                  1446
                    

                	 	 	
                  260
                    

                	 	 	 	 	 	 	 
	
                  RIBBIT
                    

                	 	 	
                  111065
                    

                	 	 	
                  1484
                    

                	 	 	
                  871
                    

                	 	 	
                  1506
                    

                	 	 	
                  791-92
                    

                	 
	
                  BLACK
                    CAT 1 

                	 	 	
                  63547
                    

                	 	 	
                  1364
                    

                	 	 	
                  285
                    

                	 	 	
                  1506
                    

                	 	 	
                  763-64
                    

                	 
	 	 	 	 	 	 	
                  1446
                    

                	 	 	
                  256
                    

                	 	 	 	 	 	 	 
	
                  BLACK
                    CAT 2 

                	 	 	
                  63548
                    

                	 	 	
                  1364
                    

                	 	 	
                  286
                    

                	 	 	
                  1506
                    

                	 	 	
                  765-66
                    

                	 
	 	 	 	 	 	 	
                  1446
                    

                	 	 	
                  258
                    

                	 	 	 	 	 	 	 

        

      

       

      
        
          
          

        

        
          Page
            87

          
            

          

        

        
          
          

        

      

    

     

    

      
        	 	 	 	 	
                Notice
                  of Location and Last Amended Notice of Location Recorded in Official
                  Records of Imperial County, California

              	 
	 	 	 	 	
                Original

              	 	
                Amended

              	 
	
                Name
                  of Claim

              	 	
                BLM
                  Serial No. (CAMC)

              	 	
                Book

              	 	
                Pages

              	 	
                Book

              	 	
                Pages

              	 
	
                BLACK
                  CAT 3 

              	 	 	
                64791
                  

              	 	 	
                1364
                  

              	 	 	
                287
                  

              	 	 	
                1506
                  

              	 	 	
                767-68
                  

              	 
	 	 	 	 	 	 	
                1448
                  

              	 	 	
                180
                  

              	 	 	 	 	 	 	 
	
                BLACK
                  CAT 4 

              	 	 	
                64792
                  

              	 	 	
                1364
                  

              	 	 	
                288
                  

              	 	 	
                1506
                  

              	 	 	
                769-70
                  

              	 
	 	 	 	 	 	 	
                1448
                  

              	 	 	
                181
                  

              	 	 	 	 	 	 	 
	
                BLACK
                  CAT 5 

              	 	 	
                64793
                  

              	 	 	
                1364
                  

              	 	 	
                289
                  

              	 	 	
                1506
                  

              	 	 	
                771-72
                  

              	 
	 	 	 	 	 	 	
                1448
                  

              	 	 	
                182
                  

              	 	 	 	 	 	 	 
	
                LITTLE
                  JOHN 1 

              	 	 	
                52720
                  

              	 	 	
                1364
                  

              	 	 	
                279
                  

              	 	 	
                1506
                  

              	 	 	
                773-74
                  

              	 
	
                LITTLE
                  JOHN 2 

              	 	 	
                111060
                  

              	 	 	
                1484
                  

              	 	 	
                881
                  

              	 	 	
                1506
                  

              	 	 	
                775-76
                  

              	 
	
                LITTLE
                  JOHN 3 

              	 	 	
                111061
                  

              	 	 	
                1484
                  

              	 	 	
                879
                  

              	 	 	
                1506
                  

              	 	 	
                777-78
                  

              	 
	
                LITTLE
                  JOHN 4 

              	 	 	
                52724
                  

              	 	 	
                1364
                  

              	 	 	
                712
                  

              	 	 	
                1506
                  

              	 	 	
                779-80
                  

              	 
	
                LITTLE
                  JOHN 5 

              	 	 	
                111062
                  

              	 	 	
                1484
                  

              	 	 	
                877
                  

              	 	 	
                1506
                  

              	 	 	
                781-82
                  

              	 
	
                LITTLE
                  JOHN 6 

              	 	 	
                64794
                  

              	 	 	
                1448
                  

              	 	 	
                913
                  

              	 	 	
                1506
                  

              	 	 	
                783-84
                  

              	 
	
                LITTLE
                  JOHN 7 

              	 	 	
                64795
                  

              	 	 	
                1448
                  

              	 	 	
                914
                  

              	 	 	
                1506
                  

              	 	 	
                785-86
                  

              	 
	
                LITTLE
                  JOHN 8 

              	 	 	
                64796
                  

              	 	 	
                1448
                  

              	 	 	
                915
                  

              	 	 	
                1506
                  

              	 	 	
                787-88
                  

              	 
	
                LITTLE
                  JOHN 9 

              	 	 	
                111063
                  

              	 	 	
                1484
                  

              	 	 	
                875
                  

              	 	 	
                1506
                  

              	 	 	
                789-90
                  

              	 
	
                LITTLE
                  JOHN 10 

              	 	 	
                135917
                  

              	 	 	
                1510
                  

              	 	 	
                1128
                  

              	 	 	 	 	 	 	 
	
                HIDDEN
                  GOLD 1 

              	 	 	
                65546
                  

              	 	 	
                1448
                  

              	 	 	
                1344
                  

              	 	 	
                1506
                  

              	 	 	
                843-45
                  

              	 
	
                HIDDEN
                  GOLD 2 

              	 	 	
                65547
                  

              	 	 	
                1448
                  

              	 	 	
                1345
                  

              	 	 	
                1506
                  

              	 	 	
                846-48
                  

              	 
	
                LADY
                  BE GOOD 

              	 	 	
                43085
                  

              	 	 	
                522
                  

              	 	 	
                399
                  

              	 	 	
                1577
                  

              	 	 	
                1791-92
                  

              	 
	
                AUTOMATIC
                  

              	 	 	
                52736
                  

              	 	 	
                1362
                  

              	 	 	
                1096
                  

              	 	 	
                1506
                  

              	 	 	
                833-34
                  

              	 
	
                PI
                  

              	 	 	
                108134
                  

              	 	 	
                1481
                  

              	 	 	
                88
                  

              	 	 	
                1521
                  

              	 	 	
                332-33
                  

              	 
	
                DONNIES
                  HOPE 2 

              	 	 	
                92559
                  

              	 	 	
                1471
                  

              	 	 	
                1719
                  

              	 	 	
                1506
                  

              	 	 	
                755-58
                  

              	 
	
                CHEROKEE
                  2 

              	 	 	
                26094
                  

              	 	 	
                1325
                  

              	 	 	
                390
                  

              	 	 	
                1492
                  

              	 	 	
                1418-19
                  

              	 
	
                CHEROKEE
                  3 

              	 	 	
                29102
                  

              	 	 	
                1436
                  

              	 	 	
                388
                  

              	 	 	
                1492
                  

              	 	 	
                1420-21
                  

              	 
	
                CHEROKEE
                  4 

              	 	 	
                45364
                  

              	 	 	
                1438
                  

              	 	 	
                1207
                  

              	 	 	
                1492
                  

              	 	 	
                1422-24
                  

              	 
	
                CHEROKEE
                  5 

              	 	 	
                58590
                  

              	 	 	
                1442
                  

              	 	 	
                1106
                  

              	 	 	
                1492
                  

              	 	 	
                1425-27
                  

              	 
	
                PAY
                  DIRT 11 

              	 	 	
                15536
                  

              	 	 	
                1419
                  

              	 	 	
                21
                  

              	 	 	
                1492
                  

              	 	 	
                1431-34
                  

              	 
	
                PAY
                  DIRT 13 

              	 	 	
                15538
                  

              	 	 	
                1419
                  

              	 	 	
                23
                  

              	 	 	
                1492
                  

              	 	 	
                1435-37
                  

              	 
	
                PAY
                  DIRT 15 

              	 	 	
                15540
                  

              	 	 	
                1419
                  

              	 	 	
                25
                  

              	 	 	
                1492
                  

              	 	 	
                1438-40
                  

              	 
	
                PAY
                  DIRT 16 

              	 	 	
                15541
                  

              	 	 	
                1419
                  

              	 	 	
                26
                  

              	 	 	
                1492
                  

              	 	 	
                1441-43
                  

              	 
	
                PAY
                  DIRT 17 

              	 	 	
                109013
                  

              	 	 	
                1483
                  

              	 	 	
                1081
                  

              	 	 	
                1492
                  

              	 	 	
                1444-46
                  

              	 
	
                THELMA
                  L. 1 

              	 	 	
                37971
                  

              	 	 	
                1438
                  

              	 	 	
                1208
                  

              	 	 	
                1492
                  

              	 	 	
                1447-48
                  

              	 
	
                THELMA
                  L. 4 

              	 	 	
                37974
                  

              	 	 	
                1438
                  

              	 	 	
                1211
                  

              	 	 	
                1492
                  

              	 	 	
                1453-55
                  

              	 
	
                THELMA
                  L. 5 

              	 	 	
                37975
                  

              	 	 	
                1438
                  

              	 	 	
                1212
                  

              	 	 	
                1492
                  

              	 	 	
                1456-57
                  

              	 
	
                STREAK
                  OF SILVER 1 

              	 	 	
                59548
                  

              	 	 	
                1442
                  

              	 	 	
                1350
                  

              	 	 	
                1492
                  

              	 	 	
                1581-83
                  

              	 
	
                STREAK
                  OF SILVER 2 

              	 	 	
                59549
                  

              	 	 	
                1442
                  

              	 	 	
                1349
                  

              	 	 	
                1492
                  

              	 	 	
                1584-86
                  

              	 
	
                STREAK
                  OF SILVER 3 

              	 	 	
                59550
                  

              	 	 	
                1442
                  

              	 	 	
                1348
                  

              	 	 	
                1492
                  

              	 	 	
                1587-89
                  

              	 
	
                PRINCE
                  1 

              	 	 	
                29836
                  

              	 	 	
                624
                  

              	 	 	
                495
                  

              	 	 	
                1590
                  

              	 	 	
                615-16
                  

              	 
	
                GOLDEN
                  DREAM 8 

              	 	 	
                29861
                  

              	 	 	
                1368
                  

              	 	 	
                1650
                  

              	 	 	
                1492
                  

              	 	 	
                1607-08
                  

              	 
	
                GOLDEN
                  DREAM 9 

              	 	 	
                29862
                  

              	 	 	
                1368
                  

              	 	 	
                1651
                  

              	 	 	
                1492
                  

              	 	 	
                1609-11
                  

              	 
	
                GOLDEN
                  DREAM 10 

              	 	 	
                29863
                  

              	 	 	
                1368
                  

              	 	 	
                1652
                  

              	 	 	
                1492
                  

              	 	 	
                1612-13
                  

              	 
	
                GOLDEN
                  DREAM 11 

              	 	 	
                29864
                  

              	 	 	
                1368
                  

              	 	 	
                1653
                  

              	 	 	
                1492
                  

              	 	 	
                1614-15
                  

              	 
	
                GOLDEN
                  DREAM 12 

              	 	 	
                29865
                  

              	 	 	
                1368
                  

              	 	 	
                1654
                  

              	 	 	
                1492
                  

              	 	 	
                1616-17
                  

              	 
	
                GOLDEN
                  DREAM 13 

              	 	 	
                29866
                  

              	 	 	
                1368
                  

              	 	 	
                1655
                  

              	 	 	
                1492
                  

              	 	 	
                1618-20
                  

              	 
	
                GOLDEN
                  DREAM 14 

              	 	 	
                29867
                  

              	 	 	
                1368
                  

              	 	 	
                1656
                  

              	 	 	
                1492
                  

              	 	 	
                1621-22
                  

              	 

      

    

     

     

    
      
        
        

      

      
        Page
          88

        
          

        

      

      
        
        

      

    

     

    

      
        	 	 	 	 	
