Document:

Exhibit 10.1

 

OPTION TO PURCHASE AGREEMENT

ATHENA SILVER CORPORATION

 

THIS OPTION TO PURCHASE AGREEMENT (this
“Agreement”) is made as of the 21st day of December, 2020

 

AMONG:

STRONGHOLD SILVER USA CORP., having an address
at 312 E. Barioni Blvd. Imperial CA 92251

 

(the “Optionee”)

 

AND:

ATHENA SILVER CORPORATION., having an address
at 2010A Harbison Dr., #312, Vacaville, CA 956871

 

(“Athena Silver”)

 

AND:

ATHENA MINERALS INC., having
an address at 2010A Harbison Dr., #312, Vacaville, CA 956871

 

(“Athena
Minerals” and together, with Athena Silver, the “Optionor”)

 

WHEREAS:

 

A.                
Athena Minerals is a wholly-owned subsidiary of Athena Silver;

 

B.                
Athena Minerals is the sole registered and beneficial owner of 100% of the right, title, and interest in and to certain
mineral claims listed in Schedule “A” to this Agreement (the “Property”);

 

C.                
The Optionee and Athena Silver entered into a letter of intent dated October 22, 2020 (the “LOI”) setting
forth the terms and conditions on which the Optionee proposed to acquire a 100% undivided right, title, ownership and beneficial
interest in and to the Property (subject to the exclusion of one or more of the mineral claims at the Optionee’s sole discretion),
free and clear of any Encumbrance save and except for the Royalty (as defined herein) and Permitted Encumbrances (as defined herein)
listed in Schedule “C” of this Agreement (the “Option”); and

 

D.                
The parties now wish to enter into this Agreement as the definitive “Option to Purchase Agreement” as contemplated
by the LOI.

 

THIS AGREEMENT WITNESSES that, in
consideration of the mutual agreements set forth in this Agreement, and for other good and valuable consideration (the receipt
and sufficiency of which are hereby acknowledged), Athena Silver, Athena Minerals and the Optionee (each, a “Party”
and, together, the “Parties”) hereby agree as follows:

 

 

 

 

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Article
1

DEFINITIONS AND INTERPRETATIONS

 

1.1              
Definitions

 

The following terms will have the following
meanings in this Agreement, unless the context otherwise expressly requires:

 

“Affiliate” means any
Person which, directly or indirectly, controls, is controlled by, or is under common control with, a Person;

 

“Assets” means:

 

		(a)	the right, title and interest of the Optionor in and to the Property,

 

		(b)	any Exploratory Data (as defined herein), maps, drill core, samples, assays, geological and other
technical reports, studies, designs, plans and financial or other records or intellectual property (whether in tangible or electronic
form) related to the Property in the possession or under the control of the Optionor as at the Closing Date or thereafter acquired
by any Party or its Affiliates with respect to the Property, and

 

		(c)	any exploration tools, plant, supplies and equipment acquired after the Closing Date for or in
connection with the Property by a Party or its Affiliates, if the costs of any such acquisition are included in Expenditures (as
defined herein) made under this Agreement;

 

“Business Day” means
any day other than a Saturday, Sunday or a public or statutory holiday in the Province of British Columbia or the State of California;

 

“Claim” means any claim,
action, damage, loss (including loss arising from a withheld or abated payment under this Agreement), liability, cost, charge,
expense, payment or demand of any nature, whether present or future, fixed or unascertained, actual or contingent, and whether
at law, in equity, under statute, contract or otherwise;

 

“Closing” means the
closing of the grant of the Option;

 

“Closing Date” means
the date of execution of this Agreement;

 

“Commercial Production”
means the operation of all or part of the Property as a producing mine, and will be deemed to have commenced: (i) if a concentrator
is located within the Property, the first day of the month following the first fifteen (15) consecutive Business Days during which
Minerals have been extracted from any portion of the Property on a commercial basis and on a sustained and continuous rate of not
less than 70% of the initial rated process plant capacity of such concentrator, as specified in a prefeasibility study to be procured
on the Property, or (ii) if no concentrator is located within the Property, the last day of the first period of fifteen (15) consecutive
Business Days during which Minerals have been shipped from the Property on a reasonably regular basis for the purpose of earning
revenues. Mining operations related to bulk sampling or any milling for the purpose of testing or milling by a pilot plant shall
not be included in the determination of whether or not Commercial Production has been achieved;

 

“Earned Interest” means
an undivided 100% right, title, ownership and beneficial interest in and to the Property excepting the Permitted Encumbrances;

 

 

 

 

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“Encumbrance” means
any mortgage, charge, pledge, hypothecation, security interest, assignment, lien (statutory or otherwise), charge, title retention
agreement or arrangement, option, license or license fee, royalty, production payment, restrictive covenant or other encumbrance
of any nature, or any agreement to give or create any of the foregoing;

 

“Environmental Laws”
means all requirements of the common law, civil code or of environmental, health or safety statutes of any Governmental Authority,
including, but not limited to, those relating to: (a) noise, (b) pollution or protection of the air, surface water, ground water
or land, (c) pollution or protection of the air, surface water, ground water or land, (d) solid, gaseous or liquid waste generation,
handling, treatment, storage, disposal or transportation, (e) exposure to hazardous or toxic substances, or (f) the closure, decommissioning,
dismantling, or abandonment of any facilities, mines or workings and the reclamation or restoration of lands;

 

“Force Majeure” means,
other than as a consequence of the negligence or default of a Party, an event or cause which is beyond the control of the Party
claiming force majeure, not able to be overcome by the exercise of reasonable care, proper precautions and the consideration of
reasonable alternatives with the intention of avoiding the effects of the force majeure by that Party, and which could not have
been reasonably foreseen, including (subject to satisfying the requirements of the foregoing):

 

		(a)	an act of God, including a pandemic,

 

		(b)	earthquakes, cyclones, fires, floods, blizzards or whiteouts,

 

		(c)	explosions, acts of war, acts of public enemies or terrorist acts,

 

		(d)	shortages of labour or strikes, interference of trade unions, lockout, secondary boycott, or other
labour difficulties (without regard to whether such difficulties can be resolved by acceding to the demands of the union),

 

		(e)	non-availability of materials or transportation, and

 

		(f)	injunctions, laws, rules, regulations, orders or policies of any Governmental Authority or First
Nation that cause Operations to materially cease or that would effectively prohibit Operations from being conducted on the Property,
or the discharge by the Parties of their respective obligations hereunder,

 

but does not include economic hardship,
lack of money or credit, the state of financial markets or the inability to pay any sum of money;

 

“Governmental Authority”
means any federal, state, regional, municipal or local government or authority, quasi-government authority, fiscal or judicial
body, government or self-regulatory organization, commission, board, tribunal, organization, or any regulatory, administrative
or other agency, or any political or other subdivision, department or branch of any of the foregoing having jurisdiction or authority
over the Parties or the subject matter of this Agreement;

 

“Mineral Rights” means
any permit, claim, license, lease, concession, tenement, mineral disposition, mineral lease or other form of title or tenure, and
any other right (including the right of entry to or the right to work upon lands), whether contractual, statutory or otherwise,
which among other things, allows or permits a Person to explore for, develop, mine, extract, sell or otherwise dispose of, Minerals;

 

“Minerals” means all
ores, solutions and concentrates, and metals derived therefrom, containing precious, base or industrial minerals (including gems
and uranium) which are found in, on or under the Property and may lawfully be explored for, mined and sold under the Mineral Rights
and other instruments of title under which the Property is held and as set forth in Schedule “B” to this Agreement;

 

 

 

 

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“Operations” means every
kind of work done, or activity performed by or on behalf of the Optionee on or in respect of the Property, including investigating,
prospecting, exploring, analyzing, property maintenance, sampling, assaying, preparation of reports, estimates and studies (including
feasibility studies), filing assessment work, surveying, rehabilitation, reclamation and environmental protection, and any management
and administration necessary to conduct the foregoing work or activities;

 

“Option” has the meaning
given to it in Recital C to this Agreement;

 

“Other Rights” means
any interest in real property, whether freehold, leasehold, license, right of-way, easement, any other surface or other right in
relation to real property, and any right, license or permit in relation to the use or diversion of water, but excluding any Mineral
Rights;

 

“Permitted Encumbrances”
means those encumbrances listed in Schedule “C” to this Agreement;

 

“Person” is to be construed
broadly and includes any 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;

 

“Personnel” means, in
relation to a Party, any of its, or its Affiliates’, directors, officers, employees, agents, consultants, invitees, subcontractors
and representatives involved, either directly or indirectly, in the performance of the Party’s obligations under this Agreement;

 

“Property” means the
Mineral Rights and Other Rights, if any, including those described in Schedule “A” to this Agreement (subject to the
exclusion of one or more of the mineral claims at the Optionee’s sole discretion), together with any present or future renewal,
extension, modification, substitution, amalgamation or variation of any of those Mineral Rights or Other Rights that derive directly
from those Mineral Rights or Other Rights (whether granting or conferring the same, similar or any greater rights and whether extending
over the same or a greater or lesser domain); and

 

“Royalty” means a 1.0%
net smelter return royalty of all proceeds received from the sale of concentrates, precipitates or metals produced from ores mined,
extracted or taken from from the Property, all as described in further detail in Schedule “B” to this Agreement, to
be granted by the Optionee to the Optionor upon the exercise of the Option, as described in further detail in Schedule “D”
to this Agreement.

