Document:

MINING
SERVICES AGREEMENT

for

 

Lucky
Shot Mine Development 

 

This
Agreement is made this 26th day of August, 2017 by and between

 

OWNER,

 

Alaska
Gold Torrent, LLC,

P.O.
Box 409

Willow,
AK 99688

 

PARENT
OF OWNER:

 

Gold
Torrent, Inc.

960
S. Broadway Suite 530

Boise,
ID 83706

 

and

 

MINER,

 

Mining
& Environmental Services LLC dba MES Mining dba Mountain Miners

PO
Box 1511

Idaho
Springs, CO 80452

 

MSHA
Contractor ID# A116

US
Tax ID# 84-1401900

 

RECITALS

 

A.
Owner has determined in its sole judgment that Miner has the necessary expertise and equipment to perform the necessary mining
services.

 

B.
Miner will be performing work that would otherwise necessarily be performed by employees hired by Owner to effect the same mine
maintenance, exploration, development and/or production of metalliferous minerals from the ore body or deposit. No construction
work is included in the scope of this project.

 

C.
Owner agrees that the work performed by the Miner constitutes a common improvement beneficial to all properties it holds which
are either contiguous to the properties on which the Miner performs work; or which are connected to the worked areas by underground
workings; or which are considered or represented to be a single exploration, mining or mine development operation.

 

    	 

    	 

    

 

D.
The Owner has engaged the Miner to perform certain planning and other pre-construction professional services, via a separate Professional
Services Agreement (the “PSA”) dated July 14, 2017. Under that agreement, Miner is providing assistance with MSHA
submittals, underground as-built mapping of accessible portions of the Enserch adit, development plans, project estimates and
logistics, etc. This includes preparation of development alternatives, draft development plans and related cost estimates and
final plans and cost estimate as per Exhibits referenced in Section 3 below.

 

AGREEMENT

 

NOW
THEREFORE, based on the premises stated above and the terms and conditions herein, Owner and Miner hereby agree as follows:

 

All
required notices to the Parties as identified in the following Agreement shall be given at the above addresses. The Recitals stated
above are hereby incorporated by reference.

 

1.
THE WORK. The Work is identified in Exhibit A. Miner shall use its best efforts to expeditiously perform the Work described in
Exhibit A in a commercially reasonable manner. Miner shall provide all administration, management, labor, equipment, materials
and services necessary to complete the Work described in Exhibit A, except as may be otherwise provided in the contract documents.

 

2.
COMPENSATION. Owner shall compensate Miner for Work performed on (1) a Time and Materials or (2) for necessary items not otherwise
listed under the Time and Materials rates; on the basis of the Cost of the Work as allowed in Article 9 of this Agreement, plus
Miner’s Fee paid in proportion to the Work performed.

 

Miner’s
compensation shall be as follows, subject to adjustment provided herein:

 

2.1
Time and Materials. For labor and professional services work completed under the scope contained in Exhibit A, the rates set forth
in Exhibit C are applicable and Miner shall be compensated by Owner based on those rates. The insurance rates may be subject to
reasonable adjustment after 12/31/2017.

 

2.2
Other Costs not Specifically Listed in Exhibit C: For other items which may be required, but which are not specifically listed
in Exhibits C, the Owner shall provide for all Costs of the Work, including without limitation those items specified in Article
9.2, plus a combined General & Administrative, Overhead and Fee allowance payable as follows:

 

	 	●	10%
    for Owner prior-approved materials or supply purchased by funds provided by Miner, and other miscellaneous cost items as per
    Section 9.2 and not otherwise identified in Section 2.1 or 2.2 above, excluding explosives.
	 	 	 
	 	●	16%
    on explosives. 

 

2.3
Advance Payment The Owner shall advance funds, as per Exhibit D, into the Working Capital account to initiate the project. The
advance payment and subsequent payments shall be subject to the provisions set forth in Article 10.

 

2.4
Fees. The Miner shall be paid Equipment Rental, Overhead and G&A Markup and Fee as set forth in Exhibit C. In addition Miner
shall be entitled to a fee from the above Section 2.2 markups on explosives, and any materials or supplied purchased directly
by the Miner or other costs incurred.

 

    	 

    	 

    

 

2.5
Consensus Baseline Estimate (“CBE”). This contract is executed prior to finalization of design and related cost estimates.
Following design approval by Owner, Miner and Owner shall complete a Consensus Baseline Estimate of the cost of the Work within
the Miner’s scope that will be attached to this agreement as Exhibit E and replace the draft summary Exhibits C-3, D, E,
and F hereby attached for reference.

 

This
CBE shall include the following:

 

	 	●	All
    of Miners direct, indirect, and overhead costs and fee.
	 	●	Miner’s
    equipment rental charges and operating costs
	 	●	Materials
    and supplies used in construction of the underground Work whether purchased by Owner or Miner.

 

The
CBE shall not include those costs not in Miner’s control, including but not limited to::

 

	 	●	Owner’s
    labor, or costs related to setup and operation of surface facilities, including man-camp, shops, generators and compressors,
    fuel and lubricants for surface equipment, office, communications, road maintenance, environmental and other costs
	 	 	 
	 	●	Owner
    furnished equipment or labor of any kind.
	 	 	 
	 	●	Owner’s
    costs of administration and oversight of the Miner’s Work.

 

2.6
Limited Notice to Proceed. Owner shall provide Miner with a limited notice to proceed upon execution of this agreement that will
direct Miner to initiate mobilization of rental equipment to site, sell to Owner and mobilize to site certain additional equipment
and sell to Owner and mobilize to a repair facility in Salt Lake City certain electrical equipment and components. The notice
to proceed will also provide for mobilization of key personnel to the project as recommended by Miner and approved by Owner.

 

2.7–
Bonus Incentive. If Miner completes the Work as detailed in Exhibit A for a total cost less than the Consensus Baseline Estimate
set forth in Exhibit E, then Miner shall share 75% of the cost savings (Consensus Baseline Budget less amount actually incurred)

 

2.8
Overrun Penalty: On any portion of the baseline work scope in Exhibit A that is performed in excess of the Consensus Baseline
Estimate, Miner shall be entitled to recover costs plus a reduced overhead of 10% only. Equipment shall be reduced to 50% of rental
rates. No fee fraction shall be earned on work that overruns the CBE.

 

2.9
Not To Exceed Amount: Except as extended by force majeure or Owner-caused delay such as funding limitations and requested suspensions,
Miner shall not be paid any Equipment Rental or Fee for the period beginning 12 months from the date of this contract and ending
upon the completion of the Work.

 

It
is the Parties’ intent that the full Cost of the Work, as defined in Article 9, be covered, plus reasonable overhead and
profit. Payment for all Work performed shall be as set forth in Article 10.

 

3.
EXHIBITS. The following Exhibits are incorporated by reference and made part of this Agreement:

 

EXHIBIT
A: The Scope of Work

 

EXHIBIT
B-1: Allocation of MSHA responsibilities

 

    	 

    	 

    

 

B-2:
Owner Responsibilities

 

EXHIBIT
C-1: Time and Materials Rates

 

C-2:
Labor Rates for Personnel

 

C-3:
Equipment Rental Rates

 

Exhibit
D: Initial Project Budget for Working Capital Account

 

Exhibit
E: Consensus Baseline Estimate (“CBE”)

 

Exhibit
F: Owner Purchased Equipment

 

4.
TERM. The term of this agreement shall be the sooner of the date of the completion the Scope of Work or February 1, 2019. A day
shall mean a calendar day unless specified otherwise.

 

5.
ETHICS. The Owner and the Miner shall perform their obligations with integrity, ensuring at a minimum that: a) Conflicts of interest
shall be avoided or disclosed promptly to the other Party; and b) The Miner and the Owner warrant that they have not and shall
not pay nor receive any contingent fees or gratuities to or from the other Party, including its agents, officers and employees,
Subcontractors or others for whom they may be liable, to secure preferential treatment.

 

6.
MINER’S RESPONSIBILITIES Miner shall be responsible for the Work to include supervision and coordination of the Work, including
the means, methods, techniques, sequences and procedures utilized, unless Exhibit A gives other specific instructions.

 

6.1
Except for permits and fees that are the responsibility of the Miner pursuant to this Agreement, Owner shall obtain and pay for
all necessary permits, licenses and renewals, approvals, easements, assessments pertaining to the Work. Miner shall be responsible
only for its contractor’s registration, and its U.S. Department of Treasury, Bureau of Alcohol, Tobacco, and Firearms (“BATFE”)
explosives permits.

 

6.2
Owner shall pay all taxes or the like, and all applicable sales and use taxes on for labor, materials and/or equipment delivered
to the site or used in connection with the Work. Where Owner asserts that sales or other transaction taxes are not applicable
to transactions with Miner, Owner shall indemnify and defend Miner from any liability for such tax. Miner shall notify Owner of
any sales or use tax audits related to the Work and shall cooperate with Owner to protest and/or appeal any assessments that may
result from such audits, if Owner asks Miner to file such protests and/or appeals. Owner shall bear the cost of any such protests
or appeals.

 

6.3
In the event that Owner elects to perform work at the Worksite directly or by others retained by Owner, Miner and Owner shall
coordinate the activities of all forces at the Worksite and agree upon fair and reasonable schedules and operational procedures
for Worksite activities. Owner shall require each separate contractor to cooperate with Miner and assist with the coordination
of activities and the review of construction schedules and operations.

 

6.4
In order to facilitate its responsibilities for completion of the Work in accordance with and as reasonably inferable from Exhibit
A, prior to commencing the Work, Miner shall examine and compare the drawings and specifications with information furnished, by
Owner pursuant to Paragraph 7.2, relevant field measurements made by Miner; and any visible conditions at the site affecting the
Work.

 

    	 

    	 

    

 

6.5
WARRANTY

 

6.5.1
The Work shall be executed in accordance with Exhibit A in a prudent and workmanlike manner. Miner warrants that all materials
it furnishes shall be new unless otherwise specified, of good quality, in conformance with Exhibit A, and free from defective
workmanship and materials, and of the standard of workmanship common within the mining industry for similar projects.

 

Miner’s
warranty does not include remedies for defects or damages caused by normal wear and tear during normal usage, use for a purpose
for which the Project was not intended, improper or insufficient maintenance, modifications or Work performed by Owner or others
retained by Owner, Owner-furnished materials, or abuse.

 

6.6
SAFETY AND HEALTH.

 

6.6.1
The Miner, in coordination with the Owner shall be responsible for initiating, maintaining and supervising the safety and anti-substance
abuse precautions and programs in connection with the Work, and shall provide all reasonable and realistic steps to prevent injury
to all persons involved in any way in the Work and all other persons, including, without limitation, the employees, agents, guests,
visitors, invitees, and licensees of the Owner who may visit or be affected thereby. These precautions shall include, but in no
event be limited to: the posting of danger signs and personal notification to all affected persons of the existence of a hazard
of whatever nature; the furnishing and maintaining of necessary traffic control barricades and flagman services; the use, or storage,
removal and disposal of required explosives or other hazardous materials only under the supervision of qualified personnel and
after first obtaining permission of all applicable governmental authorities; and the maintenance of adequate quantities of both
hose and operable fire extinguishers at the Job Site. The Miner shall set forth in writing its safety and anti-substance abuse
precautions and programs in connection with the Work and submit the same to the Owner for review. The Owner may, but shall not
be obligated to, make suggestions and recommendations to the Miner with respect thereto.

 

6.6.2
All Work, whether performed by the Miner or anyone directly or indirectly employed by any of them, and all equipment, appliances,
machinery, materials, tools and like items incorporated or used in the Work, shall be in compliance with, and conform to: (a)
all applicable laws, ordinances, rules, regulations and orders of any public, quasi-public or other governmental authority relating
to the safety of persons and their protection against injury, specifically including, but in no event limited to, the Federal
Occupational Safety and Health Act of 1970 and/or the Mine Safety and Health Administration as applicable; as may be amended from
time to time, and all rules and regulations promulgated thereunder; and (b) all codes, rules, regulations and requirements of
the Owner and its insurance carriers relating thereto. In the event of conflicting requirements, the more stringent shall govern.
Citations, orders, notices of violation and/or other regulatory enforcement actions shall not constitute a material breach of
this agreement, as long as prompt correct efforts are initiated and continued to abate the condition, and/or an administrative
or judicial appeal of the enforcement action is pending resolution.

 

6.6.3
The Miner shall have operational control of its work areas, and shall have the right to reasonably regulate access for reasons
of safety. This includes temporary exclusion of access during loading, blasting. scaling, ground control installation, drilling,
and other high hazard operations. The Miner shall have the right to require non-Miner personnel in the work areas to comply with
general safety procedures and instructions and to remain with an escort, if one is assigned.

 

    	 

    	 

    

 

6.6.4
The Miner shall provide to each of its workers on the Job Site the proper safety equipment for the duties being performed by that
worker and shall not permit any worker on the Job Site who fails or refuses to use the same. The Owner shall have the right, but
not the obligation, to order the Miner to send a worker home for the day or to discharge a worker for his or her failure to comply
with safe practices or anti-substance abuse policies, for which order the Miner shall promptly comply.

 

6.7
HAZARDOUS MATERIALS & CONDITIONS. A Hazardous Material is any substance or material identified now or in the future as hazardous
under any federal, state or local law or regulation, or any other substance or material which may be considered hazardous or otherwise
subject to statutory or regulatory requirement governing handling, disposal and/or clean-up. A Hazardous condition is one that
poses an unusual risk of injury, disease or death to personnel, or damage to equipment.

 

6.7.1
The Miner shall not bring any Hazardous Materials in greater than a Reportable Quantity on site without advance permission from
the Owner.

 

6.7.2
The Miner shall be responsible for the clean-up of any spills, leakage, or the like of oil, fuel or other Hazardous Materials
resulting from acts or omissions of Miner or Miner’s equipment or operations.

 

6.7.3
The Miner shall provide Material Safety Date Sheets to the Owner for all applicable chemicals and other materials brought to the
site by Miner.

 

6.7.4
Miner shall not be obligated to commence or continue work in an area with a potentially Hazardous Condition until the Hazardous
Condition discovered at the Worksite has been removed, or rendered or determined to be reduced to a normal mining risk level,
in the Miner’s judgment.

 

Within
its capability and expertise, the Miner shall be expected to take appropriate action(s) to abate or make safe any Hazardous Conditions
that arise in the performance of the Work. Where the abatement of such Hazardous Condition may have a material impact on project
cost or schedule, the Owner shall be notified within 24 hours of the time that the severity is recognized by the Miner.

 

6.8
MATERIALS BROUGHT TO THE WORKSITE. Unless otherwise provided, Miner shall be responsible for the proper delivery, handling, application,
storage, removal and disposal of all materials and substances brought to the Worksite by Miner in accordance with Exhibit A and
used or consumed in the performance of the Work.

 

6.9
SUBMITTALS. Miner shall submit to Owner for review and approval all shop drawings, samples, product data and similar submittals
required by Exhibit A. Submittals may be submitted in electronic form if required in accordance with Paragraph 7.3. Miner shall
be responsible to Owner for the accuracy and conformity of its submittals to Exhibit A. Miner shall prepare and deliver its submittals
to Owner in a manner consistent with the Schedule of the Work and in such time and sequence so as not to delay the performance
of the Work or the work of Owner and others retained by Owner. When Miner delivers its submittals to Owner, Miner shall identify
in writing for each submittal all changes, deviations or substitutions from the requirements of Exhibit A. The approval of any
submittal from Miner shall not be deemed to authorize deviations, substitutions or changes in the requirements of the Contact
Documents unless express written approval is obtained from Owner specifically authorizing such deviation, substitution or change.
Further, Owner shall not make any change, deviation or substitution through the submittal process without specifically identifying
and authorizing such deviation to Miner. Owner shall be responsible for review and approval of submittals with reasonable promptness
to avoid causing delay. Miner shall perform all Work strictly in accordance with approved submittals. Owner’s approval does
not relieve Miner from responsibility for Defective Work resulting from errors or omissions of any kind on the approved Shop Drawings.

 

    	 

    	 

    

 

6.10
SITE CONDITIONS. If the conditions at the Worksite are (a) materially different from those indicated in or inferable from Exhibit
A, or (b) unusual or unknown physical conditions which are materially different from conditions ordinarily encountered and generally
recognized as inherent in Work provided for in Exhibit A, Miner shall stop work and give immediate written notice of the condition
to Owner. Miner shall not be required to perform any work relating to the different or unknown condition without the written mutual
agreement of the Owner and Miner.

 

In
the case of conditions which are so substantially different that a change of Miner’s means and/or methods is required, Miner
shall be entitled to an equitable adjustment in Miner’s scope of work and the labor rate and mark-ups and the equipment
rental rates provided in Exhibit C and Section 2.2 shall apply.

 

6.11
CLEANING UP Miner shall at all times consistent with the normal mining cycle keep the Work areas reasonably clean and free of
debris and waste materials resulting from the Work. Prior to discontinuing Work in an area, Miner shall clean the area and remove
all rubbish and its construction equipment, tools, machinery, waste and surplus materials, other than non-hazardous materials
approved by the Owner to be incorporated into stope backfill or other areas to be abandoned. Miner shall minimize and confine
dust and debris resulting from construction activities. At the completion of the Work, Miner shall remove from the Worksite all
construction equipment, tools, portable facilities, and other items brought onsite by Miner and not incorporated into the Work.
Waste materials and debris shall be removed to a(n) onsite location(s) designated by Owner.

 

6.12
SURFACE OR SUBSURFACE WATER. Water shall be controlled and suitably and lawfully disposed of by means of temporary or permanent
pumps, piping, drainage lines and ditches, dams or other methods in accordance with all permits held by the Owner. The proposed
methods of removing accumulated water from the Miner’s work areas shall be submitted to the Owner for its prior written
approval. As long as Owner directs or approves any mine water pumping or dewatering activities, Owner shall be solely responsible
for any and all permits necessary for mine water pumping and dewatering activities. Owner shall notify Miner of any and all permit
requirements.

 

6.13
EMERGENCIES In any emergency affecting the safety of persons or property, or in the event of a claimed violation of any federal
or state safety or health law or regulation, arising out of or in any way connected with the Work or its performance, the Miner
shall act immediately, to prevent threatened damage, injury or loss or to remedy said violation, whichever is applicable, failing
which the Owner may immediately take whatever action it deems necessary, including, but not limited to, suspending the Work.

 

7.
OWNER’S RESPONSIBILITIES. Any information or services to be provided by Owner shall be provided in a timely manner so as
not to delay the Work.

 

7.1
FINANCIAL INFORMATION. Prior to commencement of the Work and thereafter at the written request of Miner, Owner shall provide Miner
with evidence of Project financing. Evidence of such financing shall be a condition precedent to Miner’s commencing or continuing
the Work. Miner shall be notified prior to any material change in Project financing.

 

    	 

    	 

    

 

7.2
WORKSITE INFORMATION. Owner shall provide at Owner’s expense and with reasonable promptness the following, which Miner shall
be entitled to rely upon for its accuracy and completeness:

 

7.2.1
information describing the physical characteristics of the site, including surveys, site evaluations, legal descriptions, data
or drawings depicting existing conditions, subsurface and environmental studies, reports and investigations;

 

7.2.2
tests, inspections and other reports dealing with environmental matters, hazardous material and other existing conditions, including
structural, mechanical and chemical tests, reasonably required for the performance of services per Exhibit A or by law; and

 

7.2.3
any other information or services requested in writing by Miner that are relevant to Miner’s performance of the Work and
under Owner’s control. The information required by this Paragraph shall be provided in reasonable detail. Legal descriptions
shall include easements, title restrictions, boundaries, and zoning restrictions. Worksite descriptions shall include existing
buildings and other construction and all other pertinent site conditions. Adjacent property descriptions shall include structures,
streets, sidewalks, allies, and other features relevant to the Work. Utility details shall include available services, lines at
the Worksite and adjacent thereto and connection points. The information shall include public and private information, subsurface
information, grades, contours, and elevations, drainage data, exact locations and dimensions, and benchmarks that can be used
by Miner in laying out the Work.

 

7.3
ELECTRONIC DOCUMENTS If the Owner requires that the Owner and Miner exchange documents and data in electronic or digital form,
prior to any such exchange, the Owner and Miner shall agree on a written protocol governing all exchanges.

 

7.4
OWNER’S STANDARDS. The Owner reserves the right, but assumes no duty, to establish and enforce standards, and to
change the same from time to time, for the protection of persons and property, with which the Miner shall comply, and to review
the efficiency of all protective measures taken by the Miner. The exercise of or failure to exercise any or all of these acts
by the Owner shall not relieve the Miner of its duties and responsibilities under this Agreement, and the Owner shall not thereby
assume, nor be deemed to have assumed, any such duties or responsibilities of the Miner.

 

8.
SUBCONTRACTS. Owner-approved work not performed by Miner with its own forces shall be performed by subcontractors. Miner agrees
to bind every subcontractor (and require every subcontractor to so bind its subcontractors) to all the provisions of this Agreement
and appropriate Exhibits as they apply to the subcontractor’s portions of the Work. Subcontractors shall not be required
to provide the Excess/Umbrella Liability insurance required of Miner in Section 12.1.4.

 

9.
COST OF THE WORK

 

9.1
Consistently with Article 2 hereof, Owner agrees to pay Miner for the Cost of the Work as defined in this Article. Where applicable,
this payment shall be in addition to Miner’s Fee stipulated in Paragraph 2.

 

    	 

    	 

    

 

9.2
COST ITEMS The Cost of the Work includes:

 

9.2.1
As set forth on Exhibit C, wages paid for labor in the direct employ of Miner in the performance of the Work, including training
and safety activities.

 

9.2.2
As set forth on Exhibit C, salaries of Miner’s employees when stationed at the field office, in whatever capacity employed;
employees engaged on the road expediting the procurement, production or transportation of material and equipment; and employees
from the principal or branch office performing the following direct project support functions: equipment repair and maintenance,
shop fabrication, professional services as per 9.2.21, procurement and logistics, accounting, and safety.

 

9.2.3
As set forth on Exhibit C, the cost of all employee benefits and taxes including but not limited to workers’ compensation,
unemployment compensation, Social Security, health, welfare, retirement, vacation, sick leave, holiday pay, health insurance,
and other fringe benefits as required by law, labor agreements, or paid under Miner’s personnel policies applicable to workers
on the project, insofar as such costs are paid to or for the benefit of employees of Miner as identified and included in Exhibits
C a D who are included in the Cost of the Work

 

9.2.4
Reasonable transportation, travel, hotel and moving expenses of Miner’s personnel incurred in connection with the Work,
and as detailed in Owner-approved budgets or otherwise approved by Owner.

 

9.2.5
Cost of all Miner-furnished materials, supplies and equipment incorporated in the Work, and the reasonable cost to repair or replace
consumable small tools and safety supplies, and including costs of inspection and testing if not provided by Owner, transportation,
storage and handling.

 

9.2.6
Payments made by Miner to Owner-approved subcontractors or consultants for work performed under this Agreement.

 

9.2.7
Cost, including transportation and maintenance of all Miner-furnished materials, supplies, equipment, temporary facilities and
small tools that are used or consumed in the performance of the Work, less salvage value and/or residual value; and cost less
salvage value on such items used, but not consumed that remain the property of Miner.

 

9.2.8
Rental charges of all necessary machinery and equipment used at the Worksite, whether rented from Miner or others retained by
Miner, plus operating costs including installation, repair and replacement, dismantling, removal, maintenance, transportation
and delivery costs. Rental from unrelated third Parties shall be at actual cost. Rentals from Miner or its affiliates, subsidiaries
or related Parties shall be reimbursed at the rates provided in the Time and Materials rate sheets provided in Exhibit C, as may
be amended from time to time by subsequent agreement between the Owner and Miner.

 

9.2.9
Cost of the premiums for all insurance and surety bonds that Miner is required to procure or deems necessary, and approved by
Owner.

 

9.2.10
Sales, use, gross receipts or other taxes, tariffs or duties related to the Work for which Miner is liable. Miner shall work diligently
with Owner to minimize taxes, tariffs, and duties, in compliance with applicable laws and regulations.

 

    	 

    	 

    

 

9.2.11
Permits, fees, licenses, tests, royalties, damages for infringement of patents and/or copyrights, including costs of defending
related suits for which Miner is not responsible, and deposits lost for causes other than Miner’s negligence.

 

9.2.12
Owner requested re-work of Work and losses, expenses and damages Miner incurs as a result of a mine collapse of other such catastrophic
event that is not covered or reimbursed by insurance provided such collapse or catastrophic event is not caused by Miner negligence.

 

9.2.13
Owner prior-approved costs associated with establishing, equipping, operating, maintaining and demobilizing the field office.

 

9.2.14
Costs associated with demobilizing and remobilizing the field office and Miner’s workforce, including subcontractor workforces,
as a result of a suspension of the Work by Owner unless the suspension is the result of negligence of the Miner.

 

9.2.15
Reasonable reproduction costs, photographs, cost of telegrams, facsimile transmissions, long distance telephone calls, data processing
services, postage, express delivery charges, telephone service nor provided by the Owner at the Worksite.

 

9.2.16
Water, power and fuel costs necessary for the Work.

 

9.2.17
Costs incurred by the Miner for removal of hazardous and non-hazardous substances, debris and waste materials unless the need
for such material removal is due to the negligence of the Miner.

 

9.2.18
Costs incurred due to an emergency affecting the safety of persons and/or property.

 

9.2.19
Project Related legal, mediation and arbitration fees and costs, other than those arising from disputes between Owner and Miner;
or between Miner and Subcontractor for reasons other than disputes arising as a result of the Owner’s alleged actions or
inactions, reasonably and properly resulting from Miner’s performance of the Work

 

9.2.20
Additional costs resulting from laws, ordinances, rules, regulations and taxes enacted after the date of this Agreement

 

9.2.21
Cost of Owner approved professional services in connection with the Work, including but not limited to geologic, surveying, engineering,
legal, accounting and other services, whether performed by Miner or subcontractors, consultants, or vendors retained by the Miner
and approved by the Owner.

 

9.2.22
Fines and penalties that may be imposed by MSHA. Fines related to conditions previously identified by the Owner and not corrected
by the Miner and related to the condition of Miner’s equipment or unauthorized actions of Miner shall not be reimbursable
project costs.

 

Owner
shall pay the costs to contest, object to or appeal any fines and penalties. If the contest, objection or appeal is finally and
conclusively resolved against Miner, then the fines and penalties related thereto shall be paid by Miner.

 

    	 

    	 

    

 

9.2.23
Other costs directly incurred in the performance of the Work or in connection with the Project, and not included in Miner’s
Fee as set forth in Paragraph 2.1 or 2.2, which are reasonably inferable from Exhibit A as necessary to produce the intended results.

 

9.3
DISCOUNTS. All discounts for prompt payment shall accrue to Owner to the extent such payments are made with funds provided by
Owner (work invoiced to Working Capital Account, when such account is properly funded). To the extent payments are made with funds
of Miner, all cash discounts shall accrue to Miner. All trade discounts, rebates and refunds, and all returns from sale of surplus
materials and equipment purchased with Owner funds, shall be credited to the Cost of the Work to the benefit of the Owner. The
provisions of this section are only applicable to Time and Materials and Cost plus Fee work and are not applicable to Lump Sum
unit price work items if any.

 

9.4
FINANCIAL RECORDS. Miner shall keep such full and detailed accounts as are necessary for proper financial management under this
Agreement. Miner shall maintain a complete set of all books and records prepared or used by Miner with respect to the Project.
Owner and its agents shall be afforded access to all Miner’s project-specific financial records, including timecards, daily
reports, receipts, vouchers, packing slips, survey data, development and production memoranda and similar data relating to this
Agreement. Miner shall promptly provide copies of such records digitally to Owner and its agents upon request.

 

Miner
shall preserve all such records for a period of three years after the final payment or longer where required by law.

 

10.
PAYMENT

 

10.1
PAYMENTS

 

10.1.1
Replenishment of Working Capital Account

 

Twenty (20) days in advance, Miner shall submit to Owner a budget forecast based on
estimated project costs for the month then 20 days ahead. Miner agrees to use reasonable skill and judgment in the
preparation of cost estimates, but does not warrant or guarantee them.

 

Within
ten (10) days after receipt of each budget forecast, Owner shall give written notice to Miner of Owner’s acceptance or rejection,
in whole or in part, of such budget forecast. Owner’s failure to reject all or any part of a budget forecast within such
period shall constitute acceptance of the amount not rejected. If such budget forecast is rejected in whole or in part, Owner
shall state specifically the reasons for its rejection and provide an alternate budget and Miner shall make efforts to promptly
adjust project resources to meet the alternate budget to the extent commercially reasonable.

 

Within
ten (10) days after the receipt of such budget forecast, Owner shall make a payment in the amount of each budget forecast into
the Miner’s working capital account. The Project working capital account shall be maintained by Miner, with viewing rights
by Owner.

 

Owner
shall keep the greater of the following in the working capital account on deposit with Miner at all times: (a) $200,000, or (b)
the total estimate for project costs for the following month as provided to Owner from Miner and approved by Owner, plus a demobilization
and closeout reserve of $100,000.

 

    	 

    	 

    

 

10.1.2
Accounting of Actual Costs and Fees Withdrawn from Working Capital Account

 

Miner
shall provide detailed digital invoices to Owner for all work performed, and shall draw upon the working capital account for actual
costs incurred and Fee earned every two weeks based on the invoices. Miner shall provide reasonable backup documentation as requested
by Owner to support the amounts invoiced.

 

Within
thirty (30) days after receipt of each monthly accounting of withdrawals from the working capital account, Owner shall give written
notice to Miner of Owner’s acceptance or rejection, in whole or in part, of such accounting. Owner’s failure to reject
all or any part of an accounting within such period shall constitute acceptance of the amount not rejected.

 

If
such accounting is rejected in whole or in part, Owner shall state specifically the reasons for its rejection.

 

Those
invoiced items rejected by Owner shall be not be considered earned by the Miner until the Owner’s stated reasons for the
rejection have been resolved, or a final resolution has been reached in accordance with Article 15 herein.

 

10.2.
As the contract enters the final stages when there is 1 month or less of estimated work remaining, including demobilization, Miner
shall bill Owner directly for any funding shortage in the working capital account.

 

At
the conclusion of this Agreement, Miner shall apply any funds in the working capital account to any amounts due and payable to
Miner hereunder. Miner shall provide a final accounting and return any remaining balance to Owner within the earlier of 30 days
after the conclusion of Work or termination of this Agreement. If a balance is due and owing to Miner after application of the
total amount of the working capital account, then Owner shall pay such amounts within 20 days after final accounting by the Miner
for the final month.

 

10.3
ADJUSTMENT OF MINER’S INVOICE Owner may adjust or reject an invoice , in whole or in part, as may reasonably be necessary
to protect Owner from loss or damage based upon the following, to the extent that Miner is responsible for such under this Agreement:

 

	 	1	Miner’s
    failure to perform the Work for the invoiced period as required by Exhibit A;
	 	 	 
	 	2	loss
    or damage for which Owner may be liable arising out of or relating to this Agreement and caused by Miner to Owner or others
    retained by Owner;
	 	 	 
	 	3	Miner’s
    failure to properly and timely pay subcontractors, government entities and material suppliers with in payment schedules following
    receipt of such payment from Owner.
	 	 	 
	 	4	unless
    arising from Owner’s non-payment for the performance of the Work or other breach by Owner, third-party claims involving
    the Miner or reasonable evidence demonstrating that third-party claims are likely to be filed unless and until the Miner furnishes
    the Owner with adequate security in the form of a surety bond, letter of credit or other collateral or commitment which are
    sufficient to discharge such claims if established;
	 	 	 
	 	5	Invoiced
    amounts not adequately supported by reasonable and customary documentation reasonably acceptable to the Owner.

 

    	 

    	 

    

 

10.4
FINAL PAYMENT. Claims not reserved in writing at or before the making of final payment shall be waived except for claims relating
to liens or similar encumbrances, warranties, defective Work and latent defects.

 

10.6
LATE PAYMENT. Payments due but unpaid shall bear interest from the date payment is due at the statutory rate prevailing at the
place of the Project unless successfully disputed by Owner.

 

11.
INDEMNITY

 

11.1
To the fullest extent permitted by law and within the limits of insurance provided as specified herein, Miner shall indemnify
and hold harmless the Owner and Parent, Owner’s and Parent’s officers, directors, members, consultants, agents and
employees from all claims for bodily injury and property damage, other than to the Work itself and other property insured under
Paragraph 12.3 including reasonable attorneys’ fees, costs and expenses that may arise from the performance of the Work,
but only to the extent caused by the negligent acts or omissions of the Miner, Subcontractors or anyone employed directly or indirectly
by any of them or by anyone for whose acts any of them may be liable. The Miner shall be entitled to reimbursement of any indemnity
costs paid above Miner’s percentage of liability for the underlying claim. Miner shall not be required to indemnify or hold
harmless Owner or others retained by Owner for any acts, omissions or negligence other than those of Miner.

 

11.2
To the fullest extent permitted by law, Owner or Parent shall indemnify and hold harmless Miner, its officers, directors or members,
subcontractors or anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable from
all claims for bodily injury and property damage, other than to the Work itself or property insured under Paragraph 12.3 including
reasonable attorneys’ fees, costs and expenses that may arise from the performance of the Work, but only to the extent caused
by the negligent acts or omissions of the Owner or Parent or anyone employed directly or indirectly by Owner or Parent or by anyone
for whose acts Owner or Parent may be liable. The Owner or Parent shall be entitled to reimbursement of any indemnity costs paid
above Owner’s or Parent’s percentage of liability for the underlying claim. Owner or Parent shall not be required
to indemnify or hold harmless Miner or others retained by Miner for any acts, omissions or negligence other than those of Owner
or others retained by Owner.

 

12.
INSURANCE

 

12.1
Prior to the start of the Work, the Miner shall procure and maintain in force Workers Compensation Insurance, Employers’
Liability Insurance, Business Automobile Liability Insurance, and Commercial General Liability Insurance (CGL) (and for one (1)
year thereafter in the case of completed operations). The CGL policy shall include coverage for liability arising from premises,
operations, independent contractors, products-completed operations, personal injury and advertising injury, contractual liability,
and broad form property damage. If requested, the Miner shall provide the Owner with certificates of the insurance coverage required.
The Miner’s Employers’ Liability, Business Automobile Liability, and Commercial General Liability policies, as required
in this Paragraph 2, shall be written with at least the following limits of liability:

 

.1
Employers’ Liability Insurance

 

a.
$1,000,000

Bodily
Injury by Accident

Each
Accident

 

    	 

    	 

    

 

b.
$ 1,000,000

Bodily
Injury by Disease

Policy
Limit

 

c.
$ 1,000,000

Bodily
Injury by Disease

Each
Employee

 

.2
Business Automobile Liability Insurance

 

a.
$1,000,000

Each
Accident

 

.3
Commercial General Liability Insurance

 

a.
$ 1,000,000

Each
Occurrence

 

b.
$ 1,000,000

General
Aggregate

 

c.
$ 1,000,000

Products/Completed

Operations
Aggregate

 

d.
$1,000,000

Personal
and Advertising

Injury
Limit

 

4.
Excess / Umbrella Liability

$5,000,000

 

12.2
Employers’ Liability, Business Automobile Liability and Commercial General Liability coverage required under Paragraph 1
may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance
provided by Excess or Umbrella Liability policies. The Miner shall maintain in effect all insurance coverage required under Paragraph
15.1 with insurance companies lawfully authorized to do business in the jurisdiction in which the Project is located.

 

If
the Miner fails to obtain or maintain any insurance coverage required under this Agreement, the Owner shall provide Notice to
Cure per the terms of Section 14. If not cured within the timeframes of Section 14, the Owner elect to may purchase such coverage
and charge the cost plus _16__% to the Miner, suspend the Work, or terminate this Agreement.

 

The
policies of insurance required under Subparagraph 13.1 shall contain a provision that the coverage afforded under the policies
shall not be cancelled or allowed to expire until at least thirty (30) Days’ prior written notice has been given to the
Owner. Prior to commencement of the Work, Miner shall furnish the Owner with certificates evidencing the required coverage.

