Document:

<PAGE>

                                                                    EXHIBIT 10.8

                                STATE OF MONTANA

                    METALLIFEROUS MINERAL OR GEM MINING LEASE

                                  NO. M-1943-99

        This indenture of lease made and entered into by and between the State
of Montana, acting through its State Board of Land Commissioners, hereinafter
referred to as lessor, and the person, persons, company or corporation herein
named and hereinafter referred to as lessee, under and pursuant to the terms and
provisions of Part 1, Chapter 3, Title 77, MCA, as amended and rules adopted
pursuant thereto,

        The lessor, in consideration of the annual rentals provided for herein,
the royalties to be paid, and the covenants to be kept and performed by the
lessee, leases to the lessee for the purpose of mining metalliferous minerals
and or gems as described below, all the lands described as follows:

Date this lease takes effect:  MARCH 15, 1999

Name of Lessee:  PETER C. ELLSWORTH                   Address: 265 BENTON AVENUE
                                                              MISSOULA, MT 59801

Land Located in   GRANITE                             County:

Description of Land:      TOWNSHIP 11 NORTH, RANGE 13 WEST
                          --------------------------------
                          SECTION 16: E1/2E1/2

<TABLE>
<S>                                                                                       <C>
Total number of acres     160.00     , more or less, belonging to         SCHOOL          Grant.
</TABLE>

Minerals authorized to be mined:     SAPPHIRES, DIAMONDS, AND ASSOCIATED GOLD

Royalty:       5% PLUS AN ANNUAL ADVANCE ROYALTY OF $250.00

Bond:          $1,000.00

        To have and to hold these premises unto said lessee and successors,
legal representatives or assigns, for the primary term of' ten (10) years, and
as long thereafter as the minerals hereinabove designated are being produced in
paying quantities from said premises, the royalties and rents provided for
herein are being paid, and all other obligations are fully kept and performed.

        It is mutually understood, agreed and covenanted by and between the
parties to this lease as follows:

        1. The lessor expressly reserves the right to lease, sell, or otherwise
dispose of the surface of the lands hereby leased, under existing law or laws
hereafter enacted, insofar as the surface is not necessary for the use of the
lessee in connection with operations under this lease; and lessee agrees to
comply with all statutory requirements, rules, and regulations thereunder made
by the lessor if the lands embraced hereby have been or shall hereafter be sold,
leased, or disposed of.

        2. The lessee shall pay to the lessor an annual money rental in the
amount of $ 1.00 per acre for the first three year period, $2.50 per acre for
the next two years, and thereafter annually $3.00 per acre. This is in addition
to any bonus which may be required as a condition of obtaining the lease.

        3. Lessee shall prospect and explore with minimum disturbance to the
surface of the land which is required to adequately explore the property. All
mining operations shall be conducted in such a manner as to protect property and
resources from disturbance which is not reasonably necessary in order to
efficiently and economically remove the mineral deposit.

<PAGE>

        4. The lessee shall obtain the consent of the Department of Natural
Resources and Conservation before cutting any timber upon this land for use in
their operations; and shall pay the lessor the customary charges made by the
lessor for timber thereafter cut.

        5. The lessee shall not assign this lease without the consent of the
lessor.

        6. The lessee shall cover or enclose all shafts, mines or openings of
any kind in such manner as to remove danger to human beings or livestock.

        7. The lessee shall fully comply with all applicable state and federal
laws, rules and regulations, including but not limited to those concerning
safety, environmental protection and reclamation. The lessee shall conduct and
reclaim the operation in accordance with the performance and reclamation
standards of applicable mine reclamation laws. The exemption of lessee's
operations from applicable reclamation laws does not relieve the lessee from the
obligation to conduct and reclaim the operations in accordance with the
performance and reclamation standards of those laws. All disturbances must be
reclaimed prior to release of any bond.

        8. If the surface of the land has been sold or leased prior to issuance
of this lease. the mineral lessee shall be responsible for damages to the
surface, the leasehold interest and any improvements.

        9. The lessee shall furnish to the Department of Natural Resources and
Conservation, upon request, but not more than once each calendar year an
exploration and development report. The report shall include a description of
any work completed to date, a plat showing the location of any work and shall
include a complete geologic log and electric log (if done) of any test holes.