                Notice
                  of Location and Last Amended Notice of Location Recorded in Official
                  Records of Imperial County, California

              	 
	 	 	 	 	
                Original

              	 	
                Amended

              	 
	
                Name
                  of Claim

              	 	
                BLM
                  Serial No. (CAMC)

              	 	
                Book

              	 	
                Pages

              	 	
                Book

              	 	
                Pages

              	 
	
                GOLDEN
                  DREAM 15 

              	 	 	
                29868
                  

              	 	 	
                1368
                  

              	 	 	
                1657
                  

              	 	 	
                1492
                  

              	 	 	
                1623-24
                  

              	 
	
                GOLDEN
                  DREAM 16 

              	 	 	
                29869
                  

              	 	 	
                1368
                  

              	 	 	
                1658
                  

              	 	 	
                1492
                  

              	 	 	
                1625-26
                  

              	 
	
                GOLDEN
                  ANNEX 1 

              	 	 	
                29842
                  

              	 	 	
                1207
                  

              	 	 	
                751
                  

              	 	 	
                1590
                  

              	 	 	
                626-27
                  

              	 
	
                GOLDEN
                  ANNEX C 

              	 	 	
                107693
                  

              	 	 	
                1482
                  

              	 	 	
                1585
                  

              	 	 	
                1492
                  

              	 	 	
                1344-46
                  

              	 
	
                GOLDEN
                  ANNEX F 

              	 	 	
                107696
                  

              	 	 	
                1482
                  

              	 	 	
                1588
                  

              	 	 	
                1590
                  

              	 	 	
                617-19
                  

              	 
	
                THEDFORD
                  

              	 	 	
                53972
                  

              	 	 	
                1253
                  

              	 	 	
                56
                  

              	 	 	
                1590
                  

              	 	 	
                613-14
                  

              	 
	
                JILDA
                  1 

              	 	 	
                1787
                  

              	 	 	
                1258
                  

              	 	 	
                86
                  

              	 	 	
                1590
                  

              	 	 	
                622-23
                  

              	 
	
                PROVIDENCE
                  1 

              	 	 	
                62094
                  

              	 	 	
                1446
                  

              	 	 	
                789
                  

              	 	 	
                1492
                  

              	 	 	
                1386-87
                  

              	 
	
                PROVIDENCE
                  2 

              	 	 	
                62095
                  

              	 	 	
                1446
                  

              	 	 	
                790
                  

              	 	 	
                1492
                  

              	 	 	
                1388-89
                  

              	 
	
                PROVIDENCE
                  3 

              	 	 	
                62096
                  

              	 	 	
                1446
                  

              	 	 	
                791
                  

              	 	 	
                1492
                  

              	 	 	
                1390-92
                  

              	 
	
                PROVIDENCE
                  4 

              	 	 	
                62097
                  

              	 	 	
                1446
                  

              	 	 	
                792
                  

              	 	 	
                1492
                  

              	 	 	
                1393-94
                  

              	 
	
                PROVIDENCE
                  6 

              	 	 	
                62099
                  

              	 	 	
                1446
                  

              	 	 	
                794
                  

              	 	 	
                1492
                  

              	 	 	
                1395-96
                  

              	 
	
                JACMAC
                  1 

              	 	 	
                23747
                  

              	 	 	
                1431
                  

              	 	 	
                987
                  

              	 	 	
                1492
                  

              	 	 	
                1362-64
                  

              	 
	
                JACMAC
                  2 

              	 	 	
                23748
                  

              	 	 	
                1431
                  

              	 	 	
                989
                  

              	 	 	
                1492
                  

              	 	 	
                1365-66
                  

              	 
	
                JACMAC
                  4 

              	 	 	
                23750
                  

              	 	 	
                1431
                  

              	 	 	
                993
                  

              	 	 	
                1492
                  

              	 	 	
                1367-68
                  

              	 
	
                JACMAC
                  5 

              	 	 	
                23751
                  

              	 	 	
                1431
                  

              	 	 	
                995
                  

              	 	 	
                1492
                  

              	 	 	
                1369-70
                  

              	 
	
                JACMAC
                  6 

              	 	 	
                23752
                  

              	 	 	
                1431
                  

              	 	 	
                997
                  

              	 	 	
                1492
                  

              	 	 	
                1371-72
                  

              	 
	
                JACMAC
                  7 

              	 	 	
                23753
                  

              	 	 	
                1431
                  

              	 	 	
                999
                  

              	 	 	
                1492
                  

              	 	 	
                1373-74
                  

              	 
	
                JACMAC
                  8 

              	 	 	
                23754
                  

              	 	 	
                1431
                  

              	 	 	
                1001
                  

              	 	 	
                1492
                  

              	 	 	
                1375-76
                  

              	 
	
                JACMAC
                  9 

              	 	 	
                23755
                  

              	 	 	
                1431
                  

              	 	 	
                1003
                  

              	 	 	
                1492
                  

              	 	 	
                1377-78
                  

              	 
	
                JACMAC
                  10 

              	 	 	
                23756
                  

              	 	 	
                1431
                  

              	 	 	
                1005
                  

              	 	 	
                1492
                  

              	 	 	
                1379-81
                  

              	 
	
                JACMAC
                  11 

              	 	 	
                23757
                  

              	 	 	
                1431
                  

              	 	 	
                1007
                  

              	 	 	
                1492
                  

              	 	 	
                1382-83
                  

              	 
	
                JACMAC
                  12 

              	 	 	
                109008
                  

              	 	 	
                1483
                  

              	 	 	
                1084
                  

              	 	 	
                1492
                  

              	 	 	
                1384-85
                  

              	 
	
                NEW
                  GOLD 1 

              	 	 	
                16221
                  

              	 	 	
                1298
                  

              	 	 	
                592
                  

              	 	 	
                1492
                  

              	 	 	
                1234-36
                  

              	 
	
                NEW
                  GOLD 2 

              	 	 	
                16222
                  

              	 	 	
                1298
                  

              	 	 	
                593
                  

              	 	 	
                1492
                  

              	 	 	
                1237-39
                  

              	 
	
                NEW
                  GOLD 3 

              	 	 	
                16223
                  

              	 	 	
                1298
                  

              	 	 	
                594
                  

              	 	 	
                1492
                  

              	 	 	
                1240-41
                  

              	 
	
                NEW
                  GOLD 4 

              	 	 	
                16224
                  

              	 	 	
                1298
                  

              	 	 	
                595
                  

              	 	 	
                1492
                  

              	 	 	
                1242-44
                  

              	 
	
                GOLD
                  HILL 2 

              	 	 	
                30202
                  

              	 	 	
                317
                  

              	 	 	
                195
                  

              	 	 	
                1497
                  

              	 	 	
                320-21
                  

              	 
	
                LOLA
                  4 

              	 	 	
                52404
                  

              	 	 	
                1172
                  

              	 	 	
                140
                  

              	 	 	
                1506
                  

              	 	 	
                884-85
                  

              	 
	
                LOLA
                  9 

              	 	 	
                52409
                  

              	 	 	
                1172
                  

              	 	 	
                145
                  

              	 	 	
                1578
                  

              	 	 	
                7
                  

              	 
	
                MILS
                  104 

              	 	 	
                171114

              	 	 	
                1549
                  

              	 	 	
                963

              	 	 	 	 	 	 	 
	
                MILS
                  171 

              	 	 	
                171176

              	 	 	
                1549
                  

              	 	 	
                1025

              	 	 	 	 	 	 	 
	
                MILS
                  172 

              	 	 	
                171177

              	 	 	
                1549
                  

              	 	 	
                1026

              	 	 	 	 	 	 	 
	
                MILS
                  174 

              	 	 	
                171179

              	 	 	
                1549
                  

              	 	 	
                1028

              	 	 	 	 	 	 	 
	
                MILS
                  176 

              	 	 	
                171181

              	 	 	
                1549
                  

              	 	 	
                1030

              	 	 	 	 	 	 	 
	
                MILS
                  178 

              	 	 	
                171183

              	 	 	
                1549
                  

              	 	 	
                1032

              	 	 	 	 	 	 	 
	
                MILS
                  180 

              	 	 	
                171185

              	 	 	
                1549
                  

              	 	 	
                1034

              	 	 	 	 	 	 	 
	
                MILS
                  182 

              	 	 	
                171187

              	 	 	
                1549
                  

              	 	 	
                1036

              	 	 	 	 	 	 	 
	
                MILS
                  183 

              	 	 	
                171188

              	 	 	
                1549
                  

              	 	 	
                1037

              	 	 	 	 	 	 	 
	
                MILS
                  184 

              	 	 	
                171189

              	 	 	
                1549
                  

              	 	 	
                1038

              	 	 	 	 	 	 	 
	
                MILS
                  185 

              	 	 	
                171190

              	 	 	
                1549
                  

              	 	 	
                1039

              	 	 	 	 	 	 	 
	
                MILS
                  186 

              	 	 	
                171191

              	 	 	
                1549
                  

              	 	 	
                1040

              	 	 	 	 	 	 	 
	
                MILS
                  187 

              	 	 	
                171192

              	 	 	
                1549
                  

              	 	 	
                1041

              	 	 	 	 	 	 	 
	
                MILS
                  188 

              	 	 	
                171193

              	 	 	
                1549
                  

              	 	 	
                1042

              	 	 	 	 	 	 	 
	
                MILS
                  189 

              	 	 	
                171194

              	 	 	
                1549
                  

              	 	 	
                1043

              	 	 	 	 	 	 	 

      

    

     

     

    
      
        
        

      

      
        Page
          89

        
          

        

      

      
        
        

      

    

     

    

      
        	 	 	 	 	
                Notice
                  of Location and Last Amended Notice of Location Recorded in Official
                  Records of Imperial County, California

              	 
	 	 	 	 	
                Original

              	 	
                Amended

              	 
	
                Name
                  of Claim

              	 	
                BLM
                  Serial No. (CAMC)

              	 	
                Book

              	 	
                Pages

              	 	
                Book

              	 	
                Pages

              	 
	
                MILS
                  190 

              	 	 	
                171195
                  

              	 	 	
                1549
                  

              	 	 	
                1044
                  

              	 	 	 	 	 	 	 
	
                MILS
                  191 

              	 	 	
                171196
                  

              	 	 	
                1549
                  

              	 	 	
                1045
                  

              	 	 	 	 	 	 	 
	
                MILS
                  192 

              	 	 	
                171197
                  

              	 	 	
                1549
                  

              	 	 	
                1046
                  

              	 	 	 	 	 	 	 
	
                MILS
                  196 

              	 	 	
                171201
                  

              	 	 	
                1549
                  

              	 	 	
                1050
                  

              	 	 	 	 	 	 	 
	
                MILS
                  197 

              	 	 	
                171202
                  

              	 	 	
                1549
                  

              	 	 	
                1051
                  

              	 	 	 	 	 	 	 
	
                MILS
                  198 

              	 	 	
                171203
                  

              	 	 	
                1549
                  

              	 	 	
                1052
                  

              	 	 	 	 	 	 	 
	
                MILS
                  199 

              	 	 	
                171204
                  

              	 	 	
                1549
                  

              	 	 	
                1053
                  

              	 	 	 	 	 	 	 
	
                MILS
                  204 

              	 	 	
                171208
                  

              	 	 	
                1549
                  

              	 	 	
                1057
                  

              	 	 	 	 	 	 	 
	
                MILS
                  205 

              	 	 	
                171209
                  

              	 	 	
                1549
                  

              	 	 	
                1058
                  

              	 	 	 	 	 	 	 
	
                MILS
                  206 

              	 	 	
                171210
                  

              	 	 	
                1549
                  

              	 	 	
                1059
                  

              	 	 	 	 	 	 	 
	
