Document:

EMC Metals Corp. - Exhibit 10.4 - Filed by newsfilecorp.com

Exploration Joint Venture Agreement

 

Jervois Mining Limited 

  ACN 007 626 575 

and

 

EMC Metals Corporation 
Registration
Number BC0763619 

 

 

Middletons 
Melbourne office 
Ref: DMB.10022564

Table of Contents 

	1.
      	Definitions
      and interpretation 	1
      
	1.1
      	Definitions
      	1
      
	1.2
      	Interpretation
      	8
      
	2.
      	Conditions
      precedent 	9
      
	2.1
      	Conditions
      precedent to completion 	9
      
	2.2
      	Parties
      must use best endeavours 	10
      
	2.3
      	Fulfilment
      by waiver 	10
      
	2.4
      	Failure
      of condition 	10
      
	2.5
      	Escrow
      Amount 	11
      
	3.
      	Establishment
      of Joint Venture 	11
      
	3.1
      	Formation
      of the Joint Venture 	11
      
	3.2
      	Objects
      and scope of Joint Venture 	11
      
	3.3
      	Rights,
      obligations and liabilities of parties 	12
      
	3.4
      	Party
      covenants 	12
      
	3.5
      	Party
      warranties 	12
      
	3.6
      	Jervois
      Warranties 	13
      
	3.7
      	Prior
      Royalty 	13
      
	4.
      	Initial
      Exploration Work 	13
      
	  	  	  
	5.
      	Feasibility
      Study 	15
      
	  	  	  
	6.
      	Joint
      Venture Interest 	15
      
	6.1
      	Initial
      Joint Venture Interest of Parties 	15
      
	6.2
      	EMC
      Joint Venture Interest 	15
      
	6.3
      	No
      obligation to demonstrate expenses 	15
      
	7.
      	Management
      Committee 	16
      
	7.1
      	Establishment
      	16
      
	7.2
      	General
      responsibilities 	16
      
	7.3
      	Membership
      	16
      
	7.4
      	Meetings
      	16
      
	7.5
      	Quorum
      	17
      
	7.6
      	Voting
      	17
      
	7.7
      	Minutes
      	18
      
	7.8
      	Costs
      	18
      
	7.9
      	Sub-committees
      	18
      
	8.
      	Manager
      	18
      
	8.1
      	Appointment
      of Manager 	18
      
	8.2
      	Term
      of appointment of Manager 	18
      
	8.3
      	Remuneration
      	18
      
	8.4
      	Appointment
      of new Manager 	19
      
	8.5
      	Liability
      of Manager 	19
      
	8.6
      	Indemnity
      to Manager 	19
      
	9.
      	Functions,
      powers and duties of Manager 	19
      
	9.1
      	Functions
      of the Manager 	19
      

	Table of Contents (ctd) 	2 	 

	9.2
      	Powers
      and duties of the Manager 	20
      
	9.3
      	Manager’s
      obligations are subject to provision of funds 	21
      
	9.4
      	Manager
      may delegate 	22
      
	9.5
      	Agreement
      with Related Body Corporate 	22
      
	9.6
      	Litigation
      	22
      
	10.
      	Decision
      to Mine 	22
      
	  	  	  
	11.
      	Mining
      JV 	22
      
	  	  	  
	12.
      	Contribution
      to Joint Venture Costs 	23
      
	12.1
      	Ongoing
      contributions 	23
      
	12.2
      	Cash
      Calls 	23
      
	13.
      	Programmes
      and Budgets 	23
      
	13.1
      	Proposed
      Programme and Budget 	23
      
	13.2
      	Approved
      Programme and Budget 	23
      
	13.3
      	Expenditure
      not covered by Programme and Budget 	24
      
	14.
      	Accounts,
      reports, audit and access 	24
      
	14.1
      	Joint
      Venture accounting 	24
      
	14.2
      	Reports
      to Joint Venturers 	24
      
	14.3
      	Joint
      Venture accounts and audit 	24
      
	14.4
      	Individual
      Joint Venturer responsibilities 	25
      
	14.5
      	Joint
      Venturer access 	25
      
	15.
      	Withdrawal
      and Dilution 	25
      
	15.1
      	Required
      payments 	25
      
	15.2
      	Withdrawal
      prior to Mining JV Commencement Date 	25
      
	15.3
      	Other
      obligations 	25
      
	15.4
      	Unpaid
      cash calls 	25
      
	15.5
      	Dilution
      	27
      
	15.6
      	Additional
      Called Sums 	28
      
	15.7
      	Re-assessment
      of Programme and Budget 	28
      
	15.8
      	Transfer
      of Joint venture Interest 	28
      
	15.9
      	Withdrawal
      of Dilution Notice 	28
      
	15.10
      	Minimum
      Joint Venture Interest and Royalty 	28
      
	16.
      	Default
      	29
      
	16.1
      	Default
      Events 	29
      
	16.2
      	Breach
      Default Events to be remedied 	29
      
	16.3
      	Unpaid
      Monies Default Event 	29
      
	16.4
      	Proceedings
      against Defaulting Joint Venturer 	29
      
	17.
      	Term
      and termination 	30
      
	17.1
      	Term
      of Agreement 	30
      
	17.2
      	Winding
      up of Joint Venture Activities 	30
      
	17.3
      	Upon
      Termination of this Agreement 	31
      
	17.4
      	Continuing
      obligations 	31
      
	17.5
      	Extension
      of term 	31
      
	18.
      	Confidentiality
      	31
      
	18.1
      	Obligations
      of confidentiality 	31
      

	Table of Contents (ctd) 	3 	 

	18.2
      	Exceptions
      	31
      
	18.3
      	Authorised
      disclosure 	32
      
	18.4
      	Return
      or destruction of confidential information 	32
      
	18.5
      	Warranties
      	33
      
	18.6
      	Liability
      for breach by recipient 	33
      
	18.7
      	Indemnity
      from receiving party 	33
      
	18.8
      	Joint
      News Release 	33
      
	18.9
      	Survival
      of clause 	33
      
	19.
      	Dispute
      resolution 	33
      
	19.1
      	Delivering
      a dispute notice 	34
      
	19.2
      	Parties
      must negotiate 	34
      
	19.3
      	Referral
      to Third Party 	34
      
	19.4
      	Determination
      by expert 	34
      
	19.5
      	Obligations
      of parties 	35
      
	19.6
      	Other
      proceedings 	35
      
	20.
      	Force
      majeure 	35
      
	20.1
      	Giving
      of notice 	35
      
	20.2
      	Liability
      for force majeure 	36
      
	20.3
      	Exceptions
      	36
      
	20.4
      	Effort
      to overcome 	36
      
	20.5
      	Right
      of termination 	36
      
	21.
      	GST
      	36
      
	21.1
      	Definitions
      	36
      
	21.2
      	Consideration
      is GST exclusive 	37
      
	21.3
      	Payment
      of GST 	37
      
	21.4
      	Reimbursement
      of expenses 	37
      
	22.
      	General
      	37
      
	22.1
      	Nature
      of obligations 	37
      
	22.2
      	Time
      of the essence 	37
      
	22.3
      	Entire
      understanding 	38
      
	22.4
      	No
      adverse construction 	38
      
	22.5
      	Further
      assurances 	38
      
	22.6
      	No
      waiver 	38
      
	22.7
      	Severability
      	38
      
	22.8
      	Successors
      and assigns 	38
      
	22.9
      	No
      assignment 	38
      
	22.10
      	Consents
      and approvals 	39
      
	22.11
      	No
      variation 	39
      
	22.12
      	Costs
      	39
      
	22.13
      	Duty
      	39
      
	22.14
      	Governing
      law and jurisdiction 	39
      
	22.15
      	Notices
      	39
      
	22.16
      	Counterparts
      	40
      
	22.17
      	Conflicting
      provisions 	40
      
	22.18
      	Non
      merger 	40
      
	22.19
      	Operation
      of indemnities 	40
      
	22.20
      	No
      right of set-off 	40
      

	Table of Contents (ctd) 	4 	 

	Schedule
      1 – Tenements 	41
      
	 	 
	Schedule
      2 – Freehold Land 	43
      
	 	 
	Schedule
      3 – Mining Joint Venture principles 	44
      
	 	 
	Schedule
      4 – New Royalty Deed 	45
      

Exploration Joint Venture Agreement

Date                  
 February 5, 2010 

Parties 

	1. 	
      Jervois Mining Limited ACN 007 626 575 of Suite
      12, 10 Jamieson Street, Cheltenham Victoria, Australia 3192
      (Jervois)

	 	 
	2. 	
      EMC Metals Corporation Registration Number
      BC0763619 of 11th Floor, 888 Dunsmuir Street - Vancouver, British
      Columbia, Canada V6C 3K4 (EMC)

Background 

	A. 	
      Jervois owns certain freehold land, tenements and
      exploration licences and information in respect of a site located at
      Nyngan, New South Wales as set out in the plan attached in Schedule 1
      (Site) subject to the Prior Royalty.

	 	 
	B. 	
      Significant scandium deposits may be located at the
      Site.

	 	 
	C. 	
      EMC is involved in scandium related research and
      commercial development projects and requires access to resources
      containing scandium.

	 	 
	D. 	
      The parties have agreed to establish a joint venture for
      the purpose of undertaking Exploration and Development activities with a
      view to commercially developing a dedicated scandium mine and processing
      plant at the Site.

	 	 
	E. 	
      The Parties enter into this Agreement to set out the
      terms upon which EMC may acquire interests in the Joint Venture Property
      and the terms that will govern the Parties ongoing relationship in respect
      of the Joint Venture Property.

	 	 
	F. 	
      Each Party has obtained the unconditional approval of its
      Board of Directors to the entry by that Party into and to the execution by
      that Party of this Agreement.

	 	 
	G. 	
      The parties have agreed that the terms of this Agreement
      will be subject to the Prior Royalty and royalty payments due pursuant to
      the Prior Royalty will be met as a Joint Venture
expense.

Agreed terms 

	1. 	
      Definitions and interpretation

	 	 	 
	1.1 	
      Definitions

	 	 	 
		
      In this Agreement:

	 	 	 
		
      Accounting Standards means:

	 	 	 
		(a) 	
      the accounting standards made by the Australian
      Accounting Standards Board in accordance with the Corporations Act, and
      the requirements of that Act relating to the preparation and content of
      accounts; and

2 

	 	(b) 	
      generally accepted accounting principles that are
      consistently applied in Australia, except those inconsistent with the
      standards or requirements referred to in paragraph
(a);

Affected Obligations and
Affected Party have the meanings given to those terms in the definition
of “Force Majeure Event”; 

Agreement means this agreement
including the background, any schedules and any annexures; 

Approved Programmes and Budget
means a programme and budget relating to Joint Venture Activities during a
particular period which has been approved or deemed to have been approved by the
Management Committee under this Agreement;

Auditor means a registered
company auditor under the Corporations Act appointed by the Management Committee
at the cost of the Joint Venture to conduct an audit each Year of the accounts
of the Joint Venture; 

Authorisation means any consent,
permit authorisation, registration, filing, agreement, notarisation,
certificate, permission, licence, approval, authority or exemption whether from,
by or with, a Governmental Agency or any other person; 

Business Day means a day that is
not a Saturday, Sunday, public holiday or bank holiday in Melbourne, Australia
or in Vancouver, Canada; 

Cash Call means a call by the
  Manager for the Joint Venturers to contribute their respective share of the
  Joint Venture Costs for a Year in accordance with clause 12.2; 

Commencement Date means the date
upon which each of the Conditions Precedent are satisfied or waived in
accordance with clause 2;

Conditions Precedent means the
conditions precedent to this Agreement set out in clause 2; 

Confidential Information means:

	 	(a) 	
      the terms of this Agreement and its subject matter,
      including Information submitted or disclosed by either party during
      negotiations, discussions and meetings relating to this
  Agreement;

	 	 	 
	 	(b) 	
      Information that at the time of disclosure by a
      Disclosing Party is identified to the Receiving Party as being
      confidential; and

	 	 	 
	 	(c) 	
      all other Information belonging or relating to a
      Disclosing Party, or any Related Entity of that Disclosing Party, that is
      not generally available to the public at the time of disclosure other than
      by reason of a breach of this Agreement or which the Receiving Party
      knows, or ought reasonably to be expected to know, is confidential to that
      Disclosing Party or any Related Entity of that Disclosing
  Party;

Controller means, in relation to
a person: 

	 	(a) 	
      a receiver, receiver and manager, administrator or
      liquidator (whether provisional or otherwise) of that person or that
      person's property; or

	 	 	 
	 	(b) 	
      anyone else who (whether or not as agent for the person)
      is in possession, or has control, of that person's property to enforce an
      Encumbrance;

3 

Corporations Act means the
Corporations Act 2001 (Cth);

Development means the
development of a commercial Mining operation for Minerals;

Development Expenditure means
all cash, expenses, obligations and liabilities of whatever kind or nature spent
or incurred directly or indirectly in connection with the exploration and
development of the Tenements, including without limitation: 

	 	(a) 	
      monies expended in maintaining the Tenements in good
      standing by doing and filing assessment work:

	 	 	 	 
	 	(b) 	
      geophysical, geochemical and geological surveys,
      drilling, assaying and metallurgical testing and marketing
  studies;

	 	 	 	 
	 	(c) 	
      acquiring facilities;

	 	 	 	 
	 	(d) 	
      paying the fees, wages, salaries, travel expenses and
      fringe benefits (whether or not required by law) of all persons engaged in
      work with respect to and for the benefit of the Joint Venture
      Activities;

	 	 	 	 
	 	(e) 	
      paying for the food, lodging and other reasonable needs
      of such persons:

	 	 	 	 
	 		(i) 	
      supervision of management of all work done with respect
      to and for the benefit of the Joint Venture Activities, but not including
      any head office administrative or overhead expenses whether direct or
      allocated;

	 	 	 	 
	 		(ii) 	
      a credit towards exploration and development expenditures
      of on account of head office administrative or overhead expenses which
      shall not exceed 10% of the exploration and development expenditures
      incurred directly on the Joint Venture Activities.

Decision to Mine means a
decision made by the Management Committee to proceed to Development and Mining
of a Deposit within the Tenements;

Defaulting Joint Venturer means
  a Joint Venturer which has committed a breach of this Agreement; 

Deposit means an ore body
located within the Tenements;

Development means the
development of a commercial Mining operation for Minerals; Diluting
Joint Venturer has the meaning given in clause 15.4(f); Dilution
Notice has the meaning given in clause 15.4(f); Disclosing Party
means the party to whom Information belongs or relates; Earned Interest
Date means the date set out in clause 6.2(b); Election Date has the
meaning given in clause 4; 

Emergency means a situation involving
  actual or reasonably apprehended substantial damage to or loss of Joint Venture
  Property or injury to persons or loss of life; 

Encumbrance means: 

4 

	 	(a) 	
      an interest or power reserved in or over an interest in
      an asset, including any retention of title;

	 	 	 
	 	(b) 	
      an interest or power created or arising in or over an
      interest in an asset under a bill of sale, mortgage, charge, lien, pledge,
      trust or other similar instrument, device or power; or

	 	 	 
	 	(c) 	
      any other adverse right, title or interest of any nature,
      by way of security for the payment of a debt or the performance of any
      other obligation,

and includes any agreement or
arrangement (whether legally binding or not) to grant or create any of the
above; 

Exploration means search for,
discovery and delineation of commercial deposits of Minerals at the Site and the
evaluation of such deposits, including prospecting, surface mapping, sampling,
aerial mapping and reconnaissance, drilling, trenching and related field work,
geophysical and geochemical testing, core sampling, assaying, test mining,
analysis and evaluation of activities undertaken and results obtained,
conducting metallurgical testing, preliminary feasibility studies, preparing
Feasibility Study reports and planning, supervising and administrating all
activities undertaken;

Feasibility Study means a NI
43-101 compliant feasibility study, reviewed and endorsed in writing by a
recognized independent minerals industry consulting firm which is an independent
qualified person for the purpose as defined in NI 43-101, prepared in a form and
manner and with all necessary consents and authorizations of the independent
qualified person such that it can be filed and used by EMC and JRV in compliance
with NI 43-101, and in a form customarily required by third-party financing
organizations, showing the feasibility of placing the Site into production, in
such form and detail and using such assumption as to mineral prices customarily
used in determining the viability of similar mining projects and including a
reasonable assessment of the mineable mineral reserves and their amenability to
milling, a description of the work, equipment and supplies required to bring the
Site into production and the estimated cost thereof, a description of the mining
methods to be employed and a financial appraisal of the proposed operations;

Financial Year means each period
of 12 months commencing on 1 July;

Force Majeure Event means any
act, event or cause including: 