 

    	 

    	 

    

 

12.3
PROPERTY INSURANCE. Before the start of Work, the Owner shall obtain and maintain Builder’s Risk Policy upon the entire
Project for the full cost of replacement at the time of loss. This insurance shall also name the Miner, Subcontractors, Sub-subcontractors,
Material Suppliers and Architect/Engineer as named insured’s. This insurance shall be written as a Builder’s Risk
Policy or equivalent form to cover all risks of physical loss except those specifically excluded by the policy. The Owner shall
be solely responsible for any deductible amounts or coinsurance penalties. This policy shall provide for a waiver of subrogation
in favor of the Miner, Subcontractors, Sub-subcontractors, and Material Suppliers. This insurance shall remain in effect until
final payment has been made or until no person or entity other than the Owner has an insurable interest in the property to be
covered by this insurance, whichever is sooner. Partial occupancy or use of the Work shall not commence until the Owner has secured
the consent of the insurance company or companies providing the coverage required in this Paragraph. Prior to commencement of
the Work, the Owner shall provide a copy of the property policy or policies obtained in compliance with this Paragraph.

 

12.3.1
If the Owner does not intend to purchase the property insurance required by this Agreement, including all of the coverages and
deductibles described herein, the Owner shall give written notice to Miner before the Work is commenced, and the Owner shall be
responsible for all of Miner’s costs reasonably attributed to the Owner’s failure or neglect in purchasing or maintaining
the coverage described above and the Owner shall waive any claim against Miner for loss or damage to the Project property.

 

12.3.2
Owner and Miner waive all rights against each other and their respective employees, agents, contractors, subcontractors and Sub-subcontractors,
for damages caused by risks covered by the property insurance except such rights as they may have to the proceeds of the insurance
and such rights as Miner may have for the failure of the Owner to obtain and maintain property insurance in compliance with Subparagraph
12.3.

 

12.3.3
To the extent of the limits of Miner’s Commercial General Liability Insurance specified in Paragraph 12.1 Miner shall indemnify
and hold harmless the Owner against any and all liability, claims, demands, damages, losses and expenses, including attorneys’
fees, in connection with or arising out of any damage or alleged damage to any of Owner’s existing adjacent property that
may arise from the performance of the Work, but only to the extent caused by the negligent acts or omissions of Miner, Subcontractor
or anyone employed directly or indirectly by any of them or by anyone for whose acts any of them may be liable.

 

12.4
OWNER’S INSURANCE. The Owner may procure and maintain insurance against loss of use of the Owner’s property caused
by fire or other casualty loss. The Owner shall either self-insure or obtain and maintain its own liability insurance for protection
against claims arising out of the performance of this Agreement, including without limitation, loss of use and claims, losses
and expenses arising out of the Owner’s errors or omissions.

 

13.
LIMITED MUTUAL WAIVER OF CONSEQUENTIAL DAMAGES. Excluding losses covered by insurance required by this Agreement, the Owner and
Miner agree to waive all claims against each other for any consequential or indirect damages that may arise out of or relate to
this Agreement. The Owner agrees to waive damages including but not limited to the Owner’s loss of use of the Project, any
rental expenses incurred, loss of income, profit or financing related to the Project, as well as the loss of business, loss of
financing, principal office overhead and expenses, loss of profits not related to this Project, loss of reputation, or insolvency.
The Miner agrees to waive damages including but not limited to loss of business, loss of financing, principal office overhead
and expenses, loss of profits not related to this Project, loss of bonding capacity, loss of reputation, or insolvency. The provisions
of this Paragraph shall also apply to the termination of this Agreement and shall survive such termination. The Owner and the
Miner shall require similar waivers in contracts with Subcontractors and others retained for the project.

 

    	 

    	 

    

 

14.
NOTICE TO CURE AND TERMINATION

 

14.1
NOTICE TO CURE A DEFAULT. If Miner persistently or recurrently refuses or fails to perform the work required under Exhibit A,
supply enough properly skilled workers or equipment to diligently and reasonably prosecute the Work; or having received prompt
payment from the Owner, fails to make prompt payment to its workers, Subcontractors, government entities, or Material Suppliers,
or is otherwise guilty of a material breach of a provision of this Agreement, Miner may be deemed in default. If Miner fails within
ten (10) working Days after written notification to cure if reasonably possible, or commence and continue satisfactory action
for correction of such default with diligence and promptness, then Owner shall give the Miner a second written notice to initiate
action to correct the default within a three (3) business Day period. If the Miner fails to promptly cure if reasonably possible,
or commence and continue action for satisfactory correction of the default following receipt of such second notice, the Owner,
without prejudice to any other rights or remedies, shall have the right to terminate this Agreement. In the case of an default
that cannot reasonably or practicably be cured within the notice period, the Miner shall submit a plan and schedule for correction
or other resolution of the condition within the timelines of this subparagraph.

 

14.2
TERMINATION BY OWNER. If, within ten (10) Days of receipt of a notice to cure pursuant to Paragraph 14.1, Miner fails to cure
if reasonably possible, or commence and satisfactorily continue correction of the default set forth in the notice to cure, Owner
may notify Miner that it intends to terminate this Agreement for default absent appropriate corrective action within fourteen
(14) additional days. After the expiration of the additional fourteen (14) day period, Owner may terminate this Agreement by written
notice absent appropriate corrective action.

 

14.2.1
Owner shall make reasonable efforts to mitigate damages arising from any Miner default.

 

14.2.2
The Miner’s maximum damages hereunder shall be limited to the Fee actually paid to contractor for performance of the work.

 

14.3
SUSPENSION BY MINER. Upon breach of the Owner’s obligations under this Agreement, including without limitation failure to
make payments required hereunder, upon seven (7) days written notice to Owner, Miner may suspend the Work until such time as the
Owner cures the default.

 

In
such event, the Miner shall be entitled to reimbursement for any costs incurred in connection with the suspension, which shall
be deemed a Cost of the Work.

 

14.4
TERMINATION BY MINER. Upon seven (7) Days’ written notice to Owner, Miner may terminate this Agreement if the Work has been
stopped for a thirty (30) Day period

for
any reason which is not the result of any default by Miner, Subcontractor(s), or others for whom the Miner is responsible.

 

14.5
In addition, upon seven (7) Days’ written notice to Owner, Miner may terminate the Agreement if the Owner:

 

1
fails to furnish reasonable evidence that sufficient funds are available and committed for the entire cost of the Project in accordance
with Paragraph 7.1, or

 

2
assigns this Agreement over Miner’s reasonable objection, or

 

3
fails to pay Miner in accordance with this Agreement and Miner has complied with the notice provisions of Paragraph 14.3, or

 

    	 

    	 

    

 

4
otherwise materially breaches this Agreement after a cure period identical to Paragraph 14.1.

 

14.6
Upon termination by Miner pursuant to this Agreement, Miner shall be entitled to recover from Owner payment for all Work executed
and for any proven loss, cost or expense in connection with the Work, including all demobilization costs plus reasonable overhead.

 

14.7
TERMINATION BY OWNER WITHOUT CAUSE. Without limitation to the provisions of Section 14, the Owner shall have the right
at any time, upon not less than twenty (20) days notice to the Miner to terminate this Agreement without cause and/or for the
Owner’s convenience. Upon receipt of such notice of termination, the Miner shall forthwith discontinue the Work and remove
its equipment and employees from the Job Site. In the event of termination under this Paragraph, the Miner shall have the right,
as its sole and exclusive remedy, to recover from the Owner payment for all unpaid Work executed up to the date of termination,
plus reasonable charges for demobilization and closeout activities.

 

14.8
OBLIGATIONS ARISING BEFORE TERMINATION. Even after termination the provisions of this Agreement still apply to any Work performed,
payments made, events occurring, costs charged or incurred or obligations arising before the termination date.

 

15.
DISPUTE MITIGATION AND RESOLUTION

 

15.1
CLAIMS FOR INCREASE IN UNIT PRICES. For any claim for an increase in the Unit Prices in Exhibit C, Miner shall give Owner written
notice of the claim within ten (10) Days after the occurrence giving rise to the claim or within ten (10) Days after Miner first
recognizes the condition giving rise to the claim, whichever is later. Except in an emergency, notice shall be given before proceeding
with the Work. Any change in the Unit Prices resulting from such claim shall be authorized by Change Order.

 

15.2
WORK CONTINUANCE AND PAYMENT. Unless otherwise agreed in writing, Miner shall continue the Work during any dispute resolution
proceedings. If Miner continues to perform, Owner shall continue to make payments in accordance with the Agreement.

 

15.3
DIRECT DISCUSSIONS. If a dispute arises out of or relates to this Agreement or its breach, the Parties shall endeavor to settle
the dispute. Within five (5) business days, Parties’ representatives, who shall possess the necessary authority to resolve
such matter and who shall record the date of first discussions, shall conduct direct discussions and make a good faith effort
to resolve such dispute.

 

15.4
MEDIATION. Disputes between Owner and Miner not resolved by direct discussion shall be submitted to mediation. The Parties shall
agree on the mediator within fifteen (15) Days of a request for mediation, and the mediation shall be conducted within forty-five
(45) Days of a request for mediation. If either deadline in the immediately preceding sentence is not met, the mediator shall
be selected by the American Arbitration Association in accordance with its Construction Industry Mediation Rules in effect at
the time of this Agreement. In any case, such mediation shall be conducted in accordance with the applicable parts of such Rules.
Engaging in mediation is a condition precedent to any form of binding dispute resolution. Each party shall bear its own costs
and expenses related to this Article 15.4

 

    	 

    	 

    

 

15.5
ARBITRATION. If the matter is unresolved after its submission to mediation, the Parties shall submit the matter to binding arbitration.
A demand for arbitration shall be made in writing, and delivered to the other Party to this agreement. The Party filing a demand
for arbitration shall assert in the demand all claims then known to that Party on which arbitration is permitted to be demanded.
If the initial demand for arbitration is $300,000 or greater in amount, the arbitration shall be conducted by a panel of three
arbitrators. If the initial demand is less than $300,000, the arbitration shall be conducted by a single arbitrator. The single
panel member or at least one member of a three-person panel shall be experienced in mining development and engineering, and have
experience as an arbitrator in mining or construction disputes. The Parties shall agree on the identity of the arbitrator or arbitrators.
If the Parties cannot agree on the arbitrator or arbitrators within 30 days of the unsuccessful conclusion of the mediation proceedings,
the arbitrator or arbitrators shall be chosen by the American Arbitration Association in accordance with its Construction Industry
Arbitration Rules in effect as of the date of this Agreement. In any case, the arbitration shall be conducted consistent with
the applicable rules of the American Arbitration Association Construction Industry Arbitration Rules in effect on the date of
this agreement. In no event shall a demand for arbitration be made after the date when the institution of legal or equitable proceedings
based on the disputes between the Parties would be barred by the applicable statute of limitations. The award rendered by the
arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having
jurisdiction thereof. This agreement to arbitrate shall be specifically enforceable under applicable law in any court having jurisdiction
thereof. Each party shall bear its own costs and expenses related to this Article 15.5

 

15.6
VENUE. The venue of any mediation and arbitration proceedings shall be in Anchorage, Alaska, unless the Parties agree on a different,
mutually convenient location.

 

16.
ASSIGNMENT. Neither Owner nor Miner shall assign its interest in this Agreement without the written consent of the other except
as to an assignment of proceeds. The terms and conditions of this Agreement shall be binding upon both Parties, their, successors,
assigns and legal representatives.

 

In
the event of termination of the Miner under Section 15, the miner shall reasonably cooperate to facilitate the transfer of the
rights, duties and obligations of its materials vendor agreements in connection with the Work to the Owner. Any such assignment
shall be subject to the consent of the vendor and shall rely solely on the credit, and applicable licenses or other qualifications,
of the Owner and not the Miner.

 

17.
GOVERNING LAW. This Agreement shall be governed by law in the state of Alaska, without consideration of any conflicts of law provisions.

 

18.
JOINT DRAFTING The Parties expressly agree that this Agreement was jointly drafted, and that they both had opportunity to negotiate
terms and to obtain assistance of counsel in reviewing terms prior to execution. This Agreement shall be construed neither against
nor in favor of either

 

19.
PAYMENT AND PERFORMANCE. The Parent, acting as Owner’s Manager, shall provide punctual performance by Owner of all of Owner’s
obligations pursuant to this Agreement, including without limitation payment of all amounts required to be paid or deposited hereunder
and the prompt and complete performance of all terms, covenants, conditions and agreements contained herein on the part of the
Owner.

 

20.
CHANGES. Changes in the Work, within the general scope of this Agreement shall be accomplished, without invalidating this Agreement,
by Change Order.

 

20.1
CHANGE ORDER

 

20.1.1
The Miner may request or the Owner may order changes in the Work or the timing or sequencing of the Work. All such Owner-approved
changes in the Work that are within the general scope of this Agreement shall be billed and paid in accordance with the Unit Prices
on Exhibit C or other provisions of this Agreement.

 

    	 

    	 

    

 

20.1.2
If the Miner requests or the Owner orders a significant change in the Work which is beyond the general scope of the Work reflected
on Exhibit A, the Owner and the Miner shall negotiate in good faith an appropriate adjustment to the relevant Unit Prices and/or
CBE, and shall conclude those negotiations as expeditiously as possible. Any negotiated change to such Unit Prices and/or CBE
shall be reflected in a Change Order. Agreement to any such Change Order shall not be unreasonably withheld. No significant changed
Work shall be performed before mutual execution of such Change Order.

 

20.1.3
A significant change in the Work such that the Unit Prices in Exhibit C should be adjusted, is changed Work such that application
of the original Unit Prices would cause substantial inequity to the Owner or the Miner.

 

20.2
An Addendum is a written or graphic instrument issued by the Owner prior to the execution of the Agreement which sets forth additions,
clarifications, deletions or other revisions to the Agreement and other documents.

 

20.3
A Modification to the Agreement or any of the documents comprising the Agreement may be accomplished by: (a) a Change Order; (b)
a unilateral Directive by the Owner or its representative; or (c) any other written amendment to the General Conditions or other
document comprising the Agreement. A Modification may be made only after execution of the Agreement. No Directive shall be construed
as a Modification (e.g., Change Order, or Extra Work order) unless it expressly so states.

 

20.4
A Directive is a written document issued by the Owner or its representative consisting of additions, deletions, clarifications
or other written instructions with respect to the performance of the Work or the activities of the Miner (by way of example, on
the Job Site or the property of the Owner). A Directive may include, but shall not be limited to, a bulletin, an engineering change,
or other orders or instructions. Directives may become the subject of a Change Order, either singularly or collectively. Directives
shall become the subject of a Change Order if they involve a change in the Agreement time and/or Agreement Price.

 

21.
EXTENT OF AGREEMENT. This Agreement is solely for the benefit of the Parties, represents the entire and integrated agreement between
the Parties, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement and
each and every provision is for the exclusive benefit of the Owner and Miner and not for the benefit of any third Party except
to the extent expressly provided in this Agreement. This Agreement and/or any portion thereof may be amended or modified only
by a Modification, as defined in Section 21. This Agreement consists of this document and the Exhibits listed in Section 4. This
Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and together shall constitute
one and same instrument.

 

22.
FORCE MAJEURE. Neither of the parties hereto shall be liable to the other party for failure to comply with any of the terms
and conditions of the Agreement where such failure is caused by an act of God, order or act of a government authority, strike
or labor difficulty, an act of terrorism, fire, flood, windstorm unexpected geologic or other site conditions, severe winter weather,
sustained power outage, or by any other cause beyond the reasonable control of the party that such party is otherwise obligated
to perform and that materially affects the obligated party’s ability to perform, provided that prompt notice of such delay
is given by such party to the other party and that the affected party be diligent in attempting to remove such cause or causes.

 

    	 

    	 

    

 

23.
WORKFORCE STABILITY. Except as provided herein, the Owner agrees that during the term of Owner’s agreement with Miner and
for a period of one (1) year following the termination of this agreement, the Owner shall not without written consent of Miner,
attempt to hire or engage, directly or indirectly, any employee of Miner or otherwise encourage or attempt to encourage any employee
of Miner to leave Miner’s employ, either while employed by Miner or within one year of employment by the Miner, whether
the termination shall be voluntary or involuntary, or with or without cause.

 

No
circumvention - For a period of one year, Owner shall require any future contractors engaged by them in connection with this project
to accept a flow-down of these provisions as part of the terms of the engagement.

 

Personnel
Conversion Fee:

 

After
the completion of not less than 1250 billable hours for each of Miner’s employees as detailed on Exhibit C paid for by Owner,
the Owner may elect to hire hourly employees of Miner assigned to the project at no conversion fee.

 

Conversion
earlier shall be at a fee based on the hourly rates noted below x a ratio calculated as: 1250 x (1 - billable hours actually paid
divided by 1250), and multiplied by the following amounts per employee converted:

 

Lead
Miner - $40 x ratio;

 

Miner
1 - $35 x ratio;

 

Miner
II and below - $25 x ratio.

 

No
conversion shall occur without Miner’s approval.

 

Miner
and Owner agree that, because Owner intends to transition to self-mining, all local labor employed by Miner shall be exempt from
this Section 23 provision. Local labor is defined as any labor that is originally sourced from and residing in Alaska.

 

24.
COUNTERPARTS; FAX OR ELECTRONIC MAIL SIGNATURES: This Agreement may be executed in one or more counterparts, any one of which
need not contain the signatures of more than one party, but all of such counterparts taken together shall constitute one and the
same instrument. This Agreement may be executed by fax or electronic mail signature and a fax or electronic mail signature shall
constitute an original signature for all purposes.

 

25.
Owner Approvals: where Owner Approval of an item is referenced such approval shall be deemed given by clear inclusion of the cost
element in an Owner approved CBE or monthly budget, or by explicit oral communication confirmed in writing or electronic mail
communication or written approval by Owner’s representatives.

 

[Signature
blocks appear on the following page.]

 

    	 

    	 

    

 

IN
WITNESS HEREOF, the parties have executed this agreement and intend to be bound as of the date first listed above.

 

OWNER:
Alaska Gold Torrent, LLC

 

	BY:	 	 
	 	STANLEY
    FOO	 
	 	GENERAL
    MANAGER	 
	 	 	 
	PARENT:
    Gold Torrent, Inc.	 
	 	 	 
	BY:	 	 
	 	DANIEL
    KUNZ	 
	 	CHIEF
    EXECUTIVE OFFICER	 

 

MINER:
Mining & Environmental Services LLC dba MES Mining dba Mountain Miners

 

	BY:	 	 
	 	MARK
    LEVIN	 
	 	MANAGER	 

 

    	 

    	 

    

 

EXHIBIT
A – SCOPE OF WORK

 

The
following work is to be completed by Miner under the terms of this Mining Services Agreement

 

Execute
Initial development of the Lucky Shot mine per plans prepared by Miner under separate Professional Services Agreement and as approved
by Owner and per approved final drawings to be provided by Miner and approved by Owner, which shall become a part of these contract
documents.

 

Summary
scope:

 

	 	1)	Mobilize
    equipment, personnel and labor to and from site as necessary, 
	 	2)	Beginning
    at the end of the existing arched liner plate portal structure, slash the Enserch adit to a nominal 12’ x 12’
    arched cross section to the point of departure of the Coleman Ramp, plus an additional distance as shown on the drawings for
    muck storage. 
	 	3)	Develop
    the Coleman Ramp, as per the approved drawings, including muck-bays.

 

Scope
details

 

	 	●	Provision
    of labor and equipment as listed in the CBE, or as otherwise approved by Owner
	 	●	Recruit
    and train underground miners and supervision as required, maximizing use of well-qualified Alaska residents when available.
    
	 	●	Ongoing
    ramp development survey control as required
	 	●	Provide
    Electrical services for startup via subcontractor 
	 	●	Install
    all underground ventilation, utilities and ground control fixtures as required for the Work.
	 	●	Provide
    rental of certain equipment to project as identified in the CBE
	 	●	Sale
    to Owner of certain equipment as per Exhibit F
	 	●	Provide
    explosives required using magazines and drop trailer provided by explosives vendor or as otherwise available at project location.
    
	 	●	Provide
    Personal Protective Equipment (“PPE”) for Miner’s employees
	 	●	Initiation
    of materials and supplies purchase requests to Owner with sufficient lead times
	 	●	Development
    of monthly budgets for Owner approval

 

    	 

    	 

    

 

Exhibit
    B: Allocation of MSHA Responsibilities

 

	Standard	 	Description	 	proposed
    lead responsibility
	Part
    40	 	Miners
    representative, posted to bulletin board	 	n/a
    - Owner post letter no representative unless otherwise 
	Part
    41	 	Legal
    ID, current data, form 2000-7	 	Owner
    
	Part
    44	 	Petition
    for modification on file	 	N/A
	Part
    45	 	Contractors
    ID# 	 	Each
    Contractor on site must provide to Owner. Owner should Post list of Contractors.
	 	 	Contractors
    register available at mine office	 	Owner
    (MINER personnel must utilize - may be company specific sheet for each Contractor )
	Part
    47	 	HAZCOM
    Program	 	MINER
    for its personnel. Each employer onsite will need to do. MINER can assist Owner if requested
	Part
    48	 	Training
    Plans [UG Subpart (a) Surface subpart (b)]	 	MINER
    has an approved plan for its personnel. Each employer onsite will need to do. 
	48.29	 	Training
    records at mine site	 	MINER
    for its personnel. Each employer onsite will need to do. MINER preparing for Owner under PSA
	Part
    49	 	Available
    Mine Rescue (49.2)	 	Not
    applicable until 35 personnel underground, then Owner
	 	 	Alternative
    Mine Rescue (49.3)	 	Owner
    to file. MINER will provide draft under PSA.
	 	 	Location
    of Mine Rescue Station	 	Owner
    to provide.
	Part
    50	 	Mine
    Injury [7000-1; 103(d)]	 	Each
    employer at site must file and post report, plus Owner must report summary. MINER will submit hours monthly to Owner.
	 	 	Mine
    hours [7000-2; 103(h)]	 	Each
    employer at site must file and post report, plus Owner must report summary. MINER will submit hours monthly to Owner.
	 	 	Accident
    Investigation Reports Retention	 	Each
    employer at site must file and retain. MINER will provide copy to Owner.
	Part
    62	 	Occupational
    Noise Exposure Monitoring	 	Owner
    for the mine.
	57.1000	 	Notification
    of commencement / closing of mines	 	Owner
	56/57.3203	 	Rock
    Bolt Test	 	MINER
    will perform for bolts it installs
	56/57.3203	 	Rock
    Bolt ASTM F432-95 Certification on file at mine	 	Owner
    for bolts it purchases, copy to MINER
	56/57.3401	 	Examination
    of ground condition	 	MINER
    for its work areas only. Owner lead on surface. 
	57.4104	 	Covered
    metal waste containers for combustible waste	 	MINER
    for its facilities/work areas only. Owner and other contractors responsible for their work areas.
	57.4131	 	Not
    more than 1 day supply of combustibles by portal or fan	 	Owner
    in general - MINER for its materials. 
	56/57.4201	 	Inspection
    of Firefighting Equipment	 	MINER
    for its work areas and equipment only. Owner for general mine.
	57.4330	 	Firefighting,
    evacuation and rescue	 	Owner.
    
	57.4360	 	Underground
    fire alarm system	 	Owner.
    
	57.4361	 	Evacuation
    drill every 6 months	 	Owner.
    MINER staff will participate. MINER can provide forms. 
	57.4363	 	Evacuation
    Instructions	 	Owner.
    
	57.4402	 	Safety
    cans for flammable liquids	 	Owner
    
	57.4504	 	Main
    fan clear of combustibles for 25 feet	 	Owner
	57.456	 	Fire
    retardant timber at portal for first 200 feet	 	Owner
    (N/A at Lucky shot)

 

    	 

    	 

    

 

	57.4600	 	Welding/Cutting/Compressed
    gases	 	Each
    employer for its own work area
	56/57.5005	 	Respirator
    Fit Test	 	Each
    employer for its own employees. Owner to provide Industrial Hygienist to administer
	57.5037	 	Radon
    sampling record	 	Owner.
    Results must be provided to MINER. 
	57.5065	 	Diesel
    Fuel Records	 	Purchaser
    (s) of fuel (Owner)
	57.852	 	Ventilation
    Plan	 	Owner
    to file. MINER will develop draft for filing under PSA. 
	57.8525	 	Record
    of main fan maintenance	 	Owner
	57.11053	 	Escape
    and Evacuation Plan	 	Owner
    to file. MINER will develop draft for filing under PSA. 
	57.11058	 	Check-in/Check-out
    system	 	Owner.
    MINER responsible for its employees complying with system. 
	56/57.12028	 	Electrical
    Continuity & resistance record	 	Owner,
    except for initial checks by MINER subcontract electrician
	56/57.13015	 	Compressed
    Air Receiver Tank record	 	Owner
    if applicable
	56/57.13030	 	Fired
    pressure vessel records	 	Owner
    if applicable
	56/57.14100	 	Safety
    defects; examination, record	 	MINER
    for its work areas / equipment used by MINER personnel only. Owner for its equipment and surface areas. 
	57.1503	 	Self-Rescuer
    Maintenance Record	 	MINER
    for its units only. Owner for its units. 
	56/57.18002	 	Examination
    of Working Places	 	MINER
    for its facilities/work areas only. Owner and other contractors responsible for their work areas. Owner for general mine
	56/57.18010	 	First
    Aid Training (supervisors)	 	MINER
    for its personnel only. 
	57.18012	 	Posting
    of Emergency Telephone Numbers	 	MINER/Owner
    lists of emergency contacts need posted, also MSHA immediate notification
	57.18014	 	Emergency
    medical service/transportation	 	Owner.
    Will need to include provisions for helicopter evacuation of critical care cases. 
	57.18028	 	Mine
    Emergency & Self Rescuer Training	 	MINER
    for its personnel (will include Owner and other contractors by arrangement)
	57.19022	 	Record
    of wire rope measurements	 	N/A
	57.19023	 	Record
    of wire rope examinations	 	N/A
	57.19057	 	Record
    of hoist operators physical certificate	 	N/A
	57.19121	 	Record
    of hoist equipment inspection; daily, weekly, monthly	 	N/A
	57.506	 	Diesel
    Particulate Matter (see section - multiple requirements)	 	Owner
    shall provide monitoring, recordkeeping, notifications and adequate main ventilation.
	57.507	 	DPM
    Miner Training	 	MINER
    for its personnel. Each employer onsite will need to do. 
	57.5071	 	Exposure
    Monitoring	 	Owner
    to provide program and data. MINER will notify its miners. 
	57.5075	 	Diesel
    Particulate records	 	Owner
    to provide program and data. MINER will notify its miners. 
	62.15	 	Hearing
    Conservation Program	 	MINER
    for its personnel. Each employer onsite will need to do. Owner to provide monitoring and data for MINER miners.
	 	 	 	 	 
	Additional:	 	 	 	 
	 	 	Pre-Employment
    Drug Testing & Fitness for duty Program	 	MINER
    for its personnel 
	 	 	Onsite
    postings - Non-MSHA - labor laws, etc.	 	MINER
    for its work areas and programs. Owner for mine in general.
	 	 	Work
    area inspection records	 	MINER
    for its work areas only. 
	 	 	Copies
    of all MSHA submittals and filings and monitoring data	 	Owner
    to provide to MINER

 

    	 

    	 

    

 

EXHIBIT
B-2: Owner Responsibilities

 

	 	●	Environmental
    Permitting and Monitoring
	 	●	Construction
    of modifications to Enserch Portal structure to provide ventilation ducting corrugated metal pipe above existing liner plate
    portal structure, backfill as needed. 
	 	●	Post-startup
    Mine Electrician and Electrical Maintenance
	 	●	Materials
    and supplies other than explosives
	 	●	Design
    review/approval of ramp
	 	●	Mine
    Rescue and Emergency Evacuation Services arrangements
	 	●	Connex
    container storage and laydown area(s) 
	 	●	Ventilation
    ducting of capacity to meet MSHA DPM limits
	 	●	Industrial
    Hygiene - Radon, DPM, noise and dust monitoring & reporting as per MSHA requirements
	 	●	Movement
    and disposal of development rock on surface beyond portal dump site
	 	●	Supply
    handling to designated laydowns in Contractor’s area
	 	●	Man
    Camp with beds, laundry, meals, hot shower, internet, phone
	 	●	Snow
    removal and snow plowing
	 	●	Avalanche
    Control program 
	 	●	Transportation
    of underground miners to and from man camp to mine site
	 	●	Timely
    purchasing per Miner’s supply request lists
	 	●	Timely
    project funding into Working Capital Account per approved budgets
	 	●	Rental
    and purchased equipment shipping arrangements from Dumont, CO to and from Mine Site
	 	●	Surface
    excavating work required for project
	 	●	Fully
    stocked mine mechanic shop, 40’ x 60’ near portal area (100’ +)
	 	●	Surface
    generators
	 	●	Fuel
    and Lubricants
	 	●	Surface
    loader with forks,
	 	●	Sanitary
    Facilities
	 	●	Communications
    - radio on surface and leaky feeder underground
	 	●	Office
    trailer with phone and Internet near portal area (100’ +)
	 	●	Location
    for Explosive Magazines and ANFO drop trailer
	 	●	Three
    20’ cargo containers with shelving for Miner use

 

    	 

    	 

    

 

EXHIBIT
C – 1 LABOR RATES FOR BILLING

 

	Classification	 	Typical Base Pay	 	 	OT Premium @ 1.5 x base per law	 	 	GROSS PAY PER HOUR	 	 	Payroll Burden	 	 	Fringe Cost	 	 	Approx. Net Cost	 	 	OH + G&A *	 	 	Fee Fraction *	 	 	BILL RATE	 	 	Federal OT Rule OT 106 hours pay for 84 hours work	 
	Project Manager	 	$	108.17	 	 	 	N/A 	 	 	$	108.17	 	 	$	6.52	 	 	$	9.97	 	 	$	124.66	 	 	 	12.00	%	 	 	7.00	%	 	$	148.35	 	 	 	148.35	 
	Admin, BA or BS Degreed	 	$	35.00	 	 	 	N/A 	 	 	$	35.00	 	 	 	3.87	 	 	 	6.05	 	 	$	44.92	 	 	 	12.00	%	 	 	8.00	%	 	$	53.91	 	 	 	53.91	 
	Admin, Job Clerk, Associates	 	$	20.00	 	 	 	N/A 	 	 	$	20.00	 	 	 	2.21	 	 	 	3.46	 	 	$	25.67	 	 	 	12.00	%	 	 	8.00	%	 	$	30.80	 	 	 	36.58	 
	Admin, Job Clerk, Associates, OT	 	$	20.00	 	 	$	10.00	 	 	$	30.00	 	 	 	3.32	 	 	 	5.18	 	 	$	38.50	 	 	 	12.00	%	 	 	8.00	%	 	$	46.21	 	 	 	 	 
	Staff Eng	 	$	65.00	 	 	 	N/A 	 	 	$	65.00	 	 	 	11.32	 	 	 	11.23	 	 	$	87.55	 	 	 	12.00	%	 	 	8.00	%	 	$	105.06	 	 	 	105.06	 
	Superintendent	 	$	55.00	 	 	 	N/A 	 	 	$	55.00	 	 	 	9.58	 	 	 	9.50	 	 	$	74.08	 	 	 	12.00	%	 	 	8.00	%	 	$	88.90	 	 	 	88.90	 
	Lead Miner or Tech, ST	 	$	42.50	 	 	$	0.00	 	 	$	42.50	 	 	 	7.40	 	 	 	7.34	 	 	$	57.25	 	 	 	12.00	%	 	 	8.00	%	 	$	68.70	 	 	 	86.69	 
	Lead Miner or Tech, OT	 	$	42.50	 	 	$	21.25	 	 	$	63.75	 	 	 	11.11	 	 	 	0.00	 	 	$	74.86	 	 	 	12.00	%	 	 	8.00	%	 	$	89.83	 	 	 	 	 
	Miner or Tech I, ST	 	$	37.50	 	 	$	0.00	 	 	$	37.50	 	 	 	6.53	 	 	 	6.48	 	 	$	50.51	 	 	 	12.00	%	 	 	8.00	%	 	$	60.61	 	 	 	76.49	 
	Miner or Tech I, OT	 	$	37.50	 	 	$	18.75	 	 	$	56.25	 	 	 	9.80	 	 	 	0.00	 	 	$	66.05	 	 	 	12.00	%	 	 	8.00	%	 	$	79.26	 	 	 	 	 
	Miner II or Tech II, ST	 	$	30.00	 	 	$	0.00	 	 	$	30.00	 	 	 	5.23	 	 	 	5.18	 	 	$	40.41	 	 	 	12.00	%	 	 	8.00	%	 	$	48.49	 	 	 	61.19	 
	Miner II, or Tech II OT	 	$	30.00	 	 	$	15.00	 	 	$	45.00	 	 	 	7.84	 	 	 	0.00	 	 	$	52.84	 	 	 	12.00	%	 	 	8.00	%	 	$	63.41	 	 	 	 	 
	Miner III or Tech III, ST	 	$	25.00	 	 	$	0.00	 	 	$	25.00	 	 	 	4.36	 	 	 	4.32	 	 	$	33.67	 	 	 	12.00	%	 	 	8.00	%	 	$	40.41	 	 	 	50.99	 
	Miner III or Tech III, OT	 	$	25.00	 	 	$	12.50	 	 	$	37.50	 	 	 	6.53	 	 	 	0.00	 	 	$	44.03	 	 	 	12.00	%	 	 	8.00	%	 	$	52.84	 	 	 	 	 
	Miner Shop Labor -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	78.00	 	 	 	 	 
	PPE Allowance, per hour	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	3.00	 	 	 	 	 

 

In-House
Professional Services Notes:

 

	 	a)	Overtime
    does not apply to professional services.
	 	b)	Professional
    services rates include all applicable payroll taxes, workmen’s compensation insurance, overhead, and profit.
	 	c)	Travel
    time is billed at 50% of applicable billing rate, but not less than $45.00 per hour. Billable travel time is capped at 8 hours
    per day.
	 	d)	Domestic
    Per-diem and mileage are billable at the current GSA rates applicable to the location.
	 	e)	Expert
    Witness work is quoted on a case-by-case basis.

 

    	 

    	 

    

 

Labor
Rate Notes:

 

a)
Overtime is charged at greater than 10 hours per day or 40 hours per week.

 

b)
Labor rates include all applicable payroll taxes, workmen’s compensation insurance, overhead, and profit.

 

c)
No unproductive time such as vacation, holiday, voting, or sick time hours will be charged to.the job. Job-specific safety meetings
and task training on site will be charged. General 32-hour New Miner training and 8-hour refresher training is not billable. Mine
rescue training at project site is billable.

 

d)
Surface employees may receive 15 minutes of paid break in every 4 hour work period. Employees working underground may receive
up to 10 minutes of paid break every 2 hours. Employees performing elevated work hanging from ropes, etc. may receive up to 15
minutes of paid break for every hour on rope. Employees working in cold water or properly dressed workers in other extreme temperature
conditions will be allowed to take paid breaks as reasonably necessary to maintain body temperature.

 

e)
Lunchtime for mine site workers is paid.

 

f)
Employees in training will be billed at appropriately reduced rates commensurate with Miner.evaluation of relative productivity
compared to fully proficient personnel.

 

g)
Per-Diem charges for employees working at locations more than 1 hour from home will be billed based on current published federal
GSA daily rates for the job locality, or as otherwise negotiated. Where project schedule and location makes it reasonably impracticable
for employees to return and be home for at least 24 hours on days off, employees remaining at the deployed project locale will
be paid per diem on the day(s) off and that will be billed.

 

h)
Daily minimum charge for deployed employees on standby is 1⁄2 of scheduled shift, plus applicable per-diem.

 

i)
PPE consumables allowance includes all PPE up through “Level D”: fall protection, self rescuers, hardhats, safety glasses,
belts, slickers, respirators up to half mask, gloves, hearing protection, goggles, etc. It does not include the cost of specialized
PPE beyond Level D, such as supplied air, etc. Employees are expected to report at starting time in designated PPE up through
Level D where required. Where specialized PPE beyond Level D as defined above is required, time spent doffing/donning is paid
and billable.

