Document:

<PAGE>

                                                                    EXHIBIT 4(z)

AMENDING AGREEMENT TO EXHIBIT "B" OF THE MASTER AGREEMENT TO SUPPLY LOCAL
INTERCONNECTION SERVICES DATED FEBRUARY THE 25TH OF 1999 (HEREINAFTER THE
"AMENDING AGREEMENT"), EXECUTED, ON ONE PART, BY MAXCOM TELECOMUNICACIONES, S.A.
DE C.V. (HEREINAFTER "MAXCOM"), HEREBY REPRESENTED BY MR. ROGELIO ESPINOSA
CANTELLANO, AND ON THE OTHER PART, BY TELEFONOS DE MEXICO, S.A. DE C.V.
(HEREINAFTER "TELMEX"), HEREBY REPRESENTED BY MR. SERGIO RODRIGUEZ MOLLEDA,
REGARDING THE INTERCONNECTION OF THEIR RESPECTIVE FIXED LOCAL SERVICE NETWORKS.

                                 REPRESENTATIONS

BOTH PARTIES REPRESENT:

a)    That on February the 25th of 1999, they executed the Local Interconnection
      Services Supply Master Agreement regarding the interconnection of their
      respective Fixed Local Service Networks (hereinafter the "Agreement").

b)    That this Amending Agreement shall become an integral part of the
      Agreement executed by and between Telmex and Maxcom.

c)    That they desire to amend Exhibit "B" to the Agreement the parties hereto
      executed on February the 25th of 1999, under the terms set forth in this
      Amending Agreement, pursuant to the following:

                                     CLAUSE

SOLE CLAUSE.

            Both parties hereto agree to amend Exhibit "B" to the Local
Maxcom-TELMEX Local Interconnection Master Agreement in its entirety, to read as
follows:

                                   EXHIBIT "B"

OFFSETTING AGREEMENT OF LOCAL INTERCONNECTION SWITCHING SERVICES EXECUTED, ON
ONE PART, BY TELEFONOS DE MEXICO, S.A. DE C.V. (HEREINAFTER "TELMEX"), HEREBY
REPRESENTED BY MR. SERGIO RODRIGUEZ MOLLEDA, AND ON THE OTHER PART, BY MAXCOM
TELECOMUNICACIONES, S.A. DE C.V. (HEREINAFTER "MAXCOM"), HEREBY REPRESENTED BY
ROGELIO ESPINOSA CANTELLANO, PURSUANT TO THE FOLLOWING REPRESENTATIONS AND
CLAUSES:

<PAGE>

                                                                               2

                                 REPRESENTATIONS

BOTH PARTIES REPRESENT:

a)    That they execute this Offsetting Agreement derived from the Local
      Interconnection Services Supply Master Agreement (hereinafter the "Local
      Interconnection Agreement") executed by and between MAXCOM and TELMEX on
      this same date.

b)    That they agree to incorporate herein by reference in this Offsetting
      Agreement the Representations of the Local Interconnection Agreement,
      without the need to transcribe them.

c)    That they desire to execute this Offsetting Agreement in order to offset
      between each of them the considerations derived from the reciprocal supply
      of the Local Interconnection Switching Services, provided however such
      considerations fall within the scope determined by the unbalance
      thresholds set forth in this Offsetting Agreement, according to the
      mechanisms described herein, and thus agree that this Offsetting Agreement
      shall be governed by the foregoing Representations and by the following:

                                     CLAUSES

            FIRST CLAUSE. PURPOSE. The parties agree to execute this Offsetting
Agreement in order to offset between each of them the considerations derived
from the reciprocal supply of Local Interconnection Switching Services, provided
however such considerations fall within the scope determined by the unbalance
thresholds set forth in this Offsetting Agreement, and pursuant to the following
terms and conditions.

            SECOND CLAUSE. UNBALANCE. The monthly unbalance shall be estimated
according to the following formula (hereinafter the "Unbalance"):

* If MAXCOM's CP is greater than TELMEX's CP, the following shall apply:

((MAXCOM's CP - TELMEX's CP)/(MAXCOM's CP + TELMEX's CP)) x 100%.

* If TELMEX's CP is greater than MAXCOM's CP, the following shall apply:

((TELMEX's CP - MAXCOM's CP)/(MAXCOM's CP + TELMEX's CP)) x 100%.

WHERE:

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                                                                               3

             MAXCOM's CP=   Is the amount that results from multiplying the
                            total sum of minutes of the Local Interconnection
                            Switching Services supplied by TELMEX to MAXCOM
                            during the month in question times the rate agreed
                            by the parties in Exhibit "A" to the Local
                            Interconnection Agreement.

             TELMEX's CP=   Is the amount that results from multiplying the
                            total sum of minutes of the Local Interconnection
                            Switching Services supplied by MAXCOM to TELMEX
                            during the month in question times the rate agreed
                            by the parties in Exhibit "A" to the Local
                            Interconnection Agreement.

TELMEX shall not include the following traffic in the estimate of the unbalance:

a.    The traffic originated in MAXCOM's numbers that correspond to Customers'
      Attention Center, commonly named "Call Centers.

b.    The traffic generated by customers allocated to the new series that MAXCOM
      put into service. A new series shall be the one that starts to be used for
      to the generation of the Local traffic of MAXCOM's users, subsequent to
      the date when this document is executed.

c.    The traffic generated by MAXCOM's new customers who have one or more links
      (E1).

The exceptions indicated in the foregoing subparagraphs shall apply, provided
however, the result of the unbalance obtained does not go against Telmex, in
which case the parties shall make the adjustments required to maintain the
unbalance below the threshold agreed upon.

In case any of the events in preceding subparagraphs (b) and (c) takes place,
TELMEX shall not take into account the pertinent traffic during the following
180 days, counted as of the date when MAXCOM gives written notice of the
existence of such event to estimate the unbalance. It shall be understood that
the changes of phone number or firm name are not deemed as new customers.

            THIRD CLAUSE. OFFSETTING. During each invoicing period, the parties
hereto bind to offset to each other the considerations that they may owe each
other due to the Local Interconnection Switching Services in a reciprocal and
symmetric manner, provided however there is an Unbalance that exceeds the
threshold of 18% (eighteen percent) which equals considerations of 59% and 41%.
As of January the 1st of 2005, and in the future, until the parties execute a
new Amending Agreement to Exhibit "B", the unbalance threshold shall be of 15%
(fifteen percent) which equals considerations of 57.5% and 42.5%, and shall be
applied

<PAGE>

                                                                               4

during the life of the Local Interconnection Master Agreement executed
by and between MAXCOM and TELMEX, and of this Offsetting Agreement.

For purposes of this Offsetting Agreement and of the Local Interconnection
Master Agreement executed by and between MAXCOM and TELMEX, the parties agree
that the offsetting shall be understood as the discharge of debts between the
parties derived from the reciprocal supply of the Local Interconnection
Switching Services, provided however the Unbalance falls within the threshold in
question.

Both parties agree that the aforesaid threshold shall be reviewed as of
September the 1st of 2005, according to the behavior of traffic from the period
that starts as of the date when the Local Interconnection Master Agreement
executed by and between MAXCOM and TELMEX becomes effective.

            FOURTH CLAUSE. PAYMENT OF CONSIDERATIONS DUE TO THE UNBALANCE.

The parties agree that they shall not pay to each other any consideration
whenever the Unbalance is no greater than the threshold mentioned in the third
clause of this Offsetting Agreement.

The Parties agree that in case the Unbalance is greater than the thresholds set
forth in the preceding Third Clause, the parties shall be bound to pay the
considerations under their care for the pertinent period in full, without any
offsetting. The purpose of this last provision is to discourage undue practices
in Interconnection matters, as well as practices that tend to obtain unjustified
advantages from this Offsetting Agreement.

The parties agree that in case they would be bound to pay either chargeable to,
or in favor of, any of the parties under the terms hereunder, they shall be
subject to the terms, conditions and rates specified in the Fourth Clause of the
Local Interconnection Agreement and the Exhibit "A" thereto.

            FIFTH CLAUSE. OFFSETTING DUE TO CALLS MADE TO INTERNET SERVICE
PROVIDERS. Both parties agree that all the calls originated in any of the
networks which destination is an Internet Service Provider, they shall offset
the considerations derived in 100% (one hundred percent), this is, both TELMEX
and MAXCOM release each other from any obligation to pay the other party that
results due to the traffic of calls indicated in this paragraph. Therefore, the
parties agree that the traffic of interconnection that corresponds to the calls
destined to an Internet Service Provider shall not be included in order to
estimate the Unbalance indicated in the second clause hereunder.

Likewise, both parties bind themselves to inform to the other party the phone
numbers contracted with an Internet Service Provider and, in case any of the
parties becomes aware that any of these phone numbers have not been informed, it
shall

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                                                                               5

immediately proceed to make the pertinent processes so that these numbers become
part of the offsetting described in the above clauses hereunder. The party to
whom such phone numbers are allocated contracted by an Internet Service Provider
shall register such phone numbers in its invoicing system within 5 (five)
business days following the date when the other party informs of such event, at
the latest.

            SIXTH CLAUSE. MECHANISMS FOR AUDITING AND MONITORING. PENALTIES. In
order to prevent, detect and avoid fraudulent practices in interconnection
matters, the parties hereto shall observe the terms and conditions agreed upon
in Exhibit 18.11 to the Local Interconnection Agreement executed by and between
MAXCOM and TELMEX; this mechanism shall also apply for purposes of the
provisions of the Eleventh Clause hereunder.