	 	(a) 	
      an act of God, peril of the sea, accident of navigation,
      war, sabotage, riot, act of terrorism, insurrection, civil commotion,
      national emergency (whether in fact or law), martial law, fire, lightning,
      flood, cyclone, earthquake, landslide, storm or other adverse weather
      conditions, explosion, power shortage, strike or other labour difficulty
      (whether or not involving employees of the party concerned), epidemic,
      quarantine, radiation or radioactive contamination;

	 	 	 
	 	(b) 	
      an action or inaction of a Government Agency, including
      expropriation, restraint, prohibition, intervention, requisition,
      requirement, direction or embargo by legislation, regulation, decree or
      other legally enforceable order;

	 	 	 
	 	(c) 	
      Native Title Claims; or

	 	 	 
	 	(d) 	
      unavailability of equipment or transport, or inability to
      access the Tenements or any relevant portion of
them,

5 

to the extent that the act, event or
cause directly or indirectly results in a party (Affected Party) being
prevented from or delayed in performing one or more of its material obligations
under this Agreement (Affected Obligations); 

Freehold Land means the land
described in Schedule 2;; 

Government Agency means any
government or any public, statutory, governmental (including a local
government), semi-governmental or judicial body, entity, department or authority
and includes any self-regulatory organisation established under statute; 

GST Act means A New Tax
System (Goods and Services Tax) Act 1999 (Cth);

Gross Negligence means a
reckless disregard for the consequences of an act or omission; 

Information means any
information, whether oral, graphic, electronic, written or in any other form,
including: 

	 	(a) 	
      forms, memoranda, letters, specifications, processes,
      procedures, statements, formulae, technology, inventions, trade secrets,
      research and development information, know how, designs, plans,
      photographs, microfiche, business records, notes, accounting procedures or
      financial information, sales and marketing information, names and details
      of customers, suppliers and agents, employee details, reports, drawings
      and data;

	 	 	 
	 	(b) 	
      copies and extracts made of or from that information and
      data, whether translated from the original form, recompiled, partially
      copied, modified, updated or otherwise altered; and

	 	 	 
	 	(c) 	
      samples or specimens (if any) disclosed either before or
      after execution of this Agreement;

Initial Exploration Works has
the meaning given in clause 4; 

Initial Exploration Works Period
has the meaning given in clause 4; 

Insolvency Event means, in
relation to a party, any one or more of the following events or circumstances:

	 	(a) 	
      being in liquidation or provisional liquidation or under
      administration;

	 	 	 
	 	(b) 	
      having a Controller or analogous person appointed to it
      or any of its property;

	 	 	 
	 	(c) 	
      being taken under section 459F(1) of the Corporations Act
      to have failed to comply with a statutory demand;

	 	 	 
	 	(d) 	
      being unable to pay its debts or being otherwise
      insolvent;

	 	 	 
	 	(e) 	
      becoming an insolvent under administration, as defined in
      section 9 of the Corporations Act;

	 	 	 
	 	(f) 	
      entering into a compromise or arrangement with, or
      assignment for the benefit of, any of its members or creditors;

	 	 	 
	 	(g) 	
      any analogous event or circumstance under the laws of any
      jurisdiction,

6 

unless such event or circumstance
occurs as part of a solvent reconstruction, amalgamation, compromise,
arrangement, merger or consolidation approved by the other party; 

Joint Venture means the joint
venture established under this Agreement;

Joint Venture Activities means
all activities directed towards the achievement of the objects of the Joint
Venture set out in clause 3.2 or any one or more of those activities;

Joint Venture Costs means all
costs, expenses and liabilities incurred in connection with Joint Venture
Activities, accounted for in accordance with this Agreement;

Joint Venture Interest means the
interest of each Joint Venturer in the Joint Venture Property under this
Agreement;

Joint Venture Property means the
Freehold Land, the Tenements and all Information held by Jervois in relation to
the Tenements and, where the context requires, all rights, titles, interest,
claims, benefits and all other property of whatever kind, real or personal, from
time to time owned by the Parties for the purposes of the Joint Venture;

Joint Venturers means the
parties to this Agreement;

Law means: 

	 	(a) 	
      principles of law or equity established by decisions of
      courts;

	 	 	 
	 	(b) 	
      statutes, regulations or by-laws of the Commonwealth, a
      State, a Territory or a Government Agency; and

	 	 	 
	 	(c) 	
      requirements and approvals (including conditions) of the
      Commonwealth, a State, a Territory or a Government Agency that have the
      force of law;

Listing Rules means the listing
rules of the ASX Limited ACN 008 624 691 as amended from time to time; 

Management Committee means the
committee established by the parties under clause 7;

Manager means EMC or such other
manager as may be engaged from time to time under the terms of this Agreement or
appointed by the Management Committee from time to time under this
Agreement;

Minerals means all minerals;

Mining means all operations
associated with the extraction and treatment of Minerals on a commercial
bass;

Mining Act means the
Mining Act 1992 (NSW) and any regulations promulgated pursuant to that
Act;

Mining JV Commencement Date
means the date on which the parties make the Decision to Mine and enter into the
Mining JVA;

Mining JVA means the Mining
Joint Venture Agreement to be entered into by the parties on the Mining JV
Commencement Date on terms not inconsistent with: 

7 

	 	(a) 	
      the principles set out in Schedule 3; and

	 	 	 
	 	(b) 	
      this Agreement;

Native Title Claim means
either:

	 	(a) 	
      any claim, application or proceeding in respect of Native
      Title Rights which is accepted by the Native Title Tribunal or the
      Registrar thereof pursuant to the

	 	 	 
	 		
      Native Title Act 1993 (Cth); or

	 	 	 
	 	(b) 	
      any claim, application or proceeding in respect of those
      rights, interest and statutory protections of and relating to aboriginal
      persons as set out in the legislation of New South Wales or the
      Aboriginal and Torres Strait Islander Heritage Protection Act 1984
      (Cth);

Native Title Rights has the same
meaning as the expressions “native title” or “native title rights and interest”
as defined in section 223(1) of the Native Title Act 1993 (Cth) and
includes those rights, interests and statutory protections of and relating to
aboriginal persons as set out in the relevant legislation of New South Wales or
the Aboriginal and Torres Strait Islander Heritage Protection Act 1984
(Cth);

New Royalty has the meaning
given in clause 15.4(f); 

New Royalty Deed means a royalty
deed containing the provisions set out in Schedule 4; 

Option Payment has the meaning
given in clause 2; 

Penalty Interest Rate means the
rate which is 2% per annum above the rate specified from time to time under
section 2 of the Penalty Interest Rates Act 1983 (Vic). 

Prior Royalty means the royalty
interest under the agreement between Jervois, Plumbum Pty Ltd and Kannateal Pty
Ltd dated 4 June 2002 as amended by the Addendum to that agreement dated 30
October 2003; 

Proposed Programme and Budget
means a work programme and budget for a given Financial Year, or other agreed
period, in relation to the conduct of the Joint Venture Activities proposed by
the Manager;

Receiving Party means the party
to whom Information is disclosed or who possesses or otherwise acquires
Information belonging or relating to a Disclosing Party; 

Rehabilitation Obligations means
  the obligations of the Joint Venturers under the Mining Act, all Tenements and
  Authorisations, and all applicable statutory and contractual obligations relating
  to the rehabilitation, revegetation and cleaning up of the Site during and following
  completion of the Joint Venture Activities; 

Related Body Corporate has the
meaning given to that term in the Corporations Act;

Related Entity has the meaning
given to that term in the Corporations Act; 

Satisfaction Date means the date
occurring 60 Business Days after the date of execution of this Agreement or such
later date as the parties may agree in writing; 

Scandium means the metal
Scandium with the symbol Sc in the periodic table of the elements; 

8 

		
      Shutdown Costs means all costs associated with
      shutting down all Joint Venture Activities including the costs associated
      with the satisfaction of the Rehabilitation Obligations and any redundancy
      or termination benefits or payments to any consultant or contractor or
      employee who is engaged by the Manager in the conduct of Joint Venture
      Activities, but only to the extent of the period for which an employee was
      engaged with the Joint Venture Activities;

	 	 
		
      Site has the meaning given in Background A to this
      Agreement;

	 	 
		
      Tenement means the mining tenement or tenements
      listed in Schedule 1 and includes any lease, licence, claim, permit or
      other authority issued or to be issued under the Mining Act to Jervois for
      the purposes of the Joint Venture which confers or may confer a right to
      prospect, explore for or mine any Mineral in the Site, or which may
      facilitate the enjoyment of such rights, and includes any application for,
      and any extension, renewal, conversion or substitution of, any of those
      tenements;

	 	 
		
      Third Party means a person who is not a party to
      this Agreement; and

	 	 
		
      Wilful Misconduct means an act or omission done or
      omitted recklessly or wantonly without regard for the consequences of that
      act or omission.

	 	 
	1.2 	
      Interpretation

	 	 
		
      In this Agreement, unless the context requires
      otherwise:

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

	 	 	 
	 	(b) 	
      a gender includes the other genders;

	 	 	 
	 	(c) 	
      the headings are used for convenience only and do not
      affect the interpretation of this Agreement;

	 	 	 
	 	(d) 	
      other grammatical forms of defined words or expressions
      have corresponding meanings;

	 	 	 
	 	(e) 	
      a reference to a document includes the document as
      modified from time to time and any document replacing it;

	 	 	 
	 	(f) 	
      if something is to be or may be done on a day that is not
      a Business Day then it must be done on the next Business Day;

	 	 	 
	 	(g) 	
      the word "person" includes a natural person and any body
      or entity whether incorporated or not;

	 	 	 
	 	(h) 	
      the word "month" means calendar month and the word "year"
      means 12 months;

	 	 	 
	 	(i) 	
      the words "in writing" include any communication sent by
      letter, facsimile transmission or email or any other form of communication
      capable of being read by the recipient;

	 	 	 
	 	(j) 	
      a reference to a thing includes a part of that
    thing;

	 	 	 
	 	(k) 	
      a reference to all or any part of a statute, rule,
      regulation or ordinance (statute) includes that statute as amended,
      consolidated, re-enacted or replaced from time to
time;

9 

	 	(l) 	
      wherever "include" or any form of that word is used, it
      must be construed as if it were followed by "(without being limited
      to)";

	 	 	 
	 	(m) 	
      money amounts are stated in Australian currency unless
      otherwise specified; and

	 	 	 
	 	(n) 	
      a reference to any agency or body, if that agency or body
      ceases to exist or is reconstituted, renamed or replaced or has its powers
      or functions removed (defunct body), means the agency or body which
      performs most closely the functions of the defunct
body.

	2. 	
      Conditions precedent

	 	 
	2.1 	
      Conditions precedent to completion

	 	 
		
      The formation of the Joint Venture is conditional on each
      of the following conditions (Conditions) being satisfied, or waived
      under clause 2.3, on or before the Satisfaction Date or any other date
      agreed by the parties in writing:

	 	Condition 	   Party entitled 
	 	  		 	   to benefit 
	 	(a) 	 EMC being reasonably satisfied
        that Jervois, subject to the Prior Royalty interest, is the sole and beneficial
        owner of the Joint Venture Property at the date of execution of this Agreement,
        free of encumbrances or claims by Third Parties and that the Joint Venture
        Property is in good standing under the relevant legislation. 
	   EMC 
	 	  		  
	  
	 	(b) 	  
	   Jervois 
	 	  		  
	  
	 		(i) 	 EMC having paid the amount required
        under clause 2.5 (Escrow Amount) into the escrow account established
        under clause 2.5; and 
	
	 	  		  
	  
	 		(ii) 	 Freehills releasing the Escrow
        Amount to Jervois in accordance with clause 2.5(c). 
	
	 	  		  
	  
	 	(c) 	 Approval of the Toronto Stock
        Exchange of this Agreement and the transactions contemplated by it. 
	   Jervois and EMC 
	 	  		  
	  
	 	(d) 	 Consent of the New South Wales
        state government to the transactions contemplated in this Agreement or
        each of the Parties being reasonably satisfied that consent is not required.
      
	   Jervois and EMC 
	 	  		  
	  
	 	(e) 	 If required, EMC gives the
        Treasurer of Australia a notice under section 25 (or, where applicable,
        section 26 or 26A) of the Foreign Acquisitions and Takeovers Act 1975
        (Cth) (FATA) relating to the transactions contemplated by this
        Agreement and: 
	   Jervois and EMC 
	 	  	 	  
	  
	 		(i) 	 the Treasurer advises EMC that
        the Commonwealth of Australia has no objection to the transactions contemplated
        by this Agreement and any conditions imposed by the Treasurer are reasonably
        acceptable to EMC and Jervois; or 
	

10 

	 	Condition 	   Party entitled 
	 	  		 	   to benefit 
			(ii) 	 the period in which the Treasurer
        is empowered to make an order under Part II of FATA lapses without the
        Treasurer having made such an order. 
	
	 	  		  
	  
		(f) 	 Jervois being reasonably satisfied
        of the financial capacity of Jervois EMC to carry out its obligations
        under the Agreement. 
	

	2.2 	
      Parties must use best endeavours

	 	 	 	 
		(a) 	
      Each party must use its best endeavours (within its own
      capacity) to ensure that each condition referred to in clause 2.1
      (Condition) is fulfilled or waived on or before the date specified
      in that clause.

	 	 	 	 
		(b) 	
      Each party must:

	 	 	 	 
			(i) 	
      supply each other party with copies of all applications
      made and documents supplied for the purpose of fulfilling any
      Condition;

	 	 	 	 
			(ii) 	
      not take any action that would, or would be likely to,
      prevent or hinder the fulfilment of any Condition; and

	 	 	 	 
			(iii) 	
      within 2 Business Days of a party becoming aware that a
      Condition has been fulfilled, notify the other parties in writing of that
      fact.

	 	 	 	 
		(c) 	
      Nothing in this clause 2.2 requires a party to waive any
      Condition under clause 2.3 or accept unreasonable conditions or
      requirements imposed by Third Parties to satisfy any Condition.

	 	 	 	 
		(d) 	
      Without limiting anything in clause 2.2(a) or 2.2(b), EMC
      must apply for (and do everything reasonably necessary to obtain) the
      approval referred to in clause 2.1(c) immediately on execution of this
      Agreement.

	 	 	 	 
	2.3 	
      Fulfilment by waiver

	 	 	 	 
		
      A Condition is only waived:

	 	 	 	 
		(a) 	
      where the Condition is expressed to be for the benefit of
      a party, if that party gives notice of waiver of the Condition to the
      other party; or

	 	 	 	 
		(b) 	
      otherwise, if the parties agree in writing to waive the
      Condition,

	 	 	 	 
		
      but only to the extent set out in the waiver.

	 	 	 	 
	2.4 	
      Failure of condition

	 	 	 	 
		(a) 	
      If a party has complied with its obligations under clause
      2.2, it may terminate this Agreement by giving notice to the other party
      if:

	 	 	 	 
			(i) 	
      each Condition is not fulfilled, or waived under clause
      2.3, before 5.00pm on the Satisfaction Date;
or

11 

	 	(ii) 	
      a Condition having been fulfilled, that Condition does
      not remain fulfilled in all respects at all times until the Satisfaction
      Date.

	 	(b) 	
      On termination under clause 2.4(a), no party has any
      obligation or liability to any other party, except in connection with
      claims that arose before termination.

	2.5 	
      Escrow Amount

	 	 	 	 
		(a) 	
      Within 5 days of execution of this Agreement, EMC must
      pay into an interest- bearing escrow account established by the Australian
      law firm, Freehills (John Tivey, Partner) in favour of Jervois the sum of
      CAD$300,000 (together with any goods and services tax, other taxes or
      charges that may be imposed on payment of that amount) (Escrow
      Amount).

	 	 	 	 
		(b) 	
      The Escrow Amount is to be held in escrow by Freehills in
      favour of Jervois in accordance with this clause 2.5 pending satisfaction
      or waiver of each Condition (other than the Conditions referred to in
      clause 2.1(b)) prior to the Satisfaction Date.

	 	 	 	 
		(c) 	
      EMC must instruct Freehills to release, and Freehills
      must release, the Escrow Amount (together with any accrued interest on the
      Escrow Amount) to Jervois on the date that the last Condition (other than
      the Conditions referred to in clause 2.1(b)) is satisfied or
  waived.

	 	 	 	 
		(d) 	
      If this Agreement is terminated under clause 2.4(a), EMC
      may instruct Freehills to release the Escrow Amount (together with any
      accrued interest on the Escrow Amount) to EMC.

	 	 	 	 
	3. 	
      Establishment of Joint Venture

	 	 	 	 
	3.1 	
      Formation of the Joint Venture

	 	 	 	 
		
      The parties agree to establish with effect from the
      Commencement Date an unincorporated joint venture on and subject to the
      terms set out in this Agreement.

