Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals U.S. Inc. - Exhibit 4.4

 MINING LEASE AGREEMENT 

This Agreement is made effective as of December 31,
  2003 

 BETWEEN: 

ROMARCO MINERALS INC., a corporation
  incorporated under the laws of Ontario and having an address of Suite 1500,
  885 West Georgia Street, Vancouver, British Columbia V6C 3E8, facsimile no.:
  (604) 688-9274 

(“Romarco”) 

AND: 

PARAGON PRECIOUS METALS, LLC,
  a limited liability company, organized under the laws of Nevada and having an
  address of 80 Bitterbrush Road, Reno, Nevada 89523, facsimile no.: (775) 345-7699

(“Paragon”) 

WHEREAS: 

	 A.      	 Paragon has the right to conduct mining exploration
        and related operations on the Property (as defined below) known as the
        Buckskin National Project located in the National District of Humboldt
        County, Nevada; and 

	 	 
	 B.      	 Paragon has determined to grant Romarco an exclusive
        lease of the Property. 

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Paragon and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

	 1.      	 Interpretation 

	 
	 1.1      	 Definitions. For the purposes of
        this Agreement the following words and phrases will have the following
        meanings: 

	 
	 	 (a)     
      
	 “Affiliate” means any person, partnership,
        limited liability company, joint venture, corporation, or other form of
        enterprise which Romarco Controls, is Controlled by, or is under common
        Control with. 

	 
	 	 (b)      
	 “Additional Claims” means any mining
        claims which either party may acquire and/or stake on open locatable ground
        during the Term of this Agreement within the Property and the area lying
        within one mile of the outer boundaries of the Property. 

	 
	 	 (c)      	 “Control” used as a verb means, when used with respect to
      an entity, the ability, directly or indirectly through one or more intermediaries,
      to direct or cause the direction of the management and policies of such
      entity through (i) the legal or beneficial ownership of voting securities
      or membership interests; (ii) the right to appoint managers, directors or
      corporate management; (iii) contract; (iv) operating agreement; (v) voting
      trust; or otherwise; and “Control” used as a noun means an interest
      which gives the holder the ability to exercise any of the foregoing powers.
    

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	 	 (d)     
      
	 “Effective Date” means the date of this
        Agreement first written above. 

	 
	 	 (e)      
	 “Effective Date Anniversary” means the
        anniversary of the Effective Date in each year of the Term. 

	 
	 	 (f)      
	 “Expenditure” means all costs incurred
        to perform work on the Property. 

	 
	 	 (g)      
	 “Land Holding Fees” means all required
        payments in connection with keeping the Property in good standing including
        either (i) the U.S. Bureau of Land Management; or (ii) Humboldt County,
        Nevada. 

	 
	 	 (h)      
	 “Lease” means the grant of all rights,
        title and interest in and to the Property including, without limitation,
        the surface (if any) and subsurface rights thereof, all ores, minerals
        and mineral rights, and all the rights, title and interest which may be
        acquired by or for Paragon in or pertaining to the Property or any part
        of it during the Term. 

	 
	 	 (i)      
	 “Market Price” at any time means the
        weighted average closing price of the Shares for the 20 trading days prior
        to the date of determination, as posted by the TSX Venture Exchange, or
        such other exchange where the Shares may be listed (or quoted) for trading
        from time to time, and if the Shares are not listed (or quoted) for trading
        on any stock exchange, then the Market Price shall be determined by the
        Board of Directors of Romarco, acting reasonably. 

	 
	 	 (j)      
	 “Net Smelter Returns” means the gross
        amount paid by smelters or purchasers for the minerals or metals in the
        ores from the Property during each year, after deducting only the charges
        made for smelting, treating and refining the ores, minerals and metals,
        all as determined in accordance with Schedule “C” attached
        hereto. 

	 
	 	 (k)      
	 “Net Smelter Returns Royalty” means
        a royalty on the Net Smelter Returns calculated using the percentages
        set out on Schedule “B” attached hereto. 

	 
	 	 (l)      
	 “Property” means the 90 unpatented mining
        claims held by Paragon and known as the Buckskin National Project located
        in the National District of Humboldt County, Nevada, and which are listed
        on Schedule “A” attached hereto together with any rights of
        Paragon in any Additional Claims. 

	 
	 	 (m)      
	 “Term” means the period of time referred
        to and described in Section 3. 

	 
	 	 (n)      
	 “Shares” means the common shares in
        the capital of Romarco. 

	 
	 	 (o)      
	 “Transfer” means transfer by sale, assignment,
        bequest, inheritance, trust, operation of law or other disposition. 

	 	 	 
	 	 
	1.2 	Currency. Unless otherwise specified,
        all references to “$” or “dollars” shall mean
        United States dollars.

	 	 
	2. 	Representations and Warranties 

	 	 
	2.1 	Paragon represents and warrants to Romarco
        that: 

 - 3 - 

	 	 (a)      	 Paragon is a limited liability company
        duly organized, validly existing, and in good standing under the laws
        of Nevada. 

	 
	 	 (b)      	 Paragon has the requisite corporate power
        and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement; and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement. 

	 
	 	 (c)      	 All requisite action on the part of Paragon,
        and its managers and members, necessary for the execution, delivery and
        performance of this Agreement has been taken. This Agreement, when executed
        and delivered by Paragon, will be legal, valid, and binding obligations
        of Paragon enforceable against Paragon in accordance with their terms.
        The execution, delivery and performance of this Agreement will not violate
        any provision of law; any order of any court or other agency of government;
        or any provision of any indenture, agreement or other instrument to which
        Paragon is a party or by which its properties or assets are bound; or
        be in conflict with, result in a breach of, or constitute (with due notice
        and lapse of time) a default under any such indenture, agreement or other
        instrument. There is no law, rule or regulation, or any judgment, decree
        or order of any court or governmental authority binding on Paragon which
        would be contravened by the execution, delivery, performance or enforcement
        of this Agreement. However, no representation is made as to: 

	 
	 	 	 (i)      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement; or 

	 
	 	 	 (ii)      
	 rights to indemnity under this Agreement for securities
        law liability. 

	 
	 	 	 Additionally, this representation is limited
        by applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (d)      	 Paragon has the right to Lease the Property
        to Romarco and to grant any rights given to Romarco in this Agreement.
      

	 
	 	 (e)      	 Paragon is, subject to the paramount title
        of the United States, the sole and only owner of the unpatented mining
        claims comprising the Property. 

	 
	 	 (f)      	 To the best of its knowledge and belief
        each of the unpatented claims included in the Property will have been
        validly located, filed and recorded in compliance with the laws of the
        State of Nevada and of the United States as they relate to location and
        recording of such claims; that Paragon will have timely complied with
        all of the filing provisions of the Federal Land Policy and Management
        Act (43 U.S.C. Section 1701, et seq.) as they pertain to the unpatented
        claims included within the Property; and that said claims are valid and
        subsisting mining claims. Paragon disclaims any representation or warranty
        concerning the existence or proof of a discovery of locatable minerals
        on or under the Property. 

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	 	 (g)      	 Paragon has fully and timely paid the
        Land Holding Fees required to maintain the unpatented mining claims to
        the Effective Date of this Agreement. 

	 
	 	 (h)      	 Paragon’s rights in the Property
        are not subject to any prior agreement, encumbrance, burden or restriction,
        created by any act or instrument of Paragon other than the assignment
        by Paragon of a one-half interest in certain royalty rights to Buckskin
        National Mine Ltd. and John Bell pursuant to that certain assignment dated
        February 27, 2004; that to the best of Paragon’s knowledge, the
        Property is free from liens and encumbrances and other adverse claims
        by third parties; and that the Property is not burdened with any royalties,
        overriding royalties, net profits interests or payments on production.
      

	 
	 	 (i)      	 There are no outstanding pending actions,
        suits or claims affecting all or any of the Property, nor, to the best
        of Paragon’s knowledge, has any such action, suit or claim been
        threatened, either verbally or in writing, nor, to the best of Paragon’s
        knowledge, is there any basis for any action, suit or claim. 

	 
	 	 (j)      	 The execution, delivery and performance
        of this Agreement by Paragon and the consummation of the transactions
        contemplated herein, including the Lease of the Property to Romarco, does
        not and will not result in or constitute any of the following: (i) adefault,
        breach or violation or an event that, with notice or lapse of time or
        both, would be a default, breach or violation of any of the terms, conditions
        or provisions of the articles or by-laws of Paragon, or any lease, lien,
        permit, promissory note, security agreement, commitment, indenture, mortgage,
        hypothecation, deed of trust or other agreement, instrument or arrangement
        to which Paragon is a party or by which it or the Property is bound; (ii)
        an event that would permit any party to rescind any agreement or accelerate
        the maturity of any obligation of Paragon related to the Property; (iii)
        the creation or imposition of any lien on the Property; or (iv) an event
        requiring the consent of any other party, including, without limitation,
        the members or owners of Paragon. 

	 
	 	 (k)      	 To the best of Paragon’s knowledge,
        there are no outstanding work orders or actions required to be taken relating
        to environmental matters, or any existing condition on the Property which
        could be the basis therefor, in respect to the Property or any operations
        thereon and that it has no knowledge of any other environmental issues
        affecting the Property. 

	 
	 	 (l)      	 With respect to the Share Payments to
        be made pursuant to Section 5.3: 

	 
	 	 	 (i) 
	Paragon was not organized for the purpose of investing
        in the Shares; 

	 
	 	 	(ii) 
	 Paragon is acquiring the Shares solely for its own
        account for investment and not with a view to or for sale or distribution
        of the Shares or any portion thereof and without any present intention
        of selling, offering to sell or otherwise disposing of or distributing
        the Shares or any portion thereof in any transaction other than a transaction
        complying with the registration requirements of the Securities Act of
        1933, as amended (the “Act”), and applicable state securities
        laws, or pursuant to an exemption therefrom; 

	 
	 	 	(iii) 
	 Paragon has had access to all the information it
        deems necessary and appropriate to enable it to evaluate the financial
        risk inherent in making an investment in the 

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	 	 	 	 Shares, including the information contained in Romarco’s
        periodic reports and other materials publicly filed by Romarco in Canada
        (the “Disclosure Documents”); 

	 
	 	 	 (iv)	 Paragon has relied solely on the Disclosure Documents,
        the advice of its representatives, and independent investigations made
        by it and/or its representatives in making the decision to purchase the
        Shares; 

	 
	 	 	 (v)	 Paragon understands that its investment in the Shares
        involves a high degree of risk and will be a highly speculative investment,
        and Paragon is able, without impairing its financial condition, to hold
        the Shares for an indefinite period of time and to bear the economic risk
        of, and withstand a complete loss of, any investment in the Shares; 

	 
	 	 	 (vi)	 Paragon acknowledges that Romarco has a history
        of losses, and Romarco’s ability to continue its operations is dependent
        upon its ability to raise adequate funding or generate adequate revenues,
        and to reverse such losses, none of which is assured. 