        10. The lessee shall have the right at the termination of any rental
year, by giving at least thirty (30) days previous notice in writing to the
Director of Natural Resources and Conservation, to surrender and relinquish this
lease and thereupon be discharged from any obligation not theretofore accrued.

        11. At the termination of this lease, for any cause, the lessee shall
immediately surrender the premises and shall, within sixty (60) days, remove
machinery, tools or equipment that the lessee may have placed thereon.

        12. The lessee shall pay a royalty in cash unless the lessor requests
that it be delivered in kind. The royalty rate as specified above shall be based
upon the applicable percentage of returns from the metalliferous minerals or
gems being mined but in no case shall be less than 5 percent of the fair market
value of the metalliferous minerals or gems recovered. The returns are defined
as the net amount received by the shipper after deducting reasonable
transportation costs to the closest feasible point of sale, smelting charges and
deductions and other treatment costs, not including as a deduction any cost of
producing or treating at the mine. The fair market value is the value of the
minerals or gems in raw crude form as recovered at the mine site.

        13. The lessee shall, upon commencement of mining, make a report on or
before the last day of each quarter concerning the operations for the latest 3
months for which records are available but in no case more than 3 months
preceding the report. The report shall be on the form prescribed by the
department and shall provide sufficient information to determine the royalty as
well as any other pertinent information requested by the department. The royalty
for the quarter reported shall accompany the report.

        14. The lessee has filed a bond with the lessor in the penal sum as
specified above, conditioned upon compliance with all lease terms and in order
to protect the rights of any prior purchasers or surface lessees. Additional
bonds may be required at any time during the period of the lease.

        15. The lease is subject to cancellation for failure to comply with the
terms of the lease, applicable state statutes concerning metalliferous and gem
leases and rules enacted pursuant to those statutes, as amended. The lessee
shall be notified of any failure to comply and allowed a reasonable time to
comply. If the lessee fails to comply within a reasonable time, the lease shall
be cancelled.

        16. All the terms and conditions hereof which are applicable to the
lessee shall likewise be applicable to the heirs, executors, administrators,
assigns, and other successors in interest of the lessee to the same extent as
though they had been specifically mentioned in connection with each of such
terms and conditions and the provisions of this lease shall be binding upon and
inure to the benefit of such heirs, executors, administrators, assigns and other
successors in interest of the lessee.

        17. Special conditions:

                               SEE ATTACHMENT 'A'

                                       -2-

<PAGE>

        IN WITNESS WHEREOF, the State of Montana and the lessee have caused this
lease to be executed in duplicate and the Director of the Department of Natural
Resources and Conservation, pursuant to the authority granted him by the State
Board of Land Commissioners of the State of Montana, has hereunto set his hand
and affixed the seal of the Board of Land Commissioners this _____ day of May 13
1999, year of ______.

 /s/ Arthur R. Clinch
------------------------------------
ARTHUR R. CLINCH, DIRECTOR OF THE
DEPARTMENT OF NATURAL RESOURCES
& CONSERVATION

                                              /s/ Peter Ellsworth
                                             -----------------------------------
                                                             Lessee
                                                      PETER C. ELLSWORTH
                                             Address: 265 BENTON AVENUE
                                                     ---------------------------
                                                       MISSOULA, MT 59802

                                       -3-

<PAGE>

                                                             Lease No. M-1943-99
                                                                   -------------

                                 ATTACHMENT "A"

ANNUAL REPORT

1.      Lessee shall submit to the Department of Natural Resources and
        Conservation a verified report showing in detail what work the lessee
        has done and performed under this lease during the preceding year and
        the location and character of the same, a plat showing all development
        work and improvements on the leased lands, and shall furnish such
        additional information relating thereto as the Director shall require,
        and in case it is advisable to prospect by test holes or other testing
        methods an itemized statement of actual cost of testing, location of
        test holes and other relating information with a report as to all
        buildings, structures or other work placed in or upon leased lands,
        together with a statement as to the amount and grade of minerals and/or
        gems produced and sold and the amount received therefor by operations
        hereunder.

