Document:

INVESTMENT AND PARTICIPATION AGREEMENT

THIS AGREEMENT made as of the 20th day of February, 1996

AMONG:  MINCO MINING AND METALS CORPORATION, a body corporate incorporated under
        the laws of  British  Columbia, with an office at 1870-401  West Georgia
        Street, Vancouver, B.C., V6B 5A1 ("Minco")

AND:    TECK CORPORATION, a body corporate incorporated under the laws of
        Canada, with an office at 700 - 200 Burrard Street,  Vancouver,  British
        Columbia, V6C 3L-9 ("Teck")

AND:    COMINCO LTD., a body corporate incorporated under the laws of Canada,
        with an office at 500 - 200 Burrard Street, Vancouver, British Columbia,
        V6C 3L7 ("Cominco")

WHEREAS:

(A) Pacific  Canada  Resources  Inc.  ("PCR") has entered into an investment and
participation  agreement  dated as of February  19, 1996 (the  "Teck-Cominco-PCR
Agreement")  with Teck and Cominco under which PCR has granted certain rights to
Teck and Cominco in exchange for them making a private  placement in a specified
company  which the parties have agreed will be Minco,  subject to the Closing of
this Agreement.

(B) PCR has entered into an investment and  participation  agreement dated as of
February 19, 1996 (the "Minco-PCR Agreement") with Minco which provides, amongst
other things, that for a period of time commencing on the date of this Agreement
and expiring on March 1, 2000, extendable upon agreement of the Parties thereto,
Minco  shall have the  exclusive  right to acquire  from PCR, at cost and in the
manner  therein 2 2 described,  all right,  title and interest in and to any new
base or precious metal Property which PCR identifies and in respect to which PCR
has acquired an NCI or in respect to which PCR has a reasonable  expectation  of
acquiring an NCI.

(C) Under  Chinese law a foreigner may acquire an interest in a joint venture or
other  recognized  Chinese  vehicle  which in turn holds a mineral  property  in
China;

(D) Minco intends to acquire indirect  interests in mineral  properties in China
and the right to exploit mineral properties in China;

(E) This Agreement provides for the manner in which Cominco and Teck may acquire
part of Minco's  interest in any NCI or Property (both as defined herein) or any
mineral property that is acquired;

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(F) At the same time Minco will require working  capital,  Teck and Cominco wish
to invest,  and Minco has agreed to grant certain  rights to Teck and Cominco in
consideration of such investments;

(G) Minco also  intends to raise  capital by public  financing  to generate  the
funds  necessary to advance one or more Properties to the stage of a preliminary
feasibility report;

(H) The parties have agreed that the interest to be acquired by Teck and Cominco
in Minco's  interest in an NCI or a Property  may be increased in through a good
faith negotiation outside the terms of this Agreement at some future time; and

(I) The parties wish to record their respective rights and obligations.

 THEREFORE the Parties agree as follows:

                                     PART 1
                                  CONSTRUCTION

DEFINITIONS

1.1 In this Agreement,  except as otherwise expressly provided or as the context
otherwise requires:

        ACQUIRED  PROPERTY  means a  Property  in respect of which (i) Minco has
entered into a formal joint  venture  agreement  (as such term is  understood in
China) with a Chinese entity pursuant to which Minco has the right to acquire an
NCI, and the Chinese entity has applied for approval of the appropriate  Chinese
Governmental  Authority  pursuant  to a request  by Minco to  negotiate  a joint
venture  contract with Minco;  or (ii) Minco  receives a New Property  Notice as
contemplated in Section 6.3 of the Minco-PCR Agreement.

        AFFILIATE  of a Party has the meaning  ascribed to it in the  Securities
Act (British Columbia).

        BUSINESS  DAY means a day that is not a Saturday,  Sunday or a statutory
holiday in British Columbia.

        CLOSING  means the  closing of the  purchase  and sale of the  Purchased
Securities.

        CLOSING DATE means the fifth  Business Day following the date upon which
Minco receives written  notification from the Vancouver Stock Exchange that this
Agreement  and the  Minco-PCR  Agreement  have been  accepted for filing or such
other date as the Parties may agree upon.

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        COMMITMENT  NOTICE means a notice  delivered  to Minco by the  Investors
pursuant  to  Section  6.13 or 6.17 that they  intend to proceed  with  programs
contemplated  in a Final  Feasibility  Report  and they  have  commitments  from
lenders for the debt portion of the project financing, as evidenced by certified
copies of the lenders'  commitment  letters to the Investors  delivered with the
notice.

        COMMON SHARE means a common share, as constituted as at the date of this
Agreement, in the capital of Minco.

        COSTS means cash  outlays,  expenses,  obligations  and  liabilities  of
whatever kind or nature, but without duplication.

        DESIGNATED  INVESTOR  means,  in  the  case  of a base  metal  Property,
Cominco, and in all other cases, Teck.

        DEVELOPMENT  PROPERTY  means an  Acquired  Property  that the  Investors
determine,  pursuant to Section 6.1,  should be governed by this  Agreement  and
categorize as a Development Property pursuant to Section 6.4.

        EARN-IN PERIOD means the period of time beginning on the date hereof and
ending on the date the Earn-In Rights terminate in accordance with Section 6.6.

        EARN-IN  RIGHTS  means  those  rights to earn an  Interest  in an NCI in
respect of an Acquired  Property,  more  particularly set out in Section 6.8 and
6.14.

        ENCUMBRANCE means a security interest, mortgage, pledge,  hypothecation,
lien,  easement,  right-of-way,  encroachment,  covenant,  condition,  right  of
re-entry,  lease,  licence,  assignment,  option,  claim or other title  defect,
encumbrance or charge whatsoever, whether or not registered or registrable.

        EXERCISE NOTICE means, with respect to an Acquired  Property,  a written
notice  delivered by an Investor that it intends to proceed with the preparation
of a Final Feasibility Report under Part 6.

        EXPENDITURES  means  all Costs  spent or  incurred  or  deemed  incurred
hereunder  by a Party  in  connection  with a  Property  including:  (i)  monies
expended in  maintaining  the Property in good  standing,  including  any monies
expended  in doing and  filing  assessment  work and any  required  vendor's  or
royalty  payments;  (ii) monies  expended in exploring the  Property,  including
doing geophysical,  geochemical and geological surveys,  drilling,  assaying and
metallurgical  testing;  (iii) monies expended in acquiring assets for use on or
in connection with the Property; (iv) monies expended in paying the fees, wages,
salaries  and  travelling  expenses of all  employees  of a Party or  associated
entities  engaged in work with  respect to and for the benefit of the  Property,
together  with an amount for fringe  benefits  usually  paid by such Party;  (v)

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monies expended in paying for the food,  lodging and other  reasonable  needs of
the persons  referred to in clause (iv)  hereof;  (vi) a charge equal to (A) 10%
before the date of a Commitment Notice,  and (B) 3% thereafter,  for unallocable
overhead and head office expenses and all other expenses relating to supervision
and  management  of all work done with  respect  to and for the  benefit  of the
Property of all  Expenditures,  other than the charge referred to in this clause
(vi);  (vii)  monies  expended or set aside for  environmental  remediation  and
reclamation;  (viii)  all Costs  related  to the  preparation  of  programs  and
reporting as to the results  thereof;  (ix) all Costs related to the preparation
of a Final or Preliminary  Feasibility Report and a production program;  (x) all
Costs  related  to  construction  and  development  programs  up  to  commercial
production;  and  (xi)  all  Costs  related  to  operations  after  the  date of
commencement of commercial production.

        EXPLORATION  PROPERTY  means an  Acquired  Property  that the  Investors
determine,  pursuant to Section 6.1,  should be governed by this  Agreement  and
which has been categorized as an Exploration Property pursuant to Section 6.4.

        FINAL FEASIBILITY REPORT means a detailed report showing the feasibility
of placing a Property or part thereof into  commercial  production and including
at least  the  following  information:  (i) a  description  of that  part of the
Property to be covered by the  proposed  mine;  (ii) the  estimated  recoverable
reserves of minerals and the estimated  composition and content  thereof;  (iii)
the proposed procedure for development,  mining and production;  (iv) results of
ore  amenability  tests (if any);  (v) the nature  and extent of the  facilities
proposed to be acquired or constructed and, if the size,  extent and location of
the ore body makes mill facilities  feasible, a preliminary design for such mill
facilities;  (vi) the total costs, including capital budget, reasonably required
to purchase,  construct  and install all  structures,  machinery  and  equipment
required  for the  proposed  mine,  including  a schedule of timing of such cost
requirements;  (vii) environmental impact studies and costs thereof;  (viii) the
period in which it is  proposed  the  Property  shall be brought  to  commercial
production;  (ix) such other data and information as are reasonably necessary to
substantiate  the existence of a mineral deposit of sufficient size and grade to
justify  development of a mine, taking into account all relevant  business,  tax
and other economic considerations;  and (x) working capital requirements for the
initial four months of operation of the Property as a mine or such longer period
as may be reasonably justified in the circumstances.

        FIRST RECOVERY DATE means the date on which the first of either Minco or
an Investor recovers its Prior Costs from Net Proceeds.

        GOVERNMENTAL  AUTHORITY means a federal,  state,  provincial,  regional,
municipal or local  government  or  subdivision  thereof  including an entity or
person exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government or subdivision.

        INTEREST  means an undivided  interest in and to an NCI in respect of an
Acquired Property held by Minco or an Investor, as the case may be.

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        INVESTORS means Teck and Cominco and INVESTOR means any one of them.

        JOINT VENTURE AGREEMENT means the agreement to be entered into among the
Parties pursuant to Section 6.22 defining the respective  rights and obligations
with respect to the joint  ownership  (directly or indirectly) of, and operation
of activities on, an Exploration Property or Development  Property,  as the case
may be, once an Investor has earned an Interest.

        MINIMUM  PERCENTAGE  means with  respect to the  Investors,  50% of that
percentage  of the  issued  common  shares  of Minco  issued  to both  Investors
pursuant to Section 3.1 as compared to the total issued  common  shares of Minco
at the Closing Date.

        NCI,  with  respect to a Property,  means a direct or indirect  interest
therein that is available for a non-Chinese entity or foreigner to acquire under
Chinese  law  and is held by or  available  to  Minco,  including  shares,  or a
contractual  right to acquire shares,  in a Chinese company that owns or holds a
direct or indirect interest in the Property.

        NET  PROCEEDS  means that amount  which  remains  after the initial cash
flows available or  attributable to the Parties'  Interest from sales of product
from the mine have been used to pay operating, marketing and distribution costs;
taxes (other than income taxes) and  royalties;  any advances  which a Party has
made to cover  sustaining  capital  requirements or operating  losses during the
"cost  recovery"  period  contemplated  in Section 6.23 or Section 6.24; and the
administrative  charge  contemplated  in  Section  (vi)(B)  of the  Expenditures
definition  on  costs  incurred  from  the date of  commencement  of  commercial
production.