 

j)
Shaft or raise workers are subject to a 35% premium rate.

 

    	 

    	 

    

 

TABLE
C-2 Owner and MINER’S LABOR- Expected Staffing Levels

 

	Position	 	Other	 	 	Per Shift	 	 	Total	 	 	Owner	 	 	MINER	 
	Project Manager	 	 	1	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	1.0	 
	Contract Oversight	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1.0	 	 	 	 	 
	Mine Captain (Superintendent)	 	 	1	 	 	 	 	 	 	 	2	 	 	 	 	 	 	 	2.0	 
	Project Engineer - Short Range Planner	 	 	1	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	0.5	 
	Safety - onsite	 	 	1	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	0.5	 
	IH/Environment Technician	 	 	1	 	 	 	 	 	 	 	1	 	 	 	0.25	 	 	 	 	 
	Supply Logistics	 	 	1	 	 	 	 	 	 	 	1	 	 	 	0.5	 	 	 	 	 
	Purchasing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.5	 	 	 	 	 
	Surveyor	 	 	0.5	 	 	 	 	 	 	 	2	 	 	 	 	 	 	 	0.5	 
	Job Accountant	 	 	1	 	 	 	 	 	 	 	1	 	 	 	0.25	 	 	 	0.25	 
	Job Clerk	 	 	1	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	1.0	 
	General Mine	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface Utility & Expediter	 	 	 	 	 	 	 	 	 	 	1	 	 	 	1.00	 	 	 	 	 
	Drifting Crew - Ramp Development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lead Miner / Jumbo Drill Operator	 	 	 	 	 	 	1	 	 	 	3	 	 	 	 	 	 	 	3.0	 
	Haulage/ Miner 1	 	 	 	 	 	 	2	 	 	 	6	 	 	 	 	 	 	 	6.0	 
	Miner II	 	 	 	 	 	 	0	 	 	 	see note	 	 	 	 	 	 	 	 	 
	Miner III _Nipper/trainee	 	 	 	 	 	 	0	 	 	 	see note	 	 	 	 	 	 	 	 	 
	Maintenance - Underground	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic - Expert	 	 	 	 	 	 	1	 	 	 	3	 	 	 	1.0	 	 	 	2.0	 
	Mine Electrician	 	 	 	 	 	 	TBD	 	 	 	1	 	 	 	0.5	 	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT
C – 3 EQUIPMENT RENTAL RATES

 

	Equipment Type	 	Monthly	 	 	# Req’d	 
	*Jumbo - Single boom diesel	 	$	15,500	 	 	 	1	 
	*Jumbo - Single boom electric	 	$	15,500	 	 	 	1	 
	*Pnuem Jumbo GD minibore or Tam MJM 20B	 	$	5,500	 	 	 	1	 
	Backup Hydrastar 300 or Sandvik 538/510	 	$	3,000	 	 	 	2	 
	Backup PR55 or Tam L550	 	$	500	 	 	 	2	 
	2 – 2.5 LHD Toro 151	 	$	8,500	 	 	 	2	 
	LHD 3.5-4 cy capacity	 	$	13,750	 	 	 	2	 
	Kobata RTV 900	 	$	612	 	 	 	3	 
	Aux Fan – 51 to 100 HP -	 	$	1,960	 	 	 	1	 
	Aux Fans – 101 to 150 HP - 2 stage	 	$	2,450	 	 	 	2	 
	Aux Fans – 151 to 200HP - 2 stage	 	$	2,450	 	 	 	2	 
	Backup - spare fan stage	 	$	613	 	 	 	1	 
	Quasar Bolter	 	$	18,500	 	 	 	1	 
	Tunnel alignment laser	 	$	480	 	 	 	1	 
	Steel Anfo Loader, 100 # class	 	$	320	 	 	 	2	 
	Reflector-less Total Station and Tripods	 	$	645	 	 	 	1	 
	Gas Meter	 	$	225	 	 	 	2	 
	4x4 Pickup or SUV	 	$	1,680	 	 	 	4	 
	Diesel or Propane Indirect fired heaters	 	$	280	 	 	 	1	 
	*Shotcrete machine - dry	 	$	1,100	 	 	 	1	 
	*Shotcrete Pre-dampener	 	$	1,100	 	 	 	1	 
	*Airstream Helmets	 	$	225	 	 	 	2	 
	Tool Crib – miscellaneous small tools	 	$	7,500	 	 	 	1	 
	*HDPE Fusion Welder	 	$	1,800	 	 	 	1	 
	*Triplex Water Booster Pump	 	$	325	 	 	 	2	 

 

	 	●	Standby
    rate = 50% of rate above

 

    	 

    	 

    

 

Exhibit
D: Initial Project Budget for Working Capital Account

 

August-September
2017

 

	Description
    of Work	 	Qty	 	 	Units	 	 	Price

USD
	 	 	Ext.
    Cost,

 USD	 	 	Activity

Total
	 	 	Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mobilization & Setup
    for Initial Work
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Project Manager	 	 	60	 	 	 	HR	 	 	 	149.59	 	 	 	8,975.53	 	 	 	 	 	 	Logistics separate from
    PSA work
	Project Manager, Travel	 	 	24	 	 	 	HR	 	 	 	74.80	 	 	 	1,795.11	 	 	 	 	 	 	 
	Project Engineer	 	 	60	 	 	 	HR	 	 	 	105.06	 	 	 	6,303.84	 	 	 	 	 	 	 
	Project Engineer, Travel time	 	 	12	 	 	 	HR	 	 	 	55.00	 	 	 	660.00	 	 	 	 	 	 	 
	Superintendent	 	 	50	 	 	 	HR	 	 	 	88.90	 	 	 	4,445.02	 	 	 	 	 	 	Recruitment, Logistics help, purchase
    list development
	Travel Expense Budget - Initial Mob
    and Setup	 	 	1	 	 	 	Bud	 	 	 	15,000.00	 	 	 	15,000.00	 	 	 	 	 	 	 
	Admin	 	 	100	 	 	 	HR	 	 	 	46.21	 	 	 	4,620.51	 	 	 	 	 	 	logistics support for recruitment,account
    setups, etc.
	New Hire Physicals	 	 	12	 	 	 	EA	 	 	 	756.00	 	 	 	9,072.00	 	 	 	 	 	 	 
	2x R1300G and Diesel Jumbo to Mine Site	 	 	3	 	 	 	BUD	 	 	 	9,013.00	 	 	 	27,039.00	 	 	 	 	 	 	Per estimate from King Hufford
	40’ cans to mine site	 	 	2	 	 	 	BUD	 	 	 	7,796.00	 	 	 	15,592.00	 	 	 	 	 	 	Per estimate from King Hufford
	20’ cans to mine site	 	 	2	 	 	 	BUD	 	 	 	6,545.00	 	 	 	13,090.00	 	 	 	 	 	 	Per estimate from King Hufford
	40’ flat to mine site	 	 	2	 	 	 	BUD	 	 	 	8,431.00	 	 	 	16,862.00	 	 	 	 	 	 	Per estimate from King Hufford
	Shop time Prep, organze and loading	 	 	300	 	 	 	HR	 	 	 	78.00	 	 	 	23,400.00	 	 	 	 	 	 	 
	Blocking timber and misc. Load bracing
    and securement supplies	 	 	1	 	 	 	Budget	 	 	 	3,000.00	 	 	 	3,000.00	 	 	 	 

                                                                           
	 	 	 
	Pickup, chase supplies	 	 	4	 	 	 	DY	 	 	 	56.00	 	 	 	224.00	 	 	 	 	 	 	 
	Mileage	 	 	800	 	 	 	MI	 	 	 	0.54	 	 	 	428.00	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mobilization
    Total	 	 	 	 	 	 	 	 	 	 	$	150,507.01	 	 	 

 

    	 

    	 

    

 

	Mine Crew, Onsite, general setup time and initiate slashing Enserch	 	 	Estimated at 5 days, including 8 hours for MSHA required Experienced Miner site-specific training
	Project Manager	 	 	60	 	 	 	HR	 	 	 	149.59	 	 	 	8,975.53	 	 	 	 	 	 	Kickoff Meeting with Owner rep, site specific training, work to setup intersection
	Project Engineer	 	 	60	 	 	 	HR	 	 	 	105.06	 	 	 	6,303.84	 	 	 	 	 	 	 
	Superintendent	 	 	240	 	 	 	HR	 	 	 	88.90	 	 	 	21,336.09	 	 	 	 	 	 	Super 1 week ahead
	Lead Miner	 	 	40	 	 	 	HR	 	 	 	68.70	 	 	 	2,747.83	 	 	 	 	 	 	 
	Lead Miner, OT	 	 	20	 	 	 	HR	 	 	 	89.83	 	 	 	1,796.53	 	 	 	 	 	 	 
	Miner I	 	 	240	 	 	 	HR	 	 	 	60.61	 	 	 	14,547.33	 	 	 	 	 	 	 
	Miner I, OT	 	 	120	 	 	 	HR	 	 	 	79.26	 	 	 	9,511.02	 	 	 	 	 	 	 
	Miner II	 	 	0	 	 	 	HR	 	 	 	48.49	 	 	 	0.00	 	 	 	 	 	 	 
	Miner II, OT	 	 	0	 	 	 	HR	 	 	 	63.41	 	 	 	0.00	 	 	 	 	 	 	 
	Mechanic	 	 	120	 	 	 	HR	 	 	 	68.70	 	 	 	8,243.49	 	 	 	 	 	 	 
	Mechanic, OT	 	 	60	 	 	 	HR	 	 	 	89.83	 	 	 	5,389.58	 	 	 	 	 	 	 
	Misc. site setup supplies	 	 	1	 	 	 	BUD	 	 	 	10,000.00	 	 	 	10,000.00	 	 	 	 	 	 	 
	JCB-520	 	 	0	 	 	 	DY	 	 	 	0.00	 	 	 	0.00	 	 	 	 	 	 	To become AGT owned equipment used by MES
	Kubota RTV	 	 	1.50	 	 	 	MO	 	 	 	612.00	 	 	 	918.00	 	 	 	 	 	 	Assume 3 units, half month
	Pickup Trucks	 	 	60	 	 	 	DY	 	 	 	56.00	 	 	 	3,360.00	 	 	 	 	 	 	 
	Mileage	 	 	600	 	 	 	MI	 	 	 	0.54	 	 	 	321.00	 	 	 	 	 	 	 
	Initial Explosives Mag Fill	 	 	1	 	 	 	BUD	 	 	 	30,000.00	 	 	 	30,000.00	 	 	 	 	 	 	 
	Diesel Quasar	 	 	0.50	 	 	 	MO	 	 	 	15,500.00	 	 	 	7,750.00	 	 	 	 	 	 	 
	CAT R1300	 	 	1.00	 	 	 	MO	 	 	 	13,750.00	 	 	 	13,750.00	 	 	 	 	 	 	Assume 2 units x 1/2 mo
	Misc Rental items, PPE, etc.	 	 	1.00	 	 	 	BUD	 	 	 	10,000.00	 	 	 	10,000.00	 	 	 	 	 	 	 
	Per Diem	 	 	99.00	 	 	 	DY	 	 	 	194.25	 	 	 	19,230.75	 	 	 	 	 	 	Assume 3 men x 15 days + 22 each super and PM + 5 Mine Engineer + 5 surveyor. 75% of Govt rate
	Admin, offsite	 	 	60	 	 	 	HR	 	 	 	46.21	 	 	 	2,772.60	 	 	 	 	 	 	 
	Surface Wheel Loader with Forks for loading and unloading	 	 	1	 	 	 	BUD	 	 	 	0.00	 	 	 	0.00	 	 	 	 	 	 	Assme all surface equipment furnished by Owner
	Electrical Contractor Support	 	 	1	 	 	 	BUD	 	 	 	30,000.00	 	 	 	30,000.00	 	 	 	 	 	 	 Onsite and offsite services
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Onsite Setup Total	 	 	 	 	 	 	 	 	 	 	 	 	$	206,953.59	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	357,460.59	 	 	 

 

    	 

    	 

    

 

Exhibit
E: Consensus Baseline Estimate (“CBE”)

 

	Item	 	Total
	Contractor’s
    Mobilization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	#
    Units	 	 	 	Units	 	 	 	Unit
    Cost	 	 	 	Total	 	 	
	Mining
    Contractor Mobilization	 	 	1	 	 	 	Budget	 	 	 	148,857.25	 	 	$	148,857.25	 	 	 
	Activity
    Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	148,857
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Onsite
    Setup	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Onsite
    Setup - Mining Contractor Costs	 	 	1	 	 	 	Budget	 	 	 	80,155.89	 	 	$	80,156	 	 	 
	Activity
    Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	80,156
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Enserch
    Adit Enlargement and Rehabilitation	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Slashing
    Good Ground to 12x12	 	 	840	 	 	 	FT	 	 	 	616.50	 	 	$	517,857	 	 	 
	Contractor
    Indirects/Sitewide Cost	 	 	31	 	 	 	Days	 	 	 	2,852.51	 	 	$	89,253	 	 	 
	Activity
    Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	607,109
	Ramp
    To Coleman	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coleman
    Ramp - 12‘x12’ arched - good ground	 	 	2517	 	 	 	FT	 	 	 	931.45	 	 	$	2,344,464	 	 	 
	Muckbay
    Intersection Work	 	 	4	 	 	 	EA	 	 	 	33,367.51	 	 	$	133,470	 	 	 
	Contractor
    Indirects/Sitewide Cost	 	 	89	 	 	 	Days	 	 	 	4,754.18	 	 	$	421,146	 	 	 
	Activity
    Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	2,899,081
	Demobilization
    - Mining Contractor	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 #
    Units	 	 	 	Units	 	 	 	Unit
    Cost	 	 	 	Total	 	 	 
	Mining
    Contractor Demobilization	 	 	1	 	 	 	Budget	 	 	 	147,224.49	 	 	$	147,224.49	 	 	 
	Activity
    Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	147,224
	Estimated
    Total for Initial Scope	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	3,882,428
	Contingency
    @ 15 %	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	582,364.13
	Recommended
    Total Budget	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	4,464,792

 

    	 

    	 

    

 

EXHIBIT
F OWNER PURCHASED EQUIPMENT

 

	Telescopic forklift JCB 520	 	 	1	 	 	$	28,500	 
	Work Deck for Forks	 	 	1	 	 	$	1,800	 
	Eimco 950/955 UG utility flatbed	 	 	1	 	 	$	30,000	 
	Bolting Basket	 	 	1	 	 	$	3,800	 
	GE Portable UG substation - 300 KVA 1 refurbished needs breaker panels, 1 core for rebuild	 	 	2	 	 	 	pending	 
	480 to 4.16 Kv Step-up unit Intermtn Elect	 	 	1	 	 	 	pending	 
	480 V Electrical Dist. Connex Electrical Automation	 	 	1	 	 	 	pending	 
	HV Electrical Switch 25kV Pemco rebuilt by Intermtn Elec and Electrical Autom	 	 	1	 	 	 	pending	 
	Large Bangboard/starter box	 	 	2	 	 	 	pending	 
	Small Bangboard / starter box	 	 	2	 	 	 	pendinglimited
liability company OPERATING AGREEMENT

 

OF
ALASKA GOLD TORRENT, llc

 

Dated
effective as of February 9, 2017

 

    	 	 	 

    	 

    

 

TABLE
OF CONTENTS

 

	RECITALS	1
	ARTICLE
    I DEFINITIONS AND INTERPRETATION	2
	1.2	Interpretation	12
	1.3	Coordination
    With Exhibits	12
	ARTICLE
    II The Limited Liability Company	13
	2.1	General	13
	2.2	Name	13
	2.3	Purposes	13
	2.5	Limitation	14
	2.5	The
    Members	14
	2.6	Issuance
    of Additional Interests	14
	2.7	Term	14
	2.8	Registered
    Agent; Offices	14
	ARTICLE
    III Interests; Capital Contributions	14
	3.1	Interests	14
	3.2
    	Adjustments
    to Interests and Contributions.	15
	3.3	Joint
    Funding	16
	3.4	Cash
    Calls During Joint Funding	16
	3.5
    	Return
    of Contributions	16
	ARTICLE
    IV MEMBERS	16
	4.2	Company
    Indemnification of Members	16
	4.3	Member
    Indemnification	17
	4.4	Member
    Reimbursement Obligations	18
	4.5	Coordination	19
	4.6	Exclusive
    Rights of Members	19
	4.7	Meetings;
    Written Consent	19
	4.8	No
    Member Fees	19
	4.9	No
    State Law Partnership	19
	4.10	No
    Implied Covenants; No Fiduciary Duties	19
	4.11	Other
    Business Opportunities	20
	ARTICLE
    V COMPANY MANAGEMENT	20
	5.1	Management
    Authority	20
	5.2	Management
    Committee	20
	5.3	Manager;
    Duties	23
	5.4	Standards
    of Care	26
	5.5	Exculpation	26
	5.6	Indemnification
    of Manager and Representatives	27
	5.7	Resignation;
    Removal; Replacement	28
	5.8	Payments
    To Manager	29
	5.9	Affiliate
    Transactions	29
	5.11	Financing
    	29

 

    	 	 	 

    	 

    

 

	ARTICLE
    VI PROGRAMS AND BUDGETS; ACCOUNTING AND REPORTING	29
	6.1	Initial
    Program and Budget	29
	6.2	Operations
    Under Programs and Budgets	29
	6.3	Presentation
    of Proposed Programs and Budgets	29
	6.4	Approval
    of Proposed Programs and Budgets	30
	6.5	Amendments	30
	6.6	Election
    to Participate	31
	6.7	Recalculation
    and Restoration for Actual Contributions	32
	6.8	Deadlock
    on Proposed Programs and Budgets	33
	6.9	Budget
    Overruns; Program Changes	33
	6.10	Emergency
    or Unexpected Expenditures	33
	6.11	Monthly
    Reports	34
	6.12	Inspection
    Rights	34
	6.13	Independent
    Audit	34
	ARTICLE
    VII DISTRIBUTIONS; DISPOSITION OF PRODUCTION	35
	7.1	Distributions	35
	7.4	GTI’s
    Allocations and Distributions	37
	ARTICLE
    VIII TRANSFERS AND ENCUMBRANCES OF INTERESTS	38
	8.1	Restrictions
    on Transfer	38
	8.2	Permitted
    Transfers and Permitted Interest Encumbrances	38
	8.3	Additional
    Limitations on Transfers and Encumbrances	39
	8.4	Right
    of First Refusal	40
	8.5	Substitution
    of a Member	41
	8.6	Conditions
    to Substitution	42
	8.7	Admission
    as a Member	42
	8.8	Economic
    Interest Holders	42
	ARTICLE
    IX RESIGNATION, DISSOLUTION AND LIQUIDATION	43
	9.1	Resignation	43
	9.2	Non-Compete
    Covenant	44
	9.3	Dissolution	44
	9.4	Liquidation	44
	9.5	Termination	46
	ARTICLE
    X AREA OF INTEREST; ABANDONMENT	46
	10.1	Acquisitions
    Within Area of Interest	46
	10.2	Surrender
    or Abandonment of Claims	47
	ARTICLE
    XI MISCELLANEOUS	47
	11.3
    	Usage
    of Terms	48
	11.4	Confidentiality	48
	11.5	Public
    Announcements	49
	11.6	Notices	49
	11.7	Headings	50
	11.8	Waiver	50
	11.9	Amendment	50
	11.10	Severability	51
	11.11	Recitals.
    	51
	11.12	Force
    Majeure	51
	11.13	Rules
    of Construction	51
	11.14	Governing
    Law	51
	11.15	Waiver
    of Jury Trial; Consent to Jurisdiction	51
	11.16	Further
    Assurances	52
	11.17	Survival	52
	11.18	No
    Third-Party Beneficiaries	53
	11.19	Entire
    Agreement	53
	11.20	Avoidance
    of Provisions	53
	11.21	Parties
    in Interest	53
	11.22	Execution
    by Electronic Transmission	53
	11.23	Counterparts	53
	11.24	Rule
    Against Perpetuities	53

 

EXHIBITS

 

	Exhibit
    A	Description
    OF THE CLAIMS
	Exhibit
    B	Accounting
    Procedure
	Exhibit
    C	Tax
    Matters
	Exhibit
    D	Net
    Proceeds Calculation
	Exhibit
    E	Insurance
	Exhibit
    F	Initial
    Program and Budget
	EXHIBIT
    G	DEED

 

    	 	 	 

    	 

    

 

LIMITED
LIABILITY COMPANY OPERATING AGREEMENT

OF ALASKA GOLD TORRENT, LLC

 

This
Limited Liability Company Operating Agreement (this “Agreement”), is made as of January 31, 2017 (the
“Effective Date”), by and among Alaska Gold Torrent, LLC, an Alaska limited liability company (the “Company”),
Miranda U.S.A., Inc., a Nevada corporation wholly-owned by Miranda Gold Corp. (“Miranda”), Gold Torrent,
Inc., a Nevada corporation (“GTI”) and all other Persons who become parties hereto as Members of the
Company. Miranda and GTI are hereinafter sometimes jointly referred to as the “Members” and sometimes individually
as a “Member.”

 

Recitals

 

	A.	Miranda
    leases certain federal patented mining claims (the “Patented Claims”) and State of Alaska mining
    claims (the “State Claims”) which are located in the Willow Creek Mining District, Alaska. Gold
    Torrent owns a parcel of private land to be used for the gold recovery plant (the “Plant Site”)
    which is located along parks highway north of Willow, Alaska. The Patented Claims and the State Claims are hereinafter collectively
    referred to as the “Claims” and, together with the Plant Site are more particularly described in
    Exhibit A. 
	 	 
	B.	The
    Members are parties to the Exploration and Option to Enter Joint Venture Agreement Willow Creek Project, made effective as
    of November 5, 2014 (the “Option Agreement”), pursuant to which the Members agreed to enter into
    this Agreement upon GTI’s: (1) completion of an initial earn-in capital contribution of One Million Seventy Thousand
    and 00/100 United States Dollars (USD$1,070,000.00) (“GTI’s Initial Earn-In Capital Contribution”);
    and (2) giving notice to Miranda of its option to acquire a twenty percent (20%) Interest and to enter into this Agreement
    (the “Option Notice”).
	 	 
	C.
    	GTI
    has made GTI’s Initial Earn-In Capital Contribution and has given the Option Notice to Miranda.
	 	 
	D.
    	At
    the Effective Date of this Agreement, GTI has arranged and contributed to the Company an $11.25 million Gold and Silver Pre-purchase
    Agreement (the “Financing”) between the Company and CRH Funding II Pte. Ltd. (“CRH”)
    and proceeds of the Financing are attributed to GTI’s capital contributions including the initial earn-in requirements
    under the Option Agreement and pursuant to this Agreement. Subject to the Company’s satisfactory completion of the Financing’s
    conditions to the drawdown of the funds, GTI owns seventy percent (70%) Interest and Miranda owns thirty percent (30%) Interest.
	 	 
	E.	The
    Company has been formed by Miranda and GTI to conduct Exploration for and the Development of minerals on the Claims and to
    conduct the Operations contemplated by this Agreement.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 1

    	 

    

 

In
consideration of the premises and the mutual agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Members hereto agree as follows:

 

Article
I

DEFINITIONS AND INTERPRETATION

 

1.1 Definitions.
The following terms shall have the following meanings as used in this Agreement:

 

“Accounting
Procedure” means the accounting and other procedures in Exhibit B.

 

“Acquiring
Member” shall have the meaning set forth in Section 10.1(b).

 

“Act”
means the Alaska Revised Limited Liability Company Act, Alaska Statutes Title 10. Chapter 50.

 

“Adverse
Consequences” mean, with respect to a Person, claims, actions, causes of action, damages, losses, liabilities, obligations,
penalties, judgments, amounts paid in settlement, assessments, costs, disbursements and expenses (including reasonable attorneys’
fees and costs, experts’ fees and costs, and consultants’ fees and costs) of any kind or nature against, suffered
or incurred by the Person, including, if the Person is a Member, any of the foregoing suffered or incurred by the Company to the
extent funded by Capital Contributions of the Member to the Company, but excluding any diminution in the value of the Company
or its Assets or any Interest.

 

“Affiliate”
means with respect to a Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is
Controlled by or is under common Control with, the subject Person. Notwithstanding the previous sentence, the Company shall not
be considered an Affiliate of either Member or any of their respective Affiliates.

 

“Agreement”
shall have the meaning set forth in the introductory paragraph.

 

“Amendments”
shall have the meaning set forth in Section 6.5.

 

“Area
of Interest” means: (a) the lands within one (1) mile of the exterior boundaries of the Claims as of the Effective
Date; and (b) all mining claims acquired or located by the Members, as well as all mineral rights or other property interests
and rights acquired by the Members within one (1) mile of the exterior boundaries of any unpatented mining claims located within
the area encompassed by the Claims as of or after the Effective Date.

 

“Assets”
means the Claims, the Plant Site, Products and all other real and personal property, tangible and intangible, including existing
or after-acquired properties, and all contract rights, in each case held by the Company.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 2

    	 

    

 

“Budget”
means a detailed estimate of all costs to be incurred and a schedule of Capital Contributions to be made by the Members with respect
to a Program.

 

“Business”
means the conduct of the business of the Company in furtherance of the purposes stated in Section 2.3 and in accordance
with this Agreement.

 

“Business
Account” means the account maintained by the Manager for the Company in accordance with the Accounting Procedure.

 

“Business
Day” shall mean a day other than a Saturday or a Sunday on which commercial banks in the State of Alaska are not
required or permitted under applicable laws or regulations to close.

 

“Capital
Account” means the capital account maintained for each Member in accordance with Treasury Regulations §
1.704-1(b)(2)(iv).

 

“Capital
Contribution” means, with respect to a Member, the sum of: (a) the dollar amounts of any cash and cash equivalents
contributed by the Member to the capital of the Company; plus (b) the fair market value, as agreed by all of the Members, or if
they cannot agree, as determined by the Management Committee, acting reasonably, of any property (other than cash or cash equivalents)
contributed by the Member to the capital of the Company. In the context of a proposed or adopted Program and Budget, Capital Contribution
means the proposed or actual amount of capital that each Member is required to contribute to the Company from time to time to
fund the Program and Budget.

 

“Claims”
shall have the meaning set forth in Recital A and are more particularly described in Exhibit A.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended and in effect from time to time, and any successor statute.

 

“Company”
means Alaska Gold Torrent LLC, an Alaska limited liability company.

 

“Confidential
Information” means the Existing Data, and all information, data, knowledge and know-how (including formulas, patterns,
compilations, programs, devices, methods, techniques and processes) provided by the Company, a Member or the Manager, any of their
respective Affiliates, or any of their respective employees or agents that either: (a) derive independent economic value, actual
or potential, as a result of not being generally known to, or readily ascertainable by, third parties and that are the
subject of efforts that are reasonable under the circumstances to maintain their secrecy; or (b) are designated by the providing
Person as confidential, in each case including all analyses, interpretations, compilations, studies and evaluations based on the
information, data, knowledge and know-how that are generated or prepared by or on behalf of the recipient of the information,
data, knowledge or know-how.

 

“Continuing
Obligations” means obligations or responsibilities that are reasonably expected to or actually continue or arise
after Operations on a particular area of the Properties have ceased or are suspended, such as future monitoring, stabilization,
or Environmental Compliance.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 3

    	 

    

 

“Contributed
Capital” means the aggregate amount of Capital Contributions made by each Member to the Company.

 

“Contributing
Member” shall have the meaning set forth in Section 6.6(b).

 

“Control”
means: (a) when used as a verb: (i) with respect to an entity, the ability, directly or indirectly through one or more intermediaries,
to direct or cause the direction of the management and policies of the entity through the legal or beneficial ownership of voting
securities or the right to appoint managers, directors or corporate management, or by contract, operating agreement, voting trust
or otherwise; and (ii) with respect to a natural person, the actual or legal ability to control the actions of another, through
family relationship, agency, contract or otherwise; and (b) when used as a noun, an interest that gives the holder the ability
to exercise any of the powers described in clause (a) of this definition.

 

“Covered
Real Property” shall have the meaning set forth in Section 10.1(a).

 

“Development”
means all preparation (other than Exploration) for the removal and recovery of Products, including pre-stripping, stripping and
the construction or installation of a mill, leach facilities, or any other improvements to be used for the mining, handling, milling,
processing or other beneficiation of Products, and all related Environmental Compliance.

 

“Effective
Date” shall have the meaning set forth in the introductory paragraph.

 

“Encumbrance”
means any mortgage, deed of trust, security interest, pledge, lien, right of first refusal, right of first offer, other preferential
right, profits interest, net profits interest, royalty interest, overriding royalty interest, conditional sale or title retention
agreement, or other burdens of any nature.

 

“Environmental
Compliance” means actions performed during or after Operations to comply with the requirements of all Environmental
Laws or contractual commitments related to reclamation of the Properties or other compliance with Environmental Laws.

 

“Environmental
Compliance Fund” means the account established under Section 2.14 of Exhibit B.

 

“Environmental
Laws” means Laws aimed at reclamation or restoration of the Properties; abatement of pollution; protection of the
environment; protection of wildlife, including endangered species; ensuring public safety from environmental hazards; employee
health and safety; protection of cultural or historic resources; management, storage or control of hazardous materials and substances;
releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes
into the environment, including ambient air, surface water and groundwater; and all other Laws relating to the existence, manufacture,
processing, distribution, use, treatment, storage, disposal, recycling, handling or transport of pollutants, contaminants, chemicals
or industrial, toxic or hazardous substances or wastes.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 4

    	 

    

 

“Environmental
Liabilities” means any and all Adverse Consequences (including liabilities for studies, testing or investigatory
costs, cleanup costs, response costs, removal costs, remediation costs, containment costs, restoration costs, corrective action
costs, closure costs, reclamation costs, natural resource damages, property damages, business losses, personal injuries, penalties
or fines) that are asserted against the Company, each of the Members or the Manager, by any Person other than the Members, arising
out of, based on or resulting from: (a) the presence, release, threatened release, discharge or emission into the environment
of any hazardous materials or substances existing or arising on, beneath or above the Properties or emanating, migrating or threatening
to emanate or migrate from the Properties ‘to off-site properties; (b) physical disturbance of the environment; or (c) the violation
or alleged violation of any Environmental Laws.

 

“Existing
Data” means: (a) all records, information and data relating to the Claims or environmental conditions at or pertaining
to the Claims; (b) all maps, assays, surveys, technical reports, drill logs, samples, mine, mill, processing and smelter records,
and metallurgical, geological, geophysical, geochemical, and engineering data, and interpretive reports derived therefrom; and
(c) all production reports, accounting and financial records, and other material information, in each case pertaining to or developed
in operations on the Claims in the possession of, or reasonably available to, Miranda or GTI as of the Effective Date.

 

“Expenditures”
means all costs incurred by the Company pursuant to approved Programs and Budgets or otherwise as contemplated by this Agreement
, including but not limited to: (a) salaries, wages and costs of benefits, labor overhead expenses and travel and living expenses
for the Company’s employees and/or agents employed directly on or for the benefit of the Claims; (b) costs and expenses
of equipment, machinery, materials and supplies; (c) all payments to contractors for work on or for the benefit of the Claims;
(d) costs of sampling, assays, metallurgical testing and analyses and other costs incurred to determine the quantity and quality
of minerals on the Claims; (e) costs incurred to apply for and obtain approvals, consents, licenses, Permits and rights-of-way
and other similar rights in connection with activities on the Claims; (f) expenses and payments of rentals, bonuses, minimum advance
royalties and other payments pursuant to the Underlying Agreement, if any; (g) costs and expenses of performance of annual assessment
work and the filing and recording of proof of performance of annual assessment work, if required to be performed; (h) costs and
expenses of payment of federal and State of Alaska annual mining claim maintenance fees and the filing and recording of proof
of payment of the federal and State of Alaska annual mining claim maintenance fees; (i) all costs and expenses of performance
of all obligations under the Underlying Agreement, if any; (j) all taxes and assessments levied against the Claims; and (k) costs
incurred to acquire new mineral rights or other property interests and rights in the area encompassed by the Claims.

 

“Excess
Contribution” shall have the meaning set forth in Section 6.6(b).

 

“Exploration”
means all activities directed toward ascertaining the existence, location, quantity, quality or commercial value of deposits of
Products, including drilling required after discovery of potentially commercial mineralization, and all related Environmental
Compliance.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 5

    	 

    

 

“Feasibility
Study” means a comprehensive study of a mineral deposit in which all geological,
engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail
that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the
deposit for mineral production, prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators.

 

“Force
Majeure Event” means, with respect to any Member or the Manager, any cause, condition, event or circumstance, whether
foreseeable or unforeseeable, beyond its reasonable control, including the following to the extent beyond its reasonable control:
(a) labor disputes (however arising and whether or not employee demands are reasonable or within the power of the Member or Manager
to grant); (b) the inability to obtain on reasonably acceptable terms any Permit or private license, consent or other authorization,
and any actions or inactions by any Governmental Authorities or private third parties that delay or prevent the issuance or granting
of any Permits or other authorization required to conduct Operations beyond the reasonable expectations of the Member or Manager
seeking the Permit or other authorization, including: (i) the failure to complete any review and analysis required by the National
Environmental Policy Act or any similar state law within twenty-four (24) months of initiation of that process, provided that
the Manager diligently prosecutes the process, and (ii) an appeal of the issuance of a Permit or authorization that revokes, suspends
or curtails the right under the Permit or authorization to conduct Operations; (c) changes in Law, and instructions, requests,
judgments and orders of Governmental Authorities; (d) curtailments or suspensions of activities to remedy or avoid an actual or
alleged, present or prospective violation of Environmental Laws; (e) acts of terrorism, acts of war, and conditions arising out
of or attributable to terrorism or war, whether declared or undeclared; (f) riots, civil strife, insurrections and rebellions;
(g) fires, explosions and acts of God, including earthquakes, storms, floods, sink holes, droughts and other adverse weather conditions;
(h) delays and failures of suppliers to supply, or of transporters to deliver, materials, parts, supplies, services or equipment;
(i) contractors’ or subcontractors’ shortage of, or inability to obtain, labor, transportation, materials, machinery,
equipment, supplies, utilities or services; (j) accidents; (k) breakdowns of equipment, machinery or facilities; (l) actions by
native rights groups, environmental groups, or other similar special interest groups; and (m) other similar causes, conditions,
events and circumstances, whether similar or dissimilar to the foregoing, beyond its reasonable control.

 

“GAAP”
means generally accepted accounting principles in the United States.

 

“Governmental
Authority” means any domestic or foreign national, regional, state, tribal, or local court, governmental department,
commission, authority, central bank, board, bureau, agency, official, or other instrumentality exercising executive, legislative,
judicial, taxing, regulatory, or administrative powers or functions of or pertaining to government.

 

“Governmental
Fees” means all location fees, mining claim rental fees, mining claim maintenance payments, recording or filing
fees and other payments required by Law to be paid to any Governmental Authority to locate or maintain any licenses, Permits,
unpatented mining claims, concessions, fee lands, mining leases, surface leases or other tenures included in the Claims.

 

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“GTI”
shall have the meaning set forth in the introductory paragraph.

 

“GTI
Products” shall have the meaning set forth in Section 7.3(a).

 

“GTI’s
Initial Earn-In Capital Contribution” shall have the meaning set forth in Recital B.

 

“Indemnified
Member Parties” shall have the meaning set forth in Section 4.3(a).

 

“Indemnifying
Member” has the meaning set forth in Section 4.3(a).

 

“Independent
Accountant” shall have the meaning set forth in Section 6.13.

 

“Insolvency
Event” means, with respect to a Person, the occurrence of any of the following events: (a) a receiver, Liquidator,
assignee, custodian, trustee, sequestrator or similar official for a substantial part of the Person’s assets is appointed
and the appointment is neither made ineffective nor discharged within sixty (60) days after the making thereof, or the appointment
is consented to, requested by, or acquiesced in by the Person; (b) the Person commences a voluntary case, or consents to the entry
of any order for relief in an involuntary case, under any applicable bankruptcy, insolvency or similar Law; (c) the Person consents
to the appointment of or taking possession by a receiver, Liquidator, assignee, custodian, trustee, sequestrator or other similar
official of any substantial part of its assets; (d) the Person makes a general assignment for the benefit of creditors or fails
generally to pay its debts as they become due; or (e) entry is made against the Person of a judgment, decree or order for relief
affecting a substantial part of its assets by a court of competent jurisdiction in an involuntary case commenced under any applicable
bankruptcy, insolvency or other similar Law.