	 	 	 	 
	3.2 	
      Objects and scope of Joint Venture

	 	 	 	 
		(a) 	
      The objects of the Joint Venture are to:

	 	 	 	 
			(i) 	
      assess the technical and economic viability of a mine and
      processing plant at the Site;

	 	 	 	 
			(ii) 	
      explore the Tenements for Minerals and, without
      limitation, for Scandium;

	 	 	 	 
			(iii) 	
      identify whether there is a commercially mineable
      resource of Scandium at the Site;

	 	 	 	 
			(iv) 	
      conduct the Feasibility Study;

	 	 	 	 
			(v) 	
      if the Feasibility Study indicates a commercially
      mineable resource and the parties make the Decision to Mine, carry out
      Mining and Development at the Site; and

	 	 	 	 
			(vi) 	
      negotiate and implement the Mining
JVA.

12 

	 		
      with the objective of carrying out mine development,
      mining operations and processing operations for Scandium oxide of a
      marketable quality with an annual production capacity of at least 10
      metric tonnes of Scandium Oxide (Sc2O3) on and
      subject to the terms set out in this Agreement.

	 	 	 
	 	(b) 	
      The scope of the Joint Venture Activities under this
      Agreement does not extend to Mining or any other activity, unless the
      parties otherwise agree in writing.

	3.3 	
      Rights, obligations and liabilities of
    parties

	 	 	 	 
		
      The Joint Venturers agree that:

	 	 	 	 
		(c) 	
      other than where specifically indicated to the contrary
      in this Agreement, the rights, duties, obligations and liabilities of the
      parties will in every case, be several and not joint, nor joint and
      several;

	 	 	 	 
		(d) 	
      the relationship between the parties is one of joint
      venturers and, except as expressly and specifically provided for in this
      Agreement, nothing contained in this Agreement constitutes any party as an
      agent, partner, employee, representative or trustee of the other party, or
      creates any agency, partnership, employment or representative relationship
      or trust for any purpose whatsoever; and

	 	 	 	 
		(e) 	
      except as otherwise specifically provided for in this
      Agreement, each party does not have any authority or power to act for, or
      to create or assume any responsibility, liability or obligation on behalf
      of the other party.

	 	 	 	 
	3.4 	
      Party covenants

	 	 	 	 
		(a) 	
      Each Joint Venturer covenants and agrees as a separate
      covenant with the other party:

	 	 	 	 
			(i) 	
      to perform any obligations and commitments it may have in
      relation to the Site under the Mining Act or other applicable
      legislation;

	 	 	 	 
			(ii) 	
      to perform its obligations under or relating to the
      fulfilment of any contract which relates to the Joint Venture or the Joint
      Venture Activities;

	 	 	 	 
			(iii) 	
      not to engage either alone or in association with another
      or others in any activity over the Site except as provided or authorised
      under this Agreement; and

	 	 	 	 
			(iv) 	
      to be just and faithful, to cooperate with and act
      reasonably in all its dealings with the other party and the Manager
      concerning the Joint Venture, provided that, except as expressly provided
      by this Agreement, neither party is under any fiduciary or other duty to
      the other party.

	 	 	 	 
		(b) 	
      For the avoidance of doubt, each party has the
      unrestricted right to engage in and receive the full benefit of any
      competing activities outside the Site.

	 	 	 	 
	3.5 	
      Party warranties

	 	 	 	 
		
      Each Joint Venturer warrants for the benefit of the other
      Joint Venturer that:

	 	 	 	 
		(a) 	
      (Incorporation) it is validly incorporated,
      organised and subsisting in accordance with the Laws of its place of
      incorporation;

13 

	 	(b) 	
      (Power and capacity) it has full power and
      capacity to enter into and perform its obligations under this
      Agreement;

	 	 	 
	 	(c) 	
      (Corporate authorisations) all necessary
      authorisations for the execution, delivery and performance by it of this
      Agreement in accordance with its terms have been obtained;

	 	 	 
	 	(d) 	
      (No legal impediment) its execution, delivery and
      performance of this Agreement complies with its constitution and does not
      constitute a breach of any Law or obligation, or cause a default under any
      agreement by which it is bound; and

	 	 	 
	 	(e) 	
      (No trust) it enters into and performs this
      Agreement on its own account and not as trustee for or nominee of any
      other person.

	3.6 	
      Jervois Warranties

	 	 	 	 
		
      Jervois warrants to EMC that as at the date of execution
      of this Agreement:

	 	 	 	 
		(a) 	
      the tangible and intangible property related to the
      Tenements is in good standing;

	 	 	 	 
		(b) 	
      all taxes, rentals and other payments and all acts
      required to be done to maintain the Tenements in good standing have been
      paid and made and there has been no default by Jervois which would allow
      any other rights comprised in the project to be cancelled;

	 	 	 	 
		(c) 	
      Jervois owns the Joint Venture Property at the date of
      execution of this Agreement free and clear of any claims, encumbrances and
      restrictions on transfer; and

	 	 	 	 
		(d) 	
      other than the Prior Royalty, no Third Party has any
      interest, royalty, or right to acquire any interest or royalty, in the
      Project.

	 	 	 	 
	3.7 	
      Prior Royalty

	 	 	 	 
		
      The parties acknowledge and agree that:

	 	 	 	 
		(a) 	
      the terms of this Agreement will be subject to the Prior
      Royalty; and

	 	 	 	 
		(b) 	
      and royalty payments due pursuant to the Prior Royalty
      after the date of this Agreement will be met as a Joint Venture
      expense.

	 	 	 	 
	4. 	
      Initial Exploration Work

	 	 	 	 
		(a) 	
      Upon the Commencement Date, EMC will conduct solely at
      its own expense a program of initial exploration work in connection with
      the Site consisting of, as a minimum:

	 	 	 	 
			(i) 	
      the expenditure of at least A$500,000 plus GST;

	 	 	 	 
			(ii) 	
      investigations to confirm the Scandium resource on the
      Site; and

	 	 	 	 
			(iii) 	
      substantial laboratory test work to optimise the process
      flow sheet for Scandium extraction from the Nyngan laterite using
      innovative technology developed by Jervois, CSIRO and TTS
  Inc

14 

	 		
      (Initial Exploration Works).

	 	 	 
	 		
      The Initial Exploration Works are to be completed within
      180 Business Days of the commencement of the Exploration and Development
      JVA (Initial Exploration Works Period).

	 	 	 
	 	(b) 	
      If EMC does not proceed with or complete the Initial
      Exploration Works as required by clause 4 within the Initial Exploration
      Works Period, the Agreement will terminate and EMC must pay to
    Jervois:

	 	(i) 	
      the difference between the amount actually incurred by
      EMC in connection with the Initial Exploration Works and A$500,000;
    and

	 	 	 
	 	(ii) 	
      interest at the Penalty Interest Rate on that sum
      calculated on a monthly basis from the Commencement to the date on which
      it is paid.

	 	(c) 	
      The amount payable to Jervois in accordance with clause
      4(b) is a debt due to Jervois and payable to Jervois within 40 Business
      Days of the date on which EMC discontinue the Initial Exploration Works or
      the expiry of the Initial Works Exploration Period, whichever occurs
      first.

	 	 	 
	 	(d) 	
      Within 60 Business Days of the completion of the Initial
      Exploration Works or the conclusion of the Initial Works Exploration
      Period (whichever is the earlier):

	 	(i) 	
      EMC will provide a summary report to Jervois within 40
      Business Days of the Initial Exploration Works Period consisting of any
      and all technical and geological information pertaining to the Gilgai
      Resource and including (as a minimum):

	 	(A) 	
      a summary of all activities completed;

	 	 	 
	 	(B) 	
      all engineering studies;

	 	 	 
	 	(C) 	
      technical data and analysis of the technical
  data;

	 	 	 
	 	(D) 	
      exploration outcomes;

	 	 	 
	 	(E) 	
      expenditure summary; and

	 	 	 
	 	(F) 	
      estimates of likely capital expenditure operational
      expenditure.

	 	(ii) 	
      EMC will notify Jervois in writing whether it intends to
      proceed with or withdraw from the Joint Venture (Election
    Date).

	 	(e) 	
      If EMC elects, in accordance with clause 4(d), to proceed
      with the Joint Venture:

	 	(i) 	
      Apart from the Parties' specific obligations under this
      Agreement, EMC and Jervois will with effect from the Election Date equally
      share all obligations and liabilities associated with the Freehold Land,
      Tenements and Information associated with the Site and all the costs
      associated with any authorisations and approvals required for the Joint
      Venture; and

	 	 	 
	 	(ii) 	
      EMC will at its own cost proceed with all works necessary
      to produce the Feasibility Study.

15 

	5. 	
      Feasibility Study

	 	 	 
		(a) 	
      With effect from the Election Date, (should EMC elect to
      proceed) EMC will continue with all exploration and evaluation work
      required to prepare a final Feasibility Study within 240 Business Days of
      the expiry of the Election Date.

	 	 	 
		(b) 	
      EMC will deliver a copy of the Feasibility Study to
      Jervois within 5 Business Days of it being signed in accordance with
      clause 5(a).

	 	 	 
		(c) 	
      If:

	 	(i) 	
      EMC does not deliver the Feasibility Study to Jervois in
      accordance with clause 5(a); or

	 	 	 
	 	(ii) 	
      the Feasibility Study does not conclude that there is a
      commercially minable resource or the project is technically or
      economically viable,

this agreement will terminate. 

	6. 	
      Joint Venture Interest

	 	 
	6.1 	
      Initial Joint Venture Interest of
Parties

	 	 
		
      The Initial Joint Venture Interest of the Parties under
      this Agreement is:

	 	Jervois 	100% 
	 	 	 
	 	EMC 	Nil 

	6.2 	
      EMC Joint Venture Interest

	 	 	 	 
		(a) 	
      If:

	 	 	 	 
			(i) 	
      EMC delivers the Feasibility Study in accordance with
      clause 5(a);

	 	 	 	 
			(ii) 	
      the Feasibility Study concludes there is a commercially
      mineable resource and that the project is technically and economically
      viable;

	 	 	 	 
			(iii) 	
      EMC makes payment to Jervois, within 5 Business Days of
      the delivery of the Feasibility Study, of the sum of AUD$1,300,000.00 plus
      GST as reimbursement for expenses Jervois has incurred in conducting
      preliminary exploration works at the Site; and

	 	 	 	 
			(iv) 	
      EMC has otherwise met all of its obligations under this
      Agreement;

	 	 	 	 
			
      the Parties Joint Venture Interests under this Agreement
      will be:

	 	Jervois 	50% 
	 	 	 
	 	EMC 	50% 

	 	(b) 	
      The date upon which this occurs will be known as the
      Earned Interest Date.

	6.3 	
      No obligation to demonstrate
  expenses

16 

		
      Jervois is not required to satisfy EMC that it has
      incurred expenditures in conducting preliminary exploration works at the
      Site in the amount of AUD$1,300,000.00 or at all.

	 	 	 
	7. 	
      Management Committee

	 	 	 
	7.1 	
      Establishment

	 	 	 
		
      As soon as practicable after the Commencement Date, the
      Joint Venturers must establish and maintain a Management Committee to
      which each Joint Venturer must appoint a representative in
  writing.

	 	 	 
	7.2 	
      General responsibilities

	 	 	 
		(a) 	
      Subject to this Agreement the Management Committee will
      have overall management and control of the Joint Venture.

	 	 	 
		(b) 	
      Without limiting clause 7.2(a), the Management Committee
      is to supervise the Manager in the management of the Joint Venture and to
      make, subject to this Agreement, all strategic decisions relating to the
      conduct of Joint Venture Activities, including the consideration and
      approval of any Proposed Programme and Budget and any amendments to any
      Approved Programme and Budget.

	 	 	 
		(c) 	
      All decisions of the Management Committee which are
      within the power, authority or discretion of the Management Committee or
      are by this Agreement matters to be determined by resolution of the
      Management Committee are binding on the Joint Venturers and the
      Manager.

	 	 	 
	7.3 	
      Membership

	 	 	 
		(a) 	
      The Management Committee will consist of two members (and
      their alternates) appointed by each Joint Venturer. An alternate will
      represent the member and exercise all the powers of the member when the
      member is absent from a meeting.

	 	 	 
		(b) 	
      Each Joint Venturer may remove any member (or the
      alternate) appointed by it and appoint another by giving notice to all the
      Joint Venturers.

	 	 	 
		(c) 	
      Each member has full power and authority to represent and
      bind the Joint Venturer which appointed him or her in all matters decided
      by the Management Committee and the Joint Venturer is bound by all votes
      cast by its representative.

	 	 	 
		(d) 	
      Jervois will designate one of its members as chairman of
      the Committee to chair meetings. For the avoidance of doubt, the chairman
      will not have a casting vote.

	 	 	 
	7.4 	
      Meetings

	 	 	 
		(a) 	
      The Manager must convene a meeting of the Management
      Committee at least every 6 months after the Commencement Date.

	 	 	 
		(b) 	
      The Manager must convene a meeting of the Management
      Committee at the request of any Joint Venturer.

	 	 	 
		(c) 	
      The Manager must give at least 20 Business days notice of
      the meeting to the Joint Venturers.

17 

	 	(d) 	
      At least 10 Business Days prior to each meeting the
      Manager will provide to the Joint Venturers an agenda of the matters to be
      discussed at the meeting. Items may be added to the agenda by any Joint
      Venturer at least 5 Business Days before the meeting. The Manager will
      provide the final agenda to the Joint Venturers at least 2 Business Days
      prior to the meeting.

	 	 	 
	 	(e) 	
      All meetings of the Management Committee must be held in
      Melbourne unless otherwise agreed by the Joint Venturers.

	 	 	 
	 	(f) 	
      Meetings may be convened in person, or by video meeting
      or conference telephone call at which all representatives of the Joint
      Venturers have the opportunity to be present. All persons participating in
      the video meeting or conference telephone call must be able to hear each
      of the others.

	7.5 	
      Quorum

	 	 	 	 
		(a) 	
      The quorum for a meeting of the Management Committee is
      at least one member representing each Joint Venturer.

	 	 	 	 
		(b) 	
      If a quorum is not present within 30 minutes of the time
      appointed for the holding of a meeting, the meeting will be adjourned to
      the same time and place one week afterward and the Manager will notify the
      Joint Venturers of the adjournment.

	 	 	 	 
		(c) 	
      If a quorum is not present within 30 minutes of the time
      appointed for the adjourned meeting, the Joint Venturer present may
      discharge the business of the adjourned meeting.

	 	 	 	 
		(d) 	
      Each member of the Management Committee may be
      accompanied at meetings of the Management Committee by a reasonable number
      of observers and advisers.

	 	 	 	 
	7.6 	
      Voting

	 	 	 	 
		(a) 	
      At any meeting of the Management Committee, a Joint
      Venturer (other than a Defaulting Joint Venturer) may cast, through its
      representative, the number of votes equal to its Joint Venture
      Interest.

	 	 	 	 
		(b) 	
      Subject to clause 7.6(c), all decisions of the Management
      Committee must be determined by majority resolution.

	 	 	 	 
		(c) 	
      The following decisions require unanimous approval by the
      Joint Venturers:

	 	 	 	 
			(i) 	
      the disposal or relinquishment of a Tenement;

	 	 	 	 
			(ii) 	
      the disposal of Joint Venture Property worth in excess of
      $100,000;

	 	 	 	 
			(iii) 	
      the supply by a participant of materials to the Joint
      Venture with value in excess of $100,000; and

	 	 	 	 
			(iv) 	
      removal and replacement of the Manager under clause
      8.2(b).

	 	 	 	 
		(d) 	
      A resolution in writing (which may consist of one or
      several documents in the same terms) signed by at least one representative
      of each of the Joint Venturers or approved by facsimile or by
      authenticated email transmitted by at least one representative of each
      Joint Venturer and subsequently confirmed in writing is
  as viable and effectual as if it had been
passed at a duly convened meeting of the Management Committee.

18 

	7.7 	
      Minutes

	 	 	 
		
      The Manager will cause minutes to be kept of each meeting
      of the Management Committee and will circulate the draft minutes to each
      of the Joint Venturers within 10 Business Days after the holding of the
      meeting. The minutes, as approved at the next meeting of the Management
      Committee, are a correct record of the meeting to which they
  relate.

	 	 	 
	7.8 	
      Costs

	 	 	 
		
      All costs incurred by a Joint Venturer in participating
      in the Management Committee will be borne by that Joint
Venturer.

	 	 	 
	7.9 	
      Sub-committees

	 	 	 
		
      The Management Committee may, from time to time, create
      sub-committees (comprising such persons as the Management Committee thinks
      fit) to consider and report back to the Management Committee on any
      particular issues relating to Joint Venture Activities.

