Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Garuda Capital Corp. Exhibit 10.1

OPTION AGREEMENT

THIS AGREEMENT is dated for reference this 7th
day of July, 2006.

BETWEEN:

Xemplar Energy Corp.
having a business office located at 3465 Commercial Street, Vancouver,
British Columbia, V5N 4E8,

(the "Optionor")

OF THE FIRST PART

AND:

Garuda Ventures Canada Inc.
having a business office located at #502 – 1978 Vine Street, Vancouver,
BC., V6K 4S1,

(“Garuda”)

OF THE SECOND PART

WHEREAS:

A. The Optionor wishes to grant Garuda an option to earn and
acquire from the Optionor an undivided 70% interest in the Optionor’s interest
in certain mining claims known collectively as the Corhill Property located on
NTS 86-K-14 and 86-K-15 and straddling the Northwest Territories / Nunavut
Territory border. The property is approximately 312 miles NNW of Yellowknife and
90 miles SW of Kugluktuk (Coppermine) more particularly described in Schedule
"B" attached hereto (including, without limitation, all prospecting, research,
exploration, exploitation, operating and mining permits, licenses and leases
associated therewith), and subject to a 2% net smelter return described in
Schedule “A” hereto (the “Net Smelter Return), (collectively and hereinafter
referred to as the "Property").

NOW THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the sum of one dollar ($1.00) paid by Garuda to the Optionor
(the receipt and sufficiency of which is acknowledged by the Optionor) and the
mutual agreements and covenants hereinafter set forth, the parties hereto agree
as follows:

INTERPRETATION

	1. 	
      This Agreement supersedes all prior understandings and
      agreements between the parties hereto, whether verbal or
written.

	 	 	 
	1.1 	
      In this Agreement, the following words, phrases and
      expressions shall have the following meaning, except that if an identical
      word, phrase or expression is defined in this Agreement, the definition of
      that word, phrase or expression shall be restricted to this Agreement, as
      the case may be, in which it appears:

	 	 	 
		(a) 	
      "Affiliate" shall mean a corporation, which is
      affiliated with another corporation, and for the purposes hereof,
      corporations are affiliated if one of them is the subsidiary of the other,
      or both are subsidiaries of the same corporation, or each of them is
      controlled by the same person. A corporation is a subsidiary of another
      corporation if it is controlled by (i) that other corporation, (ii) that
      other corporation and one or more corporations, each of which is
      controlled by that other

	 		
      corporation, or (iii) 2 or more corporations, each of
      which is controlled by that other corporation, or (iv) it is a subsidiary
      of a subsidiary of that other corporation. A corporation is controlled by
      a person if shares of the corporation carrying more than 50% of the votes
      for the election of directors are held, other than by way of security
      only, by or for the benefit of that person, and the votes carried by the
      shares are sufficient, if exercised, to elect a majority of the directors
      of the corporation

	 	 	 
	 	(b) 	
      "Execution Date" shall mean the date that this
      Agreement is executed by all parties hereto;

	 	 	 
	 	(c) 	
      "Expenditures" shall mean all expenses and
      obligations of whatever kind spent or incurred directly or indirectly by
      Garuda from the date hereof, in connection with the exploration and
      development of the Property, including, without limiting the generality of
      the foregoing, moneys expended in maintaining the Property in good
      standing; in applying for and securing all permits and rights with respect
      thereto and with respect to undertaking work thereon; moneys expended
      toward all taxes, fees and rentals; moneys expended in doing and filing
      assessment work; expenses paid for or incurred in connection with any
      program of surface or underground prospecting, exploring, geophysical,
      geochemical and geological surveying, diamond drilling and drifting,
      raising and other underground work, assaying and metallurgical testing and
      engineering, environmental studies, data preparation and analysis,
      submissions to government agencies; in acquiring facilities; in paying the
      fees, wages, salaries, travelling expenses, and fringe benefits (whether
      or not required by law) of all persons engaged in work with respect to the
      Property; in paying for the food, lodging and other reasonable needs of
      such persons; and including a charge in lieu of overhead, management and
      other unallocatable costs equal to fifteen (15%) percent of all such
      expenditures;

	 	 	 
	 	(d) 	
      "Interest" shall mean an undivided seventy percent
      (70%) earned interest in the Property;

	 	 	 
	 	(e) 	
      “Joint Operating Agreement” shall mean the Form 5
      of the Rocky Mountain Mineral Law Foundation as amended from time to time,
      except for those provisions set out under the heading 'Formation of Joint
      Venture’;

	 	 	 
	 	(f) 	
      “Joint Venture" shall mean the joint venture to be
      formed upon the Participation Date between Garuda and the Optionor with
      regard to the Property;

	 	 	 
	 	(g) 	
      "Net Smelter Return" shall mean a 2% royalty in
      favour of Kalac Holdings Ltd., Trevor Teed and Lane Dewar as
      calculated and paid in accordance with Schedule "A";

	 	 	 
	 	(h) 	
      "Option" shall mean the sole and exclusive right
      and option of Garuda to earn the Interest;

	 	 	 
	 	(i) 	
      "Option Price" shall mean the completion of those
      obligations in accordance with the terms hereof in order to exercise the
      Option in respect of the Property.

	 	 	 
	 	(j) 	
      "Option Period" shall mean the period during which
      the Option may be exercised, and will commence on upon the Execution
      Date;

	 	 	 
	 	(k) 	
      "Participant" shall mean each of Garuda and the
      Optionor;

	 	 	 
	 	(l) 	
      "Participation Date" shall mean the date of
      exercise of the Option by Garuda in respect of the
  Property;

	 	(m) 	
      "Property" shall mean certain mining claims known
      collectively as the Corhill Property located on NTS 86-K-14 and 86-K-15
      and straddling the Northwest Territories / Nunavut Territory border,
      approximately 312 miles NNW of Yellowknife and 90 miles SW of Kugluktuk
      (Coppermine) more particularly described in Schedule "B" attached
      hereto;

	 	 	 
	 	(n) 	
      "Shares" shall mean 2,000,000 common shares of
      Garuda Capital Corp., the wholly owning parent corporation of
    Garuda;

	 	 	 
	 	(o) 	
      "this Agreement" refers to and collectively
      includes this Agreement, the recitals hereto and every Schedule attached
      to this Agreement;

OPTION

	2. 	
      Subject to the 2% Net Smelter Return the Optionor grants
      to Garuda the sole and exclusive option (the "Option") free and clear of
      all liens, charges, encumbrances, claims, rights or interest of any person
      to earn an undivided seventy percent (70%) earned interest in the Property
      by making the following payments and incurring exploration expenditures
      (collectively, the “Option Price”) set out at sub-paragraphs 2(a), 2(b)
      and 2(c) below.

	 	 	 	 
		
      The Option is an option only and nothing in this
      Agreement shall obligate Garuda to pay any amount or incur any
      expenditures except for the payments under sub-paragraphs 2(b) and
      2(c).