 

“Interest”
means, with respect to a Member: (a) the limited liability company interest of the Member, including the Member’s Capital
Account and share of items of Profit, Loss and credits of, and the right to receive distributions (liquidating or otherwise) from
the Company under the terms of this Agreement; (b) the Member’s status as a Member; (c) all other rights, benefits and privileges
enjoyed by the Member in its capacity as a Member, including the Member’s rights to vote, consent and approve those matters
described in this Agreement; and (d) all obligations, duties and liabilities imposed on the Member under this Agreement in its
capacity as a Member (but not in the capacity of a Manager or other capacity). The Interest of a Member shall be reflected as
a percentage, reflecting the percentage interest of the Member in certain allocations of items of Profit, Loss and credit and
certain distributions of cash or property, as the percentage interest may from time to time be adjusted under this Agreement.
Interests shall be calculated to three decimal places and rounded to two (e.g., 1.519% rounded to 1.52%). Decimals of 0.005 or
more shall be rounded up to 0.01. Decimals of less than 0.005 shall be rounded down. The initial Interests of the Members as of
the Effective Date are in Section 3.1(a).

 

“Joint
Funding” shall have the meaning set forth in Section 3.3.

 

“Law”
means all applicable federal, state, local, municipal, tribal and foreign laws (statutory or common), rules, ordinances, regulations,
grants, concessions, franchises, licenses, orders, directives, judgments, decrees, and other governmental restrictions, including
Permits and other similar requirements, whether legislative, municipal, administrative or judicial in nature.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 7

    	 

    

 

“Lease”
shall have the meaning set forth in the definition of the Underlying Agreement below.

 

“Liquidator”
shall have the meaning set forth in Section 9.4(a).

 

“Loss”
mean any item of loss or deduction of the Company as determined under the capital accounting rules of Treasury Regulation §
1.704-1(b)(2)(iv) for purposes of adjusting the capital accounts of the Members including, without limitation, the provisions
of paragraphs (b), (f) and (g) of those regulations relating to the computation of items of deduction and loss.

 

“Major
Decision” shall have the meaning set forth in Section 5.2(f).

 

“Management
Committee” shall have the meaning set forth in Section 5.2(a).

 

“Manager”
shall have the meaning set forth in Section 5.3.

 

“Member”
and “Members” mean Miranda and GTI and any other Person admitted as a substituted or additional Member
of the Company under this Agreement. The term “Member” also includes a former Member, but only to the extent of any
rights or obligations under this Agreement that expressly survive the resignation of the Member, the Transfer of the Member’s
Interest or the dissolution and liquidation of the Company.

 

“Mining”
means the mining, extracting, producing, handling, milling or other processing of Products.

 

“Miranda”
shall have the meaning set forth in the introductory paragraph.

 

“Miranda’s
Initial Earn-In Contribution” shall have the meaning set forth in Section 3.1(b).

 

“Miranda
Products” shall have the meaning set forth in Section 7.3(a).

 

“Misconduct”
means, with respect to a Member: (a) an unauthorized act or assumption of liability by the Member, or any of its directors, officers,
employees, agents and attorneys done or undertaken, or apparently done or undertaken, on behalf of the Company or the other Member,
except under the authority expressly granted in this Agreement or as otherwise agreed in writing by the Members; (b) a material
breach by the Member in its capacity as a Member (but not in its capacity as the Manager or Representative) of any covenant contained
in this Agreement; or (c) if the Member or an Affiliate of the Member is the Manager, a material breach by the Manager of any
of its obligations under this Agreement that: (i) constitutes a breach of its standard of care under Section 5.4, as limited
by Section 5.5; and (ii) continues for thirty (30) days after Notice from any other Member demanding performance (unless
the Manager in good faith disputes the existence of the material breach).

 

“Monthly
Capital Calls” shall have the meaning set forth in Section 7.3(d).

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 8

    	 

    

 

“Net
Proceeds” means the amounts calculated as provided in Exhibit D that may be payable to a Member after
the resignation or deemed resignation of the Member as provided in this Agreement.

 

“Non-Contributing
Member” shall have the meaning set forth in Section 6.6(a).

 

“Non-Contribution
Notice” shall have the meaning set forth in Section 6.6(a).

 

“Notice”
shall have the meaning set forth in Section 11.4(a).

 

“Notified
Member” shall have the meaning set forth in Section 8.4(a).

 

“Offer
Notice” shall have the meaning set forth in Section 8.4(a).

 

“Offered
Interest” shall have the meaning set forth in Section 8.4(a).

 

“Offered
Price” shall have the meaning set forth in Section 8.4(a).

 

“Offered
Terms” shall have the meaning set forth in Section 8.4(a).

 

“Operations”
means the activities and operations of the Company.

 

“Option
Agreement” shall have the meaning set forth in Recital B.

 

“Option
Notice” shall have the meaning set forth in Recital B.

 

“Permit”
means any permit, franchise, license, authorization, order, certificate, registration, variance, settlement, compliance plan or
other consent or approval granted by any Governmental Authority.

 

“Permitted
Encumbrance” means, with respect to any Assets: (a) Encumbrances specifically approved by the Management Committee;
(b) mechanic’s, materialmen’s or similar Encumbrances if payment of the secured obligation is not yet overdue or being
contested in good faith; (c) Encumbrances for taxes, assessments, obligations under workers’ compensation or other social
welfare legislation or other requirements, charges or levies of any Governmental Authority, in each case not yet overdue or being
contested in good faith; (d) Encumbrances existing at the time of, or created concurrent with, the acquisition of the Assets;
(e) easements, servitudes, rights-of-way and other rights, exceptions, reservations, conditions, limitations, covenants and other
restrictions that do not materially interfere with, materially impair or materially impede the Business or Operations or the value
or use of the Assets; (f) pledges and deposits to secure the performance of bids, tenders, trade or government contracts (other
than for repayment of borrowed money), leases, licenses, statutory obligations, surety bonds, performance bonds, completion bonds
and other similar obligations that are incurred in the ordinary course of Operations on the Assets; and (g) Encumbrances consisting
of: (i) rights reserved to or vested in any Governmental Authority to control or regulate the Assets; (ii) obligations or duties
to any Governmental Authority with respect to any Permits and the rights reserved or vested in any Governmental Authority to terminate
Permits or to condemn or expropriate property; and (iii) zoning or other land use or Environmental Laws of any Governmental Authority.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 9

    	 

    

 

“Permitted
Interest Encumbrance” shall have the meaning set forth in Section 8.2(b).

 

“Permitted
Transfer” shall have the meaning set forth in Section 8.2(a).

 

“Person”
means a natural person, corporation, joint venture, partnership, limited liability partnership, limited partnership, limited liability
limited partnership, limited liability company, trust, estate, business trust, association, Governmental Authority or other entity.

 

“Pre-Feasibility
Study” means a comprehensive study, prepared in compliance with National Instrument 43-101 of the Canadian Securities
Administrators, of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground
mining, or the pit configuration, in the case of an open pit, has been established and an effective method of mineral processing
has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating,
social and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting
reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve.

 

“Prime
Rate” means the interest rate quoted as “U.S. Prime” on the website http://www.fedprimerate.com
(or, failing this website, other such website that reports the U.S. Federal Funds Target Rate) which is the U.S. Federal Funds
Target Rate Plus three percent (3%). The Prime Rate may change from day to day (which quoted rate may not be the lowest rate at
which the bank loans funds).

 

“Products”
means all ores, minerals and mineral resources produced from the Properties.

 

“Profit”
means any item of income or gain of the Company as determined under the capital accounting rules of Treasury Regulation §
1.704-1(b)(2)(iv) for purposes of adjusting the Capital Accounts of the Members including, without limitation, the provisions
of paragraphs (b), (f) and (g) of those regulations relating to the computation of items of income or gain.

 

“Program”
means a description in reasonable detail of Operations to be conducted and objectives to be accomplished by the Manager for a
year or any longer period.

 

“Project
Financing” means any financing approved by the Management Committee and obtained by the Company for the purpose
of placing a mineral deposit situated on the Claims into commercial production, and any replacement, renewal or extension financing
or refinancing approved by the Management Committee. Project Financing shall not include any financing obtained individually by
either Member to finance payment or performance of its obligations under this Agreement.

 

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“Properties”
means: (a) the Claims, together with all water and water rights, easements and rights-of-way, and other appurtenances attached
to or associated with the Claims; and (b) all other interests in real property within the Area of Interest that are acquired by
the Company after the Effective Date.

 

“Renshaw
Royalty” shall have the meaning set forth in Section 11.2.

 

“Representatives”
shall have the meaning set forth in Section 5.2(a).

 

“Requesting
Member” shall have the meaning set forth in Section 7.3(b).

 

“Securities
Act” means the Securities Act of 1933, together with the rules and regulations promulgated by the United States
Securities and Exchange Commission under the statute.

 

“Selling
Member” shall have the meaning set forth in Section 8.4(a).

 

“Tax
Distribution” shall have the meaning set forth in Section 7.1(d).

 

“Tax
Distribution Amount” means, with respect to each Member, the remainder of the amount calculated in clause (a) below
minus the amount calculated in clause (b) below of this definition.

 

(a) The
amount under this clause (a) is the product of Tax Percentage multiplied by the remainder of: (i) the cumulative amounts of items
of income and gain allocated to the Member for federal income tax purposes for all periods (excluding gains from the sale of all
or substantially all the assets of the Company); minus (ii) the cumulative amounts of items of deduction, loss and expense allocated
to the Member for federal income tax purposes for all periods (excluding losses from the sale of all or substantially all of the
assets of the Company).

 

(b) The
amount under this clause (b) is the cumulative distributions distributed to the Member pursuant to this Agreement for all periods.

 

“Tax
Percentage” means a percentage (which percentage shall be the same for each Member regardless of such Member’s
actual effective state or federal tax rates) established at the maximum marginal state and federal tax rates in effect for corporations
in the State of Alaska for the calendar year to which the applicable Tax Distribution Amount relates or such other rate as the
Management Committee shall reasonably determine. The Tax Percentage shall be such percentage reasonably determined by the Management
Committee in accordance with the preceding sentence from time to time.

 

“Transfer”
means, with respect to any asset, including any Interest or other interest in the Company (including any right to receive distributions
from the Company or any other economic interest in the Company), a sale, assignment, transfer, conveyance, gift, exchange or other
disposition of the asset, whether the disposition is voluntary, involuntary or by merger, exchange, consolidation, bankruptcy
or other operation of Law, including: (a) in the case of an asset owned by a natural person, a transfer of the asset upon the
death of its owner, whether by will, intestate succession or otherwise; (b) in the case of an asset owned by a Person that is
not a natural person, a distribution of the asset, including in connection with the dissolution, liquidation, winding up or termination
of the Person (other than a liquidation under a deemed termination solely for tax purposes); and (c) a disposition in connection
with, or in lieu of, a foreclosure of an Encumbrance on the asset; provided, that the creation of an Encumbrance on an
asset shall not constitute a Transfer of the asset.

 

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“Technical
Report” means the National Instrument 43-101 Technical Report: Preliminary Feasibility Study for the Lucky Shot
Project, Matanuska-Susitna Borough, Alaska, USA, dated June 30, 2016, prepared by Hard Rock Consulting, LLC.

 

“Underfunded
Amount” shall have the meaning set forth in Section 6.6(a).

 

“Underlying
Agreement” means any agreement, conveyance or instrument to which any of the Properties are subject and that contain
unperformed, ongoing or surviving obligations or liabilities of any party, including the lease agreement between Alaska Hardrock
Inc., as Lessor, and Miranda, as Lessee, dated on or about November 15, 2013 (the “Lease”), and any
amendments to the Lease.

 

1.2
Interpretation. In interpreting this Agreement, except as otherwise indicated in this Agreement or as the context may
otherwise require: (a) the words “include,” “includes,” and “including” are deemed to be followed
by “without limitation” whether or not they are in fact followed by those words or words of similar import; (b) the
words “hereof,” “herein,” “hereunder,” and comparable terms refer to the entirety of this
Agreement, including the Appendix or Exhibits, and not to any particular Article, Section, or other subdivision of this Agreement
or Appendix or Exhibit to this Agreement; (c) any pronoun shall include the corresponding masculine, feminine, and neuter forms;
(d) the singular includes the plural and vice versa; (e) references to any agreement (including this Agreement) or other document
are to the agreement or document as amended, modified, supplemented, and restated now or from time to time in the future; (f)
references to any Law are to it as amended, modified, supplemented, and restated now or from time to time in the future, and to
any corresponding provisions of successor Laws; (g) except as otherwise expressly provided in this Agreement, references to an
“Article,” “Section,” “subsection,” “clause,” or another subdivision, or to the
“Appendix” or an “Exhibit,” are to an Article, Section, subsection, clause or subdivision in this Agreement,
or to the “Appendix” or an “Exhibit” to this Agreement; (h) references to any Person include the Person’s
respective successors and permitted assigns; (i) references to “dollars” or “$” shall mean the lawful
currency of the United States of America; (j) references to a “day” or number of “days” (without the explicit
qualification of “Business”) refer to a calendar day or number of calendar days; (k) if interest is to be computed
under this Agreement, it shall be computed on the basis of a three hundred sixty (360) day year of twelve (12) thirty (30) day
months; (l) if any action or notice is to be taken or given on or by a particular calendar day, and the calendar day is not a
Business Day, then the action or notice may be taken or given on the next succeeding Business Day; and (m) any financial or accounting
terms that are not otherwise defined herein shall have the meanings given under GAAP.

 

1.3
Coordination With Exhibits. Notwithstanding Section 1.2(g), except as otherwise expressly provided in an Exhibit,
references in the Exhibit to an “Article,” “Section,” “subsection,” “clause” or
another subdivision, are to an Article, Section, subsection, clause or subdivision in the Exhibit. Except as otherwise provided
in an Exhibit, capitalized terms used in the Exhibit that are not defined in the Exhibit shall have the meanings given to them
in this Agreement. If any provision of an Exhibit, other than Exhibit C, conflicts with any provision in the body
of this Agreement, the provision in the body of this Agreement shall control. If any provision of Exhibit C conflicts
with any provision in the body of this Agreement, the provision in Exhibit C shall control.

 

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ARTICLE
II

The Limited Liability Company

 

2.1
General. The Company has been duly organized under the Act by the filing of its certificate of formation (or similar
documentation) in the State of Alaska Division of Corporations, Business and Professional Licensing by an authorized person. The
Members agree that their rights relating to the Company, the Assets and Operations shall be subject to and governed by this Agreement.
To the fullest extent permitted by the Act, this Agreement shall control as to any conflict between this Agreement and the Act
or as to any matter provided for in this Agreement that also is provided for in the Act.

 

 2.2 Name. The name of the Company is “Alaska Gold Torrent, LLC.” The Manager shall accomplish any filings or registration required by jurisdictions in which the Company conducts its Business.

 

 2.3 Purposes. The Company is formed for the following purposes:

 

(a) to
conduct Exploration within the Claims and the Area of Interest;

 

(b) to
acquire additional real property and other interests within the Area of Interest;

 

(c) to
evaluate the possible Development and Mining of the Claims and other Assets acquired within the Area of Interest;

 

(d) to
engage in Development and Mining on the Claims and other Assets acquired within the Area of Interest;

 

(e) to
complete and satisfy all Environmental Compliance obligations and Continuing Obligations affecting the Properties and within the
Area of Interest;

 

(f) to
engage in the marketing, sale and distribution of Products, to the extent provided in Section 7.3; and

 

(g) to
perform any other activities necessary, appropriate or incidental to any of the foregoing or to satisfy or comply with Environmental
Compliance obligations, Continuing Obligations and Laws.

 

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2.5 Limitation.
Unless the Members otherwise agree in writing, the Business of the Company shall be limited to the purposes described in Section
2.3, and nothing in this Agreement shall be construed to enlarge those purposes.

 

2.5 The
Members. The Manager shall maintain a register containing the name, business address, Interest, and Representatives of
each Member, updated to reflect the admission of additional or substituted Members, changes of address, changes in Interests,
and other changes in accordance with this Agreement, and shall provide the updated register to any Member promptly after the written
request of the Member.

 

2.6 Issuance
of Additional Interests. Subject to the terms and conditions of the Financing, additional Interests may be issued to additional
or substituted Members as shall be unanimously approved by the Management Committee. If the issuance of additional Interests has
been properly approved under this Section 2.6, a Person to whom such additional Interests have been issued shall be admitted
to the Company as a Member upon making such Capital Contributions to the Company as the Management Committee may unanimously determine
are required to be made by such Person to acquire its Interest, and upon such Person agreeing to be bound by the terms of this
Agreement as if an original signatory hereto.

 

2.7 Term.
The Company has perpetual existence; provided, that the Company shall be dissolved upon the occurrence of an event described
in Section 9.3.

 

2.8 Registered
Agent; Offices. The initial registered office and registered agent of the Company are in the Company’s certificate
of formation (or similar documentation). The Manager may from time to time designate a successor registered office and registered
agent and may amend the certificate of formation (or similar documentation) of the Company to reflect the change without the approval
of the Members or the Management Committee. The location of the principal place of business of the Company shall be the Manager’s
principal place of business or other location selected by the Manager.

 

ARTICLE
III

Interests; Capital Contributions

 

3.1 Interests
and Contributions.

 

(a) Initial
Interests. As of the Effective Date, the Interest of GTI is seventy percent (70%) and the Interest of Miranda is thirty percent
(30%).

 

(b) Initial
Capital Contributions.

 

(i) As
its initial Capital Contribution (“Miranda’s Initial Capital Contribution”), Miranda has contributed
to the Company as of the Effective Date: (A) all of its right and interest in and to the Claims; and (B) the Existing Data. The
Members agree that the fair market value of Miranda’s Initial Earn-In Capital Contribution as of the Effective Date equals
Four Million Two Hundred Eighty-Five Thousand Seven Hundred Fourteen and 00/100 United States Dollars (USD$4,285,714.00).

 

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(ii) GTI’s
initial Capital Contribution as of the Effective Date is: (i) Ten Million and 00/100 United States Dollars (USD$10,000,000.00);
including (ii) the conveyance of the Plant Site property to the Company.

 

3.2 Adjustments
to Interests and Contributions.

 

(a) The
Interests of the Members shall be adjusted:

 

(i)
 upon the resignation or deemed resignation of a Member under Section 9.1 or upon
the redemption of a Member’s Interest, to reflect the cancellation of the Member’s Interest;

 

(ii)
 upon an election by a Non-Contributing Member to contribute less to an adopted Program
and Budget than the percentage reflected by the Non-Contributing Member’s Interest, or an election by a Contributing Member
to make an Excess Contribution of an Underfunded Amount, in each case as provided in Section 6.6;

 

(iii) upon
the recalculation or restoration of Interests after the completion of a Program and Budget under Section 6.7;

 

(iv)
 upon the Transfer by a Member of all or less than all of its Interest under Article
X;

 

(v)
 upon the issuance of additional Interests in the Company under Section 2.6; and,

 

(vi) If
upon the date that is thirty (30) months following the Effective Date, the total amount drawn down from the Finance funding plus
any additional amounts deposited by GTI into the Company bank account is less than $8,031,399.64, then GTI forfeits part of its
seventy percent (70%) Interest as follows: (x) if the total amount drawn down from the Finance funding plus any additional amounts
deposited by GTI into the Company bank account is equal to or greater than $1,541,399.64 but less than $8,031,399.64, then GTI
forfeits part of its seventy percent (70%) Interest and reverts to a forty five percent (45%) Interest and Miranda reverts to
a fifty five percent (55%) Interest; or (y) if the total amount drawn down from the Finance funding plus any additional amounts
deposited by GTI into the Company bank account is less than $1,541,399.64, then GTI forfeits part of its seventy percent (70%)
Interest and reverts to a twenty percent (20%) Interest and Miranda reverts to an eighty percent (80%) Interest.

 

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3.3 Joint
Funding. The Members shall, subject to an election under Section 6.6, be obligated to make additional Capital Contributions
to adopted Programs and Budgets in accordance with Section 3.4 pro rata in proportion to their respective Interests (“Joint
Funding”). Subject to Section 3.2 (a) (vi), Joint Funding of additional Capital Contributions will commence
only after at least $8,031,399.64 has been either drawn from the Financing or contributed to the Company by GTI or deposited by
GTI into the Company bank account 

 

3.4 Cash
Calls During Joint Funding. On the basis of the adopted Program and Budget then in effect, the Manager shall submit to
each Member at least ten (10) days before the last day of each month a billing for estimated cash requirements for the next month.
Within ten (10) days after receipt of such a billing, each Member shall pay to the Company, as an additional Capital Contribution
under Section 3.3, its proportionate share of the estimated amount based on its Interest. Time is of the essence in the
payment of such billings. Subject to receipt of such Capital Contributions or other funds under this Agreement, the Manager: (a)
shall maintain a minimum cash reserve of the amount the Manager estimates will be required to pay Company costs and expenses that
are or will become payable within thirty (30) days after the date of determination; and (b) shall have the right to maintain an
additional cash reserve of up to the amount the Manager estimates will be required to pay Company costs and expenses that are
or will become payable within an additional three (3) months after the date of determination. All funds in excess of the immediate
cash requirements of the Company shall be invested in one or more interest-bearing accounts reasonably selected by the Manager.

 

3.5
 Return of Contributions. Except as expressly provided in this Agreement,
no Member shall be entitled to the return of any part of its Capital Contributions or to be paid interest on either its Capital
Account or its Capital Contributions. No Capital Contribution that has not been returned shall constitute a liability of the Company,
the Manager or any Member. A Member is not required to contribute or to lend cash or property to the Company to enable the Company
to return any Member’s Capital Contributions. The provisions of this Section 3.5 shall not limit a Member’s
rights or obligations under Section 7.2.

 

ARTICLE
IV

MEMBERS

 

The liability of each Member shall be limited as provided by the Act. No Member or the Manager, or any combination, shall be personally
liable under any judgment of a court, or in any other manner, for any debt, obligation or liability of the Company, whether such
debt, obligation or liability arises in contract, tort or otherwise, solely by reason of being a Member or the Manager or any
combination.

 

4.2 Company
Indemnification of Members. Except as provided in Section 4.5, the Company shall indemnify, defend and hold harmless
each Member and its Affiliates, and their respective directors, officers, employees, agents and attorneys from and against any
and all Adverse Consequences incurred or suffered by them that arise out of or relate to: (a) the Company or Operations, including
Environmental Liabilities and Continuing Obligations; (b) any Assets distributed to such Member as an objecting Member under Section
10.2, but only to the extent arising out of or relating to Operations, including Environmental Liabilities and Continuing
Obligations, conducted before the date of such distribution; and (c) any reimbursements by the Member under Section 4.4.
In all cases of this Section 4.2, and without limiting Sections 4.3 or 4.4, indemnification shall be provided
only out of and to the extent of the net assets of the Company, and no Member shall have any personal liability whatsoever for
indemnification under this Section 4.2. Notwithstanding the previous provisions of this Section 4.2, the Company’s
indemnification obligations under this Section 4.2 as to third-party claims shall be only with respect to Adverse Consequences
not otherwise compensated by insurance carried for the benefit of the Company or carried by the Company for the benefit of the
Members.

 

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4.3 Member
Indemnification.

 

(a) Indemnification
Obligations. Except as provided in Section 4.5, each Member (the “Indemnifying Member”) shall
indemnify, defend and hold harmless each other Member and its Affiliates, and their respective directors, officers, employees,
agents and attorneys (collectively, the “Indemnified Member Parties”) and the Company from and against
any and all Adverse Consequences that arise out of or result from the Misconduct of the Indemnifying Member (including in its
capacity as the Manager).

 

(b) Notice.
If any claim or demand is asserted against an Indemnified Member Party or the Company with respect to which the Indemnified Member
Party or the Company may be entitled to indemnification under this Agreement, then the Indemnified Member Party shall cause Notice
of the claim or demand (together with a reasonable description), to be given to the Indemnifying Member promptly after the Indemnified
Member Party has knowledge or Notice of the claim or demand. Failure by the Indemnified Member Party to promptly provide the Notice
shall not relieve the Indemnifying Member of its indemnification obligations, except to the extent the Indemnifying Member is
materially prejudiced by the failure.

 

(c) Assumption
of Defense By Indemnifying Member. The Indemnifying Member shall have the right, but not the obligation, by Notice to the
Indemnified Member Party with a copy to the Company delivered within thirty (30) days after the receipt of a Notice under Section
4.3(b), to assume the entire control of the defense, compromise and settlement of the claim or demand that is the subject
of the Notice, including the use of counsel chosen by the Indemnifying Member, all at the sole cost and expense of the Indemnifying
Member. Notwithstanding the foregoing, the Indemnified Member Party may participate in the defense at the sole cost and expense
of the Indemnified Member Party. The assumption of the defense of the claim or demand by the Indemnifying Member shall constitute
a waiver by the Indemnifying Member of its right to contest or dispute its indemnification obligation for the claim or demand.
Any Adverse Consequences to the assets or business of the Indemnified Member Party or the Company caused by the failure of the
Indemnifying Member to defend, compromise or settle a claim or demand in a diligent manner after having given Notice that it will
assume control of the defense, compromise and settlement of the matter shall be included in the Adverse Consequences for which
the Indemnifying Member shall be obligated to indemnify the Indemnified Member Parties and the Company. Any settlement or compromise
of any the claim or demand by the Indemnifying Member shall be made only with the consent of the Indemnified Member Party, which
may not be unreasonably withheld or delayed. An Indemnified Member Party shall not be considered unreasonable in withholding its
consent unless the settlement or compromise includes a full release of all claims and liabilities against the Indemnified Member
Parties and the Company arising out of or relating to the claim or demand, provides for the payment of only money damages, and
the Indemnifying Member has provided to the Indemnified Member Parties assurance acceptable to the Indemnified Member Parties
of the payment of such money damages immediately upon the settlement or compromise.

 

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(d) Defense
by Indemnified Member Party or Company. Before the assumption of the defense of any claim or demand subject to indemnification
by an Indemnifying Member, the Indemnified Member Party or the Company may file any motion, answer or other pleading, or take
such other action as it deems appropriate, to protect its interests or those of the Company or the Indemnifying Member. If it
is finally determined that the Indemnifying Member is responsible for indemnification of any such claim or demand, or if the Indemnifying
Member elects to assume the defense of the claim or demand under Section 4.3(c), then the Indemnifying Member shall promptly
reimburse the Indemnified Member Party or the Company for all costs and expenses incurred under the previous sentence. If the
Indemnifying Member does not elect to control the defense, compromise and settlement of a claim or demand under Section 4.3(c),
and it is finally determined that the Indemnifying Member is responsible for indemnification of the claim or demand, then the
Indemnifying Member shall be bound by the results of the defense, compromise or settlement, and all costs and expenses incurred
by the Indemnified Member Parties and the Company in conducting the defense, compromise or settlement shall be included in the
Adverse Consequences for which the Indemnifying Member is obligated to indemnify the Indemnified Member Parties and the Company.

 

4.4 Member
Reimbursement Obligations. Each Member shall be liable to each other Member (including in its capacity as the Manager)
to reimburse and pay to such other Members its respective share, based on Interests, of any and all Adverse Consequences incurred
or suffered by such other Members and their Affiliates that arise out of or relate to: (a) the Company or the Operations, including
Environmental Liabilities and Continuing Obligations; and (b) any Properties distributed to the other Member as an objecting Member
under Section 10.2, but only to the extent in the case of this clause (b) arising out of or relating to Operations,
including Environmental Liabilities and Continuing Obligations, conducted before the date of such distribution. For purposes of
this Section 4.4, each Member’s share of such liability shall be equal to its Interest at the time of the actions,
omissions or events giving rise to the Adverse Consequences (or as to any actions, omissions or events arising or existing before
the Effective Date, such Member’s initial Interest). Neither the resignation nor deemed resignation of a Member, any Transfer
or redemption of all or any portion of a Member’s Interest, any reduction of a Member’s Interest, the distribution
to the other Member of Properties under Section 10.2, nor the dissolution, liquidation nor termination of the Company,
shall relieve a Member of its share of any such liability accruing before such resignation, deemed resignation, Transfer, redemption,
reduction, distribution, dissolution, liquidation or termination. Notwithstanding the foregoing provisions of this Section
4.4, this Section 4.4 shall apply only in the case that the Member from whom the other Member is requesting reimbursement
or any of its Affiliates is finally determined to be personally liable for the Adverse Consequences, and shall not be construed
as a waiver or reduction of the limitations under the Act or other applicable Law of the liability of a Member or the Manager
for Company debts, obligations and liabilities.

 

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4.5 Coordination.
Notwithstanding anything to the contrary in this Article IV no Member, or any of its Affiliates,
or any of their respective directors, officers, employees, agents or attorneys shall be entitled to indemnification or reimbursement
under Sections 4.2, 4.3 and 4.4 for Adverse Consequences, to the extent the Adverse Consequences arise out of or
result from the Misconduct of the Indemnifying Member (including in its capacity as the Manager).

 

4.6 Exclusive
Rights of Members. Notwithstanding anything in this Agreement to the contrary, no Person other than a Member (on its own
behalf and on behalf of the Company and its Indemnified Member Parties) shall have the right to enforce any representation, warranty,
covenant or agreement of a Member or the Manager under this Agreement, and specifically neither the Company nor any lender or
other third party shall have any such rights, it being expressly understood that the representations, warranties, covenants and
agreements contained in this Agreement shall be enforceable only by a Member (on its own behalf and on behalf of the Company and
its Indemnified Member Parties) against another Member or the Manager. For the avoidance of doubt, the Company shall be bound
by the provisions of this Agreement, but shall have no right to enforce those provisions against a Member or the Manager, such
rights being exclusively vested in the Members. Any Member may bring a direct action on behalf of the Company against any other
Member or the Manager without the requirement to bring a derivative action.

 

4.7 Meetings;
Written Consent. Meetings of the Members shall not be required for any purpose. Any action required or permitted to be
taken by Members may be taken without a meeting if the action is evidenced by a written consent describing the action taken, signed
by all of the Members.

 

4.8 No
Member Fees. Except as otherwise provided in this Agreement, no Member shall be entitled to compensation for attendance
at Member meetings or for time spent in its capacity as a Member, except in its capacity acting as the Manager as set forth in
Section 5.8.

 

4.9 No
State-Law Partnership. The Members intend that the Company not be a partnership (including a limited partnership) or joint
venture, and that no Member, Manager or Representative be a partner or joint venturer of any other Member, Manager or Representative
for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest otherwise.

 

4.10 No
Implied Covenants; No Fiduciary Duties. There are no implied covenants contained in this Agreement other than the contractual
duty of good faith and fair dealing. The Members, the Manager and the Representatives shall not have any fiduciary or other duties
to the Company or the other Members except as specifically provided by this Agreement, and the Members’, the Representatives’,
and the Manager’s duties and liabilities otherwise existing at law or in equity are restricted and eliminated by the provisions
of this Agreement to those duties and liabilities specifically set forth in this Agreement.

 

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4.11 Other
Business Opportunities. Except as provided in Sections 9.2 and 10.1: (a) each Member (including in its capacity
as a Manager) and its Representatives shall have the right independently to engage in and receive the full benefits from business
activities, whether or not competitive with the Operations, without consulting the Company or any other Member; (b) the doctrines
of “corporate opportunity” and “business opportunity” shall not be applied to any other activity, venture,
or operation of any Member or Representative or the Manager; and (c) no Member or Representative or the Manager shall have any
obligation to any other Member or the Company with respect to any opportunity to acquire any property outside the Area of Interest
at any time, or within the Area of Interest after the dissolution or winding up of the Company.

 

ARTICLE
V

COMPANY MANAGEMENT

 

5.1 Management
Authority. Except as delegated to the Manager under Section 5.3, the Management Committee shall have the exclusive
power and authority to approve any Major Decision. The Manager shall have the power and authority to make any other decision or
take any other action on behalf of the Company that does not require the approval of the Management Committee under this Agreement.
In connection with the implementation, consummation or administration of any matter within the scope of the Manager’s authority,
the Manager is authorized, without the approval of the Members or the Management Committee, to execute and deliver on behalf of
the Company contracts, instruments, conveyances, checks, drafts and other documents of any kind or character to the extent the
Manager deems it necessary or desirable. The Manager may delegate to officers, employees, agents, contractors or representatives
of the Company or the Manager any or all of its powers by written authorization identifying specifically or generally the powers
delegated or acts authorized, but no such delegation shall relieve the Manager of its obligations hereunder.

 

5.2 Management
Committee.

 

(a) Organization
and Composition. The Members hereby establish a committee (the “Management Committee”) consisting
of two (2) representatives (“Representatives”), of which: (i) one (1) Representative shall be appointed
by Miranda; and (ii) one (1) Representative shall be appointed by GTI. A Representative of the Member that holds greater than
fifty percent (50%) of the Interests of the Members shall serve as the chair of the Management Committee. Each Member may appoint
one or more alternate Representatives to act in the absence of a regular Representative. Appointments of Representatives may be
made or changed at any time by Notice to the other Member. Representatives shall not be considered managers under the Act, but
derive all of their right, power and authority from the Members. No Member or Representative shall have the power to bind the
Company or to execute documents and instruments on behalf of the Company, unless such Member or Representative also is a Manager
or officer or such power and authority has been delegated by the Manager to such Member or Representative, and then only in that
capacity.

 

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(b) Voting.
Each Member, acting through its Representative, shall vote on the Management Committee in accordance with its Interest. Whenever
any provision of this Agreement requires or permits the vote, consent or approval of the Members or the Management Committee,
such provision shall be deemed to require or permit, as applicable, the vote, consent or approval of Representatives with an Interest
of greater than fifty percent (50%), unless the provision specifically requires a greater percentage, or the consent or approval
of a greater number or percentage of Members or Representatives.

 

(c) Meetings.
Management Committee meetings shall be held at least annually, at such times and at such place as the Management Committee shall
determine. In addition to regularly scheduled meetings, the Manager or any Representative may call a special meeting of the Management
Committee upon fifteen (15) days’ Notice. In case of emergency, reasonable Notice of a special meeting shall suffice. There
shall be a quorum if at least one Representative appointed by each Member is present. Each Notice of a meeting shall include an
agenda or statement of the purpose of the meeting prepared by the Manager in the case of a regular meeting, or by the Manager
or Representative calling the meeting in the case of a special meeting, but any matters may be considered at the meeting.

 

(d) Conduct
of Meetings. Meetings of the Management Committee may be held by means of conference telephone or other communications equipment
by means of which all Persons participating in the meeting can hear each other, and participation in a meeting by such communications
equipment shall constitute presence in person at the meeting. The Manager shall prepare minutes of all meetings and shall distribute
copies of such minutes to the Representatives within seven Business Days after the meeting. The minutes, when approved by one
or more Representatives appointed by each Member, shall be the official record of the decisions made by the Management Committee
and shall be binding on the Management Committee, the Manager and the Members. If the Representatives are unable to agree on the
minutes within thirty (30) days after receipt of the Manager’s proposed minutes, then the minutes prepared by the Manager
together with proposed objections submitted to the Manager before the expiration of such thirty (30) day period shall be the official
record of the meeting. The reasonable costs of the attendance of Representatives, officers and personnel at meetings shall be
charged to the Business Account.

 

(e) Action
Without a Meeting. Any action required or permitted to be taken at a meeting of the Management Committee may be taken without
a meeting and without prior Notice if the action is evidenced by a written consent describing the action taken, signed by the
Representative of each Member.