                MILS
                  207 

              	 	 	
                171211
                  

              	 	 	
                1549
                  

              	 	 	
                1060
                  

              	 	 	 	 	 	 	 
	
                MILS
                  208 

              	 	 	
                171212
                  

              	 	 	
                1549
                  

              	 	 	
                1061
                  

              	 	 	 	 	 	 	 
	
                MILS
                  209 

              	 	 	
                171213
                  

              	 	 	
                1549
                  

              	 	 	
                1062
                  

              	 	 	 	 	 	 	 
	
                MILS
                  210 

              	 	 	
                171214
                  

              	 	 	
                1549
                  

              	 	 	
                1063
                  

              	 	 	 	 	 	 	 
	
                MILS
                  211 

              	 	 	
                171215
                  

              	 	 	
                1549
                  

              	 	 	
                1064
                  

              	 	 	 	 	 	 	 
	
                MILS
                  212 

              	 	 	
                171216
                  

              	 	 	
                1549
                  

              	 	 	
                1065
                  

              	 	 	 	 	 	 	 
	
                MILS
                  213 

              	 	 	
                171217
                  

              	 	 	
                1549
                  

              	 	 	
                1066
                  

              	 	 	 	 	 	 	 
	
                MILS
                  214 

              	 	 	
                171218
                  

              	 	 	
                1549
                  

              	 	 	
                1067
                  

              	 	 	 	 	 	 	 
	
                MILS
                  215 

              	 	 	
                171219
                  

              	 	 	
                1549
                  

              	 	 	
                1068
                  

              	 	 	 	 	 	 	 
	
                MILS
                  216 

              	 	 	
                171220
                  

              	 	 	
                1549
                  

              	 	 	
                1069
                  

              	 	 	 	 	 	 	 
	
                MILS
                  217 

              	 	 	
                171221
                  

              	 	 	
                1549
                  

              	 	 	
                1070
                  

              	 	 	 	 	 	 	 
	
                MILS
                  218 

              	 	 	
                171222
                  

              	 	 	
                1549
                  

              	 	 	
                1071
                  

              	 	 	 	 	 	 	 
	
                MILS
                  219 

              	 	 	
                171223
                  

              	 	 	
                1549
                  

              	 	 	
                1072
                  

              	 	 	 	 	 	 	 
	
                MILS
                  220 

              	 	 	
                171224
                  

              	 	 	
                1549
                  

              	 	 	
                1073
                  

              	 	 	 	 	 	 	 
	
                MILS
                  221 

              	 	 	
                171225
                  

              	 	 	
                1549
                  

              	 	 	
                1074
                  

              	 	 	 	 	 	 	 
	
                MILS
                  222 

              	 	 	
                171226
                  

              	 	 	
                1549
                  

              	 	 	
                1075
                  

              	 	 	 	 	 	 	 
	
                MILS
                  223 

              	 	 	
                171227
                  

              	 	 	
                1549
                  

              	 	 	
                1076
                  

              	 	 	 	 	 	 	 
	
                MILS
                  224 

              	 	 	
                171228
                  

              	 	 	
                1549
                  

              	 	 	
                1077
                  

              	 	 	 	 	 	 	 
	
                MILS
                  225 

              	 	 	
                171229
                  

              	 	 	
                1549
                  

              	 	 	
                1078
                  

              	 	 	 	 	 	 	 
	
                MILS
                  226 

              	 	 	
                171230
                  

              	 	 	
                1549
                  

              	 	 	
                1079
                  

              	 	 	 	 	 	 	 
	
                MILS
                  227 

              	 	 	
                171231
                  

              	 	 	
                1549
                  

              	 	 	
                1080
                  

              	 	 	 	 	 	 	 
	
                MILS
                  228 

              	 	 	
                171232
                  

              	 	 	
                1549
                  

              	 	 	
                1081
                  

              	 	 	 	 	 	 	 
	
                MILS
                  229 

              	 	 	
                171233
                  

              	 	 	
                1549
                  

              	 	 	
                1082
                  

              	 	 	 	 	 	 	 
	
                MILS
                  230 

              	 	 	
                171234
                  

              	 	 	
                1549
                  

              	 	 	
                1083
                  

              	 	 	 	 	 	 	 
	
                MILS
                  231 

              	 	 	
                171235
                  

              	 	 	
                1549
                  

              	 	 	
                1084
                  

              	 	 	 	 	 	 	 
	
                MILS
                  232 

              	 	 	
                171236
                  

              	 	 	
                1549
                  

              	 	 	
                1085
                  

              	 	 	 	 	 	 	 
	
                MILS
                  234 

              	 	 	
                171238
                  

              	 	 	
                1549
                  

              	 	 	
                1087
                  

              	 	 	 	 	 	 	 
	
                MILS
                  236 

              	 	 	
                171240
                  

              	 	 	
                1549
                  

              	 	 	
                1089
                  

              	 	 	 	 	 	 	 
	
                MILS
                  237 

              	 	 	
                171241
                  

              	 	 	
                1549
                  

              	 	 	
                1090
                  

              	 	 	 	 	 	 	 
	
                MILS
                  250 

              	 	 	
                171254
                  

              	 	 	
                1549
                  

              	 	 	
                1103
                  

              	 	 	 	 	 	 	 
	
                MILS
                  253 

              	 	 	
                171257
                  

              	 	 	
                1549
                  

              	 	 	
                1106
                  

              	 	 	 	 	 	 	 
	
                MILS
                  254 

              	 	 	
                171258
                  

              	 	 	
                1549
                  

              	 	 	
                1107
                  

              	 	 	 	 	 	 	 
	
                MILS
                  255 

              	 	 	
                171259
                  

              	 	 	
                1549
                  

              	 	 	
                1108
                  

              	 	 	 	 	 	 	 
	
                MILS
                  256 

              	 	 	
                171260
                  

              	 	 	
                1549
                  

              	 	 	
                1109
                  

              	 	 	 	 	 	 	 

      

      
        
          
          

        

        
          Page
            90

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	
                Notice
                  of Location and Last Amended Notice of Location Recorded in Official
                  Records of Imperial County, California 

              	 
	 	 	 	 	
                Original 

              	 	
                Amended 

              	 
	
                Name
                  of Claim

              	 	
                BLM
                  Serial No. (CAMC) 

              	 	
                Book 

              	 	
                Pages

              	 	
                Book 

              	 	
                Pages 

              	 
	
                MILS
                  257 

              	 	 	
                171261
                  

              	 	 	
                1549
                  

              	 	 	
                1110
                  

              	 	 	 	 	 	 	 
	
                MILS
                  258 

              	 	 	
                171262
                  

              	 	 	
                1549
                  

              	 	 	
                1111
                  

              	 	 	 	 	 	 	 
	
                MILS
                  259 

              	 	 	
                171263
                  

              	 	 	
                1549
                  

              	 	 	
                1112
                  

              	 	 	 	 	 	 	 
	
                MILS
                  260 

              	 	 	
                171264
                  

              	 	 	
                1549
                  

              	 	 	
                1113
                  

              	 	 	 	 	 	 	 
	
                MILS
                  263 

              	 	 	
                171267
                  

              	 	 	
                1549
                  

              	 	 	
                1116
                  

              	 	 	 	 	 	 	 
	
                MILS
                  264 

              	 	 	
                171268
                  

              	 	 	
                1549
                  

              	 	 	
                1117
                  

              	 	 	 	 	 	 	 
	
                MILS
                  266 

              	 	 	
                171270
                  

              	 	 	
                1549
                  

              	 	 	
                1119
                  

              	 	 	 	 	 	 	 
	
                MILS
                  268 

              	 	 	
                171272
                  

              	 	 	
                1549
                  

              	 	 	
                1121
                  

              	 	 	 	 	 	 	 
	
                MILS
                  270 

              	 	 	
                171274
                  

              	 	 	
                1549
                  

              	 	 	
                1123
                  

              	 	 	 	 	 	 	 
	
                MILS
                  272 

              	 	 	
                171275
                  

              	 	 	
                1549
                  

              	 	 	
                1124
                  

              	 	 	 	 	 	 	 
	
                MILS
                  273 

              	 	 	
                171276
                  

              	 	 	
                1549
                  

              	 	 	
                1125
                  

              	 	 	 	 	 	 	 
	
                MILS
                  274 

              	 	 	
                171277
                  

              	 	 	
                1549
                  

              	 	 	
                1126
                  

              	 	 	 	 	 	 	 

      

    

     

    
      
        
        

      

      
        Page
          91

        
          

        

      

      
        
        

      

    

     

    

      Patented
        (Fee) Tracts Owned by Western Mesquite Mines, Inc.

       

      1. (Patent
        No. 04-88-0044 dated July 18, 1988, Survey No. 6921) The
        following patented millsite claims
        located within Section 33, Township 13 South, Range 19 East, and Section
        4,
        Township 14 South,
        Range 19 East, SBB&M, Imperial County, California:

       

      MILS
        261 

      MILS
        262 

      MILS
        265 

      MILS
        267 

      MILS
        269

       

      2. (Patent
        No. 04-90-0066 dated August 17, 1990, Survey Nos. 6923 and 6924)
The
        following patented
        millsite claims located within Section 8, Township 13 South, Range 19 East,
        SBB&M, Imperial
        County, California:

       

      MILS
        2 

      MILS
        3 

      MILS
        4 

      MILS
        5 

      MILS
        6 

      MILS
        7 

      MILS
        8 

      MILS
        9 

      MILS
        10 

      MILS
        11 

      MILS
        12 

      MILS
        13 

      MILS
        14 

      MILS
        51 

      MILS
        52 

      MILS
        54 

      MILS
        105 

      MILS
        106 

      MILS
        107 

      MILS
        108

       

      3. (Patent
        No. 04-88-0045 dated August 5,1988,  Survey No. 6901) The
        following patented mining claims
        located within Sections 5-8, Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      Big
        Brother 1 

      Buddy
        8 

      Buddy
        9 

      Buddy
        10 

      Little
        Sister 1 

      Little
        Sister 2

       

      4. (Patent
        No. 04-89-0035 dated March 8, 1989, Survey No. 6930) The
        following patented mining claims
        located within Sections 3 and 4, Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      Cherokee
        1 

      Cherokee
        6 

      Bu
        Bu 2

      Biscuit
        Shooter 1 

      Biscuit
        Shooter 2 

      Biscuit
        Shooter 3

       

      
        
          
          

        

        
          Page
            92

          
            

          

        

        
          
          

        

      

       

      5. (Patent
        No. 04-95-0019 dated March 29, 1995, Survey No. 6933) The
        following patented mining claim
        located within Sections 5 and 8, Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      Gold
        Hill 1

       

      6. (Patent
        No. 04-95-0020 dated March 29,1995, Survey No. 6937) The
        following patented mining claims
        located within Sections 4 and 9, Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      Don
        Juan 1 

      Don
        Juan 2 

      Lady
        June 1⁄2

      Lady
        June 1 

      Lady
        June 2 

      Highway
        Fraction 1 

      Highway
        Fraction 2 

      SEA
        775

       

      7. (Patent
        No. 04-95-0021 dated March 29,  1995, Survey No. 6935)
The
        following patented mining claims
        located within Section 3, Township 13 South, Range 19 East, SBB&M, 
perial County, California:

       

      Rainbow
        

      Panorama
        

      Copenhagen
        1 

      Copenhagen
        2 

      SEA
        342

       

      8. (Patent
        No. 04-2002-0004 dated November 1, 2001, Survey No. 6938) The
        following patented mining
        claims located within Section 5, Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      MESQ
        29 

      MESQ
        30 

      Lena
        1 

      Lena
        2 

      Lena
        3 

      Lena
        4

       