	 	 	 	 
		(a) 	
      Garuda will arrange for the issuance to the Optionor of
      the Shares within 5 business days of the Execution Date;

	 	 	 	 
		(b) 	
      Garuda will make a payment of $50,000 to the Optionor
      within 5 business days of the Execution Date; and,

	 	 	 	 
		(c) 	
      Garuda will incur no less than $1,500,000 of exploration
      expenditures on the Property, as follows:

	 	 	 	 
			(i) 	
      $300,000 on or before 180 days from the Execution
      Date;

	 	 	 	 
			(ii) 	
      an additional $500,000 on or before the second
      anniversary of the Execution Date; and

	 	 	 	 
			(iii) 	
      $700,000 on or before the third anniversary of the
      Execution Date.

	 	 	 	 
	3 	
      The Shares will be “restricted shares” pursuant to Rule
      144 of the US Securities Act of 1933 (the "US Securities Act"). Garuda
      will make its best efforts to register the shares pursuant to a
      registration statement on or before the first anniversary of the Execution
      Date. If Garuda has failed to register the Shares on or before the first
      anniversary of the Execution Date, the Optionor shall have the option of
      returning the Shares to Garuda for cancellation, in which case Garuda
      shall make a payment of US$200,000.00 to the Optionor within two weeks of
      the delivery of written notice by the Optionor to return the Shares to the
      Optionee for cancellation, failing which this Agreement and the Option
      shall each terminate automatically without further formality and have no
      force or effect.

	 	 	 	 
	4. 	
      Garuda:

	 	 	 	 
		(a) 	
      may exercise the Option in respect of the Property by
      making the payments and incurring

	 		
      the exploration expenditures that are the Option Price as
      set out and defined in section 2 hereof and incurring the minimum
      amount of Expenditures to maintain the Property in good standing with
      applicable mining authorities;

	 	 	 	 
	 	(b) 	
      may accelerate the Expenditures, and any Expenditures
      made towards the Option Price that are over and above that required to be
      made during the relevant time period shall be carried forward and applied
      against the Option Price payable in the subsequent period(s);

	 	 	 	 
	 	(c) 	
      at all times during the term of this Agreement, shall
      have the right to abandon the Property. Further:

	 	 	 	 
	 		(i) 	
      to abandon the Property it shall give written notice to
      the Optionor and give back to the Optionor or whomever it appoints access
      to the Property;

	 	 	 	 
	 		(ii) 	
      a notice of abandonment of the Option to acquire an
      interest in the Property must be given with at least 60 days prior notice
      to any of the anniversaries of the Execution Date, in which case, the
      Expenditures obligation for said year will not be enforceable. However, if
      the notice of abandonment of the Option to acquire the Property is not
      given within the abovementioned 60-day period, the Expenditures obligation
      for that year shall be enforceable against Garuda;

	 	 	 	 
	 		(iii) 	
      in case that the amount of Expenditures is not sufficient
      to cover the Expenditures for a specific year and the notice of
      abandonment is not given within the aforementioned 60 day period, the
      balance shall be paid in cash to the Optionor; and

	 	 	 	 
	 		(iv) 	
      all payments made to the Optionor shall be non-refundable
      to Garuda.

Obligations of Garuda During the Option Period

	5. 	
      During the currency of the Option:

	 	 	 
		(a) 	
      Garuda shall be the operator of the Property and will
      have the full right to enter on and to do all work on the Property as
      Garuda determines to be appropriate, subject to compliance with applicable
      law. "Operator" is defined as the party responsible for managing and
      carrying out mineral exploration and development operations. Exploration
      means all activities directed toward ascertaining the existence, location,
      quantity, quality or commercial value of deposits of all ores, minerals
      and mineral resources produced under this Agreement, including but not
      limited to additional drilling required after discovery of potentially
      commercial mineralization, and including related environmental compliance.
      Development means all preparation (other than exploration) for the removal
      and recovery of all ores, minerals and mineral resources produced under
      this Agreement, including construction and installation of a mill or any
      other improvements to be used for the mining, handling, milling,
      processing, or other beneficiation of all ores, minerals and mineral
      resources, and all related environmental compliance;

	 	 	 
		(b) 	
      The Optionor and its representatives authorized in
      writing will have the right, at their own expense and risk, of access to
      and the right to inspect the Property and the data obtained therefrom, and
      to copy all data derived from work thereon, provided that such rights may
      only be exercised in a manner which does not unduly interfere with the
      activities of Garuda on the Property and that the Optionor will indemnify
      Garuda from and against all liabilities which may be incurred in
      connection with the exercise of such right of
access;

	 	(c) 	
      In order for Garuda to maintain the Option in good
      standing and be able to exercise it, Garuda shall keep the Property in
      good standing, in compliance with all applicable laws and rules thereto,
      including without limitation, incurring the cost of converting such of the
      Property into full exploration licence, payment of surface rights and
      filing the work commitments as provided in the Northwest Territories and
      Nunavut Territory mining laws and rules thereto, comply with environmental
      and use and disposal of water laws and rules thereto, and perform all
      works in such a manner to keep the Property in good standing and to
      maintain their value. Garuda shall conduct exploration and development
      programs on the Property described below;

	 	 	 
	 	(d) 	
      Garuda will prepare and deliver to the Optionor written
      quarterly progress reports of the work completed in the last calendar
      quarter and presently in progress and results obtained, comprehensive
      annual reports on or before January 31 of each year covering the
      activities hereunder and results obtained during the calendar year ending
      on December 31st immediately preceding, accompanied by copies of all data,
      reports and other information on or with respect to the Property not
      already provided to the Optionor and, during periods of active field work,
      timely current reports and information on any material results obtained,
      accompanied by copies of all relevant data, reports and other information
      concerning such results, including those necessary to permit each of the
      Optionor and Garuda to meet its continuous disclosure obligations under
      applicable securities laws;

	 	 	 
	 	(e) 	
      Garuda will pay, when due and payable, all wages or
      salaries for services rendered in connection with the Property and all
      accounts for materials supplied on or in respect of any work or operations
      performed in connection therewith;

	 	 	 
	 	(f) 	
      Garuda will conduct all work on or with respect to the
      Property in a careful and workman- like manner, following reasonable and
      prudent geological exploration methods and approaches, and in compliance
      with all applicable laws; and

	 	 	 
	 	(h) 	
      Except with regard to services provided by the Optionor
      or their affiliates, Garuda will obtain and maintain, and cause any
      contractor or subcontractor engaged hereunder by Garuda to obtain and
      maintain, adequate insurance and will procure that the Optionor is named
      as an additional insured in respect of all such
policies.