        PARTIES means two or more of Minco, Teck and Cominco and PARTY means any
one of  them.  PERSON  means  an  individual,  corporation,  partnership,  joint
venture,  association,  trust or  unincorporated  organization  or any  trustee,
executor, administrator or other legal representative, or government official or
ministry.

        PRELIMINARY  FEASIBILITY  REPORT  means an  intermediate  level  report,
prepared in accordance with Canadian industry standards, having as its objective
a determination  whether a project  justifies a detailed  analysis and cost of a
Final  Feasibility  Report,  and  identifying  aspects of the  project  that are
critical to its viability and that necessitate in-depth  investigations  through
functional  or support  studies and will be expected  to include  evaluation  of
estimated  reserves,   preliminary  mining  methods  and  equipment  selections,
preliminary  metallurgical  analysis,  workable flow sheet for a process  plant,
support   services  and  facilities,   manpower   sources  and  costs,   project
implementation  schemes,  market evaluation,  environmental and cultural issues,
and a  preliminary  financial  analysis  based on investment  costs,  production
costs, and market potential.

        PRIME RATE means,  at any  particular  time, the annual rate of interest
announced from time to time by Bank of Montreal, main branch, Vancouver, British
Columbia as a reference  rate then quoted as being in effect on Canadian  dollar
loans made in Canada to its most  creditworthy  commercial  customers  and as to

<PAGE>

which  from time to time a  certificate  of an  officer  of such  Bank  shall be
conclusive.

        PRIOR COSTS with respect to a Property means the  Expenditures  incurred
by Minco or Investor at the time incurred but before the date of commencement of
commercial production, all stated in United States dollars.

        PROPERTY means a mineral property in China by whatever instrument it may
be held  and any  interest,  contractual  right or other  right  to  acquire  an
interest therein and includes an Acquired Property,  an Exploration Property and
a Development Property.

        PURCHASED  SECURITIES  means the Units,  comprised of common  shares and
warrants, to be issued to the Investors pursuant to Section 3.1 hereof.

        REQUISITE  APPROVALS  means the  approvals of stock  exchanges and other
regulatory  authorities having  jurisdiction to review and grant approval of the
transactions contemplated by this Agreement.

        SECOND  RECOVERY  DATE means the date on which the last of Minco and the
Investors recovers its Prior Costs from Net Proceeds.

        UNDERLYING  AGREEMENT  means  any  agreement  in  existence  at the date
hereof,  or that comes into existence after the date hereof,  entitling Minco to
acquire an NCI in respect of an Acquired Property.

        UNIT means one unissued  common share of Minco  together  with one fifth
(1/5) of a share purchase warrant, one full warrant entitling the holder thereof
to purchase one  additional  common share of Minco  pursuant to the terms of the
Subscription Agreement attached hereto as Schedule I.

INTERPRETATION

1.2 For all purposes of this Agreement,  except as otherwise  expressly provided
or as the context otherwise requires:

        (a)  "THIS  AGREEMENT"  means  this  agreement  as  from  time  to  time
supplemented or amended by one or more  agreements  entered into pursuant to the
applicable  provisions of this  Agreement  together with all schedules and other
attachments to it;

        (b) the headings are for convenience only and shall not be used to
interpret this Agreement;

<PAGE>

        (c) the word "INCLUDING",  when following any general term or statement,
is not to be construed as limiting the general term or statement to the specific
items or  matters  set  forth or to  similar  items or  matters,  but  rather as
permitting  the general term or statement to refer to all other items or matters
that could  reasonably  fall within the broadest  possible  scope of the general
term or statement;

        (d) an  accounting  term not  otherwise  defined  herein has the meaning
assigned to it, and every  calculation  to be made  hereunder is to be made,  in
accordance with generally accepted accounting principles in Canada;

        (e) except where otherwise stated, all references to currency mean
United States currency;

        (f) a reference to a statute  includes all regulations  made thereunder,
all  amendments to the statute or regulations in force from time to time and any
statute  or  regulation   that   supplements  or  supersedes   such  statute  or
regulations;

        (g) a reference to a Part means a Part of this  Agreement and the symbol
"Section " followed  by a number or some  combination  of  numbers  and  letters
refers to the provision of this Agreement so designated and the symbol "Section"
followed  by a  letter  within  a  provision  refers  to a  clause  within  such
provision;

        (h) a reference to a person includes a successor to that person;

        (i) words importing the masculine gender include the feminine or neuter,
words in the singular  include the plural,  words  importing a corporate  entity
include individuals and vice versa;

        (j) a reference to "APPROVAL", "AUTHORIZATION"or "CONSENT" means written
approval, authorization or consent; and

        (k) references to payments to be made by certified cheque will be deemed
to contemplate  payment by certified cheque drawn on, or bank draft issued by, a
Canadian  chartered  bank,  payable at par in  Vancouver,  British  Columbia and
payable to the party entitled to receive payment or its counsel, in trust.

SCHEDULES

1.3      The following schedules are incorporated into this Agreement by
reference:

Schedule     Description                                            Reference
---------    ------------------------------------------------  -----------------

    A        Capital of Minco  Acquire Securities              Section 2.3(f)
    B        Right to aquire Interests in NCI's or
              Properties of Minco                              Section 2.3(f)
    C        Minco's Financial Statements                      Section 2.3(n)

<PAGE>

Schedule     Description                                          Reference
---------    ----------------------------------------------  -----------------

    D        List and Descrrlying Agreements                 Section 2.3(m)
    E        Form of Consent and Waiver                      Section 2.4(c)(ii)
    F        Minco's Material Liabilities
    G        Terms of Joint Venture                          Section 6.20
    H        Net Smelter Return Royalty                      Section 6.22
    I        Purchased SecuSection 3.1 ription Agreement

GOVERNING LAW

1.4 This  Agreement  shall be construed and governed by the laws in force in the
Province  of  British  Columbia  and the  courts  of said  Province  shall  have
exclusive  jurisdiction  to hear and determine all disputes  arising  hereunder.
Each Party  irrevocably  attorns to the jurisdiction of said courts and consents
to the  commencement of proceedings in such courts.  This paragraph shall not be
construed to affect the rights of a Party to enforce a judgment or award outside
the said Province,  including the right to record or enforce a judgment or award
in any jurisdiction in which the Property is situated.

SEVERABILITY

1.5 If any provision of this  Agreement is or shall become  illegal,  invalid or
unenforceable,  in whole or in part, the remaining provisions shall nevertheless
be and remain valid and subsisting and the said  remaining  provisions  shall be
construed as if this Agreement had been executed without the illegal, invalid or
unenforceable portion.

                                     PART 2
                    REPRESENTATIONS, WARRANTIES AND COVENANTS

REPRESENTATIONS AND WARRANTIES OF TECK

2.1 Teck represents and warrants to Minco, as representations  and warranties on
which Minco has relied in entering  into this  Agreement  and which will survive
the execution  hereof,  that: (a) Teck is a body  corporate  duly  incorporated,
organized  and  validly   subsisting   under  the  laws  of  its   incorporating
jurisdiction  and has full power and  authority  to carry on its business and to
enter  into this  Agreement  and any  agreement  or  instrument  referred  to or
contemplated by this  Agreement;  (b) neither the execution and delivery of this
Agreement nor any of the agreements  referred to herein or contemplated  hereby,
nor the consummation of the transactions hereby or thereby contemplated, violate
or result in the breach of its constating documents; (c) this

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Agreement  has been duly  executed and  delivered  by, and  constitutes a legal,
valid and binding  obligation of Teck enforceable  against it in accordance with
its terms; and (d) Teck is acquiring the Purchased Securities as principal.

REPRESENTATIONS AND WARRANTIES OF COMINCO

2.2 Cominco represents and warrants to Minco, as representations  and warranties
on which Minco has relied in entering into this Agreement and which will survive
the execution hereof, that:

        (a) Cominco is a body corporate duly incorporated, organized and validly
subsisting under the laws of its  incorporating  jurisdiction and has full power
and authority to carry on its business and to enter into this  Agreement and any
agreement or instrument referred to or contemplated by this Agreement;

        (b) neither the execution and delivery of this  Agreement nor any of the
agreements  referred to herein or contemplated  hereby,  nor the consummation of
the transactions hereby or thereby contemplated, violate or result in the breach
of its constating documents;

        (c)  this  Agreement  has been  duly  executed  and  delivered  by,  and
constitutes a legal, valid and binding obligation of Cominco enforceable against
it in accordance with its terms; and

        (d) Cominco is acquiring the Purchased Securities as principal.

 REPRESENTATIONS AND WARRANTIES OF MINCO

2.3  Minco   represents   and  warrants  to  each  of  Teck  and   Cominco,   as
representations  and  warranties  upon which  Teck and  Cominco  have  relied in
entering into this Agreement,  which will be true at the Closing of the purchase
of the Purchased Securities and which will survive the execution hereof, that:

        (a) it is a corporation duly organized and validly  subsisting under the
laws of  British  Columbia  and has full  power  and  authority  to carry on its
business  and to enter  into this  Agreement  and any  agreement  or  instrument
referred to in or contemplated by, this Agreement;

        (b) neither the execution and delivery of this  Agreement nor any of the
agreements  referred to herein or contemplated  hereby,  nor the consummation of
the transactions  hereby or thereby  contemplated,  (i) violate or result in the
breach of its constating  documents or (ii) conflict with,  result in the breach

<PAGE>

of or  accelerate  the  performance  required by any  agreement to which it is a
party;

        (c) no proceedings are pending for and Minco is unaware of any basis for
the institution of any  proceedings  leading to the dissolution or winding-up of
Minco  or the  placing  of it into  bankruptcy  or  subject  to any  other  laws
governing the affairs of insolvent persons;

        (d) Schedule A accurately sets out the authorized and issued capital of
Minco;

        (e)  this  Agreement  has been  duly  executed  and  delivered  by,  and
constitutes a legal, valid and binding  obligation of Minco enforceable  against
it in accordance with its terms;

        (f) no person, other than the Investors or as set out in Schedules A and
B, has any right, agreement or option, present or future, contingent or absolute
or any right capable of becoming a right, agreement or option

               (i) to require  Minco to issue any further or other shares in its
capital or any security or other  instrument  convertible or  exchangeable  into
shares  in its  capital,  or to  convert  or  exchange  any  security  or  other
instrument  into,  with or for  shares  in its  capital,  (ii) for the  issue or
allotment of any of the authorized but unissued shares in its capital,  (iii) to
require Minco to create any  additional  shares in its capital,  (iv) to require
Minco to purchase, redeem or otherwise acquire any of the issued and outstanding
shares in its  capital,  (v) to require  Minco to  distribute  any or all of its
assets, or to declare any dividends,  (vi) for the purchase of any assets or the
acquisition  of any  interest  in a Property  or an NCI, or (vii) to purchase or
otherwise acquire any securities of Minco;

        (g) no finder's fees,  commission or financial services fees of any type
whatsoever are payable by Minco in connection with the transactions contemplated
by this  Agreement  except as will be disclosed  to and agreed by the  Investors
prior to the Closing Date, such agreement not to be unreasonably  withheld,  and
not to exceed the regulatory maximum permitted;