            SEVENTH CLAUSE. GROUNDS TO SUBSTITUTE THE OFFSETTING AGREEMENT.
Notwithstanding the provisions of the sixth clause hereunder, or the provisions
of the Local Interconnection Agreement, the parties agree that this Offsetting
Agreement shall be substituted with Exhibit "B bis", in case any of the
following actions in the exchange of traffic under this Offsetting Agreement
take place:

a)    The change of number of origin.

b)    The alteration to the type of traffic (converting National Long Distance,
      International Long Distance of Mobile Local Traffic into Fixed Local
      Traffic).

c)    The delivery of the traffic generated by other operator, and whenever such
      traffic has not been carried using the Local Transit Services foreseen in
      the Local Interconnection Agreement.

d)    The traffic originated by any of the parties in a Group of Local Service
      Exchanges different to the exchanges where said traffic is delivered.

In order to make such substitution, the parties agree to previously observe the
procedure set forth in the nineteenth clause of the Local Interconnection
Service Agreement.

            EIGHTH CLAUSE. LONG DURATION CALLS. In case the Unbalance for any
monthly period exceeds 18% (eighteen percent), or 15% (fifteen percent) of the
unbalance thresholds, as the case may be, as set forth in the Third Clause
hereunder, the parties agree to carry out the following:

8.1 The duration of all the calls included in the monthly period in which the
Unbalance exceeded 18% (eighteen percent) or 15% (fifteen percent), as
applicable, shall be analyzed.

<PAGE>

                                                                               6

8.2 The percentage of calls which duration is equal or greater to 5 (five)
minutes shall be determined.

8.3 In case the percentage of calls indicated in subparagraph 8.2 exceeds 20%
(twenty percent) of the total amount of the calls included in the pertinent
monthly period, the parties agree to offset 100% (one hundred percent) of the
amount of minutes that correspond to the calls that exceed the aforesaid 20%
(twenty percent). To carry out the cited offsetting, the average of minutes of
the Long Duration calls must be obtained, and the result shall be multiplied
times the number of calls that exceed 20%. The offsetting indicated in this
subparagraph shall be carried out, provided however it is proven that these
calls are local calls.

8.4 In case the percentage of calls indicated in subparagraph 8.2 is lower or
equal to 20% (twenty percent) of the total calls included in the pertinent
monthly period, the parties shall pay the considerations according to the
contents of the fourth clause hereunder.

8.5 In case the event foreseen in subparagraph 8.3 takes place, the parties
shall estimate again the Unbalance for the pertinent monthly period in
accordance to the provisions of the second clause hereunder, without including
the minutes that correspond to the calls that exceed 20% (twenty percent)
indicated in subparagraph 8.3.

8.6 If, subsequently to the recalculation of the Unbalance made according to the
provisions of subparagraph 8.5 above, the percentage of the Unbalance for the
pertinent monthly period continues to exceed 20% (twenty percent), the parties
shall pay the considerations according to the provisions set forth of the fourth
clause hereunder.

            NINTH CLAUSE. LIFE OF THE AGREEMENT. The parties agree that this
Offsetting Agreement shall become effective as of the date of its execution, and
shall remain in force as long as the Local Interconnection Agreement remains
effective. To renew it, the terms and conditions of subparagraph 16.2 of the
Local Interconnection Agreement shall be observed.

            TENTH CLAUSE. TREATMENT AS MOST FAVORED NATION. Notwithstanding any
provision to the contrary set forth in this Exhibit, the Parties agree that in
case that (i) derived from any agreement or out-of-court settlement executed by
TELMEX with any third party, TELMEX grants to said third party an Unbalance
threshold greater to 18% (eighteen percent) until December the 31st of 2004, and
greater to 15% (fifteen percent) as of January the 1st of 2005, and
subsequently, and until a new agreement is executed in such regard between the
parties, or (ii) if a third party obtains from TELMEX an Unbalance threshold
greater to 18% (eighteen percent) up to December the 31st of 2004, and greater
to 15% (fifteen percent) as of January the 1st of 2005 and subsequently, and
until a new agreement is executed in such regard between the parties derived
from an order or

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                                                                               7

a judicial decision that becomes final and unappealable rendered in any
instance, or derived from a decision or administrative act that becomes final
and unappealable, rendered by any governmental authority voluntarily or to
comply with an order or judicial decision that becomes final and unappealable,
rendered in any instance, then the Unbalance threshold indicated hereunder shall
be adjusted to reflect the result of granting MAXCOM the benefits that TELMEX
would have granted to the third party in question, as result of the
materialization of any of the events set forth under subparagraphs (i) and (ii)
of this Clause. TELMEX shall grant MAXCOM the same benefits that it would have
granted to such third party, starting from the moment when, derived from any
agreement or out-of-court settlement executed by TELMEX with any third party,
TELMEX grants to such third party an Unbalance threshold greater to the
threshold agreed hereunder with MAXCOM or, from the moment when, derived from an
order or judicial decision that becomes final and unappealable, rendered in any
instance or derived from a decision or administrative act that becomes final and
unappealable rendered by any governmental authority, voluntarily or to comply
with an order or judicial decision that becomes final and unappealable, rendered
in any instance, a third party obtains from TELMEX an Unbalance threshold
greater to the threshold agreed herein with MAXCOM.

            ELEVENTH CLAUSE.- TERMINATION OF INTERNATIONAL TRAFFIC.

            In case TELMEX verifies, once the mechanism described in the Sixth
Clause hereunder is followed, that MAXCOM, directly and due to causes
attributable to Maxcom or to a third party, acting with Maxcom's assistance,
carries out the Termination of International Traffic in Offsetting Agreements,
TELMEX shall be entitled to collect the following from MAXCOM:

      (i)   The amount that results from multiplying the 2004 Interconnection
            Rate (agreed in Number 1 of the First Clause hereunder) times the
            number of minutes of Termination of International Traffic in
            Offsetting Agreements, plus the amounts expressed in the following
            subparagraph.

      (ii)  The amount that results from multiplying the rate of the Second
            Payment of the Updated Basis Rate, this is, USD$0.0053 (fifty-three
            ten-thousandth of dollar of the United States of America) times the
            number of minutes of Termination of International Traffic in
            Offsetting Agreements or any other rate agreed upon by the parties
            for such purpose, either hereunder or in other agreements, whichever
            is lesser.

In case the direct liability of MAXCOM in handling the traffic indicated in this
Clause is proven, the minutes of traffic shall not be counted in order to
estimate the unbalance.

<PAGE>

                                                                               8

            TWELFTH CLAUSE. CONTRACTUAL ACKNOWLEDGMENT.- This Amending Agreement
represents the full, entire and sole expression of the decision taken by TELMEX
and MAXCOM, and thus any accord, agreement, covenant, document, notice or offer
made prior to this Amending Agreement, whether verbal or written, and which
relates directly or indirectly to the subject matter of this instrument, shall
become henceforth null and void.

            THIRTEENTH CLAUSE. JURISDICTION. The parties hereto agree that in
case of a dispute regarding the construction or performance of this Offsetting
Agreement, said dispute shall be settled pursuant to the provisions of the
Nineteenth Clause of the Local Interconnection Agreement signed by the parties.

            The representatives of the parties, duly authorized, signed this
Exhibit in three counterparts in Mexico City, Federal District, on August the
5th of 2004.

           TELEFONOS DE MEXICO,                 MAXCOM TELECOMUNICACIONES,
               S.A. DE C.V.                             S.A. DE C.V.

                 (Signed)                               (Signed)
   ----------------------------------      ----------------------------------
      By: Sergio Rodriguez Molleda            By: Rogelio Espinosa Cantellano
         Legal Representative.                     Legal Representative.

                WITNESS                                 WITNESS

         (Illegible signature)                    (Illegible signature)
     ------------------------------           -------------------------------EXHIBIT 4.M

Table of Contents

BLAKE DAWSON WALDRON

L A W Y E R S

 

Lihirian Equity

Settlement Agreement

Mineral Resources Development Company Limited

Mineral Resources Lihir Limited

Lihir Management Company Limited

European Investment Bank

      

      

      

      

4th Floor

Mogoru Moto Building

(PO Box 850)

Port Moresby

Telephone: (675) 309 2000

Fax: (675) 309 2099

 

      

      

      

 
 
 
 

Ref: DCF/RAF:020411

020411raflihir settlement agreement ex

version.doc

© Blake Dawson Waldron 2004

 

Table of Contents

CONTENTS

	 	 	 	 	 	 	 	 	 
	CONTENTS	 	 	i	 
	 	 	 	 	 
	 	 	 	 
	1.	 	INTERPRETATION	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	 	1.1	 	Definitions
	 	 	2	 
	 	 	1.2	 	Rules for interpreting this agreement
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	2.	 	CONDITION PRECEDENT TO PERFORMANCE	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	 	2.1	 	Obligations subject to condition
	 	 	3	 
	 	 	2.2	 	Condition
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	3.	 	INVESTMENT ACCOUNT	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	 	3.1	 	Establishment of the Investment Account
	 	 	3	 
	 	 	3.2	 	Approval of number of MRL Second Sale Shares
	 	 	4	 
	 	 	3.3	 	Surplus on sale of MRL Second Sale Shares
	 	 	4	 
	 	 	3.4	 	Constitution of the Lihirian Equity Committee
	 	 	4	 
	 	 	3.5	 	Information
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	4.	 	UNDERTAKINGS BY MRL	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	 	4.1	 	Sell-down of MRL First Sale Shares
	 	 	4	 
	 	 	4.2	 	Sell-down of MRL Second Sale Shares
	 	 	4	 
	 	 	4.3	 	Amendment of MRDC On-Lending Agreement
	 	 	5	 
	 	 	4.4	 	Application of other amounts
	 	 	5	 
	 	 	4.5	 	Standing sale instructions
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	5.	 	UNDERTAKINGS BY MRDC	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	 	 	5.1	 	Release of MRL from certain obligations
	 	 	6	 
	 	 	5.2	 	Amendment of MRDC On-Lending Agreement
	 	 	6	 
	 	 	5.3	 	Amendment of EIB Finance Contract
	 	 	6	 
	 	 	5.4	 	Application of other amounts
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	6.	 	UNDERTAKINGS BY LGL	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	 	 	6.1	 	Community Support Grant
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	7.	 	UNDERTAKINGS BY EIB	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	 	 	7.1	 	Amendment of EIB Finance Contract
	 	 	7	 
	 	 	7.2	 	Partial release of MRL Share Mortgage
	 	 	7	 
	 	 	7.3	 	Discharge of MRL Share Mortgage
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	8.	 	CONFIDENTIALITY AND ANNOUNCEMENTS	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	 	 	8.1	 	General
	 	 	7	 
	 	 	8.2	 	Lihirian Equity Committee
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	9.	 	TRUSTEE PROVISIONS	 	 	8	 