 

1.2              
Interpretation

 

Unless the context otherwise expressly
requires, in this Agreement:

 

		(a)	the singular includes the plural and vice versa;

 

		(b)	a gender includes all genders;

 

		(c)	if a word or phrase is defined, its other grammatical forms have a corresponding meaning;

 

		(d)	references to”$” are to the currency of the United States;

 

		(e)	the word “including” means “including without limitation”, and “include”
and “includes” will be construed similarly, and the word “or” means “and/or”;

 

 

 

 

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		(f)	headings and the table of contents are for convenience only and do not form part of this Agreement
or affect its interpretation;

 

		(g)	a provision of this Agreement will not be construed to the disadvantage of a Party merely because
that Party was responsible for the preparation of this Agreement or the inclusion of the provision in this Agreement;

 

		(h)	if an act is prescribed to be done on a specified day which is not a Business Day, it will be done
instead on the next Business Day;

 

		(i)	where the phrase “to the best of the knowledge of” or similar expressions are used,
it is a requirement that the Person in respect of whom the phrase is used will have made the enquiries that are reasonably necessary
to enable that Person to make the statement or disclosure; and

 

		(j)	the schedules attached hereto form part of this Agreement.

 

Article
2

OPTION

 

2.1              
Grant of Option

 

Upon and subject to the terms of this Agreement,
the Optionor hereby grants the Optionee the sole and exclusive right and option to acquire a 100% Earned Interest in the Property,
free and clear of any Encumbrance from the date of this Agreement until December 21, 2025 (the “Term”).

 

2.2              
Payment

 

The aggregate purchase price for the exercise
of the Option (the “Purchase Price”) may be payable at any time during the Term and will be $1,000,000 payable
in cash.

 

2.3              
Good Standing and Exercise of Option

 

		(a)	To maintain the Option in good standing, the Optionee will incur the following payments:

 

		(i)	$15,000 on the Closing Date;

 

		(ii)	$25,000 on each anniversary date of the Closing Date;

 

		(iii)	all real estate taxes, BLM fees and assessments payable to a Governmental Authority which are related
directly to the Property (the “Expenditures”) as they become due in the ordinary course, notice of which must
be provided in writing to Optionee by Optionor in writing at least 30 days before the due date of the Expenditure; and

 

		(iv)	All option payments made to the Optionor from the date of this agreement during the twenty-four
(24) month period prior to the exercise of the option will be applied and credited against the Purchase Price of $1,000,000 on
or before December 21, 2025.

 

		(b)	If any payment is unpaid by the Optionee for 30 Business Days or more past the due date, the Optionor
will have the right, but not the obligation, to cancel the Option effective 30 Business Days following written notice to the Optionee.

 

 

 

 

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		(c)	At any time during the Term, the Optionee may deliver to the Optionor the Purchase Price and notice
confirming payment of the Purchase Price (an “Option Exercise Notice”). Optionee shall tender the Purchase Price
to the following account:

 

	 	Account
Name:	Athena Silver Corporation, Box 114, 60 Sea Walk, The Sea Ranch, CA 95497
	 	 	 
	 	Account Number:	2500 10121
	 	 	 
	 	Routing Number:
	121 100 782
	 	 	 
	 	Bank:	Bank
of the West, 330 Davis Street, Vacaville, CA 95688

 

Upon confirmed
receipt by the Optionor, the Option will be deemed to be exercised and 100% of the Earned Interest will automatically vest in the
Optionee or its designated Affiliate (as the case may be), and the Optionor will promptly initiate and complete a conveyance of
the Property in the name of the Optionee or its designated Affiliate (as the case may be) by way of grant deed with respect to
the Patented Mining Claims listed in Schedule “A” to this Agreement that the Optionee has agreed to acquire, all in
accordance with applicable law.

 

		(d)	Notwithstanding the provisions of Section 2.3(b), if at the time of exercise of the Option, there
is a shortfall on the amount of Expenditures incurred, the Optionee may pay any such shortfall and satisfy the Option by making
a payment in funds to the Optionor of an amount equal to the amount of Expenditures required to be incurred, less the amount of
Expenditures actually incurred by the Optionee up to such date.

 

2.4              
Transfer Costs

 

In the event that the Option is exercised,
the Optionee will pay all reasonable costs and expenses directly incurred with respect to the transfer to the Optionee or its designated
Affiliate (as the case may be), including transfer taxes and recording charges. If the Optionee determines it is necessary to implement
title insurance of escrow on the Property, the Optionee will be solely responsible for all fees, charges, costs and expenses.

 

Article
3

ROYALTY

 

3.1              
Royalty

 

		(a)	Concurrently with the exercise of the Option, the Parties will enter into a royalty agreement as
set forth in Schedule “D” whereby the Optionee will grant the Royalty to the Optionor with respect to production of
all Minerals from the Property, as described in Schedule “B”.

 

		(b)	Regardless of whether the Parties enter into the royalty agreement contemplated in Section 3.1(a),
upon the vesting of the Optionee’s 100% Earned Interest, the Optionee will be deemed to have granted the Royalty to the Optionor.
The Royalty shall comprise an interest in real property that shall run with and form part of the Property and shall bind the successors
and assigns of the Optionee. The Royalty shall attach to any amendments, relocations or conversions of any mining claims or leases
comprising the Property, or to any renewals or extensions of leases, and to any Mineral Rights acquired by the Optionee and any
Affiliates in lands embraced within the Property within one year after the loss or relinquishment of any mining claim or lease
comprising the Property.

 

 

 

 

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Article
4

REPRESENTATIONS AND WARRANTIES

 

4.1              
Mutual Representations and Warranties

 

Each Party represents and warrants to the
other Party that, except as provided in this Agreement:

 

		(c)	this Agreement has been duly executed and delivered by it or him and constitutes a legal, valid
and binding obligation of it or him enforceable in accordance with its terms by appropriate legal remedy, subject to laws generally
affecting creditors’ rights and to principles of equity;

 

		(d)	the execution, delivery and performance of this Agreement by it or him does not and will not (with
or without the lapse of time, the giving of notice or both) contravene, conflict with or result in a breach of or default under
its constating documents, any material term or provision of any undertaking, agreement, deed or security arrangement, or any writ,
order, injunction, judgment, law, rule or regulation to which it is a party or is subject, or by which it or he or any of its property
is bound;

 

		(e)	no litigation, arbitration, mediation, conciliation or administrative proceedings are taking place,
pending or, to the best of its knowledge, threatened against it which, if adversely decided, could, in the reasonable opinion of
the Party, have a material adverse effect on the Party’s business, assets or financial condition such as to materially impair
its ability to perform its obligations under this Agreement;

 

		(f)	no liquidator, trustee in bankruptcy, receiver, receiver manager or other external administrator
is currently appointed in relation to it or him or any of its or his property;

 

		(g)	to the best of its or his knowledge, there are no facts, matters or circumstances which give any
Person the right to appoint or to apply to appoint (as the case may be) a liquidator, trustee in bankruptcy, receiver, receiver
manager or other external administrator to it or any of its property.

 

4.2              
Optionee’s Representations and Warranties

 

The Optionee represents and warrants to
the Optionor that:

 

		(a)	it is not aware of any fact or circumstance which has not been disclosed to the Optionor which
should be disclosed in order to prevent the representations and warranties in this section from being misleading or which are material
to grant the Option to the Optionee.