TERMINATION OF OPTION

	6. 	
      The Option shall automatically terminate, and no longer
      be capable of exercise, and Garuda shall have lost all right to acquire
      the Interest, upon the occurrence of any of the following
events:

	 	 	 
		(a) 	
      Garuda failing to incur the amount of Expenditures
      required by section 2 on or before the required dates (subject to the
      delivery of the required Expenditure certificate(s) and the outcome of any
      arbitration proceedings in connection therewith), provided that in the
      event that a determination is made pursuant to arbitration proceedings
      that Garuda has failed to comply with subsection 2, Garuda shall be
      allowed 30 days from the date of the determination to pay the amount of
      any shortfall directly to the Optionor;

	 	 	 
		(b) 	
      Garuda failing to allot and issue any of the Shares as
      and when required under section 2; or

	 	 	 
		(c) 	
      Garuda making default in the performance of any other
      obligation of Garuda hereunder as and when required, which default is not
      cured:

	 		(i) 	
      in the case of a default involving the payment of monies,
      within (5) business days,

	 	 	 	 
	 		(ii) 	
      in the case of any other default, within thirty (30) days
      after receipt of notice of such default from the Optionor, provided that
      if any such default (other than with respect to the payment of monies) is,
      by its nature, not able to be cured within a thirty (30) day period, and
      Garuda commences reasonable steps to begin to cure such default within the
      thirty (30) day period specified herein, Garuda shall be allowed such
      additional time (not exceeding sixty (60) days) as may be reasonably
      required to cure such default so long as it assiduously proceeds with the
      curing of such default during such period.

	 	 	 	 
	 7. 	
      In the event that Garuda makes an assignment for the
      benefit of its creditors or is declared bankrupt or makes an authorized
      assignment or a receiver is appointed under the Bankruptcy and Insolvency
      Act (Canada) or a receiver or receiver-manager of all or any part of the
      property of Garuda is appointed, the Option shall automatically terminate
      unless Garuda provides 30 days written notice of the occurrence of such
      event and unless Garuda has assigned its obligations under this Agreement
      within 120 days of the occurrence of such event to a party on terms and
      conditions no less favourable than those described hereunder acceptable to
      the Optionor, which acceptance shall not be unreasonably
  withheld.

OBLIGATIONS OF GARUDA UPON TERMINATION OF THE OPTION

	8. 	
      Upon the termination of the Option for any reason
      whatsoever other than the exercise thereof by Garuda in accordance with
      the provisions of this Agreement, Garuda will:

	 	 	 
		(a) 	
      leave the Property in good standing for a period of not
      less than 6 months under the Northwest Territories and Nunavut Territory
      mining laws and rules as at the effective date of termination, free and
      clear of all liens, charges, and encumbrances arising from operations by
      or on behalf of Garuda, and in a safe and orderly condition and in a
      condition which is in compliance with all applicable laws including,
      without limitation, with respect to reclamation and rehabilitation and
      including the clean-up and removal of any hazardous waste from the
      Property;

	 	 	 
		(b) 	
      deliver to the Optionor, within sixty (60) days of
      termination a full report on all work carried out by or on behalf of
      Garuda on the Property and all results relating thereto and any
      interpretations, models, or assessments in respect thereof, copies of all
      reports, studies, and assessments prepared by or on behalf of Garuda with
      respect to work on or for the benefit of the Property not already provided
      to the Optionor, copies of all drill logs, assay results, maps, field
      notes, sections, and other technical or interpretive data generated or
      compiled by or on behalf of Garuda with respect to the Property and work
      thereon hereunder, and will make available for delivery to the Optionor,
      at the place of storage, all available samples, drill chips, core and
      cuttings, sample rejects and pulps, and any other physical material
      removed by or for Garuda from the Property;

	 	 	 
		(c) 	
      comply with all obligations and make all payments accrued
      (including any taxes or similar payments) as of the date of termination
      with respect to the Property;

	 	 	 
		(d) 	
      unless otherwise specified by the Optionor, remove from
      the Property, within three (3) months of the effective date of
      termination, all machinery, equipment, supplies and facilities erected,
      installed, or brought upon the Property by or at the instance of
      Garuda.

REGISTRATION OF INTEREST

	9. 	
      Immediately upon the exercise of the Option of any or all
      of the Property by Garuda, Garuda shall forthwith receive registration
      documentation duly executed for the registration of its interest in the
      Property.

FORMATION OF JOINT VENTURE

	10. 	
      Upon exercise of the Option, the parties hereto (the
      “Participants”) shall form a joint venture (the “Joint Venture”), with
      Garuda as the initial designated operator of the Property

	 	 
	11. 	
      The Joint Operating Agreement will incorporate the terms
      and principles set forth under the heading ‘Formation of Joint Venture’.
      In addition, when determining the terms and conditions of the Shareholders
      Agreement, the Participants shall, to the extent reasonably practicable
      and consistent with the terms of this Agreement, take into due
      consideration the Canadian tax, corporate and accounting effects upon the
      Participants with a view to securing the most beneficial structure to the
      Participants as a whole. Each of Garuda and the Optionor will, following
      the second anniversary of the date of execution of this Agreement,
      negotiate in good faith to settle the form of the Joint Operating
      Agreement and, upon agreement being reached on the form thereof, such
      Joint Operating Agreement will be added as a schedule to this Agreement.
      If the parties are unable to agree on the form of the Joint Operating
      Agreement within such time, any outstanding issues will be referred to
      arbitration in accordance with the provisions of this Agreement.

	 	 
	12. 	The Joint Operating Agreement shall provide
  that:

	 	(a) 	the affairs of the
      Participants shall be structured and governed in a manner consistent with
      the Joint Operating Agreement, and, to the extent practicable under the
      laws of the Northwest Territories and Nunavut Territory, operations will
      be carried out substantially as set forth in the Joint Operating
      Agreement, as modified by the provisions herein and as may be agreed by
      the Participants; 
	 	  
	 	  
	 	  	  	  
	 	b) 	After the formation of the
      Joint Venture, each Participant shall be responsible for its pro rata
      share (based on its percentage interest at the exercise of the Option
      pursuant to which such expenditures are incurred) of all Joint Venture
      Expenditures (which Expenditures shall only be incurred pursuant to
      budgets and work programs proposed by the operator and approved by the
      Participants) incurred under programs in which it has elected to
      participate; 
	 	  