        (h) the financial  statements of Minco as at and for the financial  year
ended December 31, 1995 attached as Schedule C present  fairly,  in all material
respects,  the  financial  position  of Minco as at  December  31,  1995 and the
results of  operations  and the changes in financial  position for the year then
ended in  accordance  with Canadian  generally  accepted  accounting  principles
applied on a consistent basis and do not omit to state any material fact that is
required by generally accepted accounting  principles or by applicable law to be
stated  or  reflected  therein  or which  is  necessary  to make the  statements
contained  therein not misleading and there has been no material  adverse change
in the financial affairs of Minco;

        (i) since the end of its most recently  completed fiscal year, Minco has
carried on its business in the ordinary and normal  course of the routine  daily
affairs of such business.  Since such date, there has been no material change in
the business, operations, affairs or conditions of Minco,

<PAGE>

financial  or  otherwise,  including  any  change  arising  as a  result  of any
legislative or regulatory change, modification,  revocation or suspension of any
material license or right to do business, fire, explosion,  accident,  casualty,
labour trouble, flood, drought, riot, storm, expropriation, condemnation, act of
God or otherwise, except changes occurring in the ordinary course of the routine
daily affairs of business,  which changes have not materially adversely affected
the  organization,  business,  properties,  prospects or financial  condition of
Minco;

        (j) no order  prohibiting  the issue and sale or resale of securities by
Minco has been issued and no proceedings for this purpose have been  instituted,
are pending, or, to the knowledge of Minco contemplated or threatened;

        (k) this Agreement and any statement furnished to Teck and Cominco by or
on behalf of Minco do not contain and will not contain any untrue  statement  of
material  fact or omit or will omit to state a material  fact  necessary to make
the statements contained herein or therein not misleading;

        (l) all taxes, assessments, levies and other amounts, the non-payment of
which could  affect  Minco's  ownership  interest or title to an NCI or Acquired
Property,  will have been duly paid,  withheld or  collected  before the Closing
Date; provided,  however, that none of the foregoing need be paid while the same
is  being  contested  in  good  faith  by  appropriate   proceedings  diligently
conducted;

        (m) Schedule D contains a complete list of all Underlying  Agreements at
the date hereof;

        (n) Minco owns,  at the date hereof,  the NCI's or has rights to acquire
an NCI in Properties as set out in the  Underlying  Agreements on Schedule D and
has the right to acquire NCI's in China;

         (o) there are no material  liabilities,  contingent  or  otherwise,  of
Minco which are not disclosed in Schedule "F" attached  hereto and Minco has not
guaranteed,  or agreed to guarantee,  any debt, liability or other obligation of
any person, firm or corporation other than as described in Schedule "F";

        (p) no person,  other than PCR, or as set out in Schedule  "A",  has any
right, agreement,  or option, present or future,  contingent or absolute, or any
right capable of becoming a right, agreement or option:

                (i) to require Minco to issue any further or other shares in its
capital or any security or other  instrument  convertible or  exchangeable  into
shares  in its  capital,  or to  convert  or  exchange  any  security  or  other
instrument  into,  with or for  shares  in its  capital;  (ii) for the  issue or
allotment of any of the authorized but unissued shares in its capital;  (iii) to
require Minco to create any  additional  shares in its capital;  (iv) to require
Minco  to  purchase,  redeem,  or  otherwise  acquire  any  of  the  issued  and
outstanding shares in its capital; (v) to require Minco to distribute any or all
of its assets, or to declare any dividends;  (vi) for the purchase of any assets
or the  acquisition  or any  interest  in a  Property,  or an NCI;  or  (vii) to
purchase or otherwise acquire any securities or Minco;

<PAGE>

        (q) the Purchased  Securities to be issued to the Investors  pursuant to
the provisions of paragraph 3, when issued, will be validly issued as fully paid
and  non-assessable  and will be free of all resale  restrictions other than the
one-year hold period imposed by the Act;

        (r) Minco is not  indebted  to any  affiliate  or director or officer of
Minco  other  than is set out in the  financial  statements  attached  hereto as
Schedule "C";

        (s) no dividends or other distribution of any shares in the capital of
Minco have been made, declared or authorized;

        (t) there is no basis for and there are no  actions,  suits,  judgments,
investigations  or  proceedings  outstanding  or pending or to the  knowledge of
Minco threatened  against or affecting Minco at law or in equity or before or by
any governmental agency or authority having jurisdiction; and

        (u) the  performance  of this  Agreement will not be in violation of the
constating  documents of Minco or of any agreement to which Minco is a party and
will not give any  person or  company  any  right to  terminate  or  cancel  any
agreement  or any right  enjoyed by Minco and will not result in the creation or
imposition of any lien,  encumbrance or restriction of any nature  whatsoever in
favour of a third party upon or against the assets of Minco.

COVENANTS OF MINCO
2.4  Minco covenants with Teck and Cominco that:

        (a) until the Closing,  each Investor and its counsel and other advisors
and representatives  will be entitled to have full access during normal business
hours to all  records  relating  to  Minco,  all  Affiliates  of Minco and their
businesses  and Minco will furnish or cause to be furnished to each Investor and
its representatives all data and information concerning the business,  finances,
operations  and properties of and all Affiliates of Minco that may reasonably be
requested  and will provide on a timely  basis such  written  consents as may be
requested by Teck or Cominco for the purpose of due diligence searches;

        (b) all representations,  warranties,  covenants and agreements of Minco
set forth in this Agreement and in any written  statements  delivered under this
Agreement  will be true and  correct as at the  Closing  Date as if made on that
date and all  representations  and  warranties  will survive the Closing and the
transactions  contemplated  hereby and any investigations  made at any time with
respect thereto without limitation;

        (c) during the  Earn-In  Period (i) Minco  will  promptly  provide  each
Investor  with a copy of each  Underlying  Agreement  negotiated or entered into
after the date  hereof,  (ii)  Minco  will use its best  efforts  to cause  each
optionor,   joint  venturer  or  co-owner  under  an  Underlying   Agreement  or
co-ownership agreement to which Minco is or may become party to execute the form
of consent and waiver  attached hereto as Schedule E and will keep each Investor
informed of its progress in  obtaining  such  consents and waivers,  (iii) Minco
will not, without the Designated  Investor's prior written consent (such consent
not to be unreasonably  withheld),  agree to amend any Underlying Agreement in a
manner that may materially  adversely affect the Investors,  and (iv) Minco will
use its best  efforts to secure,  as part of any  Underlying  Agreement  entered
into,  the  right for Minco to  provide  management  and  direction  of,  and to

<PAGE>

operate,  programs of work on the subject Acquired Property,  and (v) Minco will
consult  with the  Investors  with respect to work  programs  for each  Acquired
Property and budgets for each Acquired  Property and will provide the Designated
Investor  with  such  information  concerning  each  Acquired  Property  and the
activities  on or in respect  thereof and the results of such  activities as the
Investors may from time to time reasonably request; and

        (d)  following the Earn-In  Period,  Minco will not, with respect to the
Properties on which the Investors have exercised their Earn-In  Rights,  without
the  Designated  Investor's  prior  written  consent  (such  consent  not  to be
unreasonably withheld), agree to amend any Underlying Agreement in a manner that
may materially adversely affect the Investors.

COVENANTS OF TECK 2.5 Teck covenants with Minco that:

        (a) all  representations,  warranties,  covenants and agreements of Teck
set forth in this Agreement and in any written statement delivered by Teck under
this  Agreement  will be true and correct as at the  Closing  Date as if made on
that date and all  representations  and warranties  will survive the Closing and
the transactions  contemplated  hereby and any  investigations  made at any time
with respect thereto without limitation;

        (b) it will at all times and from time to time cooperate with each other
Party in order to give full effect to this  Agreement and in order to assist and
expedite the  performance by each Party of all or any of the  provisions  herein
contained and, in particular,  execute under its corporate seal or otherwise and
deliver all such instruments, deeds, mortgages,  assignments and other documents
and cause all such corporate acts to be duly,  expeditiously and validly done as
the Parties may reasonably require in accordance with the provisions hereof;

        (c) subject to Section 2.8, it will use all reasonable efforts to ensure
that the  Investors  do not  collectively  own more than 20% of the  issued  and
outstanding common shares of Minco; and

        (d) Teck will give notice to Minco  immediately  following  each sale of
Purchased Securities and upon becoming aware that the Investors shareholding has
fallen below the Minimum Percentage.

COVENANTS OF COMINCO 2.6 Cominco covenants with Minco that:

        (a) all representations, warranties, covenants and agreements of Cominco
set forth in this  Agreement and in any written  statement  delivered by Cominco
under this  Agreement will be true and correct as at the Closing Date as if made
on that date and all representations and warranties will survive the Closing and
the transactions  contemplated  hereby and any  investigations  made at any time
with respect thereto without limitation;

        (b) it will at all times and from time to time cooperate with each other
Party in order to give full effect to this  Agreement and in order to assist and
expedite the  performance by each party of all or any of the  provisions  herein

<PAGE>

contained and, in particular,  execute under its corporate seal or otherwise and
deliver all such instruments, deeds, mortgages,  assignments and other documents
and cause all such corporate acts to be duly,  expeditiously and validly done as
the Parties may reasonably require in accordance with the provisions hereof;

        (c) subject to Section 2.8, it will use all reasonable efforts to ensure
that the  Investors  do not  collectively  own more than 20% of the  issued  and
outstanding common shares of Minco; and

        (d) Cominco will give notice to Minco immediately following each sale of
Purchased Securities and upon becoming aware that the Investors shareholding has
fallen below the Minimum Percentage.

SURVIVAL

2.7  The  representations,  warranties,  covenants,  agreements  and  conditions
hereinbefore set out are conditions on which the Parties have relied in entering
into this  Agreement,  shall  survive  the  acquisition  by an  Investor  of any
interest in a Property and related  assets  hereunder and shall be unaffected by
any due diligence  undertaken  by and Investor in respect of this  Agreement and
each Party will  indemnify and save the other  harmless  from all loss,  damage,
costs,  actions and suits arising out of or in connection with any breach of any
representation,  warranty,  covenant,  agreement or  condition  made bv them and
contained in this Agreement (including lawyer's fees and disbursements).