OPERATING PLAN

2.      If the Lessee intends to conduct mining and/or milling activities or
        exploration activities, including road building, trenching, dumping, or
        other activities which result in land disturbance on the leased
        premises, it shall submit to the Department of Natural Resources and
        Conservation, Minerals Management Bureau two copies of an Operating Plan
        or Amendment to an existing Operating Plan, describing its proposed
        activities. No activities shall occur on the tract until an Operating
        Plan or Amendments have been approved, in writing, by the Minerals
        Management Bureau. The Plan or Amendment shall include the following:

        a.      A complete description of each activity planned, locations of
                each activity, scheduled starting date, and expected duration on
                each.

        b.      Maps (1:24,000 scale or larger) showing use and/or
                reconstruction of existing access routes, the location of
                proposed new road construction, pipelines, utilities and other
                uses and improvements.

        c.      Drawings showing road construction plans, including width,
                drainage, cut/fill slopes and other details, as well as detailed
                topographic drawings showing mine and/or mill site development
                and layout, and water supply and disposal system.

        d.      Plans, to include resource protection measures for mining,
                milling, waste disposal, sanitation, wildfire prevention, soil
                erosion and air and water pollution; emergency actions covering
                mining or milling related spills; and land reclamation
                procedures.

        e.      Other information necessary for the Department to assess
                probable impacts upon surface and other resources.

        Submittal of plans of operation to other departments and Divisions of
        State Government including but not limited to the Environmental
        Management Bureau of the Department of

                                       -1-

<PAGE>

        Environmental Quality does not satisfy this provision. Original copies
        of all plans, maps and amendments must be delivered by the lessee
        hereunder to the Minerals Management Bureau.

ACTIVITIES MAY BE DENIED

3.      The Department reserves the right to deny all activity that would result
        in material disturbance to the leased premises.

RECORDS

4.      Representatives of the Lessor shall at all reasonable times have the
        right to enter into and upon the premises and all of the workings and
        shafts and tunnels or buildings thereon and all parts thereof for the
        purpose of inspecting and examining the same.

        The lessee agrees to keep books of account showing the amount of
        metalliferous minerals and/or gems extracted from the leased lands; the
        amount of such minerals and/or gems produced, saved, treated, shipped or
        marketed collectively or individually; and the amount of money received
        from the sale of the minerals and/or gems or the value extracted from
        them; and from and out of the values extracted from them.

        Representatives of the Lessor shall also at all reasonable hours have
        free access to all books, accounts, records and papers of the Lessee
        insofar as they shall relate to the production of the mineral for which
        this lease is issued, or the price received therefore or any agreements
        relating thereto.

REMOVAL OF GEMS AND/OR MINERALS

5.      The lessee shall not, during the prospecting period or any continuation
        thereof, remove any metalliferous minerals and/or gems from the leased
        premises except as may be permitted by the Department. When the lessee
        has discovered metalliferous minerals and/or gems in commercial
        quantities he shall notify the Director of the Department that the
        prospecting period is terminated, and request permission to dispose of
        the metalliferous minerals and/or gems as provided in this lease.

FINANCIAL AGREEMENTS

6.      All contracts made in relation to the mineral interest granted herein,
        such as but not limited to, assignments, subleases, joint ventures,
        overriding royalties, operating agreements, project financing, back-in
        rights, or other similar agreements, whether verbal or written between
        the lessee herein and any other person or corporation must be approved
        by the Director. The Department reserves the right to deny any agreement
        that may impair the productive capability of the trust asset. It will be
        the Department's sole discretion whether the proposed agreement is
        approved. The Department may consider payment of a reasonable
        compensatory bonus as adequate mitigation for the proposed agreement.

                                       -2-

<PAGE>

DILIGENCE

7.      The lessee agrees to commence actual prospecting operations under the
        land embraced herein promptly after the execution of this lease and
        thereafter diligently prospect, develop and mine in or upon the leased
        land unless consent to suspend operations temporarily is granted by the
        Department annually.

ADVANCE ROYALTY

8.      In addition to the yearly rental, lessee shall pay an advance minimum
        royalty of $250.00 per year. This amount is payable each year on the
        anniversary date of this lease. This minimum royalty is not refundable
        in the event that actual production royalty is less than $250.00 per
        year. In the event such actual production royalty is greater, lessee is
        obligated to pay the greater amount.