      9. (Patent
        No. 04-91-0026 dated March 28, 1991, Survey No. 6932) The
        following patented millsite claims
        located within Sections 5, 8 and 9, Township 13 South, Range 19 East, 
SBB&M, Imperial County,
        California:

       

      MILS
        125

      MILS
        126

       

      
        
          
          

        

        
          Page
            93

          
            

          

        

        
          
          

        

      

       

      MILS
        127 

      MILS
        128 

      MILS
        129 

      MILS
        130 

      MILS
        131 MILS
        132

       

      10. (Patent
        No. 04-90-0022 dated February 2, 1990, Survey No. 6900) The
        following patented mining
        claims located within Sections 5 and 8, Township 13 South, Range 19
        East, SBB&M, Imperial County,
        California:

       

      Big
        Chief 1 

      Big
        Chief 2 

      Big
        Chief 3 

      Big
        Chief 4 

      Calcite
        3 

      Cholla

      Desert
        View 1 

      Desert
        View 2 

      Golden
        Annex A 

      Golden
        Annex D 

      Golden
        Annex E 

      Golden
        Annex 4 

      Golden
        Annex 5 

      Golden
        Annex 6

       

      11. (Patent
        No. 04-95-0018 dated March 29, 1995, Survey No. 6922) The
        following patented mining
        claims located within Sections 3, 4, 9 and 10, Township 13 South, Range 19
        East,
        SBB&M, Imperial
        County, California:

       

      Lola1

      Lola
        2

      Lola
        3

      Lola
        5

      Lola
        6

      Lola
        10

      Lola
        Extension

       

      
        
          
          

        

        
          Page
            94

          
            

          

        

        
          
          

        

      

       

      Unpatented
        Mining and Millsite Claims Owned by County Sanitation District
No.
        2 of
        Los Angeles County, and Leased by Western Mesquite Mines,
        Inc.

       

      Western
        Mesquite Mines, Inc. leases the following-described mining and millsite claims
        located within Sections 6-10 and 15, Township 13 South, Range 19 East,
        SBB&M, Imperial County, California, from County
        Sanitation District No. 2 of Los Angeles pursuant to a Mineral Lease and
        Landfill Facilities Lease
        Agreement dated June 25, 1993, as amended:

      

        
          	 	 	 	 	
                   Notice
                    of Location and Last Amended Notice of Location Recorded in Official
                    Records of Imperial County, California

                	 
	 	 	 	 	
                   Original

                	 	
                  Amended

                	 
	
                  Name
                    of Claim

                	 	
                  BLM
                    Serial No. (CAMC)

                	 	
                  Book

                	 	
                  Pages

                	 	
                  Book

                	 	
                  Pages

                	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
                  SEA
                    1 

                	 	 	
                  105150
                    

                	 	 	
                  1479
                    

                	 	 	
                  1247
                    

                	 	 	
                  1506
                    

                	 	 	
                  615-16
                    

                	 
	
                  SEA
                    2 

                	 	 	
                  105151
                    

                	 	 	
                  1479
                    

                	 	 	
                  1248
                    

                	 	 	
                  1506
                    

                	 	 	
                  617-18
                    

                	 
	
                  SEA
                    3 

                	 	 	
                  105152
                    

                	 	 	
                  1479
                    

                	 	 	
                  1249
                    

                	 	 	
                  1506
                    

                	 	 	
                  619-20
                    

                	 
	
                  SEA
                    4 

                	 	 	
                  105153
                    

                	 	 	
                  1479
                    

                	 	 	
                  1250
                    

                	 	 	
                  1506
                    

                	 	 	
                  621-22
                    

                	 
	
                  SEA
                    5 

                	 	 	
                  105154
                    

                	 	 	
                  1479
                    

                	 	 	
                  1251
                    

                	 	 	
                  1506
                    

                	 	 	
                  623-24
                    

                	 
	
                  SEA
                    6 

                	 	 	
                  105155
                    

                	 	 	
                  1479
                    

                	 	 	
                  1252
                    

                	 	 	
                  1506
                    

                	 	 	
                  625-26
                    

                	 
	
                  SEA
                    7 

                	 	 	
                  105156
                    

                	 	 	
                  1479
                    

                	 	 	
                  1253
                    

                	 	 	
                  1506
                    

                	 	 	
                  627-28
                    

                	 
	
                  SEA
                    15 

                	 	 	
                  105160
                    

                	 	 	
                  1479
                    

                	 	 	
                  1257
                    

                	 	 	
                  1506
                    

                	 	 	
                  631-32
                    

                	 
	
                  SEA
                    16 

                	 	 	
                  105161
                    

                	 	 	
                  1479
                    

                	 	 	
                  1258
                    

                	 	 	
                  1506
                    

                	 	 	
                  633-34
                    

                	 
	
                  SEA
                    17 

                	 	 	
                  105162
                    

                	 	 	
                  1479
                    

                	 	 	
                  1259
                    

                	 	 	
                  1506
                    

                	 	 	
                  635-36
                    

                	 
	
                  SEA
                    80 

                	 	 	
                  105211
                    

                	 	 	
                  1479
                    

                	 	 	
                  1308
                    

                	 	 	
                  1851
                    

                	 	 	
                  478-79
                    

                	 
	
                  LOLA
                    7 

                	 	 	
                  52407
                    

                	 	 	
                  1172
                    

                	 	 	
                  143
                    

                	 	 	
                  1578
                    

                	 	 	
                  6
                    

                	 
	
                  LOLA
                    8 

                	 	 	
                  52408
                    

                	 	 	
                  1172
                    

                	 	 	
                  144
                    

                	 	 	
                  1506
                    

                	 	 	
                  892-93
                    

                	 
	
                  GOLDEN
                    ANNEX 8 

                	 	 	
                  29849
                    

                	 	 	
                  1215
                    

                	 	 	
                  336
                    

                	 	 	
                  1492
                    

                	 	 	
                  1330-31
                    

                	 
	
                  MILS
                    101 

                	 	 	
                  171111
                    

                	 	 	
                  1549
                    

                	 	 	
                  960
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    102 

                	 	 	
                  171112
                    

                	 	 	
                  1549
                    

                	 	 	
                  961
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    103 

                	 	 	
                  171113
                    

                	 	 	
                  1549
                    

                	 	 	
                  962
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    133 

                	 	 	
                  171139
                    

                	 	 	
                  1549
                    

                	 	 	
                  988
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    134 

                	 	 	
                  171140
                    

                	 	 	
                  1549
                    

                	 	 	
                  989
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    135 

                	 	 	
                  171141
                    

                	 	 	
                  1549
                    

                	 	 	
                  990
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    136 

                	 	 	
                  171142
                    

                	 	 	
                  1549
                    

                	 	 	
                  991
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    160 

                	 	 	
                  173035
                    

                	 	 	
                  1551
                    

                	 	 	
                  397
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    162 

                	 	 	
                  173037
                    

                	 	 	
                  1551
                    

                	 	 	
                  399
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    164 

                	 	 	
                  173039
                    

                	 	 	
                  1551
                    

                	 	 	
                  401
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    166 

                	 	 	
                  171171
                    

                	 	 	
                  1549
                    

                	 	 	
                  1020
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    167 

                	 	 	
                  171172
                    

                	 	 	
                  1549
                    

                	 	 	
                  1021
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    168 

                	 	 	
                  171173
                    

                	 	 	
                  1549
                    

                	 	 	
                  1022
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    169 

                	 	 	
                  171174
                    

                	 	 	
                  1549
                    

                	 	 	
                  1023
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    170 

                	 	 	
                  171175
                    

                	 	 	
                  1549
                    

                	 	 	
                  1024
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    173 

                	 	 	
                  173040
                    

                	 	 	
                  1551
                    

                	 	 	
                  402
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    175 

                	 	 	
                  171180
                    

                	 	 	
                  1549
                    

                	 	 	
                  1029
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    177 

                	 	 	
                  171182
                    

                	 	 	
                  1549
                    

                	 	 	
                  1031
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    179 

                	 	 	
                  171184
                    

                	 	 	
                  1549
                    

                	 	 	
                  1033
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    181 

                	 	 	
                  171186
                    

                	 	 	
                  1549
                    

                	 	 	
                  1035
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    193 

                	 	 	
                  171198
                    

                	 	 	
                  1549
                    

                	 	 	
                  1047
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    194 

                	 	 	
                  171199
                    

                	 	 	
                  1549
                    

                	 	 	
                  1048
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    195 

                	 	 	
                  171200
                    

                	 	 	
                  1549
                    

                	 	 	
                  1049
                    

                	 	 	 	 	 	 	 

        

      

       

      
        
          
          

        

        
          Page
            95

          
            

          

        

        
          
          

        

      

       

      
        
          	 	 	
                   

                	
                   

                	
                   Notice
                    of Location and Last Amended Notice of Location Recorded in Official
                    Records of Imperial County, California

                	 
	 	 	 	 	
                   Original

                	 	
                  Amended

                	 
	
                  Name
                    of Claim

                	 	
                  BLM
                    Serial No. (CAMC)

                	 	
                  Book

                	 	
                  Pages

                	 	
                  Book

                	 	
                  Pages

                	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
                  MILS
                    200 

                	 	 	
                  171205
                    

                	 	 	
                  1549
                    

                	 	 	
                  1054
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    202 

                	 	 	
                  171206
                    

                	 	 	
                  1549
                    

                	 	 	
                  1055
                    

                	 	 	 	 	 	 	 
	
                  MILS
                    203 

                	 	 	
                  171207
                    

                	 	 	
                  1549
                    

                	 	 	
                  1056
                    

                	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

      

       

      
        
          
          

        

        
          Page
            96

          
            

          

        

        
          
          

        

      

       

      Patented
        (Fee) Tracts Owned by County Sanitation District No. 2 of Los
Angeles
        County,
        and Leased by Western Mesquite Mines, Inc.

       

      Western
        Mesquite Mines, Inc. leases the following-described patented (fee) properties
        from County Sanitation District No. 2 of Los Angeles pursuant to a Mineral
        Lease
        and Landfill Facilities Lease Agreement dated June 25, 1993, as
        amended:

       

      1.
        (Patent No. 04-90-0066 dated August 17, 1990, Survey Nos. 6923 and 6924)
        The
        following patented millsite claims located within Sections 7-9 and 17, Township
        13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      MILS1
        

      MILS
        15 

      MILS
        16 

      MILS
        17 

      MILS
        18 

      MILS
        19 

      MILS
        20 

      MILS
        21 

      MILS
        22 

      MILS
        23 

      MILS
        24 

      MILS
        25 

      MILS
        26 

      MILS
        27 

      MILS
        28 

      MILS
        29 

      MILS
        53 

      MILS
        55 

      MILS
        62 

      MILS
        64 

      MILS
        65 

      MILS
        66 

      MILS
        67 

      MILS
        68 

      MILS
        69 

      MILS
        70 

      MILS
        71 

      MILS
        72 

      MILS
        73 

      MILS
        74 

      MILS
        75 

      MILS
        76 

      MILS
        77 

      MILS
        78 

      MILS
        79 

      MILS
        80 

      MILS
        138 

      MILS
        139 

      MILS
        140 

      MILS
        141

       

      
        
          
          

        

        
          Page
            97

          
            

          

        

        
          
          

        

      

             
        MILS 142 

      MILS
        143 

      MILS
        144 

      MILS
        145 

      MILS
        146 

      MILS
        147 

      MILS
        148 

      MILS
        149 

      MILS
        150 

      MILS
        151 

      MILS
        152 

      MILS
        153 

      MILS
        154 

      MILS
        155 

      MILS
        156 

      MILS
        157 

      MILS
        158 

      MILS
        159 

      MILS
        161 

      MILS
        162 

      MILS
        163 

      MILS
        164 

      MILS
        165 

      MILS
        166 

      MILS
        299

      