 

(f) Major
Decisions. Neither the Manager nor any Representative, nor any officer, employee or agent of the Company, shall have any authority
to bind or take any action on behalf of the Company with respect to any Major Decision unless such Major Decision has been unanimously
consented to or approved by the Management Committee in accordance with this Section 5.2. Each of following matters shall
constitute a “Major Decision”:

 

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(i) disposition
of significant mineral rights or claims, (including disposition of significant patented and unpatented mining claims under Section
5.3(k)) outside of the ordinary course of business;

 

(ii) except
as specifically contemplated in this Agreement, the redemption of all or any portion of an Interest;

 

(iii) the
issuance of an Interest or other equity interest in the Company, or the admission of any Person as a new Member of the Company
other than in accordance with Section 8.5(c); provided, that this clause (iii) shall not be deemed to prohibit or
restrict the adjustment of Interests under Section 3.2;

 

(iv) a
decision to grant authorization for the Company to file a petition for relief under any chapter of the United States Bankruptcy
Code, Title 11 U.S.C. or to consent to such relief in any involuntary petition filed against the Company by any third party, or
to admit in writing any insolvency of the Company or inability to pay its debts as they become due or to consent to any receivership
(or similar proceeding) of the Company;

 

	 	(v)	the
merger or amalgamation of the Company into or with any other entity;
	 	 	 
		(v)	the
                                         sale of all or substantially all of the Company’s Assets;
	 	 	 
		(vii)	amendments
                                         to this operating Agreement of the Company;
	 	 	 
		(viii)	the
                                         commencement or taking of any action to commence a voluntary dissolution, winding up
                                         or other steps to terminate the existence of the Company;
	 	 	 
		(x)	a
                                         continuance of the Company to another jurisdiction;
	 	 	 
		(xi)	a
                                         change to the Company’s auditors or waiver of the appointment of an auditor;
	 	 	 
		(xii)	any
                                         change to the financial year end of the Company;
	 	 	 
		(xiii)	any
                                         reorganization of the Company;
	 	 	 
		(xiv)	the
                                         formation or establishment of a subsidiary, the purchase of or investment in any body
                                         corporate or other entity, the acquisition of the whole or a part of the business of
                                         any Person for a value in excess of US$3,000,000, or the commencement of any additional
                                         business operations unrelated to those contemplated by the Agreement;

 

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		(xv)	the
                                         cessation of work at the Claims, for a period to time in excess of six (6) months, unless
                                         such cessation is required for operational reasons or to comply with any regulatory requirement
                                         or order of a governmental authority or court having jurisdiction;
	 	 	 
		(xvi)	the
                                         adoption of and changes to financial control procedures or material accounting policies
                                         (unless required to comply with regulatory requirements);
	 	 	 
		(xvii)	any
                                         material management, service or other agreement with any Person that is related to the
                                         Manager (including an affiliate), and any material amendments thereto;
	 	 	 
		(xviii)	except
                                         as specifically provided for in Financing and pursuant to leasing arrangements undertaken
                                         in the normal course, agree to the creation of an Encumbrance on any of the Company’s
                                         assets, except for the Encumbrances listed as items (b) through (g) in the definition
                                         of Permitted Encumbrances;
	 	 	 
		(xix)	any
                                         single expenditure not already approved under Programs and Budgets of more than US$750,000;
                                         or
	 	 	 
		(xx)	the
                                         initiation, conduct, abandonment or settlement of any arbitration or legal proceedings
                                         or regulatory proceedings (collectively “proceedings”) brought by or against
                                         the Company involving an aggregate value of more than US$1.0 million, except for the
                                         initiation, conduct, abandonment or settlement of any arbitration or legal proceedings
                                         relating the enforcement of any rights of the Company against any Member.

 

5.3 Manager;
Duties. The Company shall be managed by one manager (the “Manager”). The initial Manager shall
be GTI. Any increase or decrease in the number of Managers shall be unanimously approved by the Management Committee. Subject
to Sections 5.4 and 5.5 and the other provisions of this Agreement, the Manager shall have the following duties:

 

(a) Programs
and Budgets. The Manager shall manage, direct and control Operations in accordance with adopted Programs and Budgets, and
shall prepare and present to the Management Committee proposed Programs and Budgets under Section 6.3 and proposed Amendments
under Section 6.5.

 

(b) Implementation.
The Manager shall implement Major Decisions, shall make from Company funds all Expenditures necessary to carry out adopted Programs,
and shall promptly advise the Management Committee if the Company lacks sufficient funds for the Manager to carry out its responsibilities
under this Agreement.

 

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

 

(d) Title;
Encumbrances. The Manager shall conduct such title examinations and cure such title defects as may be advisable in the Manager’s
reasonable judgment, and keep the Assets free and clear of Encumbrances, except for Permitted Encumbrances.

 

(e) Taxes.
The Manager shall: (i) make or arrange for all payments required by the Underlying Agreement; and (ii) pay all taxes on Operations
and Assets, except: (A) taxes determined or measured by a Member’s revenue or net income; and (B) taxes on production
of Products that are distributed in-kind to a Member; provided, that if authorized by the Management Committee, the Manager
shall have the right to contest the validity or amount of any taxes the Manager deems to be unlawful, unjust, unequal or excessive,
and to undertake such other steps or proceedings as the Manager may deem reasonably necessary to secure a cancellation, reduction,
readjustment or equalization of such taxes before such taxes are required to be paid, but the Manager shall not permit or allow
title to the Assets to be lost as the result of the nonpayment of any such taxes.

 

(f) Compliance
with Laws. The Manager shall: (i) apply for all necessary Permits; (ii) comply with applicable Laws; (iii) promptly provide
Notice to the Management Committee of any allegations of a material violation of Laws; and (iv) prepare and file all reports or
notices required by any Governmental Authority for Operations. The Manager shall timely cure or dispose of any violation of Laws
through performance, or payment of fines and penalties, or both, the cost of which shall be charged to the Business Account.

 

(g) Litigation.
The Manager shall prosecute and defend, but shall not initiate without the approval of the Management Committee, all litigation,
arbitrations or administrative proceedings arising out of Operations. The Manager shall keep the Management Committee reasonably
informed of the progress of any such litigation, arbitrations or proceedings. The Management Committee shall approve in advance
any settlement involving payments, commitments or obligations in excess of Fifty Thousand and 00/100 United States Dollars (USD$50,000.00)
in cash or value.

 

(h) Insurance.
The Manager shall obtain insurance for the benefit of the Company, the Members and the Manager as provided in Exhibit E
or as may otherwise be determined from time to time by the Management Committee.

 

(i) Disposition
of Assets. The Manager may dispose of Assets, whether by abandonment, surrender or Transfer in the ordinary course of business,
except that Properties may be abandoned or surrendered only as provided in Section 10.2. Without prior approval from the
Management Committee, however, the Manager shall not: (i) dispose of Assets in any one transaction (or in any series of related
transactions) having a value in excess of Fifty Thousand and 00/100 United States Dollars (USD$50,000.00); (ii) enter into any
sales contracts or commitments for Product, except as permitted in Section 7.3; (iii) dissolve or begin a liquidation of
the Company; or (iv) dispose of all or a substantial part of the Assets necessary for the Business.

 

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(j) Maintenance
of Assets. The Manager shall perform all assessment and other work and pay all Governmental Fees required by Law in order
to maintain the State Claims, mill sites and tunnel sites included within the Claims. The Manager may perform the assessment work
under a common plan of exploration, and continued actual occupancy of such claims and sites is not required. The Manager shall
not be liable for any determination by any Governmental Authority that the work performed by the Manager did not constitute the
required annual assessment work or occupancy to preserve or maintain ownership of the claims; provided that the work was
performed in accordance with accepted industry standards and the adopted Program and Budget. The Manager shall timely record with
the appropriate recorder’s office and file with the appropriate United States agency, any required affidavits, notices of
intent to hold and other documents in proper form attesting to the payment of Governmental Fees, the performance of assessment
work or intent to hold the claims and sites, in each case in sufficient detail to reflect compliance with applicable requirements.

 

(k) Changes
to Mineral Rights. If authorized by the Management Committee, the Manager may: (i) locate, amend or relocate any State Claims,
mill site or tunnel site; (ii) locate any fractions resulting from such amendment or relocation; (iii) apply for mining leases
or other forms of mineral tenure for any such State Claims or sites; (iv) abandon any State Claims for the purpose of locating
mill sites or otherwise acquiring rights to the ground covered thereby; (v) abandon any State mill sites for the purpose of locating
mining claims or otherwise acquiring from the State of Alaska rights to the ground covered thereby; (vi) exchange with or convey
to the United States any of the Patented Claims for the purpose of acquiring rights to the ground covered thereby or other adjacent
ground; and (vii) convert any unpatented claims or mill sites into one or more leases or other forms of mineral tenure under any
Law hereafter enacted.

 

(l) Accounting.
The Manager shall: (i) keep and maintain all required accounting and financial records under the Accounting Procedure and in accordance
with customary cost accounting practices in the mining industry; (ii) keep and maintain current balances of Contributed Capital;
(iii) keep and maintain Capital Accounts of the Members in accordance with Exhibit B; and (iv) keep all Company
accounts separate and segregated from the individual accounts of the Manager.

 

(m) Reporting;
Audits. The Manager shall: (i) provide the reports to the Members required under Section 6.11; (ii) permit the audits,
inspections and access rights under Section 6.12; and (iii) obtain the independent audit required under Section 6.13.

 

(n) Environmental
Compliance Plan. The Manager shall prepare an Environmental Compliance plan for all Operations consistent with the requirements
of applicable Laws or contractual obligations and shall include in each proposed Program and Budget sufficient funding to implement
the Environmental Compliance plan and to satisfy the financial assurance requirements of applicable Laws and contractual obligation
pertaining to Environmental Compliance. To the extent practical, the Environmental Compliance plan shall incorporate concurrent
reclamation of the Properties disturbed by Operations.

 

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(o) Continuing
Obligations. The Manager shall undertake to perform Continuing Obligations when and as economic and appropriate, whether before
or after termination of Operations. The Manager shall have the right to delegate performance of Continuing Obligations to Persons
having demonstrated skill and experience in relevant disciplines. As part of each proposed Program and Budget, the Manager shall
specify the measures to be taken for performance of Continuing Obligations and the cost of such measures. The Manager shall keep
the Management Committee reasonably informed about the Manager’s efforts to discharge Continuing Obligations. Authorized
representatives of each Member shall have the right from time to time to enter the Properties to inspect work directed toward
satisfaction of Continuing Obligations, and to audit books, records, and accounts related thereto.

 

(p) Environmental
Compliance Fund. Funds deposited into the Environmental Compliance Fund shall be maintained by the Manager in a separate,
interest bearing cash management account, which may include money market investments and money market funds, or longer term investments
approved by the Management Committee. Such funds shall be used solely for Environmental Compliance and Continuing Obligations,
including committing such funds, interests in property, insurance or bond policies, or other security to satisfy Laws regarding
financial assurance for the reclamation or restoration of the Properties, and for other Environmental Compliance requirements.

 

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

 

(r) Delegation.
The Manager shall have the right to carry out its duties and responsibilities under this Agreement through Affiliates, agents,
consultants or independent contractors, but no such Persons shall have any rights under this Agreement.

 

5.4 Standards
of Care. Subject to Section 5.5, the Manager shall discharge its duties under Section 5.3 and conduct all
Operations in a good, workmanlike and efficient manner, in accordance with sound mining and other applicable industry standards
and practices and in accordance with the terms and provisions of all Permits pertaining to the Assets.

 

5.5 Exculpation.
Notwithstanding any contrary provision of this Agreement, the Manager shall not be liable or responsible to the Company or any
Member and shall not be in breach or default of its duties under this Agreement for any act or omission: (a) that is not caused
by or attributable to the Manager’s willful misconduct or gross negligence; (b) if the inability to perform results from:
(i) the failure of any Member or Representatives (other than the Manager, any Affiliate of the Manager, or any Representative
designated by the Manager or any such Affiliate), to perform acts or to contribute amounts required under this Agreement; (ii)
a lack of Company funds, to the extent the Manager and its Affiliates have made all Capital Contributions required to be made
by them under this Agreement; or (iii) the failure to carry out or perform in accordance with a Program and Budget for any period,
if a Program and Budget has not been adopted for the period; or (c) taken in good faith reliance on an adopted Program and Budget
or information, opinions, reports or statements presented by any other Member or Representative of any other Member, or by any
other Person as to matters the Manager reasonably believes are within the other Person’s professional or expert competence.

 

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5.6 Indemnification
of Manager and Representatives. Subject to the limitations of the Act, the Company shall indemnify, defend and hold harmless
the Representatives and the Manager from and against any Adverse Consequences arising as a result of any act or omission of any
such Representative or the Manager with respect to the Company believed in good faith to be within the scope of authority conferred
in accordance with this Agreement, except for willful misconduct or gross negligence.

 

(a) Contract
Rights. The rights granted under this Section 5.6 are contract rights, and no amendment, modification or repeal of
this Section 5.6 shall have the effect of limiting or denying any such rights with respect to actions taken, omissions,
or proceedings arising before any such amendment, modification or repeal. It is expressly acknowledged that the indemnification
provided in this Section 5.6 could involve indemnification for negligence or strict liability. Notwithstanding the foregoing,
the Company’s indemnification of the Manager and the Representatives as to third-party claims shall be only with respect
to such Adverse Consequences that are not otherwise compensated by insurance.

 

(b) Advancement
of Expenses. The rights to indemnification conferred in this Section 5.6 shall include the right to be paid or reimbursed
by the Company the reasonable expenses incurred by any Person entitled to be indemnified who was, is or is threatened to be made
a named defendant or respondent in an action, suit, proceeding or arbitration in advance of the final disposition of the action,
suit, proceeding or arbitration and without any determination as to the Person’s ultimate entitlement to indemnification;
provided, that the payment of such expenses in advance of the final disposition or award of an action, suit, proceeding
or arbitration shall be made only upon delivery to the Company of a written affirmation by such Person of his or its good faith
belief that he or it has met the standard of conduct necessary for indemnification under this Section 5.6 and a written
undertaking, by or on behalf of such Person, to repay all amounts so advanced if it shall ultimately be determined that such indemnified
Person is not entitled to be indemnified under this Section 5.6 or otherwise.

 

(c) Non-Exclusive
Rights. The right to indemnification and the advancement and payment of expenses conferred in this Section 5.6 are
not exclusive of any other right that any such indemnified Person may have or acquire under any Law, provision of this Agreement,
vote of the Management Committee or the Members or otherwise.

 

(d) Invalidity.
If this Section 5.6 or any portion shall be invalidated on any ground by any court of competent jurisdiction or arbitration
panel, then the Company shall indemnify and hold harmless the Manager or Representatives indemnified under this Section 5.6
as to the Adverse Consequences to the full extent permitted by any portion of this Section 5.6 that has not been invalidated,
and to the fullest extent permitted by applicable Law.

 

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(e) Insufficient
Funds. If the assets of the Company are insufficient to fund any indemnity to which the Manager or any Representative is entitled
under this Section 5.6, the Members shall make Capital Contributions to the Company (or if the Company has been terminated,
pay to the indemnified Person) in accordance with their respective Interests to fund any such indemnification obligations. In
the case of Continuing Obligations, proportionate liability of the Members (including the Manager) for any indemnification hereunder
arising from such Continuing Obligations shall be determined in accordance with Section 4.4.

 

5.7 Resignation;
Removal; Replacement. 

 

(a) Voluntary
Resignation. The Manager may voluntarily resign at any time upon three (3) months’ prior Notice to the Management Committee.
Acceptance of such resignation shall not be necessary.

 

(b) Deemed
Resignation. The Manager shall automatically be deemed to resign without the requirement of Notice or other notice of any
kind effective immediately upon the occurrence of an Insolvency Event with respect to the Manager.

 

(c) Removal.
The Manager may be removed by Notice of the other Member to the Manager: (i) if the Interest of the Manager and its Affiliates
becomes less than 50%; or (ii) for Misconduct of the Manager or any Member that is an Affiliate of the Manager; provided,
such Notice shall be delivered to the Manager within ninety (90) days after the date such other Member has notice or knowledge
of the event giving rise to the removal right.

 

(d) Replacement.
If the Manager resigns voluntarily under Section 5.7(a), the other Member may elect to become the successor Manager by
Notice to the Management Committee within thirty (30) days after the date of the voluntary resignation. If the other Member does
not make such an election within such thirty (30) day period, the successor Manager (who may be a Member, an Affiliate of a Member
or a third party) shall be elected by the Management Committee. If the Manager is deemed to resign under Section 5.7(b)
or is removed under Section 5.7(c), the Representatives of the other Member may appoint the successor Manager (who may
be a Member, an Affiliate of a Member or a third party) by Notice to the Management Committee. Any successor Manager shall execute
a joinder to this Agreement agreeing to be bound by the provisions of this Agreement that relate to the Manager. The appointment
of a successor Manager shall be deemed to pre-date any event causing a deemed resignation of the Manager under Section 5.7(b).

 

(e) No
Effect on Interest. The resignation or removal of a Person as the Manager shall not require or result in the resignation or
removal of such Person as a Member, reduce the Interest of such Member or its Representatives, or restrict the right of such Member
to appoint Representatives to the Management Committee.

 

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5.8 Payments
To Manager. The Manager shall be compensated for its services and reimbursed for its costs in accordance with the Accounting
Procedure set forth in Exhibit B.

 

5.9 Affiliate
Transactions. The Company shall not enter into any agreement or contract (including the payment of any fees or other compensation)
with the Manager, any Affiliate of the Manager or any Member, or any material modification or amendment to any such agreement
or contract, except: (a) on terms no less favorable than would be the case with unrelated third parties in arms’ length
transactions; (b) with the approval of the Representatives of each Member that is not a party (and whose Affiliates are not a
party) to the agreement, contract, modification or amendment; or (c) as specifically provided in this Agreement or in the then
current approved Program and Budget; provided that the Members acknowledge that the services to be performed by the Manager
may be delegated to any Affiliate of the Manager and performed by such Affiliate, and costs and charges for such services shall
be paid and reimbursed by the Company from the Business Account to the same extent as if such services were performed directly
by the Manager.

 

5.11 Financing.
The Members acknowledge and approve the Financing with CRH including the granting of a security
interest in the assets of the Company granted to CRH thereunder, consisting of a grant of a Real Estate Deed of Trust, Security
Agreement, Assignment of Lease and Rights, and Financing Statement (the “Deed”) a copy of which is attached as Exhibit
G.

 

ARTICLE
VI

PROGRAMS AND BUDGETS; ACCOUNTING AND REPORTING

 

6.1 Initial
Program and Budget. The initial Program and Budget adopted by the Members
is attached as Exhibit F.

 

6.2 Operations
Under Programs and Budgets. All Operations shall be conducted, expenses shall be incurred, and Assets shall be acquired
consistent with adopted Programs and Budgets. Each Program and Budget shall provide for: (a) accrual of reasonably anticipated
Environmental Compliance expenses for all Operations contemplated under the Program and Budget; and (b) payment of all obligations
of the Company under the Underlying Agreement.

 

6.3 Presentation
of Proposed Programs and Budgets. Not later than October 1 of each calendar year, beginning in August the Manager shall
prepare a proposed Program and Budget for the succeeding calendar year or longer such period approved by the Management Committee,
and submit the proposed Program and Budget for such calendar year or other period to the Management Committee for its review and
approval. The proposed Program and Budget shall be accompanied by a Notice of the date and time of the meeting to be held under
Section 6.4 to consider the proposed Program and Budget, which date shall not be less than twenty (20) days after the submission
of the proposed Program and Budget to the Management Committee.

 

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6.4 Approval
of Proposed Programs and Budgets. On or before November 1 of each calendar year, beginning in September, at a meeting
of the Management Committee, the Representatives of each Member shall submit a statement in writing to the Management Committee
as to whether such Representative: (a) approves the proposed Program and Budget; (b) proposes modifications to the proposed Program
and Budget; or (c) rejects the proposed Program and Budget. If the Representatives of a Member do not approve the proposed Program
and Budget, then the Management Committee shall call another meeting to be held within twenty (20) days after the first meeting
to consider the Program and Budget and to vote on a revised Program and Budget. During such twenty (20) day period, the Manager
shall negotiate in good faith with the Representatives to develop a revised Program and Budget that is acceptable to all of the
Representatives, and shall deliver its revised Program and Budget to the Representatives at or before the subsequent meeting.
At the subsequent meeting to again vote on the Program and Budget (taking into account any revisions proposed by the Representatives
during the negotiation period), the Representatives of each Member shall vote to either accept or reject the revised Program and
Budget, but may not propose additional modifications. If one or more Representatives do not attend any meeting of the Management
Committee, the purpose of which is to review and approve a Program and Budget or an Amendment, then the Representatives present
at the meeting may approve the proposed Program and Budget, but no other action may be taken at the meeting.

 

6.5 Amendments.
The Manager may propose amendments (“Amendments”) to any currently approved Program and Budget from
time to time before incurring costs under the Amendment. The Representatives of each Member shall have fifteen (15) days after
the proposal of an Amendment by the Manager to submit in writing to the Management Committee one of the responses described in
Sections 6.4(a), (b) or (c) (substituting “Amendment” for “Program and Budget” in
each case). If the Representatives of a Member fail to respond within the fifteen (15) day period, then those Representatives
shall be deemed to have approved the proposed Amendment. If the Representatives of a Member timely submit to the Management Committee
their rejection of, or proposed modifications to, the proposed Amendment, then the Manager may call a special meeting of the Management
Committee under Section 5.2(c) to vote on an Amendment. If the Manager calls such a meeting, the Manager shall negotiate
in good faith with the Representatives to develop an Amendment that is acceptable to all of the Representatives, and shall deliver
its revised Amendment to the Representatives at or before the meeting. At the meeting to vote on the Amendment (taking into account
any revisions made by the Manager during the negotiation period), the Representatives of each Member shall vote to either accept
or reject the revised Amendment, but may not propose additional modifications. If the Amendment relates to Operations on existing
Properties and does not increase the aggregate original Budget by more than ten percent (10%) (taking into account other Amendments
adopted after the date of the original Budget), then the Members shall continue to participate in the Joint Funding of the Program
and Budget, as amended, based on their original elections under Section 6.6. If the Amendment does not relate to Operations
on existing Properties or increases the aggregate original Budget by more than ten percent (10%) (taking into account other Amendments
adopted after the date of the original Budget), then the Program and Budget, as amended, shall be treated as a new Program and
Budget and each Member shall be entitled to make new elections under Section 6.6 as to their participation in Joint Funding
with respect to the remaining period under the amended Program and Budget.

 

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6.6 Election
to Participate.

 

(a) By
Notice to the Management Committee (a “Non-Contribution Notice”) within twenty (20) days after the final
vote adopting a Program and Budget, a Member (a “Non-Contributing Member”) may elect to contribute to
such Program and Budget in some lesser amount than in accordance with its Interest, or may elect not to contribute any amount
to such Program and Budget. If a Member does not timely provide a Non-Contribution Notice to the Management Committee, such Member
shall be deemed to have elected to contribute to the Program and Budget in proportion to its Interest as of the beginning of the
period covered by the Program and Budget. The difference, if any, between the amount that the Non-Contributing Member would otherwise
be required to contribute in accordance with its Interest and the amount, if any, that the Non-Contributing Member elects or is
deemed to elect to contribute, is referred to as the “Underfunded Amount.”

 

(b) If
a Non-Contributing Member timely delivers a Non-Contribution Notice, and the other Member has or is deemed to have elected to
contribute its proportion amount to the Program and Budget in accordance with its Interest, such other Member (the “Contributing
Member”) shall have the right (but not the obligation) to elect by Notice to the Non-Contributing Member delivered
within ten (10) days after its receipt of the Non-Contribution Notice, to contribute all or any portion (an “Excess
Contribution”) of the Underfunded Amount to such Program and Budget.

 

(c) If
a Non-Contributing Member timely delivers a Non-Contribution Notice, the Interest of each Member shall, subject to Section
6.7, be adjusted, effective as of the beginning of the period covered by the Program and Budget, to equal a fraction, expressed
as a percentage:

 

(i) the
numerator of which equals:

 

(A) the
Contributed Capital of the Member as of the beginning of the period covered by the Program and Budget; plus

 

(B) the
amount, if any, that the Member has agreed to contribute to the Program and Budget before considering any Excess Contribution;
plus

 

(C) if
the Member is a Contributing Member, the Excess Contribution, if any, that the Contributing Member has agreed to contribute to
the Program and Budget with respect to the Underfunded Amount; and

 

(ii) the
denominator of which equals the sum of the amounts calculated under Section 6.6(c)(i) above for all Members.

 

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(d) If
a Non-Contributing Member delivers a Non-Contribution Notice and the Contributing Member does not elect to contribute the entire
Underfunded Amount: (i) if the Manager or its Affiliate is the Contributing Member, the Manager shall adjust the Program and Budget
to the extent the Manager reasonably deems necessary to take into account the reduced contributions; and (ii) if the Member that
is not the Manager or an Affiliate of the Manager is the Contributing Member, the Representatives of that Member shall adjust
the Program and Budget to the extent such Representatives reasonably deem necessary to take into account the reduced contributions.
The Program and Budget as adjusted under this Section 6.6(d) shall replace the Program and Budget previously adopted by
the Management Committee for the Program and Budget period.

 

6.7 Recalculation
and Restoration for Actual Contributions.

 

(a) If
a Non-Contributing Member timely delivers a Non-Contribution Notice for a Program and Budget and the Interests of the Members
are adjusted under Section 6.6(c), then within fifteen (15) days after the completion of the Program and Budget, the Manager
shall deliver a written report to the Members of the total amount of Capital Contributions actually made by the Members under
cash calls for the Program and Budget.

 

(b) If
the actual amount of Capital Contributions is more or less than the budgeted amount in the adopted Budget, the Interests shall
be recalculated under Section 6.6(c) by substituting the actual amount of Capital Contributions made by each Member (including
any deemed Capital Contributions made by the Non-Contributing Member under Section 6.7(c)) during the Program and Budget
period for the estimated amounts used in calculating the adjustments to the Interests at the beginning of the Program and Budget
period.

 

(c) If
the actual amount of Capital Contributions is less than eighty percent (80%) of the budgeted amount in the adopted Budget, the
Non-Contributing Member may elect to reimburse the Contributing Member for all (but not less than all) of the Excess Contribution
actually contributed by the Contributing Member by delivering a Notice of its election to the Contributing Member within ten (10)
days after receipt of the Manager’s report. The Notice shall be accompanied by payment in the amount of the actual Capital
Contributions of the Excess Contribution, together with interest at the Prime Rate from the date of each such Capital Contribution
to the date paid. If the Non-Contributing Member makes this election, for all purposes under this Agreement (including the readjustment
to the Interests under Section 6.7(b)), each Capital Contribution previously made by the Contributing Member for the Excess
Contribution shall instead be deemed to have been a loan from the Contributing Member to the Non-Contributing Member on the date
of the contribution, followed by an immediate Capital Contribution of the same amount by the Non-Contributing Member to the Company.

 

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(d) If
the Interests are recalculated under Section 6.7(b), and either distributions were made, or any items of Profit, Loss or
credit were allocated to the Members during the period covered by the Program and Budget based on the Interests as adjusted under
Section 6.6(c) at the beginning of the Program and Budget period: (i) in the case of distributions, the amount of subsequent
distributions to be made to the Contributing Member shall be decreased, and the amount of subsequent distributions to the Non-Contributing
Member shall be increased, until the Non-Contributing Member has received distributions from the Company, to the extent possible,
in the amounts that the Non-Contributing Member would have received; and (ii) in the case of allocations, the Manager shall cause
the Company to make such offsetting allocations of items of Profit, Loss or credit in a manner reasonably determined by the Manager,
so that the Members have been allocated, to the extent possible, the amounts that the Members would have been allocated, in each
case if the Members’ Interests at the beginning of the period covered by the Program and Budget had equaled the Interests
recalculated under Section 6.7(b), taking into account any reimbursement of the Excess Contribution under Section 6.7(c).

 

6.8 Deadlock
on Proposed Programs and Budgets. If the Management Committee fails to approve a Program and Budget by the beginning of
the period to which the proposed Program and Budget applies, subject to the contrary direction of the Management Committee and
to the receipt of necessary funds, the Manager shall continue Operations: (a) if an initial Mining Program and Budget has not
been adopted, at levels sufficient to maintain the then current Operations and Claims; and (b) if an initial Mining Program and
Budget has been adopted, at levels substantially comparable with the last adopted Program and Budget. The Members shall continue
to make Capital Contributions in accordance with the Interests applicable to the last adopted Program and Budget in response to
capital calls from the Manager to fund such Operations during a deadlock.

 

6.9 Budget
Overruns; Program Changes. The Manager shall immediately provide Notice to the Management Committee of any material departure
from an adopted Program and Budget. If the Manager exceeds an adopted Budget (as amended under Section 6.5) by more than
ten percent (10%), then the excess over ten percent (10%), unless directly caused by an emergency or unexpected Expenditure made
under Section 6.10 or unless otherwise authorized by the unanimous approval of the Management Committee, shall be at the
sole cost and expense of the Manager and shall not considered a Capital Contribution or taken into account in the calculation
of Interests. Budget overruns of ten percent (10%) or less shall be considered costs and expenses of the Company, and shall be
funded by the Members making additional Capital Contributions to the Company in proportion to their respective Interests.

 

6.10 Emergency
or Unexpected Expenditures. In case of an emergency, the Manager may take any reasonable action it deems necessary to
protect life, limb or property, to protect the Assets or to comply with Laws. The Manager may also make reasonable Expenditures
for unexpected events that are beyond its reasonable control and that do not result from a breach by it of its standard of care
in Section 5.4, subject to Section 5.5. The Manager shall promptly provide Notice to the Members of the emergency
or unexpected Expenditure, and shall be reimbursed for all resulting costs by the Company, which costs shall be funded by the
Members making additional Capital Contributions to the Company under Sections 3.4 and 3.5 in proportion to their
respective Interests at the time the emergency or unexpected Expenditures are incurred.

 

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6.11 Monthly
Reports. The Manager shall promptly submit to the Management Committee the following reports:

 

(a) monthly
statements of account reflecting in reasonable detail the charges and credits to the Business Account during the preceding month;

 

(b) monthly
progress reports that include statements of Expenditures and comparisons of such Expenditures to the adopted Budget;

 

(c) periodic
summaries of data acquired by or on behalf of the Company;

 

(d) copies
of any reports prepared by or on behalf of the Company concerning Operations;

 

(e) a
detailed final report within thirty (30) days after completion of each Program and Budget, which report shall include comparisons
between actual and budgeted Expenditures and comparisons between the objectives and results of Programs; and

 

(f) such
other reports as the Management Committee may reasonably request.

 

6.12 Inspection
Rights. The Manager shall: (a) provide to the Representatives, accountants, advisors and other representatives of each
Member, access to, and the right to inspect and copy, at the requesting party’s expense, all maps, drill logs, core tests,
reports, surveys, assays, analyses, production reports, operations, technical, accounting and financial records, and other information
in the possession or control of the Manager pertaining to the Company or the Operations; and (b) at the sole risk of the requesting
Member, and subject to the safety requirements of applicable Laws and the Manager’s reasonable safety policies and procedures,
permit the Representatives, accountants, advisors and other representatives of each Member to inspect the Assets and Operations.
The requesting Member shall use commercially reasonable efforts to prevent any such inspections from unreasonably interfering
with Operations or the other business and operations of the Manager.

 

6.13 Independent
Audit. Upon request made by any Member within twenty-four (24) months after the end of any calendar year (or, if the Management
Committee has adopted an accounting period other than the calendar year, within twenty-four (24) months after the end of such
period), the Manager shall cause an independent accounting firm selected by the Management Committee (the “Independent
Accountant”) to conduct an independent audit of the financial statements of the Company for such calendar year (or
other accounting period). Promptly after the completion of any such independent audit, the Manager shall deliver a copy of the
report of the Independent Accountant on the financial statements of the Company, together with a detailed report of costs and
Expenditures of the Company (including all costs and Expenditures for which the Manager sought reimbursement) for such year or
other accounting period prepared in accordance with GAAP and reconciled to the financial statements audited by the Independent
Accountant and to the monthly reports provided to the Members under Section 6.11. All written exceptions to and claims
(other than exceptions or claims based on fraud) upon the Manager by any Member relating to costs and Expenditures incurred by
or on behalf of the Company for such year or other accounting period shall be made by Notice to the Manager delivered not more
than three (3) months after receipt of the audit report and the related report of costs and Expenditures or shall be deemed forever
waived and released.

 

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ARTICLE
VII

DISTRIBUTIONS; DISPOSITION OF PRODUCTION

 

7.1 Distributions.

 

(a) Generally.
Except as otherwise provided in this Article VII, the aggregate amount of all distributions to the Members and the timing
of all such distributions shall be determined by the Management Committee.

 

(b) Cash
Distributions. Except as provided in Sections 7.2 and 3.1, cash distributions shall be made to the Members pro rata
in proportion to their respective Interests; provided, that: (i) all cash resulting from the sale of Miranda Products
under Section 7.3 shall be distributed to Miranda; and (ii) all cash resulting from the sale of GTI Products under Section
7.3 shall be distributed to GTI.

 

(c) Distributions
In Kind. During the existence of the Company, no Member shall be entitled or required to receive as distributions from the
Company any Company asset other than money. Upon the dissolution and winding-up of the Company, those Members that agree in writing
may be distributed in-kind undivided interests in the Assets of the Company in accordance with Section 9.4. Except as otherwise
provided in this Article VII or as otherwise determined by the Management Committee: (i) all distributions to the Members
shall be in cash; (ii) no Member shall have the right to demand distributions in cash or in kind; and (iii) all distributions
to the Members in kind shall be made to the Members pro rata in proportion to their respective Interests.

 

(d) Tax
Distributions. Notwithstanding other provisions of this Article VII, prior to making non-liquidating distributions
pursuant to any other provisions of this Section 7.1, the Company shall make cash distributions (“Tax Distributions”)
to the Members, pro rata in proportion to their relative positive Tax Distribution Amounts, until all positive Tax Distribution
Amounts are reduced to zero (0). Amounts withheld and paid to a tax authority with respect to a Member shall be treated as Tax
Distributions made to the Member. Tax Distributions shall: (i) be treated (for purposes of this Section 7.1, but not for
Capital Account purposes) as nonrecourse advances on future distributions payable to the Members under this Section 7.1;
(ii) reduce amounts otherwise distributable under the preceding provisions of this Section 7.1 to the recipient Members
as quickly as possible; and (iii) reduce the Capital Account balances of the recipient Members in the same manner as other distributions.
The Company shall use commercially reasonable efforts to cause Tax Distributions to be made within thirty (30) days after the
end of each calendar quarter, based on the Tax Distribution Amounts of each member as of the end of each such quarter after giving
effect to allocations pursuant to Exhibit C for such quarter.

 

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7.2 Liquidating
Distributions. Notwithstanding Section 7.1, all distributions made in connection with the sale or exchange of all
or substantially all of the Company’s assets and all distributions made in connection with the liquidation of the Company
shall be made to the Members in accordance with their respective Capital Account balances at the time of distribution after taking
into account the adjustments to the Capital Accounts under Section 5.2 of Exhibit C, all allocations of items
of Profit and Loss under Article III of Exhibit C, all sales of Products and all distributions through the
date of the final distribution. All distributions to the Members under this Section 7.2 shall be made in accordance with
the time requirements under Treasury Regulations §§ 1.704-1(b)(2)(ii)(b)(2) and (3).

 

7.3 Disposition
of Products. Subject to provisions of Section 3.2, disposition by the Company of Products shall be governed by this Section
7.3.

 

(a) On
a monthly basis, all products produced by the Company during the month shall be apportioned between Miranda and GTI in accordance
with their relative Interests on the last day of the month, with the portion apportioned to Miranda referred to as “Miranda
Products,” and the portion apportioned to GTI referred to as “GTI Products.” Except as
otherwise provided in this Section 7.3, the Company shall dispose of Products under arrangements as may be approved by
the Management Committee from time to time. Generally, except as adjusted pursuant to Section 7.3(b), Products shall be
disposed of in the order in which produced, and each disposition of Products shall be treated as a disposition by the Company
of Miranda Products and GTI Products in proportion to the applicable Interests.