RENT AND ROYALTY REVIEW

9.      The rate of the rental shall be reviewed at the end of each five (5)
        year period of the lease, and may be adjusted at such time at the
        discretion of the Department.

        The rate of royalty and any advance royalty shall be reviewed at the end
        of each five (5) year period of the lease, and may, after negotiation
        between lessor and lessee be adjusted at such time.

WATER RIGHTS

10.     Lessee may not interfere with any existing water right owned or operated
        by any person. Lessee shall hold Lessor harmless against all claims,
        including attorney fees, for damages claimed by any person asserting
        interference with a water right.

WASTE PROHIBITED

11.     All mining operations shall be done in good and workmanlike manner in
        accordance with approved methods and practices using such methods to
        insure the extraction of the greatest amount of mineral, having due
        regard for the prevention of waste of the minerals developed on the
        land, the protection of the environment and all natural resources, the
        preservation and conservation of the property for future uses, and for
        the health and safety of workmen and employees. If the Lessor has
        reasonable belief that the operations are not so being conducted, he
        shall so notify the lessee in writing, and if compliance is not promptly
        obtained and the delinquency fully satisfied, the Lessor may at its
        option, after thirty (30) days notice by registered mail to the Lessee,
        cancel the lease.

SURRENDER OF DATA

12.     All geological data, including reports, maps, logs and other pertinent
        data regarding Trust resources shall be given to the Department upon
        surrender or expiration of the lease. Bond

                                       -3-

<PAGE>

        will not be released until surrender of such data to the Department. All
        drill core and/or splits of drill cuttings shall be saved. Upon
        surrender or expiration of the lease lessee will contact the Department
        for instructions on the required disposition of drill core and/or
        cuttings.

STREAMBED PRESERVATION

13.     Prior to the commencement of any activities within the ordinary high
        water mark of perennial streams on the leased premises, the lessee shall
        obtain a 310 Permit, if required, from the appropriate Conservation
        District. A copy of such permit shall be submitted to the Department.

FIELD NOTIFICATION

14.     The Department of Natural Resources and Conservation Unit Manager (or
        his representative) who may be contacted regarding matters pertaining to
        the leased premises is:

        Unit Manager, Anaconda Unit Office, DNRC, 7916 Highway 1 West, Anaconda,
        MT 59711 Phone (406) 563-6078

        The lessee shall also contact the surface lessee, Carl Nelson Ranch Co.,
        c/o Billie Struna, Box 353, Drummond, MT 59832, prior to entry onto any
        portion of the leased area. Any problems or questions regarding access
        to the described property must be addressed prior to entry upon the
        property, except that reasonable access for the purpose herein described
        may not be withheld pending resolution.

WEED CONTROL

15.     Lessee shall be responsible for controlling any noxious weeds introduced
        by Lessee's activity on State-owned land and shall prevent or eradicate
        the spread of noxious weeds onto land adjoining the leased premises. The
        Lessee's methods of control must be reviewed by the Department's Area
        Field Office that has jurisdiction for that locale.

CONFIDENTIALITY WAIVED

16.     The Lessee is required to contact the Department of Environmental
        Quality regarding requirements of the Hard Rock Act prior to the
        commencement of any activities on the leased premises. In order to
        provide the Department of Natural Resources and Conservation with
        information regarding exploration activities important to Trust
        resources and to protect the confidentiality of the Lessee's exploration
        activities, the Lessee hereby agrees that the Trust Lands Management
        Division staff are hereby authorized to review any records pertaining to
        Small Miners Exclusion Statement and/or Exploration License obtained by
        the Department of Environmental Quality.

                                       -4-

<PAGE>

SPECIAL CONDITIONS

17.     DNRC-Trust Land Management Division (TLMD) will complete an initial
        review for cultural resources and, where applicable, paleontological
        resources of the area intended for disturbance and may require a
        resources inventory. Based on the results of the inventory, the TLMD may
        restrict surface activity for the purpose of protecting significant
        resources- located on the lease premises.