        2.
          (Patent No. 04-90-0012 dated January 9, 1990)
          The
          following patented millsite claims located within
          the E1⁄2SW1⁄4SW1⁄4NE1⁄4, SE1⁄4SW1⁄4NE1⁄4, S1⁄2SE1⁄4NE1⁄4, NE1⁄4SE1⁄4, E1⁄2NW1⁄4SE1⁄4,

        E1⁄2W1⁄2NW1⁄4SE1⁄4,
          NE1⁄4SW1⁄4SE1⁄4, E1⁄2NW1⁄4SW1⁄4SE1⁄4, NE1⁄4SW1⁄4SW1⁄4SE1⁄4, N1⁄2SE1⁄4SW1⁄4SE1⁄4, NW1⁄4NE1⁄4SE1⁄4SE1⁄4
          and NW1⁄4SE1⁄4SE1⁄4 of Section 17, Township 13 South, Range 19 East, SBB&M,
Imperial
          County, California:

         

      

      AP1

      AP2

      AP3

      AP4

      AP5

      AP6

      AP7

      AP8

      AP9

      AP10

      AP11

      AP12

      AP13

      AP14

      AP15

      AP16

      AP17

      AP18

      AP19

      AP20

       

      
        
          
          

        

        
          Page
            98

          
            

          

        

        
          
          

        

      

       

      AP21
        

      AP22
        

      AP26
        

      AP27
        

      AP28
        

      AP29
        

      AP30
        

      AP31
        

      AP32

       

      3. (Patent
        No. 04-87-0023 dated January 30,1987) Certain
        portions of the following tracts located in
        Township 13 South, Range 19 East, SBB&M, Imperial County,
        California:

       

      Section
        7: N1⁄2SE1⁄4
        (220 Dump)

      Section
        8: NW1⁄4SW1⁄4
        (220 Extension Dump)

      Section
        17: W1⁄2
        (leach pad)

      Section
        18: S1⁄2SE1⁄4
        (solution ponds)

      Section
        19: N1⁄2NE1⁄4
        (solution ponds)

       

      4. (Patent
        No. 04-97-0039 dated January 30, 1997) The
        following tracts located in Township 13 South,
        Range 19 East, SBB&M, Imperial County, California:

       

      Section
        8:     Lots
        8 and 9 

      Section
        17:   Lots
        1, 2 and 3, SE1⁄4SW1⁄4SW1⁄4SE1⁄4, S1⁄2SE1⁄4SW1⁄4SE1⁄4, E1⁄2NE1⁄4SE1⁄4SE1⁄4,

                  

        SW1⁄4NE1⁄4SE1⁄4SE1⁄4,
          S1⁄2SE1⁄4SE1⁄4

      

       

      5.
        The following tract located in Township 13 South, Range 19 East, SBB&M,
        Imperial County, California:

       

      Section
        16:   All (but
        excluding reserved mineral rights within the N1⁄2NE1⁄4NW1⁄4)

       

      
        
          
          

        

        
          Page
            99

          
            

          

        

        
          
          

        

      

       

    

    Unpatented
      Mining Claims Owned by Bonnie Kovac, James Harbison and
Stephen
      Galambos Jr., and Leased by Western Mesquite Mines,
      Inc.

     

    Western
      Mesquite Mines, Inc. leases the following-described mining claims located within
      Section 6, Township
      13 South, Range 19 East, SBB&M, Imperial County, California, from Bonnie
      Kovac, James Harbison
      and Stephen Galambos Jr. pursuant to a Mineral Lease and Purchase Option
      Agreement dated October 20, 1982, as amended:

     

    
      	
               

            	
               

            	
               

            	
               

            	
              Notice
                of Location and Last Amended

              Notice
                of Location Recorded in Official

              Records
                of Imperial County, California

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
              Original

            	
               

            	
              Amended

            	
               

            
	
              Name
                of Claim

            	
               

            	
              BLM
                Serial No. (CAMC) 

            	
               

            	
              Book

            	
               

            	
              Pages

            	
               

            	
              Book
                

            	
               

            	
              Pages

            	 
	
              SINGER
                1

            	 	 	
              86399

            	 	 	
              1465

            	 	 	
              1638

            	 	 	
              1492
                

            	 	 	
              1544-46

            	 
	
              SINGER
                2

            	 	 	
              86400

            	 	 	
              1465

            	 	 	
              1639

            	 	 	
              1492
                

            	 	 	
              1547-48

            	 
	
              SINGER
                3

            	 	 	
              86401

            	 	 	
              1465

            	 	 	
              1640

            	 	 	
              1492
                

            	 	 	
              1549-50

            	 
	
              SINGER
                4

            	 	 	
              86402

            	 	 	
              1465

            	 	 	
              1641

            	 	 	
              1492
                

            	 	 	
              1551-52

            	 
	
              MESQ
                45

            	 	 	
              109001

            	 	 	
              1483

            	 	 	
              1097

            	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        Page
          100

        
          

        

      

      
        
        

      

    

     

    Patented
      (Fee) Tracts Owned by California State Lands Commission, and
Leased
      by
      Western Mesquite Mines, Inc.

     

    Western
      Mesquite Mines, Inc. leases the following-described tracts located within
      Township 13 South, Range
      19
      East, SBB&M, Imperial County, California, from the California State Lands
      Commission pursuant to a Mineral Extraction Lease (No. PRC 8039.2) issued
      October 1, 2002:

    

      
        	
                Section
                  5: 

              	 	
                Lots
                  1-10 

              
	
                Section
                  6:

              	 	
                Lots
                  1-10

              

      

       

      
        
          
          

        

        
          Page
            101

          
            

          

        

        
          
          

        

      

       

    

    Easements
      and Rights-of-Way Held by Western Mesquite Mines, Inc.

     

    Western
      Mesquite Mines, Inc. holds the following easements and
      rights-of-way:

     

    1.
      Right-of-Way No. CACA-019129 issued
      by
      the United States of America on September 12, 1986 for a water pipeline and
      related power line and access road to access, transport and use water from
      three
      water wells. The right-of-way crosses over the following-described federal
      land
      in Township 13 South, Range 19 East, SBB&M, Imperial County,
      California:

     

    
      	
              Section
                17:

            	 	
              S1⁄2SE1/4

            
	
              Section
                20:

            	 	
              NE1⁄4

            
	
              Section
                21:

            	 	
              Lots
                5 and 7,E1/2SW1⁄4

            
	
              Section
                28:

            	 	
              W1/2

            
	
              Section
                33:

            	 	
              Lots
                2 and 6,E1/2NW1⁄4

            

    

     

    
      
        
        

      

      
        Page
          102

        
          

        

      

      
        
        

      

       

    

    Water
      Rights Held by Western Mesquite Mines, Inc.

     

    Western
      Mesquite Mines, Inc. holds the following water rights:

     

    1.
      Groundwater Rights. Under
      California law, ordinary groundwater usage is not regulated by the State
      Water Resources Control Board the way surface water rights are. Rather,
      percolating groundwater
      is unregulated by the state and is available to any overlying land user who
      can
      recover it. Landowners
      overlying percolating groundwater may use it on an equal and correlative basis.
      All property
      owners above a common aquifer possess a shared right to reasonable use of the
      groundwater
      aquifer. Western Mesquite Mines, Inc. (WMMI) has constructed three groundwater
      wells (two of which are currently in operation) located on the following
      millsite claims which are owned by WMMI:

     

    Patented
      Millsite Claims

     

    (Patent
      No. 04-88-0044 dated July 18, 1988, Survey No. 6921) The
      following patented millsite claims
      located within Section 33, Township 13 South, Range 19 East, and Section 4,
      Township 14 South,
      Range 19 East, SBB&M, Imperial County, California:

     

    MILS
      261 

    MILS
      262 

    MILS
      265 

    MILS
      267 

    MILS
      269

     

    Unpatented
      Millsite Claims

     

    The
      following unpatented millsite claims located within Section 33, Township 13
      South, Range 19 East,
      and
      Section 4, Township 14 South, Range 19 East, SBB&M, Imperial County,
      California:

    

      
        	
                 

              	
                 

              	
                 

              	
                 

              	
                Notice
                  of Location and Last Amended

                Notice
                  of Location Recorded in Official

                Records
                  of Imperial County, California

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                Original

              	
                 

              	
                Amended

              	
                 

              
	
                Name
                  of Claim

              	
                 

              	
                BLM
                  Serial No. (CAMC) Pages

              	
                 

              	
                Book

              	
                 

              	
                Pages

              	
                 

              	
                Book

              	 
	
                MILS
                  260

              	 	 	
                171264

              	 	 	
                1549

              	 	 	
                1113

              	 	 	 	 
	
                MILS
                  263

              	 	 	
                171267

              	 	 	
                1549

              	 	 	
                1116

              	 	 	 	 
	
                MILS
                  264

              	 	 	
                171268

              	 	 	
                1549

              	 	 	
                1117

              	 	 	 	 
	
                MILS
                  266

              	 	 	
                171270

              	 	 	
                1549

              	 	 	
                1119

              	 	 	 	 
	
                MILS
                  268

              	 	 	
                171272

              	 	 	
                1549

              	 	 	
                1121

              	 	 	 	 
	
                MILS
                  270

              	 	 	
                171274

              	 	 	
                1549

              	 	 	
                1123

              	 	 	 	 

      

    

     

    These
      wells (known as the Vista Wellfield) provide the water used for WMMI's mining
      and mineral processing
      operations. Drinking water for mine personnel is brought to the site by a
      commercial vendor.
      A
      water transmission pipeline and a related power line and access road which
      cross
      over federal
      land from the Vista Wellfield approximately 3 miles north to the mine property
      are authorized under the federal right-of-way (CACA-019129) listed above. WMMI
      has obtained authorization from Imperial
      County to operate the subject water wells pursuant to a Conditional Use Permit
      (No. 98-0022(B))
      dated December 5, 2003 (CUP). The CUP is recorded in Imperial County as Entry
      No. 2003-039727.
      The CUP authorizes the use of one or more water wells for a period of 20 years
      to provide
      water for operation of the mine property and for operation of the adjacent
      sanitary landfill.

     

    Condition
      S-81 of the CUP limits the total aggregate extraction and consumption of water
      from the wells
      for
      operation of the mine and landfill to 4,033 acre-feet per year. WMMI must file
      with Imperial County
      an
      annual report to identify the amount of water used from the wells. The most
      recent such annual
      report shows the total amount of water use as 490 acre-feet, well below the
      allowable limit.

     

    
      
        
        

      

      
        Page
          103

        
          

        

      

      
        
        

      

    

    

    Schedule
      3 - Drawdown Notice

     

    To:
      Investec Bank (UK) Limited 

    From:
      Western Mesquite Mines, Inc.

    *
      [date]

     

    Dear
      Sirs,

     

    Credit
      Agreement dated 30 March 2007 in relation to the Mesquite Gold Mine Project
      (the
      "Credit Agreement")

     

    Terms
      defined in the Credit Agreement (including by reference) have the same meaning
      in this notice. We
      request a US$ ** Advance to be drawn down under the Facility as
      follows:

     

    
      	1.	
              Amount
                of Advance: [US$/[**]

            

    

     

    
      	2.	
              Drawdown
                Date:

            

    

     

    
      
        
          	3.	
                  Payment
                    instructions:

                

        

      

    

    
      	 	
              (if applicable)

            

    

     

    
      	4.	
              Interest
                Period:

            

    

     

    We
      hereby
      represent and warrant that the entire proceeds of the Advance will be utilised
      as follows:

     

    **

     

    and
      we
      attach the relevant Costs Certificate, together with invoices for costs in
      excess of US$250,000 as evidence of our liability to pay the same.