	 
	 	 	 	 If Romarco is unable to raise adequate funding or
        is unable to cease accumulating losses, it may be required to restrict
        or cease its operations, which may result in the loss of Paragon’s
        investment in the Shares; 

	 
	 	 	 (vii)	 Paragon has carefully considered and has, to the
        extent it believes such discussion necessary, discussed with its professional
        legal, tax and financial advisors the suitability of an investment in
        Romarco for the particular tax and financial situation of Paragon, and
        Paragon and/or Paragon's advisors have determined that the Shares are
        a suitable investment for Paragon; 

	 
	 	 	 (viii)	 Paragon, through its representatives and/or its
        professional legal, tax and financial advisors, has such knowledge and
        experience in financial and business matters that it is capable of evaluating
        the merits and risks of its acquisition of the Shares, or has a pre-existing
        personal or business relationship with Romarco or any of its officers,
        directors, or controlling persons of a duration and nature that enables
        Paragon to be aware of the character, business acumen and general business
        and financial circumstances of Romarco; 

	 
	 	 	 (ix)	 Paragon understands that there may be material tax
        consequences to it of an acquisition or disposition of the Shares under
        applicable United States and Canadian federal, provincial/state and local
        tax laws, and Paragon is solely responsible for determining such consequences
        and the suitability of an investment in the Shares in light of such tax
        consequences; in particular, Romarco makes no representation as to whether
        it has been or will be a “passive foreign investment company”
        for United States tax purposes; 

	 
	 	 	 (x)	 Paragon has received no general solicitation or
        general advertisement and has attended no seminar or meeting (whose attendees
        have been invited by any general solicitation or general advertisement)
        and has received no advertisement in any newspaper, magazine, or similar
        media, broadcast on television or radio regarding the offering of the
        Shares; 

 - 6 - 

	 	 	 (xi)	 Paragon acknowledges that the Shares have not been
        registered under the Act, or the securities laws of any state of the United
        States, that the Shares are being offered and sold to Paragon in reliance
        upon an exemption from such registration requirements, and such securities
        must be held indefinitely unless a transfer of them is subsequently registered
        under the Act and applicable state securities laws or an exemption from
        such registration requirements is available. 

	 
	 	 	 (xii)	 Paragon agrees that the certificates representing
        all of the Shares, and any certificates issued in exchange therefor or
        in replacement thereof shall have endorsed thereon a legend to the following
        effect: 

	 
	 	 	 	 “THE SECURITIES REPRESENTED HEREBY HAVE
        NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “1933 ACT”). THESE SECURITIES
        MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE
        COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF
        REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE WITH THE EXEMPTION
        FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULE
        144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION
        UNDER THE 1933 ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING
        THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
        FURNISHED TO THE COMPANY AN OPINION OF COUNSEL, OF RECOGNIZED STANDING,
        OR OTHER EVIDENCE OF EXEMPTION, REASONABLY SATISFACTORY TO THE COMPANY.
        DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY”
        IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. AT ANY TIME
        THE SECURITIES ARE BEING SOLD WHILE COMPANY IS A “FOREIGN ISSUER”
        AS DEFINED IN RULE 902 UNDER THE 1933 ACT, A NEW CERTIFICATE, BEARING
        NO LEGEND, THE DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY”
        MAY BE OBTAINED FROM THE COMPANY’S TRANSFER AGENT UPON DELIVERY
        OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN FORM SATISFACTORY
        TO THE COMPANY AND ITS TRANSFER AGENT TO THE EFFECT THAT THE SALE OF THE
        SECURITIES IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
        THE 1933 ACT.”; 

	 
	 	 	 	 provided, however, that if any such Shares are being
        sold outside the United States in compliance with Rule 904 of Regulation
        S under the Act at a time when Romarco is a “foreign issuer”
        as defined in Rule 902 under the Act, the foregoing legend may be removed
        by providing a declaration to Romarco and its transfer agent to the following
        effect (or as Romarco may determine from time to time): 

	 
	 	 	 	 “The undersigned (a) acknowledges that the
        sale of the securities of the Company to which this declaration relates
        is being made in reliance on Rule 904 of 

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	 	 	 	 Regulation S under the United States Securities
        Act of 1933, as amended (the “U.S. Securities Act”) and (b)
        certifies that (1) the undersigned is not an affiliate of the Company
        (as that term is defined in Rule 405 under the U.S. Securities Act), (2)
        the offer of such securities was not made to a person in the United States
        and either (A) at the time the buy order was originated, the buyer was
        outside the United States, or the seller and any person acting on its
        behalf reasonably believe that the buyer was outside the United States
        or (B) the transaction was executed on or through the facilities of The
        Toronto Stock Exchange, or the TSX Venture Exchange and neither the seller
        nor any person acting on its behalf knows that the transaction has been
        prearranged with a buyer in the United States, (3) neither the seller
        nor any affiliate of the seller nor any person acting on any of their
        behalf has engaged or will engage in any directed selling efforts in the
        United States in connection with the offer and sale of such securities,
        (4) the sale is bona fide and not for the purpose of “washing off”
        the resale restrictions imposed because the securities are “restricted
        securities” (as that term is defined in Rule 144(a)(3) under the
        U.S. Securities Act), (5) the seller does not have a short position in
        the securities sold in reliance on Rule 904 of Regulation S under the
        U.S. Securities Act and does not intend to replace such securities with
        fungible unrestricted securities, and (6) the contemplated sale is not
        a transaction, or part of a series of transactions, which, although in
        technical compliance with Regulation S, is part of a plan or scheme to
        evade the registration provisions of the U.S. Securities Act. Terms used
        herein have the meanings given to them by Regulation S.”; and 

	 
	 	 	 	 provided, further, that if any of such Shares are
        being sold in compliance with Rule 144 under the Act and in compliance
        with applicable state securities laws, the foregoing legend may be removed
        by providing Romarco with a written opinion of U.S. counsel reasonably
        satisfactory to Romarco to the effect that such legend is no longer required;
      

	 
	 	 	 (xiii)	 Paragon acknowledges that Romarco is under no obligation
        to remain a “foreign issuer” as defined in Rule 902 under
        the Act; and 

	 
	 	 	 (xiv)	 Paragon understands that Romarco will make a notation
        in its records of the above described restrictions on transfer. 

	 	 	 	 
	2.2 	Romarco represents and warrants to Paragon
      that: 

	 	 (a)      	 Romarco is a corporation duly organized,
        validly existing, and in good standing under the laws of the Province
        of Ontario, Canada. 

	 
	 	 (b)      	 Romarco is duly registered to do business
        in the State of Nevada. 

	 
	 	 (c)      	 Romarco has the requisite corporate power
        and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement; and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement. 

 - 8 - 

	 	 (d)      	 All requisite corporate action on the
        part of Romarco, and its officers and directors, necessary for the execution,
        delivery and performance of this Agreement has been taken. 

	 
	 	 	 This Agreement, when executed and delivered
        by Romarco, will be legal, valid, and binding obligations of Romarco enforceable
        against Romarco in accordance with their terms. The execution, delivery
        and performance of this Agreement will not violate any provision of law;
        any order of any court or other agency of government; or any provision
        of any indenture, agreement or other instrument to which Romarco is a
        party or by which its properties or assets are bound; or be in conflict
        with, result in a breach of, or constitute (with due notice and lapse
        of time) a default under any such indenture, agreement or other instrument.
        There is no law, rule or regulation, or any judgment, decree or order
        of any court or governmental authority binding on Romarco which would
        be contravened by the execution, delivery, performance or enforcement
        of this Agreement. However, no representation is made as to: 

	 
	 	 	 (i)     
      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement; or 

	 
	 	 	 (ii)      
	 rights to indemnity under this Agreement for securities
        law liability. 

	 
	 	 	 Additionally, this representation is limited
        by applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (e)      	 Romarco has obtained all consents, approvals,
        authorizations, declarations, or filings required by any federal, state,
        local, or other authority (except the TSX Venture Exchange), or any lenders,
        creditors, and other third parties in connection with the valid execution,
        delivery, and performance of this Agreement and the consummation of the
        transactions contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement
        and the transactions contemplated hereby have been carried on by Romarco
        in such manner as not to give rise to any valid claim against Paragon
        for a brokerage commission, finder’s fee or other fee or commission
        arising by reason of the transactions contemplated by this Agreement.
      

	 
	 	 (g)      	 When issued, the Share Payments (as defined
        in Section 5.3) will be subject only to those limitations on trading imposed
        by the TSX Venture Exchange or applicable securities laws including the
        restrictions described in Section 2.1(l). 

 2.3         The representations
  and warranties set out in Sections 2.1 and 2.2 are conditions upon which each
  of Paragon and Romarco has relied in entering into this Agreement and will survive
  the termination of the Agreement, and each of Paragon and Romarco hereby forever
  indemnifies and saves the other harmless from all loss, damage, costs, actions
  and suits arising out of or in connection with any breach of any representation
  or warranty made by it and contained in this Agreement. 

 3.           Term
  

 This Agreement will have a term of 10 years, commencing on
  the Effective date (the “Term”), unless sooner terminated
  pursuant to the terms of this Agreement. Romarco will have the option, in its
  sole discretion, to renew this Agreement at the end of the Term for one or more
  additional 10 year terms, but may not renew this Agreement more than five successive
  times.

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 4.            Grant of
  Lease 

 4.1          Grant.
  In consideration of the rents, payments, covenants and agreements hereinafter
  contained on the part of Romarco to be paid, observed and performed, and except
  as specifically provided, Paragon will Lease the Property exclusively to Romarco
  for the Term, for the purposes and subject to the terms and conditions provided
  in this Agreement. 

 4.2          Mining
  Rights. Paragon will grant to Romarco the exclusive right to use the Property
  for the Term of this Agreement in the following manner: 

	 	 (a)      	 Romarco will act as exclusive operator of the Property
        and will be entitled to enter into and on the Property throughout the
        Term to prospect and explore for, develop, mine by any method now known
        or hereafter discovered (including but not limited to, underground, open
        pit, in-situ and solution methods), remove, produce, process by any method
        now known or hereafter discovered, mill, prepare for market, store, sell
        and dispose of all ores, minerals and metals which are or may be found
        therein or thereon. Romarco may, in its sole discretion make any use or
        uses of the Property consistent with the foregoing purposes, including
        without limiting the generality of the foregoing, the construction of
        roads, railways, conveyors, plants, buildings, docks and aircraft landing
        areas, and have any machinery, equipment and supplies on the Property
        as it deems necessary. 

	 
	 	 (b)      	 In so far as Paragon may lawfully do so, Paragon
        grants to Romarco the right to divert streams, to remove lateral and subjacent
        supports, to cave, subside or destroy the surface of any part of it, to
        deposit earth, rocks, waste, lean ore or material on any part or parts
        of the Property and to commit waste to the extent necessary, usual or
        customary in carrying out any or all of the foregoing rights. 

	 
	 	 (c)      	 Romarco will have complete discretion and control
        with respect to all prospecting, exploration, development or other mining
        work carried out on the Property including, without limiting the generality
        of the foregoing, the methods of mining any ore body found on the Property,
        the treatment of any ores, metals, or materials removed from the ore body,
        and the marketing of ores, metals, materials or other product resulting
        therefrom and will have exclusive charge of all operations on the Property.
      

 4.3          Work
  Standards. All work done by Romarco will be executed in accordance with
  good mining, exploration and development practice and in compliance with all
  applicable laws and regulations including all reclamation and environmental
  obligations. 

 4.4         
  Exclusive Possession. Romarco will have full rights of access to and
  quiet possession of the Property. Upon execution of this Agreement, Paragon
  shall execute and deliver to Romarco a memorandum evidencing rights of Romarco
  under this lease in the form attached hereto as Schedule D. 

 4.5          Ores
  and Products. Subject to the terms of this Agreement, all ores, minerals
  or metals extracted or produced from the Property during the Term, including
  ores under treatment by Romarco, and all products resulting therefrom in the
  form of concentrates, metallics, bullion, tailings, or otherwise will at all
  times become the sole property of and be sold and shipped as the sole property
  of Romarco. 