	 	  
	 	  	  	  
	 	c) 	If a Participant elects to
      not to contribute to an approved work program and budget, its interest in
      the Joint Venture will be diluted in accordance with this Section 5.1
      herein; 
	 	  
	 	  	  	  
	 	d) 	If a Participant elects to
      contribute, but fails to do as and when required and does not remedy such
      failure within thirty (30) days of such failure, not only will its
      interest in the Joint Venture be diluted, but it shall have lost the right
      to contribute to any further work programs and budgets; 
	 	  
	 	  	  	  
	 	e) 	Notwithstanding the
      adoption of a program and budget, a Participant may elect to participate
      in the approved program and budget: 
	 	  
	 	  	i) 	in proportion to its respective interest;
  

	 		ii) 	
      in some lesser amount than its respective interest;
    or

	 	 	 	 
	 		iii) 	
      not at all;

	 	 	 	 
	 	f) 	
      In the event that a Participant elects to participate in
      some lesser amount than its respective interest or not at all in a program
      and budget, such Participant’s beneficial interest in the Property shall
      be recalculated as provided in this Section 5.1, with dilution effective
      as of the first day of the subject program and budget;

	 	 	 	 
	 	g) 	
      If a Participant fails to so notify the other Participant
      of the extent to which it elects to participate, such Participant shall be
      deemed to have elected to contribute to such program and budget in
      proportion to its respective interest as of the beginning of the program
      period;

	 	 	 	 
	 	h) 	
      If a Participant elects to contribute, but fails to do so
      as and when required and does not remedy such failure within ninety (90)
      days of such failure, its interest in the Joint Venture shall be
      recalculated as provided in this Section 5.1 and it shall have lost the
      right to contribute to any further work programs and budgets;

	 	 	 	 
	 	i) 	
      If a Participant elects to contribute to a program and
      budget some lesser amount than in proportion to its respective interest,
      or not at all, and the other Participant elects to fund all or any portion
      of the deficiency, the decreased or non-participating Participant’s
      interest in the Joint Venture shall be diluted, and the interest of the
      other Participant in the Joint Venture will be correspondingly increased,
      so that at any time the interest of a party in the Joint Venture will be
      equal to:

(Actual Contributions of
Participant since Participation Date + Deemed Contributions of such
participant) x 100% 

(Sum of Total Actual Contributions
of all Participants since Participation Date + Total Deemed Contributions
of all Participants)

with the percentage rounded to the
nearest 2 decimal places;

	j) 	
      The Deemed Contributions of the Participants will
    be:

	 	 	 
		(a) 	
      for the Optionor it will be equal to 30% of $1,500,000
      being $450,000

	 	 	 
		(b) 	
      for Garuda it shall be $1,050,000;

	 	 	 
	k) 	
      If a Participant defaults in making a contribution or
      cash call required by an adopted program and budget, the non-defaulting
      Participant may, but shall not be obligated to, advance some portion or
      all of the amount in default on behalf of the defaulting Participant (a
      "Cover Payment");

	 	 	 
	l) 	
      Each and every Cover Payment shall constitute a demand
      loan bearing interest from the date of the advance at the rate to be
      determined between the parties. If more than one Cover Payment is made,
      the Cover Payments shall be aggregated and the rights and remedies
      described herein pertaining to an individual Cover Payment shall apply to
      the aggregated Cover Payments. The failure to repay such loan upon demand
      shall be a default;

	 	m) 	
      If the interest of a Participant in the Joint Venture is
      reduced to 10% percent or less, the interest of such Participant in the
      Joint Venture will be transferred to the Joint Venture in exchange for a
      net smelter return of 3% calculated in accordance with Schedule
  "A";

	 	 	 
	 	n) 	
      Nothing contained in this Agreement shall be deemed to
      constitute either party the partner of the other, or, except as otherwise
      herein expressly provided, to constitute either party the agent of the
      other, or to create any fiduciary relationship between them. The parties
      hereto do not intend to create, and this Agreement shall not be construed
      to create, any mining, commercial or other partnership. Neither party, nor
      any of its agents, shall act for or assume any obligation or
      responsibility on behalf of the other party, except as otherwise expressly
      provided herein. The rights, duties, obligations and liabilities of the
      parties hereto shall be several and not joint or collective;

	 	 	 
	 		
      (m) a Participant's interest is assignable under the
      terms and conditions described below.

	13. 	
      Further, so long as Garuda holds an interest in the
      Property, Garuda shall have a first right of refusal with regard to the
      purchase of the 30% interest held by the Optionor (the "Interest") as
      follows:

	 	 	 
		(a) 	
      the Optionor shall provide notice in writing (the
      "Transfer Notice") to Garuda of its desire to transfer such
    Interest;

	 	 	 
		(b) 	
      the Transfer Notice shall specify the consideration, the
      terms of payment, the third party to whom the Optionor is proposing to
      transfer such Interest, if determined, and any other material information
      with respect to the proposed transfer;

	 	 	 
		(c) 	
      if the consideration to be paid for the transfer of the
      Interest is consideration other than cash the Transfer Notice shall
      contain the Optionor good faith estimate of the cash equivalent of the
      non-cash consideration (the "Non-Cash Price");

	 	 	 
		(d) 	
      Garuda shall notify the Optionor within 30 days from the
      date of its receipt of the Transfer Notice whether it is willing to
      purchase such Interest on the terms and conditions contained in the
      Transfer Notice and, if applicable, its agreement with the Non-Cash Price;
      and

	 	 	 
		(e) 	
      if Garuda fails to notify the Optionor of its intention
      to purchase the Interest within the 30- day period or fails to pay the
      consideration to the Optionor, the Optionor shall be at liberty for a
      period of 60 days from the end of the applicable period to complete the
      transfer of the Interest as provided for in the Transfer Notice. If the
      transfer of the Interest is not completed within the aforesaid 60 day
      period, any further transfer of the Interest shall be subject to the terms
      of this paragraph.

NO PARTNERSHIP

	14. 	
      Nothing contained in this Agreement shall be deemed to
      constitute either party the partner of the other, or, except as otherwise
      herein expressly provided, to constitute either party the agent of the
      other, or to create any fiduciary relationship between them. The parties
      hereto do not intend to create, and this Agreement shall not be construed
      to create, any mining, commercial or other partnership. Neither party, nor
      any of its agents, shall act for or assume any obligation or
      responsibility on behalf of the other party, except as otherwise expressly
      provided herein. The rights, duties, obligations and liabilities of the
      parties hereto shall be several and not joint or
  collective.

REPRESENTATIONS, WARRANTIES AND COVENANTS

	15. 	
      The Optionor represents and warrants to Garuda that, as
      of the date of this Agreement:

	 	 	 
		(a) 	
      the Optionor is the legal and beneficial owner of the
      Property;

	 	 	 
		(b) 	
      all of the concessions comprising the Property have been
      acquired in accordance with and are in good standing pursuant to the laws
      of Northwest Territories and the laws of Nunavut Territory;

	 	 	 
		(c) 	
      the Optionor has the sole and exclusive right to deal
      with the Property in the manner provided in this Agreement;

	 	 	 
		(d) 	
      the Optionor has the full power and authority to execute
      and deliver this Agreement and to fulfil its obligations provided for by
      this Agreement;

	 	 	 
		(e) 	
      there are no outstanding agreements or options to acquire
      or purchase any interest in any of the Property, or to explore, develop or
      exploit any part thereof other than the terms of the Property Acquisition
      Agreement between the Optionor (formerly Consolidated Petroquin Resources
      Limited) and Kalac Holdings Ltd, Trevor Teed and Lane Dewar (the “ Kalac
      Agreement”), granting a 2% net smelter returns and no person has other
      interest whatsoever in the Property or any production therefrom;