     

    We
      confirm that today and on the Drawdown Date:

     

    
      	(a)	
              the
                representations and warranties in Clause 10 to be repeated are and
                will be
                correct; and

            

    

     

    
      
        
          	(b)	
                  no
                    Default or Trigger has occurred and is continuing or will occur
                    on the
                    making of the Advance;
                    and

                

        

      

    

     

    
      
        
          	(c)	
                  each
                    Advance previously drawn by us has been utilised [solely in accordance
                    with the relative Drawdown
                    Notice for the same] or
                    [description of other
                    application].

                

        

      

    

     

    Signed

     

    For
      and
      on behalf of 

    Western
      Mesquite Mines, Inc.

     

    
      
        
        

      

      
        Page
          104

        
          

        

      

      
        
        

      

    

     

    Schedule
      4 - Costs Certificate

     

    [ON
      LETTERHEAD OF WESTERN MESQUITE MINES, INC.]

     

    [Date]

     

    
      	To:	
              Investec
                Bank (UK) Limited as Agent

            

    

     

    
      	Attention:	
              **

            

    

     

    
      	[To:	
              **     as
                Account Bank

            

    

     

    
      	Attention:	
              **     ]

            

    

     

    Mesquite
      Gold Mine Project Costs Certificate

     

    Terms
      used in this certificate shall have the same meaning given to them in the credit
      agreement dated 30
      March
      2007 between (among others) ourselves and yourselves.

     

    We
      certify that in relation to the application for payment and the Drawdown Notice
      dated [** ]
      the
      sums
      specified as paid or due to be payable are part of [Permitted Capital
      Expenditure][Operating Costs]
      that has become payable in the amounts and to the parties set out below and
      there are no disputes
      of which we are aware in relation to such sums.

     

    US$**     to
      **

     

    The
      value
      of the works completed as at the date of this certificate is [**]
      .

     

    We
      further confirm that no previous Costs Certificate has been issued by or on
      behalf of us in relation to the
      items
      certified for payment in this Costs Certificate.

     

    Yours
      sincerely

     

      
        

      

    

    For
      and
      on behalf of 

    Western
      Mesquite Mines, Inc.

     

    
      
        
        

      

      
        Page
          105

        
          

        

      

      
        
        

      

    

     

    Schedule
      5 - Compliance Certificate

     

    
      	To:	
              the
                Agent

            

    

     

    
      	Date:	
               

            

    

     

    
      	Dear
              Sirs	
               

            

    

     

    Mesquite
      Gold Mine Project

     

    We
      refer
      to a credit agreement (the Credit
      Agreement) dated
      30
      March 2007 between (amongst others) ourselves
      as borrower, Investec Bank (UK) Limited as Arranger, Investec Bank (UK) Limited
      as Agent, and
      the
      Banks and the Hedging Banks (each as defined therein).

     

    Terms
      used herein and not otherwise defined shall have the meaning given them in
      the
      Credit Agreement.

     

    We
      certify that as at [specify
      last date being the last day of the financial year]:

     

    
      
        
          	(a)	
                  the
                    representations and warranties required to be repeated pursuant
                    to the
                    terms of Clause 10 were
                    true and correct;
                    and

                

        

      

    

     

    
      	(b)	
              no
                Default had occurred and was continuing as at such date.1

            

    

     

    Signed

     

    For
      and
      on behalf of 

    Western
      Mesquite Mines, Inc.

     

    
      

    

    1
      If a
      certificate in this form can not be given, details must be given of any
      representations or warranties which are not
      true
      or correct or (where a Default or Potential Default has occurred and is
      continuing) details of such Default or Potential
      Default.

     

    
      
        
        

      

      
        Page
          106

        
          

        

      

      
        
        

      

    

     

    Schedule
      6 - Repayment Schedule

    
      
        	
                Repayment
                  Date

              	 	 	
                Repayment
                  Instalment

              	 
	
                31
                  December 2008

              	 	 	
                7.00

              	
                %

              
	
                30
                  June
                  2009

              	 	 	
                7.00

              	
                %

              
	
                31
                  December
                  2009

              	 	 	
                6.50

              	
                %

              
	
                30
                  June
                  2010

              	 	 	
                8.00

              	
                %

              
	
                31
                  December
                  2010

              	 	 	
                10.00

              	
                %

              
	
                30
                  June
                  2011

              	 	 	
                6.25

              	
                %

              
	
                31
                  December
                  2011

              	 	 	
                6.50

              	
                %

              
	
                30
                  June
                  2012

              	 	 	
                6.00

              	
                %

              
	
                31
                  December
                  2012

              	 	 	
                6.50

              	
                %

              
	
                30
                  June
                  2013

              	 	 	
                6.50

              	
                %

              
	
                31
                  December
                  2013

              	 	 	
                6.00

              	
                %

              
	
                30
                  June
                  2014

              	 	 	
                7.50

              	
                %

              
	
                31
                  December
                  2014

              	 	 	
                16.25

              	
                %

              

      

    

    

    
      
        
        

      

      
        Page
          107

        
          

        

      

      
        
        

      

    

     

    Schedule
      7 - Form of Transfer Certificate

     

    Transfer
      Certificate

     

    **         [date]
To
      the
      Agent

     

    This
      transfer certificate (Transfer
      Certificate) relates
      to a credit agreement relating to a US$105,000,000
      Term Loan Facility dated 30 March 2007 between Western Mesquite Mines, Inc.
      as
      Borrower, Western Goldfields, Inc. as Guarantor, the Banks and Hedging Banks,
      the Arranger, the Security
      Trustee and yourselves (the Credit
      Agreement, which
      term shall include any amendments or supplements
      to it).

     

    Terms
      defined and references construed in the Credit Agreement shall have the same
      meaning and construction in this Transfer Certificate.

     

    
      	1	
              ** [insert
                full name of Existing Bank] (the
                Existing
                Bank):

            

    

     

    
      
        
          	
                	(a)	
                  confirms
                    that to the extent that details appear in the schedule to this
                    Transfer
                    Certificate under
                    the headings "Existing Bank's Commitment" and "Existing Bank's
                    Participation in the
                    Loan", those details accurately summarise its Commitment and
                    its
                    Participation in the Loan
                    all or part of which is to be transferred;
                    and

                

        

      

    

     

    
      
        	
              	(b)	
                requests
                  ** [insertfull
                  name of Bank Transferee] (the
                  Bank
                  Transferee) to
                  accept and procure, in accordance with Clause 22 of the Credit
                  Agreement,
                  the substitution
                  of the Existing Bank by the Bank Transferee in respect of the amount
                  of
                  its Commitment
                  and its Participation in the Loan to be transferred as specified
                  in the
                  schedule
                  to this Transfer Certificate and of a corresponding part of its
                  rights and
                  obligations
                  under the Intercreditor Deed [and **]
                  by signing this Transfer Certificate.

              

      

    

     

    
      
        
          
            	2	
                    The
                      Bank Transferee requests each of the other parties to the Credit
                      Agreement
                      and to the Intercreditor Deed [and **    ]
                      to accept this executed Transfer Certificate as being delivered
                      under and for the purposes of Clause 22 of the Credit Agreement
                      and clause
                      [18.3] of the
                      Intercreditor Deed so as to take effect in accordance with
                      such Clause 22
                      on **       [insert
                      date of
                      transfer].

                  

          

        

      

    

     

    
      	3	
              The
                Bank Transferee:

            

    

     

    
      
        
          	
                	(a)	
                  confirms
                    that it has received a copy of each of the Financing Documents
                    together
                    with such
                    other documents and information as it has requested in connection
                    with
                    this transaction;

                

        

      

    

     

    
      
        
          	
                	(b)	
                  confirms
                    that it has not relied and will not rely on the Existing Bank
                    or any other
                    Financing
                    Party to check or enquire on its behalf into the legality, validity,
                    effectiveness, adequacy,
                    accuracy or completeness of any such documents or information;
                    and

                

        

      

    

     

    
      
        
          	
                	(c)	
                  agrees
                    that it has not relied and will not rely on the Existing Bank
                    or any other
                    Financing Party
                    to assess or keep under review on its behalf the financial condition,
                    creditworthiness,
                    condition, affairs, status or nature of the Borrower or any other
                    party to
                    the
                    Financing
                    Documents.

                

        

      

    

     

    
      
        
          
            	4	
                    The
                      Bank Transferee undertakes with the Existing Bank and each
                      of the other
                      parties to the Credit
                      Agreement and to the Intercreditor Deed [and **    ]
                      that it will perform, in accordance
                      with its terms, all those obligations which, by the terms of
                      the Credit
                      Agreement and the
                      Intercreditor Deed respectively, will be assumed by it upon
                      delivery of
                      the executed
                      copy of this
                      Transfer Certificate to the
                      Agent.

                  

          

        

      

    

    

    
      
        
        

      

      
        Page
          108

        
          

        

      

      
        
        

      

    

    
      
        
          	5	
                  On
                    execution of this Transfer Certificate by the Agent on their
                    behalf, the
                    other parties to the Credit
                    Agreement and to the Intercreditor Deed [and **     ]
                    accept the Bank Transferee as
                    a party to the Credit Agreement and to the Intercreditor Deed
                    respectively
                    in substitution for the
                    Existing Bank with respect to all those rights and/or obligations
                    which,
                    by the terms of the Credit
                    Agreement, will be assumed by the Bank Transferee after delivery
                    of the
                    executed copy of this
                    Transfer Certificate to the
                    Agent.

                

        

      

    

     

    
      
        
          	6	
                  None
                    of the Existing Bank or any other party to the Credit Agreement
                    or the
                    Intercreditor Deed [and
                    **    ]:

                

        

      

    

     

    
      
        
          	
                	(a)	
                  makes
                    any representation or warranty or assumes any responsibility
                    with respect
                    to the legality,
                    validity, effectiveness, adequacy or enforceability of any of
                    the
                    Relevant Documents;
                    or

                

        

      

    

     

    
      
        
          	
                	(b)	
                  assumes
                    any responsibility for the financial condition of the Borrower
                    or any
                    other party to
                    any Relevant Document or any other document or for the performance
                    and
                    observance
                    by the Borrower or any other party to any Relevant Document or
                    any other
                    document
                    of its or their obligations and any and all conditions and warranties,
                    whether express
                    or implied by Law or otherwise, are
                    excluded.

                

        

      

    

     

    
      
        
          
            	7	
                    The
                      Bank Transferee confirms that its Facility Office and address
                      for notices
                      for the purposes of the
                      Financing Documents are as set out in the schedule to this
                      Transfer
                      Certificate.

                  

          

        

      

    

     

    
      
        
          	8	
                  The
                    Existing Bank gives notice to the Bank Transferee (and the Bank
                    Transferee
                    acknowledges and
                    agrees with the Existing Bank) that the Existing Bank is under
                    no
                    obligation to re-purchase (or
                    in any other manner to assume, undertake or discharge any obligation
                    or
                    liability in relation to)
                    the transferred Commitment and Participation at any time after
                    this
                    Transfer Certificate shall have
                    taken
                    effect.

                

        

      

    

     

    
      
        
          	9	
                  Following
                    the date upon which this Transfer Certificate shall have taken
                    effect,
                    without limiting the
                    terms of this Transfer Certificate, each of the Bank Transferee
                    and
                    the
                    Existing Bank acknowledges
                    and confirms to the other that, in relation to the transferred
                    Commitment
                    and Participation,
                    variations, amendments or alterations to any term of any Financing
                    Document arising
                    in connection with any renegotiation or rescheduling of the obligations
                    under the Credit Agreement
                    shall apply to and be binding on the Bank Transferee
                    alone.