LIMITATION

2.8 The restriction as to investment level set out in Sections 2.5(c) and 2.6(c)
ceases to apply on the earliest to occur of the following events:

        (a) a  significant  change of control of Minco,  of which  Minco  hereby
agrees  to give  the  Investors  immediate  notice  upon  becoming  aware of the
occurrence of the change,  provided that Minco shall give the Investors at least
five clear  trading days prior notice of its intention to sell any common shares
or securities convertible into Common Shares which would or are likely to result
in a change of control of Minco, as the case may be;

        (b) except where such reduction occurs as a result of dispositions by an
Investor,  the combined interests of the Investors and Ken Cai (whether directly
or  indirectly  through PCR and whether by  ownership,  control of or  direction
over) in Common Shares falling below 25%;

        (c) any reconstitution of management of Minco that results in Ken Cai
not being part of management;

        (d) a Person (by itself or together with its  Affiliates) or two or more
Persons acting jointly and in concert with each other acquiring more than 10% of
the outstanding shares of Minco;

        (e) a takeover  bid of which Minco is the  offeree;  provided  that if a
takeover bid or any competing  takeover bid is not  successful  according to its
terms,  the  restriction  set out in Section  2.5(c) and  Section  2.6(c)  shall
continue to apply; and

<PAGE>

        (f) Minco  offering more than 5% of any  particular  share offering to a
Person who is engaged in the business of mineral exploration,  mining,  smelting
or refining.

PART 3 INVESTMENT IN PCR AND GRANT OF RIGHTS ISSUE OF SHARES AND
GRANT OF RIGHTS

3.1 Relying upon the  representations  contained herein, in consideration of the
investment by the  Investors,  and subject to the terms and  conditions  hereof,
Minco hereby:

        (a)  agrees to issue and  deliver  to each  Investor,  upon  receipt  of
$500,000 Canadian from such Investor, 625,000 Units pursuant to the terms of the
Subscription Agreement attached hereto as Schedule I; and

        (b) grants to each  Investor,  until such time, if any, as the Investors
first cease to collectively own the Minimum Percentage:

               (i) the joint right to nominate one  individual for election as a
director of Minco,

              (ii) the  Earn-in  Rights  and  preferential  purchase rights more
particularly described in Parts 6 and 7 and the rights contemplated in Section
2.4(c), and

              (iii) the right to participate in future  financings of Minco, as
set forth in Part 5, provided  that,  if the grant to the  Investors  under this
Section 3.1(b) terminates, the Investors rights under Parts 6 and 7 shall not be
affected as they relate to  Properties  in respect of which the  Investors  have
exercised their Earn-In Rights; however, the Investors' rights under Parts 6 and
7 shall  continue  as to any  unexercised  Earn-In  Rights  until  March 1, 2004
regardless of whether the Acquired  Properties are held by Minco. In determining
whether the Investors have ceased to hold the Minimum Percentage, there shall be
excluded  from the  determination  any shares  issued as  consideration  for the
acquisition  of Properties  after the date on which the Investors  first acquire
Common Shares and any shares  issued as  performance  shares,  the result of the
exercise of  directors'  stock or other  options or any other  shares  which are
issued in a manner in which the  Investors  are unable to exercise  their rights
under Part 5.

3.2 Cominco  and Teck each agree to execute and deliver to Minco a  Subscription
Agreement for the Purchased Securities in the form attached hereto as Schedule I
concurrently  with  execution of this  Agreement.  Cominco and Teck  furthermore
acknowledge  that  they may be  required  to  execute  and  deliver  such  other
documents as may  reasonably be requested by Minco in order to obtain  necessary
regulatory approval of the transactions herein contemplated and Cominco and Teck
hereby agree to execute and deliver any and all such documents forthwith at such
request of Minco.

3.3 Subject to Section 5.1 herein,  following the execution of this Agreement by
both parties,  Minco will submit this  Agreement to the Exchange and request the
acceptance for filing hereof.  Thereafter,  the parties will  diligently  pursue
obtaining such acceptance for filing and regulatory approval and comply with all

<PAGE>

reasonable requests of the Exchange in connection  therewith,  but neither party
will, in any event, be liable for failure to obtain such acceptance or approval.
Each party will cooperate with the other as reasonably  necessary to secure such
acceptance for filing and other required approvals.

3.4 Each of Cominco and Teck acknowledges  that the Purchased  Securities are to
be  allotted  and  issued  to it  hereunder  pursuant  to  exemptions  from  the
registration and prospectus requirements of the Act, and acknowledges,  confirms
to and covenants with Minco that:

        (a) it will  comply  with  all  requirements  of  applicable  securities
legislation  in connection  with the issuance to it of the Shares and the resale
of the Shares including, without limitation,  entering into the Escrow Agreement
if required; and

        (b) it is not  entering  into this  Agreement  as result of any material
information  about the affairs of Minco  that,  to its  knowledge,  has not been
publicly disclosed.

PART 4 CLOSING TIME AND PLACE OF CLOSING

4.1 The Closing  will take place at 11:00 a.m.  (Vancouver  time) on the Closing
Date at Teck's  offices in Vancouver,  British  Columbia or such other place and
time as the Parties may agree.

DELIVERIES BY THE INVESTORS
4.2  At the Closing each Investor will, subject to Part 8, deliver to Minco:

          (a)  a cheque or bank draft for $500,000  Canadian (being the purchase
               price for that Investor's Purchased Securities);
          (b)  an opinion of counsel, acceptable to Minco, as to the matters set
               out in Section 4.5;
          (c)  a  certificate  of an officer as to the truth and accuracy of the
               representations,  warranties  and covenants of the Investor as at
               the Closing; and
          (d)  such  other  instruments  and  documents  as are  required  to be
               delivered  at Closing by the  Investor  to Minco  pursuant to the
               provisions  of this  Agreement or as are  reasonably  required to
               evidence  compliance  with the  representations,  warranties  and
               covenants of the Investor contained herein.

DELIVERIES BY MINCO AT CLOSING

4.3  At the Closing Minco will, subject to Part 8, deliver to each Investor:

          (a)  a certificate representing the Purchased Securities registered in
               the name of the Investor;
          (b)  an opinion  of  counsel  acceptable  to the  Investors  as to the
               matters set out in Section 4.4;
          (c)  a  certificate  of an officer as to the truth and accuracy of the
               representations,  warranties  and  covenants  of  Minco as at the
               Closing; and

<PAGE>

          (d)  such  other  instruments  and  documents  as are  required  to be
               delivered at Closing by Minco  pursuant to the provisions of this
               Agreement or as are  reasonably  required to evidence  compliance
               with  the  representations,  warranties  and  covenants  of Minco
               contained herein.
OPINIONS

4.4 Minco shall deliver at the Closing an opinion of counsel,  addressed to each
Investor and in a form reasonably satisfactory to the Investor, as to:

          (a)  the matters set out in Section 2.3(a),  (d), and (e) and, limited
               as set out in Section 4.6, Section 2.3(b) and (f);
          (b)  the valid  allotment and issuance of the Purchased  Securities to
               the Investor as fully paid and non-assessable; and
          (c)  such other matters as the Investor shall reasonably request.  4.5
               Each Investor shall deliver at the Closing an opinion of counsel,
               addressed to PCR and in a form reasonably  satisfactory to Minco,
               as to: (a) in the case of Teck,  the  matters  set out in Section
               2.1(a) and (b);  (b) in the case of Cominco,  the matters set out
               in Section  2.2(a) and (b);  and (c) such other  matters as Minco
               shall  reasonably  request.  4.6 In giving the opinion  regarding
               matters  set out in Section  2.3(b)(ii)  and 2.3(f)  counsel  may
               state  that  such  counsel  has no actual  knowledge  of any such
               agreement or right.

        PART 5 GRANT OF SUBSCRIPTION RIGHTS TO INVESTORS RIGHT TO
SUBSCRIBE 5.1 Minco hereby grants to each Investor the right to purchase  equity
securities of Minco or securities  convertible  into equity  securities of Minco
(such equity securities and securities  convertible into equity securities being
referred to as "Securities")  from time to time, in the circumstances and manner
set out below.  5.2 If Minco  intends to allot any  Securities  (for any purpose
including  raising  working  capital  generally or to cover its share of program
costs in respect of a  Property),  it shall first  offer to sell,  free of fees,
brokerage or  commissions,  such number of the  Securities  to the  Investors to
ensure  that  the  Investors'  aggregate  percentage  ownership  of  issued  and
outstanding Securities of Minco will remain unchanged after giving effect to the
allotment.  5.3 The  offer  shall  be made in  writing  and  shall  specify  any
conditions to the offer; the price per offered Security; and that if an Investor
does not, within the time  stipulated  (which shall not be less than 10 days nor
more than 30 days),  elect in writing to  exercise  the  option  hereunder  with
respect to the offered  Securities (in whole or in part),  that Investor will be
deemed to have elected not to exercise the option as to the offered  Securities.
22 - 22 - 5.4 The purchase of  Securities  hereunder by the  Investors  shall be
completed  contemporaneously  with  the  purchase  of  Securities  by all  other
persons. The Investors may determine,  as between themselves,  to acquire all or
part of the offered Securities.  Unless otherwise indicated by the Investors, if
both  accept  the  offer  they  shall be  deemed to be  purchasing  the  offered
Securities in equal proportions.  5.5 After the expiry of the time stipulated in
the offer, or on receipt of written  confirmation  from both Investors that they
elect not to exercise  the option with respect  thereto,  Minco may for 180 days
thereafter  offer the  remaining  Securities to the persons and in the manner it
thinks most  beneficial,  but the offer to those persons shall not be at a price

<PAGE>

less than, or on terms less favourable to Minco than the offer to the Investors.
5.6 At such time, if any, as the Investors'  first cease to collectively own the
Minimum  Percentage,  the right to purchase securities as set out in this Part 5
will immediately terminate.

        PART 6 MATTERS AFFECTING PROPERTIES PROPERTIES TO BE GOVERNED HEREBY 6.1
If, prior to March 1, 2004,  Minco  identifies an Acquired  Property of merit in
respect of which Minco has  acquired or may acquire an NCI which it believes may
be of interest to the  Investors,  Minco,  and all persons acting on its behalf,
shall deliver a notice to the Investors,  providing reasonable details regarding
the Property,  the NCI and the Underlying Agreement and requesting the Investors
to determine  whether such  Acquired  Property is one that should be governed by
this Agreement. The Investors shall notify Minco in writing within 15 days after
receipt of Minco's notice of their  determination.  The Investors Earn-In Rights
under this Part 6 shall not be limited as to time but may only be  exercised  on
those Acquired  Properties  which are held subject to this Agreement on or prior
to March 1, 2004. 6.2 If the Investors  determine that such Acquired Property is
not one that should be governed  by this  Agreement,  Minco will be free to deal
with that  Acquired  Property as it sees fit and that  Acquired  Property  shall
thereafter not be subject to this Agreement.  Failure by the Investors to notify
Minco of their determination within the time limit in Section 6.1 will be deemed
to be a determination  that the Acquired Property should not be governed by this
Agreement.  6.3 If the Investors  determine that the Acquired  Property is to be
governed by this  Agreement,  they shall either sign a separate  confidentiality
agreement  relating to the particular  Property or shall add the Property to the
schedule  of  properties  governed by the  current  Confidentiality  Agreements.
Thereafter  Minco  will  make all data in its 23 - 23 -  possession  or  control
available to the  Investors and will, if requested to do so by the Investors and
subject to limits imposed by the relevant  Governmental  Authority,  arrange for
site visits at the  earliest  reasonable  time and within such time periods that
will  allow  the  Investors  adequate  time for  evaluating  the  Property.  The
Investors  shall be responsible for their own costs in connection with such site
visits and such other costs as may have been agreed by the  Investors in advance
of the site visit.