 4.6          Expenditures.
  Romarco will pay all Expenditures incurred by Romarco related to the Property
  each year during the Term of this Agreement, including any Land Holding Fees
  paid by Paragon, but will 

 - 10 - 

 not be required to incur any fixed amount of Expenditure in
  any year apart from the Land Holding Fees. For greater certainty, Paragon shall
  pay all Land Holding fees, provided that Paragon may invoice Romarco for all
  such Land Holding Fees, either after or not more than 45 days in advance of
  payment by Paragon, and Romarco shall, within 30 days of such invoice, pay to
  Paragon the amount of such invoice.

 4.7          After-Acquired
  Rights. If Romarco acquires and/or stakes any Additional Claims during the
  Term of this Agreement, Romarco may deal with any such claims as owner, provided
  that any such Additional Claims shall form part of the Property for the purpose
  of Section 5.4 and upon termination of this Agreement, Romarco will, if requested
  by Paragon, assign all rights, titles and interests in any Additional Claims
  to Paragon. 

 4.8          Encumbrances.
  Romarco shall have the right to pledge its interest in the Property as security
  for any loan or other borrowing by Romarco, provided that Romarco shall not
  permit any lien, charge or other encumbrance to be registered against the Property
  except with the consent of Paragon, such consent not to be unreasonably withheld.
  Any such security arrangement entered into by Romarco in connection with a bona
  fide borrowing or other financing arrangement shall not constitute a Change
  of Control, as contemplated in Section 10.2. 

 5.            Rent and
  Royalty 

 5.1          Initial
  Payment. Romarco will pay to Paragon $30,000 upon execution of this
  Agreement as consideration for the Lease of the Property, together with all
  Land Holding Fees actually paid by Paragon during 2003.

 5.2          Rent.
  Subject to Section 5.4, Romarco will pay to Paragon a cash rent each
  year as consideration for the Lease of the Property, according to the following
  schedule: 

	 	 (a)      	 $40,000 on or before the Effective Date Anniversary
        in 2004; 

	 
	 	 (b)      	 $50,000 on or before the Effective Date Anniversary
        in 2005; 

	 
	 	 (c)      	 $60,000 on or before the Effective Date Anniversary
        in 2006; 

	 
	 	 (d)      	 $70,000 on or before the Effective Date Anniversary
        in 2007; 

	 
	 	 (e)      	 $80,000 on or before the Effective Date Anniversary
        in 2008; 

	 
	 	 (f)      	 $90,000 on or before the Effective Date Anniversary
        in 2009; 

	 
	 	 (g)      	 $100,000 on or before the Effective Date Anniversary
        in 2010, and on or before each successive Effective Date Anniversary thereafter
        for the Term of the Agreement. 

 5.3          Share
  Payment. Romarco will issue to Paragon up to 1,500,000 fully paid and non-assessable
  Shares as consideration for the Lease of the Property according to the following
  schedule:

	 	 (a)      	 300,000 Shares upon execution of this Agreement; 
	 
	 	 (b)      	 300,000 Shares on or before December 31, 2004; 

 - 11 - 

	 	 (c)  	 as of December 31 in each of 2005, 2006
        and 2007, that number of Shares which is equal to the number which is
        obtained by dividing $300,000 by the greater of (i) $1.00; and
        (ii) the Market Price on December 31 in that year (converted into U.S.
        dollars at the noon rate quoted by the Bank of Canada on such date) as
        promptly as reasonably practicable after that date;

(each a “Share Payment”
  and collectively the “Share Payments”) provided that in the
  event of  any alteration of the Shares, including any subdivision, consolidation
  or reclassification, and in  the event of any form of reorganization of
  Romarco, including any amalgamation, merger or  arrangement, Paragon shall,
  following the occurrence of any of those events, be entitled to  receive
  the same number of Shares that it would have been entitled to receive had the
  Share  Payment been made immediately prior to the occurrence of those events,
  and in the case of more  than one such event, all adjustments shall be
  cumulative.

 5.4          Royalty.
  Romarco will pay to Paragon the Net Smelter Returns Royalty within 30 days
  of each calendar quarter as consideration for the Lease of the Property during
  the Term. In any year during the Term of this Agreement in which Romarco does
  not earn Net Smelter Returns, no Net Smelter Returns Royalty will be payable.
  Upon the first payment of a Net Smelter Returns Royalty, Romarco shall not be
  required to make any further payments under Section 5.2, provided that if the
  Net Smelter Returns Royalty payable in any year is less than the amount that
  would have been payable under Section 5.2 (the “Minimum Payment”),
  then Romarco shall pay, in addition to any Net Smelter Return Royalty, a further
  amount such that the total amount paid is equal to the Minimum Payment. 

 6.            Option
  to Purchase 

 6.1          Option.
  Paragon grants to Romarco the exclusive right to purchase the Property,
  (the “Option”) subject to the Royalty reserved by Paragon and subject
  to Romarco’s obligations under the conveyance executed and delivered by
  Paragon on the closing of the Option. Romarco may exercise the Option at any
  time after Romarco (a) decides to commence development of or mining on the Property;
  (b) receives a bankable feasibility study; and (c) has in place substantially
  all required permits for the contemplated development or mining, provided however
  that Paragon shall provide all reasonably required co-operation to allow Romarco
  to exercise the Option concurrently with, or in advance of, the closing of any
  bank financing entered into in connection with the contemplated development
  or production. The Purchase Price for the Property shall be One Thousand Dollars
  ($1,000.00) . The Rental Payments paid by Romarco to Paragon shall not be
  credited against the Purchase Price. 

 6.2          Notice
  of Election. If Romarco elects to exercise the Option, Romarco shall deliver
  written notice to Paragon. The parties shall make diligent efforts to close
  the conveyance of the Property, as applicable, within thirty (30) days after
  Romarco’s delivery of the notice. 

 6.3          Real
  Property Transfer Taxes. Romarco shall pay the real property transfer taxes,
  if any, the costs of escrow and all recording costs incurred in closing of the
  Option. The parties acknowledge that there are presently no real property transfer
  taxes assessed on the transfer of title to unpatented mining claims, including
  the unpatented mining claims which constitute the Property. 

 6.4          Proration
  of Taxes. Payment of any and all state and local real property and personal
  property taxes levied on the Property and not otherwise provided for in this
  Agreement shall be prorated between the parties as of the closing of any transaction
  on the basis of a thirty (30) day month. The parties acknowledge that there
  are presently no real property taxes assessed against unpatented mining claims,
  including the unpatented mining claims which constitute the Property. 

 - 12 - 

 6.5          Payment
  on Closing. On closing of the Option, Romarco shall pay the Purchase Price
  to Paragon, in cash, certified cheque or bank draft or by wire transfer to an
  account designated by Paragon. 

 6.6          Conveyance
  on Closing. If Romarco exercises and closes the Option, Paragon shall execute
  and deliver to Romarco a conveyance of the Property which contains the reservation
  of the Net Smelter Returns Royalty and which obligates Romarco to make the Payments
  prescribed in Sections 5.2, 5.3 and 5.4 of this Agreement. On the closing of
  the Option, the parties shall complete the conveyance by inserting the description
  of all of the unpatented mining claims which comprise the Property on closing
  of the Option. Paragon and Romarco shall execute and deliver such other written
  assurances and instruments as are reasonably necessary for the purpose of closing
  the purchase of the Property. 

 6.7          Effect
  of Closing. On closing of the Option, Romarco shall own the Property, subject
  to Romarco’s obligations stated in the conveyance of the Property. 

 6.8         
  Paragon’s Option to Repurchase. If Romarco exercises the Option,
  upon conclusion of its operations on the Property and upon determination, in
  Romarco’s sole discretion, to abandon the Property, Romarco may offer
  to sell the Property to Paragon on terms to be agreed between Romarco and Paragon
  and Romarco shall thereafter have no further obligations under Section 5.4.

 7.            Taxes
  and Assessments 

 7.1          Business
  Taxes and other Taxes of Romarco. In each year, Romarco will pay when due
  and payable, all taxes, rates, duties and assessments (whether or not they are
  now contemplated by Paragon or Romarco) that may be levied, rated, charged,
  imposed or assessed against or in respect of the personal property, improvements,
  equipment or fixtures of Romarco on the Property or against or in respect of
  the use or occupancy of the Property by Romarco, or by any subcontractor (other
  than taxes as corporate income, profits or excess profits taxes assessed on
  the income of Paragon) whether any assessment fees are charged by any federal,
  state, county or other body. 

 7.2          Real
  Property Taxes.  Romarco will, in each year and within the time provided
  for by the taxing authorities, pay to the taxing authorities, and discharge
  all taxes including local improvement rates, impost charges or levies, rates,
  duties and assessments whether general or special that may be levied, rated
  charged or assessed against the Property or any part thereof from time to time
  on the basis of a separate assessment and separate tax bill by any taxing authority
  whether federal, state, county or otherwise provided that Romarco has been provided
  with written notice thereof by either Paragon or the appropriate taxing authority.
  Any taxes payable by Paragon which are imposed in lieu of, or as substitute
  for any real property taxes shall also be paid by Romarco following receipt
  of written notice thereof from Paragon. Romarco agrees to provide to Paragon
  within thirty days after demand by Paragon, a copy of any separate tax bills,
  and separate notices of assessments for the Property. Romarco will on request,
  promptly deliver to Paragon receipts of payment of all taxes paid to any taxing
  authorities and will furnish other information in connection therewith as Paragon
  may reasonably agree. 

 7.3          Paragon’s
  Taxes. Romarco will not be liable to pay any taxes or assessments levied
  on Paragon based on or payable by reason of: 

	 	 (a)      	 the income or net proceeds of mines of Paragon; 
	 
	 	 (b)      	 any payment made to Paragon pursuant to this Agreement; or 
	 
	 	 (c)      	 any operations or business carried on by Paragon and related to the Property.
    

 - 13 - 

 8.            Other
  Rights and Obligations of the Parties 

 8.1          Indemnity.
  Romarco will defend, indemnify and save harmless Paragon from and against all
  suits, claims, demands, losses and expenses (including all attorney’s
  fees on a solicitor and own client basis), that (a) directly arise as a result
  of Romarco’s activities on the Property; or (b) arise as a result of any
  breach of any representation, warranty or covenant of Romarco in this Agreement.
  Paragon will defend, indemnify and save harmless Romarco from and against all
  suits demands, losses and expenses (including all attorney’s fees on a
  solicitor and own client basis), that (a) directly arise as a result of any
  activities by a party other than Romarco from the date Paragon acquired the
  Property to the date of this Agreement, or by or on behalf of Paragon after
  the date of this Agreement; or (b) arise as a result of any breach of any representation,
  warranty or covenant of Paragon in this Agreement.

 8.2          Annual
  Reports. Romarco will provide Paragon with annual reports indicating any
  results and interpretations obtained or received in connection with exploration
  or development work on the Property. The annual report will be submitted to
  Paragon on or before 90 days following the Effective Date Anniversary of each
  year. Notwithstanding such disclosure by Romarco, it will not have any liability
  or responsibility to Paragon in connection with any reports or results that
  it provides to Paragon, or any information contained therein, and Paragon agrees
  that it will rely on its own appraisals and interpretations related thereto.

 8.3          Information
  Disclosure. Upon execution of this Agreement and throughout the Term, Paragon
  will make available to Romarco all information in its possession or control
  relating to work done on or with respect to the Property. Within 30 days following
  termination of this Agreement, Romarco shall deliver to Paragon copies of all
  factual data regarding the Property in Romarco’s possession at the time
  of termination which before termination have not been furnished to Paragon and,
  at Paragon’s request, Romarco shall deliver to Paragon all drilling core,
  samples and sample splits taken from the Property. 