	 	 	 
		(f) 	
      the Optionor has delivered to or made available for
      inspection by Garuda all existing data in its possession or control, and
      true and correct copies of all leases or other contracts, relating to the
      Property;

	 	 	 
		(g) 	
      with respect to the Property, to the best of the
      Optionor's information and knowledge, there are no pending or threatened
      actions, suits, claims or proceedings,; and

	 	 	 
		(h) 	
      except as to matters otherwise disclosed herein, to the
      best of the Optionor's information and
knowledge,

	 	(i) 	
      the conditions existing on or with respect to the
      Property and its ownership and operation of the Property are not in
      violation of any laws (including without limitation any environmental
      laws), nor causing or permitting any damage or impairment to the health,
      safety, or enjoyment of any person at or on the Property or in the general
      vicinity of the Property;

	 	 	 
	 	(ii) 	
      there have been no past violations by it or by any of its
      predecessors in title of any environmental laws or other laws affecting or
      pertaining to the Property, nor any past creation of damage or threatened
      damage to the air, soil, surface waters, groundwater, flora, fauna, or
      other natural resources on, about or in the general vicinity of the
      Property ("Environmental Damage"); and

	 	 	 
	 	(iii) 	
      the Optionor has not received inquiry from or notice of a
      pending investigation from any governmental agency or of any
      administrative or judicial proceeding concerning the violation of any
      laws.

	16. 	
      Garuda represents and warrants to the Optionor that, as
      of the date of this Agreement:

	 	 (a) 	 the common shares of its parent company, Garuda Capital
        Corp. are listed and posted for trading on the OTC.BB Exchange and it
        is in good standing with the Securities Exchange Commission and the laws
        of the United States and British Columbia;

	
17. 		
Garuda and the Optionor each warrant and represent to the other that, as of the date of this Agreement:

	
	 	 	 	 
		
(a) 		
it is a corporation duly organized and in good standing in its jurisdiction of incorporation and is qualified to do business and is in good standing in those jurisdictions where necessary in order to carry out the purposes of this
Agreement;

	
	 	 	 	 
		
(b) 		
it has the capacity to enter into and perform this Agreement and all transactions contemplated herein, including the Option, and it has obtained all required consents, approvals and authorizations required from its directors and
from any surface and mineral rights owner, and all other actions required to authorize it to enter into and perform this Agreement have been properly taken;

	
	 	 	 	 
		
(c) 		
it will not breach any other agreement or arrangement by entering into or performing this Agreement or by the exercise of the Option;

	
	 	 	 	 
		
(d) 		
it is not subject to any governmental order, judgment, decree, debarment, sanction or laws that would preclude the permitting or implementation of mining operations under this Agreement; and

	
	 	 	 	 
		
(e) 		
this Agreement has been duly executed and delivered by it and is valid and binding upon it in accordance with its terms, subject to laws of general application with respect to creditor rights and the discretionary nature of
equitable remedies.

	
	 	 	 	 
	
18. 		
Each of the parties hereto represents and warrants that it is unaware of any material facts or circumstances that have not been disclosed in this Agreement, which should be disclosed to the other party in order to prevent the
representations and warranties in this Agreement from being materially misleading.

	
	 	 	 	 
	
19. 		
Each of the parties acknowledges that the other has relied and will rely upon the accuracy of its respective representations and warranties contained in sections 16, 17 and 18, which representations and warranties shall constitute
fundamental terms of this Agreement.

	
	 	 	 	 
	
20. 		
The Optionor covenants with Garuda that, during the Option Period: it shall:

	
	 	 	 	 
		
(a) 		
not take any action whereby the Property will become subject to:

	
	 	 	 	 
			
(i) 		
any lien, charge or encumbrance (other than pursuant to this Agreement),

	
	 	 	 	 
			
(ii) 		
any action, suit, proceeding or claim by any person or party (other than Garuda), or

	
	 	 	 	 
			
(iii) 		
any environmental damage;

	
	 	 	 	 
		
(b) 		
deliver to Garuda, upon receipt by the Optionor thereof, all notices, documentation and other materials with respect to the Property received from any governmental agencies or third parties;

	

	 	(c) 	
      maintain its corporate existence and good standing under
      applicable corporate laws;

	 	 	 
	 	(d) 	
      so long as Garuda is not in default hereunder, not take
      any action which would adversely affect the rights of Garuda
    hereunder;

	20. 	
      Garuda covenants with the Optionor that, during the
      Option Period, it shall:

	 	 	 	 
		(a) 	
      not take any action whereby the Property will become
      subject to:

	 	 	 	 
			(i) 	
      any lien, charge or encumbrance (other than pursuant to
      this Agreement);

	 	 	 	 
			(ii) 	
      any action, suit, proceeding or claim by any person or
      party (other than the Optionor); or

	 	 	 	 
			(iii) 	
      any environmental damage.

	 	 	 	 
			(iv) 	
      operate in compliance with all regulations and laws of
      the Northwest Territories and Nunavut Territory.

	 	 	 	 
		(b) 	
      deliver to the Optionor, upon receipt by Garuda thereof,
      all notices, documentation and other materials with respect to the
      Property received from any governmental agencies or third
  parties;

	 	 	 	 
		(c) 	
      maintain its corporate existence and good standing under
      applicable corporate laws;

	 	 	 	 
		(d) 	
      so long as the Optionor is not in default hereunder, not
      take any action which would adversely affect the rights of the Optionor
      hereunder; and

	 	 	 	 
		(e) 	
      use its commercially reasonable efforts to ensure that
      its regulatory filings with the Securities and Exchange Commission are
      kept current and to ensure that all shares issued to the Optionor shall be
      issued as fully paid and non-assessable shares in the capital of Garuda,
      free and clear of all encumbrances except with regard to any applicable
      resale restrictions under the Securities Act (British
  Columbia).

SURVIVAL OF REPRESENTATIONS AND WARRANTIES

	21. 	
      All representations, warranties and covenants granted or
      assented to in this Agreement, shall survive the completion of the
      transactions contemplated herein and each such representation, warranty,
      and covenant is a condition of this Agreement, any or all of which
      conditions may be waived in whole or in part by the party for whose
      benefit the representation is made. The representations and warranties of
      the parties contained in this Agreement shall not be discharged, dissolved
      or terminated by the exercise of the Option.

INDEMNITIES

	22. 	
      (a) Neither the Optionor nor its affiliated companies and
      their shareholders, principals, Board members, representatives, agents,
      employees and lawyers shall have any responsibility whatsoever for or
      derived from the actions, omissions, operation and in general the
      management of Garuda or any of its affiliated companies nor in the
      Property.

	 	 	 
		(b) 	
      Garuda hereby releases the Optionor and its affiliated
      companies and their shareholders,

	 		
      principals, Board members, representatives, agents,
      employees and lawyers for whatever act or omission of Garuda or its
      affiliated companies and their shareholders, principals, Board members,
      representatives, agents, employees and lawyers thereto. Garuda binds
      itself to indemnify and hold the Optionor and its affiliated companies and
      their shareholders, principals, Board members, representatives, agents,
      employees and lawyers harmless from and against any claim or proceeding of
      any nature against them derived from the actions, omissions or
      transactions that Garuda or its affiliated companies and their
      shareholders, principals, Board members, representatives, agents,
      employees and lawyers are part of.