 

4.3              
Optionor’s Representations and Warranties

 

The Optionor makes the following representations
and warranties to the Optionee:

 

		(a)	Athena Minerals is the sole registered and beneficial owner of a 100% undivided interest in the
Property except for the Permitted Encumbrances;

 

 

 

 

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		(b)	all of the Mineral Rights comprising the Property have been validly and properly recorded in accordance
with the laws in which the Property is located and there are no disputes threatened, or now existing, of which it is aware as to
title to, the recording of, those Mineral Rights;

 

		(c)	the Property and Athena Mineral’s interest in the Property are free and clear of any Encumbrance
except for the Permitted Encumbrances;

 

		(d)	Personnel have conducted all activities on or in respect of the Property in compliance with, and
to the best of his knowledge, all conditions on the Property are in compliance with, all applicable statutes, regulations, by-laws,
laws, orders and judgments, and all directives, rules, consents, permits, orders, guidelines, approvals and policies, of any applicable
Governmental Authority;

 

		(e)	there are no adverse Claims against, or to the ownership of, or title to, the Property or any challenge
to its right, title or interest in the Property, nor, to the best of its knowledge, is there any basis for any potential or future
claims except for the Permitted Encumbrances;

 

		(f)	the Mineral Rights and Other Rights comprising the Property are fully and accurately described
in Schedule “A”, and there are no other Mineral Rights or Other Rights that would properly be considered part of the
Property;

 

		(g)	to the knowledge of the Optionor, there have been no past violations of any Environmental Laws
or other laws affecting or pertaining to any of the Property, nor any past creation of damage or threatened damage to the air,
soil, surface waters, ground water, flora, fauna or other natural resources on or about the Property;

 

		(h)	to the knowledge of the Optionor, no hazardous materials or other materials used in or generated
by the use of the Property have been or are currently placed, used, stored, treated, manufactured, disposed of, released, discharged,
spilled or emitted on or from the Property in material violation of any Environmental Laws;

 

		(i)	there is no agreement or consent order to which the Optionor is a party relating to any environmental
matter relating to the Property and no such agreement is necessary for continued compliance with Environmental Laws;

 

		(j)	it has not received any inquiry or notice of a pending investigation from any Governmental Authority
or notice of any administrative or judicial proceeding concerning the violation of any laws, including Environmental Laws, relating
to the Property;

 

		(k)	it has not received any notice of expropriation of all or any of the Property nor does the Optionor
have knowledge of any expropriation proceeding pending or threatened against or affecting the Property, nor of any discussions
or negotiations which could lead to any such expropriation; and

 

		(l)	it is not aware of any material fact or circumstance which has not been disclosed to the Optionee
which should be disclosed in order to prevent the representations and warranties in this section from being misleading or which
may be material to the Optionee’s decision to enter into this Agreement and acquire an interest in the Property.

 

4.4              
Survival of Representations and Warranties

 

The representations and warranties set
out in this Article 4 will be treated as being in force and be binding upon each Party as at the Closing Date and each Party will
immediately notify the other Party if any of its representations and warranties set out in this Article 4 are not true and correct
in any material respect at any time prior to the Closing. The representations and warranties set out in this Article 4 will survive
the Closing for a period of five years.

 

 

 

 

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4.5              
Indemnity

 

		(a)	Each Party agrees to indemnify the other Party from and against any Claim which the other Party
suffers, sustains or incurs arising out of or in connection with the:

 

		(i)	material breach of any representation or warranty given or made by a Party under this Agreement;
or

 

		(ii)	material breach of, or failure by, a Party or its Personnel to perform any covenant or obligation
of that Party under this Agreement.

 

		(b)	It is not necessary for a Party to incur expense or make payment before enforcing a right of indemnity
conferred by this Agreement.

 

Article
5

OPTIONEE RIGHTS AND OBLIGATIONS

 

5.1              
Operator

 

The Optionee will be the operator responsible
for carrying out the Operations until the termination of this Agreement.

 

5.2              
Third Party Operator

 

Except for an Affiliate of the Optionee,
no other Person may be retained to carry out the Optionee’s duties as operator unless such Person agrees in writing to be
bound by all of the same duties and obligations imposed on the Optionee as operator under this Agreement.

 

5.3              
Rights of Operator

 

During the term of this Agreement, the
Optionee, as operator, will have:

 

		(a)	full physical possession of the Assets and all powers and authorities necessary or desirable to
enable it to carry out or procure the carrying out of all Operations; and

 

		(b)	without limiting Section 5.3(a), the sole and exclusive right to:

 

		(i)	enter in, under or upon the Property and to conduct the Operations and related activities on the
Property;

 

		(ii)	exclusive and quiet possession of the Property;

 

		(iii)	build access roads, drill pads and temporary structures upon the surface of the Property for use
by the Optionee and its Personnel;

 

		(iv)	carry out surface and underground exploration on the Property for Minerals, including, without
limitation, conducting geological, geochemical and geophysical surveys and drilling programs, and collecting bulk samples for metallurgical
test work;

 

		(v)	use any Other Rights, if any, and make application for any such Other Rights as may be required
in the circumstances;

 

		(vi)	apply for and hold all permits, licenses and other approvals deemed necessary or appropriate by
the Optionee in connection with the conduct of exploration activities;

 

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

 

 

 

 

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		(viii)	remove from the Property and dispose of, reasonable quantities of Minerals for the purpose of obtaining
assays or making other tests; and

 

		(ix)	do such prospecting, exploration, development or other mining work on and under the Property as
it may deem necessary or desirable.

 

5.4              
Operator’s Obligations

 

During the term of this Agreement, the
Optionee, as operator, will:

 

		(a)	conduct all Operations in a manner consistent with good exploration, engineering and mining practice
and in compliance in all material respects with any applicable laws, rules, orders and regulations, including the carrying and
maintaining of liability insurance on employees, all laws and regulations regarding reclamation, protection of the environment
or human health, and applicable Environmental Laws with respect to the Property;

 

		(b)	maintain the Property in good standing as required by applicable laws, including by payment of
taxes or other charges, the doing and filing of all necessary work, as assessment work or otherwise, including the payment of annual
mining claim maintenance fees, and the doing of all other acts and things, and making of all other payments, as may be necessary
in that regard;

 

		(c)	acquire all federal, state, and local permits required for the Operations;

 

		(d)	be responsible for reclamation of those areas disturbed by the Optionee’s activities and
will post any operating and reclamation bonds required by regulatory agencies for work on the Property;

 

		(e)	keep the Property free and clear of all Encumbrances (except liens for taxes not yet due, other
inchoate liens and liens contested in good faith by the Optionee) and to proceed with all diligence to contest and discharge any
such Encumbrance that is filed;

 

		(f)	on 14 days’ prior notice by the Optionor and at the Optionor’s sole risk and expense,
permit any Personnel of the Optionor access to the Property at all reasonable times for the purpose of inspecting the work being
done by the Optionee, provided that such inspection does not unduly interfere with any work being carried out by or on behalf of
the Optionee, and further provided that the Optionor’s Personnel shall comply with all applicable safety regulations and
policies during such inspection, and the Optionor shall indemnify and save harmless the Optionee from any Claim arising in connection
with such inspection that is the direct result of action of Personnel of the Optionor;

 

		(g)	on 14 days’ prior notice by the Optionor, permit the Optionor access to all data, reports
or results generated with respect to the exploration and development of the Property;

 

		(h)	deliver to the Optionor, on an annual basis, reports with respect to the exploration and development
of the Property, and all factual maps, reports, assay results and other factual data and documentation relating to the Operations.
The Optionor will be entitled to audit any Expenditures incurred by the Optionee as set out in the annual reports at the Optionor’s
sole expense; and

 

		(i)	provide prompt notice to the Optionor of any notice received from a third party or regulatory agency.

 

 

 

 

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5.5              
Reclamation

 

The Optionee will be responsible for reclamation
of all disturbances caused by any of the Operations, and to the extent possible, the Optionee will conduct reclamation concurrently
with any such disturbance. Notwithstanding any termination of this Agreement, the Optionee agrees to undertake reclamation and
closure monitoring of the Property to the extent required by all applicable laws and permits.

 

5.6              
Participation in Consultation

 

The Parties agree that, during the term
of this Agreement, the Optionor will be entitled, at all times, to participate in any and all scheduled discussions and consultation
with any First Nations with respect to any matters pertaining to the Property, including the permitting thereof.