 8.4         
  Site Visits. Paragon may visit the Property and have access to all exploration
  results and factual data from the Property, provided reasonable notice is given
  to Romarco and the costs of any such visits will be borne by Paragon and Romarco
  will be held blameless and will be indemnified by Paragon for any claim or liability
  arising out of any actions by or the presence of Paragon or its employees on
  the Property. Paragon acknowledges and agrees that Romarco will not bear any
  responsibility or liability for any use of any information so obtained by Paragon
  or as to the accuracy or completeness of such information. 

 8.5          Insurance.
  Romarco shall maintain a general liability insurance policy, and shall ensure
  that such policy names Paragon as an additional insured, in a minimum amount
  of US$1,000,000, provided that such policy can be obtained by Romarco on
  commercially reasonable terms, failing which Romarco shall use its commercial
  best efforts to obtain such alternative policy in such other amount as is available
  on commercially reasonable terms. 

 9.            Termination

 9.1          Romarco
  may terminate this Agreement at any time during the Term, by giving Paragon
  30 days written notice of termination. If termination occurs within 60 days
  prior to the due date of any Land Holding Fees, Romarco will be liable to reimburse
  Paragon for such Land Holding Fees. Upon termination all liabilities and obligations
  of Romarco to Paragon not then due or accrued will cease and terminate except
  any liabilities or obligations arising prior to termination. On Romarco’s
  termination of this Agreement, within ten days after termination Romarco shall
  execute and deliver to Paragon a release and termination of this Agreement in
  form acceptable for recording. 

 - 14 - 

 9.2         
  In the case of Romarco’s failure to make the Rental Payments or Share
  Payments, Paragon shall be entitled to give Romarco written notice of the default,
  and if such default is not remedied within 60 days after the receipt of the
  notice, then Paragon may terminate this Agreement by delivering notice to Romarco
  of Paragon’s termination of this Agreement. On termination of this Agreement
  based on Romarco’s default, within ten days after termination Romarco
  shall execute and deliver to Owner a release and termination of this Agreement
  in form acceptable for recording. 

 10.           Assignment
  and Change of Control 

 10.1          Right
  of First Offer. Each Party shall have the right to transfer all or any portion
  of its interest in this Agreement to an Affiliate provided the transferee agrees
  to be bound by the terms of this Agreement. Each party will have a right of
  first offer on any proposed Transfer by the other Party of all or any portion
  of the interest in this Agreement to a non-Affiliate of such other Party. A
  Party that wishes to Transfer all or any portion of its interest in this Agreement
  will first offer to Transfer such interest to the other Party for a price and
  on terms established by the Party proposing to Transfer. If the other Party
  does not accept such offer within 30 days, the Party proposing to Transfer will,
  for a period of 90 days, be entitled to Transfer its offered interest in this
  Agreement to a non-Affiliate third party for the same or greater price and on
  the same terms or terms no more favourable to the third party. The right to
  receive Share Payments pursuant to this Agreement may only be transferred or
  assigned in compliance with all applicable securities laws.

 10.2          Change
  of Control.  Romarco will pay to Paragon $500,000 within 30 days of
  the earlier of the date on which: (a) Romarco Transfers more than 50% of its
  interest in this Agreement to a non-Affiliate third party (“Change
  of Control”), provided that any such Transfer shall be subject to
  the terms of this Agreement, and shall not relieve Romarco of the obligation
  to make the Share Payment; or (b) Romarco receives a report from an independent
  third party, commissioned by Romarco, confirming a proven and probable gold
  reserve of more than 1,000,000 ounces. 

 GENERAL 

 11.           Confidentiality
  and Press Releases 

 Paragon agrees that the entering into of this Agreement and
  all data and information provided to or received by Paragon from Romarco with
  respect to the Property will be treated as confidential. Paragon will not disclose
  such information to third parties without obtaining the prior written consent
  of Romarco, such consent not to be unreasonably withheld, unless law or regulatory
  authority having jurisdiction requires the disclosure. Neither Party will make
  any publication or declaration or publicly divulge any information relating
  to the Property or this Agreement without obtaining the prior consent in writing
  from the other Party. Such consent will not be unreasonably withheld and cannot
  be withheld where applicable law requires public disclosure of such information.
  Each Party will provide no less than 24 hours advance notice to the other Party
  to review any press release or public disclosure that it proposes with respect
  to this Agreement or the Property. 

 12.           Notices

 12.1          Any
  notice, direction or other instrument required or permitted to be given under
  this Agreement will be in writing and may be given by the delivery of the same
  or by mailing the same by prepaid registered or certified mail or by sending
  the same by telegram, telex, telecommunication, facsimile or other similar form
  of communication, in each case addressed as follows: 

 - 15 - 

	 	 (a)      	 If to Paragon at: 
	 
	 	 	 Paragon Precious Metals, LLC

      80 Bitterbrush Road 

      Reno, Nevada 89523 
	 
	 	 	 Attention: Robert Hatch 

      Facsimile No.: (775) 345-7699 
	 
	 	 (b)      	 If to Romarco at: 
	 
	 	 	 Romarco Minerals Inc. 
	 	 	 Suite 1500, 885 West Georgia Street

      Vancouver, British Columbia V6C 3E8 
	 
	 	 	 Attention: Diane Garrett 

      Facsimile No.: (604) 688-9274 

 12.2          Any notice, direction
  or other instrument will: 

	 	 (a)      	 if delivered, be deemed to have been given and received
        on the day it was delivered; 

	 
	 	 (b)      	 if mailed, be deemed to have been given and received
        on the 10th day following the day of mailing, except in the event of disruption
        of the postal service in which event notice will be deemed to be received
        only when actually received; and 

	 
	 	 (c)      	 if sent by telegram, telex, telecommunication, facsimile
        or other similar form of communication, be deemed to have been given and
        received on the business day following the day it was so sent. 

 12.3          A
  Party may at any time give to the other Party notice in writing of any change
  of address of the Party giving such notice and from and after the giving of
  such notice the address or addresses therein specified will be deemed to be
  the address of such Party for the purposes of giving notice hereunder. 

 13.           Obligations
  Several. 

 The obligations of each party under this Agreement shall be
  in every case several and shall not be construed to be either joint or joint
  and several and nothing herein shall be construed as creating a partnership
  between the parties. Nothing contained in this Agreement shall be deemed to
  constitute a party an agent or legal representative of the other party or to
  create any fiduciary relationship for any purpose whatsoever. Except as otherwise
  specifically provided in this Agreement, a party shall not have any authority
  to act for, or to assume any obligation or responsibility on behalf of, any
  other party. Each party hereby waives its rights to partition of the Property
  and, to that end, agrees that it will not seek or be entitled to partition of
  the Property whether by way of physical partition, judicial sale or otherwise.

 - 16 - 

 14.           Entire
  Agreement. 

 This Agreement including Schedules “A”, “B”,
  “C” and “D” hereto, constitutes the entire Agreement
  between Paragon and Romarco pertaining to the Property and supersedes all prior
  agreements, understandings, negotiations and discussions, whether oral or written
  between Paragon and Romarco, and there are no warranties, representations or
  other agreements between Paragon and Romarco in connection with the Property
  except as set forth herein. 

 15.           Headings
  

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 16.           Further
  Assurances and Agreements 

 Each of the parties to this Agreement will take all such further
  steps and execute all such further and other documentation as may be necessary
  in order to more fully give effect to the provisions of this Agreement.

 17.           Counterparts

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which will be deemed to be an original and all of which
  will constitute one and the same document. 

 18.           Governing
  Law 

 This Agreement will be governed by and construed in accordance
  with the laws of the State of Nevada. 

 IN WITNESS WHEREOF the parties have executed this agreement
  as of the date first written above. 

	 ROMARCO MINERALS INC.  	 	 PARAGON PRECIOUS METALS, LLC  
	 	  	 	 	 
	 	  	 	 	 
	By: 	  	 	By: 	  
	 	 Diane Garrett  	 	 	 Robert Hatch  
	 	 President and CEO  	 	 	 Manager/Member  

 SCHEDULE A

THE PROPERTY 

 PARAGON PRECIOUS METALS, LLC 

  BKSKN Unpatented Lode Mining Claims 

	  	 Humboldt County  	 BLM  
	Claim Name 	 Document No.  	 Serial No.  
	 	 	 
	 BKSKN 1  	 1995  360081  	 725029  
	 BKSKN 2  	 1995  360082  	 725030  
	 BKSKN 3  	 1995  360083  	 725031  
	 BKSKN 4  	 1995  360084  	 725032  
	 BKSKN 5  	 1995  360085  	 725033  
	 BKSKN 6  	 1995  360086  	 725034  
	 BKSKN 7  	 1995  11369  	 725035  
	 BKSKN 8  	 1995  360088  	 725036  
	 BKSKN 9  	 1995  360089  	 725037  
	 BKSKN 10  	 1995  360090  	 725038  
	 BKSKN 11  	 1995  360091  	 725039  
	 BKSKN 12  	 1995  360092  	 725040  
	 BKSKN 13  	 1995  360093  	 725041  
	 BKSKN 14  	 1995  360094  	 725042  
	 BKSKN 15  	 1995  360095  	 725043  
	 BKSKN 16  	 1995  360096  	 725044  
	 BKSKN 17  	 1995  360097  	 725045  
	 BKSKN 18  	 1995  360098  	 725046  
	 BKSKN 19  	 1995  360099  	 725047  
	 BKSKN 20  	 1995  360100  	 725048  
	 BKSKN 21  	 1995  360101  	 725049  
	 BKSKN 22  	 1995  360102  	 725050  
	 BKSKN 23  	 1996  11371  	 754042  
	 BKSKN 24  	 1996  11372  	 754043  
	 BKSKN 25  	 1996  11373  	 754044  
	 BKSKN 26  	 1996  11374  	 754045  
	 BKSKN 27  	 1996  11375  	 754046  
	 BKSKN 28  	 1996  11376  	 754047  
	 BKSKN 29  	 1996  11377  	 754048  
	 BKSKN 30  	 1996  11378  	 754049  
	 BKSKN 31  	 1996  11379  	 754050  
	 BKSKN 32  	 1996  11380  	 754051  
	 BKSKN 33  	 1996  11381  	 754052  
	 BKSKN 34  	 1996  11382  	 754053  
	 BKSKN 35  	 1996  11383  	 754054  
	 BKSKN 36  	 1996  11384  	 754055  
	 BKSKN 37  	 1996  11385  	 754056  
	 BKSKN 38  	 1996  11386  	 754057  
	 BKSKN 39  	 1996  11387  	 754058  
	 BKSKN 40  	 2003  1337  	 843878  
	 BKSKN 41  	 2003  1338  	 843879  

