Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Lincoln Gold Corp. - Exhibit 10.5

 MINING LEASE 

 THIS MINING LEASE ("Agreement") is hereby made and entered
  into as of the 9th day of July, 2004 (the "Effective Date") by and between:
  NEVADA NORTH RESOURCES (U.S.A.), INC., hereinafter called "Lessor",
  and LINCOLN GOLD CORP. a Nevada corporation hereinafter called "Lessee
  or Lincoln". 

WITNESSETH:

 In consideration of the mutual promises and covenants set
  forth herein, Ten Dollars ($10.00) in hand paid and other good and valuable
  consideration, the receipt and sufficiency of which are hereby acknowledged,
  Lessee and Lessor (sometimes referred to hereinafter as a "Party" or collectively
  as the "Parties") agree as follows:

I. Grant of Lease

 1.1 Grant of Lease. Lessor hereby grants and conveys
  unto Lessee, its successors and assigns, subject to Section 5.1, below, an exclusive
  lease of the Property on the terms and conditions set forth in this Agreement.
  As used in this Agreement, the term "Property" means Lessor's entire interest
  in the properties described in Exhibit A, attached hereto and made a part hereof,
  together with all minerals, mineral substances, mineral rights, water rights
  and all surface, access, and other rights associated with or appurtenant to
  such Property. 

 1.2 Term. The initial term of this Agreement shall
  be twenty (20) years from the Effective Date, unless sooner terminated according
  to the provisions of this Agreement. This Agreement shall remain in effect after
  the initial term for so long as mining, processing, construction of mine facilities,
  development of ore reserves or exploration activities ("Mining Related Activities")
  continue on the Property or other adjacent or contiguous properties owned or
  controlled by Lessee within each anniversary of this Agreement. It shall not
  be required that Mining Related Activities be continuous in order for this Agreement
  to be extended beyond the initial term hereof.

 (a) Minimum term. Lincoln commits to a two (2) year option
  on the property made up of the initial payment and the first year anniversary
  payments. 

 1.3 Grant of Rights. During the term of this Agreement,
  Lessor grants to Lessee the following exclusive rights: 

 (a) the right of entry; 

 (b) by whatever method is now known or subsequently developed,
  to survey, explore, prospect, sample, drill, develop, mine (including without
  limitation by surface, open pit, underground, solution or any other method whatsoever),
  cross-mine, stockpile, remove, transport, leach, concentrate, mill, smelt, beneficiate,
  process, treat, ship, market and sell all minerals, whether extracted or removed
  from the Property or other properties; 

 (c) to construct, use, maintain, repair, replace and relocate
  buildings, roads, pipelines, ore bins, shafts, declines, inclines, tunnels,
  drifts, adits, open pits, openings, haulage ways, mine workings, leach pads,
  mineral treatment facilities, tailings ponds, waste dumps, ore stockpiles, reservoirs,

 power and communication lines and any other structures, facilities
  or improvements of any kind or description whatsoever; 

 (d) to use the Property for the storage or permanent disposal
  of minerals, overburden, waste, tailings, water or other by-products of materials
  produced from the Property or from other properties; 

 (e) to use all easements, rights-of-way and means of access
  for ingress and egress to, from, across and through the Property; 

 (f) to take, develop, or use water, whether surface, underground,
  or artesian, by any lawful taking or development, without restriction as to
  the place or places of Lessee's use of the waters, except that such use may
  not interfere with any domestic or agricultural use of water to which Lessor
  has a right of use; 

 (g) to extract, process, test, remove and dispose of any minerals
  and mineral substances for testing purposes (including, without limitation,
  for bulk samples) without payment of any Net Smelter Return or other additional
  consideration whatsoever to Lessor, provided that Lessee shall pay Net Smelter
  Return on any such minerals removed from the Property for testing purposes for
  which it receives actual sales revenues; 

 (h) to use the Property for all of the purposes stated in
  this Section 1.3 in connection with or in furtherance of Lessee's activities
  on other properties; and 

 (i) to exercise all other rights that are incidental to or
  customarily associated with any or all of the rights granted expressly or implicitly
  to Lessee in this Agreement. 

II. Payments to Lessor

 2.1 Advance Minimum Royalties. Advance royalties as
  used herein means the amount required to be paid by Lessee to Lessor, as set
  forth below, to provide for a specific minimum payment in such periods. During
  the term of this Agreement, Lessee shall pay to Lessor advance minimum royalties
  ("Advance Royalties") as follows: 

	 Upon exercise of this Lease: (already paid) 
    	 $10,000 	  
	  	 	 
	 On or before the first anniversary of the Effective
      Date  	 $20,000 	  
	 On or before the second anniversary of the Effective
      Date  	 $20,000 	  
	 On or before the third anniversary of the Effective
      Date  	 $40,000 	  
	 On or before the fourth anniversary of the Effective
      Date  	 $40,000 	  
	 On or before the fifth anniversary of the Effective
      Date  	 $50,000 	  
	 On or before the sixth anniversary of the Effective
      Date  	 $50,000 	  
	 On or before the seventh anniversary of the Effective
      Date  	 $60,000 	  
	 On or before the eighth anniversary of the Effective
      Date  	 $60,000 	  
	 On or before the ninth anniversary of the Effective
      Date  	 $70,000 	  
	 On or before the tenth anniversary of the Effective
      Date  	 $70,000 	  
	  	 	 
	 On or before each subsequent anniversary of the
      Effective Date  	 $80,000 	 *  

 * Beginning on the eleventh anniversary of the Agreement,
  the Advance Royalty of $80,000 shall be adjusted for inflation increases according
  to the United States Department of Labor Consumer Price Index. The beginning
  index shall be the index published for April 2015. However, in no case will
  the Advance Royalty drop below the Advance Royalty base amount of $80,000. 

 Advance Royalties shall be paid on or before the date due.
  Lessee shall not be responsible or liable for Advance Royalties that become
  due subsequent to termination or expiration of this Agreement. Advance Royalties
  paid hereunder shall be credited against and fully recoupable from any and all
  Net Smelter Return that may accrue under Section 2.2, regardless of whether
  such Net Smelter Return accrues or is made in the same or any subsequent year
  to the year of payment of the Advance Royalties. 

2.2 Net Smelter Return.

 (a) Percentage and Calculation. Subject to applicable credits
  and adjustments, Lessee, in accordance with its usual practice, shall pay to
  Lessor a Net Smelter Return (the "NSR") equal to the applicable percentage of
  Net Value as defined, calculated and paid as set forth in Exhibit B, attached
  hereto and by this reference made a part hereof. Said percentages shall be as
  follows: 

	 Gold Price  	 NSR 	  
	 $375.00 or less per ounce  	 3.0% 	 
	 More than $375 but less than $474 per ounce 
    	 4.0% 	 
	 $474.00 or more per ounce  	 5.0% 	 

 (b) Option to Reduce Net Smelter Return. At any time during
  the term of this Lease and as to all NSR payments not yet paid, Lessee shall
  have the right to reduce the NSR by purchasing a portion of the Lessor's NSR
  such that the Lessor retains a minimum 3% NSR. The purchase price of the NSR
  shall be $1,000,000 US for each 1% NSR, $500,000 for each 0.5% NSR, and $250,000
  for each 0.25% NSR. Such an NSR buy down may take place all at one time or piecemeal.

 The right to purchase the said NSR interest shall be exercised
  by Lessee providing the Lessor with notice of the purchase accompanied by payment
  in full for the amount of the NSR interest being purchased. 

 If only a portion of the NSR is purchased, then in the event
  of changes in the gold price the Lessor shall retain the remaining unpurchased
  NSR percentage points on the sliding scale NSR, as outlined in Section 2.2 (a)
  herein. 

 (c) U.S. Government Tax or Royalty. If the United States mining
  laws are hereafter amended or a new federal law is enacted requiring the payment
  of a royalty, a percentage of gross or net profits, a severance tax, or any
  other form of compensation to the United States based upon the production of
  minerals from the Property or any portion thereof (a "U.S. Government Tax or
  Royalty"), then the purchase price of the NSR shall be half of the purchase
  price described above in this Section 2.2 (b). For clarity, the purchase price
  of the NSR would then be $500,000 US for each 1% NSR, $250,000 for each 0.5%
  NSR, and $125,000 for each 0.25% NSR. However, Lessor's NSR shall not be reduced
  under this provision below three percent (3.0%) . If only a portion of the NSR
  is purchased, then in the event of changes in the gold price the Lessor shall

 retain the remaining unpurchased NSR percentage points on
  the sliding scale NSR, as outlined in Section 2.2 (a) herein.

 This Section on US Government Tax on Royalties is not intended
  to be triggered by a general increase in personal or corporate income taxes.

 (d) Disputes. Lessor shall be deemed to have waived any right
  it may have had to dispute any payment of the Net Smelter Return unless Lessor
  notifies Lessee in writing of such dispute within six (6) months after the date
  of Lessee's payment, providing reasonable detail as to the nature of the dispute.