 

5.7              
Indemnity of the Optionor

 

The Optionee will indemnify the Optionor
and its Personnel from and against any Claim made or brought by any Person against the Optionor or their Personnel (a “Non-Party
Claim”) which arises as a consequence of:

 

		(a)	any act or omission of the Optionee or its Personnel in the performance of the Operations; or

 

		(b)	the breach of, or failure to comply with, any applicable law by the Optionee or its Personnel in
the performance or purported performance of the Operations.

 

Notwithstanding the foregoing, the Optionee
will not be required to indemnify the Optionor with respect to any Claims arising a misrepresentation or breach of this Agreement
by the Optionor or from environmental matters related to the Property which predate the Closing Date or which otherwise arise as
a result of the Optionor’s actions.

 

5.8              
Indemnity of the Optionee

 

The Optionor will indemnify and save the
Optionee harmless from and against any Claim suffered or incurred by the Optionee arising directly or indirectly from any operations
or activities conducted in or on the Property, whether by the Optionor or others, prior to the date of execution of this Agreement.

 

5.9              
Obligation to Inform

 

During the term of this Agreement, each
Party will, and will cause its Affiliates to:

 

		(a)	promptly deliver to the other Party any notice, demand or other material communication relating
to any of the Assets that it or any of its Affiliates receive; and

 

		(b)	obtain the prior written consent of the other Party (which consent will not be unreasonably withheld
or delayed) to the sending by it or its Affiliates of any notice, demand or other material communication relating to any of the
Assets to any Person, including any adjacent property owner or any Governmental Authority.

 

 

 

 

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Article
6

TITLE

 

6.1              
Registered Title

 

The Optionor will remain the registered
and beneficial holder of all of the Mineral Rights and Other Rights comprising the Property until the exercise of the Option, at
which time the Property will be registered in the name of the Optionee in accordance with this Agreement.

 

6.2              
No Encumbrance

 

Except as provided in this Agreement and
the Permitted Encumbrances, after the Closing Date, the Optionor will not deal or attempt to deal with its right, title and interest
in or to the Assets or its rights under this Agreement, and will not cause or allow any Encumbrance to be given or granted in,
in respect of, or over its right, title and interest in or to the Assets.

 

6.3              
No Abandonment

 

Neither Party will abandon, surrender or
permit the expiration or transfer of any of the Mineral Rights or the Other Rights comprising the Property without the prior written
consent of the other Party.

 

Article
7

ASSIGNMENT

 

7.1              
Limitations on Assignments

 

This Agreement may be
assigned by the Optionee in whole or in part provided that any proposed assignee agrees to be bound by the terms of this Agreement.

 

Article
8

FORCE MAJEURE

 

8.1              
Notice of Force Majeure

 

Subject to Section 8.4, a Party will not
be liable for any delay or failure to perform any of its obligations under this Agreement if, as soon as reasonably possible after
the beginning of the Force Majeure affecting the ability of the Party to perform any of its obligations under this Agreement, it
gives notice to the other Party in accordance with Section 8.2 and otherwise complies with the provisions of this Article 8.

 

8.2              
Force Majeure Notice

 

A notice given under Section 8.1 will:

 

		(a)	specify the obligations the Party cannot perform;

 

		(b)	fully describe the Force Majeure;

 

 

 

 

    	 	12	 

     

    

 

		(c)	estimate the time during which the Force Majeure is expected to continue; and

 

		(d)	specify the measures proposed to be adopted to remedy or abate the Force Majeure.

 

8.3              
Obligation to Remedy and Mitigate

 

The Party that is prevented from carrying
out its obligations under this Agreement as a result of Force Majeure will:

 

		(a)	remedy the Force Majeure to the extent reasonably possible and resume performance of its obligations
as soon as reasonably practicable;

 

		(b)	take all action reasonably practicable to mitigate any liability suffered by the other Party as
a result of its failure to carry out its obligations under this Agreement; and

 

		(c)	provide regular updates as to the efforts made to remove the cause of the Force Majeure.

 

Despite the foregoing, nothing in this
Section 8.3 will require the Party that is prevented from performing its obligations under this Agreement as a result of Force
Majeure to resolve or compromise any labour dispute or to question or to test the validity of any law, rule, regulation or order
of any Governmental Authority or to perform its obligations under this Agreement if a Force Majeure renders performance impossible.

 

8.4              
Effect of Force Majeure on Time and Payment

 

		(a)	In the event of a Force Majeure, any time period provided for in this Agreement will be extended
by a period equivalent to the period of delay or such longer period as is reasonable in the circumstances.

 

		(b)	If at any time before the exercise of the Option by the Optionee a Force Majeure arises, then,
from the date that the Force Majeure arises until the Force Majeure is remedied or abates, the Optionee will, subject to Sections
8.4(c) and 8.4(d), not be obliged to incur any Expenditures or make any payments set out in Section 2.3(b) of this Agreement. Notwithstanding
the foregoing, during the period of a Force Majeure, the Optionee will make such Expenditures as is necessary to pay any maintenance,
rental, holding fee, or other payment required to maintain the Property in good standing.

 

		(c)	If at any time before the exercise of the Option by the Optionee, a Force Majeure arises, and if
the Force Majeure is remedied or abates at any time before the expiration of one year from the date on which the Force Majeure
first arose, then, in order to keep the Option in good standing, subject to Section 8.4(a), the Optionee will incur the Expenditures
and make the payments in accordance with Section 2.3(b) of this Agreement that, but for the Force Majeure, the Optionee would have
been required to incur under this Agreement.

 

		(d)	If at any time before the exercise of the Option by the Optionee, a Force Majeure arises, and if
the Force Majeure does not remedy or abate at any time by the expiration of one year from the date on which the Force Majeure first
arose, then the Optionee will, within 60 Business Days after the expiration of one year from the date on which the Force Majeure
first arose, by notice in writing to the Optionor, elect to either:

 

		(i)	terminate this Agreement; or

 

		(ii)	not terminate this Agreement, in which case the Optionee will still be required to incur the payments
set forth in Section 2.3(b) that, but for the Force Majeure, the Optionee would have been required to incur under this Agreement.

 

 

 

 

    	 	13	 

     

    

 

		(e)	If the Optionee elects not to terminate this Agreement under Section 8.4(d)(ii), then the Optionee
will not be required to incur any Expenditures or make any payments set forth in Section 2.3(b) that, but for the Force Majeure,
the Optionee would have been required to incur under this Agreement until such time as the Force Majeure is remedied or abates.
If the Force Majeure is subsequently remedied or abates then, subject to Section 8.4(a), the Optionee will incur the Expenditures
or make any payments set forth in Section 2.3(b) that, but for the Force Majeure, the Optionee would have been required to incur
under this Agreement during the period of Force Majeure. Notwithstanding the foregoing, during the period of a Force Majeure, the
Optionee will make such Expenditures as are necessary to pay any maintenance, rental, holding fee, or other payment required to
maintain the Property in good standing.

 

Article
9

TERMINATION AND REMEDIES

 

9.1              
Optionee’s Election to Terminate Without Cause

 

The Optionee may elect to terminate this
Agreement by delivering 30 days’ notice to that effect to the Optionor, provided that the Optionor will be entitled
to retain any payments received by the Optionor in accordance with Section 2.3 of this Agreement prior to such notice of termination.

 

9.2              
Events of Default

 

A Party may terminate this Agreement by
notice in writing to the other Party if:

 

		(a)	the other Party (the “Defaulting Party”) commits a material breach of any provision
of this Agreement, and:

 

		(i)	the breach is incapable of remedy, or

 

		(ii)	the breach is capable of remedy and:

 

		A.	the Party has given notice to the Defaulting Party specifying the breach and requesting that it be remedied, and

 

		B.	the Defaulting Party has failed to take reasonable steps to commence rectifying that breach (or overcome its effects) within
30 days of receiving that notice

 

9.3              
Post-Termination Obligations

 

If, prior to the exercise of the Option
by the Optionee, this Agreement is terminated for any reason, then:

 

		(a)	the Optionee will have no interest in the Property and the Optionee will leave the Property free
and clear of any Encumbrance resulting from the Operations conducted by it on the Property;

 

		(b)	the Optionee will comply in all material respects with applicable laws and regulations regarding
reclamation in relation to Operations conducted by it on the Property; and

 

		(c)	the Optionee will vacate the Property within a reasonable time after termination, but the Optionee
will have a right of access to the Property for a period of one year thereafter for the sole purpose of performing the obligations
contained in this Section 13.4, and shall have the right to access the Property to the extent necessary to discharge its obligations
hereunder.