        Vehicular traffic is restricted to existing roads and to periods when
        the soil moisture is low enough (generally below 20 percent) to prevent
        rutting unless otherwise authorized by TLMD.

        All vehicles and equipment must be washed, particularly the underside,
        prior to entry onto the property to minimize the spread of noxious
        weeds.

        Material disturbed in emplacing exploration sampling holes will be
        replaced in the holes immediately on completion of sampling.

NON-WARRANTY OF TITLE

18.     Regardless of any of the above provisions of the said lease, actual or
        implied, the State of Montana does not warrant title to its lands.

                                                     /s/ Peter Ellsworth
                                                    ----------------------------
                                                    PETER C. ELLSWORTH

                                       -5-<PAGE>

                                                                    EXHIBIT 10.9

<TABLE>
<S>                                                                         <C>
                                                                                                        Page 1
FORM 3510-1                                                                                         FORM APPROVED
(MAY 1992)                                                                                        OMB NO. 1004-0121
                                  UNITED STATES                                               Expires: November 30, 1992
                             DEPARTMENT OF INTERIOR                         --------------------------------------------------------
                           BUREAU OF LAND MANAGEMENT                         1.  Serial Number (See Specific Instructions - Item 1)
                                                                             MTM 88980 (Acq)
                      PROSPECTING APPLICATION AND PERMIT                    --------------------------------------------------------
                                                                             2.  What mineral(s) are you applying for?
                                                                             Precious Gems & Precious Metals
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

3a. Applicant's name        Britt Minerals, Inc.                                5. Legal description of land included in permit
                                                                                       APPLICANT DOES NOT FILL IN THIS SPACE
-----------------------------------------------------------------------------
                                                                                       T. 16  N., R. 24 E., P.M.M.
3b.  Applicant's address                                                               ---------------------------
P.O. Box 7495, Missoula, MT  59807                                                     Sec. 19:   SE1/4SW1/4, SW1/4SE1/4
-----------------------------------------------------------------------------
4. Give legal description of land requested (See General Instructions, Item 4)         80.0 acres, Petroleum County, Montana

        SE1/4 SW1/4 & SW1/4 SE1/4 Sec.  19,
        T16N,  R24E, M.P.M.
        Petroleum County, Montana

------------------------------------------------------------------------------------------------------------------------------------

Total acres     80                      Rental submitted $ 40                   Total acres          Rental retained $
------------------------------------------------------------------------------------------------------------------------------------

6. Are the lands administered by a government agency?  [X] Yes [ ] No (If "Yes," give name of agency)   BLM

------------------------------------------------------------------------------------------------------------------------------------

7. Are you the sole party in interest? [X] Yes [ ] No (See Specific Instructions - Item 7)

------------------------------------------------------------------------------------------------------------------------------------

8a. Are you a citizen of the United States? [X] Yes [ ] No                      8b. Are you over the age of majority? [X] Yes [ ] No

------------------------------------------------------------------------------------------------------------------------------------

9a. Is application made for a corporation or other legal entity? [X] Yes [ ] No (If "Yes," see Specific Instructions - Item 9a)

------------------------------------------------------------------------------------------------------------------------------------

9b. Has a statement of qualification been filed? [X] Yes [ ] No (If "Yes," give file number, if "No," see regulation 43 CFR 3502)

------------------------------------------------------------------------------------------------------------------------------------

10. Be sure to enclose a nonrefundable          11. Be sure to enclose the first year's advance rental computed at the rate of
    filing fee of $25.00                            50(cent) per acre or fraction thereof (See Specific Instructions - Item 11)

------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

I CERTIFY That my interests, direct or indirect, in leases, permits, and application therefor, do not exceed the maximum permitted
by law or regulation, and that the statements made herein are true, complete, and correct to the best of my knowledge and belief
and are made in good faith.