                

        

      

    

     

    
      	10	
              This
                Transfer Certificate is governed by and shall be construed in accordance
                with English law.

            

    

     

    
      
        
        

      

      
        Page
          109

        
          

        

      

      
        
        

      

    

    The
      Schedule

    

      
        	 	 
	
                Existing
                  Bank's Commitment

              	
                Amount
                  of Commitment Transferred

              
	 	 
	 	 
	
                Existing
                  Bank's Participation in the Loan

              	
                Amount
                  of Participation
                  Transferred

              

      

    

     

    **     [insert
      full name of Bank Transferee]

     

    
      
        	Facility Office	 	Address for notices
	**	 	
                **    [address]

              
	 	 	Attention:    **
	 	 	Fax:        **

      

    

     

    
      	
              **     [Bank
                Transferee]

            	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              (Duly
                authorised)

            	 	 	
            
	
            	 	 	
            
	
              **     [Existing
                Bank]

            	 	 	 
	 	 	 	 
	By:	 	 	 
	
              
                
(Duly
                authorised)

            	 	 	 

    

     

    The
      Agent
      on behalf of itself and all other parties to the Credit Agreement and the
      Intercreditor Deed [and
      **      ]

     

    
      	 	 	 	 
	By:	 	 	
            
	
              
                

              

              (Duly
                authorised)

            	 	 	
            
	
            	 	 	
            
	Dated:	 	 	 

    

     

    
      
        
        

      

      
        Page
          110

        
          

        

      

      
        
        

      

    

     

    Schedule
      8 - Not Used

     

    
      
        
        

      

      
        Page
          111

        
          

        

      

      
        
        

      

    

     

    Schedule
      9 - Mandatory Cost formulae

    
       

      
        	
                1

              	
                The
                  Mandatory Cost is an addition to the interest rate to compensate
                  the Banks
                  for the cost of compliance
                  with (a) the requirements of the Bank of England and/or the Financial
                  Services Authority
                  (or, in either case, any other authority which replaces all or
                  any of its
                  functions) or (b) the
                  requirements of the European Central
                  Bank.

              

      

       

      
        	
                2

              	
                On
                  the first day of each Interest Period (or as soon as possible thereafter)
                  the Agent shall calculate, as a percentage rate, a rate (the Additional
                  Cost Rate) for
                  each Bank, in accordance with
                  the paragraphs set out below. The Mandatory Cost will be calculated
                  by the
                  Agent as a weighted
                  average of the Banks' Additional Cost Rates (weighted in proportion
                  to the
                  percentage participation of each Bank in the relevant Loan) and
                  will be
                  expressed as a percentage rate per annum.

              

      

       

      
        	
                3

              	
                The
                  Additional Cost Rate for any Bank lending from a Facility Office
                  in a
                  Participating Member State
                  will be the percentage notified by that Bank to the Agent. This
                  percentage
                  will be certified by
                  that Bank in its notice to the Agent to be its reasonable determination
                  of
                  the cost (expressed as
                  a percentage of that Bank's participation in all Loans made from
                  that
                  Facility Office) of complying
                  with the minimum reserve requirements of the European Central Bank
                  in
                  respect of loans
                  made from that Facility Office.

              

      

       

      
        	
                4

              	
                The
                  Additional Cost Rate for any Bank lending from a Facility Office
                  in the
                  United Kingdom will be
                  calculated by the Agent as follows:

              

      

       

      Ex
        0.01     per
        cent per
        annum 

        
300

       

      Where:

      
         

        
          	
                	A	
                  is
                    the percentage of Eligible Liabilities (assuming these to be
                    in excess of
                    any stated minimum)
                    which that Bank is from time to time required to maintain as
                    an interest
                    free cash
                    ratio deposit with the Bank of England to comply with cash ratio
                    requirements.

                

        

         

        
          	
                	B	
                  is
                    the percentage rate of interest (excluding the Margin and the
                    Mandatory
                    Cost and, if the
                    Loan is an Unpaid Sum, the additional rate of interest specified
                    in Clause
                    5.4) payable
                    for the relevant Interest Period on the
                    Loan.

                

        

         

        
          	
                	C	
                  is
                    the percentage (if any) of Eligible Liabilities which that Bank
                    is
                    required from time to time to maintain as interest bearing Special
                    Deposits with the Bank of England.

                

        

         

        
          	
                	D	
                  is
                    the percentage rate per annum payable by the Bank of England
                    to the Agent
                    on interest
                    bearing Special Deposits.

                

        

         

        
          	
                	E	
                  is
                    designed to compensate the banks for amounts payable under the
                    Fees Rules
                    and is calculated
                    by the Agent as being the average of the most recent rates of
                    charge
                    supplied by
                    the Reference Banks to the Agent pursuant to paragraph 7 below
                    and
                    expressed in pounds
                    per £1,000,000.

                

        

      

       

      
        	5	
                For
                  the purposes of this Schedule:

              

      

       

      
        
          
            	
                  	(a)	
                    Eligible
                      Liabilities and
                      Special
                      Deposits have
                      the meanings given to them from time to time
                      under or pursuant to the Bank of England Act 1998 or (as may
                      be
                      appropriate) by the
                      Bank of England;

                  

          

        

      

       

      
        
          
            	
                  	(b)	
                    Fees
                      Rules means
                      the rules on periodic fees contained in the FSA Supervision
                      Manual or such
                      other Law or regulation as may be in force from time to time
                      in respect of
                      the payment of fees for the acceptance of
                      deposits;

                  

          

        

      

       

      
        
          
          

        

        
          Page
            112

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                  	(c)	
                    Fee
                      Tariffs means
                      the fee tariffs specified in the Fees Rules under the activity
                      group A.1
                      Deposit
                      acceptors (ignoring any minimum fee or zero rated fee required
                      pursuant to
                      the Fees Rules but taking into account any applicable discount
                      rate);
                      and

                  

          

        

      

       

      
        
          
            	
                  	(d)	
                    Tariff
                      Base has
                      the meaning given to it in, and will be calculated in accordance
                      with, the
                      Fees
                      Rules.

                  

          

        

      

       

      
        	
                6

              	
                In
                  application of the above formulae, A, B, C and D will be included
                  in the
                  formulae as percentages (i.e. 5 per cent will be included in the
                  formula
                  as 5 and not as 0.05). A negative result obtained by subtracting
                  D from B
                  shall be taken as zero. The resulting figures shall be rounded
                  to four
                  decimal places.

              

      

       

      
        	
                7

              	
                If
                  requested by the Agent, each Reference Bank shall, as soon as practicable
                  after publication by the
                  Financial Services Authority, supply to the Agent, the rate of
                  charge
                  payable by that Reference
                  Bank to the Financial Services Authority pursuant to the Fees Rules
                  in
                  respect of the relevant financial year of the Financial Services
                  Authority
                  (calculated for this purpose by that Reference
                  Bank as being the average of the Fee Tariffs applicable to that
                  Reference
                  Bank for that
                  financial year) and expressed in pounds per £1,000,000 of the Tariff Base
                  of that Reference Bank.

              

      

       

      
        	
                8

              	
                Each
                  Bank shall supply any information required by the Agent for the
                  purpose of
                  calculating its Additional Cost Rate. In particular, each Bank
                  shall
                  supply the following information on or before the date on which
                  it becomes
                  a Bank:

              

      

       

      
        	
              	(a)	
                the
                  jurisdiction of its Facility Office;
                  and

              

      

       

      
        	
              	(b)	
                any
                  other information that the Agent may reasonably require for such
                  purpose.

              

      

       

      Each
        Bank
        shall promptly notify the Agent of any change to the information provided
        by it
pursuant
        to this paragraph.

       

      
        	
                9

              	
                The
                  percentages of each Bank for the purpose of A and C above and the
                  rates of
                  charge of each Reference
                  Bank for the purpose of E above shall be determined by the Agent
                  based
                  upon the information
                  supplied to it pursuant to paragraphs 7 and 8 above and on the
                  assumption
                  that, unless a Bank notifies the Agent to the contrary, each Bank's
                  obligations in relation to cash ratio deposits and Special Deposits
                  are
                  the same as those of a typical bank from its jurisdiction of incorporation
                  with a Facility Office in the same jurisdiction as its Facility
                  Office.

              

      

      

      
        
          
          

        

        
          Page
            113

          
            

          

        

        
          
          

        

      

       

      Schedule
        10 - Permits

       

      Part
        A

       

      
        	
                1.

              	
                Conditional
                  Use Permit #98-0022. Issued
                  by: Imperial County Planning and Building Development
                  Services March 27, 2002.

              

      

       

      
        	
                2.

              	
                Reclamation
                  Plans. Issued
                  by: State of California, Office of Mine Reclamation. The Mesquite
                  Mine
                  currently has three approved Reclamation
                  Plans:

              

      

       

      - Reclamation
        Plan 23-84 for the Mesquite Project (Mine I.D. #91-13-0019);

       

      - Reclamation
        Plan 28-88 for the VCR Project (Mine I.D. #91-13-0020);

       

      - Reclamation
        Plan 98-0004 for the Mesquite Expansion Project.

       

      
        	
                3.

              	
                Waste
                  Discharge Order 95-016 - Cyanide management. Issued
                  by: California Regional Water Quality Control Board - Colorado
                  River Basin
                  Region.

              

      

       

      
        	4.	
                Air
                  Quality Permit No. 1920-C. Issued
                  by: Imperial County Air Pollution Control
                  District

              

      

       

      
        	
                5.

              	
                Storm
                  Water General Permit No. CAS00001 - MINE ID #713I018532.
                  Issued
                  by: California Regional Water Quality Control Board - Colorado
                  River Basin
                  Region.

              

      

       

      
        	
                6.

              	
                Streambed
                  Alteration Agreement 6-097-00 ("1603 Permit"). Issued
                  by: California Department
                  of Fish and Game.

              

      

       

      
        	
                7.

              	
                Incidental
                  Take Permit 2081-2003-011-06. Issued
                  by: California Department of Fish and Game.(with Mitigation, Monitoring
                  and Reporting Plan (MMRP)).

              

      

       

      
        	
                8.

              	
                Spill
                  Prevention Control and Countermeasure (SPCC) Plan. Issued
                  by: California Regional Water
                  Quality Control Board - Colorado River Basin
                  Region

              

      

       

      
        
          
            	9.	
                    Biological
                      Opinion 1-6-92-F-22R3 Issued
                      by: US Fish & Wildlife
                      Service

                  

          

        

      

       

      
        	
                10.

              	
                Bureau
                  of Land Management Decision Document dated January 30,1985 approving
                  Mesquite
                  Project Issued
                  by: Bureau of Land Management.

              

      

       

      
        	
                11.

              	
                Bureau
                  of Land Management Decision Document dated November 4,1987 approving
                  VCR
                  Project. Issued
                  by: Bureau of Land Management.

              

      

       

      
        	
                12.

              	
                Bureau
                  of Land Management Decision Document dated July 16, 2002 approving
                  Mesquite Expansion
                  Project. Issued
                  by: Bureau of Land Management.

              

      

       

      
        	13.	
                Hazardous
                  Material Business Plans. Issued
                  by: Imperial County CUPA Program

              

      

       

      
        	14.	
                State
                  Mineral Extraction Lease. Issued
                  by: State Lands Commission.

              

      

       

      
        	
                15.

              	
                Right-of
                  Way Issued
                  by: Bureau of Land Management. For the utility corridor between
                  the Vista
                  Well Field and the site.