III. Operations

 3.1 No Implied Covenants. Lessee does not make, and
  the Advance Royalties and other obligations of Lessee under this Agreement exclude
  and negate, any express or implied covenant or duty of Lessee to conduct any
  activity upon or for the benefit of the Property, including without limitation
  any activities related to the exploration, development or mining of the Property.
  Whether or not any such exploration, development, mining or other activities
  shall at any time (including, without limitation, during the primary term or
  any extended term of this Agreement) be conducted and the location, manner,
  method, extent, rate and timing of such activities (if any) shall be determined
  within the sole and absolute discretion of Lessee. 

 3.2 Compliance with Law: Reclamation. In connection
  with its activities upon the Property, Lessee shall endeavor in good faith to
  comply with applicable provisions of Federal, State and local laws and regulations.
  Upon expiration or termination of this Agreement, Lessee shall reclaim all portions
  of the Property disturbed by its operations (i.e., to the extent and only to
  the extent of Lessee's disturbance) in accordance with all applicable governmental
  laws, regulations and orders. Lessee shall have the right, without payment of
  any additional consideration to Lessor, to enter upon the Property subsequent
  to termination of this Agreement for purposes of performing such reclamation
  work. 

 3.3 Permits and Approvals. Lessor understands that
  Lessee may make efforts to obtain permits, licenses, rights, approvals or authorizations
  from governmental or private persons or entities in connection with the exercise
  by Lessee of its rights under this Agreement. Upon request by Lessee, Lessor
  shall assist and cooperate fully with Lessee in any such endeavor, including,
  without limitation, the execution of pertinent documents and the making of verbal
  endorsements for Lessee's related activities. 

 3.4 Liens. Lessee shall keep the title to the Property
  free and clear of all mechanic's and supplier's liens resulting from its operations
  under this Agreement. Lessee may refuse, however, to pay any claims asserted
  against it which Lessee disputes in good faith. Lessee may contest any suit
  commenced to enforce such a claim, but under no circumstances shall Lessee allow
  the Property or any portion thereof to be sold as a result of foreclosure of
  such a lien. 

 3.5 Indemnity. Each Party covenants and agrees to indemnify
  the other from and against any and all liability, claims, damages (including
  attorneys' fees) and causes of action for injury to or death of persons, and
  damage to or loss or destruction of property and environmental liabilities resulting
  from the indemnifying Party' s use or occupancy of the Property or its operations
  hereunder. 

 3.6 Commingling. Lessee shall have the right to commingle
  minerals produced from the Property ("Subject Ore") with minerals produced from
  other tracts ("Other Ore") for any purposes whatsoever, including, without limitation,
  processing or conversion to another product. In the event that Lessee commingles
  Subject Ore with Other Ore pursuant to this Section 3.6, Lessee shall perform
  sufficient sampling, weighing and assaying, in accordance with standards and
  practices generally accepted or employed within the industry, to determine the
  grades and quantities of minerals removed and sold from the Property. Without
  limiting the foregoing, in the event that Lessee commingles Subject Ore with
  Other Ore then, for purposes of determining the Net Smelter Return payable to
  Lessor, the percentages of valuable minerals ultimately recovered from the commingled
  ore (i.e., from the commingled Subject Ore and Other Ore as a whole) shall conclusively
  be deemed applicable to the Subject Ore included therein. Lessor has the right,
  at its own expense, to take independent samples of commingled ores, upon reasonable
  advance notice to Lessee and in a manner that will not interrupt Lessee's operations.

 3.7 Taxes, Cooperation and Maintenance Payments.

 (a) Taxes. Lessor shall promptly pay when due all ad valorem
  and real property taxes and assessments levied upon, assessed against or relating
  to the Property, provided, however, that Lessee shall reimburse Lessor for any
  increases in or advance payments of such real property taxes or assessments
  that are attributable to any enhancement in the value of the Property resulting
  from Lessee's activities under this Agreement, including, without limitation,
  deferred agricultural property taxes. Each of Lessee and Lessor shall be responsible
  for all taxes and assessments levied or assessed upon or against their respective
  personal property located on or about the Property. Each of Lessee and Lessor
  shall be responsible for payment of income taxes on their own respective incomes.
  If Lessor fails to timely pay such taxes, Lessee shall have the right, but not
  the duty, to pay such taxes on Lessor's behalf and deduct such amounts from
  any amounts due Lessor hereunder. 

 (b) Cooperation. Lessor shall promptly furnish to Lessee all
  bills, demands, notices, assessments or statements received by Lessor which
  relate to any tax, assessment or fee for which Lessee is responsible, in whole
  or in part, pursuant to this Section 3.7. Each Party shall provide the other
  Party with copies of all checks and other documentation evidencing the timely
  payment of all taxes, assessments and fees for which it is responsible pursuant
  to Section 3.7A. 

 (c) Maintenance Payments. Lessee shall pay those federal claim
  maintenance fees due on the Property by September 1, 2004 and any associated
  county recording fees. For each year this Agreement remains in effect past June
  1 of the then current year, Lessee shall timely and properly pay federal maintenance
  fees and county recording fees pertaining to the Property leased hereunder to
  Lessee. 

IV. Title

 4.1 Provision of Information. Upon request by Lessee,
  Lessor shall furnish to Lessee copies of all information in its possession or
  under its control relating to title to or description of the Property, including
  without limitation copies of all abstracts, certificates of title, title insurance
  policies, commitments for title insurance, title reports, memorandum or opinions
  of counsel, prior deeds, contracts, maps, surveys and documents filed with any
  local, state or federal

 governmental agency. Lessee shall promptly reimburse Lessor
  for the costs of such copies. Upon execution of this Agreement, Lessor shall
  provide to Lessee any and all information in its possession or under its control
  regarding any existing or past industrial, milling, manufacturing, waste storage,
  exploration, development, mining, processing or beneficiating use of the Property.
  Pursuant to this Section 4.1, Lessor shall only be obligated to provide to Lessee
  information that is in its possession or under its control and Lessor shall
  not be obligated to obtain or provide any other information or documents. 

 4.2 Representations. Lessor represents to Lessee that
  to the best of Lessor's knowledge and belief, as of the Effective Date and as
  of the date of execution of this Agreement that: 

 (a) Subject to the paramount title of the United States, Lessor
  is the sole legal and equitable owner of a one hundred percent (100%) undivided
  ownership interest in those unpatented lode mining claims described as Property
  herein, without limitation or restriction whatsoever; 

 (b) The Property is free and clear of all leases, liens, encumbrances,
  adverse claims, burdens on production and royalty interests; 

 (c) Any and all taxes and assessments that have been levied
  or assessed against or upon the Property that are due and owing have been paid;

 (d) Lessor (and the individual who is executing this Agreement
  on Lessor's behalf) has the full right, power and authority to execute and enter
  into this Agreement and such execution and performance shall not violate any
  contract or other obligation of Lessor; 

 (e) Lessee shall have the quiet and peaceful possession and
  enjoyment of the Property, and, upon request by Lessee, Lessor shall defend
  title to the Property, and Lessee's quiet and peaceful possession and enjoyment
  thereof against any and all persons or entities who may claim any right, title
  or interest in or to the Property or any portion thereof; 

 (f) There is and has been no violation of any applicable federal,
  state or local law or regulation, including, without limitation, those concerning
  zoning, land use or environmental protection, with respect to the Property or
  activities relating thereto;

 (g) No actions, claims or proceedings have been brought, asserted
  or threatened concerning the ownership or right to possession of the Property
  or any portion thereof or otherwise concerning the Property or activities relating
  thereto; and 

 (h) All unpatented mining claims included in the Property
  have been properly staked according to industry standards and maintained and
  are validly existing in accordance with applicable law. 

 4.3 Indemnity. In the event that any of Lessor's representations
  set forth in Section 4.2 is less than represented, Lessor shall indemnify and
  hold Lessee harmless from and against any and all damage, liability, obligation,
  claim, demand, judgment, action, cost, loss and expense, including, without
  limitation, reasonable attorneys' fees arising directly or indirectly as a result
  of said misrepresentation. 

4.4 Title Curative Measures.

 (a) Title Defects. If title to any part of the Property is
  defective or less than as represented in Section 4.2, Lessee shall have the
  right, but not the obligation, to undertake to cure any such defects or to defend
  or to initiate litigation to perfect, defend or cure title to the Property,
  but only after Lessor has been offered the opportunity to take any necessary
  curative measures. 

 (b) Crediting of Costs. Lessee shall have the right to credit
  against any and all payments to Lessor under this Agreement ("Payments"), including
  without limitation Advance Royalties, Net Smelter Return and all costs and expenses
  incurred by Lessee at Lessor's request in connection with any action to cure,
  defend or perfect title pursuant to Section 4.4. A. Such costs and expenses
  may include, without limitation, those relating to title research, court costs,
  surveying and attorneys' fees. 

 (c) Redemption. Lessee, at its option, shall have the right
  to pay off, discharge or redeem, in whole or in part, any or all mortgages,
  liens, encumbrances or unpaid taxes on, against or affecting the Property. If
  Lessee pays any such mortgage, lien, encumbrance or unpaid taxes created or
  caused by Lessor, Lessee shall be subrogated to the rights of the holder thereof
  and shall have the right to retain and repay itself from any or all Payments
  to Lessor hereunder. 

 (d) Liability. Lessee at any time may withdraw from or discontinue
  any action or activity undertaken or initiated by it to cure, defend or perfect
  title to the Property pursuant to Section 4.4. A. Lessee shall not be liable
  to Lessor in any way if Lessee is unsuccessful in, withdraws from or discontinues
  any such action or activity.