 

(b) The
Management Committee shall, on a monthly basis, provide each Member a summary of the anticipated monthly production of Products
for the following twelve (12) months, and a summary of all outstanding agreements or commitments on behalf of the Company for
the disposition of Products. Each Member (a “Requesting Member”) may by Notice to the Company: (i) request
to purchase all or any specified amount of any uncommitted portion of the Requesting Member’s share of Products at such
price and on such other terms as may be designated by the Requesting Member; and (ii) request that the Management Committee enter
into a purchase agreement with a designated third party for all or any specified portion of the Requesting Member’s share
of Products, at such price and on such other terms as may be specified by the Requesting Member. The Management Committee shall
give effect to any such request, to the extent that doing so would not cause the Company to be in breach of any of its obligations
to third parties. Following any such request, future sales or dispositions of Products by the Company shall be apportioned between
the Members as reasonably determined by the Management Committee in order to give effect to such request, rather than as provided
in Section 7.3(a).

 

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(c)
                                         Any additional expenses or obligations incurred by the Company in the selling and separate
                                         disposition thereafter to or at the request of any Requesting Member of all or any portion
                                         of its share of Products, including any storage, freight to final destination, insurance,
                                         premiums, losses, claims, damages and liabilities, shall be an expense of such Member,
                                         and shall be reimbursed by such Member to the Company within thirty (30) days after receipt
                                         of an invoice for the same from the Manager, or may be recovered by the Manager from
                                         amounts otherwise distributable to the Requesting Member. Any such reimbursement or recovery
                                         shall not be considered a Capital Contribution and shall not increase the Capital Account
                                         of the Requesting Member. In addition, any costs and expenses attributable to any disposition
                                         of Products apportioned between the Members’ in accordance with the last sentence
                                         of Section 7.3(b), rather than in accordance with Section 7.3(a), shall
                                         be apportioned between the Members’ in accordance with their relative interests
                                         in the Products being separately disposed of.

 

(d)
Any costs of the Company for severance taxes, net proceeds taxes, ad valorem taxes and other taxes, fees or royalties imposed
(including any potential federal royalties or fees that may be imposed in the future) in connection with the production (as opposed
to the sale or disposition) of Products shall be an expense of the Company. To the extent a Member fails to contribute
to Monthly Capital Calls or timely make such reimbursements, the Manager shall have the right, but not the obligation, to recover
from amounts otherwise distributable to such Member such amounts as are necessary to cover that Member’s share of such costs.
Any amounts so recovered shall be treated as distributed to the Member and contributed by the Member as part of a Monthly Capital
Call.

 

(e)
If a Member fails to contribute to an adopted Program and Budget that provides for Capital Contributions for operating costs,
the Manager may recover from amounts otherwise distributable to such Member such amounts as are necessary to pay that Member’s
share of the operating costs, and shall treat the amounts so recovered as having been distributed to the Member and contributed
by the Member to the Company as otherwise required. In the event of such action, the non-Contributing Member’s Interest
shall not be reduced unless and only to the extent that the amounts so recovered are insufficient to pay that Member’s share
of operating costs. For purposes of this Section 7.3(e), “operating costs” shall not include any capital Expenditures,
other than replacement capital costs.

 

	7.4	GTI’s
Allocations and Distributions. GTI shall be entitled to ninety percent (90%) of the Product allocations and the resulting
cash distributions made by Company to its Members until GTI has recovered one hundred percent (100%) of its $10,000,000 Initial
Capital Contribution made solely by GTI; and eighty percent (80%) of the Product allocations and the resulting cash distributions
made by the Company to its members until GTI has recovered one hundred percent 100% of any additional Capital Contributions made
in excess of its initial Capital Contribution of Ten Million and 00/100 United States Dollars ($10,000,000), made solely by GTI.

 

The
Members acknowledge that the Company is party to and guarantees the Financing arranged by GTI to fund portions of GTI’s
Initial Capital Contribution and additional Capital Contributions. For the purposes of this Section 7.4, the Members agree
that the delivery of Product required under the Financing and the repayment of the Financing shall be borne entirely from GTI’s
Interest from its Product allocations and cash distributions. Miranda shall be entitled to receive Products allocations and the
resulting cash distributions using calculations that determine the after tax cash flow distributions that would have occurred
on an “all equity” basis showing cash distributions and Product allocations assuming the Financing had not occurred,
taking into account any adjustments provided for in Section 3.2.

 

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ARTICLE
VIII

TRANSFERS AND ENCUMBRANCES

OF INTERESTS

 

8.1
Restrictions on Transfer. Except for Permitted Transfers, Permitted Encumbrances and Permitted Interest Encumbrances,
no Member shall Transfer or create an Encumbrance on all or any part of its Interest. Any attempted Transfer of, or creation of
an Encumbrance on, all or any portion of an Interest not in accordance with the terms of this Article VIII shall be null
and void and of no legal effect.

 

8.2
Permitted Transfers and Permitted Interest Encumbrances.

 

(a)
To the extent not otherwise prohibited under Section 8.3, the following Transfers (“Permitted Transfers”)
are permitted:

 

(i)
A Member may Transfer all or any portion of its Interest to an Affiliate of such Member without the approval of the other Member
or the Manager or any other Person;

 

(ii)
A Member may Transfer all or any portion of its Interest to the other Member without the approval of the Manager or any other
Person;

 

(iii)
A Member may Transfer all or any portion of its Interest to any Person with the written approval of the other Member, which approval
shall not be unreasonably withheld or delayed if, in the reasonable determination of such other Member, the transferee has the
financial capacity to carry out the Capital Contribution and other financial obligations of the transferring Member under this
Agreement and the transferee is not a competitor of the Member whose approval for the Transfer is requested;

 

(iv)
A Member may Transfer all or any portion of its Interest in connection with the merger, amalgamation, consolidation or reorganization
of such Member with or into any other Person without the approval of the other Member or the Manager or any other Person; provided,
that the surviving entity in such merger, amalgamation, consolidation or reorganization: (A) possesses all or substantially all
of the stock, limited liability company or other equity interests, or all of the property rights and interests of the transferring
Member; and (B) is subject to all or substantially all of the liabilities and obligations of the transferring Member; and

 

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(v)
A Member may Transfer all or any portion of its Interest to any Person without the approval of the other Member or the Manager
or any other Person; provided that such Member complies with the provisions of Section 8.4.

 

(b)
To the extent not otherwise prohibited under Section 8.3, the following Encumbrances (“Permitted Interest Encumbrances”)
are permitted:

 

(i)
A Member may create an Encumbrance on all of its interest or any portion of its Interest with the written approval of the other
Member, which approval shall not be unreasonably withheld or delayed; and

 

(ii)
A Member may create an Encumbrance on all of its Interest (but not less than all) to secure debt for borrowed money incurred for
the purpose of satisfying such Member’s Capital Contribution obligations under this Agreement without the approval of the
other Member or the Manager or any other Person.

 

(iii)
GTI has created an encumbrance on its interests in the Company as a result of an equity transaction between CRH Mezzanine Pte.
Ltd and GTI wherein GTI has borrowed $2,000,000 under a secured convertible note that can be converted into GTI shares under certain
conditions. The Members approve and acknowledge the equity transaction and the security interest in the GTI interest in the Company
granted to CRH Mezzanine Pte. Ltd thereunder.

 

	5.	Notwithstanding
that Permitted Interest Encumbrances are allowed, any transferee in connection with the foreclosure or a Transfer or power of
sale in lieu of foreclosure of any Permitted Interest Encumbrance shall be subject to all of the provisions of this Agreement,
and shall not be admitted to the Company as a substitute Member except as provided in Section 8.5. Upon the foreclosure
or transfer or power of sale in lieu of foreclosure of any Permitted Interest Encumbrance, the transferee shall automatically
be admitted as an additional Member of the Company, subject to Sections 8.3, 8.5(d), 8.6 and 8.7.

 

8.3
Additional Limitations on Transfers and Encumbrances. Notwithstanding Section 8.2:

 

(a)
If a Transfer is made that causes the termination of the Company as a partnership for federal income tax purposes, the transferring
Member and the transferee shall jointly and severally indemnify, defend and hold harmless the other Member and its Member Indemnified
Parties from and against any and all Adverse Consequences arising from such tax termination;

 

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(b)
No Transfer permitted by this Article VIII shall relieve the transferring Member of its share of any liability, whether
accruing before or after such Transfer, that arises out of Operations conducted before such Transfer, including as provided in
Section 4.4;

 

(c)
The transferring Member and the transferee shall bear all tax consequences of any Transfer;

 

(d)
If a Member Transfers less than all of its Interest, the transferring Member and its transferee shall thereafter act and be treated
as one Member, with the Member with the greater Interest hereby appointed the agent and attorney-in-fact of the Member with the
lesser Interest with respect to the exercise of all rights to vote, consent, approve or otherwise make any decisions with respect
to the management or Operations or the Company;

 

(e)
No Member shall create an Encumbrance on all or any portion of a Interest or any economic interest therein, unless the Encumbrance
expressly is subordinate to the terms of any pledge or security interest of the Interest or portion thereof that secures or is
contemplated by this Agreement to secure in the future any obligation of the Company to any third-party lenders, including any
Project Financing; and

 

(f)
Only United States currency shall be used for Transfers for consideration.

 

8.4
Right of First Refusal.

 

(a)
Except for Permitted Transfers described in Sections 8.2(a)(i) through (a)(iv) and except for Transfers in connection
with the foreclosure or transfer in lieu of foreclosure of a Permitted Interest Encumbrance, no Member (the “Selling
Member”) may Transfer all or any portion of its Interest to any Person, unless the Selling Member first provides
an offer Notice (an “Offer Notice”) to the other Member (the “Notified Member”)
stating that the Selling Member desires to Transfer all or a portion of its Interest, designating the specific portion of the
Interest (the “Offered Interest”) that the Selling Member desires to Transfer, and specifying the proposed
purchase price (the “Offered Price”) and all of the other proposed terms and conditions of the proposed
Transfer of the Offered Interest (the “Offered Terms”).

 

(b)
The Notified Member shall have the right, but not the obligation, for a period of twenty (20) Business Days after its receipt
of the Offer Notice, to elect to purchase all, but not less than all, of the Offered Interest for the Offered Price and on the
other Offered Terms. Any such election shall be made by providing Notice of such election to the Selling Member within such twenty
(20) Business Day period.

 

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(c)
If the Notified Member timely elects to purchase the Offered Interest, the parties shall close the sale of the Offered Interest
for the Offered Price and on the Offered Terms on the later of: (i) twenty (20) Business Days after the Selling Member
provides the Offer Notice; and (ii) five (5) Business Days after the receipt of all required consents and approvals, if any, with
respect to such Transfer from all Governmental Authorities. If the Notified Member does not elect to purchase the Offered Interest
or the Notified Member fails to close the purchase thereof within the time period specified above, the Selling Member may Transfer
all, but not less than all, of the Offered Interest to any third-party purchaser during the later of (i) the ninety (90)
day period after the expiration of such twenty (20) Business Day election period; or (ii) if the Notified Member elects to purchase
but fails to close within the time period specified above, the ninety (90) day period after the expiration of such period, but
only for a cash value of the consideration received by the Selling Member that is greater than or equal to the Offered Price and
on the Offered Terms, and only in accordance with Section 8.3. If the Selling Member does not sell the Offered Interest
in accordance with the terms described above within the foregoing ninety (90) day period, the Selling Member shall again afford
the Notified Member the purchase rights in this Section 8.4 with respect to any offer to sell, assign or dispose of all
or any portion of the Offered Interest or any other Interest held by the Selling Member.

 

8.5
Substitution of a Member.

 

(a)
Except as provided in Section 8.5(c), no transferee (by conveyance, foreclosure, operation of Law or otherwise) of all
or any portion of an Interest shall become a substituted Member without the unanimous approval of the Representatives of the Management
Committee, which approval may be withheld in the sole discretion of each such Representative. A transferee of an Interest that
receives unanimous approval to become a Member shall succeed to all of the rights and interest of his transferor in the Company.
A transferee of a Member that does not receive unanimous approval to become a Member shall not become a Member, and shall have
no rights under this Agreement or the Act applicable to a Member.

 

(b)
Except as provided in Section 8.5(c), if a Member shall be dissolved, merged or consolidated, its successor in interest
shall have the same obligations and rights to profits or other compensation that such Member would have had if it had not been
dissolved, merged or consolidated, except that the representative or successor shall not become a substituted Member without the
unanimous approval of the Representatives of the Management Committee, which approval may be withheld in the sole discretion of
each such Representative. Such a successor in interest that receives unanimous approval to become a Member shall succeed to all
of the rights and interests of his predecessor in the Company. A successor in interest that does not receive unanimous approval
to become a Member shall not become a Member, and shall have no rights under this Agreement or the Act applicable to a Member.

 

(c)
Notwithstanding Sections 8.5(a) and (b), subject to compliance with Sections 8.3, 8.5(d), 8.6
and 8.7, a transferee of all or a portion of an Interest in connection with a Permitted Transfer or in connection with
the foreclosure or transfer in lieu of foreclosure of a Permitted Interest Encumbrance shall automatically be admitted to the
Company as a substituted Member with respect to the transferred interest without the consent of any other Member or the Management
Committee.

 

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(d)
No Transfer of any interest in the Company otherwise permitted under this Agreement, including a Permitted Transfer, shall be
effective for any purpose whatsoever until the transferee shall have assumed the transferor’s obligations to the extent
of the interest Transferred, and shall have agreed to be bound by all the terms and conditions of this Agreement, by written instrument
in form and substance reasonably satisfactory to the non-transferring Members.

 

(e)
Upon the unanimous determination of the Management Committee that a transferee or the successor or representative of a Member
has met the requirements for admission as a Member, the Manager shall have the authority and duty to amend this Agreement and
to execute on behalf of the Members and the Company such amendments and other documents to the extent necessary to reflect the
admission of such transferee as a substituted Member.

 

(f)
Upon the admission of a transferee as a substituted Member, the transferor shall have no further obligations under this Agreement
with respect to that portion of its Interest Transferred to the transferee; provided, that no Member or former Member shall
be released, either in whole or in part, from any liability of such Member to the Company or the other Members under this Agreement
or otherwise relating to periods through the date of such Transfer (whether as the result of a voluntary or involuntary Transfer)
or any obligation that under Section 11.13 survives the Transfer of all or any portion of a Member’s Interest, unless
each other Member agrees in writing to any such release.

 

8.6
Conditions to Substitution. As conditions to its admission as a Member, an assignee, transferee or successor of a Member
shall: (a) execute and deliver any agreements or instruments, in form and substance satisfactory to the non-transferring Members,
as the non-transferring Members reasonably request, including an acknowledgement and agreement to be bound in respect of this
Agreement; and (b) pay all reasonable expenses in connection with its admission as a substituted Member.

 

8.7
Admission as a Member. No Person shall be admitted to the Company as a Member unless either: (a) the Interest or part
thereof acquired by such Person has been registered under the Securities Act, and any applicable state securities Laws; or (b)
the Company has received a favorable opinion of the transferor’s legal counsel or of other legal counsel acceptable to the
non-transferring Members to the effect that the Transfer of the Interest to such Person is exempt from registration under those
Laws. The non-transferring Members, however, may waive the requirements of this Section 8.7.

 

8.8
Economic Interest Holders. A transferee or successor to all or any portion of a Interest that is not admitted as a
substituted Member of the Company shall be subject to all of the economic and non-economic obligations of a Member under this
Agreement, including obligations to make Capital Contributions and reimbursement obligations, but shall not have any of the non-economic
rights of a Member under this Agreement. For clarity, the non-economic rights of a Member include, without limitation, rights
to vote, consent or approve matters under this Agreement, inspection rights, audit rights, rights to indemnification, and all
rights to make any claims or demands against the Company, any Member or the Manager under this Agreement, the Act or otherwise.
Each Member, by execution of this Agreement, acknowledges and agrees that any of its transferees or successors that is not admitted
as a substituted Member of the Company shall be bound by this Section 8.8 and the other provisions of this Agreement.

 

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ARTICLE
IX

RESIGNATION, DISSOLUTION AND LIQUIDATION

 

9.1
Resignation. A Member may resign from the Company only pursuant to the provisions of this Section 9.1. 

 

(a)
Voluntary Resignation. Any Member may resign from the Company for any reason or no reason effective as of the end of the
then current Program and Budget period by giving Notice to the other Member not later than sixty (60) days before the end of such
Program and Budget period. Upon such resignation, the resigning Member shall, subject to and in accordance with Section 9.1(d),
relinquish to the Company its entire Interest, free and clear of Encumbrances created by, through or under the resigning Member,
for no consideration whatsoever, other than the rights of such Member that under Section 11.13 expressly survive the resignation
of a Member.

 

(b)
Involuntary Resignation – Elimination of Minority Interest. Subject to Section 9.1(c), a Member shall be deemed
to have resigned from the Company as a Member under Section 10.50.185 of the Act upon the reduction of the Member’s
Interest to less than five percent (5%). Upon the deemed resignation, the resigning Member shall, subject to and in accordance
with Section 9.1(d), relinquish to the Company its entire Interest, free and clear of Encumbrances created by, through
or under the Member, in exchange for the right to receive five percent (5%) of Net Proceeds, if any, in an aggregate amount calculated
on a cumulative basis after the effective date of the resignation up to, but not exceeding the net amount of the Member’s
Contributed Capital, minus the aggregate amount of cash and the fair market value of property distributed to the Member
and its predecessors since the inception of the Company to the date of the deemed resignation. Other than the consideration described
in the previous sentence and the rights of the Member that under Section 11.13 expressly survive the resignation or deemed
resignation of a Member, the relinquishment by a Member of its Interest under this Section 9.1(b) shall be for no consideration
whatsoever. Net Proceeds, if any, shall be paid in accordance with Exhibit D.

 

(c)
Recalculation and Restoration of Interest. Notwithstanding Section 9.1(b), if a Member’s Interest would be
relinquished under Section 9.1(b) because of an adjustment to Interests under Section 6.7(c) in connection with
the Member’s election not to contribute, or to contribute less than its Interest, to a Program and Budget, the resignation
of the Member and the relinquishment of its Interest shall be deferred until after the completion of the Program and Budget period
to take into account any recalculation of the Member’s Interest under Section 6.7(b) and any reimbursement by the
Member of an Excess Contribution under Section 6.7(c). If, after taking into account the recalculation and reimbursement,
if any, the Interest should be relinquished under Section 9.1(b), then the Member shall immediately be deemed to resign
as a Member and relinquish its Interest subject to and in accordance with Section 9.1(d); provided, however, that
the resignation and relinquishment shall be deemed effective as of the beginning of the Program and Budget period. If, after taking
into account the recalculation and reimbursement, if any, the Interest should not be relinquished, then the Member shall not be
required to resign or relinquish its Interest under Section 9.1(b). The Manager shall make, and the Members shall cooperate
with the Manager in making, the distributions and allocations of items of Profit, Loss and credit required by Section 6.7(d),
and such other distributions, allocations of items of Profit, Loss and credit, and payments of Net Proceeds as the Manager reasonably
determines are necessary or appropriate to effect the intent and accomplish the purposes of this Section 9.1(c).

 

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(d)
Actions Upon Resignation. Upon the resignation or deemed resignation of a Member, or the relinquishment of a Member’s
Interest, the Member shall execute and deliver such instruments of assignment and conveyance, conveying its Interest to the Company
(or to a designee of the Company designated by the other Member, which may include the other Member or its Affiliates) as the
other Member reasonably requests.

 

9.2
Non-Compete Covenant. A Member that has resigned or is deemed to have resigned or that has relinquished its Interest
under Section 9.1, shall not, and shall cause its Affiliates not to, directly or indirectly acquire any interest in property
within the Area of Interest for two (2) years after the effective date of the resignation, deemed resignation, or relinquishment.
If such former Member, or any Affiliate of such former Member, breaches this Section 9.2, such former Member shall or shall
cause its Affiliate to offer to convey to the Company (or any other Person designated by the Company), without cost, any such
property or interest so acquired. Such offer shall be made in writing and may be accepted by the Company at any time within twenty
(20) days after its receipt by the Company. In addition to any other remedies provided by this Agreement and applicable Law, each
Member agrees that the Company (or any remaining Member, on behalf of the Company), may enforce this Section 9.2 through
such legal or equitable remedies, including an injunction, as a court of competent jurisdiction shall allow without the necessity
of proving actual damages or bad faith, and each Member waives, and shall cause its Affiliates to waive, any claim or defense
that the Company (or any remaining Member, on behalf of the Company) has an adequate remedy at law and any requirement for the
securing or posting of any bond in connection with such equitable remedy.

 

9.3
Dissolution. The Company shall be dissolved only upon the unanimous agreement of the Members.

 

9.4
Liquidation. 

 

(a)
The Liquidator. Promptly after the dissolution of the Company, the Management Committee shall appoint in writing one or
more liquidators (who may be a Member or the Manager) (the “Liquidator”), who shall have full authority to
wind up the affairs of the Company and to make a final distribution as provided in this Agreement. The Liquidator shall continue
to conduct Operations with all of the power and authority of the Management Committee and the Manager. Without limiting the previous
sentence, the Liquidator shall have the power and authority to complete any transaction and satisfy any obligation, unfinished
or unsatisfied, at the time of dissolution, if the transaction or obligation arises out of Operations before the time of dissolution.
The Liquidator shall have the power and authority to grant or receive extensions of time or change the method of payment of an
already existing liability or obligation, prosecute and defend actions on behalf of the Company, encumber Assets, and take any
other reasonable action in any matter with respect to which the Company continues to have, or appears or is alleged to have, an
interest or liability.

 

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(b)
Steps of the Liquidator. The steps to be accomplished by the Liquidator are as follows:

 

(i)
As promptly as possible after dissolution, the Liquidator shall cause a proper accounting to be made of the Company’s assets,
liabilities and Operations through the last day of the month in which the dissolution occurs.

 

(ii)
The Liquidator shall pay all of the debts and liabilities of the Company or otherwise make adequate provision for such debts and
liabilities (including, the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as
the Liquidator may reasonably determine) to the extent required by the Act.

 

(iii)
The Liquidator shall then by payment of cash or property (at the election of the Liquidator, and, in the case of property, valued
under Section 4.2 of Exhibit C) distribute to the Members such amounts or property as are required to distribute
all remaining amounts or property to the Members in accordance with Section 7.2.

 

(c)
Distributions in Liquidation. In connection with the liquidation of the Company, those Members that agree in writing may
be distributed in-kind undivided interests in the Assets of the Company. For purposes of this Section 9.4, a distribution
of an asset or an undivided interest in an asset in-kind to a Member shall be considered a distribution of an amount equal to
the fair market value of such asset or undivided interest as determined under Section 4.2 of Exhibit C. Each
Member shall have the right to designate another Person to receive any property that otherwise would be distributed in kind to
that Member under this Section 9.4. Any real property, including any mineral interests, distributed to the Members shall
be conveyed by special warranty deed subject to all Encumbrances, contracts and commitments then in effect with respect to such
property, which shall be assumed by the Members receiving such real property. The distribution of cash or property to the Members
in accordance with the provisions of this Section 9.4 shall constitute a complete return to the Members of their respective
Capital Contributions and a complete distribution to the Members of their respective interests in the Company and all Company
property. Without limiting the provisions of this Agreement that under Section 11.13 survive the termination of the Company,
no Member shall have any obligation to contribute to the Company or pay to any other Member any deficit balance in such Member’s
Capital Account.

 

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(d)
Compliance with Laws; Timing. Except as expressly provided herein, the Liquidator shall comply with any applicable requirements
of the Act and all other applicable Laws pertaining to the winding up of the affairs of the Company and the final distribution
of its assets. Liquidation of the Company shall be completed within the time limits imposed by Treasury Regulations §§
1.704-1(b)(2)(ii) and (g).

 

9.5
Termination. Upon the completion of the distribution of the Company’s Assets as provided in Section 9.4,
the Company shall be terminated and the Liquidator shall file a certificate of cancellation (or similar documentation) of the
certificate of formation (or similar documentation) of the Company and shall take such other actions as may be necessary to terminate
the existence of the Company.

 

ARTICLE
X

AREA OF INTEREST; ABANDONMENT

 

10.1
Acquisitions Within Area of Interest. 

 

(a)
General. Except as provided in this Section 10.1, no Member or former Member shall, or permit any of its Affiliates
to, acquire any interest or right to acquire any interest in any real property, minerals or water rights relating to real property
wholly or partially within the Area of Interest (collectively, “Covered Real Property”), either directly
or indirectly, alone, or as a member, partner, stockholder or other investor in any Person, at any time until the earlier of:
(i) the termination of the Company; and (ii) the date that is two years after the date that such Person no longer is a Member
in the Company for any reason. In addition to any other remedies provided by this Agreement and applicable Law, each Member agrees
that the Company (or any Member, on behalf of the Company), may enforce this Section 10.1 through such legal or equitable
remedies, including an injunction, as a court of competent jurisdiction shall allow without the necessity of proving actual damages
or bad faith, and each Member waives, and shall cause its Affiliates to waive, any claim or defense that the Company (or any remaining
Member, on behalf of the Company) has an adequate remedy at law and any requirement for the securing or posting of any bond in
connection with such equitable remedy.

 

(b)
Notice to Other Member. Within ten (10) days after the acquisition by any Member (the “Acquiring Member”)
or any Affiliate of the Acquiring Member of any Covered Real Property (excluding Covered Real Property acquired by or on behalf
of the Company under a Program), the Acquiring Member shall provide Notice to the other Member of such acquisition. The Acquiring
Member’s Notice shall describe in detail the terms of the acquisition (including the associated costs), the Covered Real
Property subject to the acquisition, whether or not the Acquiring Member believes the acquisition of the Covered Real Property
by the Company is in its best interests, and the reasons for its conclusions. In addition to the Notice, the Acquiring Member
shall make any and all information concerning the Covered Real Property and the terms of the acquisition available for inspection
by the other Member.

 

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(c)
Option Exercised. If, within twenty (20) days after receiving the Acquiring Member’s Notice, the other Member provides
Notice to the Acquiring Member that it elects to participate in the Covered Real Property, the Acquiring Member shall, or shall
cause its Affiliate to, convey to the Company (or to the other Member or another entity as mutually agreed by the Members), by
special warranty deed, its entire interest or right to acquire the Covered Real Property (or if to the other Member, a proportionate
undivided interest in the Covered Real Property based on the Interests of the Members), free and clear of all Encumbrances arising
by, through or under the Acquiring Member and its Affiliates, other than those to which both Members have agreed. If conveyed
to the Company, the Covered Real Property shall become a part of the Claims for all purposes of this Agreement immediately upon
the Notice of such other Member’s election to participate. Such other Member shall promptly pay to the Acquiring Member
its proportionate share based on Interests of the Acquiring Member’s and its Affiliates’ actual out-of-pocket acquisition
costs.

 

(d)
Option Not Exercised. If the other Member does not give Notice of its election to participate within the twenty (20) day
period in Section 10.1(c), neither such other Member nor the Company shall have any interest in the Covered Real Property,
and the Covered Real Property shall not be a part of the Claims or otherwise be subject to this Agreement.

 

10.2
Surrender or Abandonment of Claims. Either Member may request that the Management Committee authorize the Manager to
surrender or abandon part or all of the Claims. If the Management Committee does not authorize such surrender or abandonment after
such a request, or authorizes such surrender or abandonment over the objection of a Member, subject to the terms of any Project
Financing, any Company indebtedness or other contractual or legal restrictions binding on the Company, the Member that desires
to retain such Claims shall be distributed such Claims without cost to such Member by special warranty deed, free and clear of
all Encumbrances created by, through or under the Member that desires for such Claims to be surrendered or abandoned (but subject
to any Encumbrances previously created thereon by the Company), which Claims the Members agree shall be assigned an agreed fair
market value as of the time of distribution of zero (0) dollars. As and to the extent provided in Section 4.4, the Member
that desires to abandon or surrender such Claims shall remain liable to reimburse the acquiring Member and its Indemnified Member
Parties for its share (determined by Interests as of the date of such distribution) of any Adverse Consequences with respect to
Properties, including Continuing Obligations, Environmental Liabilities and Environmental Compliance, whether accruing before
or after the date of such distribution, arising out of activities before the date of such distribution.

 

ARTICLE
XI

MISCELLANEOUS

 

11.1
Option Agreement. The Members agree that, as of the Effective Date, the Option Agreement shall be null and void
and of no force and effect whatsoever.

 

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11.2.
Renshaw Royalty. The Members expressly acknowledge that Miranda is in the process of purchasing certain royalty
interests from one Daniel E. Renshaw that stem from the Patented Claims (the “Renshaw Royalty”) and
the Members expressly agree that: (1) any interest Miranda may now have or hereafter acquire in the Renshaw Royalty is specifically
excluded from this Agreement; and (2) the Renshaw Royalty and any interest Miranda may now have or hereafter acquire in the Renshaw
Royalty shall not be considered an Asset, Interest or any other type of right or interest under this Agreement.

 

11.3
Usage of Terms. Unless otherwise defined herein, terms used in this Agreement have the
meanings customarily given such terms.

 

11.4
Confidentiality. 

 

(a)
Subject to Section 11.2(b), each Member and the Manager shall keep confidential and not use, reveal, provide or transfer
to any Person any Confidential Information that it obtains or has obtained concerning the Company or the other Member without
the prior written consent of the other Member, which consent shall not be unreasonably withheld or delayed, except: (i) to the
extent that disclosure to a Person is required by Law (including in the case of Miranda, pursuant to its public disclosure obligations
as a “reporting issuer” under applicable Canadian securities laws); (ii) information that, at the time of disclosure,
is generally available to the public (other than as a result of a breach of this Agreement or any other confidentiality agreement
to which such Person is a party or of which it has knowledge), as evidenced by generally available documents or publications;
and (iii) information that was in the disclosing Member’s possession before the Effective Date (as evidenced by appropriate
written materials) and was not acquired directly or indirectly from the Company or the other Member (including in its capacity
as the Manager).

 

(b)
Notwithstanding Section 11.2(a), Confidential Information may be disclosed without consent to: (i) a consultant, contractor,
subcontractor, officer, director or employee of the Company, the Manager or any Member or any of their respective Affiliates that
has a bona fide need to be informed of the Confidential Information; (ii) any third party to whom the disclosing Member or Manager
contemplates a Transfer of all or any part of its Interest or the Assets; (iii) any actual or potential lender, underwriter or
investor for the sole purpose of evaluating whether to make a loan to or an investment in the disclosing Member or the Company;
or (iv) in connection with a press release or public announcement under Section 11.3.

 

(c)
As to any disclosure under subsections (i), (ii) or (iii) of Section 11.2(b): (i) the disclosing Member
or Manager shall give Notice to the other Member concurrently with the making of the disclosure; (ii) only such Confidential Information
as the recipient has a legitimate business need to know shall be disclosed; (iii) the recipient shall first agree in writing to
protect the Confidential Information from further disclosure to the same extent as the Members and the Manager are obligated under
this Section 11.2; and (iv) the disclosing Member or Manager shall be responsible and liable for any use or disclosure
by any such recipient that would constitute an impermissible use or disclosure by the disclosing Member or Manager.

 

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(d)
A Member or Manager shall continue to be bound by this Section 11.2 until the earlier of: (i) the date that is two (2)
years after the cancellation of the certificate of formation (or similar documentation) of the Company (notwithstanding the resignation
or deemed resignation of such Member or Manager or the Transfer by such Member of its entire Interest); and (ii) the date that
is two (2) years after the resignation or deemed resignation of such Member or Manager or, in the case of a Member, the Transfer
by such Member of its entire Interest; provided that with respect to any Confidential Information that constitutes “trade
secrets” of a Member or the Company under the Uniform Trade Secrets Act or similar applicable Laws, the provisions of this
Section 11.2 shall survive indefinitely.

 

11.5
Public Announcements. Any Member may issue any press release or make any public disclosure concerning the Company or
Operations that it believes in good faith is required by applicable Law or any listing or trading agreement concerning its publicly
traded securities or the publicly traded securities of any of its Affiliates; provided that if a Member or any of its Affiliates
intends to issue such a press release or make such a disclosure, it shall use commercially reasonable efforts to advise the other
Member before issuing the press release or making the disclosure. Except as provided in the previous sentence, neither the Company,
any Member, the Manager, nor any of their respective Affiliates, shall issue any press release or make any public announcement
relating to the Company or Operations without the prior written approval of all of the Members.

 

11.6
Notices. 

 

(a)
Unless otherwise specifically indicated herein, all notices to be made or given by the Members or the Manager, and any request,
demand or other communication pursuant to this Agreement (each, a “Notice”) shall be in writing and shall be
given by: (i) personal delivery; (ii) a recognized international overnight courier service; (iii) electronic mail, with a confirmation
sent by registered or certified mail return receipt requested; (iv) facsimile, provided the sender has evidence that the facsimile
was received by the addressee’s facsimile machine or device; or (v) by registered or certified mail return receipt requested.

 

(b)
A Notice shall be effective and shall be deemed delivered: (i) if by personal delivery or by a recognized international overnight
courier service, on the date of delivery if delivered before 5:00 p.m. local destination time on a Business Day, otherwise on
the next Business Day after delivery; (ii) if by electronic communication or facsimile, on the Business Day after receipt of the
electronic communication or facsimile; and (iii) if by registered or certified mail return receipt requested, on the Business
Day after actual receipt.

 

(c)
A Notice shall be delivered to the Members or the Manager at their respective street addresses, electronic mail addresses or facsimile
numbers set forth below, and any such street address, electronic mail address or facsimile number may be changed by a Notice given
in accordance with the provisions of this Section 11.4.

 

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If
to the Members:

 

Miranda
U.S.A., Inc.

15381
– 36th Avenue

Surrey,
British Columbia

CANADA
V3Z 0J5

Attention:
Joseph P. Hebert

Electronic
mail: joseph.hebert75@gmail.com

Facsimile:
+1.604.648.8706

 

Gold
Torrent, Inc.

960
South Broadway, Suite 530

Boise,
Idaho – U.S.A. 83706

Attention:
Daniel J. Kunz

Electronic
mail: dan.kunz@goldtorrentinc.com

Facsimile:
+1.208.343.1777

 

If
to the Manager:

 

Gold
Torrent, Inc.

960
South Broadway, Suite 530

Boise,
Idaho – U.S.A. 83706

Attention:
Daniel J. Kunz

Electronic
mail: dan.kunz@goldtorrentinc.com

Facsimile:
+1.208.343.1777

 

11.7
Headings. The subject headings of the Articles, Sections and subsections of this Agreement and the Exhibits to this
Agreement are inserted only as a matter of convenience and shall in no way define, limit, extend or describe the scope of this
Agreement or the intent of any provisions hereof.

 

11.8
Waiver. Except for waivers specifically provided for in this Agreement, rights under this Agreement may not be waived
except by an instrument in writing signed by the Member or Manager to be charged with the waiver. The failure of a Member or the
Manager to insist on the strict performance of any provision of this Agreement or to exercise any right, power or remedy upon
a breach of this Agreement shall not constitute a waiver of any provision of this Agreement or limit the Member’s or the
Manager’s rights thereafter to enforce any provision or exercise any right.

 

11.9
Amendment. Except for (a) amendments executed by the Manager in connection with the admission of additional or substituted
Members under Sections 2.6 or 8.5(e), and (b) deemed amendments under Section 11.8, notwithstanding the definition
of “limited liability company operating agreement” contained in Section 10.50.095 of the Act or any other contrary
provision of the Act, no amendment, restatement, modification, or supplement of or to this Agreement shall be valid or shall constitute
part of the “limited liability company operating agreement” of the Company unless it is made in a writing duly executed
by each Member or at least one Representative of each Member, which writing specifically indicates that it is amending, restating,
modifying or supplementing this Agreement. To the extent reasonably possible, minutes, resolutions and consents of the Management
Committee that are executed or approved by at least one Representative of each Member shall be read in a manner consistent with
this Agreement. To the extent of any irreconcilable conflict between any provision of this Agreement and any such minutes, resolutions
or consents, this Agreement shall control. Under no circumstances shall any consent or approval of the Management Committee that
is not executed or approved by each Member or at least one Representative of each Member amend, restate, modify or supplement
this Agreement.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 50

    	 

    

 

11.10
Severability. If at any time any covenant or provision contained in this Agreement is deemed in a final, non-appealable
ruling of a court or other body of competent jurisdiction to be invalid or unenforceable, such covenant or provision shall be
considered divisible and shall be deemed immediately amended and reformed to include only such portion of such covenant or provision
as such court has held to be valid and enforceable. Such covenant or provision, as so amended and reformed, shall be valid and
binding as though the invalid or unenforceable portion had not been included in this Agreement.