	 	 	 
	8. 	
      Manager

	 	 	 
	8.1 	
      Appointment of Manager

	 	 	 
		
      The Joint Venturers severally appoint EMC to be the
      Manager of the Joint Venture and agent of the Joint Venturers for the
      purposes of this Agreement from the Commencement Date, and EMC accepts
      that appointment, on and subject to the terms of this Agreement.

	 	 	 
	8.2 	
      Term of appointment of Manager

	 	 	 
		
      The appointment of the Manager continues until:

	 	 	 
		(a) 	
      this Agreement is terminated for any reason;

	 	 	 
		(b) 	
      the Manager resigns, having given at least 40 Business
      Days written notice to the Joint Venturers and the Management Committee
      resolves that a new Manager should be appointed; or

	 	 	 
		(c) 	
      the Manager suffers an Insolvency Event or commits a
      material breach or default in the performance of a material obligation
      under this Agreement and fails to remedy that default within 40 Business
      Days of receipt of written notice of default served by a Joint
      Venturer.

	 	 	 
	8.3 	
      Remuneration

	 	 	 
		
      EMC will not be entitled to remuneration or compensation
      of any kind for its role as Manager.

19 

	8.4 	
      Appointment of new Manager

	 	 	 
		(a) 	
      Upon the termination of the appointment of the Manager,
      the Joint Venturers must promptly appoint a new Manager under the terms of
      this Agreement, if this Agreement is not otherwise terminated.

	 	 	 
		(b) 	
      The previous Manager must continue to act as Manager
      until the new Manager is appointed and commences its duties.

	 	 	 
		(c) 	
      Upon the new Manager commencing its duties, the previous
      Manager must immediately deliver to the new Manager all Joint Venture
      Property and all documents, books, records and accounts relating to the
      Joint Venture held by it or under its control.

	 	 	 
	8.5 	
      Liability of Manager

	 	 	 
		(a) 	
      Subject to clause 8.5(b), the Manager is not liable for
      any loss or damage suffered or liability incurred by a Joint Venturer in
      the course of the performance or purported performance of its functions as
      Manager or due to its failure to perform or breach of its functions or
      obligations as Manager, except for any loss or damage arising directly
      from the fraud, Gross Negligence or Wilful Misconduct of the Manager, its
      directors or executive officers or agents.

	 	 	 
		(b) 	
      The limitations on the liability of the Manager under
      clause 8.5(a) do not limit or restrict the liability as a Joint Venturer
      or a Joint Venturer which is also the Manager.

	 	 	 
	8.6 	
      Indemnity to Manager

	 	 	 
		
      Each Joint Venturer, to the extent of its Joint Venture
      Interest, must indemnify and hold harmless the Manager, its directors,
      employees, agents and contractors (Indemnified Persons) from and
      against all damage, loss, expense or liability of any nature suffered or
      incurred by the Indemnified Persons (including any claims made by Third
      Parties) in connection with the Joint Venture Activities, including any
      personal injury, disease, illness or death, or physical loss of or damage
      to property, of the Indemnified Persons or any Third Party, except insofar
      as the same arises by reason of the act or omission of any of those
      Indemnified Persons.

	 	 	 
	9. 	
      Functions, powers and duties of Manager

	 	 	 
	9.1 	
      Functions of the Manager

	 	 	 
		
      The Manager reports to the Management Committee and
      must:

	 	 	 
		(a) 	
      by itself or through its employees, agents or
      contractors, manage, direct and control Joint Venture Activities as agent
      for and on behalf of the Joint Venturers;

	 	 	 
		(b) 	
      exercise and discharge its powers and duties under this
      Agreement in accordance with Approved Programs and Budgets, and decisions
      made by the Management Committee;

	 	 	 
		(c) 	
      conduct Joint Venture Activities in a good, workmanlike
      and commercially reasonable manner in accordance with good Australian
      methods, procedures and practices, and with the standard of diligence and
      care, normally exercised by duly qualified persons in the performance of
      comparable work; and

20 

	 	(d) 	
      act in good faith in all its dealings, as Manager, with
      each Joint Venturer.

	9.2 	
      Powers and duties of the Manager

	 	 	 
		
      In the course of managing, supervising and conducting
      Joint Venture Activities, the Manager is entitled to have access to and
      control of all Joint Venture Property and must, either itself or through
      such Third Parties as it may engage:

	 	 	 
		(a) 	
      (Proposed Programmes and Budgets) prepare and
      submit to the Management Committee for approval all Proposed Programmes
      and Budgets and all other estimates and reports required by this
      Agreement;

	 	 	 
		(b) 	
      (Approved Programmes and Budgets) carry out the
      work required to implement all Approved Programmes and Budgets;

	 	 	 
		(c) 	
      (tenders and contracts) obtain, evaluate and
      accept quotes and tenders (within the limits determined by the Management
      Committee), and enter into, administer and enforce, as agent of the Joint
      Venturers, all contracts required for the performance of works and
      services necessary to perform this Agreement and undertake the Joint
      Venture Activities;

	 	 	 
		(d) 	
      (personnel) engage, dismiss, supervise and control
      all management, technical and labour personnel necessary for performance
      of its obligations under this Agreement including determining the terms
      and conditions of such engagement and conducting all industrial
      relations;

	 	 	 
		(e) 	
      (payment and bank accounts) pay on behalf of the
      Joint Venturers out of the funds provided by the Joint Venturers all costs
      and expenses incurred by the Manager in the conduct of the Joint Venture
      Activities and for such purpose maintain and operate one or more separate
      bank accounts (within which its own funds are not commingled) on behalf of
      the Joint Venturers for the purposes of the Joint Venture;

	 	 	 
		(f) 	
      (Laws and Authorisations) comply with all Laws and
      Authorisations applicable to the conduct of the Joint Venture Activities,
      including those relating to health, safety and environmental protection,
      and ensure that all Authorisations required to conduct the Joint Venture
      activities are applied for, obtained and maintained;

	 	 	 
		(g) 	
      (Tenements) register this Agreement under the
      Mining Act against the Tenements, keep and renew those Tenements in good
      standing (including paying all rents, taxes, expenditures and other
      outgoings by the due date), and manage, administer, protect and enforce
      the rights and obligations of the holders under the Tenements;

	 	 	 
		(h) 	
      (statutory reports) prepare, file and lodge all
      statutory reports as and when required under the Mining Act and any other
      applicable laws in respect of the Tenements (other than reports required
      to be submitted by the Joint Venturers in their individual capacities as
      Joint Venturers);

	 	 	 
		(i) 	
      (rehabilitation) establish a rehabilitation fund,
      formulate a rehabilitation programme and carry out the Rehabilitation
      Obligations;

	 	 	 
		(j) 	
      (native title) act as the Joint Venturers’
      representative in respect of Native Title Rights and Aboriginal heritage
      issues, negotiate and enter into agreements with the parties to Native
      Title Claims and in all other respects deal with issues of
  this kind as and when they arise, provided that the Manager
      may not recognise any Native Title Rights or agree or settle any Native
      Title Claims, without the prior approval of the Management
  Committee;

21 

	 	(k) 	
      (insurances) effect and maintain all insurances
      appropriate in relation to Joint Venture Property and Joint Venture
      Activities, or as required by Law, and any additional insurances which the
      Management Committee requires to be effected, provided that the Manager
      must wherever possible procure that all such insurances include a
      provision that the insurer has no right of subrogation against any Joint
      Venturer or the Manager and that the Joint Venturers and the Manager are
      to be named, to the extent of their interests, on each policy of
      insurance;

	 	 	 
	 	(l) 	
      (insurance certificates) if requested, provide
      full details to a Joint Venturer of all insurances effected by the Manager
      under this Agreement, including certificates of currency;

	 	 	 
	 	(m) 	
      (no Encumbrances) keep the Joint Venture Property
      free and clear of all Encumbrances, except for those existing at the time
      of, or created concurrent with, the acquisition of the Joint Venture
      Property, or liens arising in the ordinary course of business which must
      be released or discharged in a diligent manner, or Encumbrances
      specifically approved by the Management Committee;

	 	 	 
	 	(n) 	
      (disposal of surplus equipment) dispose of by
      sale, assignment, abandonment or other transfer of Joint Venture Property
      which the Manager classifies as surplus and is no longer needed for Joint
      Venture Activities and which the Management Committee approves for
      disposal;

	 	 	 
	 	(o) 	
      (litigation) institute, defend, compromise or
      settle any court or arbitration proceedings or insurance claims affecting
      or relating to Joint Venture Activities or Joint Venture Property,
      provided that the Manager may not institute, compromise, or settle any
      court or arbitration proceedings or insurance claims exceeding an amount
      determined by the Management Committee without the prior approval of the
      Management Committee;

	 	 	 
	 	(p) 	
      (emergencies) take such action as the Manager may
      consider necessary or advisable to prevent or respond to an
    Emergency;

	 	 	 
	 	(q) 	
      (GST) act as the Joint Venturers’ representative
      for the purposes of seeking registration of the Joint Venture as a GST
      joint venture under the GST Act and manage, administer and enforce the
      rights and obligations of the Joint Venturers under such GST joint
      venture; and

	 	 	 
	 	(r) 	
      (other incidental) do all other acts and things
      that are reasonably necessary or desirable to fulfil its functions or are
      incidental to the above powers and duties.

	9.3 	
      Manager’s obligations are subject to provision of
      funds

	 	 
		
      Notwithstanding anything to the contrary elsewhere in
      this Agreement, the performance by the Manager of its obligations under
      this Agreement is subject to the Manager being provided with sufficient
      funds by the Joint Venturers to enable the Manager to perform those
      obligations.

22 

	9.4 	
      Manager may delegate

	 	 	 
		
      The Manager may delegate any of its rights, remedies,
      powers, discretions and obligations to an agent of the Manager, provided
      that:

	 	 	 
		(a) 	
      the Manager may only delegate the whole of its rights,
      remedies, powers, discretions and obligations with the approval of the
      Management Committee;

	 	 	 
		(b) 	
      any delegation does not relieve the Manager of any of its
      obligations or responsibilities under this Agreement; and

	 	 	 
		(c) 	
      it informs the Management Committee at its next meeting
      of the identity of the delegate and the matter which has been
      delegated.

	9.5 	
      Agreement with Related Body Corporate

	 	 
		
      The Manager may not enter into an agreement with a
      Related Body Corporate of the Manager for the supply of goods or services
      or both under this Agreement unless the proposed agreement is on terms and
      conditions which are no less favourable to the Joint Venturers than an
      arm’s length commercial agreement with a Third Party supplier which is not
      a Related Body Corporate of the Manager, and the proposed agreement is
      approved by the Management Committee.

	 	 
	9.6 	
      Litigation

	 	 
		
      A Joint Venturer has the right to participate, at its own
      expense, in litigation or administrative proceedings initiated by the
      Manager on behalf of the Joint Venturers.

	10. 	
      Decision to Mine

	 	 	 	 
		(a) 	
      Once the Feasibility Study is obtained, the Management
      Committee will meet and determine whether to:

	 	 	 	 
			(i) 	
      make the Decision to Mine;

	 	 	 	 
			(ii) 	
      continue exploration activities on the Site; or

	 	 	 	 
			(iii) 	
      discontinue operations and terminate this Agreement in
      accordance with clause 17.1.

	11. 	
      Mining JV

	 	 
		
      On the Mining JV Commencement
Date:

	 	(a) 	
      the parties will enter into the Mining JVA;

	 	 	 	 
	 	(b) 	
      the Mining JVA will include a provision:

	 	 	 	 
	 		(i) 	
      requiring EMC to pay to Jervois a royalty of AUD$2.00 per
      tonne of Scandium ore mined;

	 	 	 	 
	 		(ii) 	
      acknowledge that EMC may redeem that royalty obligation
      by payment to Jervois of an amount of AUD$2,000,000.00 less any amounts
      paid under that royalty obligation to the date of
payment at any time whilst the royalty is payable. 

23 

	12. 	
      Contribution to Joint Venture Costs

	 	 	 
	12.1 	
      Ongoing contributions

	 	 	 
		
      In addition to payments expressly set out in this
      Agreement, on and from the Earned Interest Date, each Joint Venturer must
      contribute to all Joint Venture Costs in proportion to its Joint Venture
      Interest on each date on which a contribution is due to be made under
      clause 12.2.

	 	 	 
	12.2 	
      Cash Calls

	 	 	 
		(a) 	
      All contributions made by a Joint Venturer after the
      Earned Interest Commencement Date must be made by that Joint Venturer
      paying to the Manager, within 10 Business Days after receipt of a Cash
      Call, the amount stated in the Cash Call as due for payment by that Joint
      Venturer. Payment of a Cash Call will not affect the right of a Joint
      Venturer to seek a correction of any error made by the Manager.

	 	 	 
		(b) 	
      The Manager must issue Cash Calls for contributions by
      the Joint Venturers whenever the Manager sees fit but not more frequently
      than once per calendar month and not so as to require payment more than 10
      Business Days in advance of the calendar month in which the Manager
      anticipates that the Joint Venture Costs to which it relates will become
      payable.

	 	 	 
		(c) 	
      Each Cash Call must set out in reasonable detail the
      items in the Approved Programme and Budget to which a contribution towards
      Joint Venture Costs is required.

	 	 	 
	13. 	
      Programmes and Budgets

	 	 	 
	13.1 	
      Proposed Programme and Budget

	 	 	 
		(a) 	
      By no later than 15 June in each Year or such other dates
      as the Management Committee may agree, the Manager must provide the Joint
      Venturers with a Proposed Programme and Budget which must include details
      of the programme of Joint Venture Activities proposed for the next Year
      and an itemised budget specifying all estimated Joint Venture Costs
      proposed to be charged by the Manager on a monthly basis under this
      Agreement.

	 	 	 
		(b) 	
      Each Proposed Programme and Budget must include
      expenditure on the Tenements sufficient to comply with minimum expenditure
      obligations under the Mining Act during that period.

	 	 	 
	13.2 	
      Approved Programme and Budget

	 	 	 
		(a) 	
      Not less than 7 days after provision of a Proposed
      Programme and Budget, and by no later than the end of June in each Year or
      such other month as the Management Committee may determine, the Management
      Committee must meet and discuss the Proposed Programme and Budget for the
      next Year and adopt, with or without amendment, an Approved Programme and
      Budget for that Year.

24 

	 	(b) 	
      Once approved, the Manager must implement the Approved
      Programme and Budget, and give a copy to each Joint Venturer.

	 	 	 
	 	(c) 	
      An Approved Programme and Budget may be amended by the
      Manager with the approval of the Management
Committee.

	13.3 	
      Expenditure not covered by Programme and
    Budget

	 	 	 
		(a) 	
      The Manager may not exceed an Approved Programme and
      Budget by more than 10% without the approval of the Management Committee
      except in cases of Emergency.

	 	 	 
		(b) 	
      The Manager must advise the Management Committee as soon
      as it becomes aware of any likely or actual budget overruns.

	 	 	 
	14. 	
      Accounts, reports, audit and access

	 	 	 
	14.1 	
      Joint Venture accounting

	 	 	 
		
      The Manager must maintain separate books, accounts and
      records for the Joint Venture of Joint Venture Costs in accordance with
      the Accounting Standards.

	 	 	 
	14.2 	
      Reports to Joint Venturers

	 	 	 
		
      The Manager must keep the Joint Venturers informed of all
      Joint Venture Activities by submitting in writing to the Joint
      Venturers:

	 	 	 
		(a) 	
      within one month of the end of each quarter, quarterly
      progress reports which include a statement of Joint Venture Costs and
      comparisons of such expenditures to the Approved Budget, including
      quarterly summaries of data acquired;

	 	 	 
		(b) 	
      within one month of the end of each Year, a detailed
      final report after completion of each Approved Programme and Budget, which
      must include comparisons between actual and budgeted Joint Venture
      Costs;

	 	 	 
		(c) 	
      as soon as possible thereafter, a report on the happening
      of any event or occurrence which the Manager considers is likely to
      materially affect the interest of all or any of the Joint Venturers, or
      the value or worth of any of the Tenements, or that would be required to
      be disclosed to the market by a Joint Venturer (or a Related Body
      Corporate of a Joint Venturer) pursuant to the Listing Rules;

	 	 	 
		(d) 	
      within one month in each case of its completion, a copy
      of any material report concerning Joint Venture Activities produced by the
      Manager; and

	 	 	 
		(e) 	
      such other reports as the Management Committee may
      direct.