 /s/ Peter Ellsworth                                                               /s/  Garry J. Carlson
--------------------------------------------------------------------------------   -------------------------------------------------
                   (Signature of Applicant)                                                           (Signature of Applicant)

 February 28, 1999
--------------------------------------------------------------------------------   -------------------------------------------------
                             (Date)                                                                       (Attorney-in-fact)

------------------------------------------------------------------------------------------------------------------------------------

Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly and willfully to make to any department or agency of the
United States any false, fictitious fraudulent statements or representations as to any matter within its jurisdiction.
------------------------------------------------------------------------------------------------------------------------------------

                                                   DO NOT WRITE BELOW THIS LINE

                                                                       PROSPECTING PERMIT
                                         -----------------------------
                                             (Name of Mineral(s))

------------------------------------------------------------------------------------------------------------------------------------

                                                                                           THE UNITED STATES OF AMERICA

Effective Date of permit October 1, 1999                             By /s/ [illegible]
                         ----------------------------------------       ------------------------------------------------------------
                                                                                              (Authorized Officer)
The permit is issued for a period of     two    years
                                      ---------

                                                                     Chief, Branch of Solid Minerals                     9/23/99
                                                                     ---------------------------------------------------------------
                                                                                  (Title)                                (Date)
</TABLE>

<PAGE>

                                                                          Page 2

A permit for the lands in Item 5 is hereby issued under the

_____    Mineral Leasing Act, 30 U.S.C. 181 et seq.,
_____    Acquired Lands Leading Act, 30 U.S.C. 351 et seq.,
_____    Section 402 of Reorganization Plan No.  3 of 1946, 5 U.S.C.
           Appendix 1031,
_____    Other Special Act(s) (as indicated below)

and is subject to all regulations found in 43 CFR 3500 and to the terms and
conditions set forth.

This permit, to the extent applicable, is subject to standard and/or special
stipulations. XX Stipulations are attached.

PERMIT TERMS AND CONDITIONS

Sec. 1. Rights conferred by issuance of prospecting permit. Permittee is granted
the exclusive right to prospect on and explore the lands to determine the
existence of a valuable deposit of the mineral applied for or any compound of
that mineral in accordance with the terms and conditions of the permit.
Permittee shall diligently prospect the lands by core drilling or other
acceptable methods. The permittee may remove only such material as is necessary
to demonstrate the existence of a valuable mineral deposit.

Sec. 2. Operating regulations. (a) Permittee shall comply with all regulations
of the Secretary of the Interior; and, as to the lands described herein under
his jurisdiction, to the regulations and orders of the Secretary of Agriculture.

(b) Permittee shall comply with the provisions of the operating regulations of
the Bureau of Land Management (43 CFR 3590) and all orders issued pursuant
thereto. Copies of the operating regulations may be obtained from the authorized
officer.

(c)  Permittee shall maintain a permit bond in the amount determined by the
authorized officer.

(d) Permittee shall allow inspection of the premises and operations by duly
authorized representatives of the Departments of the Interior, Agriculture, or
other agency administering the lands and shall provide for the free ingress and
egress of Government officers and users of the lands under authority of the
United States.

Sec. 3. Multiple use. (a) Valid existing rights acquired prior hereto on the
lands described herein will not be adversely affected hereby.

(b) The granting of this permit will not preclude the issuance of other permits,
leases, or other development of the same lands.

(c) The permitted lands shall be subject, at all times, to any other lawful uses
by the United States, its lessees, permittees, licensees, and assigns, but such
use shall not materially interfere with the permittee's operations hereunder.

(d) The Government reserves the right to sell or otherwise dispose of the
surface of the permitted lands under existing law or laws hereafter enacted,
insofar as such disposal will not materially interfere with the rights of the
permittee.

(e) The permittee shall afford all facilities for inspection of the prospecting
work on behalf of the Secretary of the Interior or head of agency administering
the lands and to make a report, on demand, of all matters pertaining to the
character, progress, and results of such work.

(f) The permittee shall observe such conditions an to the use and occupancy of
the surface of the lands as provided by law, in case any of said lands shall
have been or may be entered or patented with a reservation of mineral deposits
to the United States.

Sec. 4. Removal of deposits. Permittee shall remove from the lands only such
deposits as may be necessary to experimental work or to establish the existence
of valuable deposits within the permit area and shall keep a record of all
minerals mined.

Sec.5. Rental. Permittee must pay an annual rental of 50 cents per acre, or
fraction thereof, but not less than $20 per year. The annual rental payment
shall be made on or before the anniversary date of the permit, payable to
Minerals Management Service.