i

Table of Contents

	 	 	 	 	 	 	 	 	 
	10.	 	NOTICES	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	11.	 	AMENDMENT AND ASSIGNMENT	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	12.	 	GENERAL	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	 	 	12.1	 	Governing law
	 	 	10	 
	 	 	12.2	 	Liability for expenses
	 	 	10	 
	 	 	12.3	 	Giving effect to this agreement
	 	 	10	 
	 	 	12.4	 	Waiver of rights
	 	 	10	 
	 	 	12.5	 	Operation of this agreement
	 	 	10	 
	 	 	12.6	 	Counterparts
	 	 	10	 
	 	 	12.7	 	Attorneys
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ANNEXURE A	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	Amendment to MRDC On-Lending Agreement	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	ANNEXURE B	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	Amendment to EIB Finance Contract	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	ANNEXURE C	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	Partial Release of Security	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ANNEXURE D	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	Release of Security	 	 	16	 

ii

Table of Contents

LIHIRIAN EQUITY SETTLEMENT AGREEMENT

	 	 	 	 	 
	DATE
   
6  DECEMBER,   2004

	 	 		 
	 
	 	 	 	 
	PARTIES
	 	 	 	 

Mineral Resources Development Company Limited of First Heritage Centre, Islander Way,
Waigani, NCD (“MRDC”)

Mineral Resources Lihir Limited of First Heritage Centre, Islander Way, Waigani, NCD (“MRL”)

Lihir Management Company Limited as agent for and on behalf of Lihir Gold Limited of Lihir
Island, New Ireland Province (“LGL”)

European Investment Bank of 100 Boulevard Konrad Adenauer, Luxembourg (“EIB”)

RECITALS

	A.	 	MRL holds 77,169,431 ordinary shares in LGL (representing 6.01% of the issued share capital)
on trust for the beneficiaries under the Trust (as defined below), who are Lihirian
landowners.
	 
	B.	 	MRL financed its acquisition of shares in LGL during 1995 in part using funds borrowed by
MRDC from EIB under the EIB Finance Contract, which were on-lent by MRDC to MRL under the MRDC
On-Lending Agreement.
	 
	C.	 	In the absence of dividend income from LGL, MRL has not been able to make repayments of
principal and payments of interest to MRDC under the MRDC On-Lending Agreement, and MRL has
not paid management fees and associated administrative costs to MRDC.
	 
	D.	 	Notwithstanding the non-payments referred to in Recital C, MRDC has made repayments of
principal due on 15 December 2001 and 15 December 2002 to EIB and paid interest to EIB under
the EIB Finance Contract.
	 
	E.	 	EIB agreed to reschedule to 30 June 2004 the instalment of principal and related interest
which was due to be repaid by MRDC to EIB on 15 December 2003 (the “15 December 2003
instalment”).
	 
	F.	 	LGL has paid MRDC from the LGL Community Support Grant (as defined below) an amount equal to
the 15 December 2003 instalment and MRDC has paid this amount to EIB on 30 June 2004.
	 
	G.	 	EIB has agreed to waive any penalty interest payment, which would otherwise have been due
from MRDC as a result of the late payment of the 15 December 2003 instalment.
	 
	H.	 	It is intended that the instalment of principal and related interest due to be repaid to EIB
on 15 December 2004 will come partly from the residual amount of LGL’s community support
grant, and partly from a sale by MRL of sufficient of its shares in LGL to meet the shortfall
between LGL’s community support grant and the amount required for the
repayment of this instalment of principal to EIB, in the manner provided for in this
agreement.

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	I.	 	Another purpose of this agreement is to establish a means for MRDC to meet its liability to
repay the further instalments of principal and pay interest under the EIB Finance Contract,
through the setting up and funding of an investment account in the name of EIB. This purpose
is dependent upon the parties mutually carrying out their undertakings in this agreement.

OPERATIVE PROVISIONS

	1.	 	INTERPRETATION

	1.1	 	Definitions
	 
	 	 	The following definitions apply in this agreement.
	 
	 	 	“Completion of Selldown” has the meaning given in clause 4.1(d).
	 
	 	 	“EIB Finance Contract” means the Finance Contract dated 28 December 1995 (as amended)
between EIB (as lender) and MRDC (as borrower).
	 
	 	 	“Euros” means the currency of the European Union.
	 
	 	 	“Investment Account” means a Euro-denominated bank account held by EIB in accordance with
the terms of this agreement.
	 
	 	 	“LGL Community Support Grant” means the voluntary grant paid and to be paid by LGL to MRL
under clause 6.1(b).
	 
	 	 	“Lihirian Equity Committee” means the committee referred to in clause 3.4 and schedule 1.
	 
	 	 	“MRDC On-Lending Agreement” means the On-Lending Agreement dated 12 July 1996 between MRDC
(as lender) and MRL (as borrower).
	 
	 	 	“MRL First Sale Shares” means such number of ordinary shares in LGL the net proceeds of sale
of which together with the balance of the LGL Community Support Grant is sufficient for MRL
to meet the repayment of principal and payment of interest due to MRDC on 15 December 2004.
	 
	 	 	“MRL Share Mortgage” means the Share Mortgage (LGL Shares) dated 14 January 1998 between MRL
(as mortgagor) and EIB (as mortgagee) which is registered in Papua New Guinea as company
charge No. 10991.
	 
	 	 	“MRL Second Sale Shares” means such number of ordinary shares in LGL the net proceeds of
sale of which together with interest earned thereon is calculated as sufficient to repay the
outstanding balance of the loan made under the EIB Finance Contract and related interest.
	 
	 	 	“Trust” means the trust known as the Lihirian Equity Trust constituted by the Trust Deed.
	 
	 	 	“Trust Deed” means the trust deed dated 14 August 1997 between Robin Moaina (as settlor) and
MRL (as trustee).
	 
	 	 	“Trust Fund” means the assets of the Trust.

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Table of Contents

	1.2	 	Rules for interpreting this agreement
	 
	 	 	Headings are for convenience only, and do not affect interpretation. The following rules
also apply in interpreting this agreement, except where the context makes it clear that a
rule is not intended to apply.

	 	(a)	 	A reference to:

	 	(i)	 	a document or agreement, or a provision of a document or
agreement, is to that document, agreement or provision as amended,
supplemented, replaced or novated;
	 
	 	(ii)	 	a party to this agreement or to any other document or agreement
includes a permitted substitute or a permitted assign of that party;
	 
	 	(iii)	 	a person includes any type of entity or body of persons,
whether or not it is incorporated or has a separate legal identity, and any
executor, administrator or successor in law of the person; and
	 
	 	(iv)	 	anything (including a right, obligation or concept) includes
each part of it.

	 	(b)	 	A singular word includes the plural, and vice versa.
	 
	 	(c)	 	A word which suggests one gender includes the other genders.
	 
	 	(d)	 	If a word is defined, another part of speech has a corresponding meaning.

	2.	 	CONDITION PRECEDENT TO PERFORMANCE

	2.1	 	Obligations subject to condition
	 
	 	 	The obligations of the parties under clauses 3, 4, 5, 6 and 7 do not become binding until
the conditions set out in clause 2.2 are satisfied.

	2.2	 	Condition
	 
	 	 	The conditions referred to in clause 2.1 are that:

	 	(a)	 	the Bank of Papua New Guinea grants exchange control authority under the
Central Banking (Foreign Exchange and Gold) Regulation for the transactions
contemplated by this agreement; and
	 
	 	(b)	 	MRDC notifies the other parties that it and MRL have obtained all other
approvals necessary to enter into this agreement and perform the transactions
contemplated by its terms (or alternatively that they require no other approvals to do
so).

	3.	 	INVESTMENT ACCOUNT

	3.1	 	Establishment of the Investment Account

	 	(a)	 	EIB will open and thereafter maintain the Investment Account as an
interest-bearing bank account denominated in Euros with UBS Warburg in London in the
name “European Investment Bank-Lihirian Investment Account” for the purpose of
receiving payments under clauses 4.2(d) and 4.5(d) of this agreement.

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	 	(b)	 	All interest accruing on the Investment Account will be credited to the
account.
	 
	 	(c)	 	The signatories on the Investment Account will be representatives of EIB.

	3.2	 	Approval of number of MRL Second Sale Shares
	 
	 	 	At least 12 hours before giving instructions to sell the MRL Second Sale Shares, MRL must
notify EIB by fax with a pro-forma calculation of the number of the MRL Second Sale Shares.
EIB may (but is not obliged to) approve the pro forma calculation of the number of the MRL
Second Sale Shares, such approval to be signified by notice by fax to MRDC. Once EIB has
given such approval, the number of MRL Second Sale Shares can be varied and finalised by MRL
in consultation with its broker.

	3.3	 	Surplus on sale of MRL Second Sale Shares
	 
	 	 	If after completion of the sale of the MRL Second Sale Shares the parties agree that there
are any surplus funds not required for credit to the Investment Account in order to
establish a balance sufficient for the purpose contemplated in the definition of MRL Second
Sale Shares, the surplus must be retained by the broker and paid to MRL to be held in
accordance with the terms of the Trust.