 

9.4              
Consequences of Termination

 

Termination of this Agreement will not
derogate from, affect or prejudice any rights or remedies of a Party whether arising under this Agreement or at law that have accrued
prior to the date of, or arise as a consequence of, the termination.

 

 

 

 

    	 	14	 

     

    

 

Article
10

DISPUTES

 

10.1          
Governing Law

 

This Agreement is governed by and will
be construed in accordance with the laws of the State of California and the federal laws of the United States applicable therein.
The Parties agree that the courts of California will have sole jurisdiction to entertain any action or other legal proceeding based
on any provision of this Agreement and the Parties agree to attorn to the exclusive jurisdiction of such courts.

 

10.2          
Dispute Resolution

 

All disputes arising under or in connection
with this Agreement which cannot be resolved by agreement between the Parties will be resolved in accordance with applicable laws.
If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach,
default or misrepresentation in connection with any provisions of this Agreement, the successful or substantially prevailing Party
will be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition
to any other relief to which it or they may be entitled.

 

Article
11

NOTICE

 

11.1          
Notices

 

All notices, payments and other required
communications to either Party will be in writing, and will be addressed as follows:

 

		(a)	if to the Optionee:
	 	 	312 E. Barioni
Blvd. Imperial CA 92251

C/O James
Hynes

James@koremining.com
(236) 668-4361

 

		(b)	if to the Optionor:
	 	 	2010A Harbison Dr., #312

Vacaville, CA  95687

C/O John Power

johncaseypower@gmail.com

 

All notices will be given: (i) by personal
delivery to the Party, (ii) by electronic communication capable of producing a printed transmission, (iii) by registered or certified
mail, return receipt requested, or (iv) by overnight or other express courier service. All notices will be effective and will be
deemed delivered: on the date of receipt at the principal address if received during normal business hours, and, if not delivered
during normal business hours, on the next Business Day following delivery; if delivered by electronic communication, if sent prior
to 4:00 p.m. (Pacific time) on a Business Day, on such Business Day, or, if not, on the next Business Day; and if delivered solely
by mail on the next Business Day after actual receipt. Either Party may change its address by notice to the other Party in accordance
with this Article 11.

 

 

 

 

    	 	15	 

     

    

 

Article
12

Confidential information

 

12.1          
Any information concerning the Optionor disclosed to the Optionee, or concerning the Property which has not been publicly
disclosed, will be kept strictly confidential and will not be disclosed by the Optionee except as otherwise set forth in Schedule
“E” to this Agreement. 

 

12.2          
Both the Optionor and the Optionee agree that it will not make any public disclosure of the existence of this Agreement
or of any of its terms without first advising the other party and obtaining the written consent of such other party to the proposed
disclosure, unless such disclosure is required by applicable law or regulation, in which event the party contemplating disclosure
will inform the other party of and obtain its consent to the form and content of such disclosure, which consent will not be unreasonably
withheld or delayed. 

 

Article
13

GENERAL

 

13.1          
Relationship of Parties

 

The Parties agree and declare that this
Agreement is not, and will not be construed as constituting, an association, corporation, joint venture, partnership, mining partnership
or any other kind of partnership and, except as expressly provided otherwise in this Agreement, nothing in this Agreement will
be deemed to constitute a Party a partner, agent or legal representative of any other Party for any purpose whatsoever or create
a fiduciary relationship between the Parties.

 

13.2          
No Holding Out

 

No Party may, except as expressly permitted
by this Agreement, directly or indirectly use or permit the use of the name of the other Party for any purpose related to the Property
or this Agreement.

 

13.3          
Recording of this Agreement

 

This Agreement, or a memorandum of this
Agreement, will, upon the written request of a Party, be recorded in the office of any Governmental Authority identified in the
written request of the requesting Party, in order to give notice to other Persons of that Party’s interests that arise under
this Agreement. Each Party agrees with the requesting Party to execute those documents that may be necessary to perfect such recording.

 

13.4          
Entire Agreement

 

This Agreement, including any schedules
hereto, contains the entire understanding of the Parties, and supersedes all prior agreements and understandings between the Parties,
with respect to the subject matter hereof.

 

13.5          
Amendment and Variation

 

This Agreement may not be amended, modified,
varied or supplemented except in writing signed by each of the Parties.

 

 

 

 

    	 	16	 

     

    

 

13.6          
Consents or Approvals

 

Except where expressly specified otherwise
in this Agreement, if the doing of any act, matter or thing under this Agreement is dependent on the consent or approval of a Party,
or is within the discretion of a Party, then the consent or approval may be given or the discretion may be exercised conditionally
or unconditionally or withheld or delayed by the Party in its absolute discretion.

 

13.7          
Waiver

 

The failure of either Party to insist on
the strict performance of any provision of this Agreement or to exercise any right, power or remedy upon a breach hereof will not
constitute a waiver of any provision of this Agreement or limit such Party’s right thereafter to enforce any provision or
exercise any right.

 

13.8          
Costs and Outlays

 

Each Party will pay its own costs and expenses
connected with the preparation, negotiation and execution of this Agreement, including all legal, accounting and brokers or finders
fees and disbursements relating to this Agreement.

 

13.9          
Manner of Payment

 

Any payment to be made to a Party may be
made by electronic funds transfer to that Party’s bank as designated by that Party by notice from time to time. That bank
will be deemed the agent of the designating Party for the purposes of receiving, collecting and receipting such payment.

 

13.10       
Further Assurances

 

Each Party will promptly, at its own cost,
do all things (including executing and, if necessary, delivering all documents) reasonably necessary or desirable to give full
effect to this Agreement and the transactions contemplated by it.

 

13.11       
Special Remedies

 

Each Party acknowledges and agrees that:

 

		(a)	any breach by it of Article 7 (Assignment) or Article 12 (Confidential Information) would constitute
an injury and cause damage to the other Party which is impossible to measure monetarily;

 

		(b)	monetary damages alone would not be a sufficient remedy for a breach of Article 7 or Article 12;

 

		(c)	in addition to any other remedy which may be available in law or equity, a Party is entitled to
interim, interlocutory and permanent injunctions or any of them to prevent breach of Article 7 or Article 12 and to compel specific
performance of either or both of such Articles; and

 

		(d)	any Party intending to breach, or which breaches, Article 7 or Article 12 hereby waives any defence
it may have at law, in equity or under statute to such injunctive or equitable relief.

 

 

 

 

    	 	17	 

     

    

 

13.12       
Survival

 

All limitations of liability and rights
accrued prior to completion, termination or expiration of this Agreement, will not merge on completion, termination or expiration
of this Agreement, but will continue in full force and effect after any termination or expiration of this Agreement, as will any
other provision of this Agreement which expressly, or by implication from its nature, is intended to survive the termination or
expiration of this Agreement.

 

13.13       
Severability

 

If anything in this Agreement is unenforceable,
illegal or void, then it is severed and the rest of this Agreement remains in full force and effect. Where a provision of this
Agreement is prohibited or unenforceable, the Parties will negotiate in good faith to replace the invalid provision by a provision
which is in accordance with applicable laws and which will be as close as possible to the Parties’ original intent, and appropriate
consequential amendments (if any) will be made to this Agreement.

 

13.14       
Successors and Assigns

 

This Agreement will enure to the benefit
of and be binding upon the Parties and their respective successors and permitted assigns.

 

13.15       
Counterparts and Electronic Delivery

 

This Agreement may be executed by the Parties
in any number of counterparts, and it will not be necessary that the signatures of both Parties be contained on any one counterpart.
Executed copies of this Agreement may be delivered by the Parties by email or other form of electronic transmission capable of
producing a printed copy. Each counterpart so executed and delivered will be deemed to be an original, will constitute one and
the same instrument, and, notwithstanding the date of execution, will be deemed to be executed as of the date first set forth above.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

 

 

 

    	 	18	 

     

    

IN WITNESS WHEREOF the Parties have duly
executed this Agreement as of the date set forth above.

 

STRONGHOLD SILVER USA CORP.

JAMES HYNES, AUTHORIZED SIGNATORY

 

 

ATHENA SILVER CORPORATION

 

Per:

 

JOHN POWER, AUTHORIZED SIGNATORY

 

 

ATHENA MINERALS INC.