	 	 	 
	14.3 	
      Joint Venture accounts and audit

	 	 	 
		(a) 	
      The Manager must prepare the accounts for the Joint
      Venture reflecting the results for each Year of all transactions connected
      with the Joint Venture Activities (Joint Venture Accounts) which
      must be completed, audited by the Auditor and provided to the Joint
      Venturers no later than 3 months after the end of each Year.

	 	 	 
		(b) 	
      Any Joint Venturer which requires any particular audit
      requirements to be satisfied by the Auditor may make known to the Manager
      in writing its additional particular requirements before the audit is completed. The Manager
      must provide the particular audit requirements to the Auditor forthwith
      and the additional cost of conducting any additional audit must be paid by
  that Joint Venturer.

25 

	 	(c) 	
      The Manager must rectify any issues or qualifications
      raised by the Auditor concerning the Joint Venture Accounts or Joint
      Venture Activities as soon as is reasonably
practicable.

	14.4 	
      Individual Joint Venturer
  responsibilities

	 	 	 	 
		(a) 	
      Each Joint Venturer is responsible, in respect of its
      Joint Venture Interest, for all financial and accounting records required
      by Law or to support its income tax returns or any other accounting
      reports required by any Authority.

	 	 	 	 
		(b) 	
      The Manager must provide to each Joint Venturer such
      Joint Venture information prepared by the Manager in accordance with this
      Agreement, as the Joint Venturer may reasonably require to prepare its
      financial and accounting records.

	 	 	 	 
	14.5 	
      Joint Venturer access

	 	 	 	 
		
      A Joint Venturer is entitled, during working hours at
      reasonable intervals, and the Manager must give, on reasonable notice at
      the Joint Venturer’s expense and risk, access to, and the right to inspect
      any Joint Venture Property, provided that the Joint Venturer ensures that
      there is no interference with Joint Venture Activities.

	 	 	 	 
	15. 	
      Withdrawal and Dilution

	 	 	 	 
	15.1 	
      Required payments

	 	 	 	 
		
      EMC must pay all unpaid amounts of each of the payments
      which are set out in clause 2.1(b) and 4(a) together with any other
      amounts due and payable under this Agreement within 5 Business Days of its
      withdrawal or other termination of this Agreement.

	 	 	 	 
	15.2 	
      Withdrawal prior to Mining JV Commencement
    Date

	 	 	 	 
		
      Subject to clause 15.1, EMC may, upon 20 Business Days
      written notice, withdraw from the Joint Venture after completion of the
      Initial Exploration Works or, after the Earned Interest Date, at any time
      before the Mining JV Commencement Date.

	 	 	 	 
	15.3 	
      Other obligations

	 	 	 	 
		
      Any withdrawal from the Joint Venture is without
      prejudice to any rights or obligations of the Joint Venturers arising
      prior to the withdrawal, and any forfeiture of a Joint Venture Interest is
      not to be take as satisfaction, wholly or partly, of the obligations of
      the withdrawing Joint Venturer prior to withdrawal.

	 	 	 	 
	15.4 	
      Unpaid cash calls

	 	 	 	 
		(a) 	
      If a party (Defaulting Joint Venturer) fails to
      pay when due any Cash Call (Unpaid Cash Call Event) and the
      Defaulting Joint Venturer fails to remedy or compensate for the Unpaid
      Cash Call Event in accordance with this Agreement, then the non-Defaulting
      Joint Venturer may elect either:

	 	 	 	 
			(i) 	
      to dilute the Joint Venture Interest of the Defaulting
      Joint Venturer in accordance with the dilution formula set out in clause
      15.5; or

26 

	 	(ii) 	
      to acquire the whole of the Defaulting Joint Venturer's
      Joint Venture Interest.

	 	(b) 	
      Within 30 days following an Unpaid Cash Call Event, the
      non-Defaulting Joint Venturer must give notice to the Defaulting Joint
      Venturer informing it whether the non-Defaulting Joint Venturer wishes
      either to acquire the Defaulting Joint Venturer's Joint Venture Interest
      or to dilute the Joint Venture Interest of the Defaulting Joint
      Venturer.

	 	 	 	 	 
	 	(c) 	
      If the non-Defaulting Joint Venturer elects to acquire
      the whole of the Defaulting Joint Venturer's Joint Venture Interest,
      then:

	 	 	 	 	 
	 		(i) 	
      if a Feasibility Study has not been completed, no cash
      consideration is payable by the non-Defaulting Joint Venturers to the
      Defaulting Joint Venturer and in lieu of cash consideration for the
      transfer of the Joint Venture Interest, the non-Defaulting Joint Venturer
      must (to the extent of the Defaulting Joint Venturer's Joint Venture
      Interest acquired):

	 	 	 	 	 
	 			(A) 	
      cure any Default Event of the Defaulting Joint Venturer
      which is capable of being cured; and

	 	 	 	 	 
	 			(B) 	
      assume all future obligations and liabilities in respect
      of the Defaulting Joint Venturer’s Joint Venture Interest.

	 	 	 	 	 
	 		(ii) 	
      if the Feasibility Study has been completed, the
      consideration payable by the non-Defaulting Joint Venturer to the
      Defaulting Joint Venturer is the market value of the Interest being
      acquired by that non-Defaulting Joint Venturer as at the date of the
      Unpaid Cash Call Event, less 10% and all amounts due from the Defaulting
      Joint Venturer to the non-Defaulting Joint Venturer or the Manager on its
      behalf under this Agreement, such market value and date being determined
      by an Expert appointed under clause 19.3 of this Agreement, who must make
      such determination within 30 days of his or her appointment;

	 	 	 	 	 
	 		(iii) 	
      the Defaulting Joint Venturer must, within 30 days of
      receipt of the notice of acquisition, execute and deliver all deeds and
      documents necessary for, and complete, the assignment of its Joint Venture
      Interest to the non- Defaulting Joint Venturer;

	 	 	 	 	 
	 		(iv) 	
      the Defaulting Joint Venturer must pay all stamp duty and
      other transfer costs which become payable upon the non-Defaulting Joint
      Venturers acquiring its Joint Venture Interest; and

	 	 	 	 	 
	 		(v) 	
      upon completion of the assignment of its Joint Venture
      Interest to the non- Defaulting Joint Venturers, including the payment of
      all transfer costs, the Defaulting Joint Venturer is released from its
      obligations under this Agreement arising after the assignment, other than
      the obligations of confidentiality set out in this Agreement.

	 	 	 	 	 
	 	(d) 	
      The Joint Venturers acknowledge that the consideration
      for the acquisition by a non-Defaulting Joint Venturer of a Defaulting
      Joint Venturer’s Joint Venture Interest (including the assumption of all
      future obligations and liabilities):

27 

	 	(i) 	
      is agreed following negotiations involving all Joint
      Venturers which accepted that the consideration does not constitute or
      give rise to a penalty, forfeiture or unjust enrichment; and

	 	 	 
	 	(ii) 	
      represents a reasonable and good faith assessment of the
      just and fair compensation for the Defaulting Joint Venturer in all the
      circumstances surrounding the Default Event.

	 	(e) 	
      The Defaulting Joint Venturer irrevocably appoints each
      non-Defaulting Joint Venturer severally as its lawful attorney to act for
      it in its name or otherwise as the Manager (acting reasonably) deems fit
      for the purposes of doing all such acts and executing all such documents
      as may reasonably appear to the non-Defaulting Joint Venturers to be
      necessary or desirable to comply with the obligations of the Defaulting
      Joint Venturer under this Agreement. The Defaulting Joint Venturer is
      bound by all acts of the non-Defaulting Joint Venturers as attorney
      pursuant to this clause.

	 	 	 
	 	(f) 	
      Nothing in this Agreement prevents a non-Defaulting Joint
      Venturer from pursuing any other rights or remedies available to it either
      at law or in equity against the Defaulting Joint
  Venturer.

	15.5 	
      Dilution

	 	 	 
		(a) 	
      Within 7 days of the adoption by the Management Committee
      of an Approved Programme and Budget a Joint Venturer may give notice to
      the other Joint Venturers that it does not wish to contribute to Joint
      Venture Activities pursuant to the Approved Programme and Budget
      (Dilution Notice) whereupon it becomes a Diluting Joint Venturer
      for the purposes and duration of that Approved Programme and
      Budget.

	 	 	 
		(b) 	
      Upon a Dilution Notice being given, the Diluting Joint
      Venturer is not obliged or entitled to make any further contribution to
      that Approved Programme and Budget and its Joint Venture Interest is
      reduced in accordance with the following formula (with the Joint Venturer
      Interest of the other Joint Venturers, not being a Joint Venturer which is
      itself diluting, increasing pro-rata in proportion to their respective
      Joint Venture Interests):

JVI = DE x 100 %

               
TE 

	 	Where: 	  	  
	 	  	  	  
	 	JVI 	= 	
      the ongoing Joint Venture Interest of the Diluting Joint
      Venturer after the Dilution Notice; 

	 	  	  	
      

	 	DE 	= 	
      the total Joint Venture Expenditure actually incurred
      plus Expenditure deemed to have been incurred by the Diluting Joint
      Venturer up to the date of the Dilution Notice; and 

	 	  	  	
      

	 	TE 	= 	
      the total Joint Venture Expenditure actually incurred
      plus Expenditure deemed to have been incurred by all Joint Venturers up to
      the date of the Dilution Notice. 

28 

For the purpose of the calculation of
DE and TE, the Joint Venturers are each deemed to have incurred Joint Venture
Expenditure equal to the actual Development Costs contributed by EMC up to the
Earned Interest Date. 

	15.6 	
      Additional Called Sums

	 	 	 	 
		(a) 	
      Within 7 days of receiving a Dilution Notice, the Manager
      must make additional Cash Calls to the Joint Venturers in proportion to
      their respective Joint Venture Interests (other than the Diluting Joint
      Venturer) to replace the contributions not being made by the Diluting
      Joint Venturer.

	 	 	 	 
		(b) 	
      Within 14 days of receiving a further Cash Call a Joint
      Venturer (Other than a Diluting Joint Venturer) may elect:

	 	 	 	 
			(i) 	
      to proceed with the Approved Programme and Budget and pay
      the additional Cash Call; or

	 	 	 	 
			(ii) 	
      not to contribute to the Approved Programme and Budget
      and give a Dilution Notice.

	 	 	 	 
	15.7 	
      Re-assessment of Programme and Budget

	 	 	 	 
		
      If a further Dilution Notice is given by another Joint
      Venturer, the Manager must, within 14 days of further Dilution Notice
      being given, call a meeting of the Management Committee to revise the
      Approved Programme and Budget. A Diluting Joint Venturer is entitled to
      vote at such meeting or any adjournment.

	 	 	 	 
	15.8 	
      Transfer of Joint venture Interest

	 	 	 	 
		
      On request by a Joint Venturer, the Diluting Joint
      Venturer must, at its cost and expense, transfer to the other Joint
      Venturers sufficient numbers of shares in the Tenements so that their
      respective Joint Venture Interests correspond with the registered shares
      in the Tenements after giving effect to the Dilution Notice.

	 	 	 	 
	15.9 	
      Withdrawal of Dilution Notice

	 	 	 	 
		
      Upon an Approved Programme and Budget being revised or
      confirmed at a meeting of the Management Committee, a Diluting Joint
      Venturer may within 14 days of that meeting give notice to the Manager and
      the other Joint Venturers withdrawing any prior Dilution Notice and thus
      electing to make the relevant contribution.

	 	 	 	 
	15.10 	
      Minimum Joint Venture Interest and
  Royalty

	 	 	 	 
		(a) 	
      If the Joint Venture Interest of a Joint Venturer reduces
      to below 10% at any time, that Joint Venturer is deemed to have sold to
      the other Joint Venturers the whole of its Joint Venture Interest in
      return for a royalty of 2% of gross proceeds from the Site (New
      Royalty).

	 	 	 	 
		(b) 	
      In that event the Joint Venturers will execute the New
      Royalty Deed.

	 	 	 	 
		(c) 	
      The Parties acknowledge that the New Royalty, if payable
      to Jervois, will be in addition to any amount payable to Jervois pursuant
      to clause 11(b)(i) of this Agreement.

29 

	16. 	
      Default

	 	 	 	 
	16.1 	
      Default Events

	 	 	 	 
		
      Each of the following is a Default Event:

	 	 	 	 
		(a) 	
      a material breach by a Joint Venturer of any of its
      material obligations under this Agreement;

	 	 	 	 
		(b) 	
      an Insolvency Event occurring in relation to a Joint
      Venturer,

	 	 	 	 
			
      (each a Breach Default Event)

	 	 	 	 
		(c) 	
      monies which are due under this Agreement (Unpaid
      Monies) are not paid when due (Unpaid Monies Default
    Event).

	 	 	 	 
	16.2 	
      Breach Default Events to be remedied

	 	 	 	 
		(a) 	
      The Manager or a non-defaulting Joint Venturer may, at
      any time after a Breach Default Event occurs, serve a written notice on
      the Defaulting Joint Venturer specifying the nature of the Breach Default
      Event. The Defaulting Joint Venturer must then:

	 	 	 	 
			(i) 	
      remedy the default within 10 Business Days of receipt of
      the notice of default; or

	 	 	 	 
			(ii) 	
      pay adequate monetary compensation to the non-defaulting
      Joint Venturer if the default is incapable of being remedied, such payment
      to be made within 5 Business Days of receipt of the notification of the
      amount of compensation payable, as determined under this
  Agreement.

	 	 	 	 
		(b) 	
      The Joint Venturers must agree in writing the amount of
      adequate monetary compensation to be paid by the Defaulting Joint Venturer
      under clause 16.2(a)(ii). If the Joint Venturers have not reached
      agreement within 10 Business Days after the date on which notice is given,
      the matter must be referred to the dispute resolution process under clause
      19.

	 	 	 	 
	16.3 	
      Unpaid Monies Default Event

	 	 	 	 
		(a) 	
      If an Unpaid Monies Default Event occurs, the Manager
      must promptly give to the Defaulting Joint Venturer a notice to remedy the
      default within 5 Business Days (Non-Payment Notice).

	 	 	 	 
		(b) 	
      The Defaulting Joint Venturer must pay interest on Unpaid
      Monies at Penalty Interest Rate.

	 	 	 	 
		(c) 	
      A Joint Venturer remains a Defaulting Joint Venturer
      until such time as the outstanding moneys, including any interest payable,
      are paid in full.

	 	 	 	 
		(d) 	
      If the Defaulting Joint Venturer fails to comply with the
      Non-Payment Notice, the matter must be referred to the dispute resolution
      process under clause 19.

	 	 	 	 
	16.4 	
      Proceedings against Defaulting Joint
    Venturer

30 

	 	(a) 	
      The Manager or a non-defaulting Joint Venturer may
      institute proceedings against a Defaulting Joint Venturer to enforce
      performance of any of the provisions of this Agreement.

	 	 	 
	 	(b) 	
      The Defaulting Joint Venturer must pay on demand all
      solicitors fees, court costs, and other costs reasonably incurred by the
      party taking action to enforce the provisions of this
  Agreement.

	17. 	
      Term and termination

	 	 	 	 
	17.1 	
      Term of Agreement

	 	 	 	 
		
      This Agreement commences on the Commencement Date and
      continues until the earliest to occur of any of the following:

	 	 	 	 
		(a) 	
      the Joint Venturers make a determination under clause
      10(a)(iii);

	 	 	 	 
		(b) 	
      the non-defaulting Joint Venturers (for themselves and as
      attorney for the Defaulting Join Venturer) agree in writing to terminate
      the Joint Venture;

	 	 	 	 
		(c) 	
      a Decision to mine is not made within 480 Business Days
      of the Earned Interest Date,

	 	 	 	 
		
      (Termination Events)

	 	 	 	 
		
      and will thereafter terminate upon completion of the
      winding-up of the Joint Venture.

	 	 	 	 
	17.2 	
      Winding up of Joint Venture Activities

	 	 	 	 
		(a) 	
      Immediately following the occurrence of a Termination
      Event, the Manager must commence winding up the Joint Venture Activities,
      including:

	 	 	 	 
			(i) 	
      arranging for an evaluation of the Shutdown Costs as at
      the date of the termination of the Joint Venture, including the costs of
      satisfying the Rehabilitation Obligations;

	 	 	 	 
			(ii) 	
      taking such steps to dispose of Joint Venture Property
      (excluding the Site and the Tenements) as it is directed to take by the
      Management Committee;

	 	 	 	 
			(iii) 	
      after paying the Shutdown Costs, distributing any net
      amount remaining among the Joint Venturers in proportion to their
      respective Joint Venture Interests;

	 	 	 	 
			(iv) 	
      making a Called Sum on each Joint Venturer to the extent
      that there are insufficient funds to satisfy the Shutdown Costs.