 4.5 Additional and After-Acquired Title. If Lessor
  now owns or subsequently acquires any further right, title or interest in or
  to the Property, Lessor shall promptly provide Lessee with written notice thereof
  and such right, title and interest shall, without payment of additional consideration,
  be part of the Property subject to all of the terms and conditions of this Agreement.

 4.6 Lesser Title. If Lessor owns less than the entire
  and undivided estate in those lands described as the Property (including, without
  limitation, the minerals therein, thereon and thereunder), as warranted in Section
  4.2(a), then Lessee shall have the right to reduce all Payments to Lessor, so
  that such Payments are made to Lessor only in the proportion that Lessor's actual
  interests bears to the entire undivided interest. Lessee shall be entitled to
  offset all overpayments or monies erroneously paid to Lessor against any and
  all subsequent Payments to Lessor. 

 4.7 Third Party Claims. In the event that any person
  or entity (other than Lessor) makes a bona fide claim or asserts or appears
  to hold any right, title or interest whatsoever in or to the Property (including,
  without limitation, the minerals therein, thereon or thereunder) production
  therefrom or this Agreement, then the following shall apply: 

 (a) Lessee may deposit in a special escrow account any Payments
  otherwise due Lessor; 

 (b) the sum deposited shall remain in the special escrow account
  until the claim or controversy is resolved or until there has been a final determination
  by a court or administrative body of competent jurisdiction and all appeals
  have been exhausted or periods for appeal have expired; and 

 (c) Lessee shall have the right to deduct from any Payments
  to Lessor any amounts that Lessee is

 required to pay to such third parties or that Lessee reasonably
  elects to pay to such third parties in satisfaction of their claims. 

 V. Lessor's Use, Inspections, Records and Confidentiality

5.1 Lessor's Use and Inspections.

 (a) During the term of this Agreement Lessor shall have the
  right of entry and use of the Property for purposes that do not interfere with
  the current and anticipated activities of Lessee. Lessor acknowledges and agrees
  that Lessee's use of the Property shall prevail in the event of any conflict
  between the use or proposed use of the Property by Lessee and Lessor. Lessor
  agrees to assume all liability for, and to indemnify, protect and hold harmless
  Lessee from and against any and all damage, loss, liability, obligation, claim,
  demand, cost or expense (including attorneys' fees) which it incurs or to which
  it becomes subject as a result of or arising out of any such entry use or the
  presence or actions of Lessor (or its agents or invitees) upon the Property,
  including, without limitation, those relating to death, personal injury or property
  damage. 

 (b) Subject to compliance with applicable federal, state and
  local health and safety laws and regulations, and requirements of Lessee's health
  and safety program, Lessor shall have the right, upon not less than forty-eight
  (48) hours prior written notice to Lessee, at a mutually convenient time and
  during normal business hours, and at the sole risk of Lessor, to inspect the
  facilities, operations and mine workings of Lessee upon the Property. Lessee
  shall have the right to accompany Lessor upon any such inspection. Lessor agrees
  to assume all liability for, and to indemnify, protect and hold harmless Lessee
  from and against any and all damage, loss, liability, obligation, claim, demand,
  cost or expense (including attorneys' fees) which it incurs or to which it becomes
  subject as a result of or arising out of any such inspection or the presence
  or actions of Lessor (or its agents or invitees) upon the Property, including,
  without limitation, those relating to death, personal injury or property damage.

 5.2 Books and Records. Lessee shall keep accurate records
  of all minerals extracted and sold from the Property by Lessee, and of all calculations
  relative to Net Smelter Return payments hereunder for not less than two (2)
  calendar years. Such records may be inspected by Lessor or duly authorized representatives
  of Lessor once each calendar year at a mutually convenient time, during normal
  business hours, upon providing to Lessee not less than five (5) days prior written
  notice. Under no circumstances shall Lessee be obligated to provide access to
  Lessor to any confidential, interpretive or proprietary data, information or
  techniques. The indemnification and hold harmless provisions set forth in the
  last sentence of each of Section 5.1 and Section 5.4 shall also apply to any
  and all inspections of records pursuant to this Section 5.2. 

 5.3 Confidentiality. Lessor agrees that, during the
  term of this Agreement, Lessor shall treat all information related to or acquired
  under this Agreement, including, without limitation, any interpretive, proprietary
  or financial information, as confidential and shall not give, disclose or make
  available any such information to any third party or to the public without the
  prior written consent of Lessee, except if such disclosure is required by law
  or legal process, in which case Lessor shall make its best efforts to notify
  Lessee so that it may pursue a protective order. Lessor shall not make, disclose
  or issue any press release, statement or other disclosure, of any type whatsoever,
  pertaining to the Property, this Agreement or Lessee's operations hereunder,
  without the express prior written consent of Lessee as to both the form and
  content thereof, such consent not to be unreasonably withheld. 

 

5.4 Provision of Information. No later than thirty (30)
  days after termination, expiration or surrender of this Agreement, Lessee shall
  provide to Lessor copies of all information and data in its possession or under
  its control generated by and pertaining directly to Lessee's operations upon
  the Property pursuant to this Agreement, provided however, that Lessee shall
  be under no obligation whatsoever to provide Lessor with any proprietary, interpretive
  or financial information whatsoever. Lessee makes no representations or warranties
  whatsoever as to the truth, accuracy or completeness of any information that
  may be provided to Lessor pursuant to this Agreement, provided such information
  is given in good faith. Lessor shall rely upon such information at its sole
  risk and shall indemnify, protect and hold harmless Lessee from and against
  any and all damage, loss, liability, obligation, claim, demand, cost or expense
  (including attorneys' fees) which it incurs or to which it becomes subject as
  a result of or arising out of any reliance upon such information by Lessor or
  by any person or entity obtaining such information directly or indirectly by
  or through Lessor. 

VI. Termination

 6.1 By Lessor. At the election of Lessor, the failure
  of Lessee to perform any material obligation according to the terms or provisions
  of this Agreement, which substantially affects the rights of the Lessor under
  this Agreement shall constitute an event of default. Upon an event of default,
  Lessor shall give to Lessee written notice of default, specifying in reasonable
  detail the particular default or defaults relied on by Lessor. Lessee shall
  have thirty (30) days after receipt of Lessor's notice in which to contest,
  cure, or commence to cure (and diligently thereafter proceed to cure) the alleged
  default or defaults. If Lessee contests that default occurred, it shall so advise
  Lessor in writing within thirty (30) days after receipt of Lessor's notice.
  If, within fifteen (15) days after Lessor's receipt of Lessee's notice the Parties
  have not resolved the dispute by mutual agreement, the issue of default may
  be submitted to a court of competent jurisdiction, and Lessee shall not be deemed
  to be in default until the matter shall have been determined finally by the
  court and all appeals have been waived or exhausted and all periods for appeal
  have expired. If the judicial process results in a final finding of default,
  Lessee shall have thirty (30) days thereafter in which to cure or commence to
  cure (and diligently thereafter proceed to cure) the default. Upon Lessee's
  failure to cure or commence to cure the default within the time periods allowed
  above, Lessor may declare, by written notice to Lessee, a termination of this
  Agreement. Lessor's sole remedy shall be the recovery of actual compensatory
  damages, including attorney's fees. 

 6.2 By Lessee. Lessee shall have the right, at any
  time and from time to time, to surrender and terminate this Agreement, as to
  all or any part of the Property – subject to the limitations of "partial
  termination" below -- by providing to Lessor written notice of such surrender.
  The termination shall take effect upon the date notice is given. Upon such termination,
  Lessee's right, title, interest and obligations with respect to the Property
  surrendered shall terminate, except as provided in this Agreement to the contrary.
  All Payments which have accrued as of the date of termination shall be payable
  to Lessor by Lessee.

 (a) Partial termination. Lessee shall have the right to terminate
  the lease with respect to any full section of claims, and it may terminate the
  lease with respect to the half-section of claims in section 24. Such a termination
  shall terminate all of Lessee's obligations with respect to the block of claims
  being surrendered.. In the event of such a surrender of some but not all of
  the Property ("partial termination"), this Agreement shall remain in full force
  and effect with respect

 to that portion of the Property that is not surrendered. Surrender
  of any of the claims shall not affect the amount of Advance Royalty unless all
  projects are terminated, in which case Advance Royalties shall cease. 

 (b) Any return of claims must be made on or before June 1st.
  With respect to any claims not returned by this date, Lincoln shall be obligated
  to pay the BLM and County maintenance fees due within that year.

 6.3 Removal of Property. Lessee shall have the right,
  but not the obligation, for a period of one (1) year after expiration, surrender,
  or termination of this Agreement, to enter upon and remove from the Property
  any or all machinery, equipment, fixtures, buildings, improvements, concentrates,
  ore, tailings, residue and personal property of every kind and description erected
  or placed upon or extracted from the Property by Lessee. Any such property not
  removed by Lessee from the Property within the period allowed for removal shall
  become the exclusive property of Lessor and Lessee shall have no further right,
  title, obligation, or interest therein. 