 

11.11
Recitals. The Recitals set forth above
are a part of this Agreement.

 

11.12
Force Majeure. Except for any obligation to make Capital Contributions or other payments when due under this Agreement,
the obligations of a Member or the Manager shall be suspended to the extent and for the period that performance is prevented by
in whole or in part by a Force Majeure Event. The affected Member or Manager shall promptly give Notice to the other Member of
the Force Majeure Event and the suspension of performance, stating in the Notice the nature of and the reasons for the Force Majeure
Event and its estimated duration. The affected Member or Manager shall resume performance as soon as reasonably possible.

 

11.13
Rules of Construction. Each Member and the Manager acknowledge that it has been represented by counsel during the negotiation,
preparation and execution of this Agreement or the acquisition of its Interest or other interest in the Company and therefore
waive the application of any Law or rule of construction providing that ambiguities in an agreement or other document shall be
construed against the drafter of the agreement or document.

 

11.14
Governing Law. This Agreement, and the rights and liabilities of the Members and the Manager under this Agreement,
shall be governed by and interpreted in accordance with the Laws of the State of Alaska, except for its rules as to conflicts
of Laws that would apply the Laws of another state.

 

11.15
Waiver of Jury Trial; Consent to Jurisdiction. THE MEMBERS AND THE MANAGER HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY
IN ANY ACTION OR PROCEEDING, WHETHER NOW EXISTING OR ARISING IN THE FUTURE, ARISING UNDER OR RELATING TO THIS AGREEMENT OR OTHERWISE
RELATING TO THE COMPANY OR OPERATIONS, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE MEMBERS AND THE MANAGER AGREE
THAT ANY OF THEM MAY FILE A COPY OF THIS SECTION 11.13 WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED-FOR AGREEMENT IRREVOCABLY TO WAIVE A TRIAL BY JURY. The Members and the Manager agree and consent to be subject to the
jurisdiction of the Alaska Superior Courts and the appellate courts sitting in the State of Alaska in any action or proceeding
seeking to enforce any provision of or based on any right arising under or relating to this Agreement or otherwise relating to
the Company or Operations.

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 51

    	 

    

 

11.16
Further Assurances. Each Member and the Manager shall do all things and provide all such reasonable assurances as may
be required to consummate the transactions contemplated by this Agreement, and shall provide and execute such additional documents
or instruments as may be reasonably necessary or desirable to implement and carry out the intent and purpose of this Agreement
and carry out its provisions.

 

11.17
Survival.

 

(a)
Resignation, Relinquishment, Redemption and Transfer. After the resignation or deemed resignation of a Member, the relinquishment
or redemption of a Member’s Interest, or the Transfer by a Member of its entire Interest in the Company, such former Member
shall have no further rights or obligations as a Member of the Company relating to periods after the date of the resignation,
deemed resignation, relinquishment, redemption or Transfer; provided, that after such resignation, deemed resignation,
relinquishment, redemption or Transfer, such former Member shall: (i) not be released, either in whole or in part, from any liability
of such Member to the Company or the other Members under this Agreement or otherwise relating to periods through the date of such
resignation, deemed resignation, relinquishment, redemption or Transfer, unless each other Member agrees in writing to any such
release; (ii) remain liable to each other Member and former Member and their respective Indemnified Member Parties for its reimbursement
and indemnification obligations under Sections 4.3 and 4.4; and (iii) shall continue to have the right to enforce
the indemnification and reimbursement obligations of the Company, the other Members and the former Members under Sections 4.2,
4.3 and 4.4 with respect to actions, omissions or events occurring before the date of such resignation, deemed resignation,
relinquishment, redemption or Transfer, notwithstanding any amendment, restatement, modification or supplement to this Agreement
adopted after the date of such resignation, deemed resignation, relinquishment, redemption or Transfer that attempts to limit
or restrict such rights. In addition, a former Member shall continue to be subject to its obligations, if any, under Sections
9.1(c) and 9.2 after the resignation or deemed resignation of such former Member.

 

(b)
Dissolution, Liquidation and Termination. After the dissolution, liquidation and termination of the Company: (i) each Person
that was a Member as of the date of the dissolution of the Company shall be entitled to copies of all information acquired by
or on behalf of the Company on or before the date of termination and not previously furnished to such Person; (ii) if any former
Member continues to own all or any portion of the Properties, each Person that was a Member as of the date of dissolution of the
Company shall continue to have rights of ingress and egress to such Properties for purposes of ensuring Environmental Compliance;
and (iii) each former Member (regardless whether such Person was a Member as of the date of the dissolution of the Company) shall
remain liable for: (A) its indemnification and reimbursement obligations under Sections 4.3 and 4.4, subject to
Section 4.5; and (B) its Capital Contribution obligations under Sections 3.3 and 3.4, but only in the case
of this clause (B) to the limited extent provided in Section 5.6(e).

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 52

    	 

    

 

(c)
Survival of Provisions. The provisions of this Agreement shall survive any event described in Sections 11.15(a)
and (b) to the fullest extent necessary for the enforcement of such provisions and the protection of the Members and the
Manager.

 

11.18
No Third-Party Beneficiaries. Except to the extent specifically provided in this Agreement with respect to the Indemnified
Member Parties (who are express third-party beneficiaries of this Agreement solely to the extent provided in this Agreement),
this Agreement is for the sole benefit of the Members, the Manager and the Representatives, and no other Person (including any
creditor of the Company, the Members, the Indemnified Member Parties and the Manager), is intended to be a beneficiary of this
Agreement or shall have any rights under this Agreement. Except as specifically provided in this Agreement, no Person (including
any named third-party beneficiary) shall have a right to approve any amendment or modification, or waiver under, this Agreement.

 

11.19
Entire Agreement. This Agreement constitutes the entire agreement of the Members and the Manager with respect to the
Company and supersedes all prior agreements, understandings and negotiations and discussions, whether oral, written or otherwise,
of the Parties relating to the subject matter of this Agreement.

 

11.20
Avoidance of Provisions. No Member shall avoid the provisions of this Agreement by making
one or more Transfers to one or more Affiliates and then disposing of all or any portion of such Member’s interest in any
such Affiliate.

 

11.21
Parties in Interest. This Agreement shall inure to the benefit of the permitted successors and permitted assigns of
the Members and the Manager, and shall be binding upon the successors and assigns of the Members and the Manager (whether or not
permitted).

 

11.22
Execution by Electronic Transmission. The signature of either of the Members or the Manager
may be evidenced by a facsimile, scanned email or internet transmission copy of this Agreement bearing such signature.

 

11.23
Counterparts. This Agreement may be executed in one or more counterparts, each of which so executed shall be deemed
to be an original, and such counterparts together shall constitute one (1) and the same instrument. 

 

11.24
Rule Against Perpetuities. The Members do not intend that there shall be any violation of the Rule Against Perpetuities,
the Rule Against Unreasonable Restraints on the Alienation of Property, or any similar rule. Accordingly, if any right or option
to acquire any interest in the Claims, in an Interest, in the Assets, or in any real property exists under this Agreement, such
right or option must be exercised, if at all, so as to vest such interest within time periods permitted by applicable rules. If,
however, should any such violation inadvertently occur, the provisions of this Agreement shall be revised in such a way as to
approximate most closely the intent of the Members within the limits permissible under such rules.

 

[Signatures
on Next Page]

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Page 53

    	 

    

 

The
Members have executed this Agreement on the dates indicated below to be effective for all purposes as of the Effective Date.

 

MEMBERS:

 

Miranda
U.S.A., Inc. a wholly-owned subsidiary of Miranda Gold Corp.

 

	By:
    	 	 
	Name:
    	Joseph
    P. Hebert	 
	Title:
    	President
    & Chief Executive Officer, Miranda Gold Corp.	 
	Date:
    	 	 

 

Gold
Torrent, Inc.

 

	By:
    	 	 
	Name:
    	Daniel
    Kunz	 
	Title:
    	Chief
    Executive Officer	 
	Date:
    	 	 

 

Acknowledged
and agreed as to those provisions

applicable
to the Manager:

 

MANAGER:

 

	Gold Torrent, Inc.	 
	By:
    	 	 
	Name:
    	Daniel
    Kunz	 
	Title:
    	Chief
    Executive Officer	 
	Date
    	 	 

 

    	Limited Liability Company Operating Agreement of Alaska Gold Torrent LLC: Signature Page 

    	 

    

 

EXHIBIT
A

 

DESCRIPTION
OF THE CLAIMS

 

The
Patented Claims

 

	 	 	Name	 	Survey	 	 	Patent	 
	 	 	 	 	 	 	 	 	 
	1	 	Gold Dust No. 2	 	 	960A		 	 	478360	 
	2	 	Golden Wonder	 	 	960A		 	 	478360	 
	3	 	Golden Wonder No. 1	 	 	960A		 	 	478360	 
	4	 	Gold Dust	 	 	960A		 	 	478360	 
	5	 	Gold Dust No. 1	 	 	960A		 	 	478360	 
	6	 	Gold Dust Fraction	 	 	960A		 	 	478360	 
	7	 	Golden Eagle	 	 	1018	 	 	 	728475	 
	8	 	Golden Eagle No. 1	 	 	1018	 	 	 	728475	 
	9	 	Summit	 	 	1018	 	 	 	728475	 
	10	 	Gold Nugget	 	 	1018	 	 	 	728475	 
	11	 	Bird	 	 	1018	 	 	 	728475	 
	12	 	Brassel Fraction Lode Claim	 	 	1487	 	 	 	1159173	 
	13	 	War Baby No. One Claim	 	 	1487	 	 	 	1159173	 
	14	 	War Baby No. Two (2) Lode Claim	 	 	1487	 	 	 	1159173	 
	15	 	War Baby No. 3 Lode Claim	 	 	1487	 	 	 	1159173	 
	16	 	War Baby No. 4 Lode Claim	 	 	1487	 	 	 	1159173	 
	17	 	Lucky Shot Lode Claim No. 1	 	 	1487	 	 	 	1159173	 
	18	 	Lucky Shot Lode Claim No. 2	 	 	1487	 	 	 	1159173	 
	19	 	Lucky Shot Lode Claim No. 3	 	 	1487	 	 	 	1159173	 
	20	 	Luck Shot No. 5 Load Claim	 	 	1487	 	 	 	1159173	 
	21	 	War Eagle Fraction Claim	 	 	1487	 	 	 	1159173	 
	22	 	War Eagle No. 1	 	 	1487	 	 	 	1159173	 
	23	 	War Eagle No. 2	 	 	1487	 	 	 	1159173	 
	24	 	War Eagle No. 3	 	 	1487	 	 	 	1159173	 
	25	 	Lucky Shot Lode Claim	 	 	1487	 	 	 	1159173	 
	26	 	Mary	 	 	2047	 	 	 	1127290	 
	27	 	Black King No. 2	 	 	2094	 	 	 	1128877	 
	28	 	Black King No. 3	 	 	2094	 	 	 	1128877	 
	29	 	Black King No. 4	 	 	2094	 	 	 	1128877	 
	30	 	Ready Bullion	 	 	2094	 	 	 	1128877	 
	31	 	Ready Bullion No. 1	 	 	2094	 	 	 	1128877	 
	32	 	Ready Bullion No. 2	 	 	2094	 	 	 	1128877	 
	33	 	Ready Bullion Fraction	 	 	2094	 	 	 	1128877	 
	34	 	Early Cash	 	 	2094	 	 	 	1128877	 
	35	 	Early Cash No. 1	 	 	2094	 	 	 	1128877	 
	36	 	Lucky Gold Fraction	 	 	2094	 	 	 	1128877	 
	37	 	Taylor Claim	 	 	2186A		 	 	1159173	 
	38	 	Wilson Lode Claim	 	 	2186A		 	 	1159173	 

 

    	EXHIBIT A – DESCRIPTION OF THE CLAIMS: Page 1

    	 

    

 

	39	 	Madison Claim	 	 	2186	A	 	 	1159173	 
	40	 	Coolidge Lode Claim	 	 	2186	A	 	 	1159173	 
	41	 	War Eagle No. 4 Claim	 	 	2186	A	 	 	1159173	 
	42	 	War Eagle No. 5 Claim	 	 	2186	A	 	 	1159173	 
	43	 	War Eagle No. 6 Claim	 	 	2187	A	 	 	1159173	 

 

The
State Claims

 

	 	 	Name	 	ADL#	 	 	Meridian,
    Township, Range, Section, Section/4
	1	 	LS 1	 	 	645931	 	 	S 20N 01W	 	 	34	 	 	SE
	2	 	LS 2	 	 	645932	 	 	S 20N 01W	 	 	35	 	 	SW
	3	 	LS 3	 	 	645933	 	 	S 20N 01W	 	 	35	 	 	SE
	4	 	LS 4	 	 	645934	 	 	S 20N 01W	 	 	36	 	 	SW
	5	 	LS 5	 	 	645935	 	 	S 20N 01W	 	 	36	 	 	SE
	6	 	LS 6	 	 	645936	 	 	S 20N 01E	 	 	31	 	 	SW
	7	 	LS 7	 	 	645937	 	 	S 20N 01E	 	 	31	 	 	SE
	8	 	LS 9	 	 	645939	 	 	S 20N 01E	 	 	32	 	 	NW
	9	 	LS 10	 	 	645940	 	 	S 20N 01E	 	 	31	 	 	NE
	10	 	LS 11	 	 	645941	 	 	S 20N 01E	 	 	31	 	 	NW
	11	 	LS 12	 	 	645942	 	 	S 20N 01W	 	 	36	 	 	NE
	12	 	LS 13	 	 	645943	 	 	S 20N 01W	 	 	36	 	 	NW
	13	 	LS 14	 	 	645944	 	 	S 20N 01W	 	 	35	 	 	NE
	14	 	LS 15	 	 	645945	 	 	S 20N 01W	 	 	35	 	 	NW
	15	 	LS 16	 	 	645946	 	 	S 20N 01W	 	 	34	 	 	NE
	16	 	LS 17	 	 	645947	 	 	S 20N 01W	 	 	25	 	 	SE
	17	 	LS 18	 	 	645948	 	 	S 20N 01E	 	 	30	 	 	SW
	18	 	LS 19	 	 	645949	 	 	S 20N 01E	 	 	30	 	 	SE
	19	 	LS 23	 	 	645953	 	 	S 20N 01E	 	 	29	 	 	NW
	20	 	LS 24	 	 	645954	 	 	S 20N 01E	 	 	30	 	 	NE
	21	 	LS 25	 	 	645955	 	 	S 20N 01E	 	 	19	 	 	SE
	22	 	LS 26	 	 	645956	 	 	S 20N 01E	 	 	20	 	 	SW
	23	 	LS 27	 	 	645957	 	 	S 20N 01E	 	 	20	 	 	SE
	24	 	LS 28	 	 	650112	 	 	S 20N 01W	 	 	33	 	 	SE
	25	 	LS 29	 	 	650113	 	 	S 20N 01W	 	 	34	 	 	SW
	26	 	LS 30	 	 	650114	 	 	S 20N 01W	 	 	34	 	 	NW
	27	 	LS 31	 	 	650833	 	 	S 19N 01W	 	 	5	 	 	NE
	28	 	LS 32	 	 	650834	 	 	S 19N 01W	 	 	4	 	 	NW
	29	 	LS 33	 	 	650835	 	 	S 19N 01W	 	 	4	 	 	NE
	30	 	LS 34	 	 	650836	 	 	S 19N 01W	 	 	3	 	 	NW
	31	 	LS 35	 	 	650837	 	 	S 20N 01W	 	 	33	 	 	SW
	32	 	LS 36	 	 	650838	 	 	S 20N 01W	 	 	32	 	 	SE
	33	 	LS 37	 	 	650839	 	 	S 20N 01W	 	 	33	 	 	NE
	34	 	LS 38	 	 	650840	 	 	S 20N 01W	 	 	33	 	 	NW
	35	 	LS 39	 	 	650841	 	 	S 20N 01W	 	 	33	 	 	NE
	36	 	LS 40	 	 	650842	 	 	S 20N 01W	 	 	27	 	 	SE
	37	 	LS 41	 	 	650843	 	 	S 20N 01W	 	 	27	 	 	SW
	38	 	LS 42	 	 	650844	 	 	S 20N 01W	 	 	28	 	 	SE

 

    	EXHIBIT A – DESCRIPTION OF THE CLAIMS: Page 2

    	 

    

 

	39	 	LS 43	 	 	650845	 	 	S 20N 01W	 	 	28	 	 	SW
	40	 	LS 44	 	 	650846	 	 	S 20N 01W	 	 	29	 	 	SE
	41	 	LS 45	 	 	650847	 	 	S 20N 01W	 	 	28	 	 	NW
	42	 	LS 46	 	 	650848	 	 	S 20N 01W	 	 	28	 	 	NE
	43	 	LS 47	 	 	650849	 	 	S 20N 01W	 	 	27	 	 	NW
	44	 	LS 48	 	 	650850	 	 	S 20N 01W	 	 	27	 	 	NE
	45	 	LS 49	 	 	650851	 	 	S 20N 01W	 	 	26	 	 	NW
	46	 	LS 50	 	 	650852	 	 	S 20N 01W	 	 	26	 	 	NE
	47	 	LS 51	 	 	650853	 	 	S 20N 01W	 	 	25	 	 	NW
	48	 	LS 53	 	 	650855	 	 	S 20N 01E	 	 	30	 	 	NW
	49	 	LS 54	 	 	651699	 	 	S 19N 01W	 	 	3	 	 	NE
	50	 	LS 55	 	 	651700	 	 	S 19N 01W	 	 	2	 	 	NW
	51	 	LS 56	 	 	651701	 	 	S 19N 01W	 	 	2	 	 	NE
	52	 	LS 57	 	 	656100	 	 	S 19N 01W	 	 	1	 	 	NW
	53	 	LS 58	 	 	656101	 	 	S 19N 01W	 	 	1	 	 	NE
	54	 	LS 59	 	 	656102	 	 	S 19N 01E	 	 	6	 	 	NW
	55	 	LS 60	 	 	656103	 	 	S 19N 01E	 	 	6	 	 	NE
	56	 	LS 61	 	 	656104	 	 	S 19N 01W	 	 	3	 	 	SE
	57	 	LS 62	 	 	656105	 	 	S 19N 01W	 	 	2	 	 	SW
	58	 	LS 63	 	 	656106	 	 	S 19N 01W	 	 	2	 	 	SW

 

DESCRIPTION
OF THE PLANT SITE

 

Government
Lot 5, Sec. 18, T.20, R.4 W

 

    	EXHIBIT A – DESCRIPTION OF THE CLAIMS: Page 3

    	 

    

 

CLAIMS
MAP

 

 

    	EXHIBIT A – DESCRIPTION OF THE CLAIMS: Page 4

    	 

    

 

EXHIBIT
B

 

ACCOUNTING
PROCEDURE

 

This
Exhibit B sets forth the financial and accounting procedures to be followed by the Manager and the Members under the Agreement.

 

ARTICLE
I

GENERAL
PROVISIONS

 

1.1
General Accounting Records. The Manager shall maintain detailed and comprehensive cost accounting records in accordance
with this Accounting Procedure, including general ledgers, supporting and subsidiary journals, invoices, checks and other customary
documentation, sufficient to provide a record of revenues and expenditures and periodic statements of financial position and the
results of operations for managerial, tax, regulatory or other financial reporting purposes. Such records shall be retained for
the duration of the period allowed the Members for audit or the period necessary to comply with tax or other regulatory requirements.
The records shall reflect all obligations, advances and credits of the Members. 

 

1.2
Bank Accounts. The Manager shall maintain one (1) or more separate bank accounts for the payment of all expenses and
the deposit of all cash receipts for the Company. 

 

1.3
Statements and Billings. The Manager shall prepare statements and bill the Members as provided in the Agreement. Payment
of any billing by a Member (including the Manager) shall not prejudice such Member’s right to protest or question the correctness
thereof for up to twenty-four (24) months after the date the billing was received by the Member. Subject to Section 6.13
of the Agreement, all written exceptions to and claims upon the Manager for incorrect charges, billings or statements shall be
made upon the Manager within such twenty-four (24) month period. The time period permitted for adjustments hereunder shall not
apply to adjustments resulting from periodic inventories as provided in Article V. 

 

ARTICLE
II

CHARGES
TO BUSINESS ACCOUNT

 

Subject
to the limitations contained in this Accounting Procedure, the Manager shall charge the Business Account with the costs, expenditures
and other charges described in this Article II. 

 

2.1
Rentals, Royalties and Other Payments. All property acquisition and holding costs, including claim maintenance fees,
filing fees, license fees, costs of permits and assessment work, delay rentals, production royalties, including any required advances,
and all other payments made by the Manager which are necessary to acquire or maintain title to the Assets. 

 

2.2
Labor and Employee Benefits. 

 

(a)
 Salaries and Wages. Salaries and wages of the Company’s or the Manager’s employees directly engaged in Operations,
including salaries or wages of employees who are temporarily assigned to and directly employed by same. 

 

    	EXHIBIT B – ACCOUNTING PROCEDURE: Page 1

    	 

    

 

(b)
 Benefits. The Manager’s or the Company’s, as applicable, cost of holiday, vacation, sickness and disability
benefits, and other customary allowances applicable to the salaries and wages chargeable under Sections 2.2(a) and 2.12.
Such costs may be charged on a “when and as paid basis” or by “percentage assessment’ on the amount of
salaries and wages. If percentage assessment is used, the rate shall be applied to wages or salaries excluding overtime and bonuses.
Such rate shall be based on the Manager’s or the Company’s, as applicable, cost experience and it shall be periodically
adjusted at least annually to ensure that the total of such charges does not exceed the actual cost thereof to the Manager or
the Company, as applicable. 

 

(c)
 Benefit Plans. The Manager’s or the Company’s, as applicable, actual cost of established plans for employees’
group life insurance, hospitalization, pension, retirement, stock purchase, thrift, bonus (except production or incentive bonus
plans under a union contract based on actual rates of production, cost savings and other production factors, and similar non-union
bonus plans customary in the industry or necessary to attract competent employees, which bonus payments shall be considered salaries
and wages under Sections 2.2(a) or 2.12 rather than benefit plans) and other benefit plans of a like nature applicable
to salaries and wages chargeable under Sections 2.2(a) or 2.12; provided, that the plans are limited to the
extent feasible to those customary in the industry. 

 

(d)
 Employment Assessments. Cost of assessments imposed by any Governmental Authority that are applicable to salaries and wages
chargeable under Sections 2.2(a) and 2.12, including all penalties except those resulting from the willful misconduct
or gross negligence of the Manager. 

 

2.3
Materials, Equipment and Supplies. The cost of materials, equipment and supplies (“Material”) purchased
from unaffiliated third parties or furnished by the Manager or any Member as provided in Article III. The Manager shall
purchase or furnish only so much Material as may be required for immediate use in efficient and economical Operations. The Manager
shall also maintain inventory levels of Material at reasonable levels to avoid unnecessary accumulation of surplus stock. 

 

2.4
Equipment and Facilities Furnished by Manager. The cost of machinery, equipment and facilities owned by the Manager
and used in Operations or used to provide support or utility services to Operations charged at rates commensurate with the actual
costs of ownership and operation of such machinery, equipment and facilities. Such rates shall include costs of maintenance, repairs,
other operating expenses, insurance, taxes, depreciation and interest at a rate not to exceed eight percent (8.0%) per annum.
Such rates shall not exceed the average commercial rates currently prevailing in the vicinity of the Operations. 

 

2.5
Transportation. Reasonable transportation costs incurred in connection with the transportation of employees and material
necessary for the Operations. 

 

    	EXHIBIT B – ACCOUNTING PROCEDURE: Page 2

    	 

    

 

2.6
Contract Services and Utilities. The cost of contract services and utilities procured from outside sources, other than
services described in Sections 2.9 and 2.13. If contract services are performed by the Manager or an Affiliate of
the Manager, the cost charged to the Business Account shall not be greater than that for which comparable services and utilities
are available in the open market within the vicinity of the Operations. The cost of professional consultant services procured
from outside sources in excess of Fifty Thousand and 00/100 United States Dollars (USD$50,000.00) shall not be charged to the
Business Account unless approved by the Management Committee. 

 

2.7
Insurance Premiums. Net premiums paid for insurance are required to be carried for Operations for the protection of
the Manager and the Members. When the Operations are conducted in an area where the Manager or the Company, as applicable, may
self-insure for Workmen’s Compensation and/or Employer’s Liability under state law, the Manager may elect to include
such risks in its self-insurance program and shall charge its costs or the Company’s costs, as applicable, of self-insuring
such risks to the Business Account provided that such charges shall not exceed published manual rates. 

 

2.8
Damages and Losses. All costs in excess of insurance proceeds necessary to repair or replace damages or losses to any
Assets resulting from any cause other than the willful misconduct or gross negligence of the Manager. The Manager shall furnish
the Management Committee with written notice of damages or losses as soon as practicable after a report of such damages or losses
has been received by the Manager. 

 

2.9
Legal and Regulatory Expense. Except as otherwise provided in Section 2.13, all legal and regulatory costs and
expenses incurred in or resulting from the Operations or necessary to protect or recover the Assets of the Company. All attorney’s
fees and other legal costs to handle, investigate and settle litigation or claims, including the cost of legal services provided
by the Manager’s legal staff, and amounts paid in settlement of such litigation or claims in excess of Fifty Thousand and
00/100 United States Dollars (USD$50,000.00) shall not be charged to the Business Account unless approved by the Management Committee.

 

2.10
Audit. Cost of annual audits under Section 6.13 of the Agreement if requested by a Member. 

 

2.11
Taxes. All Taxes (except income Taxes and similar Taxes measured based on the income of a Member) of every kind and
nature assessed or levied upon or in connection with the Assets, the production of Products or Operations. 

 

2.12
District and Camp Expense (Field Supervision and Camp Expenses). A pro rata portion of: (a) the salaries and
expenses of the Manager’s superintendent and other employees serving Operations whose time is not allocated directly to
such Operations; (b) the costs of maintaining and operating an office (the “Manager’s Project Office”)
and any necessary sub-office; and (c) all necessary camps, including housing facilities for employees, used for Operations. The
expense of those facilities, less any revenue therefrom, shall include depreciation or a fair monthly rental in lieu of depreciation
of the investment. The total of such charges for all properties served by the Manager’s employees and facilities shall be
apportioned to the Business Account on the basis of a ratio, the numerator of which is the direct labor costs of the Operations
and the denominator of which is the total direct labor costs incurred for all activities served by the Manager. 

 

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2.13
Administrative Charge. 

 

(a)
Each month, the Manager shall charge the Business Account the sum of two percent (2%) (the “Administrative Charge”)
of Allowable Costs for all phases of Operations, which shall be a liquidated amount to reimburse the Manager for its home office
overhead and general and administrative expenses to conduct Operations, and which shall be in lieu of any management fee. 

 

(b)
“Allowable Costs,” as used in this Section 2.13 for Operations, shall mean all charges to the Business
Account excluding (i) the Administrative Charge; (ii) depreciation, depletion or amortization of tangible or intangible assets;
and (iii) amounts charged in accordance with Sections 2.1 and 2.9.

 

(c)
The monthly Administration Charge determined for Operations shall be equitably apportioned among the Properties and all other
properties served by the Manager during each monthly period on the basis of a ratio, the numerator of which shall equal the direct
labor costs charged to a particular property, and the denominator of which shall equal the total direct labor costs incurred for
the Properties and all other properties served by the Manager. 

 

(d)
The Administrative Charge shall be a liquidated amount (in lieu of a separate management fee) to reimburse the Manager for its
home office overhead and general and administrative expenses to conduct Operations, including the following principal business
office expenses that are expressly covered by the Administrative Charge:

 

(i)
Administrative supervision, including services rendered by managers, department supervisors, officers and directors of the Manager
for Operations, except to the extent that such services represent a direct charge to the Business Account, as provided in Section
2.2; 

 

(ii)
Accounting, data processing, personnel administration, billing and record keeping in accordance with governmental regulations
and the provisions of the Agreement, and preparation of reports; 

 

(iii)
The services of tax counsel and tax administration employees for all tax matters, including any protests, except any outside professional
fees which the Management Committee may approve as a direct charge to the Business Account; 

 

(iv)
Routine legal services rendered by outside sources and the Manager’s legal staff not otherwise charged to the Business Account
under Section 2.9; and 

 

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(v)
Rentals and other charges for office and records storage space, telephone service, office equipment and supplies. 

 

(e)
 The Management Committee shall annually review the Administration Charge and shall amend the methodology or rates used to determine
the Administrative Charge if the same is found to be insufficient or excessive. 

 

2.14
Environmental Compliance Fund. Costs of reasonably anticipated Environmental Compliance which, on a Program basis,
shall be determined by the Management Committee and shall be based on proportionate contributions in an amount sufficient to establish
a fund (the “Environmental Compliance Fund”) which, through successive proportionate contributions during the
life of the Company, will pay for ongoing Environmental Compliance conducted during Operations and that will aggregate the reasonably
anticipated costs of mine closure, post-Operations Environmental Compliance and Continuing Obligations. The Manager shall invest
such amounts on behalf of the Members as provided in subsection 5.3(p) of the Agreement.

 

2.15
Other Expenditures. Any reasonable direct expenditure, other than expenditures which are covered by the foregoing provisions,
incurred by the Manager for the necessary and proper conduct of Operations. The term “reasonable” shall be
defined as “fair, proper or moderate under the circumstances.” 

 

ARTICLE
III

BASIS
OF CHARGES TO BUSINESS ACCOUNT

 

3.1
Purchases. Material purchased and services procured from third parties shall be charged to the Business Account by
the Manager at invoiced cost, including applicable transfer Taxes, less all discounts taken. If any Material is determined to
be defective or is returned to a vendor for any other reason, the Manager shall credit the Business Account when an adjustment
is received from the vendor. 

 

3.2
Material Furnished by the Manager or a Member. Any Material furnished by the Manager or any Member from its stocks
or distributed to either Member by the Company shall be priced on the following basis: 

 

(a)
 New Material. New Material transferred from the Manager or a Member shall be priced F.O.B. the nearest reputable supply
store or railway receiving point, where similar Material is available, at the current replacement cost of the same kind of Material,
exclusive of any available cash discounts, at the time of the transfer (the “New Price”). 

 

(b)
 Used Material.

 

(i)
 Used Material in sound and serviceable condition and suitable for reuse without reconditioning shall be priced as follows: 

 

(A)
 Used Material transferred by the Manager or a Member shall be priced at seventy-five percent (75%) of the New Price; 

 

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(B)
 Used Material distributed to either Member shall be priced: (I) at seventy-five percent (75%) of the New Price for such Material,
if such Material was originally charged to the Business Account as new Material; or (II) at sixty-five percent (65%) of the New
Price for such Material, if such Material was originally charged to the Business Account as good used Material at seventy-five
percent (75%) of the New Price. 

 

(ii)
 Other used Material that, after reconditioning will be further serviceable for original function as good secondhand Material,
or that is serviceable for original function but not substantially suitable for reconditioning, shall be priced at fifty percent
(50%) of the New Price. The cost of any reconditioning shall be borne by the transferee, provided such total cost of the used
Material plus the reconditioning cost does not exceed sixty-five percent (65%) of the New Price. 

 

(iii)
 All other Material, including junk, shall be priced at a value commensurate with its use or at prevailing prices. Material no
longer suitable for its original purpose but usable for some other purpose shall be priced on a basis comparable with items normally
used for such other purposes. 

 

(c)
 Obsolete Material. Any Material that is serviceable and usable for its original function, but its condition is not sufficient
to justify a price as provided above shall be priced by the Management Committee. Such price shall be set at a level that will
result in a charge to the Business Account equal to the value of the service to be rendered by such Material. 

 

3.3
Premium Prices. Whenever Material is not readily obtainable at published or listed prices because of national emergencies,
strikes or other unusual circumstances over which the Manager has no control, the Manager may charge the Business Account for
the required Material on the basis of the Manager’s direct cost and expenses incurred in procuring such Material and making
it suitable for use. The Manager shall give Notice of the proposed charge to the Company prior to the time when such charge is
to be billed to the Members, whereupon any Member shall have the right, by providing its own Notice to the Manager within ten
(10) days of the delivery of the Notice from the Manager, to furnish at the usual receiving point all or part of its proportionate
share, based on the percentage of its Interest, of Material suitable for use and acceptable to the Manager. 

 

3.4
Warranty of Material Furnished by the Manager or Members. Neither the Manager nor any Member warrants the Material
furnished beyond any dealer’s or manufacturer’s warranty and no credits shall be made to the Business Account for
defective Material until adjustments are received by the Manager from the dealer, manufacturer or their respective agents. 

 

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ARTICLE
IV

DISPOSAL
OF MATERIAL

 

4.1
Disposition Generally. The Manager shall have no obligation to purchase any surplus Material from the Company. The
Management Committee shall determine the disposition of major items of surplus Material; provided, the Manager shall have
the right to dispose of normal accumulations of junk and scrap Material either by sale or by distributing such Material to the
Members as provided in Section 4.2.

 

4.2
Distribution to Members. Any Material to be distributed to the Members shall be made proportionately, based on the
percentage of its Interest, and corresponding credits shall be made to the Business Account on the basis provided in Section
3.2. 

 

4.3
Sales. Sales of Material to third parties shall be credited to the Business Account at the net amount received. Any
damages or claims by the applicable purchaser shall be charged back to the Business Account if and when paid.

 

ARTICLE
V

INVENTORIES

 

5.1
Periodic Inventories, Notice and Representations. At reasonable intervals, and at least at the end of each fiscal quarter
and at the fiscal year-end, physical inventories shall be taken by the Manager, which shall include all such Material as is ordinarily
considered controllable by operators of mining properties. The expense of conducting such periodic physical inventories shall
be charged to the Business Account. The Manager shall give Notice to the Members of its intent to take any physical inventory
at least thirty (30) days before such physical inventory is scheduled to occur. A Member shall be deemed to have accepted the
results of any physical inventory taken by the Manager if the Member fails to be represented at the taking of such physical inventory.

 

5.2
Reconciliation and Adjustment of Inventories. Reconciliation of inventory with charges to the Business Account shall
be made, and a list of overages and shortages shall be furnished to the Management Committee within six (6) months after the inventory
is taken. Inventory adjustments shall be made by the Manager to the Business Account for overages and shortages, but the Manager
shall be held accountable to the Company only for shortages due to lack of reasonable diligence. 

 

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EXHIBIT
C

 

Tax
Matters

 

This
Exhibit C shall govern the relationship of the Members and the Company with respect to tax matters and the other
matters addressed in this Exhibit C.

 

Article
I

TAX REPORTING MEMBER AND TAX AUDITS

 

1.1
Designation of Tax Reporting Member. The Manager is designated the initial tax reporting member of the Company (the
“Tax Reporting Member”). Any successor TMP shall be designated by the Management Committee. The Tax
Reporting Member shall be responsible for, make elections for, and prepare and file any federal and state tax returns or other
required tax forms after approval of the Management Committee. If the Manager resigns or is removed, the Member serving as the
Manager at the end of a taxable year shall continue as Tax Reporting Member with respect to all matters concerning that year.
The Members shall furnish the Tax Reporting Member, within two weeks from the receipt of the request, the information the Reporting
Member may reasonably request to comply with the requirements on furnishing information to the Internal Revenue Service.

 

1.2
Tax Audits under the TEFRA Rules. This Section 1.2 shall apply with respect to
taxable years of the Company that are not subject to the provisions related to partnership audits enacted in the Bipartisan Budget
Act of 2015 (P.L. 114-74) (such rules, as may be amended from time to time, the “Revised Partnership Audit Rules”).
References in this Section 1.2 to Code sections are to provisions of Subchapter C of Chapter 63 of Subtitle A as in effect
prior to the Revised Partnership Audit Rules (the “TEFRA Rules”).