	3.4	 	Constitution of the Lihirian Equity Committee
	 
	 	 	A Lihirian Equity Committee is established as provided in schedule 1.

	3.5	 	Information
	 
	 	 	EIB will provide MRDC with copies of any information, such as account statements, which it
receives in relation to the Investment Account.

	4.	 	UNDERTAKINGS BY MRL

	4.1	 	Sell-down of MRL First Sale Shares

	 	(a)	 	MRL will forthwith engage a broker to sell the MRL First Sale Shares on its
behalf prior to 15 December 2004.
	 
	 	(b)	 	MRL will seek to obtain the best price reasonably obtainable on market for the
MRL First Sale Shares.
	 
	 	(c)	 	The instructions given to the broker pursuant to paragraph (a) must be approved
by the Lihirian Equity Committee and permit the sale of the number of shares required
by the definition of MRL First Sale Shares.
	 
	 	(d)	 	The net proceeds of sale of the MRL First Sale Shares will be paid to MRDC, and
MRDC will apply these funds to repayment of the instalment of principal and related
interest due to EIB on 15 December 2004 under the EIB Finance Contract.

	4.2	 	Sell-down of MRL Second Sale Shares

	 	(a)	 	MRL will forthwith engage a broker to sell on its behalf, and to accept (as its
sale’s agent) payment of the purchase price into its broker’s bank account for, the MRL
Second Sale Shares and may instruct that broker to sell the MRL Second Sale

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	 	 	 	Shares in one or more lots no later than 7 December 2005 or such later date as may be agreed by
EIB.
	 
	 	(b)	 	MRL will seek to obtain the best price reasonably obtainable on market for the
MRL Second Sale Shares.
	 
	 	(c)	 	The instructions given to the broker pursuant to paragraph (a) must be approved
by the Lihirian Equity Committee and reflect the purpose for which the MRL Second Sale
Shares are to be sold.
	 
	 	(d)	 	MRL will instruct the broker to pay directly from the broker’s bank account
into the Investment Account, on the same day as the MRL Second Sale Shares are sold,
the net proceeds of sale of the MRL Second Sale Shares (less any surplus agreed
pursuant to clause 3.3 above) with such net proceeds having first been converted into
Euros.
	 
	 	(e)	 	For the purposes of this agreement, “Completion of the Selldown” occurs when
MRL has sold the MRL Second Sale Shares.

	4.3	 	Amendment of MRDC On-Lending Agreement
	 
	 	 	MRL agrees with MRDC to amend the MRDC On-Lending Agreement in the manner set out
in Annexure A forthwith after execution of this document.

	4.4	 	Application of other amounts
	 
	 	 	MRL agrees to apply the amounts received from LGL referred to in clause 6.1 only for the
purposes described in that clause.

	4.5	 	Standing sale instructions

	 	(a)	 	Notwithstanding the provisions of clauses 4.1 and 4.2, MRL will, after
execution of this document, give standing instructions to the broker referred to in
clause 4.1(a) (before the sale of the MRL First Sale Shares) or clause 4.2(a) (after
the sale of the MRL First Sale Shares) to sell a number of its ordinary shares in LGL
in circumstances where both:

	 	(i)	 	the net proceeds of sale of the shares together with interest
earned thereon is calculated as sufficient to repay the outstanding balance of
the loan made under the EIB Finance Contract and related interest; and
	 
	 	(ii)	 	the number of shares that would remain held by MRL after selling
the shares referred to in paragraph (i) would equal or exceed 5.2% of the total
issued ordinary shares of LGL.

	 	(b)	 	The terms of the standing instructions referred to in paragraph (a) must be
approved by the Lihirian Equity Committee.

	 	(c)	 	Prior to the sale of the MRL First Sale Shares, the calculation referred to in
paragraph (a) must take account of the availability of the balance of the LGL Community
Support Grant.

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	 	(d)	 	If the conditions referred to in paragraph (a) are satisfied, then the proceeds
will be converted into Euros and paid directly from the broker’s bank account into the
Investment Account.
	 
	 	(e)	 	If as a result of a sale of shares in LGL pursuant to this clause 4.5 there are
sufficient funds in the Investment Account for the purpose contemplated in the
definition of MRL Second Sale Shares, any remaining obligation of MRL to sell its
ordinary shares in LGL under clause 4.1 or 4.2 will be taken to have been satisfied.
	 
	 	(f)	 	MRL acknowledges that nothing in this document obliges LGL to issue shares to
MRL including, without limitation, if the circumstances referred to in clause 4.5(a) do
not occur.

	5.	 	UNDERTAKINGS BY MRDC

	5.1	 	Release of MRL from certain obligations
	 
	 	 	Upon Completion of the Selldown, MRDC hereby releases MRL from all liability, whether
arising under the MRDC On-Lending Agreement or otherwise, arising out of the following
obligations:

	 	(a)	 	all principal and interest payments due or made up to and including 15 December
2002 (inclusive); and
	 
	 	(b)	 	management fees and associated administrative costs incurred prior to
establishment of the Investment Account.

	5.2	 	Amendment of MRDC On-Lending Agreement
	 
	 	 	MRDC agrees with MRL to amend the MRDC On-Lending Agreement in the manner set out in
Annexure A forthwith after execution of this document.

	5.3	 	Amendment of EIB Finance Contract
	 
	 	 	MRDC agrees with EIB to amend the EIB Finance Contract in the manner set out in Annexure B
forthwith after execution of this document.

	5.4	 	Application of other amounts
	 
	 	 	MRDC agrees to apply the amounts received from MRL referred to in clause 6.1 only for the
purposes described in that clause.

	6.	 	UNDERTAKINGS BY LGL

	6.1	 	Community Support Grant
	 
	 	 	LGL agrees to give to MRL the following amounts by way of a voluntary community support
grant (of which the parts referred to in paragraphs (a) and (b)(i) have already been paid):

	 	(a)	 	K3,532,759 (which MRL directs be paid to MRDC) representing 50% of the debt
incurred by MRL to MRDC resulting from the repayment made to EIB in December 2002; and

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	 	(b)	 	a total of US$2,635,000 to be paid in the following order to the extent that
this amount is sufficient:

	 	(i)	 	by 30 June 2004, an amount equal to the outstanding amount of
principal and interest payable by MRDC under the EIB Finance Contract up to 30
June 2004; and
	 
	 	(ii)	 	by 15 December 2004, the balance applied to the principal and
interest payable under the EIB Finance Contract up to 15 December 2004.

	7.	 	UNDERTAKINGS BY EIB

	7.1	 	Amendment of EIB Finance Contract
	 
	 	 	EIB agrees with MRDC to amend the EIB Finance Contract substantially in the manner set out
in Annexure B forthwith after execution of this document.

	7.2	 	Partial release of MRL Share Mortgage
	 
	 	 	Upon the sale of the MRL First Sale Shares and upon each sale of a portion of the MRL Second
Sale Shares (if these shares are sold in more than one lot) other than the last sale, EIB
will release the MRL First Sale Shares and (as the case may be) the number of MRL Second
Sale Shares comprising the portion that is being sold at that time from the MRL Share
Mortgage in the form of the Partial Release of Security set out in Annexure C.

	7.3	 	Discharge of MRL Share Mortgage
	 
	 	 	Upon the sale or last sale (as the case may be) of the MRL Second Sale Shares, the net sale
proceeds of which, once deposited into the Investment Account (and aggregated with any
existing balance on the Investment Account), are sufficient for the purpose contemplated in
the definition of MRL Second Sale Shares, EIB will release all the Mortgaged Property (as
defined) from the MRL Share Mortgage and discharge MRL and MRDC from all liability under the
MRL Share Mortgage (save for the liabilities assumed by MRDC and MRL under Article 7 of the
MRL Share Mortgage) in the form of the Release of Security set out in Annexure D.

	8.	 	CONFIDENTIALITY AND ANNOUNCEMENTS

	8.1	 	General
	 
	 	 	Each party must treat the existence and terms of this agreement confidentially and no
announcement or communication relating to the negotiations of the parties, the existence,
subject matter or terms of this agreement or the manner of its implementation may be made or
authorised by a party:

	 	(a)	 	unless the other parties have first given their written approval;
	 
	 	(b)	 	the disclosure is to the party’s employees, consultants, professional advisers,
bankers, financial advisers or financiers or to a person whose consent is required
under this agreement or for a transaction contemplated by it and those persons
undertake to keep confidential any information so disclosed; or

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	 	(c)	 	the disclosure is made to comply with any applicable law or requirement of any
government agency or regulatory body (including any relevant stock exchange).

	8.2	 	Lihirian Equity Committee
	 
	 	 	Without limiting the generality of clause 8.1, the parties acknowledge that the activities
of the Lihirian Equity Committee are subject to the provisions of clause 8.1.