VII. Force Majeure

 7.1 Force Majeure. The time for the exercise of rights
  or the performance of obligations hereunder, including, without limitation,
  the removal of property pursuant to Section 6.3, and the term of the Lease included
  herein, shall be extended for a period equal to the period or periods of Force
  Majeure. Lessee shall use reasonable diligence to remove Force Majeure. The
  term "Force Majeure" refers to any cause of any kind or nature whatsoever beyond
  Lessee's reasonable control that prevents, inhibits or delays Lessee's performance
  hereunder, including without limitation the following: 

 (a) law, ordinance, governmental regulations, restraint or
  court orders; 

 (b) action or inaction of civil or military authorities; 

 (c) inability to obtain or delay in obtaining any license,
  permit or other authorization that may be necessary to any of Lessee's activities
  hereunder; 

 (d) unusually severe weather; 

 (e) mining casualty, unavoidable mill shutdown, damage to
  or destruction of mine, plant or facility; 

 (f) fire, explosion, flood, storm or other acts of God; 

 (g) insurrection, war, riot, labor disputes; 

 (h) inability after diligent effort to obtain workers, fuel
  or materials; or 

 (i) delay in transportation. 

 VIII. Assignment 

 8.1 Assignment. Upon providing written notice to the
  other Party in accordance with Section 9.2,

 either Party may assign its respective rights and obligations
  under this Agreement. No such assignment shall in any way enlarge or diminish
  the rights or obligations of Lessee or Lessor hereunder and the assigning Party
  shall remain liable for performance of this Agreement in the event that the
  assignee defaults in its performance hereunder following a written demand and
  reasonable time to cure such default. A fully-executed Memorandum of Assignment
  in recordable form shall be provided to the non-assigning Party by the assigning
  Party. 

IX. Payments and Notices

 9.1 Payments. All payments provided for in this Agreement
  may be made by mailing or delivering company checks of the Lessee to Lessor
  at the address set forth in Section 9.2. Notwithstanding any provision of this
  Agreement to the contrary or any assignment pursuant to Section 8.1, under no
  circumstances shall Lessee be required to make any payment hereunder, except
  by mailing or delivering one check to a single address. Upon making such payment,
  Lessee shall be relieved of any and all responsibility for the division or distribution
  of the amount paid. Payments shall be deemed made upon delivery (in cases of
  personal delivery of checks) or upon mailing (in cases of mailing of checks
  by U.S. mail). 

 9.2 Notices. Any notice or other instrument required
  or desired to be given under this Agreement shall be effective only if in writing
  and served personally or by certified or registered mail (postage prepaid, return
  receipt requested) on the Parties at the following addresses: 

Lessor:

  Nevada North Resources (U.S.A.) Inc.

  501 South 1ST Avenue, Suite N 

  Arcadia, California 91006-3888 

  Attn: Mr. Larie K. Richardson 

  Telephone: 626-821-9630 

  Facsimile: 626-821-9635 

Lessee:

  Lincoln Gold Corp. 

  325 Tahoe Drive 

  Carson City, NV 

  89703 

  Attn: Mr. Jeffrey Wilson 

  Telephone: 775-885-730 

  Facsimile: 775-885-1720 

With copy to:

  Mr. Paul P.O. Box 93006 

  Caulfield Village, West Vancouver

  V7W 3G4 

  Telephone: 604-961-5252 

  Facsimile: 604-922-8280 

 Notices shall be deemed given upon delivery (in cases of personal
  service) or mailing (in cases of notice by U.S. mail) as provided in the preceding
  sentence. Upon giving notice to Lessor at

 the address shown above, Lessee shall be deemed to have given
  notice to all of the individuals and/or entities comprising Lessor, and Lessee
  shall be relieved of any and all responsibility for further distribution of
  the notice. Either Party may change its address by giving written notice of
  the change to the other Party in accordance with the provisions of this Section
  9.2. Any notice from Lessor hereunder shall be effective only if executed by
  each of the individuals and/or entities comprising Lessor. 

 X. Miscellaneous 

 10.1 Severability. Whenever possible, each provision
  of this Agreement shall be interpreted in such a manner as to be effective and
  valid under applicable law, and if any provision of this Agreement shall be
  or becomes prohibited or invalid in whole or in part for any reason whatsoever,
  that provision shall be ineffective only to the extent of such prohibition or
  invalidity without invalidating the remaining portion of that provision or the
  remaining provisions of this Agreement. 

 10.2 Binding Effect. Construction and Enforcement.
  Subject to the provisions of Section 8.1, all covenants, conditions and terms
  of this Agreement shall be deemed to run with the land and shall be binding
  upon and inure to the benefit of the Parties and their respective heirs, successors,
  personal representatives and assigns. The headings in this Agreement are for
  convenience only; they form no part of this Agreement and shall not affect its
  interpretation. 

 10.3 Sole Agreement. This Agreement sets forth the
  complete, entire and final agreement between the Parties with respect to the
  subject matter hereof and supersedes all previous agreements or understandings,
  whether written or otherwise. No modification or alteration of this Agreement
  shall be effective unless in writing and executed by the Parties. No waiver
  of any right hereunder shall be effective unless in writing and executed by
  the Party to be bound thereby. 

 10.4 Legal Advice. Lessor expressly acknowledges that
  it has sought (or has had the opportunity to seek) the advise of Lessor's own
  legal counsel to assist Lessor in negotiating and reviewing this Agreement.
  Lessor expressly acknowledges that Lessor is not relying on any oral or written
  statement (not expressly set forth in this Agreement) made by Lessee, its employees
  or agents regarding any matters pertaining to this Agreement. 

 10.5 Further Assurances. Upon request by Lessee, and
  without cost to Lessee, Lessor agrees to execute and/or furnish Lessee with
  such additional formal assurances or other written documents, in proper and
  recordable form, as may be reasonably necessary to carry out the intent, purposes
  and terms of this Agreement. 

 10.6 Counterparts. This Agreement may be executed in
  counterparts, all of which taken together shall constitute a single and complete
  contract. 

 10.7 Rights Not Suspended. No dispute between the Parties
  shall result in a suspension of this Agreement or the rights of the Parties
  hereunder. 

 10.8 Governing Law. This Agreement and any disputes
  arising hereunder shall be governed by and construed in accordance with the
  laws of the State of Nevada. 

 10.9 Joint and Several Liability. In the event that
  either Party is now or in the future comprised of more than one person or entity,
  then all the liabilities, obligations, duties, covenants, representations and
  warranties of such Party shall be the joint and several undertakings of each
  of such persons and entities. 

 10.10 Set Off. Lessee shall have the right to set off
  and deduct from any or all Payments to Lessor hereunder, any and all amounts
  owed to Lessee by Lessor.

 10.11 Denominations. All denominations in ths Agreement
  are understood to be in U.S. dollars.

 NEVADA NORTH RESOURCES (U.S.A.), INC. 

	By:	 	 
	 	 	 
	 	 	 
	Title:	 	 

LINCOLN GOLD CORP. 

	By:	 	 
	 	 	 
	 	 	 
	Title:	 	 

	 STATE OF CALIFORNIA  	) 	  
	  	) 	 
	 COUNTY OF LOS ANGELES  	) 	 

 This instrument was acknowledged before me on the day of ____________ , 2004,
  by __________________as ____________________ of of Nevada North Resources (U.S.A.),
  Inc. 

 

	 Notary Public  	  	  
	  	 	 
	  	 	 
	 (Seal)  	  	  
	  	 	 
	  	 	 
	 STATE OF  _________________________	) 	 
	  	) 	 
	 COUNTY OF  ________________________	)	 

 This instrument was acknowledged before me on the ___________________________
  day of ____________ , 2004, by ____________________as ________________ of
  Lincoln Gold Corp.

	 Notary Public  	  	  
	  	 	 
	  	 	 
	 (Seal)  	  	  

 EXHIBIT A 

  TO THAT MINING LEASE 

  BY AND BETWEEN 

  NEVADA NORTH RESOURCES (U.S.A.), INC. 

  AND 

  LINCOLN GOLD CORP. THE PROPERTY 

The following unpatented lode mining claims. 