 

Per:

 

JOHN POWER, AUTHORIZED SIGNATORY

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

SCHEDULE “A”

 

PROPERTY

 

	Serial
    Number	Claim
    Name	Claimant
    Name
	CAMC289957	SILVERADO #30	ATHENA MINERALS INC
	CAMC289958	SILVERADO #31	ATHENA MINERALS INC
	CAMC289960	SILVERADO #33	ATHENA MINERALS INC
	CAMC289962	SILVERADO #35	ATHENA MINERALS INC
	CAMC289963	SILVERADO #36	ATHENA MINERALS INC
	CAMC290264	LILLY #11	ATHENA MINERALS INC
	CAMC290265	LILLY #12	ATHENA MINERALS INC
	CAMC290266	LILLY #13	ATHENA MINERALS INC
	CAMC290267	LILLY #14	ATHENA MINERALS INC
	CAMC290268	LILLY #15	ATHENA MINERALS INC
	CAMC290269	LILLY #16	ATHENA MINERALS INC
	CAMC290270	LILLY #17	ATHENA MINERALS INC
	CAMC290271	LILLY #18	ATHENA MINERALS INC
	CAMC290272	LILLY #19	ATHENA MINERALS INC
	CAMC296910	CLIPPER #1	ATHENA MINERALS INC
	CAMC296911	CLIPPER #2	ATHENA MINERALS INC
	CAMC296912	CLIPPER #3	ATHENA MINERALS INC
	CAMC296913	CLIPPER #4	ATHENA MINERALS INC
	CAMC296914	CLIPPER #5	ATHENA MINERALS INC
	CAMC296915	HAWAII CLIPPER	ATHENA MINERALS INC
	CAMC296916	CALIF CLIPPER #3	ATHENA MINERALS INC
	CAMC296917	CALIF CLIPPER #2	ATHENA MINERALS INC
	CAMC296918	CALIF CLIPPER #4	ATHENA MINERALS INC
	CAMC300265	CLIPPER #12	ATHENA MINERALS INC
	CAMC300266	CLIPPER #13	ATHENA MINERALS INC
	CAMC300267	CLIPPER #14	ATHENA MINERALS INC
	CAMC300268	CLIPPER #15	ATHENA MINERALS INC
	CAMC300269	CLIPPER #16	ATHENA MINERALS INC
	CAMC300270	CLIPPER #17	ATHENA MINERALS INC
	CAMC300271	CLIPPER #18	ATHENA MINERALS INC
	CAMC300272	CLIPPER #19	ATHENA MINERALS INC
	CAMC300273	CLIPPER #20	ATHENA MINERALS INC
	CAMC300274	CLIPPER #21	ATHENA MINERALS INC
	CAMC300275	CLIPPER #22	ATHENA MINERALS INC
	CAMC300276	CLIPPER #23	ATHENA MINERALS INC
	CAMC300277	CLIPPER #24	ATHENA MINERALS INC

 

 

 

 

 

    	 	20	 

     

    

 

SCHEDULE “B”

 

MINERAL ROYALTY

Clarification of the Royalty payable to
the Optionor on income derived from the Property, as described in further detail in Schedule “D” to this Agreement:

 

		(i)	1% of all proceeds received from the sale of concentrates, precipitates or metals produced from
ores mined, extracted or taken from the Claims set forth on Schedule A, only on such claims that do not currently have existing
royalties above 1% to a maximum of 1% on such claims. The payment to be made to the Optionor shall be based on 1% of the actual
amount received by Optionee from a smelter or other buyer. No deductions of any kind shall be allowed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

SCHEDULE “C”

 

PERMITTED ENCUMBRANCES

 

John D. Gibbs has a security interest in 100% of the common
stock of Athena Minerals Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

SCHEDULE “D”

 

MINERAL ROYALTY

		1.	Royalties

 

For the purposes of this
Schedule “D”, the Optionor who becomes entitled to a Royalty pursuant to Article 3 of the Agreement shall be the
“Payee,” and the holder of the Property who will pay the Royalty to the Payee shall be the "Payor."
Payor and Payee shall jointly be referred to as “Participants”.

 

The Participants agree
on the following Royalty for "Mineral Products," which as used herein means all ores, solutions and concentrates,
and any metals or products derived therefrom, including doré, containing precious, base or industrial minerals (including
gems and uranium), produced from the Property, and as further described in Schedule "B" to the Agreement.

 

		(a)	A 1% net smelter return royalty on all proceeds received from the sale of concentrates, precipitates
or metals produced from ores mined, extracted or taken from the Claims set forth on Schedule A ("NSR Royalty")
payable to Payee by Payor in accordance with the terms of this Schedule “D” on the unpatented claims set out in
Schedule “A”, only on such claims that do not currently have existing royalties above 1%, to a maximum of 1% on such
claims. The foregoing payment to be made to Payee shall be based on 1% of the actual amount received from a smelter or other buyer.
No deductions of any kind shall be allowed.

 

		2.	Calculation of NSR Royalty

 

The NSR Royalty will be calculated and
paid on a calendar quarterly basis and will be equal to Gross Revenue (as hereinafter defined) for such calendar quarter.

 

		3.	Interpretation

 

In addition to the defined terms set out
in the Agreement, the following terms will have the following meanings in this Schedule “D”:

 

		(a)	“Gross Revenue” means the aggregate of the following amounts (without duplication)
accruing in each calendar quarterly period following commencement of Commercial Production:

 

		(i)	the gross revenue received by the Payor from arm’s length purchasers of all Mineral Products;

 

		(ii)	the fair market value of all Mineral Products sold by the Payor in such period to persons not dealing
at arm’s length with the Payor;

 

		(iii)	any proceeds of insurance received by the Payor on Mineral Products; and

 

		(iv)	does not include any sales taxes that may be applicable to the sale of Mineral Products with respect
to the gross revenue received by the Payor.

 

		4.	Payment

 

The NSR Royalty will be paid within 60 days
after the end of each calendar quarter. Smelter settlement sheets for the NSR Royalty, if any, and a statement setting forth calculations
in sufficient detail to show the payment’s derivation (the “Statement”), must be submitted with the payment.

 

 

 

 

    	 	23	 

     

    

 

		5.	Provisional Payments

 

In the event that final amounts required
for the calculation of the NSR Royalty are not available within the time period referred to in Section 4 of this Schedule “D”,
then provisional amounts will be estimated and the NSR Royalty paid on the basis of this provisional calculation. Positive or negative
adjustments will be made to the NSR Royalty payments of the succeeding calendar quarter.

 

		6.	Segregation of Project Area

 

The determination of the NSR Royalty is
based on the premise that Commercial Production will occur solely on the Property. If other properties are incorporated into a
single mining project and Mineral Products pertaining to each are not readily segregated on a practical or equitable basis, the
allocation of actual proceeds received and deductions therefrom will be negotiated by the Payor with reference to generally accepted
mining, metallurgical and engineering practices used in mining operations that are of a similar nature. The Payor will be entitled
to retain independent mining consultants, as it considers necessary. The Payor will advise the Payee of any and all proposals in
this matter at as early a stage as possible so the Payee may consider same and provide comments and suggestions thereon.

 

		7.	Commingling

 

Before Mineral Products from the Property
are commingled with minerals from other properties:

 

		(a)	the Mineral Products from the Property shall be measured and sampled in accordance with sound weighing,
sampling, assaying, mining and metallurgical practices for moisture, metal, and other appropriate content;

 

		(b)	representative samples of the Mineral Products shall be taken and retained by the Payor together
with the results of assays (including penalty substances) and other appropriate analyses of the samples to determine metal and
other relevant content of the penalty substances in the Mineral Products, which samples and results will be produced at the request
of the Payee; and

 

		(c)	the amount of NSR Royalty due and payable to the Payee from Mineral Products from the Property
commingled with minerals from other properties shall be determined.

 

		8.	Conduct of Operations

 

All decisions concerning methods, the extent,
times, procedures and techniques of any exploration, development, mining, leaching, milling, processing, extraction treatment,
if any, and the materials to be introduced into the Property or produced therefrom, and except as otherwise provided in this Agreement
all decisions concerning the sale or other disposition of Mineral Products (including, without limitation, decisions as to buyers,
times of sale, whether to store or stockpile Mineral Products for a reasonable length of time without selling the same) shall be
made by the Payor, acting reasonably and in accordance with good mining and engineering practice in the circumstances.