 - 2 - 

	 BKSKN 43  	 2003  1339  	 843880  
	 BKSKN 44  	 2003  1340  	 843881  
	 BKSKN 45  	 2003  1341  	 843882  
	 BKSKN 46  	 2003  1342  	 843883  
	 BKSKN 47  	 2003  1343  	 843884  
	 BKSKN 48  	 2003  1344  	 843885  
	 BKSKN 49  	 2003  1345  	 843886  
	 BKSKN 50  	 2003  1346  	 843887  
	 BKSKN 51  	 2003  1347  	 843888  
	 BKSKN 52  	 2003  1348  	 843889  
	 BKSKN 53  	 2003  1349  	 843890  
	 BKSKN 54  	 2003  1350  	 843891  
	 BKSKN 55  	 2003  1351  	 843892  
	 BKSKN 56  	 2003  1352  	 843893  
	 BKSKN 57  	 2003  1353  	 843894  
	 BKSKN 58  	 2003  1354  	 843895  
	 BKSKN 59  	 2003  1355  	 843896  
	 BKSKN 60  	 2003  1356  	 843897  
	 BKSKN 61  	 2003  1357  	 843898  
	 BKSKN 62  	 2003  1358  	 843899  
	 BKSKN 63  	 2003  1359  	 843900  
	 BKSKN 64  	 2003  1360  	 843901  
	 BKSKN 65  	 2003  1361  	 843902  
	 BKSKN 66  	 2003  1362  	 843903  
	 BKSKN 67  	 2003  1363  	 843904  
	 BKSKN 68  	 2003  1364  	 843905  
	 BKSKN 69  	 2003  1365  	 843906  
	 BKSKN 70  	 2003  1366  	 843907  
	 BKSKN 71  	 2003  1367  	 843908  
	 BKSKN 72  	 2003  1368  	 843909  
	 BKSKN 73  	 2003  1369  	 843910  
	 BKSKN 74  	 2003  1370  	 843911  
	 BKSKN 75  	 2003  1371  	 843912  
	 BKSKN 76  	 2003  1372  	 843913  
	 BKSKN 77  	 2003  1373  	 843914  
	 BKSKN 78  	 2003  1374  	 843915  
	 BKSKN 79  	 2003  1375  	 843916  
	 BKSKN 80  	 2003  1376  	 843917  
	 BKSKN 81  	 2003  1377  	 843918  
	 BKSKN 82  	 2003  1378  	 843919  
	 BKSKN 83  	 2003  1379  	 843920  
	 BKSKN 84  	 2003  1380  	 843921  
	 BKSKN 85  	 2003  1381  	 843922  
	 BKSKN 86  	 2003  1382  	 843923  
	 BKSKN 87  	 2003  1383  	 843924  
	 BKSKN 88  	 2003  1384  	 843925  
	 BKSKN 89  	 2003  1385  	 843926  
	 BKSKN 90  	 2003  1386  	 843927  
	 BKSKN 91  	 2003  1387  	 843928  

 - 3 - 

 BKSKN 1 thru 6, 8 thru 22 shown on claim map filed as Document No.1995 360080

  BKSKN 7 shown on claim map filed as Document No.1996 11368

  BKSKN 23 thru 39 shown on claim map filed as Document No.1996 11370

  BKSKN 40 thru 91 shown on claim map filed as Document No.2003 1337 

 SCHEDULE B

NET SMELTER RETURNS ROYALTY 

	 Royalty (%)  	 Gold Price ($)  
	 3.0  	up to (and including) 300.00  
	 3.5  	 300.01 to 350.00
	 4.0  	 350.01 to 450.00
	 4.5  	 450.01 to 550.00
	 5.0  	 over 550.00  

 For the purposes of this Schedule A and the Agreement to which
  this Schedule A is attached, the Gold Price shall mean the average New York
  daily closing price for the relevant quarter. 

 SCHEDULE C

NET SMELTER RETURNS ROYALTY 

	 1.      	 Definitions – For the purpose
        of this Schedule, “Agreement” shall mean the Agreement to
        which this Schedule is attached, “Owner” shall mean the party
        or parties paying a percentage of Net Smelter Returns pursuant to the
        Agreement. “Holder” shall mean the party or parties receiving
        a percentage of Net Smelter Returns pursuant to the Agreement and other
        capitalized terms shall have the meanings assigned to them in the Agreement.
      

	 
	 2.      	 Net Smelter Returns – For
        the purpose hereof, the term “Net Smelter Returns” shall,
        subject to paragraphs 3, 4, 5, and 6 below, mean gross revenues received
        from the sale by the Owner of all ore mined from the Property and from
        the sale by the Owner of concentrate, doré, metal and products
        derived from ore mined from the Property, after deduction of the following:
      

	 
	 	 (a)     
      
	 all smelting and refining costs, sampling, assaying
        and treatment charges and penalties including but not limited to metal
        losses, penalties for impurities and charges for refining, selling and
        handling by the smelter, refinery or other purchaser (including price
        participation charges by smelters and/or refiners); and 

	 
	 	 (b)      
	 costs of handling, transporting, securing and insuring
        such material from the Property or from a concentrator, whether situated
        on or off the Property, to a smelter, refinery or other place of treatment,
        and in the case of gold or silver concentrates, security costs; and 

	 
	 	 (c)      
	 ad valorem taxes and taxes based upon sales or production,
        but not income taxes; and 

	 
	 	 (d)      
	 marketing costs, including sales commissions, incurred
        in selling ore mined from the Property and from concentrate, doré,
        metal and products derived from ore mined from the Property. 

	 
	 3.      	 Non-Arm’s Length Revenue –
        Where revenue otherwise to be included under this Schedule is received
        by the Owner in a transaction with a party with whom it is not dealing
        at arm’s length, the revenue to be included shall be based on the
        fair market value under the circumstances and at the time of the transaction.
      

	 
	 4.      	 Non-Arm’s Length Costs –
        Where a cost otherwise deductible under this Schedule is incurred by the
        Owner in a transaction with a party with whom it is not dealing at arm’s
        length, the cost to be deducted shall be the fair market cost under the
        circumstances and at the time of the transaction. 

	 
	 5.      	 Currency – For the purpose
        of determining Net Smelter Returns, all receipts and major disbursements
        will be calculated in U.S. dollars. 

	 
	 6.      	 Hedging – The Owner may,
        but shall not be under any duty to, engage in price protection (hedging)
        or speculative transactions such as futures contracts and commodity options
        in its sole discretion covering all or part of production from the Property
        and, except in the case where products are actually delivered and a sale
        is actually consummated under such price protection or speculative transactions
        and with the consent of the Holder, none of the revenues, costs, profits
        or losses from such transactions shall be taken into account in calculating
        Net Smelter Returns or any interest therein. 

 - 2 - 

	 7.      	 Commingling – If the Property
        is brought into commercial production, it may be operated as a single
        operation with other mining properties owned by third parties or in which
        the Owner has an interest, in which event, the parties agree that (notwithstanding
        separate ownership thereof) ores mined from the mining properties (including
        the Property) may be blended at the time of mining or at any time thereafter,
        provided, however, that the respective mining properties shall bear and
        have allocated to them their proportionate part of costs described in
        paragraphs 2(a) to 2(d) above incurred relating to the single operation,
        and shall have allocated to each of them the proportionate part of the
        revenues earned relating to such single operation. In making any such
        allocation, effect shall be given to the tonnages and location of ore
        and other material mined and beneficiated and the characteristics of such
        material including the metal content of ore removed from, and to any special
        charges relating particularly to ore, concentrates or other products or
        the treatment thereof derived from, any of such mining properties. 

	 
	 8.      	 Sampling – The Owner shall
        ensure that sound mining and metallurgical practices and procedures are
        adopted and employed for weighing, determining moisture content, sampling
        and assaying and determining recovery factors. 

	 
	 9.      	 Payments – Payments of a
        percentage of Net Smelter Returns shall be made to the Holder within thirty
        (30) days after the end of each calendar quarter in which Net Smelter
        Returns, as determined on the basis of final adjusted invoices, are received
        by the Owner. All such payments shall be made in U.S. dollars, or at the
        option of the Holder, in kind and concurrently with making such payments,
        Owner shall provide to Holder a statement showing the calculation of the
        royalty payable. 

	 
	 10.      	 Calculations – After the
        year in which commercial production is commenced on the Property, the
        Holder receiving a percentage of Net Smelter Returns from the Owner shall
        be provided annually on or before March 15, with a copy of the calculation
        of Net Smelter Returns, determined in accordance with this Schedule, for
        the preceding calendar year, certified correct by the Owner. 

	 
	 11.      	 Audits – The Owner shall
        cause the Net Smelter Returns and the records relating thereto to be audited
        within the first quarter of each calendar year by a national firm of chartered
        accountants designated and paid by the Owner (which may be the auditor
        of the Owner) and: 

	 
	 	 (a)     
      
	 copies of the audited reports shall be delivered
        to the Holder and the Owner by the chartered accounting firm; 

	 
	 	 (b)      
	 either party shall have three (3) months after receipt
        of any audited report to object thereto in writing to the other party,
        and failing such objection, such report shall be deemed correct; and 

	 
	 	 (c)      
	 in the event of a reaudit, all costs relating to
        such reaudit shall be paid by the Owner (if the original audit is found
        in error by a margin of 5% or more of the total royalty paid) or the Holder
        (if the original audit is found to be correct or within a margin of 5%
        of the total royalty paid) and the Holder requested the reaudit. 

	 
	 12.      	 Rights of Parties – Nothing
        contained in the Agreement or any Schedule attached thereto shall be deemed
        to constitute the Owner the partner, agent or legal representative of
        the Holder or to create any fiduciary relationship between them for any
        purpose whatsoever. 

	 
	 13.      	 Operations – The Owner shall
        be entitled to: 

 - 3 - 

	 	 (a)     
      
	 Make all operational decisions with respect to the
        methods and extent of mining and processing of ore, concentrate, doré,
        metal and products produced from the Property (for example, without limitation,
        the decision to process by heap leaching rather than conventional milling);
      

	 
	 	 (b)      
	 Make all decisions relating to sales of such ore,
        concentrate, doré, metal and products produced; and 

	 
	 	 (c)      
	 Make all decisions concerning temporary or long-term
        cessation of operations. 

	 
	 14.      	 Annual Reports – Within one
        hundred and twenty (120) days following the end of each calendar year,
        the Owner shall provide the Holder with an annual report of all activities
        and operations conducted upon or with respect to the Property during the
        preceding calendar year, together with a description of the activities
        and operations anticipated during the current year (including estimates
        of expenditures, production, ore reserves and any Net Smelter Returns
        payable). 

 SCHEDULE D

 MEMORANDUM OF MINING LEASE AGREEMENT 

                               This
  Memorandum of Mining Lease Agreement (“Memorandum”) is made by and
  between Paragon Precious Metals, LLC, a limited liability company organized
  under the laws of Nevada (“Owner”), and Romarco Minerals Inc., an
  Ontario corporation (“Romarco”). 

                               Notice
  is given that Owner and Romarco have entered into the Mining Lease Agreement
  (“Agreement”) dated effective the date of this Memorandum, in accordance
  with which Owner has leased to Romarco the unpatented mining claims described
  in Schedule 1 attached to and by this reference incorporated in this Memorandum.

                               The
  term of the Agreement shall be from its Effective Date for ten (10) years, unless
  terminated, renewed or cancelled.Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals Inc. - Exhibit 4.5

 DUE DILIGENCE LICENSE AGREEMENT 

This Agreement is made effective as of December 31, 2003 

BETWEEN: 

  
     ROMARCO MINERALS INC., a corporation incorporated under the laws
      of Ontario and having an address of Suite 1500, 885 West Georgia Street,
      Vancouver, British Columbia V6C 3E8, facsimile no.: (604) 688-9274 

     (“Romarco”) 

  

AND: 

  
     BUCKSKIN NATIONAL MINE LTD., a limited liability partnership formed
      under the laws of Nevada and having an address of 1000 Hinkey Summit Road,
      Paradise Valley, Nevada 89426 facsimile no.: ____________

     (“Buckskin”) 

  

WHEREAS: 

      Buckskin has the right to conduct
  mining exploration and related operations on the Property (as defined below)
  located in the National District of Humboldt County, Nevada; and

      Buckskin has determined to grant
  Romarco an exclusive license to conduct due diligence relating to existing environmental
  liabilities and potential mineralization on the Property.

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Buckskin and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

1. Representations and Warranties 

1.1 Buckskin represents and warrants to Romarco that: 

	 	 (a)      	 Buckskin is a limited partnership duly organized, validly existing, and
      in good standing under the laws of Nevada. 
	 