	9.	 	TRUSTEE PROVISIONS
	 
	 	 	MRL (both in its own right and as trustee of the Trust) represents and warrants to the other
parties that:

	 	(a)	 	(status of Trust) the Trust is duly constituted and has not terminated, nor has
the date or any event occurred for the vesting of the Trust Fund;
	 
	 	(b)	 	(status as trustee) it is the sole trustee of the Trust, it has not given any
notice of resignation and no action has been taken to remove it or to appoint an
additional trustee of the Trust;
	 
	 	(c)	 	(trust power) it has full legal capacity and power under the Trust Deed to:

	 	(i)	 	own the Trust Fund and carry on the business of the Trust as it
is now being conducted; and
	 
	 	(ii)	 	enter into this agreement and to carry out the transactions that
this agreement contemplates,

	 	 	 	as trustee of the Trust;
	 
	 	(d)	 	(trust authority) all action that is necessary or desirable under the Trust
Deed or at law to:

	 	(i)	 	authorise its entry into this agreement and its carrying out the
transactions that this agreement contemplates;
	 
	 	(ii)	 	ensure that this agreement is legal, valid and binding on it as
trustee of the Trust and admissible in evidence against it in that capacity; and
	 
	 	(iii)	 	enable it to properly carry on the business of the Trust,

	 	 	 	has been taken;
	 
	 	(e)	 	(benefit of beneficiaries) it is entering into this agreement as part of the
proper administration of the Trust, for the commercial benefit of the Trust and for the
benefit of the beneficiaries of the Trust;
	 
	 	(f)	 	(right of indemnity):

	 	(i)	 	it has the right to be fully indemnified out of the Trust Fund in
relation to this agreement, and the right has not been modified, released or
diminished in any way;
	 
	 	(ii)	 	the Trust Fund is sufficient to satisfy that right in full;

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	 	(iii)	 	it has not released or disposed of its equitable lien over the
Trust Fund; and
	 
	 	(iv)	 	it has the right to be fully indemnified by the beneficiaries in
relation to its obligations under this agreement;

	 	(g)	 	(terms of Trust) it has disclosed to the other parties full particulars of the
Trust and of any other trust or fiduciary relationship affecting the Trust Fund and,
without limiting this, has given the other parties a complete and up-to-date copy of
the Trust Deed;
	 
	 	(h)	 	(no breach) it is not in breach of any of its obligations as trustee of the
Trust, whether under the Trust Deed or otherwise; and
	 
	 	(i)	 	(no resettlement) no part of the Trust Fund has been resettled, set aside or
transferred to any other person, whether as trustee or otherwise, or mixed with any
other property.

	10.	 	NOTICES

	 	(a)	 	A notice, consent or other communication under this agreement is only effective
if it is in writing, signed and either left at the addressee’s address or sent to the
addressee by mail or fax. If it is sent by mail, it is taken to have been received 3
working days after it is posted. If it is sent by fax, it is taken to have been
received when the addressee actually receives it in full and in legible form.
	 
	 	(b)	 	A person’s address and fax number are those set out below, or as the person
notifies the sender:

	 	 	 	 	 
	 

	 	MRDC Address
	 	1st Floor, First Heritage Centre, Waigani Drive, Waigani NCD
	 

	 	Postal Address:
	 	PO Box 1076, Port Moresby, NCD, Papua New Guinea
	 

	 	Fax number:
	 	+ 675 325 2633
	 
	 	 	 	 
	 

	 	MRL Address:
	 	1st Floor, First Heritage Centre, Waigani Drive, Waigani NCD
	 

	 	Postal Address:
	 	PO Box 1076, Port Moresby, NCD, Papua New Guinea
	 

	 	Fax number:
	 	+ 675 325 2633
	 
	 	 	 	 
	 

	 	LGL Address:
	 	7th Floor, Pacific Place, corner Douglas Street and Champion Parade, Port Moresby NCD
	 

	 	Postal Address:
	 	PO Box 789, Port Moresby, NCD
	 

	 	Fax number:
	 	+ 675 321 4705
	 
	 	 	 	 
	 

	 	EIB Address:
	 	100 Boulevard Konrad Adenauer
	 

	 	Postal Address:
	 	L-2950 Luxembourg
	 

	 	Fax number:
	 	+352 43 77 04

	11.	 	AMENDMENT AND ASSIGNMENT

	 	(a)	 	This agreement can only be amended, supplemented, replaced or novated by
another agreement signed by the parties.
	 
	 	(b)	 	A party may only dispose of, declare a trust over or otherwise create an
interest in its rights under this agreement with the consent of each other party.

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	12.	 	GENERAL

	12.1	 	Governing law
	 
	 	 	This agreement is governed by the law in force in Papua New Guinea.

	12.2	 	Liability for expenses
	 
	 	 	Each party must pay its own expenses incurred in negotiating,
executing, stamping and registering this agreement.

	12.3	 	Giving effect to this agreement
	 
	 	 	Each party must do anything (including execute any document), and must ensure that its
employees and agents do anything (including execute any document), that the other party may
reasonably require to give full effect to this agreement.

	12.4	 	Waiver of rights
	 
	 	 	A right may only be waived in writing, signed by the party giving the waiver, and:

	 	(a)	 	no other conduct of a party (including a failure to exercise, or delay in
exercising, the right) operates as a waiver of the right or otherwise prevents the
exercise of the right;
	 
	 	(b)	 	a waiver of a right on one or more occasions does not operate as a waiver of
that right if it arises again; and
	 
	 	(c)	 	the exercise of a right does not prevent any further exercise of that right or
of any other right.

	12.5	 	Operation of this agreement

	 	(a)	 	This agreement contains the entire agreement between the parties about the
particular matters it covers. Any previous understanding, agreement, representation or
warranty relating to those matters (in particular clauses 1,2,3 and 4 of the Heads of
Agreement dated 28 March 2003 between some of the parties) is replaced by this
agreement and has no further effect.
	 
	 	(b)	 	Any right that a person may have under this agreement is in addition to, and
does not replace or limit, any other right that the person may have.
	 
	 	(c)	 	Any provision of this agreement which is unenforceable or partly unenforceable
is, where possible, to be severed to the extent necessary to make this agreement
enforceable, unless this would materially change the intended effect of this agreement.

	12.6	 	Counterparts
	 
	 	 	This agreement may be executed in counterparts.

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	12.7	 	Attorneys
	 
	 	 	Each person who executes this agreement on behalf of a party under a power of attorney
declares that he or she is not aware of any fact or circumstance that might affect his or
her authority to do so under that power of attorney.

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SCHEDULE 1

(clause 3.4)

PURPOSE AND RULES OF THE LIHIRIAN EQUITY COMMITTEE

	1.	 	PURPOSE OF THE LIHIRIAN EQUITY COMMITTEE
	 
	 	 	The purposes of the Lihirian Equity Committee are to:

	 	(a)	 	provide a means for MRL, MRDC and LGL to approve the terms of the sale of the
MRL First Sale Shares and MRL Second Sale Shares;
	 
	 	(b)	 	approve the terms of standing instructions for the purpose of clause 4.5;
	 
	 	(c)	 	make requests of and recommendations to EIB in relation to the Investment
Account; and
	 
	 	(d)	 	perform such other activities as may be determined by it from time to time.

	2.	 	REPRESENTATION
	 
	 	 	The Lihirian Equity Committee comprises 3 representatives, one of which is appointed by
notice in writing to MRL by each of:

	 	(a)	 	MRL;
	 
	 	(a)	 	MRDC; and
	 
	 	(b)	 	Lihir Management Company Ltd (in its own right and not as agent for LGL),
	 
	 	(each a “Representative”). The party appointing a Representative may at any time by notice
to MRL revoke the Representative’s appointment and appoint another person as its
Representative instead.

	3.	 	CASUAL APPOINTMENT
	 
	 	 	If a Representative is unable to attend a particular meeting of the Lihirian Equity
Committee, the party which appointed that Representative must by notice in writing to MRL
appoint an alternative Representative to act at the meeting identified in the notice of
appointment. The person so appointed shall have all of the powers and privileges of the
Representative that made the appointment.
	 
	4.	 	PROCEEDINGS OF THE LIHIRIAN EQUITY COMMITTEE
	 
	4.1	 	Mode of meeting
	 
	 	 	The Lihirian Equity Committee may meet in person or by telephone or other instantaneous
means of conferring for the dispatch of business (or by any combination of those means)
which allows each person present to hear and be heard by each other person present, and
adjourn and otherwise regulate its meetings as it determines.
	 

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	4.2	 	Quorum
	 
	 	 	The quorum for a meeting of the Lihirian Equity Committee is all three Representatives
(including any casual appointment made in accordance with paragraph 3).
	 
	4.3	 	Notice of meeting
	 
	 	 	Notice of each meeting of the Lihirian Equity Committee:

	 	(a)	 	must be given to each Representative; and
	 
	 	(b)	 	may be given by telephone or facsimile message.

	4.4	 	Place of meeting
	 
	 	 	Where the Lihirian Equity Committee holds a meeting solely or partly by telephone or other
instantaneous means of conferring, the meeting is to be treated as held at the place at
which at least one of the representatives present at the meeting is physically located as is
agreed by those representatives present at the meeting.
	 
	4.5	 	Period of notice
	 
	 	 	The Lihirian Equity Committee may determine the period of notice (unless waived by a
majority of the representatives to whom notice of a particular meeting is sent) for each
meeting of the Lihirian Equity Committee which, until otherwise determined, is 24 hours.
	 
	4.6	 	Convening of Committee meeting
	 
	 	 	Any Representative may at any time convene a meeting of the Lihirian Equity Committee.
	 
	4.7	 	Unanimous decisions
	 
	 	 	Every question and resolution dealt with at a meeting of the Lihirian Equity Committee is to
be decided by an unanimous vote of the Representatives.
	 
	4.8	 	Written resolution of Representatives
	 
	 	 	If all the Representatives sign a document to the effect that they support a resolution (the
terms of which are set out in the document), a resolution in those terms is for all purposes
treated as having been passed at a duly convened meeting of the Lihirian Equity Committee
held on the date and at the time when the last Representative signs the document.
	 
	4.9	 	Several documents suffice
	 
	 	 	For the purpose of paragraph 4.8:

	 	(a)	 	two or more separate documents in identical terms each of which is signed by
one or more Representatives are treated as one document;
	 
	 	(b)	 	an email or facsimile message containing the text of the document expressed to
have been signed by a Representative and sent to the other Representatives is a
document signed by that Representative at the time of its receipt.
	 
	 	4.10	 	Other procedures

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	 	 	 	Except as provided in this schedule, the Lihirian Equity Committee may determine its own
procedures.

EXECUTED as an agreement.