 

 

 

 

 

    	 	24	 

     

    

 

		9.	Maintenance of Property

 

9.1       Subject
to the Permitted Encumbrances set forth in Schedule “C” to the Agreement, the Payor shall do all things and make all
payments necessary or appropriate to maintain the right, title and interest of the Payor and Payee in the Property and the Mineral
Products and to maintain the Property in good standing. The Payor shall be entitled, from time to time, to abandon or surrender
or allow to lapse or expire any part or parts of any mineral claims or mining leases relating to or comprising the Property if
the Payor determines, acting reasonably, that such part or parts are not economically viable or otherwise have insufficient value
to warrant continued maintenance provided that the Payor first offers the right to the Payee to have such surrendered interests
transferred to the Payee without charge and in good standing for not less than 6 months after transfer.

 

9.2       Notwithstanding
section 7(a), the Payor shall not abandon or surrender, or allow to lapse or expire, any mining claims or leases relating
to or comprising the Property for the purpose of permitting any third party to restake such claim and avoid the NSR Royalty; and
if the Payor, or any person with which the Payor does not deal at arm’s length or joint venturer, restakes any expired claims
or leases relating to or comprising the Property, this Agreement shall include any such new claims.

 

9.3       Payor
will not sell, assign or transfer the Property or any right, title or interest that it now has or may hereafter have therein, in
whole or in part, to any person, firm or corporation, or agree to do so or grant any person, firm or corporation an option or right
to acquire the Property or any right, title or interest that it now has or may hereafter have therein, in whole or in part, unless
the intended transferee first provides an acknowledgement in writing to the Payee, in form and content to the reasonable satisfaction
of the Payee, that it assumes this Agreement and the obligations of the Payor hereunder as if a named party in the first instance.

 

		10.	Audit

 

The Payee may request an audit of the sales
and related financial records maintained by the Payor be conducted to verify the calculation of the NSR Royalty for a particular
calendar quarter. The audit will be conducted by an independent auditor acceptable to the Payor and Payee. The Payee requesting
such audit will bear the full cost and expense of the audit unless it is determined that the NSR Products Royalty calculated by
the Payor understated the actual amount due by more than 3%, in which case the Payor will pay all costs and expenses of the audit.
The Payor will forthwith pay any deficiency to the Payee and the Payee will forthwith repay any overpayment to the Payor.

 

		11.	Arbitration

 

Any dispute arising out of or related to
any report, payment, calculation or audit in respect of the NSR Royalty, not resolved by the reasonable cooperation of the parties
will be resolved solely by Arbitration. No error in accounting or in the interpretation of the Agreement will be the basis for
a claim of breach of fiduciary duty, or the like, or give rise to a claim for exemplary or punitive damages or for termination
or rescission of the Agreement. For the purposes hereof Arbitration shall be conducted as follows

 

		(a)	Single Arbitrator

 

Any matter in dispute hereunder
will be determined by a single arbitrator to be appointed by the Participants.

 

 

 

 

    	 	25	 

     

    

 

		(b)	Prior Notice

 

Any Participant may refer any such
matter to arbitration by notice to the other Participant and, within 10 Business Days after receipt of such notice, the Participants
will agree on the appointment of an arbitrator. No person will be appointed as an arbitrator hereunder unless such person agrees
in writing to act.

 

		(c)	No Agreement

 

If the Participants cannot agree
on a single arbitrator as provided in section 11(a), or if the person appointed is unwilling or unable to act, either Party
may submit the matter to arbitration before a single arbitrator in accordance with the Commercial Arbitration Act, of British
Columbia, as amended from time to time (in this article, the “Rules”).

 

		(d)	Conduct of Arbitration

 

Except as otherwise specifically
provided in this section, an arbitration hereunder will be conducted in English in accordance with the Rules. The arbitrator will
fix a time and place in St. John’s for the purpose of hearing the evidence and representations of the Participants and he
or she will preside over the arbitration and determine all questions of procedure not provided for under the Rules or this Article 11.
After hearing any evidence and representations that the Participants may submit, the arbitrator will make an award and reduce the
same to writing and deliver one copy thereof to each of the Participants. The decision of the arbitrator will be made within 45 days
after his or her appointment, subject to any reasonable delay due to unforeseen circumstances. The expense of the arbitration will
be paid as specified in the award. The arbitrator’s award will be final and binding upon each of the Participants.

 

		12.	Survival on Transfer

 

The Payee may assign the NSR Royalty. The
NSR Royalty creates a direct real property interest in the Mineral Products and the Property in favour of the Payee and is not
merely contractual in nature, provided such interest shall be satisfied from time to time in respect of any particular Mineral
Products by the payment to Payee of the Royalty in respect thereof. This Agreement shall continue in perpetuity, it being the intent
of the parties hereto that the NSR Royalty shall constitute a covenant running with the Property and all successions thereof, whether
created privately or through governmental action, and including, without limitation, any leasehold interest.

 

		13.	Registration of Interest

 

The Payee shall have the right from time
to time to register or record notice of this Agreement and the NSR Royalty, any other documents relating to or contemplated by
the foregoing and any caution or other title document, against title to the Property or elsewhere, and Payor shall cooperate with
all such registrations and recordings and provide its written consent or signature to any documents and do such other things from
time to time as are necessary or desirable to effect all such registrations or recordings or otherwise to protect the interests
of Payee.

 

 

 

 

 

    	 	26	 

     

    

 

SCHEDULE “E”

 

CONFIDENTIALITY EXCEPTIONS

 

Notwithstanding any statement contained
in the Agreement or previous agreements between the parties, the Optionor shall have the right to disclose the contents of the
Agreement or previous agreements between the parties, and any amendments thereto, to the following persons:

 

		1)	Bruce D. Strachan and Elizabeth K. Strachan as trustees of the Bruce and Elizabeth Strachan Revocable
Living Trust dated 7-25-2007.

 

		2)	David K. Strachan, son of the Bruce D. Strachan and Elizabeth K. Strachan and successor trustee
to the Strachan Trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	27Exhibit 10.2

 

AGREEMENT TO CONVERT DEBT

 

 

THIS AGREEMENT
is made and entered into effective the 28th day of December, 2020, by and between ATHENA SILVER CORPORATION, a
Delaware corporation ("Athena" or the "Company"), and John C. Power (Claimant").

 

WITNESSETH

 

WHEREAS, the
Company, or an affiliate of the Company, has an outstanding debt with Claimant in the particulars hereinbelow set forth; and

 

WHEREAS, the
Company desires to satisfy that obligation by the issuance to Claimant of shares of common stock of the Company ("Shares");
and

 

WHEREAS, Claimant
is willing to accept said Shares in lieu of cash or money in payment of Athena’s obligation to Claimant;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinbelow set forth, and for such good and other valuable consideration,
the receipt and sufficiency whereof is hereby acknowledged, the parties agree as follows:

 

SECTION I.:     CONVERSION
OF DEBT

 

A.       Claimant
and Athena affirm and agree that as of the date of this Agreement, Athena is indebted to Claimant for $96,500 in accrued but unpaid
management fees during the years of 2019 and 2020.

 

B.       Claimant,
for his/its successors in interest and assigns, agrees to accept, as payment in full of $96,500 in accrued but unpaid invoice(s)
for the periods stated in Section I(A) an aggregate of 2,144,444 Shares of Common Stock, valued at $0.045 per Share. It is understood
that Claimant's acceptance of the 2,144,444 Shares in payment of the Indebtedness shall not discharge or otherwise satisfy the
outstanding indebtedness and obligation of Athena to Claimant in excess of the Indebtedness.

 

C.       Claimant
agrees that upon delivery to Claimant by Athena of a certificate or certificates representing 2,144,444 Shares, said Shares being
validly issued, fully paid and non-assessable, and Claimant's acceptance of such Shares, Claimant, for its successors in interest
and assigns, agrees to release and forever discharge Athena, its officers, directors, shareholders, affiliates, employees and agents,
from any liability, payment or obligation whatsoever in connection with or arising out of the Indebtedness. Claimant's acceptance
of such Shares shall constitute a full and complete release, settlement and discharge of any of Athena’s obligation to Claimant,
in connection with the Indebtedness, without the necessity of Claimant executing any further documentation, release or settlement
agreement; it being the express understanding of the parties hereto that this Agreement, upon its performance, shall constitute
such evidence of release and discharge.

 

D.       With
respect to accepting the Shares in lieu of other forms of payment of the Indebtedness, Claimant represents and warrants as follows:

 

1.       Claimant
fully understands that Athena has a limited net worth.

 

 

 

 

    	 	1	 

     

    

 

2.       Claimant
acknowledges receipt of such information as he deems necessary or appropriate as a prudent and knowledgeable investor in evaluating
the conversion of the obligation. The Claimant acknowledges that Athena has made available to him the opportunity to obtain additional
information to evaluate his status as an unsecured creditor and the alternatives available to him. The Claimant acknowledges that
he had an opportunity to ask questions of Athena and to the extent he availed himself of such opportunity, he received satisfactory
answers from Athena, or its affiliates.