        CATEGORIZATION OF EXPLORATION OR DEVELOPMENT PROPERTY 6.4 On
the earlier of 15 days after receipt of Minco's notice under Section 6.1, if the
Investors have already  completed a site visit,  or within 30 days of completion
of a site visit as  contemplated  in Section 6.3, the Investors  shall deliver a
notice to Minco indicating  whether the Acquired  Property should be categorized
as: (a) an Exploration  Property, in which case Section 6.5 to Section 6.13 will
govern;  or (b) a  Development  Property,  in which case Section 6.14 to Section
6.21 will govern.  Failure by the  Investors  to notify Minco of their  election
within the above time limit will be deemed to be an election to  categorize  the
Acquired Property as an Exploration Property.

        THIRD PARTY  DEALINGS  PRIOR TO EARN-IN  6.5 All  dealings by Minco with
respect to an  Acquired  Property  before the  Investors  have  exercised  their
Earn-In  Rights on two  Properties  shall be subject to the  Investors'  Earn-In
Rights and any Person who  acquires an Interest  in an Acquired  Property  prior

<PAGE>

thereto shall hold that Interest  subject to the Investors'  Earn-In Rights and,
following such acquisition,  this Agreement shall apply mutatis mutandis to that
Person and the Interest which it has acquired so that the Person and Minco shall
enjoy the rights and benefits flowing from the Investors and shall be subject to
the same  duties and  obligations  to the  Investors  pro rata their  respective
Interests.

        EARN-IN RIGHTS GENERALLY 6.6 Under the Teck-Cominco-PCR  Agreement,  the
Investors have the right to earn an Interest in an aggregate of two NCIs held by
PCR or Minco.  The Investors'  right to earn an Interest (the "Earn-In  Rights")
regarding  NCI's held by Minco are  exercisable  in the manner set out either in
Section 6.8 or Section 6.14.  Promptly upon the Investors  exercising an earn-in
right under the Teck-Cominco-PCR  Agreement,  the Investors shall give notice to
Minco.  After the Investors have exercised  their earn-in rights under the Teck-
Cominco-PCR  Agreement or their  Earn-in  Rights  under this  Agreement as to an
aggregate of two Acquired Properties,  the Earn-In Rights will terminate and the
provisions  of  Section  6.1  through  Section  6.21 will  cease to apply to the
Parties. 24 - 24

        EXPLORATION  PROPERTIES GENERALLY 6.7 An Acquired Property that has been
categorized  by the Investors as an  Exploration  Property will form part of the
general assets of Minco, but will remain subject to the terms of this Agreement,
and in  particular:  (a) all  dealings  with such  Property by Minco  before the
production of a Preliminary  Feasibility Report relating thereto will be subject
to the Earn-in Rights of the Investors set out more particularly in Section 6.8.
(b)  Minco  may,  but is not  obligated  to,  per-form  additional  work  on the
Property;  (c) all  Preliminary  Feasibility  Reports  shall  be  presented  and
delivered to the Investors,  forthwith upon completion or receipt by Minco, at a
meeting to be held at a mutually  convenient  time and place and called by Minco
on at least 30 days  notice to the  Investors;  (d) if less than  $1,000,000  in
Expenditures  have been  incurred by Minco in  connection  with the  Exploration
Property, Minco may elect to abandon the Property or allow contractual rights to
expire  without the consent of the  Investors  but will  provide  notice of such
event to the Investors; and (e) if Minco has incurred Expenditures of $1,000,000
or more and wishes to abandon  the  Exploration  Property  or allow  contractual
fights to expire,  it shall first give 30 days notice to the  Investors  of such
intent and if the  Investors  request  Minco not to abandon  the  Property or to
allow the  contractual  rights to expire,  the Investors  shall,  subject to the
applicable  Underlying  Agreement  and  approval  of the  relevant  Governmental
Authority,  assume the  obligations  of Minco with  respect to such  contractual
rights.

        EARN-IN RIGHT ON EXPLORATION PROPERTIES 6.8 Subject to existing
requirements under any applicable Underlying Agreement,  the Investors will have
a right to earn a 51%  Interest in respect of an  Exploration  Property and will
have the  further  joint  right to  become  the  operator  of  programs  on such
Exploration  Property,  by (a)  completing,  at their sole cost as  between  the
Parties,  a Final Feasibility  Report with respect to the Exploration  Property,
and (b)  arranging  for, and giving notice as  contemplated  in Section 6.12 of,
funding  (by  equity,  debt or a  combination  thereof)  of all costs  which are

<PAGE>

required  to be  provided  by the  Parties  in  respect  of the NCI to bring the
Property into  commercial  production  as  contemplated  in a Final  Feasibility
Report.  25 - 25 - 6.9 The Earn-In  Rights are  exercisable  with  respect to an
Exploration  Property in respect of which the  Investors  give Minco an Exercise
Notice  prior to the 30th day  after  the date of the  meeting  contemplated  in
Section  6.7(c).  Failing  delivery  of an  Exercise  Notice  within the 30 days
aforesaid,  the Investors  shall be deemed to have elected that the  Exploration
Property  be  released  from  their  Earn-In  Rights  and  that  Property  shall
thereafter not be subject to this Agreement.

        EARNING AN INTEREST - EXPLORATION PROPERTY 6.10 Where the Investors have
delivered an Exercise  Notice as contemplated in Section 6.9, the Investors will
thereafter  have the right to design and  implement  such programs of work to be
conducted  on the  Exploration  Property  as,  in their  sole  discretion,  they
consider  necessary to complete a Final Feasibility  Report with respect thereto
and will earn the Interest in accordance with the following provisions. 6.11 The
Investors shall complete the Final  Feasibility  Report  contemplated in Section
6.10  without  undue  delay and within  such time  limits as are  imposed by the
applicable  Underlying  Agreement.  The  Investors  shall present and deliver to
Minco a copy of the Final  Feasibility  Report,  forthwith  upon  completion  or
receipt by the Investors,  at a meeting to be held at a mutually convenient time
and place and called by the  Investors  on at least 30 days notice to Minco.  At
the meeting or by separate notice the Investors will indicate by notice whether:
(a) they consider the Final  Feasibility  Report to be positive and bankable and
they  intend  to seek  funding  necessary  to  bring  the mine  into  commercial
production  as  contemplated  in the Final  Feasibility  Report,  in which  case
Section 6.12 shall apply; (b) they consider the Final  Feasibility  Report to be
otherwise  positive and bankable,  but that it is not prudent to proceed at that
time for reasons or as a result of  conditions  which they shall itemize at that
time;  in which case  Section  6.13 shall  apply;  or (c) they no longer wish to
retain their Earn-In Rights with respect to that Exploration  Property, in which
case that Property shall cease to be subject to this Agreement.  Notwithstanding
the  foregoing,  the  Investors  may, at any time prior to completion of a Final
Feasibility Report, give notice to Minco that they are abandoning the completion
of the Final  Feasibility  Report and that they no longer  wish to retain  their
Earn-In  Rights with respect to that  Exploration  Property,  in which case that
Property  shall  cease to be  subject to this  Agreement.  The  Investors  will,
promptly following the abandonment,  provide Minco, on a without-warranty basis,
with  copies  of all  factual  information  and data  held or  developed  by the
Investors  as part of their  Final  Feasibility  26 - 26 - Report work which the
Investors  are not  precluded  from  providing  as a result  of  confidentiality
obligations  to third  parties.  6.12 If the Investors give notice under Section
6.11(a),  the  Investors  shall have 180 days from the date of  delivery  of the
notice to Minco under Section 6.11(a) to obtain (by equity and commitments  from
a bank or other third party for financing)  100% of the funds  necessary for the
program  contemplated by the Final  Feasibility  Report which are required to be
provided by the Parties in respect of the NCI. Upon the delivery of a Commitment
Notice by the Investors to Minco that the required funds are available:  (a) the
Investors  shall have earned an undivided 51% Interest  provided  always that if
the  applicable  Underlying  Agreement  provides  that Minco must  complete  the
programs  before an Interest is earned,  the Investors shall earn their Interest
at the same time as Minco;  and (b) upon the Interest  having been  earned,  the

<PAGE>

Investors  shall have  exercised an Earn-In  Right.  6.13 If the Investors  give
notice of deferral under Section  6.11(b),  the Investors may, where possible in
accordance with the Underlying Agreement,  defer delivery of a Commitment Notice
from time to time until,  in their view,  the subject  Property  could be placed
into  commercial  production and such deferral shall not prejudice the rights of
the  Investors  hereunder.  If the  Investors  elect  to defer  commencement  of
programs  contemplated in the Final Feasibility Report under such circumstances,
they shall update the Final Feasibility  Report annually and deliver the results
of such update to Minco together with an indication  whether they are continuing
to defer a decision to commence with the programs.

        EARN-IN RIGHT ON DEVELOPMENT PROPERTIES 6.14 Subject to existing
requirements under any applicable Underlying Agreement,  the Investors will have
a right to earn a 70%  Interest in respect of a  Development  Property  and will
have the  further  joint  right to  become  the  operator  of  programs  on such
Development  Property,  by (a)  completing,  at their sole cost as  between  the
Investors,  such  exploration work or other activities as may be necessary after
its  categorization  as a  Development  Property  under  Section 6.4 and a Final
Feasibility Report with respect to the Development  Property,  and (b) arranging
for, and giving notice as  contemplated  in Section 6.17 of, funding (by equity,
debt or a  combination  thereof)  70% of the  costs  which  are  required  to be
provided by the Parties in respect of the NCI to bring the mine into  commercial
production as contemplated in a Final  Feasibility  Report (or 70% of such funds
as are required for the programs contemplated under the Final Feasibility Report
27 - 27 -  where  such  programs  relate  to the  expansion  of an  existing  or
currently operating mine).