Exhibit A 

	 Nevada North Resources (USA), Inc. Southwest
      Buffalo Valley Property  

	 BLM -

       NMC	 CLAIM NAME   # 	 COUNTY  	 TWP  	 N  	 RNG  	 E  	 SEC  	 COUNT  
	 740517  	 JAZZ   37  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740518  	 JAZZ   38  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740519  	 JAZZ   39  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740520  	 JAZZ   40  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740521  	 JAZZ   41  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740522  	 JAZZ   42  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740523  	 JAZZ   43  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740524  	 JAZZ   44  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740525  	 JAZZ   45  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740526  	 JAZZ   46  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740527  	 JAZZ   47  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740528  	 JAZZ   48  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740529  	 JAZZ   49  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740530  	 JAZZ   50  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740531  	 JAZZ   51  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740532  	 JAZZ   52  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740533  	 JAZZ   53  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	 740534  	 JAZZ   54  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  

	  	  	  	  	  	  	  	  	  	 18    

	 750705  	 CHU   1  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750706  	 CHU   2  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750707  	 CHU   3  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750708  	 CHU   4  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750709  	 CHU   5  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750710  	 CHU   6  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750711  	 CHU   7  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750712  	 CHU   8  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750713  	 CHU   9  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750714  	 CHU 10  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750715  	 CHU 11  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750716  	 CHU 12  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750717  	 CHU 13  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750718  	 CHU 14  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  
	 750719  	 CHU 15  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  

 

	 750720  	 CHU   16  	 PERSHING  	 32  	 N  	 41  	 E  	 24  	 1  

	  	  	  	  	  	  	  	  	  	 16  

	 752802  	 MB   37  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 8  	 1  
	 752803  	 MB   38  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752804  	 MB   39  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 8  	 1  
	 752805  	 MB   40  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752806  	 MB   41  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 8  	 1  
	 752807  	 MB   42  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752808  	 MB   43  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752809  	 MB   44  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752810  	 MB   45  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752811  	 MB   46  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752812  	 MB   47  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752813  	 MB   48  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752814  	 MB   49  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752815  	 MB   50  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752816  	 MB   51  	 HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752817  	 MB   52  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752818  	 MB   53  	HUMBOLDT &  

      LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752819  	 MB   54  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752820  	 MB   55  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752821  	 MB   56  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752822  	 MB   57  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752823  	 MB   58  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752824  	 MB   59  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752825  	 MB   60  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752826  	 MB   61  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752827  	 MB   62  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752828  	 MB   63  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752829  	 MB   64  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752830  	 MB   65  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752831  	 MB   66  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752832  	 MB   67  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752833  	 MB   68  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752834  	 MB   69  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752835  	 MB   70  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752836  	 MB   71  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  
	 752837  	 MB   72  	 LANDER  	 31  	 N  	 42  	 E  	 8  	 1  

	  	  	  	  	  	  	  	  	 36  

	 780924  	 LOU  1  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780925  	 LOU  2  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780926  	 LOU  3  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780927  	 LOU  4  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780928  	 LOU  5  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780929  	 LOU  6  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780930  	 LOU  7  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  

 

	 780931  	LOU   8  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780932  	 LOU   9  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780933  	 LOU 10  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780934  	 LOU 11  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780935  	 LOU 12  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780936  	 LOU 13  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780937  	 LOU 14  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780938  	 LOU 15  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780939  	 LOU 16  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780940  	 LOU 17  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780941  	 LOU 18  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780942  	 LOU 19  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780943  	 LOU 20  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780944  	 LOU 21  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780945  	 LOU 22  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780946  	 LOU 23  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780947  	 LOU 24  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780948  	 LOU 25  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780949  	 LOU 26  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780950  	 LOU 27  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780951  	 LOU 28  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780952  	 LOU 29  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780953  	 LOU 30  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780954  	 LOU 31  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780955  	 LOU 32  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780956  	 LOU 33  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780957  	 LOU 34  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780958  	 LOU 35  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780959  	 LOU 36  	 HUMBOLDT  	 31  	 N  	 42  	 E  	 6  	 1  
	 780960  	 LOU 37  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780961  	 LOU 38  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780962  	 LOU 39  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780963  	 LOU 40  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780964  	 LOU 41  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780965  	 LOU 42  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780966  	 LOU 43  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780967  	 LOU 44  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780968  	 LOU 45  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780969  	 LOU 46  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780970  	 LOU 47  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780971  	 LOU 48  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780972  	 LOU 49  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780973  	 LOU 50  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780974  	 LOU 51  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780975  	 LOU 52  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780976  	 LOU 53  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780977  	 LOU 54  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780978  	 LOU 55  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780979  	 LOU 56  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780980  	 LOU 57  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780981  	 LOU 58  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  

 

	 780982  	 LOU 59  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780983  	 LOU 60  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780984  	 LOU 61  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780985  	 LOU 62  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780986  	 LOU 63  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780987  	 LOU 64  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780988  	 LOU 65  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780989  	 LOU 66  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780990  	 LOU 67  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780991  	 LOU 68  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780992  	 LOU 69  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780993  	 LOU 70 	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780994  	 LOU 71  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  
	 780995  	 LOU 72  	 PERSHING  	 32  	 N  	 41  	 E  	 36  	 1  

	  	  	  	  	  	  	  	  	 72  

	 823852  	 BUF   1  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823853  	 BUF   2  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823854  	 BUF   3  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823855  	 BUF   4  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823856  	 BUF   5  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823857  	 BUF   6  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823858  	 BUF   7  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823859  	 BUF   8  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823860  	 BUF   9  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823861  	 BUF 10  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823862  	 BUF 11  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823863  	 BUF 12  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823864  	 BUF 13  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823865  	 BUF 14  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823866  	 BUF 15  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823867  	 BUF 16  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823868  	 BUF 17  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823869  	 BUF 18  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823870  	 BUF 19  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823871  	 BUF 20  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823872  	 BUF 21  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823873  	 BUF 22  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823874  	 BUF 23  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823875  	 BUF 24  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823876  	 BUF 25  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823877  	 BUF 26  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823878  	 BUF 27  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823879  	 BUF 28  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823880  	 BUF 29  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823881  	 BUF 30  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823882  	 BUF 31  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823883  	 BUF 32  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823884  	 BUF 33  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823885  	 BUF 34  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823886  	 BUF 35  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  
	 823887  	 BUF 36  	 PERSHING  	 31  	 N  	 41  	 E  	 12  	 1  

 

	 823888  	 BUF 37  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823889  	 BUF 38  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823890  	 BUF 39  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823891  	 BUF 40  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823892  	 BUF 41  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823893  	 BUF 42  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823894  	 BUF 43  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823895  	 BUF 44  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823896  	 BUF 45  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823897  	 BUF 46  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823898  	 BUF 47  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823899  	 BUF 48  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823900  	 BUF 49  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823901  	 BUF 50  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823902  	 BUF 51  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823903  	 BUF 52  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823904  	 BUF 53  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823905  	 BUF 54  	 PERSHING  	 32  	 N  	 41  	 E  	 14  	 1  
	 823906  	 BUF 55  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823907  	 BUF 56  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823908  	 BUF 57  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823909  	 BUF 58  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823910  	 BUF 59  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823911  	 BUF 60  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823912  	 BUF 61  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823913  	 BUF 62  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823914  	 BUF 63  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823915  	 BUF 64  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823916  	 BUF 65  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823917  	 BUF 66  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823918  	 BUF 67  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823919  	 BUF 68  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823920  	 BUF 69  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823921  	 BUF 70  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823922  	 BUF 71  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823923  	 BUF 72  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823924  	 BUF 73  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823925  	 BUF 74  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823926  	 BUF 75  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823927  	 BUF 76  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823928  	 BUF 77  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823929  	 BUF 78  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823930  	 BUF 79  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823931  	 BUF 80  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823932  	 BUF 81  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823933  	 BUF 82  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823934  	 BUF 83  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823935  	 BUF 84  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823936  	 BUF 85  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823937  	 BUF 86  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823938  	 BUF 87  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  

 

	 823939  	 BUF  88  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823940  	 BUF  89  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823941  	 BUF  90  	 PERSHING  	 32  	 N  	 41  	 E  	 26  	 1  
	 823942  	 BUF  91  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823943  	 BUF  92  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823944  	 BUF  93  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823945  	 BUF  94  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823946  	 BUF  95  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823947  	 BUF  96  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823948  	 BUF  97  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823949  	 BUF  98  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823950  	 BUF  99  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823951  	 BUF 100  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823952  	 BUF 101  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823952  	 BUF 102  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823954  	 BUF 103  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823955  	 BUF 104  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823956  	 BUF 105  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823957  	 BUF 106  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823958  	 BUF 107  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823959  	 BUF 108  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823960  	 BUF 109  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823961  	 BUF 110  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823962  	 BUF 111  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823963  	 BUF 112  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823964  	 BUF 113  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823965  	 BUF 114  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823966  	 BUF 115  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823967  	 BUF 116  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823968  	 BUF 117  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823969  	 BUF 118  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823970  	 BUF 119  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823971  	 BUF 120  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823972  	 BUF 121  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823973  	 BUF 122  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823974  	 BUF 123  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823975  	 BUF 124  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823976  	 BUF 125  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  
	 823977  	 BUF 126  	 PERSHING  	 31  	 N  	 41  	 E  	 2  	 1  

	  	  	  	  	  	  	  	  	 126  

 EXHIBIT B 

  TO THAT MINING LEASE BY AND BETWEEN 

  NEVADA NORTH RESOURCES (U.S.A.), INC. 

  AND

  LINCOLN GOLD CORP. 

  NET SMELTER RETURN 

1. Net Smelter Return

 The Net Smelter Return provided for in Section 2.2 of the
  Agreement and payable to Lessor shall be based upon: (a) the value of doré
  produced from ores and minerals mined from the Property, determined at the Property
  or at such other facility producing such doré, sold or deemed sold, determined
  by reference to published prices for refined gold and silver and other Precious
  Metals (as hereinafter defined), and (b) the value of all other Products produced
  from ores and minerals mined from the Property, determined at the Property or
  at such other facility producing such Product, sold or deemed sold, determined
  by reference to published prices for such "Other Products," all as hereinafter
  provided. It is acknowledged that it will be necessary to process, treat or
  upgrade Precious Metals or Other Products at a location or locations not on
  the Property before they are sold or deemed to be sold; and that to determine
  the value of such Precious Metals or Other Products of the Property or other
  facility producing doré or Other Products, all costs incurred or deemed
  to be incurred by Lincoln in paying the Net Smelter Return with respect to the
  transporting, processing, treatment or upgrading of the Precious Metals or Other
  Products after they have been processed shall be deducted from the proceeds
  received or deemed to be received by Lincoln as hereinafter set forth. 