              

      

      

      
        
          
          

        

        
          Page
            114

          
            

          

        

        
          
          

        

      

      Part
        B

       

      
        	1.	
                Bonding/
                  Reclamation Plans.

              

      

       

      Updated
        bonding will be put in place prior to the commencement of mining.

       

      
        	2.	
                RE:
                  Air Quality Permit No.
                  1920-C.

              

      

       

      While
        this air quality permit approves all current construction and mining activities,
        modifications to this permit will be required when an emergency generator
        is
        installed.

       

      
        	3.	
                Explosives
                  License. To
                  be issued by the Bureau of Alcohol, Tobacco, and
                  Firearms.

              

      

       

      
        	
                4.

              	
                Water
                  System Permit. To
                  be issued by the Imperial Co. Dept of Health. Currently, all drinking
                  water is brought to the site by a
                  vendor.

              

      

       

      
        	
                5.

              	
                Renewal/
                  Update of Waste Discharge Order 95-016 - Cyanide management
                  -
                  for purposes of the Pad 6
                  expansion.

              

      

       

      
        	6.	
                Renewal/Update
                  of Waste Discharge Order 93-043 - Inert
                  Landfill.

              

      

       

      
        	
                7.

              	
                Right-of
                  Way. To
                  be issued by Bureau of Land Management to replace the existing
                  surface
                  water
                  line.

              

      

      

      
        
          
          

        

        
          Page
            115

          
            

          

        

        
          
          

        

      

       

      Schedule
        11 - Reclamation Bonds

      

        
          	
                  Agency

                	 	
                  Reference

                	 	
                  Bond
                    Number

                	 	
                  Current
                    Bond Amount

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  1.Imperial
                    County, OMR, BLM

                	 	 	
                  Reclamation
                    Plan No. 23-84 (Mesquite)

                	
                   

                	 	
                  ESD7315361

                	 	
                  $

                	
                  1,317,800

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  2.Imperial
                    County, OMR, BLM

                	 	 	
                  Reclamation
                    Plan No. 2888 (VCR)

                	
                   

                	 	
                  ESD7315360

                	 	
                  $

                	
                  1,067,000

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  3.Imperial
                    County, OMR, BLM

                	 	 	
                  Plan
                    No. 23-84 (Tension Cracks)

                	
                   

                	 	
                  ESD7315362

                	 	
                  $

                	
                  61,783

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  4.Bureau
                    of Land Management

                	 	 	
                  Surface
                    Management 

                	 	 	
                  ESD7315358

                	 	
                  $

                	
                  5,637,800

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  5.Calif.
                    State Lands Commission

                	 	 	
                  Mineral
                    Extraction Lease PRC 8039.2 

                	 	 	
                  ESD7315359

                	 	
                  $

                	
                  50,000

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  6.Calif.
                    Regional Water Quality Control Board

                	 	 	
                  Closure
                    Performance Bond 

                	 	 	
                  ESD7315363

                	 	
                  $

                	
                  550,000

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  TOTAL

                	 	 	 	 	 	 	 	
                  $

                	
                  8,684,383

                	 

        

      

       

      
        
          
          

        

        
          Page
            116

          
            

          

        

        
          
          

        

      

       

      Schedule
        12 - Form of Consent to Assignment

       

      FORM
        OF CONSENT AND AGREEMENT

       

      The
        undersigned hereby (a) acknowledges notice of, and consents in all respects
        to,
        the pledge and assignment
        from Western Mesquite Mines, Inc (the "Grantor")
        to
        Investec Bank (UK) Limited, as Security Trustee (the "Security
        Trustee"), of
        all of
        the Grantor's right, title and interest in, to and under the
        Assigned Agreement (as defined below), (b) acknowledges that the Grantor
        has
        provided it with notice
        of
        the right of the Security Trustee in the exercise of its rights and remedies
        to
        make all demands, give
        all
        notices, take all actions and exercise all rights of the Grantor under the
        Assigned Agreement as provided below, and (c) agrees with the Security Trustee
        that:

       

      (1) A
        true
        copy of the agreement between the undersigned and the Grantor dated [•] (the
"Assigned
        Agreement”), including,
        without limitation, all amendments, modifications, restatements and supplements
        is attached hereto as Schedule 1. The Assigned Agreement is in full force
        and
        effect, and the undersigned is not aware of any default under the Assigned
        Agreement or any event that would give any party the right to terminate or
        rescind the Assigned Agreement.
        No prepayments have been made of any amounts to become due under the
Assigned
        Agreement.

       

      (2) The
        undersigned agrees that upon receipt from the Security Trustee of notice
        that
        an
        "event of default" has occurred and is continuing, it will make all payments
        to
        be made by it under or in connection with the Assigned Agreement as directed
        by
        Security Trustee.

       

      (3) The
        undersigned will not, without the prior written consent of the Security
Trustee,
        amend, amend and restate, supplement or otherwise modify the Assigned Agreement,
        except, in each case, to the extent otherwise permitted under the credit
        agreement entered into between
        Grantor and the Security Trustee (the relevant portions of which will be
        provided to the undersigned
        by the Grantor in the event of any proposed amendment, amendment and
restatement,
        supplement or other modification to be entered into by the undersigned and
        the
Grantor).

       

      (4) In
        the
        event of a default by the Grantor in the performance of any of its obligations
        under the Assigned Agreement, or upon the occurrence or non-occurrence of
        any
event
        or
        condition under the Assigned Agreement which would immediately or with the
        passage of any applicable grace period or the giving of notice, or both,
        enable
        the undersigned to terminate
        or suspend its obligations under the Assigned Agreement, the undersigned
        shall
        not terminate
        the Assigned Agreement until it first gives the Security Trustee written
        notice
        of the default and permits the Security Trustee to cure the default within
        a
        period of 30 days after the later
        of
        (i) notice of default having been given to the Security Trustee by the
        undersigned and (ii) the
        expiration of the applicable cure period provided in the Assigned Agreement
        for
        the Grantor to cure the default.

       

      (5) Except
        as
        specifically provided in this Consent and Agreement, the Security Trustee
        shall have no liability or obligation under the Assigned Agreement as a result
        of this Consent
        and Agreement.

       

      This
        Consent and Agreement shall be binding upon the undersigned and its successors
        and assigns, and shall inure to the benefit of the Security Trustee and it
        successors, transferees and assigns. This Consent and Agreement shall be
        governed by and construed in accordance with the laws of the State of
[ ].IN
        WITNESS WHEREOF, the undersigned has duly executed this Consent and Agreement
        as
of
        the
        date set opposite its name below.

       

      Dated:
        [·] [NAME OF OBLIGOR] 

       

      
        	 	 	 	 
	By:	 	 	
              
	
                
                  

                

                Name:

              	 	 	
              
	
                Title:

              	 	 	
              

      

       

      
        
          
          

        

        
          Page
            117

          
            

          

        

        
          
          

        

      

       

      Schedule
        13 - Contract Packages

       

      
        	
                Contract
                  Number

              	 	
                Contract
                  Description

              
	
                1

              	 	
                Mesquite
                  direct construction

              
	
                2

              	 	
                Fencing

              
	
                3

              	 	
                Instrumentation

              
	
                4

              	 	
                Communications

              
	
                5

              	 	
                Demolition

              
	
                6

              	 	
                Dismantle
                  and re-erect

              
	
                7

              	 	
                Modular
                  buildings

              
	
                8

              	 	
                Pad
                  expansion liner

              
	
                9

              	 	
                Concrete

              
	
                10

              	 	
                Architectural
                  truckshop

              
	
                11

              	 	
                Carbon
                  columns circuit

              
	
                12

              	 	
                Lime
                  silos

              
	
                13

              	 	
                High
                  Voltage Electrical

              
	
                14

              	 	
                Air
                  consultant

              
	
                15

              	 	
                Biologist

              
	
                16

              	 	
                Soils
                  testing

              
	
                17

              	 	
                Vista
                  rinse testing

              
	
                18

              	 	
                EPCM
                  pads

              
	
                19

              	 	
                EPCM
                  plant & infrastructure

              
	
                20

              	 	
                Commissioning

              
	
                21

              	 	
                Freight

              
	
                22

              	 	
                Spares

              
	
                23

              	 	
                Vendor
                  representatives

              
	
                24

              	 	
                Environmental

              
	
                25

              	 	
                Contingency

              
	
                26

              	 	
                Emergency
                  power

              
	
                27

              	 	
                Mob
                  demob Plant & Infrastructure

              

      

       

      
        

      

      2
        Information provided by the Borrower to the Agent on 27 February 2007 in
        a
        document entitled "Mesquite Contract Packages".

       

      
        
          
          

        

        
          Page
            118

          
            

          

        

        
          
          

        

      

       

      The
        Borrower

      

        
          	
                  Signed
                    by
                    Brian Penny and Raymond W.

                	
                  )

                	
                  /s/
                    Brian Penny

                
	
                  Threlkeld
                    for and on behalf of

                	
                  )

                	 
	
                  Western
                    Mesquite Mines, Inc.

                	
                  )

                	
                  /s/
                    Raymond W. Threlkeld

                

        

      

       

      The
        Guarantor

      

        
          	
                  Signed
                    by
                    Brian Penny and Raymond W.

                	
                  )

                	
                  /s/
                    Brian Penny

                
	
                  Threlkeld
                    for and on behalf of

                	
                  )

                	 
	
                  Western
                    Goldfields, Inc.

                	
                  )

                	
                  /s/
                    Raymond W. Threlkeld

                

        

      

       

      The
        Agent

       

      
        
          	
                  Signed
                    by
                    Michael Jones and Graham McGirr

                	
                  )

                	
                  /s/
                    Michael Jones

                
	
                  as
                    duly authorised attorney

                	
                  )

                	 
	
                  for
                    and on behalf of

                	
                  )

                	 
	
                  Investec
                    Bank (UK) Limited

                	
                  )

                	
                  /s/
                    Graham McGirr

                

        

      

       

      The
        Arranger

      

        
          	
                  Signed
                    by
                    Michael Jones and Graham McGirr

                	
                  )

                	
                  /s/
                    Michael Jones

                
	
                  as
                    duly authorised attorney

                	
                  )

                	 
	
                  for
                    and on behalf of

                	
                  )

                	 
	
                  Investec
                    Bank (UK) Limited

                	
                  )

                	
                  /s/
                    Graham McGirr

                

        

      

       

      The
        Security Trustee

      

        
          	
                  Signed
                    by
                    Michael Jones and Graham McGirr

                	
                  )

                	
                  /s/
                    Michael Jones

                
	
                  as
                    duly authorised attorney

                	
                  )

                	 
	
                  for
                    and on behalf of

                	
                  )

                	 
	
                  Investec
                    Bank (UK) Limited

                	
                  )

                	
                  /s/
                    Graham McGirr

                

        

      

       

      The
        Banks

      

        
          	
                  Signed
                    by
                    Michael Jones and Graham McGirr

                	
                  )

                	
                  /s/
                    Michael Jones

                
	
                  as
                    duly authorised attorney

                	
                  )

                	 
	
                  for
                    and on behalf of

                	
                  )

                	 
	
                  Investec
                    Bank (UK) Limited

                	
                  )

                	
                  /s/
                    Graham McGirr

                

        

      

       

      The
        Hedging Banks

      

        
          	
                  Signed
                    by
                    Michael Jones and Graham McGirr

                	
                  )

                	
                  /s/
                    Michael Jones

                
	
                  as
                    duly authorised attorney

                	
                  )

                	 
	
                  for
                    and on behalf of

                	
                  )

                	 
	
                  Investec
                    Bank (UK) Limited

                	
                  )

                	
                  /s/
                    Graham McGirr

                

        

      

       

      
        
          
          

        

        
          Page
            119

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]