	 	 	 
	THE COMMON SEAL of Mineral Resources
Development Company Limited, the fixing of
which was witnessed by:
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of director

	 	Signature of director/secretary
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Name
	 
	 	 
	 
	 	 
	 
	 	 
	THE COMMON SEAL of Mineral Resources
Lihir Limited, the fixing of which was
witnessed by:
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of director

	 	Signature of director/secretary
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Name
	 
	 	 
	 
	 	 
	 
	 	 
	THE COMMON SEAL of Lihir Management
Company Limited, the fixing of which was
witnessed by:
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of director

	 	Signature of director/secretary
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Name

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	SIGNED by
an authorised officer of the European
Investment Bank in the presence of:
	 	 
	 

	 	 
	 

	 	Signature of party
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	

	 	 
	Name
	 	 

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ANNEXURE A

Amendment to MRDC On-Lending Agreement

Mineral Resources Lihir Limited

1st Floor, First Heritage Centre

Waigani Drive

Waigani NCD, Papua New Guinea

For the attention of Seno Wekina

	Subject:	 	Lihir Gold Project- On-Lending Agreement dated 12 July 1996

	Re:         	 	Finance Contract between the European Investment Bank and
Mineral Resources Development Company Limited (“MRDC”) and Mineral
Resources Lihir Limited (“MRL”) dated Port Moresby and Luxembourg,
28th December 1995 as amended by modifications dated
26th February 1997 and [                    ] 2004 (the “Finance Contract”)

On-Lending Agreement between MRDC and MRL dated 12 July 1996 (“On-Lending Agreement”)

	 
	 

Dear Sir,

We refer to recent discussions concerning certain amendments to the above-mentioned On-Lending
Agreement and are pleased to confirm that MRDC agrees to these amendments in the following
terms. Unless the context requires otherwise, terms and phrases used in the On-Lending
Agreement and the Finance Contract have the same meaning herein.

Recital

The following two new recitals shall be added after the last recital on page 1:

“AND WHEREAS EIB has financed the Funded Shareholding which amounts to 4.72%
of the share capital of LGL.”

“AND WHEREAS in accordance with the Lihirian Equity Settlement Agreement between EIB,
MRDC, the Borrower and Lihir Management Company Limited dated [ ] 2004 (the
“Settlement Agreement”), LGL agreed to make a voluntary contribution described as a
“community support grant” to the Borrower to be utilized by the Borrower in part to
meet its obligation under this Agreement to pay the instalment of principal which was due
on 15 December 2003 together with interest thereon to the order of MRDC. The remainder of
the community support grant will be utilised by the Borrower for the purpose of meeting
part of the instalment of principal and related interest due on 15 December 2004. In
addition, the Borrower has decided to sell part of the Funded Shareholding in two
tranches, the first prior to 15 December 2004 for the purpose of meeting the balance of
the instalment of principal and related interest which was due on 15 December 2004 and
the second no later than 7 December 2005 (or

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such later date as may be agreed by EIB) for the purpose of establishing a new repayment
mechanism for the repayment of the outstanding balance of the MRDC Credit and related
interest to the order of MRDC so as to enable MRDC to pay the outstanding balance of the
Loan and related interest owed by it to EIB under the Finance Contract. An investment
account (hereinafter referred to as “Investment Account”) denominated in euros will be
set up which will be credited with the net proceeds of the sale of such number of
ordinary shares in LGL that together with interest earned thereon is calculated as
sufficient to repay the outstanding balance of the Loan in accordance with the
Amortisation Table contained in Schedule C of the Finance Contract and related interest
thereon.”

Clause 4- Interest

After the final paragraph of clause 4, the following paragraph is inserted:

“On and from 15 December 2005, MRDC agrees that each interest payment under the
foregoing paragraphs will be satisfied by direct payment by the Borrower out of the
Investment Account to EIB in satisfaction of MRDC’s corresponding interest payment
obligation to EIB under Article 3.01 of the Finance Contract.”

Clause 5- Repayment

Clause 5 shall be deleted in its entirety and replaced by the following:

	 	“A.	 	The Borrower shall repay any amount outstanding at 15 December 2003 under the
On-Lending Agreement to MRDC or to MRDC’s order (as the case may be) in thirteen
annual instalments on the dates and in the percentages listed in Schedule C of the
Finance Contract.
	 
	 	B.	 	If, as a result of the sale by the Borrower of any part of the Funded
Shareholding, MRDC shall become obliged to pay additional sums to EIB under the
terms of Article 4.02 of the Finance Contract, the Borrower shall pay or reimburse
MRDC such additional amount as MRDC is obliged to pay to EIB under the Finance
Contract in consequence of such event.
	 
	 	C.	 	On and from 15 December 2005, repayments under the foregoing paragraphs will
be satisfied pro tanto by direct payment by the Borrower out of the Investment
Account to EIB in satisfaction of MRDC’s corresponding repayment obligations to EIB
under Article 4.02(1) of the Finance Contract.”.

Article 13- Addresses

The address for MRDC and the Borrower for the purposes of clause 13 is as follows:

“1st Floor

First Heritage Centre

Islander Way

Waigani

(PO Box 1076

Port Moresby)

Papua New Guinea”

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Would you kindly signify your acceptance of the above amendments by signing and returning a
copy of this letter.

Yours faithfully,

MINERAL RESOURCES DEVELOPMENT COMPANY LIMITED

Agreed and accepted for and on behalf of

MINERAL RESOURCES LIHIR LIMITED

	 	 	 	 	 
	 	 	 
	(name and title of authorized signatory)

	 	 
	Date:	 	 

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ANNEXURE B

Amendment to EIB Finance Contract

			
	 
	 	By courier

Mineral Resources Development
Company Limited
1st Floor, First Heritage Centre

Waigani Drive

Waigani NCD, Papua New Guinea

For the attention of Seno Wekina

	Cc:	 	Mineral Resources Lihir Limited

1st Floor, First Heritage Centre

Waigani Drive

Waigani NCD, Papua New Guinea

		 	 

					
	Luxembourg, [—] [</>] 2004
	 	JU/CF/wec
	 	N°

	Subject:	 	  Lihir Gold Mine Project-B (FI No. 7.1041)

  (Risk Capital Resources)

	 	 	 
	 

	 	Finance Contract between the European Investment Bank and Mineral Resources
Development Company Limited and Mineral Resources Lihir Limited (“MRL”) dated
Port Moresby and Luxembourg, 28th December 1995 as amended by
modification dated 26th February 1997
	 
	 	 
	 
	 	 
	 

	 	 

Dear Sir,

We refer to recent discussions concerning certain amendments to the above mentioned Finance
Contract and are pleased to confirm that the Bank agrees to these amendments in the following
terms. Terms and phrases used in the Finance Contract have the same meaning herein.

Recital

The following new recital shall be added after the last recital on page 4:

“THE BANK has financed the Funded Shareholding which amounts to 4.72% of the share
capital of LGL and represents 60 571 550 shares. In accordance with the Lihirian Equity
Settlement Agreement between the Bank, THE BORROWER, MRL and Lihir Management Company
Limited dated [ ] 2004 (the “Settlement Agreement”), LGL has agreed to make
a voluntary contribution of the equivalent in euros of USD 2 635 000 (the ‘’Community
Support Grant’’) to MRL part of which MRL has utilized to meet its payment obligations to
THE BORROWER under the Onlending Agreement

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and THE BORROWER has, in turn, utilized to meet its obligations under this Contract to
pay the instalment of principal which was due on 15 December 2003, together with interest
as described in Article 4.02(1). The remainder of the Community Support Grant will be
utilised by MRL for the purpose of meeting part of the instalment of principal and
related interest due on 15 December 2004 under this Contract. In addition MRL has decided
to sell part of the Funded Shareholding in two tranches, the first prior to 15 December
2004 for the purpose of meeting the balance of the instalment of principal and related
interest due on 15 December 2004 and the second no later than 7 December 2005 (or such
later date as may be agreed by EIB) for the purpose of establishing a new repayment
mechanism for the repayment of the outstanding balance of the Loan and related interest.
An investment account denominated in euros will be set up which will be credited with the
net proceeds of the sale by MRL of such number of ordinary shares in LGL that together
with interest earned thereon is calculated as sufficient to repay the outstanding balance
of the Loan and related interest.”

Article 3.01

The last paragraph of Article 3.01 shall be deleted in its entirety and replaced by the
following:

“Interest shall be payable annually in arrear on the date specified in Article 5.03 and
out of the Investment Account as referred to in Article 4.02(1)”.

Article 4.02

The heading of
Article 4.02 “Normal Repayment and Compulsory Early
Repayment” shall be
deleted and replaced by “Scheduled Repayment, Further Sale(s) of Funded Shareholding and
Capital Gains”.

Article 4.02(1)

Article 4.02(1) shall be deleted in its entirety and replaced by the following:

	 	(1)	 	“Scheduled Repayment

Subject to article 9, THE BORROWER shall repay the loan by fifteen annual
instalments beginning on 15th December 2001, in accordance with the
Amortisation Table contained in Schedule C and as further set out below:

	 	(i)	 	THE BANK acknowledges receipt of payment in full of
principal and related interest in respect of the first three instalments
of the Loan that were due on 15th December 2001, 2002 and 2003,
respectively, it being noted that in respect of the third instalment due
on 15th December 2003, which was paid by MRL from part of the
Community Support Grant, THE BANK has waived the application of Article
3.02 (Interest on Overdue Sums) which would otherwise have been applicable
as a result of this payment being overdue for the period from
15th December 2003 to 30 June 2004 inclusive.
	 
	 	(ii)	 	Subject to Article 9, THE BORROWER shall, notwithstanding
that for the last eleven instalments the money deposited in the Investment
Account (as defined in Article 4.02(1)(iv) below) may not be sufficient

20

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	 	 	 	to cover the remaining instalments, repay the outstanding balance of the
Loan by twelve annual instalments beginning on 15th December
2004 in accordance with the Amortisation Table contained in Schedule C.