	 	 	 
	 	(c) 	
      Neither Garuda nor its affiliated companies and their
      shareholders, principals, Board members, representatives, agents,
      employees and lawyers shall have any responsibility whatsoever for or
      derived from the actions, omissions, operation and in general the
      management of the Optionor or any of its affiliated companies nor in the
      Property.

	 	 	 
	 	(d) 	
      The Optionor hereby releases Garuda and its affiliated
      companies and their shareholders, principals, Board members,
      representatives, agents, employees and lawyers for whatever act or
      omission of the Optionor or its affiliated companies and their
      shareholders, principals, Board members, representatives, agents,
      employees and lawyers thereto. The Optionor binds itself to indemnify and
      hold Garuda and its affiliated companies and their shareholders,
      principals, Board members, representatives, agents, employees and lawyers
      harmless from and against any claim or proceeding of any nature against
      them derived from the actions, omissions or transactions that the Optionor
      or its affiliated companies and their shareholders, principals, Board
      members, representatives, agents, employees and lawyers are part
  of.

ASSIGNMENT OF INTEREST

	23. 	
      The Optionor may assign its interest in the Property and
      this Agreement without the consent of Garuda, which assignment may occur,
      without limitation, by way of a statutory arrangement, dividend-in-kind,
      return of capital transaction, merger or such other reorganizational
      transaction in which the Optionor's interest in the Property and this
      Agreement may be transferred to another entity.

	 	 	 
	25. 	
      Garuda may at any time sell, transfer or otherwise
      dispose of all or any portion of its interest to the property, this letter
      of intent and the Formal Agreement, except that its obligations hereunder
      shall continue unless released in writing by the Optionor.

	 	 	 
	26. 	
      Any purchaser, assignee or transferee of the interest’s
      of Garuda must first deliver to the other party to this Agreement, its
      agreement binding itself to this agreement and containing:

	 	 	 
		(a) 	
      a covenant by such transferee to perform all of the
      obligations of the transferring party to be performed under this letter of
      intent and the said letter of intent in respect of the interest to be
      acquired by it from the transferring party; and

	 	 	 
		(b) 	
      a provision subjecting any further sale, transfer or
      other disposition of such interest in the Property and this letter of
      intent or any portion thereof to the restrictions contained in this
      Section;

FORCE MAJEURE

	27. 	
      Except for the obligation to make payments when due
      hereunder, the obligations of a party shall be suspended to the extent and
      for the period that performance is prevented by any cause,
  whether

foreseeable or unforeseeable, beyond its reasonable control,
including, without limitation, labour disputes (however arising and whether or
not employee demands are reasonable or within the power of the party to grant);
acts of God; laws, instructions or requests of any government or governmental
entity; judgments or orders of any court;; acts of war or conditions arising out
of or attributable to war, whether declared or undeclared; riot, civil strife,
insurrection or rebellion; fire, explosion, earthquake, storm, flood, sink
holes, drought or other adverse weather condition; actions by native rights
groups, environmental groups, or other similar special interest groups; or any
other cause whether similar or dissimilar to the foregoing provided that Garuda
has used reasonable efforts to comply with the terms of this Agreement. The
affected party shall promptly give notice to the other party of the suspension
of performance, stating therein the nature of the suspension, the reasons
therefor, and the expected duration thereof. The affected party shall resume
performance as soon as reasonably possible. During the period of suspension the
obligations of both parties to advance funds pursuant to this Agreement shall be
reduced to levels consistent with the current operations.

JURISDICTION

	28 	
      The Participants attorn the jurisdiction of British
      Columbia regarding any dispute, controversy or claim arising out of or
      relating to this Agreement.

CURRENCY

	29. 	
      Unless otherwise provided, all sums of money to be paid
      or calculated pursuant to this Agreement will be calculated and paid in
      Canadian currency.

NOTICE

	30. 	All notices, demands and
      requests required or permitted to be given under this Agreement shall be
      in writing and may be delivered personally, sent by electronic mail or by
      facsimile or may be forwarded by first class prepaid registered mail. Any
      notice delivered personally or sent by electronic mail or by facsimile
      shall be deemed to have been given and received on the same business day
      as sent, subject, in the case of notice given by facsimile, to written
      acknowledgment of receipt from the original recipient. Any notice mailed
      as aforesaid shall be deemed to have been given and received on the
      seventh calendar day following the date it is posted. Notices shall be
      addressed as follows: 
	  
	  
	  
	  
	  	  	  	  
	  	(a) 	if to Garuda: 	  
	  	  	  	  
	  	  	#502 – 1978 Vine Street 
	  	  	Vancouver, British Columbia V6K 4S1
    
	  	  	  	  
	  	  	Facsimile No.: ******* 
	  	  	  	  
	  	  	Attention:        C. Robin
      Relph, President 
	  	  	  	  
	  	  	if to the Optionor: 
	  	  	  	  
	  	  	3465 Commercial Street, 
	  	  	Vancouver, British Columbia, V5N 4E8
    
	  	  	  	  
	  	  	Facsimile No.: (604) 871-9926 
	  	  	  	  
	  	  	Attention:        W. Gennen
      McDowall, President 

	  	or to such other address or addresses
      as either party may, from time to time, specify by notice to the other;
      provided, however, that if there shall be a mail strike, slowdown or other
      labour dispute, which might affect delivery of the notice by mail, then
      the notice shall be effective only if actually delivered. 
	  
	  	  
	ENTIRE AGREEMENT 
	  	  
	31. 	This Agreement supersedes and invalidates
      all other commitments, representations and warranties, including without
      limitation a certain letter agreement among the parties dated June 26, 2006
      relating to the subject matter hereof which may have been made by the parties
      hereto either orally or in writing prior to the date hereof, and all of
      which shall become null and void from the date this Agreement is signed.
      The recitals and schedules are incorporated by reference into and form a
      part of this Agreement. 
	  
	  
	  
	  	  
	FURTHER ASSURANCES 
	  	  
	32. 	Each of the parties hereto shall from time to time
      and at all times do all such further acts and execute 
	  	and deliver all further deeds and documents as
      shall be reasonably required in order fully to perform 
	  	and carry out the terms of this Agreement. 
	  	  
	HEADINGS 
	  	  
	33. 	The subject headings herein are included
      for purposes of convenience only, and shall not affect the construction
      or interpretation of any of its provisions. 
	  
	  	  
	WAIVER 
	  	  
	34. 	No party will be deemed to have waived
      the exercise of any right that it holds under this Agreement unless such
      waiver is made in writing. No waiver made with respect to any instance involving
      the exercise of any such right will be deemed to be a waiver with respect
      to any other instance involving the exercise of the right or with respect
      to any other such right. 
	  