Sec. 6. Extension of permit. (a) This permit may be subject to extension under
applicable regulation upon approval of the authorized officer of the Bureau of
Land Management and upon the showing of entitlement hereto. (No extension may be
granted for sodium or sulphur prospecting permits.) authorized by law or
regulation, must be filed in the proper BLM office at least 90 days prior to the
date of expiration of this permit. Unless such an application is filed within
the time specified, this permit will expire without notice to the permittee.

Sec. 7. Assignments. All assignments or transfers of this permit or of any
interest therein must be filed with the Bureau of Land Management for approval
in accordance with the provisions of the appropriate regulation and will take
effect as of the first day of the month following approval thereof, or, if
transferee so requests, as of the first day of the month during which such
approval is given.

Sec. 8. Relinquishment of permit. Permittee may relinquish this permit, in whole
or part, by filing in the proper BLM office a written relinquishment which, upon
acceptance by the authorized officer, shall be effective as of the date of
filing.

Sec. 9. Termination or cancellation. (a) This permit shall terminate
automatically upon failure of the permittee to pay the rental on or before the
anniversary date thereof.

(b) This permit may be cancelled in accordance with the regulations upon failure
by permittee to comply with the regulations or the provisions of the law, or for
violation of any of the terms or stipulations of the permit and exploration
plan. Such cancellation may occur if such failure or default continues for 30
days after service of written notice thereof by the authorized officer.

Sec. 10. Protection of surface, natural resources, and improvements. The
permittee agrees to take such reasonable steps as may be needed to prevent
operations on the permitted lands from unnecessarily (1) causing or contributing
to soil erosion or damaging crops, including forage, and timber growth thereon
or on Federal or non-Federal lands in the vicinity; (2) polluting air and water;
(3) damaging improvements owned by the United States or other parties; or (4)
destroying, damaging or removing fossils, historic or prehistoric ruins, or
artifacts; and upon any partial or total relinquishment or the cancellation or
expiration of this permit, or at any other time prior thereto when required and
to the extent deemed necessary by the lessor to fill any pits, ditches and other
excavations, remove or cover all debris, and so far as reasonably possible,
restore the surface of the permitted land and access roads to their former
conditions, including the removal of structures as and if required. The lessor
may prescribe the steps to be taken and restoration to be made with respect to
the permitted lands and improvements thereon whether or not owned by the United
States.

Sec. 11. Antiquities and objects of historic value. When American antiquities or
other objects of historic or scientific interest including but not limited to
historic or prehistoric ruins, fossils or artifacts are discovered on lands
covered by this permit, or discovered during performance of this permit, the
item(s) or condition(s) will be left intact and immediately brought to the
attention of the contracting officer or his authorized representative.

Sec. 12. Discovery of Valuable Deposit. A permittee may file an application for
a preference right lease not later than 60 days after expiration of the
prospecting permit. An applicant for a preference right lease must show that a
valuable deposit of the mineral specified in the prospecting permit was
discovered within the permit area and during the life of the permit. For
preference right lease applications for sodium, potassium and sulphur, it
additionally must be shown that the lands are chiefly valuable for that mineral
(as opposed to nonmineral disposition of the lands). See regulations in 43 CFR,
Part 3500 for filing requirements for specific minerals.

Sec. 13. Equal opportunity clause. This permit is subject to the provisions of
Executive order No. 11246 of Sept. 24, 1965, as amended, which sets forth the
nondiscrimination clauses. A copy of this order may be obtained from the
authorized officer.

Sec. 14. Special Stipulations.                                      See attached

                                       -2-

<PAGE>

Page 3

                    UNITED STATES DEPARTMENT OF THE INTERIOR
                            Bureau of Land Management

                                                                  MTM 88980 Acq.

           ACQUIRED MINERALS - PROSPECTING PERMIT SPECIAL STIPULATIONS

1.      BOND. The permittee shall file with the Montana State Office of the
Bureau of Land Management a bond prior to permit issuance in the amount of
$1,000 for the use and benefit of the United States to insure surface and
subsurface reclamation. An increase in the amount of the bond may be required
upon approval of the exploration plan or upon changes in the exploration plan,
or a t any other time during the life of the permit to reflect changed
conditions.