	 	(iii)	 	The annual instalment due on 15th December
2004 shall be payable out of the balance of the Community Support Grant
and the Net Proceeds (as defined in Article 4.02(2)(ii)) of the sale prior
to 15 December 2004 of such number of ordinary shares in LGL (which
represents part of the Funded Shareholding) that together with the balance
of the Community Support Grant is sufficient to repay the outstanding
principal and related interest in respect thereof.
	 
	 	(iv)	 	The annual instalment due on 15th December 2005
and the subsequent annual instalments shall be payable out of a bank
account denominated in euros to be held by UBS Warburg in London (the
“Investment Account”),.which Investment Account shall be opened in the
name, and be under the sole control, of the EIB. The Investment Account
shall be credited no later than 7 December 2005 (or such later date as may
be agreed by EIB) with the Net Proceeds (as defined in Article
4.02(2)(ii)) of the sale of such number of ordinary shares in LGL (which
represents part of the Funded Shareholding) that together with interest
earned thereon is calculated as sufficient to repay the outstanding
balance of the Loan and related interest. For the avoidance of any doubt,
if for any reason the funds available on the Investment Account are at any
time and from time to time insufficient to meet any annual instalment (or
any other payment obligation whatsover or howsoever under this Contract)
then THE BORROWER shall be obliged on each such occasion to pay the
shortfall from other sources in order to meet in full its payment
obligations under this Contract.
	 
	 	(v)	 	Any balance in the Investment Account after repayment of
the Loan and related interest shall be held by MRL on trust for the
benefit of the Lihirian people.”

Article 4.02(2)

Articles 4.02(2)(i), (ii), (iii) and (iv) shall be deleted in their entirety and replaced by
the following:

	 	(2)	 	“ Further Sale(s) of Funded Shareholding and Capital
Gains

	 	(i)	 	If following the second sale of part of the Funded
Shareholding referred to in Article 4.02(1)(iv) (in order that the Net
Proceeds -as defined in Article 4.02(ii) below — can be credited to the
aforesaid Investment Account), MRL from time to time further sells or
otherwise disposes of the balance (or any part thereof) of the Funded
Shareholding, THE BORROWER shall so inform THE BANK on each such occasion
and MRL shall hold the Net Proceeds of the sale (or the aggregate Net
Proceeds of each such sale if more than one) on trust for the benefit of
the Lihirian people.

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	 	 	 	If such further sale(s) or disposal(s) of the balance of the Funded
Shareholding results in a Capital Gain (as defined in Article
4.02(2)(ii) below), THE BORROWER shall on each such occasion pay THE
BANK the equivalent in euros of 50% of the Capital Gain.
	 
	 	 	 	THE BORROWER and MRL undertake to fully apply the remaining 50% of any
such Capital Gain (or Capital Gains) for purposes of benefit to the
Lihirian people, as such group is defined in the LGM Agreement in
accordance with the terms of the LGM Agreement and any trust created
pursuant to it.

	 	(ii)	 	For the purposes of this Article 4.02:
	 
	 	 	 	“Net Proceeds” means any capital sum received by MRL on sale or other
disposal of the Funded Shareholding (less all costs of sale and
incidental taxes); Provided that if THE BANK considers that the Funded
Shareholding has been transferred without consideration or for a
consideration materially below the fair and current market value as
between a willing buyer and a willing seller, THE BORROWER shall, at the
request of and without expense to THE BANK, procure that MRL’s auditors
or those of LGL express their opinion on the fair and current market
value of such Funded Shareholding as at the date of disposal and MRL
shall be deemed to have received as consideration for such disposal an
amount equal to such fair value as reflected in the auditors’ opinion
(less all notional costs of sale and taxes as above); and
	 
	 	 	 	“Capital Gain” in respect of the Funded Shareholding means the excess of
the disposal proceeds per share (measured in USD) over the Base Issue
Price (of USD 1.11)”.

Article 4.02(3)

Article 4.02(3) shall be deleted in its entirety.

Article 6.09(d)

Article 6.09(d) shall be deleted in its entirety and replaced by the following:

“inform THE BANK in advance of any proposed or actual transfer or sale of the Lihirian
Interest”.

Article 6.13

Article 6.13 shall be deleted in its entirety and replaced by the following:

“After all amounts due under the Contract to THE BANK have been paid, any remaining
balance in the Investment Account shall be held on trust for the benefit of the Lihirian
people.”.

Article 7.02(d)

Article 7.02(d) shall be deleted in its entirety and replaced by the following:

22

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“informs THE BANK immediately and makes itself and MRL available for consultation upon
becoming aware of any decision to transfer or sell the whole or any part of MRL’s
shareholding in LGL”.

Article 9.01(j)

A new Event of Default shall be added at Article 9.01A(j) as follows:

	 	“(j)	 	if the Borrower and/or MRL fails to cause the Investment Account (as defined in
Article 4.02(1)(iv) above) to be credited:

	 	(i)	 	with the Net Proceeds (as defined in Article 4.02(2)(ii) above)
of the sale (or each sale if more than one) of ordinary shares in LGL (which
represents part of the Funded Shareholding) sold pursuant to Article
4.02(1)(iv) on the same day as such shares are sold; and/or
	 
	 	(ii)	 	by no later than 7 December 2005 with Net Proceeds which,
having been aggregated with any existing balance on the Investment Account, and
together with interest earned thereon, are sufficient to repay the outstanding
balance of the Loan and related interest in accordance with Article
4.02(1)(iv); and”

Article 11.01

The address for MRL and THE BORROWER for the purposes of clause 11.01 is as follows:

“1st Floor

First Heritage Centre

Islander Way

Waigani

(PO Box 1076

Port Moresby)

Papua New Guinea

Facsimile: 675 325 2633”

Would you kindly signify your acceptance of the above amendments by signing the four (4)
enclosed copies of this letter at the point indicated below and returning two (2) of them to
THE BANK.

Yours faithfully,

EUROPEAN INVESTMENT BANK

	 	 	 
	David Crush
	 	R. Otte

23

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	Agreed and accepted for and on behalf of

MINERAL RESOURCES DEVELOPMENT COMPANY LIMITED

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	(name and title of authorized signatory)
	 	 
	 
	 	 
	Date:
	 	 
	 
	 	 
	 
	 	 
	Agreed and accepted for and on behalf of

MINERAL RESOURCES LIHIR LIMITED
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	(name and title of authorized signatory)
	 	 
	 
	 	 
	Date:
	 	 

24

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ANNEXURE C

Partial Release of Security

Partial Release of
Security

European Investment Bank

Mineral Resources Lihir Limited

Mineral Resources Development Company Limited

      

      

      

      

4thFloor

Mogoru Moto Building

(PO Box 850)

Port Moresby

Telephone: (675) 309 2000

Fax: (675) 309 2099

      

      

      

 
 
 
 

Re: DCF/RAF:020411

112478305

 

Table of Contents

CONTENTS

	 	 	 	 	 	 	 	 	 
	CONTENTS	 	 	 	 	i	 
	 
	 	 	 	 	 	 	 	 
	1.	 	INTERPRETATION	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	Definitions	 	 	2	 
	 
	 	1.2	 	Rules for interpreting this document	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	2.	 	RELEASE	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	Release and discharge	 	 	3	 
	 
	 	2.2	 	No effect on Facility Agreement	 	 	3	 
	 
	 	2.3	 	No effect on continuing security, obligations and rights under MRL Share Mortgage	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	3.	 	GENERAL	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Governing law	 	 	4	 
	 
	 	3.2	 	Liability for costs and taxes	 	 	4	 
	 
	 	3.3	 	Giving effect to this document	 	 	4	 
	 
	 	3.4	 	Counterparts	 	 	4	 
	 
	 	3.5	 	Attorneys	 	 	4	 

i

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PARTIAL RELEASE OF SECURITY

			
	DATE
	 	2004

PARTIES

	 	 	European Investment Bank of 100 Boulevard Konrad Adenauer, Luxembourg
(“Mortgagee”)
	 
	 	 	Minerals Resources Lihir Limited of First Heritage Centre, Islander Way, Waigani, NCD
(“Mortgagor”)
	 
	 	 	Mineral Resources Development Company Limited of First Heritage Centre, Islander Way,
Waigani, NCD (“Borrower”)

RECITALS

	A.	 	The Mortgaged Property has been provided as security by the Mortgagor in favour of the
Mortgagee.
	 
	B.	 	Pursuant to the terms of clause 7.2 of the Lihirian Equity Settlement Agreement (and in
pursuance of the mutual undertakings of the parties contained therein), the Mortgagee has
agreed to a partial release from the Mortgaged Property, (together with the related
liabilities of the Mortgagor and the Borrower under the MRL Share Mortgage), of certain shares
referred to in the Lihirian Equity Settlement Agreement.
	 
	C.	 	This Release is the form of release, for the purpose of Recital B above, annexed at Schedule
C of the Lihirian Equity Settlement Agreement.

OPERATIVE PROVISIONS

	1	 	INTERPRETATION

	1.1	 	Definitions
	 
	 	 	The definitions in the MRL Share Mortgage apply to this document and in addition the
following definitions apply:
	 
	 	 	"Lihirian Equity Settlement Agreement” means the Lihirian Equity Settlement Agreement
between the Mortgagee, the Mortgagor, the Borrower and Lihir Management Company Limited
dated [ ] 2004.
	 
	 	 	"MRL Share Mortgage” means the Share Mortgage between the parties dated 14 January 1998
which is registered in Papua New Guinea as company charge No.10991.

	1.2	 	Rules for interpreting this document
	 
	 	 	Headings are for convenience only, and do not affect interpretation. The following rules
also apply in interpreting this document, except where the context makes it clear that a
rule is not intended to apply.