	  
	  	  
	REMEDIES 
	  	  
	35. 	Failure by either party to exercise any
      of its rights, powers or remedies hereunder or its delay to do so shall
      not constitute a waiver of those rights, powers or remedies. The single
      or partial exercise of a right, power or remedy shall not prevent its subsequent
      exercise or the exercise of any other right, power or remedy. 
	  
	  	  
	AMENDMENTS 
	  	  
	36. 	If at any time during the continuance
      of this Agreement the parties shall deem it necessary or expedient to make
      any alteration or addition to this Agreement they may do so by means of
      a written agreement between them which shall be supplemental and form part
      of this Agreement. 
	  
	  	  
	COUNTERPARTS 
	  	  
	37. 	This Agreement may be executed in any
      number of counterparts and each counterpart shall be deemed an original,
      but all counterparts together shall constitute one and the same instrument.
      Any 
	  

	  	 facsimile signature shall be taken
      as an original. 
	  	  	  
	GOVERNING LAW 
	  	  	  
	38. 	This Agreement will be governed by and
      be construed in accordance with the laws of British Columbia and the laws
      of Canada applicable therein. 
	  	  	  
	TIME 	  	  
	  	  	  
	39. 	Time is of the essence hereof. 
	  	  	  
	SEVERABILITY 
	  	  	  
	40. 	If any provision of this Agreement
      is determined to be invalid or unenforceable in whole or in part, such invalidity
      or unenforceability shall attach only to such provision and everything else
      in this \Agreement shall continue in full force and effect. 
	  
	  	  	  
	TERMS REGARDING SHARES 
	  	  	  
	41. 	The Shares and any interest
      in the Shares granted by this agreement shall hereinafter be referred to
      as the Securities. Optionor acknowledges and understands that the Securities
      have not been registered under the US Securities Act or any other securities
      laws, are not qualified for resale in the US until registered under the
      US Securities Act or an exemption from such registration is available. 
	  
	  
	  	  	  
	42. 	Optionor acknowledges that
      Garuda Capital Corp. shall refuse to register any transfer of the Securities
      not made in accordance with the provisions of Regulation S of the US Securities
      Act pursuant to registration under the US Securities Act, or pursuant to
      an available exemption from registration. 
	  
	  	  	  
	43. 	Optionor also acknowledges
      and understands that the certificates representing the Shares will be stamped
      with the following legend (or substantially equivalent language) restricting
      transfer in the following manner: 
	  
	  	  	“The transfer of the securities
      represented by this certificate is prohibited except in accordance with
      the provisions of Regulation S promulgated under the United States Securities
      Act of 1933, as amended (the “Act”), pursuant to registration
      under the Act or pursuant to an available exemption from registration. In
      addition, hedging transactions involving such securities may not be conducted
      unless in compliance with the Act.” 

	  	  
	  	  
	  	  
	  	  
	  	Optionor hereby consents to
      Garuda making a notation on its records or giving instructions to any transfer
      agent of the Securities in order to implement the restrictions on transfer
      described in this Agreement. 
	  
	  	  	  
	44. 	Optionor certifies that: 
	  	(a)     Optionor
      is not a US person and is not acquiring the Securities for the account or
      benefit of any US person; or 
	  	  	
	  	(b)     Optionor
      is a US person who purchased the Securities in a transaction that did not
      require registration under the US Securities Act.
	  	  	 
	45. 	Optionor agrees not to engage
      in hedging transactions with regard to the Securities unless in 

      compliance with the US Securities Act. 
	  

	45. 	
      Optionor further acknowledges that:

		(a) 	
      the Securities will be subject to a number of resale
      restrictions in Canada including a restriction on trading. Until the
      restriction on trading expires, Optionor will not be able to trade the
      Securities unless Optionor complies with an exemption from the prospectus
      and registration requirements under securities legislation; and

	 	 	 
		(b) 	
      at present, Garuda Capital Corp. is not a reporting
      issuer in any jurisdiction in Canada.

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

Xemplar Energy Corp.

_______________________
Authorized Signatory 
Name:

Garuda Ventures Canada Inc.

_______________________
Authorized Signatory 
Name:

Garuda Capital Corp.

_______________________
Authorized Signatory 
Name:

SCHEDULE "A"

NET SMELTER RETURN

1. For the purposes of this Schedule A and of calculating the
amount of royalty payable hereunder:

     (a) "net smelter return" - means
the amount of money actually received from the sale of the ores mined from the
Property or from the sale of the concentrates or other products derived
therefrom, less all taxes, costs or expenses incurred with respect to freight,
trucking or handling of ores, concentrates or other products ex headframe in the
case of ores and ex mill or other treatment facility in the case of concentrates
or other products;

     (b) "Operator" - means the party
responsible for the carrying on of the operations relating to the Property;

     (c) "Owner" - means the person or
persons that own an interest in The Claims as at the relevant time including,
without limitation, the Operator if the Operator has such an interest;

     (d) "Property" - means The Claims
as defined in the annexed agreement;

     (e) "Recipient" - means the party
or parties that are from time to time entitled to be paid the royalty
hereunder;

     (f) "year" - means the calendar
year and a reference to a subdivision of a year means a reference to the
relevant subdivision of a calendar year;

     (g) those terms defined in the
agreement of which this Schedule B is part shall have the same meanings as so
defined (save as otherwise provided in this Schedule B).

2. All calculations and computations relating to the royalty
shall be carried out in accordance with generally accepted accounting principles
and good mining practice.

3. Subject to the provisions hereof, the amount of royalty
payable to the Recipient hereunder shall be calculated by the operator as at the
end of each quarter and shall be payable to the Recipient on or before the 15th
day of the next following quarter; provided, however, that the Operator shall
deduct from royalty otherwise payable the amount of any advance royalty paid
pursuant to the annexed agreement until such time as the aggregate amount of the
advance royalty so paid has been so deducted.

4. With each payment of royalty, the Operator shall deliver to
the Recipient a statement indicating the nature of the payment being made, if
any, the manner in which it was determined and, as at the date of such
calculation, the aggregate amount of advance royalty (if any) paid and not
deducted hereunder. If no royalty is payable in any quarter, the Operator shall
deliver a statement accordingly. Within 90 days after the end of each year in
which royalty is payable, or save for deduction of advance royalty previously
paid would be payable, the Operator shall deliver to the Recipient a certificate
confirming the determination of the amount of royalty paid or otherwise payable
during the said year.

5. The Operator shall keep separate accounts relating to its
operations hereunder and, upon the prior written request of the Recipient, duly
authorized representatives of the Recipient may have access to such accounts for
the purpose of confirming any information contained in a statement delivered to
the Recipient pursuant to the provisions of paragraph 4 hereof; provided,
always, that such access shall not interfere with the affairs of the Operator.
The Recipient shall have the right to make copies of or take extracts from such
accounts (but only for his own use).