	 	 	 	 
		(b) 	
      If a Joint Venturer fails to pay any Called Sum to meet
      the Shutdown Costs, the non-defaulting Joint Venturer is obliged to
      contribute any amount unpaid by the Defaulting Joint Venturer and the
      Defaulting Joint Venturer is liable to repay all amounts paid by the
      non-defaulting Joint Venturer together with interest payable under this
      Agreement.

31 

	17.3 	
      Upon Termination of this Agreement

	 	 	 
		(a) 	
      EMC will transfer to Jervois all of its interest in the
      Joint Venture Property except for any interest to which EMC may be
      entitled pursuant to paragraph 17.3(b);

	 	 	 
		(b) 	
      EMC will be entitled to retain a 10% interest in the
      Tenements for each amount of AUD$1,000,000 which it has expended in
      satisfaction of its obligation to contribute to Joint Venture Costs up to
      but not exceeding an interest of 50% in total (EMC's Retained
      Interest)

	 	 	 
		(c) 	
      for the sake of clarity amounts paid by EMC to Jervois
      pursuant to this Agreement will not be taken into account in calculation
      of EMC's Retained Interest.

	 	 	 
	17.4 	
      Continuing obligations

	 	 	 
		
      Despite any other provision of this Agreement, clauses
      17.3, 18 (Confidentiality) and 22 (General) survive termination of this
      Agreement, however arising.

	 	 	 
	17.5 	
      Extension of term

	 	 	 
		
      The Joint Venturers may, at any time, consult with each
      other for the purpose of determining whether the term of this Agreement
      should extend beyond the period it would otherwise expire.

	 	 	 
	18. 	
      Confidentiality

	 	 	 
	18.1 	
      Obligations of confidentiality

	 	 	 
		
      Subject to clauses 18.2 and 18.3, the Receiving Party
      must:

	 	 	 
		(a) 	
      keep the Confidential Information confidential and not
      directly or indirectly disclose, divulge or communicate any Confidential
      Information to, or otherwise place any Confidential Information at the
      disposal of, any other person without the prior written approval of the
      Disclosing Party;

	 	 	 
		(b) 	
      take all reasonable steps to secure and keep secure all
      Confidential Information coming into its possession or control;

	 	 	 
		(c) 	
      only use the Confidential Information for the purposes of
      performing, and to the extent necessary to perform, its obligations under
      this Agreement;

	 	 	 
		(d) 	
      not memorise, modify, reverse engineer or make copies,
      notes or records of the Confidential Information for any purpose other
      than in connection with the performance by the Receiving Party of its
      obligations under this Agreement; and

	 	 	 
		(e) 	
      take all reasonable steps to ensure that any person to
      whom the Receiving Party is permitted to disclose Confidential Information
      under clause 18.3 complies at all times with the terms of this clause 18
      as if that person were a Receiving Party.

	 	 	 
	18.2 	
      Exceptions

	 	 	 
		
      The obligations of confidentiality under clause 18.1 do
      not apply to:

	 	 	 
		(a) 	
      any Confidential Information
that:

32 

	 	(i) 	
      is disclosed to the Receiving Party by a Third Party
      entitled to do so, whether before or after the date of this
    Agreement;

	 	 	 
	 	(ii) 	
      was already lawfully in the Receiving Party's possession
      when it was given to the Receiving Party and was not otherwise acquired
      from the Disclosing Party directly or indirectly; or

	 	 	 
	 	(iii) 	
      is generally available to the public at the date of this
      Agreement or subsequently becomes so available other than by reason of a
      breach of this Agreement; or

	 	(b) 	
      any disclosure of Confidential Information by the
      Receiving Party that is necessary to comply with any court order, law, or
      the applicable rules of any financial market (as defined in the
      Corporations Act) if, to the extent practicable and as soon as reasonably
      possible, the Receiving Party:

	 	 	 	 
	 		(i) 	
      notifies the Disclosing Party of the proposed
      disclosure;

	 	 	 	 
	 		(ii) 	
      consults with the Disclosing Party as to its content;
      and

	 	 	 	 
	 		(iii) 	
      uses reasonable endeavours to comply with any reasonable
      request by the Disclosing Party concerning the proposed
  disclosure.

	18.3 	
      Authorised disclosure

	 	 
		
      A Receiving Party may disclose Confidential Information
      to any Related Entity, employee, agent, contractor, officer, professional
      adviser, banker, auditor or other consultant of the Receiving Party (each
      a Recipient) only if the disclosure is made to the Recipient
      strictly on a “need to know basis” and, prior to the
  disclosure:

	 	(a) 	
      the Receiving Party notifies the Recipient of the
      confidential nature of the Confidential Information to be
  disclosed;

	 	 	 
	 	(b) 	
      the Recipient undertakes to the Receiving Party (for the
      benefit of the Disclosing Party) to be bound by the obligations in this
      clause 18 as if the Recipient were a Receiving Party in relation to the
      Confidential Information to be disclosed to the Recipient; and

	 	 	 
	 	(c) 	
      if requested to do so by the Disclosing Party, the
      Recipient signs an undertaking or deed in a form acceptable to the
      Disclosing Party (and for the benefit of the Disclosing Party) agreeing to
      be bound by the obligations in this clause 18 as if it were a Receiving
      Party in relation to the Confidential Information to be disclosed to the
      Recipient.

	18.4 	
      Return or destruction of confidential
      information

	 	 
		
      Immediately on the written request of the Disclosing
      Party or on the termination of this Agreement for any reason, a Receiving
      Party must:

	 	(a) 	
      cease the use of all Confidential Information of or
      relating to the Disclosing Party (or any Related Entity of the Disclosing
      Party);

	 	 	 
	 	(b) 	
      deliver to the Disclosing Party all documents and other
      materials in its possession or control containing, recording or
      constituting that Confidential Information or,
at the option of the Disclosing Party, destroy, and certify
      to the Disclosing Party that it has destroyed, those documents and
  materials; and

33 

	 	(c) 	
      for Confidential Information stored electronically,
      permanently delete that Confidential Information from all electronic media
      on which it is stored, so that it cannot be
restored.

	18.5 	
      Warranties

	 	 	 
		
      The Disclosing Party warrants to the Receiving Party
      that:

	 	 	 
		(a) 	
      it has the right to disclose Confidential Information to
      the Receiving Party and to authorise the Receiving Party to use the
      Confidential Information as permitted by this Agreement; and

	 	 	 
		(b) 	
      the use of the Confidential Information as permitted by
      this Agreement does not breach the intellectual property rights of any
      other person.

	 	 	 
	18.6 	
      Liability for breach by recipient

	 	 	 
		
      The Receiving Party is liable for any breach of this
      clause 18 by a Recipient as if the Recipient were a Receiving Party in
      relation to the Confidential Information disclosed to the
  Recipient.

	 	 	 
	18.7 	
      Indemnity from receiving party

	 	 	 
		
      The Receiving Party indemnifies and must keep indemnified
      the Disclosing Party against all actions, claims, proceedings, demands,
      liabilities, losses, damages, expenses and costs (including legal costs on
      a full indemnity basis) that may be brought against the Disclosing Party
      or which the Disclosing Party may pay, sustain or incur as a direct or
      indirect result of:

	 	 	 
		(a) 	
      any breach by the Receiving Party or a Recipient of this
      clause 18; or

	 	 	 
		(b) 	
      any breach of confidence by a Recipient in circumstances
      where the Receiving Party has breached this clause 18.

	 	 	 
	18.8 	
      Joint News Release

	 	 	 
		(a) 	
      the Parties may agree to issue joint news releases
      relating to Joint Venture Activities (Joint News
Release);

	 	 	 
		(b) 	
      in the event a Party prepares a Joint News Release draft
      it will provide the draft to the other Party and afford the other Party a
      reasonable opportunity to approve the draft;

	 	 	 
		(c) 	
      a party will be deemed to have approved a draft if that
      Party does not respond to the request within 5 Business Days of receipt of
      the draft.

	 	 	 
	18.9 	
      Survival of clause

	 	 	 
		
      Despite any other provision of this Agreement, this
      clause 18 survives the expiry or termination of this Agreement.

	 	 	 
	19. 	
      Dispute resolution

34 

	19.1 	
      Delivering a dispute notice

	 	 	 
		
      If any dispute arises between the parties relating to or
      arising out of this Agreement, including its construction, effect, the
      rights and obligations of the parties, the performance, breach, rescission
      or termination of this Agreement, the entitlement of any party to damages
      or compensation (whether for breach of contract, tort or any other cause
      of action) or the amount of that entitlement (Dispute), the party
      claiming that a Dispute has arisen must deliver to the other party a
      notice containing particulars of the Dispute (Dispute
    Notice).

	 	 	 
	19.2 	
      Parties must negotiate

	 	 	 
		
      During the period of 10 Business Days after delivery of
      the Dispute Notice, or any longer period agreed in writing by the parties
      (Initial Period), each of the parties must use its reasonable
      endeavours and act in good faith to resolve the Dispute by discussion and
      negotiation.

	 	 	 
	19.3 	
      Referral to Third Party

	 	 	 
		
      If the parties have been unable to resolve the Dispute
      within the period stated in clause 19.2, then the parties must refer the
      Dispute to an Expert for determination. For the purposes of this clause,
      the Expert is a person:

	 	 	 
		(a) 	
      having appropriate qualifications and experience relevant
      to determining the Dispute;

	 	 	 
		(b) 	
      who is agreed by the parties or, failing agreement within
      5 Business Days, is nominated at the request of any party by the President
      (or his nominee) of the Australasian Institute of Mining and Metallurgy;
      and

	 	 	 
		(c) 	
      who does not act, or whose firm does not act, generally
      for any party.

	 	 	 
	19.4 	
      Determination by expert

	 	 	 
		
      If an Expert is appointed under clause 19.3, the
      Expert:

	 	 	 
		(a) 	
      will act as an expert and not as an arbitrator;

	 	 	 
		(b) 	
      may determine the time, place and procedures (which will
      be as informal as is consistent with the proper conduct of the matter) for
      the determination by the Expert, having regard to the nature of the
      Dispute and the provisions of this Agreement;

	 	 	 
		(c) 	
      may communicate privately with the parties or with their
      lawyers;

	 	 	 
		(d) 	
      may or may not allow the appearance of lawyers on behalf
      of the parties;

	 	 	 
		(e) 	
      may accept written submissions from a party in relation
      to the Dispute, provided a copy of the submission is also given to all
      other parties;

	 	 	 
		(f) 	
      may co-opt other expert assistance;

	 	 	 
		(g) 	
      must have regard to the fairness and reasonableness of
      any matters pertaining to the Dispute; and

35 

	 	(h) 	
      must deal with any matter as expeditiously as possible
      and by no later than 20 Business Days after referral to the
  Expert.

	19.5 	
      Obligations of parties

	 	 	 
		
      If an Expert is appointed under clause 19.3:

	 	 	 
		(a) 	
      the Expert's determination will be final and binding on
      the parties;

	 	 	 
		(b) 	
      the parties must attend the sessions with the Expert and
      make a determined and genuine effort to resolve the Dispute as soon as
      reasonably possible;

	 	 	 
		(c) 	
      without limiting clause 19.5(b), the parties must use
      their best endeavours to make available to the Expert all information
      relevant to the Dispute and which the Expert reasonably requires in order
      to resolve the Dispute;

	 	 	 
		(d) 	
      everything that occurs before the Expert must be in
      confidence and in closed session;

	 	 	 
		(e) 	
      any information or documents disclosed by a party under
      this clause 19 must be kept confidential and cannot be used (and cannot be
      called into evidence in any subsequent litigation by any party) except to
      attempt to resolve the Dispute in circumstances where the parties have
      consented to such disclosure;

	 	 	 
		(f) 	
      all discussions must be without prejudice;

	 	 	 
		(g) 	
      each party must pay its own costs of complying with this
      clause 19 and the costs of the Expert and any other costs of complying
      with this clause 19 must be shared equally by the parties; and

	 	 	 
		(h) 	
      the parties must continue performing their obligations
      under this Agreement while the Dispute is being resolved.

	 	 	 
	19.6 	
      Other proceedings

	 	 	 
		
      A party may not commence court proceedings in respect of
      a Dispute unless it has complied with this clause 19 and until the
      procedures in this clause 19 have been followed in full, except
    where:

	 	 	 
		(a) 	
      the party seeks injunctive relief in relation to a
      Dispute from an appropriate court where failure to obtain such relief
      would cause irreparable damage to the party concerned; or

	 	 	 
		(b) 	
      following those procedures would mean that a limitation
      period for a cause of action relevant to the issues in dispute will
      expire.

	 	 	 
	20. 	
      Force majeure

	 	 	 
	20.1 	
      Giving of notice

	 	 	 
		
      If a Force Majeure Event occurs, the Party affected
      (Affected Party) must as soon as practicable give the other party
      written notice of that fact including:

	 	 	 
		(a) 	
      full particulars of the Force Majeure Event, including
      any supporting evidence that is reasonably
available;

36 

	 	(b) 	
      details of the obligations affected (Affected
      Obligations) and the extent of the effect of the Force Majeure Event
      on those obligations;

	 	 	 
	 	(c) 	
      an estimate of the period for which the Affected Party is
      likely to be prevented from, or delayed in, performing the Affected
      Obligations; and

	 	 	 
	 	(d) 	
      the steps taken, and to be taken, by or on behalf of the
      Affected Party to minimise any delay, loss or damage caused by the Force
      Majeure Event.

	20.2 	
      Liability for force majeure

	 	 	 
		
      Subject to clause 20.4, if a Force Majeure Event
      occurs:

	 	 	 
		(a) 	
      the Affected Party is not liable for any failure or delay
      in performing the Affected Obligations other than a failure to make a
      payment to the Other Party;

	 	 	 
		(b) 	
      the Affected Party's obligations under this Agreement are
      suspended, to the extent to which they are affected by the Force Majeure
      Event, for the duration of the Force Majeure Event.

	 	 	 
	20.3 	
      Exceptions

	 	 	 
		
      Clause 20.2 does not apply to the extent that:

	 	 	 
		(a) 	
      the Affected Party could have avoided or circumvented the
      Force Majeure Event by taking reasonable precautions or other reasonable
      steps to achieve this;

	 	 	 
		(b) 	
      the failure or delay in performing the Affected
      Obligations was caused by a breach of this Agreement by the Affected
      Party; or

	 	 	 
		(c) 	
      the Affected Party has not otherwise complied with its
      obligations under this clause 20.

	 	 	 
	20.4 	
      Effort to overcome

	 	 	 
		
      An Affected Party who has given notice of a Force Majeure
      Event under clause 20.1 must:

	 	 	 
		(a) 	
      use its reasonable endeavours to remove, overcome or
      minimise the effects of that Force Majeure Event as quickly as reasonably
      possible; and

	 	 	 
		(b) 	
      keep the other party regularly informed as to the steps
      or actions being taken to achieve this.

	 	 	 
		
      However, nothing in this clause 20 requires a party to
      settle any industrial dispute against its will.

	 	 	 
	20.5 	
      Right of termination

	 	 	 
		
      If a Force Majeure Event continues for more than 100
      Business Days, any party may terminate this Agreement by giving at least
      20 Business Days notice to the other party.

	 	 	 
	21. 	
      GST

	 	 	 
	21.1 	
      Definitions

37 

In this clause 21: 

	 	(a) 	
      the expressions Consideration, GST,
      Input Tax Credit, Recipient, Supply, Tax Invoice
      and Taxable Supply have the meanings given to those expressions
      in the A New Tax System (Goods and Services Tax) Act 1999 (GST
      Act); and

	 	 	 
	 	(b) 	
      Supplier means any party treated by the GST Act as
      making a Supply under this Agreement.

	21.2 	
      Consideration is GST exclusive

	 	 	 
		
      Unless otherwise expressly stated, all prices or other
      sums payable or Consideration to be provided under or in accordance with
      this Agreement are exclusive of GST.

	 	 	 
	21.3 	
      Payment of GST

	 	 	 
		(a) 	
      If GST is imposed on any Supply made under or in
      accordance with this Agreement, the Recipient of the Taxable Supply must
      pay to the Supplier an additional amount equal to the GST payable on or
      for the Taxable Supply, subject to the Recipient receiving a valid Tax
      Invoice in respect of the Supply at or before the time of
  payment.

	 	 	 
		(b) 	
      Payment of the additional amount must be made at the same
      time and in the same way as payment for the Taxable Supply is required to
      be made in accordance with this Agreement.