 

(a)
Selection of the Tax Matters Partner. If the Company does not qualify for the “small partnership exception”
from the TEFRA Rules, or if the Company elects to be subject to the TEFRA rules, the Tax Reporting Member shall be the “tax
matters partner” as defined section 6231(a)(7) of the Code (the “TMP”),
unless the TMP for that year is required to be changed under applicable Treasury Regulations. The TMP and the other Members shall
use reasonable best efforts to comply with their responsibilities under this Article I and under sections 6221 through
6233 of the Code and the related Treasury Regulations, and in doing so shall incur no liability to the Company or any Member.

 

(b)
Information. Each Member shall furnish the TMP with information (including information specified in section 6230(e)
of the Code) reasonably requested by the TMP to provide the Internal Revenue Service with sufficient information to allow
proper notice to the Members under section 6223 of the Code. The TMP shall keep each Member reasonably informed of all
administrative and judicial proceedings for the adjustment at the partnership level of partnership items under section 6223(g)
of the Code.

 

(c)
Inconsistent Treatment of Tax Items. If an administrative proceeding under section 6223 of the Code begins, upon
the request of the TMP, each Member promptly shall notify the TMP of the treatment by such Member of any partnership item on such
Member’s federal income tax return that is inconsistent with the treatment of such item on the partnership return of the
Company.

 

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(d)
Extensions of Limitation Periods. The TMP shall not extend the period of limitations under section 6229 of the Code
without the prior approval of the Management Committee.

 

(e)
Requests for Administrative Adjustments. No Member shall file a request for an administrative adjustment of partnership
items under section 6227 of the Code without first providing notice to the other Members. If the other Members consent
to the filing within thirty (30) days after the notice (or such shorter period as may be required to timely file the request),
the TMP shall file the request on behalf of the Company. If the other Members do not consent to the filing within the thirty (30)
day or shorter period, then any Member, including the TMP, may file the request on its own behalf.

 

(f)
Judicial Proceedings. If any Member intends to file a petition under section 6226, section 6228 or any other
section of the Code with respect to any partnership item, or other tax matter involving the Company, the Member shall notify the
other Members of its intention and the nature of the contemplated proceeding. If the TMP is the Member intending to file the petition,
the notice shall be given within a reasonable time to allow all of the Members to agree on the forum where the petition will be
filed. If all of the Members do not agree on the forum, then the forum shall be decided by the Management Committee. If a deadlock
results, the TMP shall choose the forum. If any Member intends to seek review of any court decision rendered under a proceeding
initiated under this Section 1.2, the Member shall notify the other Members of its intended action.

 

(g)
Settlements. The TMP shall not bind the other Members to a settlement agreement without the written consent of all of the
other Members. Any Member that enters into a settlement agreement for its own account with respect to any partnership item, as
defined under section 6231(a)(3) of the Code, shall notify the other Members of the terms of the settlement agreement within
ninety (90) days after the date of the settlement.

 

1.3
Tax Audits under the Revised Partnership Audit Rules. This Section 1.3 shall
apply with respect to taxable years of the Company that are subject to the Revised Partnership Audit Rules. References in this
Section 1.3 to Code sections are to provisions of Subchapter C of Chapter 63 of Subtitle A as amended by the Revised Partnership
Audit Rules.

 

(a)
Election to be Excluded from Partnership Audit Rules. The Company shall, to the extent permitted by law, make the election
provided by Code section 6221(b) to be excluded from the provisions of Subchapter C of Chapter 63 of Subtitle A, unless
the Tax Reporting Member receives prior unanimous written consent of the Members not to make such election.

 

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(b)
Selection of Partnership Representative. Unless the Company qualifies for and properly makes the election described in
Section 1.3(a), the Tax Reporting Member shall be the “partnership representative” as defined in Code section
6223(a) (the “Partnership Representative”).

 

(c)
Information Regarding Audits. The Partnership Representative shall give notice to all Members, including past Members of
the Company, of any audit, administrative or judicial proceeds, meeting or conferences with the Internal Revenue Service or other
similar matters that come to its attention, and give status reports regarding any negotiations between any taxing authority and
the Company. Each Member shall furnish the Partnership Representative with information reasonably requested by the Partnership
Representative in order to carry out its responsibilities as Partnership Representative.

 

(d)
Settlements. The Partnership Representative shall not enter into a settlement of a Tax audit or controversy, or file an
administrative adjustment request, that (in either case) would likely materially and adversely affect a Member without such Member’s
prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(e)
Imputed Underpayments. If an audit results in an imputed underpayment by the Company as determined under section 6225
of the Code, the Partnership Representative shall make the election under section 6226(a) of the Code to the extent
permitted by law for any adjustments to the Members’ distributive share of income, gain, loss, deduction or credit be “pushed-out”
to the Members for the reviewed year through the issuance of adjusted Schedule K-1s within forty-five (45) days after the date
of the notice of final partnership adjustment. If such an election is made, the Company shall furnish to each Member for the year
under audit a statement reflecting the Member’s share of the adjusted items as determined in the notice of final partnership
adjustment, and each such Member shall take such adjustment into account as required under section 6226(b) of the Code
and shall be liable for any related interest, penalty, addition to tax, or additional amount. If such an election is not permitted
by law, each Member (and former Party) shall, if agreed to by the Member (and former Members), which agreement shall not be unreasonably
withheld, conditioned or delayed, file amended returns under section 6225(c)(2) of the Code and pay any tax due thereon.

 

(f)
Company Tax Liabilities. Subject to and after application of Section 1.3(e), if the Company becomes liable for an
adjustment in respect of the distributive share of a Member (or a former Member) under Code section 6225 (an “Adjustment
Liability”), the Member (or former Member) in question shall immediately pay to the
Partnership Representative on behalf of the Company an amount of cash equal to the amount of such Adjustment Liability, which
the Partnership Representative shall use to satisfy the Adjustment Liability on behalf of the Company. The amount of the Adjustment
Liability paid by a Member (or former Member) shall not be treated as a capital contribution for purposes of the Agreement and
the associated remittance to the taxing authority shall not be treated as a distribution for purposes of this Agreement. If the
Adjustment Liability paid by a Member (or former Member) results from an adjustment that reflects a reduction in the distributive
share of income, or an increase in the distributive share of loss, allocable to another Member (or former Member), the Partnership
Representative shall endeavor, to the extent reasonably feasible, to provide the benefit of such reduction to such other Member
(or former Member) without imposing any additional liability on or otherwise prejudicing any other Member (or former Member) or
its owners.

 

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1.4
Fees and Expenses. The TMP and the Partnership Representative shall not engage legal
counsel, certified public accountants, or others on behalf of the Company without the prior approval of the Management Committee.
Any Member may engage legal counsel, certified public accountants, or others on its own behalf at its sole cost and expense. Any
reasonable item of expense, including fees and expenses for legal counsel, certified public accountants, and others incurred by
the TMP or the Partnership Representative (after approval of the Management Committee as provided above) in connection with any
audit, assessment, litigation or other proceeding relating to any partnership item, shall constitute a proper charge to the Business
Account.

 

1.5
Survival. The provisions of this Article I shall survive the termination of the Company or the termination of
any Member’s interest in the Company, and shall remain binding on the Members for the period of time necessary to resolve
with the Internal Revenue Service or the Department of the Treasury any and all matters regarding the federal income taxation
of the Company for the applicable tax years.

 

Article
II

PARTNERSHIP TAX STATUS; TAX ELECTIONS

 

2.1
Partnership Tax Status. The Members intend to create a partnership for United States federal and state income tax purposes,
and, unless otherwise agreed by all of the Members, no Member shall take any action to change the status of the Company as a partnership
under Treasury Regulations section 1.7701-3 or similar provision of state Law; provided, however, that nothing in this
Agreement shall be deemed to create a partnership for any other purpose. The Manager shall file with the appropriate office of
the Internal Revenue Service a return of partnership income for the Company (Form 1065), and file with the appropriate offices
of state agencies any required partnership state income tax or informational returns. Each Member shall furnish to the Manager
any information it may have relating to the Company or Operations as shall be required for the proper preparation of these returns.
The Manager shall furnish to the other Members for their review and comment a copy of each proposed income tax return (including
all schedules and supporting work papers) at least two weeks before the date the return is filed. The Manager shall promptly provide
to the Members all information reasonably requested by any Member to calculate estimated tax payments and prepare tax return extensions.

 

2.2
Tax Elections.

 

(a)
Required Company Elections. The Company shall make the following elections for all partnership income tax returns:

 

(i)
to use the accrual method of accounting;

 

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(ii)
to use as its taxable year the calendar year ending December 31 (and each Member represents for this purpose that its taxable
year ends on December 31) or such other fiscal year as appropriate in accordance with section 706(b) of the Code;

 

(iii)
to deduct currently all development expenses to the extent possible under section 616(a) of the Code or, at the election
of the Management Committee, to defer such expenses under section 616(b) of the Code;

 

(iv)
unless the Members unanimously agree otherwise, to compute the allowance for depreciation for all depreciable Assets using the
one hundred fifty percent (150%) declining balance method and the shortest life permissible or, at the election of the Manager,
using the units of production method of depreciation;

 

(v)
to treat advance royalties as deductions from gross income for the year paid or accrued to the extent permitted by Law;

 

(vi)
to make an election to adjust the basis of Company property with respect to a Member under section 754 of the Code at the
request of the Member; and

 

(vii)
to amortize over the shortest permissible period all organizational expenditures and business start-up expenses under sections
195 and 709 of the Code.

 

(b)
Other Company Elections. Except as provided in Section 2.2(a), elections required or permitted to be made by the
Company under the Code or any state tax law shall be made as determined by the Management Committee.

 

(c)
Member Elections. Each Member shall elect under section 617(a) of the Code to deduct currently all exploration expenses.
Each Member reserves the right to capitalize its share of development and exploration expenses of the Company in accordance with
section 59(e) of the Code, provided that a Member’s election to capitalize all or any portion of these expenses shall
not affect the Member’s Capital Account.

 

Article
III

ALLOCATIONS OF PrOFITS AND LOSSES

 

3.1
In General. This Article III provides for the allocation among the Members of items of Profit and Loss for purposes
of crediting and debiting the Capital Accounts of the Members. Article IV provides for the allocation among the Members
of taxable income and tax losses. 

 

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3.2
Allocations to Members. Except as provided in Section 3.3, all items of Profit and Loss shall be allocated among
the Members as follows:

 

(a)
Exploration and Development Costs. Exploration expenses and development cost deductions shall be allocated among the Members
in accordance with their respective contributions to such expenses and costs.

 

(b)
Depreciation and Amortization. Depreciation and amortization deductions with respect to a depreciable Asset shall be allocated
among the Members in accordance with their respective contributions to the adjusted basis of the Asset that gives rise to the
depreciation, amortization or loss deduction.

 

(c)
Production and Operating Costs. Production and operating cost deductions shall be allocated among the Members in accordance
with their respective contributions to such costs.

 

(d)
Depletion. Depletion deductions with respect to a depletable property shall be allocated among the Members in accordance
with their respective contributions to the book value of the depletable property as determined for purposes of maintaining the
Capital Accounts.

 

(e)
Gross Income. Gross income (calculated after deduction of cost of goods sold) attributable to sales of Miranda Products
shall be allocated to Miranda. Gross income (calculated after deduction of cost of goods sold) attributable to sales of GTI Products
shall be allocated to GTI. Except as provided in Section 3.2(g), gross income on the sale of any other production shall
be allocated in accordance with Percentage Interests.

 

(f)
Sales of Depreciable or Depletable Assets. Except as provided in Section 3.2(g), items of Profit and Loss on the
sale of a depreciable or depletable asset shall be allocated so that, to the extent possible, the net amount reflected in the
Members’ Capital Account with respect to such property (taking into account the cost of such property, depreciation, amortization,
depletion or other cost recovery deductions and other items of Profit or Loss) most closely reflects the Members’ Percentage
Interests.

 

(g)
Sales of All or Substantially All Assets. Items of Profit and Loss on the sale of all or substantially all the Assets of
the Company shall be allocated so that, to the extent possible, the Members’ resulting Capital Account balances are in the
same ratio as their relative Percentage Interests (“Balance Capital Accounts”) after taking into account
the sale. In making the allocations under this Section 3.2(g), to the extent necessary to Balance Capital Accounts, Items
of Profit and Loss shall be calculated on an asset-by-asset basis, and any property contributed by a Member shall be treated as
a separate asset from the property contributed by or created with funds contributed by the other Member. If the Company does not
have sufficient items of Profit and Loss to Balance Capital Accounts, the liquidator may take other actions under Section 9.4
of the Agreement as it determines are reasonably appropriate to Balance Capital Accounts, including reallocating items among
the Members.

 

(h)
Capitalization. Expenses and deductions allocable under the preceding provisions of this Section 3.2 may be required
to be capitalized into production under section 263A of the Code, in which case the allocation of gross income on the sale
of such production shall be adjusted, in any reasonable manner consistently applied by the Manager, so that the same net amount
(subject to possible timing differences) is reflected in the Capital Accounts as if such expenses or deductions were instead deductible
and allocated under the preceding provisions of this Section 3.2.

 

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(i)
Recapture of Exploration Expenses. Any recapture of exploration expenses under section 617(b)(1)(A) of the Code,
and any disallowance of depletion under section 617(b)(1)(B) of the Code, shall be borne by the Members in the same manner
as the related exploration expenses were allocated to, or claimed by, them.

 

(j)
Other Losses. All items of Loss that are not otherwise allocated in this Section 3.2 shall be allocated among the
Members in accordance with their respective contributions to the costs producing each such deduction or to the adjusted basis
of the Asset producing each such other Loss.

 

(k)
Other Profit. All items of Profit that are not otherwise allocated in this Section 3.2 shall be allocated to the
Members in proportion to their respective Percentage Interests.

 

3.3
Regulatory Allocations. Notwithstanding Sections 3.2 and 3.5:

 

(a)
Elimination of Deficit Adjusted Capital Account Balance. If any Member unexpectedly receives any adjustments, allocations,
or distributions described in Treasury Regulations sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5)
or 1.704-1(b)(2)(ii)(d)(6) that result in a deficit balance in the Member’s Capital Account (adjusted
as provided below), items of Profit shall be specially allocated to each such Member in an amount and manner sufficient to eliminate,
to the extent required by the Treasury Regulations, the Capital Account deficit of such Member (as so adjusted) as quickly as
possible. For the purposes of this Section 3.3(a), each Member’s Capital Account balance shall be increased by the
sum of (i) the amount such Member is obligated to restore under any provision of the Agreement, and (ii) the amount such Member
is deemed to be obligated to restore under the penultimate sentences of Treasury Regulations sections 1.704-2(g)(1) and
1.704-2(i)(5).

 

(b)
Decrease in Partnership Minimum Gain. If there is a net decrease in partnership minimum gain for a taxable year of the
Company, each Member shall be allocated items of Profit for that year equal to that Member’s share of the net decrease in
partnership minimum gain, all in accordance with Treasury Regulations section 1.704-2(f). If, during a taxable year of
the Company, there is a net decrease in partner nonrecourse debt minimum gain, any Member with a share of that partner nonrecourse
debt minimum gain as of the beginning of the year shall be allocated items of Profit for the year (and, if necessary, for succeeding
years) equal to that partner’s share of the net decrease in partner nonrecourse debt minimum gain, all in accordance with
Treasury Regulations section 1.704-2(i)(4). Under Treasury Regulations section 1.704-2(i)(1), deductions attributable
to a “partner nonrecourse liability” shall be allocated to the Member that bears the economic risk of loss for such
liability (or is treated as bearing such risk).

 

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(c)
Allocations Causing Deficit Adjusted Capital Account Balance. If the allocation of deductions to either Member would cause
such Member to have a deficit Capital Account balance at the end of any taxable year of the Company (after all other allocations
provided for in this Article III have been made and after giving effect to the adjustments described in the last sentence
of Section 4.3(a)), such deductions shall instead be allocated to the other Member.

 

(d)
Partner Nonrecourse Deductions. Items of Company loss, deduction and expenditures described in section 705(a)(2)(B)
of the Code that are attributable to any nonrecourse debt of the Company and are characterized as partner nonrecourse deductions
under Treasury Regulations section 1.704-2(i) shall be allocated to the Members’ Capital Accounts in accordance with
Treasury Regulations section 1.704-2(i).

 

(e)
Basis Adjustments. To the extent that an adjustment to the adjusted tax basis of any Company asset under section 734(b)
or 743(b) of the Code is required under Treasury Regulations section 1.704-1(b)(2)(iv)(m)(2) or
section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of
a distribution to a Member in complete liquidation of its Membership Interest, the amount of the adjustment to Capital Accounts
shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases
such basis), and such gain or loss shall be specially allocated to the Members in accordance with their Percentage Interests if
Treasury Regulations section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom such distribution
was made if Treasury Regulations section 1.704-1(b)(2)(iv)(m)(4) applies.

 

3.4
Curative Allocations. The allocations in Section 3.3 (the “Regulatory Allocations”)
are intended to comply with certain requirements of the Treasury Regulations. The Members intend that, to the extent possible,
all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items
of Profit or Loss under this Section 3.4. Accordingly, notwithstanding any other provisions of this Article III
(other than the Regulatory Allocations), the Manager shall make such offsetting special allocations of items of Profit or Loss
in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Member’s Capital
Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory
Allocations were not part of this Agreement and all items were allocated under Section 3.2 without regard to Section
3.3.

 

3.5
Other Allocation Rules.

 

(a)
Determination of Profits and Losses. Items of Profit or Loss allocable to any period shall be determined on a daily, monthly,
or other basis, as determined by the Manager using any permissible method under Code section 706 and the related Treasury
Regulations.

 

    	EXHIBIT C – TAX MATTERS: Page 8

    	 

    

 

(b)
Changes in Percentage Interests. If the Members’ Percentage Interests change during any taxable year of the Company,
the distributive share of items of Profit or Loss of each Member shall be determined in any manner (i) permitted by section
706 of the Code, and (ii) determined by the Management Committee. If the Management Committee cannot agree on a method, items
of Profit and Loss shall be allocated in accordance with the interim closing-of-the-books method.

 

(c)
Certain Allocations. For purposes of this Article III, items financed through indebtedness of, or from revenues
of, the Company shall be treated as funded from contributions made by the Members to the Company in accordance with their Percentage
Interests. “Nonrecourse deductions,” as defined by Treasury Regulations section 1.704-2(b)(1) shall be
allocated among the Members in proportion to their respective Percentage Interests.

 

Article
IV

TAX ALLOCATIONS

 

4.1
Tax Allocations. Except as provided in Sections 4.2, 4.3 and 4.4, items of taxable income, deduction,
gain and loss shall be allocated in accordance with the allocations under Section 3.2 and Section 3.3 of the corresponding
item as determined for purposes of maintaining the Capital Accounts.

 

4.2
Recapture of Tax Deductions. Recapture of tax deductions arising out of a disposition of property shall, to the extent
consistent with the allocations for tax purposes of the gain or amount realized giving rise to such recapture, be allocated to
the Members in the same proportions as the recaptured deductions were originally allocated or claimed.

 

4.3
Allocation of Section 704(c) Items. To the extent required by section 704(c) of the Code, income, gain, loss,
and deduction (including depreciation, depletion and amortization), as determined for tax purposes, with respect to property contributed
to the Company by a Member and with respect to property revalued in accordance with Treasury Regulations section 1.704-1(b)(2)(iv)(f)
(collectively referred to as “Adjusted Properties”) shall be allocated among the Members so as to
take account of the variation between the adjusted tax basis of the Adjusted Property to the Company and its fair market value
at the time of contribution or revaluation in accordance with the provisions of sections 704(b) and 704(c) of the
Code. The Members intend that section 704(c) shall affect no allocations of tax items that are different from allocations
according to the principles of Section 3.2; provided that the gain or loss on the sale of property contributed to Company
shall be allocated to the contributing Member to the extent of built-in gain or loss, respectively, as determined under Treasury
Regulation section 1.704-3(a). The Members intend that the allocations provided by the preceding sentence constitute
a “reasonable method” that is consistent with the purposes of section 704(c) of the Code, within the meaning
of Treasury Regulations section 1.704-3(a)(1). However, to the extent that allocations of tax items are required under
section 704(c) of the Code to be made other than in accordance with the allocations under Sections 3.2, 3.3
and 3.4 of the corresponding items for Capital Account purposes, section 704(c) of the Code shall be applied in
accordance with the available allocation method that, in the reasonable judgment of the Manager, most closely approximates the
allocations under this Exhibit C.

 

    	EXHIBIT C – TAX MATTERS: Page 9

    	 

    

 

4.4
Depletion Deductions. Excess percentage depletion deductions with respect to depletable property shall be allocated
to the Members in accordance with the allocation of gross income from the property from which such deductions are derived. The
term “excess percentage depletion” shall mean the excess, if any, of deductions for percentage depletion as determined
for tax purposes over the adjusted basis of the depletable property. Depletion deductions with respect to contributed property
shall be determined without regard to any portion of the property’s basis that is attributable to pre-contribution expenditures
by Miranda that were capitalized under Code sections 616(b), 59(e) and 291(b). Deductions attributable to
pre-contribution expenditures by Miranda shall be calculated under such Code sections as if Miranda continued to own the depletable
property to which such deductions are attributable, and such deductions shall be reported by the Company and shall be allocated
solely to Miranda.

 

4.5
Integration With Section 754 Election. All items of income, gain, loss, deduction and credits recognized by the Company
for federal income tax purposes and allocated to the Members in accordance with the provisions hereof and all basis allocations
to the Members shall be determined without regard to any election under section 754 of the Code that may be made by the
Company; provided, however, such allocations, once made, shall be adjusted as necessary or appropriate to take into account
the adjustments permitted by sections 734 and 743 of the Code.

 

4.6
Allocation of Tax Credits. The tax credits, if any, with respect to the Company’s property or operations shall
be allocated among the Members in accordance with Treasury Regulations section 1.704-1(b)(4)(ii).

 

Article
V

CAPITAL ACCOUNTS

 

5.1
Capital Accounts. The Manager shall maintain a separate capital account for each Member
and such other Member accounts as may be necessary or desirable to comply with the requirements of applicable Laws (“Capital
Accounts”).

 

(a)
Maintenance of Capital Accounts. Each Member’s Capital Account shall be maintained in accordance with the provisions
of Treasury Regulations section 1.704-1(b)(2)(iv).

 

(b)
Book—Tax Difference. If the Capital Accounts of the Members are computed with reference to the book value of any
Asset that is different than the adjusted tax basis of the Asset, then the Capital Accounts of the Members shall be adjusted for
depreciation, depletion, amortization and gain or loss as computed for book purposes with respect to the Asset under Treasury
Regulations section 1.704-1(b)(2)(iv)(g). The amount of book depreciation, depletion, or amortization for a period
with respect to an item of property of the Company shall be the amount that bears the same relationship to the book value of such
property (as determined for purposes of maintaining Capital Accounts) as the depreciation (or cost recovery deduction), depletion,
or amortization computed for tax purposes with respect to such property for such period bears to the adjusted tax basis of such
property; provided that, if such property has a zero adjusted tax basis, the book depreciation, depletion, or amortization may
be determined under any reasonable method selected by the Management Committee; and provided further that the amount of book depletion
with respect to a depletable property shall not exceed the book value of such property (as determined for purposes of maintaining
the Capital Accounts).

 

    	EXHIBIT C – TAX MATTERS: Page 10

    	 

    

 

(c)
Transfer of Interest. If any interest in the Company is Transferred, the transferee shall succeed to the Capital Account
of the transferor to the extent it relates to the Transferred interest, except as provided in Treasury Regulations section
1.704-1(b)(2)(iv)(1), and except that if a Transfer causes a termination of the Company under section 708(b)(1)(B)
of the Code, Treasury Regulations section 1.708-1(b) shall apply.

 

(d)
Distributions of Property. If any property, other than money, is distributed to a Member, the Capital Accounts of the Members
shall be adjusted to reflect the manner in which the unrealized items of Profit and Loss inherent in the distributed property
(that has not been reflected previously in the Capital Accounts) would be allocated among the Members if there was a taxable disposition
of the distributed property for the fair market value of the property on the date of the distribution taking into account section
7701(g) of the Code. For this purpose, the fair market value of the distributed property shall be determined under Section
5.3.

 

(e)
Depletable Properties. As of the Effective Date, Miranda is making a Capital Contribution to the Company of depletable
properties with respect to which Miranda has an adjusted tax basis that may consist in part of depletable expenditures and in
part of expenditures capitalized under Code sections 616(b), 291(b) and 59(e). For purposes of maintaining
Capital Accounts, the Company’s deductions with respect to contributed property in each year for depletion, deferred development
expenditures under section 616(b) of the Code attributable to pre-contribution expenditures, amortization under section
291(b) of the Code attributable to pre-contribution expenditures, and amortization under section 59(e) of the Code
attributable to pre-contribution expenditures shall be (i) the amount of the corresponding item determined for tax purposes under
Section 4.4; multiplied by (ii) the ratio of (A) the book value at which the contributed property is recorded in
the Capital Accounts, to (B) the adjusted tax basis of the contributed property (including basis resulting from capitalization
of pre-contribution development expenditures under Code sections 616(b), 291(b), and 59(e)).

 

(f)
Restatement of Capital Accounts. If the Members unanimously agree, upon the occurrence of an event described in Treasury
Regulations section 1.704-1(b)(2)(iv)(f)(5), the Capital Accounts of the Members shall be restated under
Treasury Regulations section 1.704-1(b)(2)(iv)(f) to reflect the manner in which unrealized items of Profit and
Loss inherent in the Assets (that previously has not been reflected in the Capital Accounts) would be allocated among the Members
if the Assets were sold in a taxable disposition for their fair market values as determined under Section 5.3; provided
that the Capital Accounts of the initially admitted Members shall not be adjusted pursuant to this sentence in connection with
their Initial Contributions. For purposes of Section 3.2, a Member shall be treated as contributing the portion of the
book value of any property that is credited to the Member’s Capital Account under the preceding sentence. After a revaluation
under this Section 5.1(f), each Member’s share of depreciation, depletion, amortization and gain or loss, as computed
for tax purposes, with respect to property that has been revalued under this Section 5.1(f) shall be determined in accordance
with the principles of Code section 704(c) as applied under Section 4.3.

 

    	EXHIBIT C – TAX MATTERS: Page 11

    	 

    

 

5.2
Liquidation. After the dissolution, and effective upon the liquidation of the Company,
the liquidator shall cause the Capital Accounts of the Members to be restated in accordance with Section 5.1(f) to reflect
any items of Profit or Loss that would be realized by the Company and allocated to the Members under Article III if the
Assets were sold at the time of liquidation for their fair market values as determined under Section 5.3.

 

5.3
Fair Market Values. For purposes of Sections 5.1(d), 5.1(f) and 5.2,
the fair market values of any Assets as of the time of determination shall be determined by the unanimous agreement of the Members,
and if they cannot agree, then by a nationally recognized independent engineering firm or other qualified independent appraiser
selected by unanimous agreement of the Members.

 

5.4
Modifications. This Article V and the other provisions of this Exhibit
C relating to the maintenance of Capital Accounts and allocations of items of Profit and
Loss are intended to comply with Treasury Regulations section 1.704-1(b), and shall be interpreted and applied in a manner
consistent with those Treasury Regulations. If the Management Committee determines that it is prudent to modify the manner in
which Capital Accounts, or any debits or credits to Capital Accounts, are computed in order to comply with those Treasury Regulations,
then the Management Committee may make the prudent modifications if the modifications are not likely to have a material effect
on the amount distributable to any Member upon liquidation of the Company under Section 7.2 of the Agreement.

 

5.5
Deemed Termination. Notwithstanding Section 5.2, if a deemed liquidation
of the Company results from a deemed termination under section 708(b)(1)(B) of the Code, then (i) Section 5.2 of
this Exhibit C and Section 7.2 of the Agreement shall not apply, and (ii) for income
tax purposes only (A) the Company shall be deemed to have contributed its assets to a new partnership in exchange for an interest
in the new partnership, and then deemed to have immediately distributed its interest in the new partnership to the purchaser in
the transaction causing the deemed liquidation and the non-transferring Members in proportion to their respective interests in
the Company and in liquidation of the Company, and (B) the new partnership shall continue under the terms of this Agreement, including
this Exhibit C.

 

    	EXHIBIT C – TAX MATTERS: Page 12

    	 

    

 

EXHIBIT
D

 

NET
PROCEEDS CALCULATION

 

This
Exhibit D sets forth the calculation of Net Proceeds and the terms for the payment of Net Proceeds after the resignation
of a Member under Section 9.1(b) of the Agreement.

 

ARTICLE
I

CALCULATION
OF NET PROCEEDS

 

1.1
Income and Expenses. Net Proceeds shall be calculated by deducting from the sum of the Gross Revenue (as defined in
Section 1.2) of the Company that is realized (or deemed to be realized) from the sale (or deemed sale) of Products, as
well as the costs and expenses attributable to Exploration, Development, Mining, the marketing of Products and other Operations
as would be deductible under GAAP applied in a manner consistent with the application of GAAP by the Manager with respect to the
Assets, including (without duplication), the following: 

 

(a)
 All costs and expenses of replacing, expanding, modifying, altering or changing from time to time the Mining facilities. Costs
and expenses of improvements (such as haulage ways or mill facilities) that are also used in connection with workings other than
the Properties shall be charged to the Properties only in the proportion that their use in connection with the Properties bears
to their total use; 

 

(b)
 Ad valorem real property and unsecured personal property taxes, and all taxes, other than income taxes, applicable to Mining
of the Properties including. without limitation, all state mining taxes, sales taxes, severance taxes, royalties, license fees
and governmental levies of a similar nature;

 

(c)
 Allowance for overhead in accordance with the Accounting Procedure; 

 

(d)
 All expenses incurred relative to the sale of Products, including an allowance for commissions at rates which are normal and
customary in the industry; 

 

(e)
 All amounts payable to the Manager, the remaining Member or their respective Affiliates, during Mining pursuant to the Agreement
or under any applicable operating or similar agreement in force with respect thereto; 

 

(f)
The amount of Capital Contributions and other costs of investment made prior to the commencement of Mining, including all Capital
Contributions for Exploration and Development of the Properties made by the non-resigning Member both prior and subsequent to
the resigning Member acquiring a Net Proceeds interest; 

 

(g)
 Interest on monies borrowed or advanced for costs and expenses, at an annual rate equal to two point five (2.5) percentage points
above the Prime Rate, but in no event in excess of the maximum permitted by law;

 

    	EXHIBIT D – NET PROCEEDS CALCULATION

    	 

    

 

(h)
 An allowance for reasonable working capital and inventory;

 

(i)
 Costs of funding the Environmental Compliance Fund as provided in the Accounting Procedure; and

 

(j)
 Actual costs of Operations.

 

1.2
Gross Revenue. For purposes hereof, the term “Gross Revenue” shall mean the
sum of (a) gross receipts from the sale of Products, less any charges for sampling, assaying, or penalties; (b) gross receipts
from the sale or other disposition of Assets; (c) insurance proceeds; (d) compensation for expropriation of Assets; and (e) judgment
proceeds. Gross receipts for sale of Products shall be determined by multiplying spot prices for Products as quoted by the London
gold morning price fix set forth at www.kitco.com, or such other reputable source recognized in the precious metals industry
that provides similar spot price quotations.

 

1.3
Intent. It is intended that the remaining Member shall recoup from Gross Revenue all of its on-going contributions
for Exploration, Development, Mining and marketing Products before any Net Proceeds are distributed to any Person holding a Net
Proceeds interest. No deduction shall be made for income taxes, depreciation, amortization or depletion. If in any year after
the beginning of Mining of the Properties an operating loss relative thereto is incurred, the amount thereof shall be considered
as, and be included with, outstanding costs and expenses and carried forward in determining Net Proceeds for subsequent periods.
If Products are processed by the remaining Member, or are sold to an Affiliate of the remaining Member, then, for purposes of
calculating Net Proceeds, such Products shall be deemed conclusively to have been sold at a price equal to fair market value to
arm’s length purchaser FOB the concentrator for the Properties, and Net Proceeds relative thereto shall be calculated without
reference to any profits or losses attributable to smelting or refining.

 

ARTICLE
II

PAYMENT
OF NET PROCEEDS; AUDIT RIGHTS

 

2.1
Payment of Net Proceeds. Payments of Net Proceeds shall commence in the calendar quarter
following the calendar quarter in which Net Proceeds are first realized (the “Commencement Date”). The Company shall
make each payment of Net Proceeds for any calendar quarter within forty-five (45) days after the end of such quarter, and shall
deliver with each such payment a copy of the calculations performed by or on behalf of the Company to determine the amount of
the payment. If all necessary information is not available to the Company within such forty-five (45) day period, the Company
shall make an interim settlement of the payment of Net Proceeds within such forty-five (45) day period of at least eighty-five
percent (85%) of the anticipated final settlement based on all information available to the Company. Final settlement of any overpayments
or underpayments shall be corrected in the next calendar quarter following determination of any such adjustments. All payments
shall be made by wire transfer of immediately available funds to the account designated in writing by the recipient to the Manager.
Any payment not made within five (5) days after the due date shall, without the requirement for Notice, constitute a default,
and shall bear interest at the annual rate equal to two point five (2.5) percentage points above the Prime Rate from the date
such payment was due to the date such payment and all accrued interest thereon has been paid.

 

2.2
Audits. From and after the Commencement Date, the recipient of Net Proceeds shall have the right upon at least thirty
(30) days’ Notice to undertake through an independent firm of certified public accountants an audit of the records and documentation
that relate to the calculation of Net Proceeds for any calendar quarter; provided, that such Notice is delivered within twelve
(12) months after receipt of final payment under Section 2.1 for such calendar quarter. Any calculation not so audited shall be
deemed final and shall not thereafter be subject to audit or challenge, except in the case of fraud. The recipient shall not be
entitled to conduct more than one such audit in any twelve (12) month period. Any such audit shall be conducted during the normal
business hours of the Manager. Unless such audit discovers a discrepancy of more than ten percent (10%), the cost of such audit
shall be paid by the recipient of Net Proceeds. If such audit discovers a discrepancy of more than ten percent (10%), the cost
of such audit shall be paid by the Company.

 

    	EXHIBIT D – NET PROCEEDS CALCULATION

    	 

    

 

EXHIBIT
E

 

INSURANCE

 

The
Manager shall, at all times during Operations, comply fully with applicable worker’s compensation laws and purchase, or
provide through self-insurance, protection for the Members comparable to that provided under standard form insurance policies
for: (a) comprehensive public liability and property damage with combined limits of Ten Million and 00/100 United States Dollars
(USD$10,000,000.00) for bodily injury and property damage; (b) automobile insurance with combined limits of Ten Million and 00/100
United States Dollars (USD$10,000,000.00); and (c) adequate and reasonable insurance against risk of fire and other risks ordinarily
insured against in similar operations. If the Manager elects to self-insure, it shall charge to the Business Account an amount
equal to the premium it would have paid had it secured and maintained a policy or policies of insurance on a competitive bid basis
in the amount of such coverage. Each Member shall self-insure or purchase for its own account such additional insurance as it
deems necessary. 

 

    	EXHIBIT E - INSURANCE: Page 1

    	 

    

 

EXHIBIT
F

adopted
INITIAL PROGRAM AND BUDGET

 

The
Initial Program and Budget for the first 24 months of the Joint Venture beginning on the Effective Date herein is capital expenditure
of $14,948,817 of a total of $17,000,000 to be spent on the development of the project. The parties currently intend that the
Initial Program and Budget will be part of the total 3-year development plan, as set forth in the Technical Report. The Initial
Budget is as follows:

 

	Mine Equipment and Plant	 	$	1,619,500	 
	Mine Portal and Underground development	 	$	5,706,217	 
	Gold Recovery Plant and lab construction and equipment	 	$	6,397,500	 
	General, administrative, indirects and contingency	 	$	1,225,600	 

 

    	 	 	 

    	 

    

 

EXHIBIT
G

 

DEED

 

Real
Estate Deed of Trust, Security Agreement, Assignment of Lease and Rights, and Financing Statement

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