        EARNING AN INTEREST -  DEVELOPMENT  PROPERTY  6.15 Where  under  Section
6.4(b) the Investors  have  categorized  the Acquired  Property as a Development
Property,  the Investors will  thereafter have the right to design and implement
such  programs  of work to be  conducted  on the  Property  as,  in  their  sole
discretion,  they consider necessary to complete a Final Feasibility Report with
respect  thereto and will earn their  Interest in accordance  with the following
provisions.  6.16 The  Investors  shall  complete the Final  Feasibility  Report
contemplated  in Section 6.15 without undue delay and within such time limits as
are imposed by the applicable Underlying Agreement.  The Investors shall present
and  deliver to Minco a copy of the Final  Feasibility  Report,  forthwith  upon
completion  or receipt by the  Investors,  at a meeting to be held at a mutually
convenient time and place and called by the Investors on at least 30 days notice
to Minco.  At the meeting or by separate  notice the Investors  will indicate by
notice whether:  (a) they consider the Final  Feasibility  Report to be positive
and bankable  and they intend to seek  funding  necessary to bring the mine into
commercial  production as contemplated in the Final Feasibility Report, in which
case Section 6.17 shall apply; (b) they consider the Final Feasibility Report to
be  otherwise  positive and  bankable,  but that it is not prudent to proceed at
that time for reasons or as a result of  conditions  which they shall itemize at
that time; in which case Section 6.18 shall apply; or (c) they no longer wish to
retain their Earn-In  Rights with respect to that  Property,  in which case that
Property  shall  cease to be  subject  to this  Agreement.  Notwithstanding  the
foregoing,  the  Investors  may,  at any  time  prior to  completion  of a Final
Feasibility Report, give notice to Minco that they are abandoning the completion
of the Final Feasibility Report and that they no longer wish to retain their

<PAGE>

Earn-In Rights with respect to that Property,  in which case that Property shall
cease to be subject to this Agreement.  The Investors will,  promptly  following
the abandonment,  provide Minco, on a without-warranty basis, with copies of all
factual information and data held or developed by the Investors as part of their
Final  Feasibility  Report  work  which the  Investors  are not  precluded  from
providing as a result of confidentiality  obligations to third parties.  6.17 If
the Investors  give notice under Section  6.16(a) or Section 6.18, the Investors
shall  have 180 days from the date of  delivery  of the  notice  to Minco  under
Section 6.16(a) or Section 6.18 to obtain (by equity and commitments from a bank
or other third party for financing) 28 - 28 - 70% of the funds necessary for the
program  contemplated by the Final  Feasibility  Report which are required to be
provided by the  Parties in respect of the NCI.  Upon  delivery of a  Commitment
Notice by the Investors to Minco that the required funds are available:  (a) the
Investors  shall have earned an undivided 70% Interest,  provided always that if
the  applicable  Underlying  Agreement  provides  that Minco must  complete  the
programs  before an Interest is earned,  the Investors shall earn their Interest
at the same time as Minco;  and (b) upon the Interest  having been  earned,  the
Investors  will have  exercised an Earn-In  Right.  6.18 If the  Investors  give
notice of deferral under Section  6.16(b),  the Investors may, where possible in
accordance with the Underlying Agreement,  defer delivery of a Commitment Notice
from time to time until,  in their view,  the subject  Property  could be placed
into  commercial  production and such deferral shall not prejudice the rights of
the  Investors  hereunder.  If the  Investors  elect  to defer  commencement  of
programs  contemplated in the Final Feasibility Report under such circumstances,
they shall update the Final Feasibility  Report annually and deliver the results
of such update to Minco together with an indication  whether they are continuing
to defer a decision to commence  with the programs.  The  Investors  may, at any
time during the deferral,  give notice to Minco that  conditions  upon which the
deferral  has been  based  have  been  overcome  and  they  consider  the  Final
Feasibility  Report to be positive  and bankable and they intend to seek funding
necessary to bring the mine into  commercial  production as  contemplated in the
Final  Feasibility  Report,  in  which  case  Section  6.17  shall  apply to the
Investors  and  Section  6.19 to  Section  6.21 will  apply to  Minco.  6.19 The
Investors  will be  entitled  to include in the terms of any bank or third party
commitment  for  financing a  condition  precedent  that Minco will  provide the
remaining 30% of the funds necessary for the programs of work which are required
to be provided  by the  Parties in respect of the NCI.  6.20 If Minco is unable,
during the 180-day  period  referred to in Section 6.17, to deliver a Commitment
Notice for its 30% of the required  funds the Investors  can either:  (a) notify
Minco that the  production  programs will be postponed;  or (b) elect to arrange
for  or  provide  such  remaining  funds  as  are  necessary  for  the  programs
contemplated by the Final  Feasibility  Report,  in which case Minco's  Interest
will be diluted in accordance with the dilution  formula set out in the Terms of
Joint Venture  annexed as Schedule F hereto.  6.21 If the Investors  elect under
Section  6.20 to postpone the  production  programs,  Minco and  Investor  shall
maintain their respective interests in the Property.  The Investors shall update
the Final  Feasibility  Report annually and may, at any time, elect 29 - 29 - to
proceed  with the  production  program  contained  therein.  In such  case,  the
Investors  will give notice in writing to Minco and Minco will  thereafter  have
180 days within which to arrange for  financing  of its share of funds  required
for the  production  programs.  If after the  expiry of such time  Minco  cannot
deliver  a  Financing  Notice  for its  share of funds,  the  Investors  will be
entitled to provide the balance of such funds for the production programs and

<PAGE>

the interest of Minco will be diluted in  accordance  with the dilution  formula
set out in the Terms of Joint Venture annexed as Schedule F hereto.

        JOINT  VENTURE 6.22 As promptly as  practicable  after the Closing Date,
the  Parties  shall  settle  the form of Joint  Venture  Agreement  relating  to
Properties,  which Joint Venture  Agreement shall include at least the terms set
out on Schedule G, including a provision that if Minco's  Interest is diluted to
10% its  Interest  will be  converted  to a 1% Net Smelter  Return  Royalty,  as
defined in Schedule H, from that share of production from a mine on the Property
which is taken in kind or  attributable  to the  Interests  held by the Parties.
Notwithstanding actual Expenditures of Minco, Minco's initial contribution for a
Development Property for the purposes of calculating dilution shall be deemed to
be such amount that is equal to 3/7 of Investors'  Costs (see Schedule F) at the
time of Commitment Notice.  Each Property for which the Investors have exercised
an Earn-In Right will be governed by its own separate Joint Venture Agreement.

        COST RECOVERY - DEVELOPMENT PROPERTY 6.23 With respect to a
Development Property,  Net Proceeds shall be distributed as follows: (a) firstly
100% to repay any third party project financing; (b) secondly, 100% to repay any
project  financing  contributed  by  the  Parties  as  between  the  Parties  in
proportion to their percentage contribution level to the project financing;  (c)
thirdly, to repay any Prior Costs,  excluding deemed costs, prior to the date of
the Investors'  Commitment Notice; and (d) finally, to the Parties in proportion
to their respective Interests.

        COST RECOVERY - EXPLORATION PROPERTY 6.24 With respect to an Exploration
Property,  Net Proceeds  shall be  distributed  as follows:  (a) firstly 100% to
repay any third party project financing; 30 - 30 - (b) secondly, until the First
Recovery Date,  75% to the Investors in respect of their Prior Costs,  excluding
deemed costs (in proportion to their  respective  Interests as between them) and
25% to Minco in  respect  of its  Prior  Costs,  excluding  deemed  costs,  plus
interest at Prime Rate plus 2%,  calculated  in each case from the date on which
the said Prior Costs were paid;  (c) thirdly,  until the Second  Recovery  Date,
100% to the Party that has not yet recovered its Prior Costs,  excluding  deemed
costs,  plus  interest  at the Prime Rate plus 2%,  calculated  from the date on
which  such said  Prior  Costs were paid;  and (d)  finally,  to the  Parties in
proportion to their respective Interests.

        MINCO  CONSULTING  SERVICES  6.25 Where Minco can  demonstrate  that its
current  employees  have the required  expertise  and provided that the contract
price is within the standard range in the industry for arms length  engagements,
such Party shall be entitled to offer its consulting services to any other Party
hereto. The Investors may require Minco to render consulting  services,  so long
as the  renumeration  for such  services  is within  the  standard  range in the
industry.

<PAGE>

        PART 7 ASSIGNMENTS AND PREFERENTIAL RIGHTS OF PURCHASE
ASSIGNMENTS  7.1 No Party may  assign any right,  benefit  or  interest  in this
Agreement  or an NCI in  respect of which the  Investors  have  exercised  their
rights under Part 6 without the prior  written  consent of the other Parties and
any purported  assignment  without such compliance will be void except: (a) such
assignment is permitted if it occurs in accordance  with Part 6; (b) an Investor
may, at any time, assign all or any part of its interest to an Affiliate so long
as such  Affiliate  agrees  to be bound by the  terms of this  Agreement  and to
retransfer  the interest  prior to ceasing to be an Affiliate of such  Investor;
(c)  Minco  may  assign  all  or any  part  of its  interest  to a  wholly-owned
subsidiary  of Minco so long as such  entity  agrees to be bound by the terms of
this  Agreement  and  to  retransfer  the  interest  prior  to  ceasing  to be a
wholly-owned  subsidiary;  31 - 31 - (d) Minco may assign all or any part of its
Interest  to the  Investors  or to PCR;  (e) the  Investors  may  freely  assign
Interests as between them; and (f) such  assignment is permitted if it occurs in
accordance  with  Section  7.2  through  7.6.  7.2 Subject to Section 7.7 and to
existing  requirements  under any  applicable  Underlying  Agreement,  after the
Earn-In  Rights  contained in Section 6.6 and 6.7 have been exercised (by either
or both Investors) with respect to an aggregate of two Properties, if: (a) Minco
wishes to dispose  of all or a portion of its  Interest  in a  Property;  or (b)
Minco  wishes to accept a legally  binding  and  enforceable  offer from a third
party to  purchase,  earn or acquire an  Interest;  it shall  first offer to the
Investors  the same  opportunity  in the manner  hereinafter  set out. 7.3 Minco
shall deliver an offer ("Minco's Offer") to the Investors which shall include at
least the following information or documents: (a) a written notice specifying in
reasonable  detail the Property which is the subject of Minco's  Offer,  and the
NCI in relation  thereto;  (b) all information in Minco's  possession or control
relating to the Acquired Property;  (c) such preliminary  feasibility report (if
any and  without  obligating  Minco to produce  one)  relating  to the  Acquired
Property in the possession or control of Minco;  (d) the terms and conditions of
Minco's  Offer,  or a copy of any third  party  offer  contemplated  in  Section
7.2(b), including the time period for acceptance; and (e) all other information,
analysis  and data in Minco's  possession  or  control  that the  Investors  may
reasonably request or which might reasonably be expected to be useful to them in
deciding whether to accept Minco's Offer; and in all cases if the Investors have
not  previously  executed a  confidentiality  agreement  governing  the  subject
Property,  upon request of Minco before delivery of the information,  they shall
do so. 7.4 The  Investors  shall have 30 days after  receipt of Minco's Offer to
accept  Minco's  Offer.  Either or both of the Investors may elect in writing to
accept such offer 32 - 32 - and where both Investors elect to accept, they shall
participate  in   purchasing,   earning  or  acquiring  the  Interest  in  equal
proportions unless otherwise agreed between them.  Completion of the transaction
shall  occur on a date agreed  among the  Parties  but not earlier  than 60 days
after delivery of the acceptance notice. 7.5 If neither Investor accepts Minco's
Offer within the time period  provided for  acceptance,  the Investors  shall be
deemed  to have  declined  the offer  and  Minco  may,  for a period of 180 days
thereafter,  sell or dispose of the Interest to a third party (and where Minco's
Offer relates to a specific  third party offer to that third party) on the same,
or  financially  equivalent,  terms and  conditions as set out in Minco's Offer;
provided  that,  with  respect to the  Properties  in which the  Investors  have
exercised  their  Earn-In  Rights,  the third  party  agrees to be bound by this
Agreement.  If Minco does not complete the acquisition or transaction within the
said 180 days, the preferential right of purchase enjoyed by the Investors shall
again apply to any proposed disposition. 7.6 If after making an

<PAGE>

election or earning an Interest under Part 6 an Investor  wishes to transfer all
of the  Interest to a third party other than an  Affiliate,  it must first offer
the  Interest  to Minco in  accordance  with the  provisions  of Section  7.2 to
Section 7.5 and for these purposes  "Minco" shall be read to mean the particular
Investor  and  "Investors"  shall be read to mean  Minco.  7.7 This Part 7 shall
cease  to apply to  Properties,  other  than  the two in  respect  of which  the
Investors have exercised their Earn-In  Rights,  on the earlier of March 1, 2004
and the third anniversary of the date the Investors have exercised their Earn-In
Rights on two Properties.