 Lincoln shall pay to Lessor a Net Smelter Return as set forth
  in Section 2.2 of the Agreement as a percentage of the Net Value (as hereinafter
  defined) of Precious Metals or Other Products mined, removed and sold (or deemed
  sold as hereinafter described) from the Property. For purposes of this Agreement,
  the term "Precious Metals" shall mean gold, silver, platinum and palladium and
  "Other Products" shall mean all other metallic and non-metallic minerals of
  every kind except: (a) Precious Metals and (b) oil, gas, casinghead gas and
  associated liquid and gaseous hydrocarbon substances. The Net Smelter Return
  shall run with the land described as the Property. 

 The Net Smelter Return shall specifically apply to unpatented
  lode mining claims that are a part of the Property and to any relocation or
  amendment thereof, to any patent issued covering such land and to any other
  right, title or interest acquired by, for, or on behalf of Lincoln with respect
  to such land. The obligation to pay the Net Smelter Return shall accrue upon
  and not before: (a) the outturn of refined Precious Metals meeting the requirements
  of the specified published price and a credit for which is made to Lincoln's
  account (or to a third-party account for the benefit of Lincoln or (b) the sale
  of unrefined metals, doré, concentrates, ores or Other Products, as hereinafter
  provided, whichever is sooner. 

2. Net Value Definition

 As used herein, "Net Value" means the Gross Value of Precious
  Metals or Other Products, less all costs, charges and expenses paid or incurred
  by Lincoln after production of doré, or, in the case of Other Products,
  after production of concentrates, whether at the Property or elsewhere with
  respect to the transportation, processing, treatment or upgrading of the doré
  or concentrates

 such costs, charges and expenses to include, without limitation,
  the following:

 (a) charges for treatment in the smelting and refining processes
  (including handling, processing, interest and provisional settlement fees, sampling,
  assaying and representation costs, penalties and other processor deductions);

 (b) actual costs of transportation (including freight, insurance,
  security, transaction taxes, handling, port, demurrage, delay, and forwarding
  expenses incurred by reason of or in the course of such transportation) of doré
  or concentrates from the Property or other facility producing doré or
  concentrates to the place of additional treatment and to the place of sale;

 (c) actual sales and brokerage costs of Precious Metals or
  Other Products for which the Net Smelter Return is based on proceeds received
  by the Lessee as hereinafter provided in Section 3(d) below, and an allowance
  for reasonable sales and brokerage costs for refined Precious Metals subject
  to the Net Smelter Return hereinafter provided in Sections 3(a), (b) and (c)
  below;

 (d) sales, use, severance, net proceeds of mine, ad valorem
  taxes applicable under state, federal or local law and any other tax or governmental
  levy or fee relating to production of Precious Metals or Other Products from
  the Property or the value thereof (other than taxes based upon income); and

 (e) the costs of any applicable governmental and/or any and
  all underlying private royalties, whether now existing or hereafter arising.

 3. Gross Value Definition 

 "Gross Value" shall have the following meaning:

 (a) If Lincoln causes refined gold which meets or exceeds
  generally accepted commercial standards for the sale of refined gold (it being
  understood that the specifications for refined gold published by the London
  Metal Exchange presently meet such standards) to be produced from ores and minerals
  mined from the Property and, if Section 3(d) shall not be applicable, for purposes
  of determining the Net Smelter Return, the refined gold shall be deemed to have
  been sold at the Monthly Average Gold Price for the month in which it was refined,
  and the Gross Value shall be determined by multiplying Gold Production during
  the calendar month by the Monthly Average Gold Price. As used in this Agreement,
  "Gold Production" means the quantity of refined gold in troy ounces outturned
  to Lincoln's pool account (or to a third-party account for the benefit of Lincoln
  by an independent third-party refinery from ores and minerals mined from the
  Property on either a provisional or final settlement basis each calendar month.
  As used herein, "Monthly Average Gold Price" means the average London Bullion
  Market Association P.M. Gold Fix for a troy ounce of refined gold of a quality
  that is equal to or less than the quality of refined gold produced from the
  ores and minerals and meeting the standards applicable to the refined gold for
  which the Gross Value is to be determined hereunder, calculated by dividing
  the sum of all such prices reported for the month in question by the number
  of days for which such prices were reported. In the event that the London Bullion
  Market Association P.M. Gold Fix ceases or quotes prices for refined gold of
  a quality that is greater than the quality of refined gold for which the Gross
  Value is being determined hereunder, all such references shall be replaced with
  references to prices of gold of a comparable quality for immediate delivery
  in the most nearly comparable established market selected by Lincoln as such
  prices are published in "Metals Week" or a similar publication. 

 

(b) If Lincoln causes refined silver which meets or exceeds
  generally accepted commercial standards for the sale of refined silver (it being
  understood that the specifications for refined silver published by Handy &
  Harman presently meet such standards) to be produced from ores and minerals
  mined from the Property and, if Section 3(d) shall not be applicable, for purposes
  of determining the Net Smelter Return, the refined silver shall be deemed to
  have been sold at the Monthly Average Silver Price for the month in which it
  was refined, and the Gross Value shall be determined by multiplying Silver Production
  during the calendar month by the Monthly Average Silver Price. As used herein,
  "Silver Production" means the quantity of refined silver in troy ounces outturned
  to Lincoln's pool account (or to a third-party account for the benefit of Lincoln)
  by an independent third-party refinery from ores and minerals mined from the
  Property on either a provisional or final settlement basis each calendar month.
  As used herein, "Monthly Average Silver Price" means the average New York Silver
  Price as published daily by Handy & Harman for a troy ounce of refined silver
  of a quality that is equal to or less than the quality of refined silver produced
  from the ores and minerals meeting the standards applicable to the refined silver
  for which the Gross Value is to be determined hereunder, calculated by dividing
  the sum of all such prices reported for the calendar month in question by the
  number of days for which such prices were reported. In the event that the Handy
  & Harman quotation ceases or quotes prices for refined silver of a quality
  that is greater than the quality of refined silver for which the Gross Value
  is being determined hereunder, all such references shall be replaced with references
  to prices of silver of a comparable quality for immediate delivery in the most
  nearly comparable established market selected by Lincoln as published in "Metals
  Week" or a similar publication. 

 (c) If Lincoln causes refined or processed Precious Metals,
  other than refined gold and refined silver, which meets or exceeds commercial
  standards for the sale of such Precious Metals, or refined or processed Other
  Products, to be produced from ores and minerals mined from the Property, and
  if Section 3(d) shall not be applicable, for purposes of determining the Gross
  Value of such Precious Metals (other than refined gold and refined silver) or
  refined or processed Other Products hereunder the same shall be deemed to have
  been sold at the Monthly Average Price for the same for the month in which it
  was refined, and the Gross Value shall be determined by multiplying Production
  of the same during the calendar month by the Monthly Average Price for the same.
  As used herein, Production means the quantity of such Precious Metals (other
  than refined gold and refined silver) or refined or processed Other Products
  in standard commercial units outturned to Lincoln's pool account (or to a third-party
  account for the benefit of Lincoln by an independent third-party refinery from
  ores and minerals mined from the Property on either a provisional or final settlement
  basis each calendar month. As used herein, "Monthly Average Metal Price" means
  the price for each such standard commercial unit of such Precious Metals (other
  than refined gold and refined silver) or refined or processed Other Products
  for immediate delivery in an established market selected by Lincoln as such
  price is published in "Metals Week" or a similar publication.

 (d) In the event Lincoln sells raw ores of Precious Metals
  or Other Products or concentrates or doré produced from such ores and
  minerals mined from the Property, then the Gross Value shall be calculated as
  set forth in Section 3(a), (b) and (c), except that Gold Production, Silver
  Production or other Production shall, in each case, be equal to the amount of
  gold, silver, other Precious Metals and Other Products contained in such raw
  ores, concentrates or doré sold in the specified month multiplied by
  (i) the recovery rate for such gold, silver, other Precious Metals

 and Other Products contractually determined between Lincoln
  and a third party processor or (ii) if there is not a specifically contracted
  recovery rate, then by an assumed recovery rate equal to the average actual
  recovery rate experienced by Lincoln from the beneficiation of such ores and
  minerals for such gold, silver, other Precious Metals and Other Products for
  the latest calendar quarter ended prior to such month. In the event that such
  ores and minerals have not been so beneficiated by Lincoln during any such calendar
  quarter, the recovery rate shall be the actual recovery rate experienced by
  the purchaser of such ores and minerals determined in good faith by Lincoln.

 (e) Where outturn of Precious Metals or Other Products is
  made by an independent third-party refinery on a provisional basis, the Gross
  Value shall be based upon the amount of such provisional settlement, but shall
  be adjusted in subsequent statements to account for the amount of such Precious
  Metals or Other Products established by final settlement by such refinery. 