6. (a) For the purpose of calculating the amount of royalty
payable to the Recipient hereunder only, if any ore or product derived from ore
mined from the property is retained by the Operator or Owner or sold to a
company associated with the Operator or Owner, and if the sale price of such
product is not negotiated on an arm's length basis, the Operator shall, for the
purposes of calculating net smelter return available to pay the royalty
hereunder only and notwithstanding the actual amount of such sale price, add to
any moneys actually received with respect to such sale an amount which the
Operator considers sufficient to make the same represent a reasonable sale price
for such product as if negotiated at arm's length.

     (b) The Operator shall by notice
inform the Recipient of the quantum of such reasonable sale price and, if the
Recipient does not object thereto within 45 days after receipt of such notice,
said quantum shall be final and binding for the purposes of this paragraph
6.

     (c) If the Recipient objects to
such quantum by notice delivered to the Operator within the said 45 days, then
the quantum of such reasonable sale price shall be decided by arbitration as
follows: the Recipient shall nominee one arbitrator and shall notify the
Operator of such nomination and the Operator shall, within 45 days after
receiving such notice, nominate an arbitrator and the two arbitrators shall
select an umpire to act jointly with them. If the said arbitrators shall be
unable to agree in the selection of such umpire, the umpire shall be a person
designated by the President or any Vice-President of the Canadian Institute of
Mining and Metallurgy, provided that such person is not an employee of the Owner
or any company affiliated with the Owner. The umpire shall fix the time and
place for the purpose of hearing such evidence and representations as either or
the parties hereto may present and, subject to the provisions hereof, the
decision of the arbitrators and umpire, or any two of them, in writing shall be
binding upon the parties hereto. The said arbitrators and umpire shall, after
hearing any evidence and representations that the parties may submit, make their
award, reduce the same to writing and deliver one copy thereof to each of the
parties hereto. The majority of the umpire and arbitrators may determine any
matters of procedure for the arbitration not specified herein. If the Operator
fails within the said 45 days to nominate an arbitrator, then the arbitrator
nominated by the Recipient may proceed alone to determine the dispute in such
manner and at such time as he shall think fit and his decision shall, subject to
the provisions hereof, be binding upon the parties hereto.

(d) The expense of the arbitration shall be paid by the Recipient
  if the decision reached hereunder does not increase such quantum by more than
  1% of the quantum set forth in the notice hereinbefore referred to and otherwise
  by the Operator. Insofar as they do not conflict with the provisions hereof,
  the Rules for the Conduct of Arbitrations of the Arbitrators Institute of Canada
  Inc., as amended or replaced from time to time, shall be applicable. Appeal
  from the decision of the arbitrators shall be in accordance with the provisions
  of the said Rules.

19

SCHEDULE "B"

PROPERTY DESCRIPTION

The Property is located approximately 312 miles NNW of
Yellowknife and 90 miles SW of Kugluktuk (Coppermine, straddling the Northwest
Territories / Nunavut Territory border. The property is approximately 312 miles
NNW of Yellowknife and 90 miles SW of Kugluktuk (Coppermine).

  	Mineral
      Claim 	Tag
      # 	Acreage 
	RAH 1 	F53535
    	206.6  
	RAH 2 	F53536
    	206.6  
	WET 	F53534
    	206.6  
	COR 1 	F92341
    	1033  
	COR 2 	F92342
    	2582.5  
	COR 3 	F92343
    	1291.25  
	COR 4 	F92344
    	1394.55  
	COR 5 	F92345
    	2479.2 
	COR 6 	F92346
    	2582.5  
	COR 7 	F92355
    	2582.5  
	COR 8 	F92348
    	2582.5  
	COR 9 	F92356
    	1549.5 
	COR 10 	F92350
    	2582.5 
	COR 11 	F92351
    	1549.5 
	COR 12 	F92352
    	1549.5 
	COR 13 	F92353
    	2582.5 
	COR 14 	F92354
    	1084.65  
	COR 15 	F92328
    	2582.5 
	TOTAL 	 
    	30628.45  

	SCHEDULE "C" 
	 
	PROPERTY MAP 
	 
	Project Area Location Map
    

  21Filed by Automated Filing Services Inc. (604) 609-0244 - FC Financial Services Inc. - Exhibit 10.1

AMENDMENT NO. 1 TO LOAN AGREEMENT

THIS AMENDMENT NO. 1 to the Loan Agreement dated May 16,
2006 between ICP SOLAR TECHNOLOGIES INC. (“ICP”) and FC FINANCIAL
SERVICES INC. (“FC”) (the “Loan Agreement”) is entered into as of July 4,
2006 by FC and ICP.

WHEREAS:

A.     FC provided a loan in the
principal amount of US$1,000,000 (the “Loan”) to ICP pursuant to the terms of
the Loan Agreement; 

B.     ICP has requested an additional
loan of US$500,000 and FC has agreed to lend such sum to ICP subject to the
terms and upon the conditions hereinafter set forth.

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the premises contained herein and for other good and valuable
consideration, the parties agree as follows:

1.      Definitions.
Terms used herein and not otherwise defined shall have the meanings set forth in
the Loan Agreement.

2.      Amendments.
Effective as of the date hereof:

	 	(a) 	
      The term “Loan” shall be amended and restated as follows:
      (c) “Loan” means the loan of $1,500,000 (US) to be made by the Lender to
      the Borrower in accordance with this Agreement; and

	 	 	 
	 	(b) 	
      The term “Principal Sum” shall be amended and restated as
      follows: (e) “Principal Sum” means the sum of $1,500,000
  (US).

3.      No
Other Modification. The parties confirm that the terms, covenants and
conditions of the Loan Agreement remain unchanged and in full force and effect,
except as modified by this Amendment No. 1. 

4.      Headings.
The headings of the various sections of this Amendment No. 1 have been inserted
for convenience of reference only and shall not be deemed to be part of this
Amendment No. 1.

5.      Counterparts.
This Amendment No. 1 may be executed in two or more counterparts, each of which
shall constitute an original, but all of which, when taken together, shall
constitute but one instrument, and shall become effective when one or more
counterparts have been signed by each party hereto and delivered to the other
parties.

6.      Successors
and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties
hereto.

2

7.      Entire
Agreement. This Amendment No. 1 constitutes the full and entire
understanding and agreement between the parties with regard to the subject
hereof.

IN WITNESS WHEREOF, the parties have duly executed and
delivered this Amendment No. 1 as of the date first written above.

	ICP SOLAR TECHNOLOGIES INC. 	  
	by its authorized signatory: 	  
	  	  
	/s/ Sass M. Peress 	C/S 
	Sass M. Peress 	  
	Chief Executive Officer 	  
	  	  
	  	  
	  	  
	FC FINANCIAL SERVICES INC. 	  
	by its authorized signatory: 	  
	  	  
	/s/ Taras
      Chebountchak 	C/S 
	Taras Chebountchak 	  
	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]