        PART 8 CONDITIONS CONDITIONS TO THE OBLIGATIONS OF TECK AND
COMINCO 8.1 Except as otherwise  specifically set forth herein,  all obligations
of Teck and Cominco under this Agreement are subject to the  fulfilment,  before
or on the Closing Date, of each of the  following  conditions  for the exclusive
joint benefit of the Investors,  each of which may be waived in whole or in part
by the  Investors,  on or before the Closing Date: (a) all  representations  and
warranties  of Minco  contained in this  Agreement  or in any written  statement
delivered to Teck or Cominco under this  Agreement,  are true and correct,  when
made and will be true and correct at the Closing Date; and 33 - 33 - (b) each of
the covenants and agreements of, conditions  imposed upon and the deliveries set
out herein to be made by Minco to be performed, satisfied or complied with on or
before the Closing Date has been duly performed,  satisfied and complied with in
all respects on or before the Closing Date.

        CONDITIONS TO THE OBLIGATIONS OF MINCO 8.2 Except as otherwise
specifically set forth herein, all obligations of Minco under this Agreement are
subject  to the  fulfilment,  before  or on the  Closing  Date,  of  each of the
following conditions for the exclusive benefit of Minco and each of which may be
waived in whole or in part by Minco on or before the Closing  Date:  (a) receipt
of any Requisite Approvals for the transactions  contemplated in this Agreement;
(b) all  representations  and  warranties of Teck and Cominco  contained in this
Agreement,  or in any written  statement  delivered  to Minco by Teck or Cominco
under  this  Agreement,  are true and  correct,  when  made and will be true and
correct on the  Closing  Date;  and (c) each of the  covenants,  agreements  and
conditions of Teck and Cominco to be performed, satisfied or complied with on or
before the Closing Date  pursuant to the terms  hereof has been duly  performed,
satisfied and complied with in all respects on or before the Closing Date.

        PART 9 FORCE MAJEURE FORCE MAJEURE 9.1 Notwithstanding any other
provision  of this  Agreement,  a Party's  rights  and  privileges  shall not be
affected and no  liabilities  hereunder  shall result to that Party,  except for
monies  then due,  for any delay in  performance  or  non-performance  caused by
circumstances  beyond  the  control  of the party  affected,  including  but not
limited to acts of God, earthquake,  fire, flood or the elements,  perils of the
sea,  including  any  action  or  threatened  action of any  nation  endangering
transport,  malicious mischief, riots, strikes, lockouts,  boycotts,  picketing,
labour disturbances,  war, compliance with any directive, order or regulation of
any  governmental  authority or  representatives  thereof  acting under claim or
colour of authority,  accidents, equipment or operational breakdown, shortage or
inability  to  obtain  fuel,  electric  power,  raw  materials  or  manufactured

<PAGE>

products,  equipment,  containers or  transportation,  unfavourable  economic or
political  considerations  beyond  the  control  of that  Party such as, but not
limited to foreign  exchange  controls  restricting  foreign  investment  or the
return of foreign  investment,  or 34 - 34 - the currency in which it is payable
and  restrictions  on the export of  production  or due to any cause beyond that
Party's reasonable control whether or not similar to the foregoing.

        NOTICE  9.2 Upon the  occurrence  of an  event  of  force  majeure,  the
affected Party shall notify the other Parties  immediately  upon such occurrence
and the Parties  shall  exercise  all  reasonable  efforts and due  diligence to
eliminate  or  remedy  any event of force  majeure  or  interrupting  proponents
hereunder  (provided  that  nothing  herein  contained  shall  be  construed  as
requiring  any party to accede to any  demands  of  workers  which it  considers
unreasonable or to test constitutionality of any law).

        EXTENSION  OF TIME 9.3 If an event of  force  majeure  occurs,  the time
periods  during which a Party must  satisfy its  obligations  hereunder  will be
extended for the same length of time as the event of force majeure continues.

        PART  10  GENERAL   PROVISIONS  ENTIRE  AGREEMENT  10.1  This  Agreement
constitutes the entire agreement among the Parties and supersedes every previous
agreement,   communication,    expectation,   negotiation,   representation   or
understanding,  whether  oral or  written,  express  or  implied,  statutory  or
otherwise,  between  the  Parties  with  respect to the  subject  matter of this
Agreement other than agreements  executed by each of the Parties on or after the
date of this Agreement.

        NO OTHER REPRESENTATIONS 10.2 No director, officer, employee or agent of
any Party has any authority to make any representation or warranty not contained
in this  Agreement,  and each Party agrees that it has executed  this  Agreement
without reliance upon any such representation or warranty.

        WAIVER AND CONSENT  10.3 No consent or waiver,  express or  implied,  by
either  Party to or of any  breach or  default by the other of any or all of its
obligations  under this  Agreement will (a) be valid unless it is in writing and
stated to be a consent or waiver pursuant to this Section 10.3; 35 - 35 - (b) be
relied on as a consent  to or waiver of any other  breach or default of the same
or any other  obligation;  (c) constitute a general waiver under this Agreement;
or (d) eliminate or modify the need for a specific consent or waiver pursuant to
this Section 10.3 in any other or subsequent instance.

        AMENDMENTS  10.4 This  Agreement  may not be  amended  except by written
document signed by all Parties to this Agreement.

<PAGE>

        PRESS  RELEASES  10.5 Each Party shall  consult with the others prior to
issuing any press release or other public statement  regarding a Property or the
activities of the Parties with respect thereto: (a) during the Earn-In Period in
respect of all Acquired  Properties;  and (b)  thereafter in respect of Acquired
Properties  for which the Investors have  exercised the Earn-In  Rights.  At all
times each Party shall obtain prior  approval from the other before  issuing any
press release or public  statement using the others' names or the name of any of
the  others'  associated  companies  or of  any of the  officers,  directors  or
employees of the others or their associated companies.

        BINDING  EFFECT 10.6 This  Agreement will enure to the benefit of and be
binding upon the  respective  legal  representatives,  successors  and permitted
assigns of the Parties.

        TIME OF ESSENCE 10.7 Time is of the essence in the  performance  of each
obligation under this Agreement.

        FURTHER  ASSURANCES  10.8 Each  Party will at all times and from time to
time  cooperate  with  each  other  Party in order to give  full  effect to this
Agreement and in order to assist and expedite the  performance  by each Party of
all or any of the provisions  herein  contained and, in particular,  do all acts
and things and  execute  under its  corporate  seal or 36 - 36 -  otherwise  and
deliver all such instruments, deeds, mortgages,  assignments and other documents
and cause all such corporate acts to be duly,  expeditiously and validly done as
the Parties may reasonably require in accordance with the provisions hereof.

        NOTICE 10.9 Every notice, request, demand or direction (each, for the
purposes  of this  Section  10.9,  a  "notice")  to be  given  pursuant  to this
Agreement  by any Party to another  will be in writing and will be  delivered or
sent by telecopier or other similar form of instantaneous  written communication
on tangible  medium,  in each case,  addressed as applicable  as follows:  If to
Minco: 1870 - 401 West Georgia Street  Vancouver,  British Columbia V6B 5A1 Fax:
(604)  688-8030  Attention:  Chairman  If to Teck at: 600 - 200  Burrard  Street
Vancouver, British Columbia V6C 3L9 Fax: (604) 687-6100 Attention:  Secretary If
to Cominco at: 500 - 200 Burrard Street Vancouver, British Columbia V6C 3L7 Fax:
(604) 844-2516 Attention: General Manager, Exploration, International or to such
other address as is specified by the particular Party by notice to the other. 37
- 37 -

        DEEMED  RECEIPT 10.10 Any notice  delivered or sent in  accordance  with
Section 10.9 will be deemed to have been given and  received:  (a) if delivered,
on the  first  Business  Day  after  the  day of  delivery;  and  (b) if sent by
telecopier or other similar form of instantaneous written communication,  on the
first Business Day after the day of transmittal.

<PAGE>

        TERMINATION  10.11  This  Agreement  will  terminate:  (a)  upon  mutual
agreement of the Parties;  and (b) at the option of the  Investors if any of the
events set out in 2.8(b) occurs.

        COUNTERPARTS  10.12 This Agreement may be signed by facsimile and in any
number of  counterparts  and all such  counterparts  will be taken to comprise a
single agreement.

        CONDITIONS  PRECEDENT  10.13 This  Agreement and the  obligations of the
Parties are subject to: (a) the execution of a  subscription  agreement  between
Minco, Teck and Cominco relating to the Teck-Cominco private placement; and 38 -
38 - (b) acceptance for filing of this Agreement by the Vancouver Stock Exchange
on or before March 31, 1996.

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

The Common Seal of                            )
MINCO MINING AND METALS                       )
CORPORATION                                   )
was affixed in the presence  of:              )
                                              )
  C/S  /s/illegible                           )
  ---------------------------------           )
Authorized  Signatory                         )
                                              )
  /s/illegible                                )
  ---------------------------------           )
Authorized Signatory                          )
 The Corporate Seal of                        )
 TECK CORPORATION                             )
 was affixed in the  presence  of:            )
                                              )
C/S  /s/illegible                             )
 ---------------------------------            )
Authorized  Signatory                         )
                                              )
  /s/illegible                                )
 ---------------------------------            )
Authorized Signatory                          )
 The Corporate Seal of                        )
 COMINCO LTD.                                 )
was affixed in the presence  of:              )
                                              )
C/S  /s/illegible                             )
 ---------------------------------            )
Authorized  Signatory                         )
                                              )
/s/illegible                                  )
 ---------------------------------            )
Authorized Signatory                          )CONSULTING AGREEMENT

THIS AGREEMENT is dated the 25 day of June, 1996,

BETWEEN:

                        MINCO MINING & METALS CORPORATION
                          1870-401 West Georgia Street
                                    Vancouver
                            British Columbia, V6B 5A1
                              (herein the "CLIENT")

                                     - and -

                            KAISUN GROUP CANADA INC.
                               3220 Colonial Drive
                                   Mississauga
                                Ontario, L5L 5K8
                            (herein the "CONSULTANT")

        WHEREAS the Client desires to engage the Consultant to provide  services
to the Client for the term of this  Agreement and the  Consultant  has agreed to
provide such services,  all in  consideration  and upon the terms and conditions
contained herein;

NOW THEREFORE it is hereby agreed as follows:

        1. SERVICES

        The Client agrees to engage the Consultant to act as President and Chief
Executive Officer and to provide the Client with such other consulting  services
as the Client and the  Consultant  agree upon and the  Consultant  has agreed to
perform and provide such services (collectively the "SERVICES").