	 	 (b)      	 Buckskin has the requisite power and authority: 
	 

	 	 	 (i)      	 to enter into this Agreement and all other agreements contemplated hereby;
      and 
	 
	 	 	 (ii)      	 to carry out and perform his obligations under the terms and provisions
      of this Agreement and all other agreements contemplated hereby. 
	 

	 	 (c)      	 All requisite corporate action on the part of Buckskin,
        and its officers and directors, necessary for the execution, delivery
        and performance of this Agreement and all other agreements contemplated
        hereby, has been taken. This Agreement and all other agreements contemplated
        hereby, when executed and delivered by Buckskin, will be legal, valid,
        and binding obligations of Buckskin enforceable against Buckskin in accordance
        with their terms. The execution, delivery and performance of this Agreement
        will not violate any provision of law; any order of any court or other
        agency of 

 - 2 - 

	 	 	 government; or any provision of any indenture,
        agreement or other instrument to which  Buckskin is a party or by
        which his properties or assets are bound; or be in conflict with, 
        result in a breach of, or constitute (with due notice and lapse of time)
        a default under any  such indenture, agreement or other instrument.
        There is no law, rule or regulation, or any  judgment, decree or
        order of any court or governmental authority binding on Buckskin 
        which would be contravened by the execution, delivery, performance or
        enforcement of  this Agreement and all other agreements contemplated
        hereby. However, no  representation is made as to:  

	 	 	 (i)      	 the remedy of specific performance or other equitable remedies for the
      enforcement of this Agreement and all other agreements contemplated hereby;
      or 
	 
	 	 	 (ii)      	 rights to indemnity under this Agreement for securities law liability.
    
	 

	 	 	 Additionally, this representation is limited by
        applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (d)      	 Buckskin has a 100% interest in the 10 unpatented
        mining claims (the “Property”) held by Buckskin located
        in the National District of Humboldt County, Nevada, and which are listed
        on Schedule “A” attached hereto. 

	 
	 	 (e)      	 Buckskin is, subject to the paramount title of the
        United States, the sole and only owner of the unpatented mining claims
        comprising the Property. 

	 
	 	 (f)      	 Buckskin has the right to grant the License (as
        defined in Section 2.1) and any rights given to Romarco in this Agreement
        and all other agreements contemplated hereby. 

	 
	 	 (g)      	 To the best of his knowledge and belief each of
        the unpatented claims included in the Property will have been validly
        located, filed and recorded in compliance with the laws of the State of
        Nevada and of the United States as they relate to location and recording
        of such claims; that Buckskin will have timely complied with all of the
        filing provisions of the Federal Land Policy and Management Act (43 U.S.C.
        Section 1701, et seq.) and other applicable federal laws and regulations
        as they pertain to the unpatented claims included within the Property;
        and that said claims are valid and subsisting mining claims. 

	 
	 	 (h)      	 Buckskin has fully and timely paid the Land Holding
        Fees (as defined in Section 5.1) required to maintain the unpatented mining
        claims to the date of execution of this Agreement. 

	 
	 	 (i)      	 Buckskin’s rights in the Property are not
        subject to any prior agreement, encumbrance, burden or restriction, created
        by any act or instrument of Buckskin; that to the best of Buckskin’s
        knowledge, other than the Hatch Adit (as defined in Section 2.5) the Property
        is free from liens and encumbrances and other adverse claims by third
        parties; and that the Property is not burdened with any royalties, overriding
        royalties, net profits interests or payments on production. 

	 
	 	 (j)      	 Other than the Hatch Adit, there are no outstanding
        pending actions, suits or claims affecting all or any of the Property,
        nor, to the best of Buckskin’s knowledge, has any 

 - 3 - 

	 	 	 such action, suit or claim been threatened, either
        verbally or in writing, nor, to the best of Buckskin’s knowledge,
        is there any basis for any action, suit or claim. 

	 
	 	 (k)      	 The execution, delivery and performance of this
        Agreement by Buckskin and the consummation of the transactions contemplated
        herein, including the lease of the Property to Romarco, does not and will
        not result in or constitute any of the following: (i) a default, breach
        or violation or an event that, with notice or lapse of time or both, would
        be a default, breach or violation of any of the terms, conditions or provisions
        of the articles or by-laws of Buckskin, or any lease, lien, permit, promissory
        note, security agreement, commitment, indenture, mortgage, hypothecation,
        deed of trust or other agreement, instrument or arrangement to which Buckskin
        is a party or by which it or the Property is bound; (ii) an event that
        would permit any party to rescind any agreement or accelerate the maturity
        of any obligation of Buckskin related to the Property; (iii) the creation
        or imposition of any lien on the Property; or (iv) an event requiring
        the consent of any other party, including, without limitation, the shareholders
        of Buckskin. 

	 
	 	 (l)      	 To the best of Buckskin’s knowledge, other
        than the Hatch Adit, there are no outstanding work orders or actions required
        to be taken relating to environmental regulatory or reclamation matters,
        or any existing condition on the Property which could be the basis therefor,
        in respect to the Property or any operations thereon and that it has no
        knowledge of any other environmental issues affecting the Property. 

1.2 Romarco represents and warrants to Buckskin that: 

	 	 (a)      	 Romarco is a corporation duly organized, validly
        existing, and in good standing under the laws of the Province of Ontario,
        Canada. 

	 
	 	 (b)      	 Romarco is duly registered to do business in the
        State of Nevada. 

	 
	 	 (c)      	 Romarco has the requisite corporate power and authority:
      

	 

	 	 	 (i)      	 to enter into this Agreement and all other agreements contemplated hereby,
      and 
	 
	 	 	 (ii)      	 to carry out and perform its obligations under the terms and provisions
      of this Agreement and all agreements contemplated hereby. 
	 

	 	 (d)      	 All requisite corporate action on the part of Romarco,
        and its officers and directors, necessary for the execution, delivery
        and performance of this Agreement and all other agreements of Romarco
        contemplated hereby, have been taken. This Agreement and all agreements
        and instruments contemplated hereby, when executed and delivered by Romarco,
        will be legal, valid, and binding obligations of Romarco enforceable against
        Romarco in accordance with their terms. The execution, delivery and performance
        of this Agreement will not violate any provision of law; any order of
        any court or other agency of government; or any provision of any indenture,
        agreement or other instrument to which Romarco is a party or by which
        its properties or assets are bound; or be in conflict with, result in
        a breach of, or constitute (with due notice and lapse of time) a default
        under any such indenture, agreement or other instrument. There is no law,
        rule or regulation, or any judgment, decree or order of any court or governmental
        authority binding on Romarco which would be contravened by the execution,
        delivery, 

 - 4 - 

	 	 	 performance or enforcement of this Agreement or any instrument
      or agreement required  hereunder. However, no representation is made
      as to:  

	 	 	 (i)      	 the remedy of specific performance or other equitable remedies for the
      enforcement of this Agreement or any other agreement contemplated hereby;
      or 
	 
	 	 	 (ii)      	 rights to indemnity under this Agreement for securities law liability.
    
	 

	 	 	 Additionally, this representation is  limited
      by applicable bankruptcy, insolvency,  moratorium, and other similar
      laws  affecting generally the rights and remedies of  creditors
      and secured parties;  

	 	 (e)      	 Romarco has obtained all consents, approvals, authorizations,
        declarations, or filings required by any federal, state, local, or other
        authority (except the TSX Venture Exchange), or any lenders, creditors,
        and other third parties in connection with the valid execution, delivery,
        and performance of this Agreement and the consummation of the transaction
        contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement and
        the transactions contemplated hereby have been carried on by Romarco in
        such manner as not to give rise to any valid claim against Buckskin for
        a brokerage commission, finder’s fee or other fee or commission
        arising by reason of the transactions contemplated by this Agreement.
      

 1.3 The representations and warranties set out in Sections
  1.1 and 1.2 are conditions upon which each of Buckskin and Romarco has relied
  in entering into this Agreement and will survive the termination of the Agreement,
  and each of Buckskin and Romarco hereby forever indemnifies and saves the other
  harmless from all loss, damage, costs, actions and suits arising out of or in
  connection with any breach of any representation or warranty made by it and
  contained in this Agreement. 

2. The Due Diligence License 

 2.1 Grant of Due Diligence License. Buckskin
  hereby irrevocably grants to Romarco the sole and exclusive license to conduct
  Due Diligence Activities on the Property, (the “License”),
  on the terms set out herein. For the purposes of this Agreement, “Due
  Diligence Activities” means geological, geochemical, geophysical, hydrological
  and other examinations and investigations intended to determine the existence
  on the Property of any condition which is, or might be construed to be, a discharge,
  release, source of contamination or other condition which violates, or may be
  deemed to, violate any applicable Federal, state or local laws, regulations
  and ordinances, and any of such activities intended to determine the existence
  of minerals on the Property. 

2.2 Maintenance of License. To maintain the License in good standing, Romarco must: 

	 	 (a)      	 incur Expenditures (as defined in Section 2.3) on
        the Property or the Nearby Property (as defined in Section 2.3) in the
        aggregate of two hundred thousand dollars ($200,000) on or prior to
        December 31, 2005; 

	 
	 	 (b)      	 pay a license fee to Buckskin of $20,020 on
        the date of execution of the Agreement and on each anniversary date of
        the Agreement, in each case for the upcoming year, according to the following
        schedule: 

 - 5 - 

	 	 	 (i)      	 $20,020 on or before December 31, 2004. 
	 
	 	 	 (ii)      	 $20,020 on or before December 31, 2005. 
	 
	 	 	 (iii)      	 $23,100 on or before December 31, 2006. 
	 
	 	 	 (iv)      	 $26,180 on or before December 31, 2007. 
	 
	 	 	 (v)      	 $29,260 on or before December 31, 2008. 
	 
	 	 	 (vi)      	 $30,800 on or before December 31, 2009; and on or before December
      31, each successive year thereafter. 
	 

	 	 	 (each a “License Fee” and collectively
      the “License Fees”).  

2.3 Expenditures. For the purposes of Section 2.2(a), the term “Expenditures” means: 

	 	 (a)      	 all Land Holding Fees (as defined in Section 5.1) for the Property and
      the Nearby Property; 
	 
	 	 (b)      	 those costs incurred to perform work on the Property or the Nearby Property
      (as defined below) including, without limitation: 
	 

	 	 	 (i)      	 payments and benefits to personnel engaged in the work program on the
      Property (including analysis and reports thereon) and such persons’
      travelling expenses; 
	 
	 	 	 (ii)      	 costs of rehabilitation, reclamation or remediation; 
	 
	 	 	 (iii)      	 disbursements for such third party services as drilling, assaying, geophysics
      and the like; 
	 
	 	 	 (iv)      	 staking additional claims which become part of the Property as provided
      for herein; 
	 
	 	 	 (v)      	 consulting fees and labour costs; 
	 
	 	 	 (vi)      	 costs of supplies and making equipment available, and the transportation
      thereof; 
	 
	 	 	 (vii)      	 costs of transporting personnel; and 
	 
	 	 	 (viii)      	 title work and the costs of recording same. 
	 

	 	 (c)      	 an amount equal to 10% of the amounts set out in Section 2.3(a) and (b),
      in lieu of general and administrative expenses. 

 For greater certainty, except as set out in Section 2.3(c),
  Expenditures will not include Romarco overheads such as executive or directors
  salaries, fees or expenses. 

 For the purposes of this Agreement, the “Nearby Property”
  means those three (3) claims held by Mr. John Bell, which are contiguous with
  the Property, in respect of which Romarco is signing a similar agreement on
  the date hereof. 

 - 6 - 

 2.4 Lease Option. At any time, at its sole discretion,
  Romarco may, upon giving Buckskin written notice, exercise an option to acquire
  a 100% leasehold interest in the Property, according to the terms of the Lease
  Agreement attached hereto as Schedule “B” (the “Lease
  Option Exercise”).