4. Forward Sales

 Lessor acknowledges that Lincoln shall have the right to market
  and sell or refrain from selling ores and minerals mined from the Property and
  Precious Metals and Other Products produced from ores and minerals mined from
  the Property in any manner it may elect. Accordingly, Gross Value shall be determined
  as provided in Section 3 above irrespective of any actual selling arrangements
  entered into by Lincoln, specifically including, but not limited to, forward
  sales, futures trading or commodity options trading, and any other price hedging,
  price protection and speculative arrangements which may involve the possible
  delivery of ores and minerals and Precious Metals or Other Products produced
  from ores and minerals mined from the Property. 

5. Processing by Lincoln

 Lincoln may, but is not obligated to, beneficiate, mill, sort,
  concentrate, refine, smelt or otherwise process or upgrade the ores and minerals
  mined from the Property, Precious Metals ores and concentrates or Other Products
  ores and concentrates produced from ores and minerals mined from the Property
  prior to sale, transfer or conveyance to any purchaser, user, or consumer. Lincoln
  shall not be liable for any mineral values, including, without limitation, any
  ores and minerals, Precious Metals or Other Products, lost in any manner or
  at any time or times except and only to the extent any such losses resulted
  exclusively from the bad faith or gross negligence of Lincoln. 

6. Sales to Affiliated Party

 Lincoln shall be permitted to sell ores and minerals mined
  from the Property in the form of raw ore, doré, or concentrates to an
  Affiliate, provided that such sales shall be considered, solely for the purpose
  of computing Net Value, to have been sold at prices and on terms no less favorable
  than those which would be extended to a non-affiliated third party under similar
  circumstances. Nothing contained herein shall preclude or restrain Lincoln in
  any way or at any time or times from selling or otherwise disposing of ores
  and minerals, Precious Metals or Other Products mined from the Property to any
  third party or any Affiliates. 

7. Measurement of Products

 All ores and minerals mined from the Property for which a
  Net Smelter Returns Royalty is

 payable hereunder shall be weighed or measured and sampled
  in accordance with sound mining and metallurgical practices, after which Lincoln
  may mix or commingle such ores and minerals, Precious Metals or Other Products
  mined from the Property with ores or other materials from properties other than
  the Property. 

 8. Calculation of Net Value 

 Net Value shall be determined on a calendar month basis (except
  the first month, which shall be calculated based upon Gross Value and costs,
  charges and expenses incurred with respect to the month in which the Agreement
  date occurs, pro-rated based upon the number of days remaining in such month
  as of the Agreement date). Payments of Net Smelter Return shall be paid on the
  tenth business day following the last day of the calendar quarter in which the
  same accrued. At the time of payment of Net Smelter Return, Lincoln shall deliver
  to Lessor a statement showing, in reasonable detail, the quantities and grades
  of the refined Precious Metals, doré, concentrates, Other Products or
  ores and minerals produced and sold or deemed to be sold by Lincoln in the preceding
  quarter; the Average Monthly Price determined, as herein provided, for refined
  Precious Metals and Other Products on which the Net Smelter Return is due; costs
  and other deductions; and other pertinent information, in reasonable detail,
  to explain the calculation of Net Smelter Return payment with respect to each
  month in such quarter. Payment to Lessor shall be made in cash or by check,
  or upon 48 hours prior written notice from Lessor, by wire transfer to the account
  specified by Lessor in such notice. In the event a Net Smelter Return payment
  is not due for any quarter, Lincoln shall not be required to provide Lessor
  with any statement hereunder. 

 Such quarterly statement shall also list the quantity and
  quality of any Precious Metals doré in inventory, if any, for more than
  ninety (90) days. No Net Smelter Return shall be due with respect to ores and
  minerals, Precious Metals or Other Products mined from the Property or stockpiles
  of the same unless and until the same are actually sold or deemed sold as expressly
  set for the above. 

 9. Sales 

 All Net Smelter Return payments shall be considered final
  and in full satisfaction of all obligations of Lincoln with respect thereto,
  unless Lessor gives Lincoln written notice describing and setting forth a specific
  objection to the calculation thereof within ninety (90) days after receipt by
  Lessor of the quarterly statement herein provided for.

10. Lincoln's Duty to Inform

 Lincoln shall be under no obligation to provide Lessor with
  any ore reserve calculations (including, but not limited to, any information
  that would be required to be included in documents filed with the Securities
  and Exchange Commission or such other regulatory body regarding ore reserve
  calculations), mine plans, forecasts or other information relating to its operations
  other than as expressly set forth in this Agreement. 

11. Assignment of Net Smelter Return

 Subject to the provisions of this Agreement Lessor may transfer,
  pledge, mortgage, charge or otherwise encumber all or any part of its right,
  title and interest in and to the Net Smelter Return;

 provided, however, that Lincoln shall be under no obligation
  to make its payments hereunder to any such assignee, transferee, pledgee or
  other third party until Lincoln' s receipt of written notice concerning the
  transfer, pledge, mortgage, charge or other encumbrance and provided further
  that in no event shall Lincoln be obligated to deliver payment or notices pursuant
  to this Agreement to more than one entity or location. 

12. No Duty to Mine

 Lincoln shall have the sole and exclusive right to determine
  the timing and the manner of any Mining or production from the Property and
  all related exploration, development and mining activities. Nothing in this
  Exhibit or the remainder of this Agreement shall require Lincoln to explore,
  develop, mine or continue operations on the Property or to process ores and
  minerals from the Property. The mining of ores from any properties not subject
  to the Net Smelter Return to the exclusion of ores and minerals that are subject
  to the Net Smelter Return shall not violate any provision of this Exhibit or
  the remainder of this Agreement and there shall not be any express or implied
  covenant, duty or obligation of Lincoln to undertake any exploration, development
  or mining.EXHIBIT 10.1
                                                                    ------------

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of April 26, 2004 by
and between Able Laboratories, Inc., a Delaware corporation (the "Corporation"),
and Garth Boehm the V.P. and Chief Scientific Officer ("CSO"). The Agreement
will be effective on the day the employee begins employment (the "Effective
Date").

                              W I T N E S S E T H:

     WHEREAS, the Corporation and the V.P. and Chief Scientific Officer desire
to set forth the terms and conditions on which, from and after the Effective
Date, (i) the Corporation shall employ the CSO, (ii) the CSO shall render
services to the Corporation, and (iii) the Corporation shall compensate the CSO
for such services;

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises
and covenants herein contained, the parties agree as follows:

     1. EMPLOYMENT; DUTIES

          (a) The Corporation engages and employs the CSO, and the CSO hereby
accepts engagement and employment, as CSO of the Corporation. In this capacity,
the CSO shall be directly responsible for the all R and D activities including
product formulations, methods development and the methods validation group. In
addition, the CSO shall also direct all the activities related to the Company's
505(b)-2 product portfolio and future Paragraph IV filing strategy including
coordinating internal and external resources working on the project. The CSO
shall perform all such tasks to meet the objectives set by the President.

          (b) The CSO shall perform his duties hereunder from the Corporation's
executive office in the New Jersey area and report to the President of Able
Laboratories, Inc.

     2. TERM

     The CSO's employment hereunder shall be for an initial period of four (4)
years commencing on the Effective Date and continuing through the fourth
anniversary thereof, unless sooner terminated as hereinafter provided (the
"Initial Term"). Thereafter, the term and each extension will be automatically
extended for successive one-year periods, unless the Corporation gives written
notice of termination to the other party at least 60 days prior to the
expiration of the current term.

     3. COMPENSATION

          (a) Subject to the terms and conditions of this Agreement, as
compensation for the performance of his duties on behalf of the Corporation, the
CSO shall be compensated as follows:

               (i) The Corporation shall pay the CSO a base salary ("Base
Compensation") at the rate of $225,000 per annum payable no less frequently than
monthly in arrears on or before the first day

                                        1
<PAGE>

of each succeeding month and a bonus as described below in Section 5.

               (ii) Upon the Effective Date the CSO shall receive from the
Corporation an incentive option to purchase 100,000 shares of common stock of
the Corporation (the "Option Shares") at an exercise price equal to the fair
market price (closing price as quoted on the Nasdaq) per share. Such option
shall have a term of ten years and vest over four (4) years subject to the terms
contained in the Corporation's stock option plan and the stock option agreement
attached as Exhibit A hereto.

               (iii) The Corporation shall withhold all applicable federal,
state and local taxes, social security and workers' compensation contributions
and such other amounts as may be required by law or agreed upon by the parties
with respect to the compensation payable to the V.P. and CSO pursuant to this
paragraph 3(a).

          (b) The Corporation shall reimburse the V.P. and CSO for all
reasonable expenses incurred by the CSO in furtherance of the business and
affairs of the Corporation, including reasonable travel and entertainment, cell
phone and other incidental expenses and all such other expenses against receipt
by the Corporation of appropriate vouchers or other proof of the CSO's
expenditures and otherwise in accordance with such Expense Reimbursement Policy
as may from time to time be adopted by the Board of Directors of the
Corporation. The CSO shall also receive $1,800 per month as car allowance.

          (c) The CSO shall be entitled to accrue paid vacation at the rate of
twenty (20) business days per annum, plus all the appropriate Corporation
holidays.