        2. TERM

        Except as otherwise  provided in this  Agreement,  the Client  agrees to
engage the  Consultant  to provide the Services for a term  commencing  March 1,
1996 and ending June 25, 1999.

        3. FEE

        (a) The  Client  agrees  to pay the  Consultant  a fee for the  Services
provided by the 2  Consultant  under the  Agreement in the amount of $500.00 per
day payable  monthly on the last day of each month to a maximum of $100,000  per
year with such amounts reviewable upon each successive  anniversary dates during
the term of this Agreement.

        (b) The Consultant agrees to render monthly invoices to the Client, in a
form reasonably  acceptable to the Client,  detailing the Services  performed by
the Consultant.

<PAGE>

        (c) The Client shall be responsible for all sales taxes (including goods
and services taxes) due in respect of the fees paid to the Consultant.  The fees
paid to the  Consultant  under this  Agreement  shall be  increased to take into
account any  applicable  goods and services  taxes or other sales or value added
taxes  payable  in  respect  of such  fees,  and all  invoices  provided  by the
Consultant  shall include the GST  registration  number and any other applicable
sales or value added tax registration numbers of the Consultant.

        4. EXPENSES

        The Client shall pay for or reimburse the Consultant for all reasonable,
ordinary  and  necessary  expenses  incurred by the  Consultant  in the ordinary
course  of  performing  the  Services  upon  presentation  of  proper  accounts,
statements, invoices or receipts for such items.

        5. INDEPENDENT CONTRACTOR

        The  Consultant's  relationship  with  the  Client  as  created  by this
Agreement is that of an  independent  contractor  for the purposes of the Income
Tax Act (Canada) and any similar provincial taxing  legislation.  It is intended
that the Consultant  shall have general control and direction over the manner in
which its  services  are to be  provided  to the Client  under  this  Agreement.
Nothing  contained in this Agreement  shall be regarded or construed as creating
any relationship  (whether by way of  employer/employee,  agency, joint venture,
association.  or  partnership)  between the parties other than as an independent
contractor as set forth herein.

        6. TIME AND EFFORT

        The Consultant  shall be free to devote such portion of the Consultant's
time,  energy,  effort and skill as the Consultant  sees fit, and to perform the
Consultant's  duties  when and where  the  Consultant  sees fit,  so long as the
Consultant  performs  the  Services  set out in this  Agreement  in a timely and
professional fashion.

        7. AUTHORITY

        The Consultant acknowledges that it is being retained as a consultant to
the Client and that as such it does not have the  authority and cannot commit or
bind the  Client  to any  matter,  contract  or  negotiation  without  the prior
authorization of the Client.

        8. COMPLIANCE

        (a) The Consultant  shall comply with a applicable  federal,  provincial
and municipal laws,  rules and regulations  arising out of or connected with the
performance  of the  Services  under this  Agreement  by the  Consultant  or its
employees.

        (b) The Consultant shall be responsible for all  Unemployment  Insurance
Contributions,  Canada  Pension  Plan  contributions,  Income  Tax and  Workers'
Compensation  payments  relating  to or  arising  out of the  fees  paid  to the
Consultant under this Agreement and the Services  performed by the Consultant or
its employees. Payments relating to any of the above shall be the responsibility
of the  Consultant  and shall be forwarded  by the  Consultant  as  appropriate,
directly to the  government  agencies  involved.  Proof of compliance  with this
requirement shall be available to the Client upon request.

<PAGE>

        (c) In the event that any taxing authority,  for whatever reason,  seeks
from the Client any Unemployment  Insurance  Contributions,  Canada Pension Plan
contributions,  Income Taxes or Workers' Compensation  payments,  the Consultant
agrees to indemnify the Client and any of its directors, officers and employees,
for the full  amount  of any  such  contributions  or  payments  (including  any
applicable interest and penalties  thereon).  The Consultant further agrees that
the  Client  may set off an  equal  amount  of such  contributions  or  payments
(including any applicable  interest and penalties  thereon) against any fees and
expenses payable to the Consultant under this Agreement.

        9. KEY PERSON

        The parties acknowledge that Ken Cai is a key employee of the Consultant
and is integral to the successful  performance of the Services by the Consultant
under this  Agreement.  It is  acknowledged  by the Consultant that Ken Cai will
perform all of the Services, unless the Client otherwise consents in writing.

        10. SUPPORT

        The Client agrees to provide such  assistance  and make  available  such
employees, office space and support to the Consultant as is reasonably necessary
to enable the Consultant to perform the Services under this Agreement.

        11. CONFIDENTIAL INFORMATION

        (a)  The  Consultant  acknowledges  that  certain  of the  material  and
information made available to the Consultant by the Client in the performance of
the Services (the "CONFIDENTIAL  INFORMATION") will be of a confidential nature.
The  Consultant  recognizes  that the  Confidential  Information is the sole and
exclusive  property of the Client, and the Consultant shall use its best efforts
and exercise utmost diligence to protect and maintain the confidentiality of the
Confidential Information.  The Consultant shall not, directly or indirectly, use
the  Confidential  Information  for its own benefit,  or disclose to another any
Confidential  Information,   whether  or  not  acquired,  learned,  obtained  or
developed by the Consultant alone or in conjunction with others,  except as such
disclosure  or use may be required in  connection  with the  performance  of the
Services or as may be consented to in writing by the Client.

        (b) The  Confidential  Information  is and  shall  remain  the  sole and
exclusive  property of the Client  regardless  of whether such  information  was
generated by the Consultant or by others,  and the  Consultant  agrees that upon
termination of this  Agreement it shall deliver  promptly to the Client all such
tangible parts of the Confidential  Information including records,  data, notes,
reports, proposals, client lists, correspondence,  materials, marketing or sales
information,  computer programs, equipment. or other documents or property which
are in the possession or under the control of the Consultant  without  retaining
copies thereof.

<PAGE>

        (c) Each of the foregoing  obligations  of the Consultant in this clause
shall also apply to any  confidential  information  of customers,  joint venture
parties, contractors and other entities, of any nature whatsoever, with whom the
Client or any associate or affiliate of the Client has business relations.

        (d)  Notwithstanding  the  foregoing  provisions  of  this  clause,  the
Consultant  shall  not  be  liable  for  the  disclosure  or  use  of any of the
Confidential Information to the extent that:

               (i)  the Confidential  Information is or becomes available to the
                    public from a source other than the  Consultant  and through
                    no fault of the Consultant; or

               (ii) the  Confidential  Information  is lawfully  obtained by the
                    Consultant  from a third  party or a source  outside of this
                    Agreement.

        (e) The covenants and agreements  contained in this clause shall survive
the termination of this Agreement.

        12. OTHER SERVICES

        The Consultant will be free to perform  consulting and other services to
the  Consultant's  other  clients  during the term of this  Agreement,  provided
however, that the Consultant shall ensure that the Consultant is able to perform
the Services  pursuant to this Agreement in a timely and  professional  fashion.
The Consultant agrees not to perform services for the Consultant's other clients
which may create a conflict  of  interest  or  interfere  with the  Consultant's
duties pursuant to this Agreement.

        13. TERMINATION

        (a) In the  event  that  the  Consultant  breaches  this  Agreement,  or
otherwise  fails to perform the  Services in  accordance  with the terms of this
Agreement,  the Client may  terminate  this  Agreement  immediately  and without
notice for cause. Either party may terminate this Agreement at any time, without
cause or reason, upon living 2 months advance written notice to the other.

        (b) Upon termination of this Agreement:

               (i)  the  Client's  obligations  to  the  Consultant  under  this
Agreement shall terminate except for the Client's obligation to pay any fees and
expenses  in  accordance  with  the  terms  of this  Agreement,  to the  date of
termination; and

               (ii)  the  Consultant's  obligations  to the  Client  under  this
Agreement  shall  terminate  except  those  obligations  which are  specifically
expressed to survive the termination of this Agreement.

        14. INDEMNIFICATION

        (a) The Client  undertakes  to, and does hereby agree to,  indemnify the
Consultant  and  its  directors.  officers  and  employees  against  any and all
actions,  suits, claims, costs, and demands,  losses, damages and expenses which
may be brought  against or  suffered by them or which they may  sustain,  pay or
incur by reason of the  Consultant's  performance  of the  Services  under  this

<PAGE>

Agreement,  with the exception of any such  actions,  suits,  claims,  costs and
demands,  losses,  damages and expenses caused by the wilful misconduct or gross
negligence of the Consultant or any of its directors, officers or employees.

        15. GOVERNING LAW

        This Agreement  shall be governed by the laws of the Province of Ontario
and the federal laws of Canada applicable therein.

        16. SEVERABILITY

        If any provision of this Agreement, or the application of such provision
to any person or in any circumstance, shall be determined to be invalid, illegal
or  unenforceable,   the  remaining  provisions  of  this  Agreement,   and  the
application  of such provision to any person or in any  circumstance  other than
that to which it is held to be invalid,  illegal or unenforceable,  shall not be
affected thereby.

        17. AMENDMENTS

        Any  amendment to this  Agreement  must be in writing and signed by both
parties hereto.

        18. TIME OF ESSENCE

        Time shall be of the essence in this Agreement.

        19. ENTIRE AGREEMENT

        This is the entire Agreement  between the Client and the Consultant with
respect to the  consulting  services  to be provided  by the  Consultant  to the
Client and supersedes any prior agreements with respect to such services whether
written or oral.

        20. NOTICES

        Notices  hereunder  shall be in  writing  and must be either  personally
delivered or sent by registered mail to the address(es) set forth above. A party
may change the address set forth above by proper notice to the other.

        21. NO WAIVER

        The  failure  of any party to insist  upon the strict  performance  of a
covenant or obligation  hereunder,  irrespective of the length of time for which
such failure  continues,  shall not be a waiver of such party's  right to demand
strict performance in the future. No consent or waiver,  express or implied,  to
or of any breach or default in the  performance  of any  covenant or  obligation
hereunder  shall  constitute  a consent  or waiver to or of any other  breach or
default in the performance of the same or of any other obligation hereunder.

        22. ASSIGNMENT

        This  Agreement  is personal in nature and may not be assigned by either
party hereto.

<PAGE>

        23. ENUREMENT

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

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

MINCO MINING & METALS CORPORATION

Per: /s/ PETER TSAPARAS
-----------------------------------------
Peter Tsaparas
Chairman of the Board

KAISUN GROUP CANADA INC.

Per: /s/ KEN CAI
-----------------------------------------
Ken Cai
President

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