 2.5 Limitation of License. During the term of this
  Agreement, Romarco will not disturb that area on the Property which is the subject
  of an investigation by the United States Department of Agriculture – Forest
  Service, and which has been identified by Buckskin as such (the “Hatch
  Adit”). Romarco will indemnify and save harmless Buckskin from and
  against all suits, claims, demands, losses and expenses that directly arise
  as a result of Romarco’s activities on the Property which may disturb
  the Hatch Adit. 

 3. Term and Termination of the Agreement 

 3.1 This Agreement will have a term of 10 years, commencing
  on the date hereof (the “Term”), unless sooner terminated
  pursuant to the terms of this Agreement. Romarco will have the option, in its
  sole discretion, to renew this Agreement at the end of the Term for one or more
  additional 10 year terms, but may not renew this Agreement more than five successive
  times. 

 3.2 The Expenditures and License Fees required to keep the
  License in good standing as outlined in Section 2.2 are optional at the sole
  discretion of Romarco and Romarco will not be required to make any such License
  Fee or incur any such Expenditures unless it wishes to keep the License in good
  standing. This agreement may be terminated at any time by Romarco upon giving
  Buckskin 30 days written notice of termination. If termination occurs between
  July 1st and September 1st of any year, Romarco will pay
  the Land Holding Fees for that year. Until the Lease Option Exercise has occurred,
  this Agreement will automatically terminate if Romarco fails to: 

	 	 (a)      	 pay the Land Holding Fees (as defined in Section 5.1); 
	 
	 	 (b)      	 incur the Expenditures required by Section 2.2 (a), or 
	 
	 	 (c)      	 satisfy the License Fees, 

 when due and Romarco does not cure such failure within 30
  days after notice of such failure from Buckskin.

 4. Information Disclosure 

 Upon execution of this Agreement and throughout its term,
  Buckskin will make available to Romarco all information in his possession or
  control relating to work done on or with respect to the Property. 

 5. Rights and Obligations Prior to Lease Option Exercise
  

 5.1 Land Holding Fees. Until the Lease Option Exercise
  or this Agreement is terminated, Romarco will be responsible for all obligations
  associated with keeping the Property in good standing including: 

	 	 (a)      	 payment of all mining claim maintenance fees to the U.S. Bureau of Land
      Management in connection with the Property; 
	 
	 	 (b)      	 payment of recording fees to Humboldt County, Nevada, for notices of
      intent-to-hold; 

 - 7 - 

 and otherwise maintaining the Property in good standing (the
  “Land Holding Fees”), and any costs incurred in connection
  therewith will be included as Expenditures pursuant to Section 2.3. Until the
  Lease Option Exercise occurs, neither Party will be entitled to create any liens
  or encumbrances against title to the Property or to alter the terms of any agreements
  affecting title to the Property without the prior written approval of the other
  Party.  

 5.2 Work Standards. All work done by Romarco will be
  done in accordance with good exploration practice and in compliance with all
  applicable laws and regulations including all reclamation obligations. 

 5.3 Indemnity. Until the Lease Option Exercise occurs
  Romarco will indemnify and save harmless Buckskin from and against all suits,
  claims, demands, losses and expenses that directly arise as a result of Romarco’s
  activities on the Property. 

 5.4 Annual Reports. During the term of this Agreement,
  Romarco will provide Buckskin with annual reports indicating any results and
  interpretations obtained or received in connection with exploration work on
  the Property and an accounting of expenditures which were incurred. The annual
  report will be submitted to Buckskin on or before 90 days following the anniversary
  of the effective date of this Agreement in each successive year. Notwithstanding
  such disclosure by Romarco, it will not have any liability or responsibility
  to Buckskin in connection with any reports or results that it provides to Buckskin,
  or any information contained therein, and Buckskin agrees that he will rely
  on his own appraisals and interpretations related thereto.

 5.5 Site Visits. Until the Lease Option Exercise occurs,
  Buckskin may visit the Property and have access to all exploration results from
  the Property, provided reasonable notice is given to Romarco and the costs of
  any such visits will be borne by Buckskin and Romarco will be held blameless
  and will be indemnified by Buckskin for any claim or liability arising out of
  any actions by or the presence of Buckskin or his employees on the Property.
  Buckskin acknowledges and agrees that Romarco will not bear any responsibility
  or liability for any use of any information so obtained by Buckskin or as to
  the accuracy or completeness of such information. 

 5.6 Exclusive Possession. Romarco will have full rights
  of access to and quiet and exclusive possession of the Property and have the
  exclusive right to conduct exploration work on the Property, with the full right
  to remove mineral samples and ores for the purpose of assays and tests, and
  to have such buildings, machinery, equipment and supplies on the Property as
  it deems necessary. Upon execution of this Agreement, Buckskin shall execute
  and deliver to Romarco a deed evidencing rights of Romarco under this Agreement
  in the form attached hereto as Schedule “C” or in such other form
  as is agreed to by Romarco and Buckskin. 

 6. The Lease Agreement 

 Upon the Lease Option Exercise occurring, the Lease Agreement
  in the form attached hereto as Schedule “B” will be deemed to have
  been entered into between Buckskin and Romarco and all rights and obligations
  under this Agreement will immediately terminate and be superseded by the rights
  and obligations in the Lease Agreement except that any rights or obligations
  arising under this Agreement prior to the Lease Option Exercise occurring will
  survive this Agreement.

 - 8 - 

GENERAL 

7. Notice 

 Any notice, direction or other instrument required or permitted
  to be given under this Agreement may be given in the manner prescribed in the
  Lease Agreement. 

 8. Confidentiality and Press Releases 

 Buckskin agrees that the entering into of this Agreement and
  all data and information provided to or received by Buckskin from Romarco with
  respect to the Property will be treated as confidential. Buckskin will not disclose
  such information to third parties without obtaining the prior written consent
  of Romarco, such consent not to be unreasonably withheld, unless law or regulatory
  authority having jurisdiction requires the disclosure.

 9. Force Majeure 

 Other than cash payments to be made hereunder, no Party hereto
  will be liable to the others and no Party hereto will be deemed in default under
  this Agreement for any failure or delay to perform any of its obligations within
  the times specified under this Agreement if such failure or delay is caused
  by or arises out of any act not within the control of the Party, excluding lack
  of funds but including, without limitation, acts of God, strikes, lockouts,
  or other industrial disputes, acts of the public enemy, riots, fire, storm,
  flood, explosion, government restriction, aboriginal land claims, failure to
  obtain any approvals required from regulatory authorities, including environmental
  protection agencies, unavailability of equipment, interference of third party
  specific interests groups or other causes whether of the kind enumerated above
  or otherwise which is not reasonably within the control of the Party. No right
  of a Party will be affected for failure or delay of the Party to meet any condition
  of this Agreement, which failure or delay is caused by one of the events above
  referred to, and all times provided for in this Agreement will be extended for
  a period commensurate with the period of the delay, and so far as possible the
  Party affected will take all reasonable steps to remedy the delay caused by
  the events above referred to provided, however, that nothing contained in this
  section will require any Party to settle any industrial dispute or to test the
  constitutionality of any law enacted by any State or the Federal Government.
  Any Party relying on the provisions of this section will forthwith give notice
  to the other Party of the commencement of such event and of its termination.

 10. Obligations Several 

 The obligations of each party under this Agreement shall be
  in every case several and shall not be construed to be either joint or joint
  and several and nothing herein shall be construed as creating a partnership
  between the parties. Nothing contained in this Agreement shall be deemed to
  constitute a party an agent or legal representative of the other party or to
  create any fiduciary relationship for any purpose whatsoever. Except as otherwise
  specifically provided in this Agreement, a party shall not have any authority
  to act for, or to assume any obligation or responsibility on behalf of, any
  other party. Each party hereby waives its rights to partition of the Property
  and, to that end, agrees that it will not seek or be entitled to partition of
  the Property whether by way of physical partition, judicial sale or otherwise.

 11. Entire Agreement 

 This Agreement including Schedules “A”, “B”
  and “C” hereto, constitutes the entire Agreement between Buckskin
  and Romarco pertaining to the Property and supersedes all prior agreements,
  understandings, 

 - 9 - 

 negotiations and discussions, whether oral or written between
  Buckskin and Romarco, and there are no warranties, representations or other
  agreements between Buckskin and Romarco in connection with the Property except
  as set forth herein. 

 12. Headings 

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 13. Currency 

 References in this Agreement to monetary amounts are expressed
  in United States dollars. 

 14. Further Assurances and Agreements 

 Each of the parties to this Agreement will take all such further
  steps and execute all such further and other documentation as may be necessary
  in order to more fully give effect to the provisions of this Agreement.

 15. Counterparts 

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which will be deemed to be an original and all of which
  will constitute one and the same document. 

 16. Governing Law 

 This Agreement will be governed by and construed in accordance
  with the laws of the State of Nevada. 

 IN WITNESS WHEREOF the parties have executed this agreement
  as of the date first written above. 

	
ROMARCO MINERALS INC. 
		
BUCKSKIN NATIONAL MINE LTD. 
	
	 

	
	 

	
	 By:  _________________________	___________________________
	         Diane
      Garrett  	
John Buckskin 
	
	         President
      and CEO  	 

	

SCHEDULE A

THE PROPERTY

  Humboldt County BLM

	 Claim Name  	 Document No.  	 Serial No.  
	 Ormand Bell  	 No.  2 	 796406  
	 Rattler  	 No.  1 	 796407  
	 Buick  	  	 796408  
	 Ormand Bell  	 No.  1 	 796409  
	 Hudson  	  	 796410  
	 Normand Bell  	 No.  2 	 796411  
	 Rambler  	  	 796412  
	 Normand Bell  	 No.  1 	 796413  
	 Maxwell  	  	 796414  
	 Reo  	  	 796415  

 SCHEDULE B 

 MINING LEASE AGREEMENT

 MINING LEASE AGREEMENT This Agreement is made effective as of [•]
  BETWEEN: 

  
     ROMARCO MINERALS INC., a corporation incorporated under the laws
      of Ontario and having an address of Suite 1500, 885 West Georgia Street,
      Vancouver, British Columbia V6C 3E8, facsimile no.: (604) 688-9274 

     (“Romarco”) 

  

AND: 

  
     BUCKSKIN NATIONAL MINE LTD., a limited liability partnership formed
      under the laws of Nevada and having an address of 1000 Hinkey Summit Road,
      Paradise Valley, Nevada 89426 facsimile no.: ____________

     (“Buckskin”) WHEREAS: 

  

	 A.      	 Buckskin has the right to conduct mining exploration and related operations
      on the Property (as defined below) located in the National District of Humboldt
      County, Nevada; and 
	 
	 B.      	 Buckskin has determined to grant Romarco an exclusive lease of the Property.
    

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Buckskin and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

 1. Interpretation 

 1.1 Definitions. For the purposes of this Agreement the following words
  and phrases will have the following meanings: 

	 	 (a)      	 “Affiliate” means any person, partnership,
        limited liability company, joint venture, corporation, or other form of
        enterprise which Romarco Controls, is Controlled by, or is under common
        Control with. 

	 
	 	 (b)      	 “Control” used as a verb means, when
        used with respect to an entity, the ability, directly or indirectly through
        one or more intermediaries, to direct or cause the direction of the management
        and policies of such entity through (i) the legal or beneficial ownership
        of voting securities or membership interests; (ii) the right to appoint
        managers, directors or corporate management; (iii) contract; (iv) operating
        agreement; (v) voting trust; or otherwise; and “Control” used
        as a noun means an interest which gives the holder the ability to exercise
        any of the foregoing powers. 