	 	 	 
	21.4 	
      Reimbursement of expenses

	 	 	 
		
      If this Agreement requires a party (the First
      Party) to pay for, reimburse, set off or contribute to any expense,
      loss or outgoing (Reimbursable Expense) suffered or incurred by the
      other party (the Other Party), the amount required to be paid,
      reimbursed, set off or contributed by the First Party will be the sum
      of:

	 	 	 
		(a) 	
      the amount of the Reimbursable Expense net of Input Tax
      Credits (if any) to which the Other Party is entitled in respect of the
      Reimbursable Expense (Net Amount); and

	 	 	 
		(b) 	
      if the Other Party's recovery from the First Party is a
      Taxable Supply, any GST payable in respect of that Supply,

	 	 	 
		
      such that after the Other Party meets the GST liability,
      it retains the Net Amount.

	 	 	 
	22. 	
      General

	 	 	 
	22.1 	
      Nature of obligations

	 	 	 
		(a) 	
      Any provision in this Agreement which binds more than one
      person binds all of those persons jointly and each of them
    severally.

	 	 	 
		(b) 	
      Each obligation imposed on a party by this Agreement in
      favour of another is a separate obligation.

	 	 	 
	22.2 	
      Time of the essence

	 	 	 
		
      In this Agreement, time is of the essence unless
      otherwise stipulated.

38 

	22.3 	
      Entire understanding

	 	 	 
		(a) 	
      This Agreement contains the entire understanding between
      the parties concerning the subject matter of the Agreement and supersedes
      all prior communications between the parties.

	 	 	 
		(b) 	
      Each party acknowledges that, except as expressly stated
      in this Agreement, that party has not relied on any representation,
      warranty or undertaking of any kind made by or on behalf of the other
      party in relation to the subject matter of this Agreement.

	 	 	 
	22.4 	
      No adverse construction

	 	 	 
		
      This Agreement is not to be construed to the disadvantage
      of a party because that party was responsible for its
  preparation.

	 	 	 
	22.5 	
      Further assurances

	 	 	 
		
      A party, at its own expense and within a reasonable time
      of being requested by another party to do so, must do all things and
      execute all documents that are reasonably necessary to give full effect to
      this Agreement.

	 	 	 
	22.6 	
      No waiver

	 	 	 
		(a) 	
      A failure, delay, relaxation or indulgence by a party in
      exercising any power or right conferred on the party by this Agreement
      does not operate as a waiver of the power or right.

	 	 	 
		(b) 	
      A single or partial exercise of the power or right does
      not preclude a further exercise of it or the exercise of any other power
      or right under this Agreement.

	 	 	 
		(c) 	
      A waiver of a breach does not operate as a waiver of any
      other breach.

	 	 	 
	22.7 	
      Severability

	 	 	 
		
      Any provision of this Agreement which is invalid in any
      jurisdiction must, in relation to that jurisdiction:

	 	 	 
		(a) 	
      be read down to the minimum extent necessary to achieve
      its validity, if applicable; and

	 	 	 
		(b) 	
      be severed from this Agreement in any other
  case,

	 	 	 
		
      without invalidating or affecting the remaining
      provisions of this Agreement or the validity of that provision in any
      other jurisdiction.

	 	 	 
	22.8 	
      Successors and assigns

	 	 	 
		
      This Agreement binds and benefits the parties and their
      respective successors and permitted assigns under clause 22.9.

	 	 	 
	22.9 	
      No assignment

	 	 	 
		
      A party cannot assign or otherwise transfer the benefit
      of this Agreement, other than to its Related Body Corporate, without the
      prior written consent of the other party.

39 

	22.10 	
      Consents and approvals

	 	 
		
      Where anything depends on the consent or approval of a
      party then, unless this Agreement provides otherwise, that consent or
      approval may be given conditionally or unconditionally or withheld, in the
      absolute discretion of that party.

	 	 
	22.11 	
      No variation

	 	 
		
      This Agreement cannot be amended or varied except in
      writing signed by the parties.

	 	 
	22.12 	
      Costs

	 	 
		
      Each party must pay its own legal costs of and incidental
      to the preparation and completion of this Agreement.

	 	 
	22.13 	
      Duty

	 	 
		
      Any duty fees or charges due to any Government Agency
      (including related interest or penalties) payable in respect of this
      Agreement or any instrument created in connection with it must be paid by
      EMC.

	 	 
	22.14 	
      Governing law and
jurisdiction

	 	(a) 	
      This Agreement is governed by and must be construed in
      accordance with the laws in force in New South Wales.

	 	 	 
	 	(b) 	
      The parties submit to the non-exclusive jurisdiction of
      the courts of New South Wales and the Commonwealth of Australia in respect
      of all matters arising out of or relating to this Agreement, its
      performance or subject matter.

	22.15 	
      Notices

	 	 
		
      Any notice or other communication to or by a party under
      this Agreement:

	 	(a) 	
      may be given by personal service, post or
    facsimile;

	 	 	 
	 	(b) 	
      must be in writing, legible and in English addressed
      (depending on the manner in which it is given) as shown
  below:

	 	(i) 	
      If to Jervois:

		Address: 	Suite 12, 10 Jamieson Street, Cheltenham, Victoria,
      Australia 3192 
	 	Attention: 	Duncan Pursell, Managing Director 
	 	Facsimile: 	+613 9583 0698 

	 	(ii) 	
      If to EMC:

		Address: 	11th Floor, 888 Dunsmuir Street, Vancouver, BC,
      Canada V6C 3K4 
	 	Attention: 	Peter Bosse, President 
	 	Facsimile: 	Canada 604 642 0604 

or to any other address last notified
by the party to the sender by notice given in accordance with this clause; 

40 

	 	(c) 	
      in the case of a corporation, must be signed by an
      officer or authorised representative of the sender or in accordance with
      section 127 of the Corporations Act; and

	 	 	 	 
	 	(d) 	
      is deemed to be given by the sender and received by the
      addressee:

	 	 	 	 
	 		(i) 	
      if delivered in person, when delivered to the
      addressee;

	 	 	 	 
	 		(ii) 	
      if posted, 2 Business Days (or 6 Business Days, if
      addressed outside Australia) after the date of posting to the addressee;
      or

	 	 	 	 
	 		(iii) 	
      if sent by facsimile transmission, on the date and time
      shown on the transmission report by the machine from which the facsimile
      was sent which indicates that the facsimile was sent in its entirety and
      in legible form to the facsimile number of the addressee notified for the
      purposes of this clause,

but if the delivery or receipt is on a
day which is not a Business Day or is after 5.00 pm (addressee's time) on a
Business Day, it is deemed to have been received at 9.00 am on the next Business
Day. 

	22.16 	
      Counterparts

	 	 
		
      If this Agreement consists of a number of signed
      counterparts, each is an original and all of the counterparts together
      constitute the same document.

	 	 
	22.17 	
      Conflicting provisions

	 	 
		
      If there is any conflict between the main body of this
      Agreement and any schedules or annexures comprising it, then the
      provisions of the main body of this Agreement prevail.

	 	 
	22.18 	
      Non merger

	 	 
		
      A term or condition of, or act done in connection with,
      this Agreement does not operate as a merger of any of the rights or
      remedies of the parties under this Agreement and those rights and remedies
      continue unchanged.

	 	 
	22.19 	
      Operation of indemnities

	 	 
		
      Unless this Agreement expressly provides
  otherwise:

	 	(a) 	
      each indemnity in this Agreement survives the expiry or
      termination of this Agreement; and

	 	 	 
	 	(b) 	
      a party may recover a payment under an indemnity in this
      Agreement before it makes the payment in respect of which the indemnity is
      given.

	22.20 	
      No right of set-off

	 	 
		
      Unless this Agreement expressly provides otherwise, a
      party has no right of set-off against a payment due to another
    party.

41 

Schedule 1 – Tenements

Part A: Tenement description 

	1. 	
      The Tenements comprise the area situated in New South
      Wales and shown coloured dark blue on a the plan contained in Schedule 1
      Part B, described as:

	 	 	 
		(a) 	
      part EL6009 (limited to BOU d, e, j, k, f); and

	 	 	 
		(b) 	
      EL6096

	 	 	 
	2. 	
      For the avoidance of doubt, the areas coloured yellow and
      light blue in the plan contained in Schedule 1 Part B do not form part of
      the Tenements under this Agreement.

42 

Part B – Tenement Location Plan 

 

43 

Schedule 2 – Freehold Land 

The land contained in Folio Identifier 6/752879, being
further described as follows: 

Part Tyrone off Gilgai Road Miandetta

Lot 6 in deposited plan 752879 at Miandette 
Local Government Area: Bogan

Parish of Gilgai County of Flinders 
(formerly known as portion 6)

  Title Diagram: Crown plan 261.1950 

The land contained in Folio Identifier 7/7528879, being
further described as follows: 

Part Tyrone off Gilgai Road Miandetta

Lot 7 in deposited plan 752879 at Miandette 
Local Government Area: Bogan

Parish of Gilgai County of Flinders 
(formerly known as portion 7)

  Title Diagram: Crown plan 263.1950 

44 

Schedule 3 – Mining Joint Venture principles

The Mining JVA will include provisions: 

	 	(a) 	
      permitting each party to caveat its respective interest
      in the Mining JV against any registered interest;

	 	 	 
	 	(b) 	
      providing (for the purpose of securing their mutual
      obligations) for cross-charging by the Parties in favour of one another of
      (inter alia) their respect interests in the Mining JV including their
      respective entitlements to the proceeds from the sale of any production
      from the mining operations;

	 	 	 
	 	(c) 	
      permitting the Parties to finance the mining operations
      on a project basis and to charge their respective interests in the Mining
      JV for that purpose; and

	 	 	 
	 	(d) 	
      providing that each Party shall own and shall have the
      right to take in kind and separately dispose of, in accordance with its
      interest in the Mining JV, its share of any production from the Mining
      Operations.

45 

Schedule 4 – New Royalty Deed 

The Payor agrees to pay the Payee a Net Smelter Royalty for all
Mineral Products and Refined Precious Metals as follows: 

	1. 	
      For Mineral Products and Refined Precious Metals, the Net
      Smelter Royalty will be 2% of Net Smelter Returns.

	 	 	 	 	 
	2. 	
      The following words and phrases will have the meanings in
      this Schedule:

	 	 	 	 	 
		(a) 	
      Mineral Products: All ores, minerals,
      concentrates, ore bullion, and other products mined and removed from all
      or any part of the Tenements, whether or not subsequently beneficiated,
      processed or otherwise upgraded (but excluding Refined Precious
      Metals).

	 	 	 	 	 
		(b) 	
      Refined Precious Metals: Gold derived from Mineral
      Products and refined by or for the account of the Payor to a purity of at
      least 0.995.

	 	 	 	 	 
		(c) 	
      Net Smelter Returns:

	 	 	 	 	 
			(i) 	
      in the case of Refined Precious Metals, the number of
      troy ounces of Refined Precious Metals delivered or credited to the
      account of the Payor prior to any refining, as evidenced by the metals
      return statements received from the refiner multiplied by the Deemed Sales
      Price, and reduced by the Allowable Charges; and

	 	 	 	 	 
			(ii) 	
      in the case of Mineral Products that are not Refined
      Precious Metals, the quantity of Mineral Products which are sold and
      delivered by the Payor, multiplied by the Deemed Sales Price and reduced
      by the Allowable Charges.

	 	 	 	 	 
		(d) 	
      Deemed Sales Price:

	 	 	 	 	 
			(i) 	
      In the case of Refined Precious Metals, the average of
      the London PM fixings in U.S. Dollars for gold (as shown in the column of
      the Wall Street Journal entitled “Cash Prices” under the sub entry
      entitled “Precious Metals”) on each trading day of the Quarter, in each
      case converted into Australian Dollars at the rate equal to the daily
      average of the telegraphic transfer selling and buying rates of exchange
      during the previous month by the Commonwealth Bank of Australia or, if
      that rate does not exist, at the rate reasonably determined by the
      Payor;

	 	 	 	 	 
			(ii) 	
      In the case of Mineral Products:

	 	 	 	 	 
				(A) 	
      if the Mineral Products are sold at arms length, the
      Deemed Sale Price shall comprise the gross proceeds actually received by
      the Payor from sale of those Mineral Products; and

	 	 	 	 	 
				(B) 	
      if the Mineral Products are sold otherwise than at arms
      length, the Deemed Sale Price shall comprise the fair market value of the
      Mineral Products as determined in good faith by the Payor.

	 	 	 	 	 
		(e) 	
      Quarter means the period of 3 calendar months
      ending on 31 March, 30 June, 30 September and 31 December in each
    year.

46 

	 	(f) 	
      Each of the Payor and the Payee acknowledge that the
      Payor may from time to time undertake forward sale and/or purchase
      contracts, spot deferred contracts, and option contracts and/or other
      price hedging and price protection arrangements and mechanisms and
      speculative purchases and sales of forward, futures and option contracts,
      both on and off commodity exchanges (Trading Activities) in
      connection with some or all of the Refined Precious Metals and other
      Mineral Products. The Trading Activities, and any profits and losses
      generated thereby, will not, in any manner, be taken into account in the
      calculation of royalties due to the Payee whether in connection with the
      determination of price, the date of sale, or the date any royalty payment
      is due. The Payee acknowledges that the Payor’s engaging in Trading
      Activities may result in the Payor realising from time to time fewer or
      more dollars for Refined Precious Metals or other Mineral products than is
      utilised in the royalty calculation and the Payee hereby waives any claim
      for additional royalty should the Payor at any time realise more dollars
      per troy ounce or other units of sale for Refined Precious Metals or
      Mineral Products than is utilised in the royalty calculation. Similarly,
      the Payor waives and the Payee will not be obligated to share in any
      losses generated by any Trading Activities with respect to Refined
      Precious Metals or other Mineral Products.

	 	 	 	 
	 	(g) 	
      Allowable Charges: The following costs, but only
      to the extent actually incurred and borne by the Payor:

	 	 	 	 
	 		(i) 	
      all government taxes, charges and royalties in respect of
      production or the value of production (but excluding any income tax and
      any GST which is subject to an input tax credit which is actually claimed
      and received);

	 	 	 	 
	 		(ii) 	
      charges, costs and penalties, if any, for smelting,
      refining and marketing. In the event smelting or refining are carried out
      in facilities owned or controlled, in whole or in part, by the Payor or
      its Affiliates, charges, costs and penalties with respect to those
      operations will mean reasonable charges, costs and penalties for those
      operations but not in excess of the amounts that the Payor would have
      incurred if those operations were carried out at facilities not owned or
      controlled by them offering comparable custom services;

	 	 	 	 
	 		(iii) 	
      charges and costs, if any, for transportation to places
      where Mineral Products are smelted, refined and sold; and

	 	 	 	 
	 		(iv) 	
      royalties, rentals, fees and charges payable to any
      government or other governmental or municipal body and under any native
      title or aboriginal heritage agreements with respect to the mineral
      products for which the royalty is being calculated.

	 	 	 	 
	 	(h) 	
      Payor means a party obliged to pay money under
      this Royalty.

	 	 	 	 
	 	(i) 	
      Payee means a party entitled to receive money
      under this Royalty.

	3. 	
      All royalty payments to the Payee will be paid in cash.
      Royalties must be paid on or before the 45th day after the last day of
      each Quarter. Each royalty payment will be provisional and subject to
      adjustment as of the end of the Payor’s fiscal year.

	 	 
	4. 	
      Within 90 days after the end of each of the Payor’s
      fiscal year, the Payor will deliver to the Payee an unaudited statement of
      royalties paid to the Payee during the year and the calculation thereof.
      All year end statements will be deemed true and correct 3
  months after presentation, unless within that period the Payee
      delivers notice to the Payor specifying with particularity the grounds for
      each exception. The Payee will be entitled at the Payee’s expense to an
      annual independent audit of the statement by a certified public accountant
      of recognised standing acceptable to the Payor within 2 months after
  presentation of the related year end statement.

47 

	5. 	
      the Payor will have the right to commingle any minerals
      with like resources from other properties. Before commingling, resources
      will be sampled, assayed, weighed and measured in accordance with sound
      industry practices. the Payor will maintain records of the measurements,
      which will be available for inspection by the Payee from time to time on
      reasonable notice.

	 	 
	6. 	
      For all purposes of this Schedule 4 “Affiliate” will mean
      any person, partnership, joint venture, corporation or other form of
      enterprise which directly or indirectly controls, or is controlled by, or
      is under common control with, a signatory. For purposes of the preceding
      sentence, the word “control” will mean possession, directly or indirectly,
      of the power to direct or cause direction of management and policies
      through ownership of voting securities, contract, voting trust or
      otherwise.Degaro Innovations Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

PURCHASE AND SALE AGREEMENT
 FOR
EQUIPMENT

BETWEEN
Degaro Innovations Corp., and N.A.T. Enterprise.