1.

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	 	 	A reference to:

	 	(i)	 	legislation (including subordinate legislation) is to that
legislation as amended, re-enacted or replaced, and includes any subordinate
legislation issued under it;
	 
	 	(ii)	 	a document or agreement, or a provision of a document or
agreement, is to that document, agreement or provision as amended,
supplemented, replaced or novated;
	 
	 	(iii)	 	a party to this document or to any other document or agreement
includes a permitted substitute or a permitted assign of that party;
	 
	 	(iv)	 	a person includes any type of entity or body of persons,
whether or not it is incorporated or has a separate legal identity, and any
executor, administrator or successor in law of the person; and
	 
	 	(v)	 	anything (including a right, obligation or concept) includes
each part of it.

	 	(b)	 	A singular word includes the plural, and vice versa.
	 
	 	(c)	 	A word which suggests one gender includes the other genders.
	 
	 	(d)	 	If a word is defined, another part of speech has a corresponding meaning.
	 
	 	(e)	 	If an example is given of anything (including a right, obligation or concept),
such as by saying it includes something else, the example does not limit the scope of
that thing.
	 
	 	(f)	 	The word “agreement” includes an undertaking or other binding arrangement or
understanding, whether or not in writing.

	2.	 	RELEASE

	2.1	 	Release and discharge
	 
	 	 	With effect from the date of this document, the Mortgagee releases [ ] ordinary shares in
the capital of Lihir Gold Limited (being [ [the MRL First Sale Shares] / [part of the MRL
Second Sale Shares] ] referred to in the Lihirian Equity Settlement Agreement) from the MRL
Share Mortgage.

	2.2	 	No effect on Facility Agreement
	 
	 	 	The Mortgagor and the Borrower acknowledge that nothing in this document affects their
rights and obligations under the Facility Agreement.

	2.3	 	No effect on continuing security, obligations and rights under MRL Share Mortgage
	 
	 	 	Nothing in this document shall prejudice or affect the continuing nature of the:

	 	(i)	 	security over the non-released portion of the Mortgaged Property; or
	 
	 	(ii)	 	obligations generally of the Mortgagor; or
	 
	 	(iii)	 	rights generally of the Mortgagee,

2.

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	 	 	 	under the MRL Share Mortgage.

	3.	 	GENERAL

	3.1	 	Governing law

	 	(a)	 	This document is governed by the law in force in Papua New Guinea.
	 
	 	(b)	 	Each party submits to the non-exclusive jurisdiction of the courts exercising
jurisdiction in Papua New Guinea, and any court that may hear appeals from any of those
courts, for any proceedings in connection with this document, and waives any right it
might have to claim that those courts are an inconvenient forum.

	3.2	 	Liability for costs and taxes
	 
	 	 	Each party must pay its own expenses incurred in negotiating this document. The Borrower
and the Mortgagor shall pay all duties and taxes payable on this document together with the
costs of any notification or filing required to give effect to it.

	3.3	 	Giving effect to this document
	 
	 	 	Each party must do anything (including execute any document), and must ensure that its
employees and agents do anything (including execute any document), that any other party may
reasonably require to give full effect to this document.

	3.4	 	Counterparts
	 
	 	 	This document may be executed in counterparts.

	3.5	 	Attorneys
	 
	 	 	Each person who executes this document on behalf of a party under a power of attorney
declares that he or she is not aware of any fact or circumstance that might affect his or
her authority to do so under that power of attorney.

[Insert appropriate execution clauses]

3.

Table of Contents

ANNEXURE D

Release of Security

Release of Security

European Investment Bank

Mineral Resources Lihir Limited

Mineral Resources Development Company Limited

      

      

      

      

4th Floor

Mogoru Moto Building

(PO Box 850)

Port Moresby

Telephone: (675) 309 2000

Fax: (675) 309 2099

      

      

      

 
 
 
 

Re: DCF/RAF:020411

112478305

 

Table of Contents

CONTENTS

	 	 	 	 	 	 	 	 	 
	CONTENTS	 	 	 	 	i	 
	 
	 	 	 	 	 	 	 	 
	1.	 	INTERPRETATION	 	 	 	 
	 

	 	 	 	 	 	 	1	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	1.2	 	Rules for interpreting this document	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	2.	 	RELEASE	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	Release and discharge	 	 	2	 
	 
	 	2.2	 	No effect on Facility Agreement	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	3.	 	GENERAL	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Governing law	 	 	2	 
	 
	 	3.2	 	Liability for costs and taxes	 	 	3	 
	 
	 	3.3	 	Giving effect to this document	 	 	3	 
	 
	 	3.4	 	Counterparts	 	 	3	 
	 
	 	3.5	 	Attorneys	 	 	3	 

i

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RELEASE OF SECURITY

			
	DATE
	 	2004

PARTIES

	 	 	European Investment Bank of 100 Boulevard Konrad Adenauer, Luxembourg
(the “Mortgagee”)
	 
	 	 	Minerals Resources Lihir Limited of First Heritage Centre, Islander Way, Waigani, NCD (the
“Mortgagor”)
	 
	 	 	Mineral Resources Development Company Limited of First Heritage Centre, Islander Way,
Waigani, NCD (“Borrower”)

RECITALS

	A.	 	The Mortgaged Property has been provided as security by the Mortgagor in favour of the
Mortgagee.
	 
	B.	 	Under clause 7.3 of the Lihirian Equity Settlement Agreement (and in pursuance of the mutual
undertakings of the parties contained therein), the Mortgagee has agreed to release the
Mortgaged Property and the liabilities of the Mortgagor and the Borrower under the MRL Share
Mortgage (save for the liabilities under Article 7 of the MRL Share Mortgage) upon the sale or
last sale (as the case may be) of the MRL Second Sale Shares (as defined in the Lihirian
Equity Settlement Agreement) sufficient for the purpose contemplated within the definition of
MRL Second Sale Shares.
	 
	C.	 	This Release is the form of release, for the purpose of Recital B above, annexed at Schedule
D of the Lihirian Equity Settlement Agreement.

OPERATIVE PROVISIONS

	1.	 	INTERPRETATION

	1.1.	 	Definitions
	 
	 	 	The definitions in the MRL Share Mortgage apply to this document and in addition the
following definitions apply:
	 
	 	 	“Lihirian Equity Settlement Agreement” means the Lihirian Equity Settlement Agreement
between the Mortgagee, the Mortgagor, the Borrower and Lihir Management Company Limited
dated [ ] 2004.
	 
	 	 	“MRL Share Mortgage” means the Share Mortgage between the parties dated 14 January 1998
which is registered in Papua New Guinea as company charge No.10991.

	1.2.	 	Rules for interpreting this document
	 
	 	 	Headings are for convenience only, and do not affect interpretation. The following rules
also apply in interpreting this document, except where the context makes it clear that a
rule is not intended to apply.

1.

Table of Contents

	 	(a)	 	A reference to:

	 	(i)	 	legislation (including subordinate legislation) is to that
legislation as amended, re-enacted or replaced, and includes any subordinate
legislation issued under it;
	 
	 	(ii)	 	a document or agreement, or a provision of a document or
agreement, is to that document, agreement or provision as amended,
supplemented, replaced or novated;
	 
	 	(iii)	 	a party to this document or to any other document or
agreement includes a permitted substitute or a permitted assign of that party;
	 
	 	(iv)	 	a person includes any type of entity or body of persons,
whether or not it is incorporated or has a separate legal identity, and any
executor, administrator or successor in law of the person; and
	 
	 	(v)	 	anything (including a right, obligation or concept) includes
each part of it.

	 	(b)	 	A singular word includes the plural, and vice versa.
	 
	 	(c)	 	A word which suggests one gender includes the other genders.
	 
	 	(d)	 	If a word is defined, another part of speech has a corresponding meaning.
	 
	 	(e)	 	If an example is given of anything (including a right, obligation or concept),
such as by saying it includes something else, the example does not limit the scope of
that thing.
	 
	 	(f)	 	The word “agreement” includes an undertaking or other binding arrangement or
understanding, whether or not in writing.

	2.	 	RELEASE

	2.1	 	Release and discharge
	 
	 	 	With effect form the date of this document, the Mortgagee releases all the Mortgaged
Property from the MRL Share Mortgage and discharges the Mortgagor and the Borrower from all
liability under the MRL Share Mortgage (save for the liabilities assumed by the Mortgagor
and the Borrower under Article 7 of the MRL Share Mortgage).

	2.2	 	No effect on Facility Agreement
	 
	 	 	The Mortgagor and the Borrower acknowledge that nothing in this document affects their
rights and obligations under the Facility Agreement.

	3.	 	GENERAL

	3.1	 	Governing law
	 
	 	 	This document is governed by the law in force in Papua New Guinea.

2.

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	 	 	Each party submits to the non-exclusive jurisdiction of the courts exercising jurisdiction
in Papua New Guinea, and any court that may hear appeals from any of those courts, for any
proceedings in connection with this document, and waives any right it might have to claim
that those courts are an inconvenient forum.

	3.2	 	Liability for costs and taxes
	 
	 	 	Each party must pay its own expenses incurred in negotiating this document. The Borrower
and the Mortgagor shall pay all duties and taxes payable on this document together with the
costs of any notification or filing required to give effect to it.

	3.3	 	Giving effect to this document
	 
	 	 	Each party must do anything (including execute any document), and must ensure that its
employees and agents do anything (including execute any document), that any other party may
reasonably require to give full effect to this document.

	3.4	 	Counterparts
	 
	 	 	This document may be executed in counterparts.

	3.5	 	Attorneys
	 
	 	 	Each person who executes this document on behalf of a party under a power of attorney
declares that he or she is not aware of any fact or circumstance that might affect his or
her authority to do so under that power of attorney.

[Insert appropriate execution clauses]

3.

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