     4. REPRESENTATIONS AND WARRANTIES BY THE VICE PRESIDENT AND CORPORATION

            The CSO hereby represents and warrants to the Corporation as
follows:

          (a) Neither the execution and delivery of this Agreement nor the
performance by the CSO of his duties and other obligations hereunder violate or
will violate any statute, law, determination or award, or conflict with or
constitute a default under (whether immediately, upon the giving of notice or
lapse of time or both) any prior employment agreement, contract, or other
instrument to which the CSO is a party or by which he is bound.

          (b) The CSO has the full right, power and legal capacity to enter and
deliver this Agreement and to perform his duties and other obligations
hereunder. This Agreement constitutes the legal, valid and binding obligation of
the CSO enforceable against him in accordance with its terms. No approvals or
consents of any persons or entities are required for the CSO to execute and
deliver this Agreement or perform his duties and other obligations hereunder.

     The Corporation hereby represents and warrants to the CSO as follows:

          (a) The Corporation is duly organized, validly existing and in good
standing under the laws of the State of Delaware, with all requisite corporate
power and authority to own its properties and conduct its business in the manner
presently contemplated.

          (b) The Corporation has full power and authority to enter into this
Agreement and to incur and perform its obligations hereunder.

                                        2
<PAGE>

          (c) The execution, delivery and performance by the Corporation of this
Agreement does not conflict with or result in a breach or violation of or
constitute a default under (whether immediately, upon the giving of notice or
lapse of time or both) the certificate of incorporation or by-laws of the
Corporation, or any agreement or instrument to which the Corporation is a party
or by which the Corporation of any of its properties may be bound or affected.

     5. BONUS

          (a) For the year 2004, the CSO shall be eligible for an annual bonus
of up to 35% of the base annual salary for meeting targets and objectives set in
consultation with the President and approved by the Compensation Committee of
the Board of Directors. First year targets and objectives will be developed one
month after initiating employment.

          (c) In the subsequent years, the bonus shall be negotiated at the
beginning of the year based on the projections prepared by the by the CSO in
conjunction with the President and other senior members of the management team.
Subsequent year bonus shall not be less than at least 15% of the base annual
salary provided the objectives are met and the company reports positive net
earnings for the year.

     6. INVENTIONS ASSIGNMENTS; CONFIDENTIAL INFORMATION

     All inventions, improvements, ideas, names, patents, trademarks,
copyrights, and innovations (including all data and records pertaining thereto),
whether or not reduced to writing, which the CSO may originate, make or conceive
during the term of his employment and for a period of three (3) months
thereafter, either alone or with others and whether or not during working hours
or by the use of facilities of the Corporation, and which relate to or are or
may likely be useful in connection with the business or contemplated business of
the Corporation ("Inventions") shall be the exclusive property of the
Corporation. The CSO hereby assigns, and, to the extent any such assignment
cannot be made at the present time, agrees to assign, to the Company all his
right, title and interest throughout the world in and to all Inventions, and to
anything tangible which evidences, incorporates, constitutes, represents or
records any such Inventions. The CSO agrees that all such Inventions shall
constitute works made for hire under the copyright laws of the United States and
hereby assigns and, to the extent any such assignment cannot be made at present,
hereby agrees to assign to the Company all copyrights, patents and other
proprietary rights the CSO may have in any of such Inventions, together with the
right to file for and/or own wholly without restriction United States and
foreign patents, trademark registration and copyright registration and any
patent, or trademark or copyright registration issuing thereon.

     The CSO agrees that during the course of his employment or at any time
after termination, he will not disclose or make accessible to any other person,
the Corporation's products, services and technology, both current and under
development, promotion and marketing programs, lists, trade secrets and other
confidential and proprietary business information of the Corporation or any of
its clients. The CSO agrees: (i) not to use any such information for himself or
others; and (ii) not to take any such material or reproductions thereof from the
Corporation's facilities at any time during his employment by the Corporation,
except as required in the CSO's duties to the Corporation. The CSO agrees
immediately to return all such material and reproductions thereof in his
possession to the Corporation upon request and in any event upon termination of
employment. The foregoing notwithstanding, the parties acknowledge and agree
that the confidential and proprietary information of the Corporation and/or its

                                        3
<PAGE>

clients shall not include the following: (a) information already in the public
domain or hereafter disclosed to the public through no fault of the CSO;
including but not limited to knowledge of (i) the business of other companies in
the field, (ii) general business methods and structures useful in operating
pharmaceutical marketing companies, (iii) the status of patents and other
technology in the field other than those of the Corporation; (b) general
knowledge about the field of pharmaceutical marketing obtained through the CSO's
academic experience, or (c) specific ideas and projections of the field of
evolution of pharmaceutical marketing.

     Except with prior written authorization by the Corporation, the CSO agrees
not to disclose or publish any of the confidential, technical or business
information or material of the Corporation, its clients or any other party to
whom the Corporation owes an obligation of confidence, at any time during or
after his employment with the Corporation.

     7. TERMINATION

          (a) Subject to Paragraph 2 above, the CSO's employment hereunder shall
begin on the Effective Date and shall continue thereafter until terminated upon
the first to occur of the following events:

               (i) the death of the CSO or the Disability of the CSO, as defined
below; or

               (ii) termination by the Board of Directors of the Corporation,
either with or without Cause (as defined below); or

               (iii) voluntary resignation by the CSO after providing the
Corporation with at least thirty days prior written notice.

          (b) Upon termination pursuant to clause (a)(i) above, at least 25,000
Option Shares shall vest. "Disability" of the CSO shall be deemed to have
occurred if the CSO, by virtue of any injury, sickness, or physical condition is
unable to perform substantially and continuously the duties assigned to him
hereunder for more than sixty (60) consecutive or non-consecutive days out of
any consecutive twelve (12) month period, exclusive of any accrued vacation.

          (c) Upon termination pursuant to clause (a)(ii) for any reason other
than for Cause (as defined below), (i) the Corporation shall offer the CSO
twelve (12) months base salary as severance.

          (d) Upon termination by the Corporation during the Initial or any
renewal Term pursuant to clause (a)(ii) with Cause or upon the voluntary
resignation of the CSO pursuant to clause (a)(iii), such termination shall be
effective immediately or on the effective date of the CSO's notice, as the case
may be, and the CSO will be paid a portion of the Base Compensation due through
the Termination Date, which has not been paid to him.

          (e) For purposes of this Agreement, "Cause" shall mean the unlawful
conduct of the CSO constituting a felony under the law or dishonest conduct of
the CSO involving moral turpitude and causing material harm to the Corporation,
willful, reckless or grossly negligent misconduct or insubordination which is or
is reasonably likely to be injurious to the Corporation, monetarily or
otherwise, continuing after written notice thereof by the Board of Directors or
a material breach of any of the CSO's obligations (not occasioned by the CSO's
death or Disability) hereunder after written notice

                                        4
<PAGE>

by the Corporation and failure to cure within 30 days of such notice.

     8. NOTICES

     Any notice or other communication under this Agreement shall be in writing
and shall be deemed to have been given upon receipt by the other party.

     9. SEVERABILITY OF PROVISIONS

     If any provision of this Agreement shall be declared by a court of
competent jurisdiction to be invalid, illegal or incapable of being enforced in
whole or in part, the remaining conditions and provisions or portions thereof
shall nevertheless remain in full force and effect and enforceable to the extent
they are valid, legal and enforceable, and no provision shall be deemed
dependent upon any other covenant or provision unless so expressed herein.

     10. ENTIRE AGREEMENT; MODIFICATION

     This Agreement contains the entire agreement of the parties relating to the
subject matter hereof, and the parties hereto have made no agreements,
representations or warranties relating to the subject matter of this Agreement,
which are not set forth herein. No modification of this Agreement shall be valid
unless made in writing and signed by the parties hereto.

     11. BINDING EFFECT

     The rights, benefits, duties and obligations under this Agreement shall
inure to, and be binding upon, the Corporation, its successors and assigns, and
upon the V.P. and Chief Scientific Officer and his legal representatives. This
Agreement constitutes a personal service agreement, and the performance of the
CSO's obligations hereunder may not be transferred or assigned by the CSO.

     12. NON-WAIVER

     The failure of either party to insist upon the strict performance of any of
the terms, conditions and provisions of this Agreement shall not be construed as
a waiver or relinquishment of future compliance therewith, and said terms,
conditions and provisions shall remain in full force and effect. No waiver of
any term or condition of this Agreement on the part of either party shall be
effective for any purpose whatsoever unless such waiver is in writing and signed
by such party.

     13. GOVERNING LAW; WAIVER OF JURY TRIAL

     This Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New Jersey without regard to
principles of conflict of laws. The parties irrevocably waive all right to a
trial by jury in any suit, action, or other proceeding hereafter instituted by
or against such party in respect of its obligations hereunder or the
transactions contemplated hereby.

     14. ATTORNEYS FEES, COSTS.

     In the event a party breaches this Agreement, the breaching party shall pay
all costs and attorneys' fees incurred by the other party in connection with
such breach, whether or not any litigation is commenced.

                                        5
<PAGE>

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

                                       ABLE LABORATORIES, INC.

                                       By: /s/Dhananjay G. Wadekar
                                           -----------------------------
                                       Dhananjay G. Wadekar, President and
                                       Chief Executive Officer

    Agreed and Accepted

    /s/ Garth Boehm
    ----------------------------
    Dr. Garth Boehm, Ph.D.

                                        6

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