 

3.       Claimant
understands that there exists inherent risks in accepting the Shares in lieu of payment of the obligation, which risks include,
but are not limited to, the lack of liquidity of the Shares, and the Company's history of unprofitable operations. Claimant agrees
to accept all risks associated with converting the Indebtedness and accepting the Shares in lieu of payment thereof.

 

SECTION II:     REPRESENTATIONS
AND WARRANTIES BY ATHENA:

 

Athena represents
and warrants to Claimant that, as of the date of this Agreement, and as of the date of closing:

 

A.       Organization
and Corporation Power.

 

The Company is a corporation
duly organized, validly existing, and in good standing under the laws of the State of Delaware; and has all required corporate
power and authority to own its property and to carry on its business as now being conducted, and to carry out the transactions
contemplated hereby.

 

B.       Authorization.

 

1.       The
execution and delivery of this Agreement do not, and the consummation of the transactions contemplated hereby will not, violate
any provision of any charter, articles of incorporation, by-law, mortgage, lien, lease, agreement, contract, instrument, order
judgment, or decree to which the Company is a party, or by which it is bound, and will not violate any other restriction of any
other kind or character of which Company is subject.

 

2.       The
Directors of the Company have taken or will take all action required by law, the Company's Articles of Incorporation and Bylaws,
or otherwise, to authorize execution and delivery of this Agreement, the shares and the consummation of the transactions described
herein.

 

3.       This
Agreement, upon execution and delivery in accordance herewith, is the valid and binding obligation of the Company, enforceable
in accordance with its terms, subject to the terms of bankruptcy and similar laws, and any rules and regulations adopted thereunder.
The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate and other action.

 

C.       Capitalization.

 

There are sufficient
authorized Shares of the Company to cover the issuance of all shares to be issued and sold pursuant to this Agreement. There are
no restrictions on the transferability of shares of the Company's Shares imposed by or pursuant to the Company's Articles of Incorporation,
or the Company's Bylaws, or by agreement to which the Company is a party, except for restrictions imposed by or on account of federal
and state securities laws.

 

SECTION III.:   REPRESENTATIONS AND
WARRANTIES BY CLAIMANT

 

Claimant represents
and warrants to Athena that, as of the date of this Agreement, and as of the date of closing, the following are true and accurate
to its knowledge and belief:

 

 

 

 

    	 	2	 

     

    

 

A.       No
Other Information Relied Upon.

 

Claimant represents,
warrants and agrees that he has been afforded the opportunity to make, and has made, all such investigation of Athena and its financial
condition, business, affairs and prospects as he deems appropriate. Claimant acknowledges receipt of such information as he deems
necessary or appropriate as a prudent and knowledgeable investor in evaluating the exchange of the shares. Claimant acknowledges
that Athena has made available to him the opportunity to obtain additional information to evaluate the merits and risks of this
exchange. Claimant acknowledges that he has had the opportunity to ask questions of Athena, and, to the extent he availed himself
such opportunity, he received satisfactory answers from Athena, its affiliates, associates, officers and directors.

 

B.       Nature
of the Risk.

 

Claimant represents,
warrants and agrees that he understands that Athena’s business is, by its nature, speculative; that Claimant is aware that
the financial resources of Athena are extremely limited and that it is very likely that the Company will require additional capital,
and there is no assurance that such capital will be available if necessary; that Claimant is familiar with the high degree of risk
that is involved in the Company's business, and that Claimant is financially able and willing to accept the substantial risk involved
in such investment, including the risk of loss of the entire amount invested.

 

C.       Unregistered
Shares.

 

Claimant represents
that he understands that the Athena shares of common stock have not been registered for sale under federal or state securities
laws and that said securities are being issued to Claimant pursuant to a claimed exemption from the registration requirements of
such laws which is based upon the fact that said securities are not being offered to the public. Claimant understands that in order
to satisfy such requirement he must be acquiring the shares with no view to making a public distribution of said securities and
the representations and warranties contained in this Section III are given with the intention that Athena may rely thereon
for purposes of claiming such exemption; and that he understands that he must bear the economic risk of his investment in the securities
for a substantial period of time, because the securities have not been registered under the federal or state securities laws, and
cannot be sold unless subsequently registered under such laws, or unless an exemption from such registration is available.

 

D.       Securities
Acquired for Investment; Limitations on Dispositions.

 

Claimant represents
that he is acquiring the securities for his own account and for investment and not with a view to, or for sale in connection with,
any distribution thereof in violation of the Securities Act of 1933, as amended. Claimant agrees that the stock will not be offered
for sale, sold or otherwise transferred for value and that no transfer thereof will be made by the Claimant unless (a) a registration
statement with respect thereto has become effective under the Securities Act of 1933, as amended, or (b) there is presented to
the Company an opinion of counsel for Claimant reasonably satisfactory to the Company that such registration is not required, or
(c) there is presented to the Company a letter from the Securities and Exchange Commission (said Commission having been informed
of all relevant circumstances) to the effect that in the event either the securities are transferred by Claimant without such registration
the Commission or the staff will not recommend any action. Claimant further agrees that the securities will not be offered for
sale, sold or otherwise transferred unless, in the opinion of legal counsel for Athena, such sale or disposition does not and will
not violate any provisions of any federal or state securities law or regulation. Claimant consents that any transfer agent of the
Company may be instructed not to transfer any of the securities unless it receives satisfactory evidence of compliance with the
foregoing provisions and that there may be endorsed upon any certificates (or instruments issued in substitution therefor), the
Company's regular legend regarding the sale of restricted securities.

 

SECTION IV.:   MISCELLANEOUS

 

A.       Payment
of Expenses of Prevailing Party in Dispute.

 

Unless otherwise specifically
provided for herein, in the event that there is a dispute concerning this Agreement, including, without limitation, the issue of
compliance with any term of this Agreement, the court may in its discretion, direct that the prevailing party shall be entitled
to reimbursement from the other party of reasonable attorneys' fees and other expenses incurred in resolving the said dispute.

 

 

 

 

    	 	3	 

     

    

 

B.       Survival
and Incorporation of Representations.

 

The representations,
warranties, covenants and agreements made herein or in any certificates or documents executed in connection herewith shall survive
the execution and delivery thereof, and all statements contained in any certificate or other document delivered by the Company
hereunder or in connection herewith shall be deemed to constitute representations and warranties made by the Company in this Agreement.

 

C.       Amendments
and Waivers.

 

This Agreement may
not be amended, nor may compliance with any term, covenant, agreement, condition or provision set forth herein be waived (either
generally or in a particular instance and either retroactively or prospectively) unless such amendment or waiver is agreed to in
writing by all parties hereto.

 

D.       Governing
Law.

 

This Agreement shall
be construed and enforced in accordance with and governed by the laws of the State of Colorado.

 

E.       Counterparts.

 

This Agreement may
be executed by telex, telecopy or other facsimile transmission, and such facsimile transmission shall be valid and binding to the
same extent as if it were an original. Further, this Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall together constitute one agreement.

 

F.       Severability.

 

Wherever there is
any conflict between any provision of this Agreement and any statute, law, regulation or judicial precedent, the latter shall prevail,
but in such event the provisions of this Agreement thus affected shall be curtailed and limited only to the extent necessary to
bring it within the requirement of the law. In the event that any part, section, paragraph or clause of this Agreement shall be
held by a court of proper jurisdiction to be invalid or unenforceable, the entire Agreement shall not fail on account thereof,
but the balance of the Agreement shall continue in full force and effect unless such construction would clearly be contrary to
the intention of the parties or would result in unconscionable injustice.

 

G.       Entire
Agreement.

 

This Agreement constitutes
the entire agreement of the parties hereto with respect to the subject matter hereof. There are no representations, warranties,
conditions, or obligations except as herein specifically provided. Any amendment or modification hereof must be in writing.

 

IN WITNESS WHEREOF,
the parties have signed the Agreement the date and year first above written.

 

 

ATHENA SILVER CORPORATION

a Delaware corporation

 

 

By:                                                                              

John Power, President

 

 

CLAIMANT:

 

By:                                                                              

 

 

 

    	 	4

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