THIS PURCHASE AND SALE AGREEMENT is entered into this
18th day of March, 2011, by and between N.A.T.
Enterprise (hereinafter "Buyer"), a company based at Main Street, Steer Town
P.O. St. Ann, Jamaica, and Degaro Innovations Corp., (hereinafter "Company"), a
Nevada corporation, at Lot 107 Roaring River Steer Town P.O St. Ann J.W.

RECITALS:

     WHEREAS, Company is in the
business of selling solar equipment; and

     WHEREAS, Buyer desires to
purchase solar equipment for residential and commercial use.

     NOW, THEREFORE, in
consideration of the mutual agreements and covenants contained therein and for
other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, it is mutually agreed and covenanted by and between the
parties to this Agreement, under seal, as follows:

1. Sale of Equipment. Company hereby sells to
Buyer and Buyer hereby purchases from Company the equipment described on
Exhibit A attached hereto and incorporated herein, (hereinafter
"Equipment"). Such Equipment shall be shipped FOB China port (as hereinafter
defined in Paragraph 6), freight pre-paid and absorbed by Buyer.

2. Purchase Price. Buyer shall pay to Company for
the Equipment and for all obligations specified herein, as full and complete
consideration therefore, the sum of Thirty Six thousand, two hundred and thirty
eight US Dollars and Fifty cents (USD$36,238.50) FOB China Port (hereinafter
"Purchase Price").

3. Payment. Payment of the Purchase Price shall
be made by Buyer to Company in accordance with the following schedule:

     A. Ten Percent (10%) of the
Purchase Price within thirty (45) days after the execution of this Agreement;
and

     B. Ninety Percent (90%) of the
Purchase Price within thirty (30) days after Delivery of the Equipment (as
defined in Paragraph 7 of the Agreement); and

     All invoices submitted to Buyer by
Company shall list the items of Equipment purchased. 

4. Taxes and Duties. The Buyer shall be
responsible for any sales, use, property, gross receipts, or similar taxes and
duties levied against any party to this Agreement.

5. Site Evaluation. At no cost or expense to
Buyer, Company shall furnish Buyer with site preparation analysis, which shall
include, but not be limited to, power, permits, licenses, and operational
considerations with respect to the Equipment. Company's personnel shall
coordinate their activities with and avoid interference with Buyer's employees
and construction contractors working to prepare the Installation Site (as
hereinafter defined) for receipt of the Equipment. A pre-installation
instruction manual will be provided to Buyer by Company upon request.

6. Site Preparation. Buyer shall be responsible
for preparing a site suitable for the installation and operation of the
Equipment or the Buyer can request from the Company at extra costs for the
Company to assist the Buyer with installation and after sales service.
(hereinafter "Installation Site").

7. Delivery. Delivery of the Equipment to Buyer
by Company, at the Buyer’s sole cost and expense, shall be shipped after receipt
of a purchase order and Bill of Lading (hereinafter "Delivery Date"). The
Equipment shall be packaged appropriately and all cartons shall be clearly
stamped with Buyer's Purchase Order Number. Buyer must be able to identify
easily all items of the Equipment contained within each carton. Delivery of the
Equipment in an undamaged condition to Buyer's Installation Site shall
constitute "Delivery" to Buyer. Risk of loss during transit shall remain with
Company.

     A packing slip indicating each
item and item quantity shipped shall accompany every shipment.

     The purchase order number must
also appear on all packing slips, invoices and correspondence.

     All items "not found" shall be
noted and the anticipated availability of the items shall be indicated clearly
on the packing list. No substitutions shall be made without prior authorization
by Buyer's Corporate Purchasing.

8. Installation. At the request and cost to the
Buyer the Company shall install the Equipment at the Installation Site in
accordance with the installation schedule outlined in Exhibit B
attached hereto and incorporated herein (the "Installation Schedule"),
and connect the same to the safety switches or electrical outlets to be provided
and at the cost to the Buyer. The Buyer shall be responsible for all costs
associated with delivery and installation of the Equipment. Time is of the
essence to this Agreement.

     The Buyer and Company shall
comply with all permits and licenses required by Federal, State, or local
authorities in connection with the delivery and installation of the
Equipment.

9. Testing and Certification. Upon completion of
installation of the Equipment, Company shall perform prescribed tests to
determine that the Equipment is operating

- 2 -

10. Acceptance. “Acceptance" of the Equipment
shall be deemed to occur on the date when, the Equipment is delivered to the
Buyer's Installation Site.

11. Termination. The Buyer reserves the right to
terminate this Purchase Order in the event that it is not satisfied with the
testing of the Equipment located at the Company’s test site (“Test Site”). The
Buyer must have reasonable grounds to terminate this purchase order and the
Buyer has the right to test the Equipment to ensure that the Equipment conforms
to the Specifications, and has continuously operated in compliance with the
Specifications for thirty (30) days after Equipment has been installed at the
Test Site.

12. Training. Prior to Acceptance of the
Equipment or at such other time as the parties may mutually agree, Company shall
provide, at no cost or expense to Buyer, training in operation of the Equipment
for employees designated by Buyer.

     Two (2) copies of operator and
service instruction manuals are to be provided to Buyer by Company, the latter
to include electrical and mechanical schematics, and parts and current price
lists.

13. Equipment Warranty. The warranty provided to
Buyer by Company with respect to the Equipment is set forth as follows:

	 	A. 	
      The Company hereby warrants to the Buyer that the
      Products delivered under this agreement will be free from defects in
      material and workmanship.

	 	B. 	
      The Company hereby warrants to the Buyer that the
      Products delivered under this agreement will carry the following
      warranties:

	 	
      i. 
	
      Solar panels: 5 Years

	 	
      ii. 
	
      Batteries: 1 Year

	 	
      iii. 
	
      Controller and inverter: 1 Year

The warranty period shall commence upon Acceptance of the
Equipment.

14. Indemnification.

     A. Company shall indemnify and
hold Buyer its trustees, officers, employees, and agents harmless from any loss,
lawsuit, liability, damage, cost and expense (including reasonable attorneys'
fees) which may arise out of or result from (i) claims by third persons against
Buyer that the Equipment has caused damage to property or bodily injury
(including death); or (ii) the acts or omissions of the Company, its agents or
employees in connection with this Agreement; or (iii) any defects in any
Equipment supplied by the Company; or (iv) any breach or default in the
performance of the obligations of Company hereunder including any breach of
warranty. Company's indemnification obligations hereunder shall not apply to the
extent that any claim is caused by the negligence or misconduct of Buyer.

     B. The invalidity, in whole or in
part, of any of the foregoing paragraph will not affect the remainder of such
paragraph.

- 3 -

15. Default by Company. Upon the occurrence of
any of the following events, and except as is otherwise provided for in this
Agreement, Company shall be deemed to be in default under this Agreement if:

     A. Company fails or defaults in
the performance of any material obligation or covenant under this Agreement and
does not correct or substantially cure such failure, default, or breach within
thirty (30) days from and after Company's receipt of written notice from Buyer
of such default or breach; or

     B. Any material representation or
warranty made by Company hereunder is breached and remains uncured from and
after thirty (30) days following Company's receipt of written notice from Buyer
of such breach.

If any event of default occurs and is not cured within any
applicable period specified above, Buyer, at its sole option, may employ any
remedy then available to it, whether at law or in equity, including, but not
limited to, the following:

     A. Proceed by appropriate court
action to enforce performance by Company of the applicable covenants and
obligations of this Agreement and to recover damages for the breach thereof,
and/or to enforce the indemnification set forth in Paragraph 15 hereof; or 

     B. Terminate this Agreement as to
all or any part as Buyer in its sole discretion may determine; or 

     C. Pursue any other rights or
remedies available to Buyer under the laws of the State of Nevada.

16. Default by Buyer. Default by Buyer in payment
(except in the case of a bona fide dispute) or performance of any material duty
or obligation under this Agreement, shall, at the sole option of Company, if the
default is not cured within thirty (30) days from and after Buyer's receipt of
written notice from Company of the default, constitute a default of this
Agreement. In such an event, Company, at its sole option, may employ any remedy
then available to it, whether at law or in equity, including, but not limited,
to the following:

     A. Withhold performance or
further performance hereunder until all such defaults have been cured, provided,
however, that Company shall continue to perform hereunder in the event of a bona
fide payment dispute, which has been communicated to Company; or 

     B. Pursue any other rights and
remedies available to Company under the laws of the State of Nevada.

17. General.

     A. Compliance with Laws.
Company shall perform this Agreement in compliance with all applicable Federal,
State, and local laws, rules, regulations, and ordinances, and represents that it shall have obtained all licenses and permits
required by law to engage in the activities necessary to perform its obligations
under this Agreement. 

- 4 -

     B. Confidentiality. The
parties shall hold in strictest confidence any information and material which is
related to either Buyer's or Company's business or is designated by either Buyer
or Company as proprietary and confidential, herein or otherwise. It is
understood that this confidentiality clause does not include information which:
(i) is now or hereafter in the public domain through no fault of the party being
provided the confidential information; (ii) prior to disclosure hereunder, is
property within the rightful possession of the party being provided the
confidential information; (iii) subsequent to disclosure hereunder, is lawfully
received from a third party with no restriction on further disclosure; or (iv)
is obligated to be produced under order of a court of competent jurisdiction,
unless made the subject of a confidentiality agreement or protective order in
connection with such proceeding, which the parties in all cases will attempt to
obtain. Buyer and Company hereby covenant that each shall not disclose such
information to any third party without prior written authorization of the other.
Company further covenants not to disclose or otherwise make known to any party
nor to issue or release for publication any articles or advertising or publicity
matter relating to this Agreement in which the name of Buyer or any of its
affiliates is mentioned or used, directly or indirectly, unless prior written
consent is granted by Buyer.

     C. Notices. All notices
and other communications pertaining to this Agreement shall be in writing and
shall be deemed duly to have been given if personally delivered to the other
party or if sent by certified mail, return receipt requested, postage prepaid or
by Federal Express, United Parcel or other nationally recognized overnight
carrier. All notices or communications between Buyer and Company pertaining to
this Agreement shall be addressed as follows:

	If to Buyer: 	N.A.T. Enterprise 
	  	Main Street, Steer Town P.O. 
	 	St. Ann,
Jamaica  
	  	  
	  	  
	If to Company: 	Degaro Innovations Corp. 
	  	Lot 107 Roaring River Steer Town P.O 
		St. Ann,
  Jamaica  

     E. Waiver. Any waiver by
either party of a breach of any provision of this Agreement shall not operate as
or be construed to be a waiver of any other breach of such provision or of any
breach of any other provision of this Agreement. The failure of a party to
insist upon strict adherence to any term of this Agreement on one or more
occasions shall neither be considered a waiver nor deprive that party of any
right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any
waiver must be in writing and signed by the party to be charged therewith.

- 5 -

     F. Modifications. No
revision or modification of this Agreement shall be effective unless in writing
and executed by authorized representative of both parties.

     G. Assignment. The prior
written approval of Buyer shall be required to allow a delegation or assignment
of duty to perform any obligation owed to Buyer by Company, its agents,
employees, contractors or affiliates.

     H. Severability. If any
portion of this Agreement is held invalid, such invalidity shall not affect the
validity of the remaining portions of the Agreement, and the parties will
substitute for any such invalid portion hereof a provision which best
approximates the effect and intent of the invalid provision.

     J. Headings. The paragraph
titles of this Agreement are for conveniences only and shall not define or limit
any of the provisions hereof.

     K. Entire Agreement. This
Agreement, the documents referenced herein and all Exhibits hereto
(Exhibits A through B) are intended as the complete
and exclusive statement of the agreement between Buyer and Company with respect
to the subject matter hereof, and supersede all prior agreements and
negotiations related thereto.

     L. Binding Effect. The
provisions hereof shall be binding upon and shall inure to the benefit of Buyer
and Company, their respective successors, and permitted assigns.

     O. Survival. The
representations and warranties contained in Paragraphs 14, 15 and 17 shall
survive termination of this Agreement.

     P. Counterparts. Provided
that all parties hereto execute a copy of this Agreement, this Agreement may be
executed in counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same instrument. Executed copies of
this Agreement may be delivered by facsimile transmission or other comparable
means. This Agreement shall be deemed fully executed and entered into on the
date of execution by the last signatory required hereby.

     S. Parts. For a one-year
period from the date hereof, Company agrees to make available and sell to Buyer
such parts as to maintain the Equipment in good working order and to offer a
maintenance program.

- 6 -

     T. Specification
Conflicts. In the event of any ambiguity or conflict among the provisions of
this Agreement and Exhibits hereto, requests for proposals issued by the Buyer
relating to the purchase of the Equipment, Purchase Orders issued by the Buyer,
the Company's proposals, quotes or order acknowledgments, manufacturers' product
specifications, and other documents relating to the Company's sale of the
Equipment to the Buyer, the Company shall be required to comply with the most stringent requirement which
provides the highest quality and greatest benefit to the Buyer, unless otherwise
specifically directed by the Buyer in writing. The terms and conditions of this
Agreement are intended to govern the purchase and sale of the Equipment, and any
conflicting terms and conditions, or additional terms and conditions, in any
vendor prepared document shall not apply.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

- 7 -

     IN WITNESS WHEREOF, Degaro
Innovations Corp., and N.A.T. Enterprise have signed this agreement as of the
day and year first written above, and the person executing this agreement on
behalf of each party represents and warrants that this agreement has been
authorized by all necessary parties, is validly executed by an authorized
officer or agent, and is binding upon and enforceable against the company in
accordance with its terms.

 

	 	 By: 	/s/ Sheryl Briscoe
	 	 	Name:	      Degaro Innovations Corp. 
	 	 	Title:	      President 

- 8 -

EXHIBIT A

Description of Equipment

	QUANTITY 	ITEM NO 	DESCRIPTION 	PRICE 	TOTAL 
	  	  	  	  	  
	3 	750w 	750W Solar System 	$5,907 each 	$17,721.00 
	1 	2KW 	2KW Solar System 	$18,517 each 	$18,517.50 

	750W System 
	system components 
	Items 	Total capacity 	Model 	Power 	Quantity (PCS) 
	Polycrystalline solar 
panels 	720WP 
	PS180-24P 
	180W 
	4 

	Lead-acid battery 	400AH/24V 	GP200 	200AH/12V 	4 
	Inverter 	750W 	PCN751024D 	750W/24V 	1 
	Brackets and cables 	  	  	  	1 set 
	 
	Certificates 	CE&RHOS 
	Quality Assurance 	Solar panels:5
      years; Battery: 1year:Inverter:1 year 
	2KW System 
	system components 
	Items 	Total capacity 	Model 	Power 	Quantity (PCS) 
	PollycrystallineSolar 
panels 	2160WP 	PS180-24P 	180W 	12 
	Storage battery 	1500AH/24V 	GP1500 	1500AH/2V 	12 
	Controller 	100A/24V 	PC10024 	2400W/24V 	1 
	Inverter 	2KW 	PN50220C 	2KW/220V 	1 
	Brackets and cables 	  	  	  	  
	 
	Certificates 	CE&RHOS 
	Quality Assurance 	Solar panels:5
  years; Battery: 1years:Controller and inverter:1 years

In Exhibit A attached hereto, the terms
in main body of the Agreement will control.

- 9 -

EXHIBIT B

Installation Guide Components

Basic Principles to Follow When Designing a Quality PV
System 

1. Select a packaged system that meets the owner's needs.
Customer criteria for a system may include reduction in monthly electricity
bill, environmental benefits, desire for backup power, initial budget
constraints, etc. Size and orient the PV array to provide the expected
electrical power and energy. 
2. Ensure the roof area or other installation
site is capable of handling the desired system size. 
3. Specify sunlight and
weather resistant materials for all outdoor equipment. 
4. Locate the array
to minimize shading from foliage, vent pipes, and adjacent structures. 
5.
Design the system in compliance with all applicable building and electrical
codes. 
6. Design the system with a minimum of electrical losses due to
wiring, fuses, switches, and inverters. 
7. Properly house and manage the
battery system, should batteries be required. 
8. Ensure the design meets
local utility interconnection requirements.

Basic Steps to Follow When Installing a PV System 

1. Ensure the roof area or other installation site is capable
of handling the desired system size.
2. If roof mounted, verify that the roof
is capable of handling additional weight of PV system. Augment roof structure as
necessary. 
3. Properly seal any roof penetrations with roofing industry
approved sealing methods. 
4. Install equipment according to manufacturer’s
specifications, using installation requirements and procedures from the
manufacturers' specifications.
5. Properly ground the system parts to reduce
the threat of shock hazards and induced surges. 
6. Check for proper PV
system operation by following the checkout procedures on the PV System
Installation Checklist. 
7. Ensure the design meets local utility
interconnection requirements
8. Have final inspections completed by the
Authority Having Jurisdiction (AHJ) and the utility (if required).

- 10 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]