2.      EXTENSION. To qualify for an extension of the permit, the permittee must
drill or excavate at least one exploration hole, trench, test pit, or perform
other comparable exploration, (e.g., substantial amounts of work as described in
stipulation No. 4.) The requirements may be waived by the Field Office Manager
if the permittee is unable to comply due to conditions beyond the permittee's
control or for other reasons, as provided by regulation 43 CFR 3562.9.

3.      SUPERVISION. The Field Office Manager is responsible for the review and
approval of exploration plans and modifications thereof, inspection and
enforcement of requirements, and will receive quarterly progress reports
submitted by the permittee. These reports will describe, with narrative and
maps, surface disturbance and/or reclamation and exploration work completed as
of the date of the report.

4.      EXPLORATION RESULTING IN NO SURFACE DISTURBANCE. Prior to conducting
activities on the permit area which do not disturb the surface or surface
resources, (e.g., geological mapping, geochemical surveys, ground and aerial
geophysical surveys, and sampling of outcrops and old workings), the permittee
shall notify the Field Office Manager, in writing, when such activities will
commence, and thereafter furnish quarterly progress reports as described above.
The results of such work shall be submitted in accordance with the requirements
of stipulation No. 6.

5.      EXPLORATION RESULTING IN SURFACE OR SURFACE RESOURCE DISTURBANCE. Prior
to conducting activities which disturb the surface or surface resources on the
permit area, the permittee will submit to the Field Office Manager, for review
and approval, three copies of the proposed exploration plan containing the
information required by regulation 43 CFR 3562.3-3. After the plan is approved,
the permittee shall furnish the Office Manager with written notice stating when
the approved activities will commence, and thereafter furnish the Field Office
Manager with quarterly reports on the progress of the exploration.

Exploration plans may be modified by the Field Office Manager to adjust to
changed conditions or to correct an oversight. The permittee may modify an
approved plan by submitting a written justification of the proposed changes to
the Field Office Manager for prior approval.

If circumstances warrant, or if development of an exploration plan for the
entire operation is dependent upon unknown factors which cannot or will not be
determined except during the progress of the exploration, a partial plan may be
approved and supplemented from time to time. The permittee shall not, however,
perform any exploration except under an approved plan.

                                       -3-

<PAGE>

                                                                  MTM 88980 Acq.

Page 4

6.      EXPLORATION DATA SUBMITTAL. The geologic data gathered under the terms
of this prospecting permit shall be submitted promptly after the conclusion of
exploration to the Chief, Branch of Solid Minerals, Montana State Office of the
Bureau of Land Management. Such data may include but is not limited to maps,
drill hole logs, analyses, cross sections, or other graphic illustrations
showing the geologic and physical mode of occurrence of the deposit.

7.      DISCOVERY DATA. In the event the permittee applies for a preference
right lease, geologic and supplementary data will be used to determine whether
or not the permittee has discovered a valuable deposit. The supplementary data
will indicate the nature of the deposit, the physical and geologic mode of
occurrence, the average grade and tonnage as established prior to permit
expiration, the anticipated mining and processing methods, and the intended
markets. A valuable deposit is a deposit of such character and quantity that a
prudent person would be justified in the further expenditure of his labor and
means with a reasonable prospect of developing a valuable mine.

Exploration plans may be changed by mutual consent of the Field Office Manager
and the operator at any time to adjust to changed conditions or to correct an
oversight. To obtain approval of a changed or supplemental plan, the operator
shall submit a written statement of the proposed changes or supplement and the
justification of the changes proposed.

 /s/ Peter Ellsworth                                      9/15/99
--------------------------------------------------------------------------------
(Permittee's Signature)                             (Date)

--------------------------------------------------------------------------------
(Permittee's Signature)                             (Date)

                                       -4-

<PAGE>

Page 5

                                                                 MTM 88980 (Acq)

                     PROSPECTING PERMIT SPECIAL STIPULATION

1. The permittee shall contact William Lewis at telephone number (406) 538-6627
for permission to cross the private land before entering.

                                    Exhibit A

                                       -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]