	 
	 	 (c)      	 “Effective Date” means the date on which
        Lease Option Exercise (as defined in the Due Diligence License Agreement)
        occurs. No rights or obligations under this Agreement will become effective
        until the Effective Date of this Agreement. 

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	 	 (d)      	 “Effective Date Anniversary” means the
        anniversary of the Effective Date in each year of the Term. 

	 
	 	 (e)      	 “Expenditure” means all costs incurred
        to perform work on the Property. 

	 
	 	 (f)      	 “Due Diligence License Agreement” means
        the agreement between Romarco and Buckskin effective December 31, 2003,
        pursuant to which this agreement is being executed. 

	 
	 	 (g)      	 “Hatch Adit” means that area on the
        Property which is the subject of an investigation by the United States
        Department of Agriculture – Forest Service, and which has been identified
        by Buckskin as such. 

	 
	 	 (h)      	 “Land Holding Fees” means all required
        payments in connection with keeping the Property in good standing to either
        (i) the U.S. Bureau of Land Management; or (ii) Humboldt County, Nevada.
      

	 
	 	 (i)      	 “Lease” means the grant of all rights,
        title and interest in and to the Property including, without limitation,
        the surface and subsurface rights thereof, all ores, minerals and mineral
        rights, and all the rights, title and interest which may be acquired by
        or for Buckskin in or pertaining to the Property or any part of it during
        the Term. 

	 
	 	 (j)      	 “Net Smelter Returns” means the gross
        amount paid by smelters or purchasers for the minerals or metals in the
        ores from the Property during each year, after deducting only the charges
        made for smelting, treating and refining the ores, minerals and metals,
        all as determined in accordance with Schedule “C” attached
        hereto. 

	 
	 	 (k)      	 “Net Smelter Returns Royalty” means
        a royalty on the Net Smelter Returns calculated using the percentages
        set out on Schedule “B” attached hereto. 

	 
	 	 (l)      	 “Property” means the three (3) unpatented
        mining claims held by Buckskin located in the National District of Humboldt
        County, Nevada, and which are listed on Schedule. 

	 
	 	 (m)      	 “Term” means the period of time referred
        to and described in Section 3. 

	 
	 	 (n)      	 “Transfer” means transfer by sale, assignment,
        bequest, inheritance, trust, operation of law or other disposition. 

 1.2 Currency. Unless otherwise specified, all references to “$”
  or “dollars” shall mean United States dollars.

 2. Representations and Warranties 

 2.1 Buckskin represents and warrants to Romarco that: 

	 	 (a)      	 Buckskin is a limited partnership duly organized, validly existing, and
      in good standing under the laws of Nevada. 
	 
	 	 (b)      	 Buckskin has the requisite corporate power and authority: 

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	 	 	 (i)      	 to enter into this Agreement; and 
	 
	 	 	 (ii)      	 to carry out and perform its obligations under the terms and provisions
      of this Agreement. 
	 

	 	 (c)      	 All requisite corporate action on the part of Buckskin,
        and its officers and directors, necessary for the execution, delivery
        and performance of this Agreement has been taken. 

	 
	 	 	 This Agreement, when executed and delivered by Buckskin,
        will be legal, valid, and binding obligations of Buckskin enforceable
        against Buckskin in accordance with their terms. The execution, delivery
        and performance of this Agreement will not violate any provision of law;
        any order of any court or other agency of government; or any provision
        of any indenture, agreement or other instrument to which Buckskin is a
        party or by which its properties or assets are bound; or be in conflict
        with, result in a breach of, or constitute (with due notice and lapse
        of time) a default under any such indenture, agreement or other instrument.
        There is no law, rule or regulation, or any judgment, decree or order
        of any court or governmental authority binding on Buckskin which would
        be contravened by the execution, delivery, performance or enforcement
        of this Agreement. However, no representation is made as to: 

	 

	 	 	 (i)      	 the remedy of specific performance or other equitable remedies for the
      enforcement of this Agreement; or 
	 
	 	 	 (ii)      	 rights to indemnity under this Agreement for securities law liability.
    
	 

	 	 	 Additionally, this representation is limited by applicable bankruptcy,
      insolvency, moratorium, and other similar laws affecting generally the rights
      and remedies of creditors and secured parties. 
	 
	 	 (d)      	 Buckskin has the right to Lease the Property to
        Romarco and to grant any rights given to Romarco in this Agreement. 

	 
	 	 (e)      	 Buckskin is, subject to the paramount title of the
        United States, the sole and only owner of the unpatented mining claims
        comprising the Property. 

	 
	 	 (f)      	 To the best of his knowledge and belief each of
        the unpatented claims included in the Property will have been validly
        located, filed and recorded in compliance with the laws of the State of
        Nevada and of the United States as they relate to location and recording
        of such claims; that Buckskin will have timely complied with all of the
        filing provisions of the Federal Land Policy and Management Act (43 U.S.C.
        Section 1701, et seq.) and other applicable federal laws and regulations
        as they pertain to the unpatented claims included within the Property;
        and that said claims are valid and subsisting mining claims. 

	 
	 	 (g)      	 Buckskin has fully and timely paid the Land Holding
        Fees required to maintain the unpatented mining claims to the Effective
        Date of this Agreement. 

	 
	 	 (h)      	 Buckskin’s rights in the Property are not
        subject to any prior agreement, encumbrance, burden or restriction, created
        by any act or instrument of Buckskin; that to the best of Buckskin’s
        knowledge, other than the Hatch Adit, the Property is free from liens
        and 

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	 	 	 encumbrances and other adverse claims by third parties;
        and that the Property is not burdened with any royalties, overriding royalties,
        net profits interests or payments on production. 

	 
	 	 (i)      	 Other than the Hatch Adit, there are no outstanding
        pending actions, suits or claims affecting all or any of the Property,
        nor, to the best of Buckskin’s knowledge, has any such action, suit
        or claim been threatened, either verbally or in writing, nor, to the best
        of Buckskin’s knowledge, is there any basis for any action, suit
        or claim. 

	 
	 	 (j)      	 The execution, delivery and performance of this
        Agreement by Buckskin and the consummation of the transactions contemplated
        herein, including the Lease of the Property to Romarco, does not and will
        not result in or constitute any of the following: (i) a default, breach
        or violation or an event that, with notice or lapse of time or both, would
        be a default, breach or violation of any of the terms, conditions or provisions
        of the articles or by-laws of Buckskin, or any lease, lien, permit, promissory
        note, security agreement, commitment, indenture, mortgage, hypothecation,
        deed of trust or other agreement, instrument or arrangement to which Buckskin
        is a party or by which it or the Property is bound; (ii) an event that
        would permit any party to rescind any agreement or accelerate the maturity
        of any obligation of Buckskin related to the Property; (iii) the creation
        or imposition of any lien on the Property; or (iv) an event requiring
        the consent of any other party, including, without limitation, the shareholders
        of Buckskin. 

	 
	 	 (k)      	 To the best of Buckskin’s knowledge, other
        than the Hatch Adit, there are no outstanding work orders or actions required
        to be taken relating to environmental, regulatory, or reclmation matters,
        or any existing condition on the Property which could be the basis therefor,
        in respect to the Property or any operations thereon and that it has no
        knowledge of any other environmental issues affecting the Property. 

 2.2 Romarco represents and warrants to Buckskin that: 

	 	 (a)      	 Romarco is a corporation duly organized, validly existing, and in good
      standing under the laws of the Province of Ontario, Canada. 
	 
	 	 (b)      	 Romarco is duly registered to do business in the State of Nevada. 
	 
	 	 (c)      	 Romarco has the requisite corporate power and authority: 
	 

	 	 	 (i)      	 to enter into this Agreement; and 
	 
	 	 	 (ii)      	 to carry out and perform its obligations under the terms and provisions
      of this Agreement. 
	 

	 	 (d)      	 All requisite corporate action on the part of Romarco, and its officers
      and directors, necessary for the execution, delivery and performance of
      this Agreement has been taken. 
	 
	 	 	 This Agreement, when executed and delivered by Romarco, will be legal,
      valid, and binding obligations of Romarco enforceable against Romarco in
      accordance with their terms. The execution, delivery and performance of
      this Agreement will not violate any provision of law; any order of any court
      or other agency of government; or any provision of any indenture, agreement
      or other instrument to which Romarco is a party or by which its properties
      or assets are bound; or be in conflict with, result in a breach of, or constitute
    

 - 5 - 

	 	 	 (with due notice and lapse of time) a
        default under any such indenture, agreement or  other instrument.
        There is no law, rule or regulation, or any judgment, decree or order
        of  any court or governmental authority binding on Romarco which
        would be contravened by  the execution, delivery, performance or
        enforcement of this Agreement. However, no  representation is made
        as to:  

	 	 	 (i)      	 the remedy of specific performance or other equitable remedies for the
      enforcement of this Agreement; or 
	 
	 	 	 (ii)      	 rights to indemnity under this Agreement for securities law liability.
    
	 

	 	 	 Additionally, this representation is limited by
        applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (e)      	 Romarco has obtained all consents, approvals, authorizations,
        declarations, or filings required by any federal, state, local, or other
        authority (except the TSX Venture Exchange), or any lenders, creditors,
        and other third parties in connection with the valid execution, delivery,
        and performance of this Agreement and the consummation of the transactions
        contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement and
        the transactions contemplated hereby have been carried on by Romarco in
        such manner as not to give rise to any valid claim against Buckskin for
        a brokerage commission, finder’s fee or other fee or commission
        arising by reason of the transactions contemplated by this Agreement.
      

 2.3 The representations and warranties set out in Sections
  2.1 and 2.2 are conditions upon which each of Buckskin and Romarco has relied
  in entering into this Agreement and will survive the termination of the Agreement,
  and each of Buckskin and Romarco hereby forever indemnifies and saves the other
  harmless from all loss, damage, costs, actions and suits arising out of or in
  connection with any breach of any representation or warranty made by it and
  contained in this agreement. 

 3. Term 

 This Agreement will have a term of 10 years, commencing on
  the Effective date (the “Term”), unless sooner terminated
  pursuant to the terms of this Agreement. Romarco will have the option, in its
  sole discretion, to renew this Agreement at the end of the Term for one or more
  additional 10 year terms, but may not renew this Agreement more than five successive
  times.

 4. Grant of Lease 

 4.1 Grant. In consideration of the rents,
  payments, covenants and agreements hereinafter contained on the part of Romarco
  to be paid, observed and performed, and except as specifically provided, Buckskin
  will Lease the Property exclusively to Romarco for the Term, for the purposes
  and subject to the terms and conditions provided in this Agreement.

 4.2 Mining Rights. Buckskin will grant to Romarco the
  exclusive right to use the Property for the Term of this Agreement in the following
  manner: 

 - 6 - 

	 	 (a)      	 Romarco will act as exclusive operator of the Property
        and will be entitled to enter into and on the Property throughout the
        Term to prospect and explore for, develop, mine by any method now known
        or hereafter discovered (including but not limited to, underground, open
        pit, in-situ and solution methods), remove, produce, process by any method
        now known or hereafter discovered, mill, prepare for market, store, sell
        and dispose of all ores, minerals and metals which are or may be found
        therein or thereon. 

	 
	 	 	 Romarco may, in its sole discretion make any use
        or uses of the Property consistent with the foregoing purposes, including
        without limiting the generality of the foregoing, the construction of
        roads, railways, conveyors, plants, buildings, docks and aircraft landing
        areas, and have any machinery, equipment and supplies on the Property
        as it deems necessary. 

	 
	 	 (b)      	 In so far as Buckskin may lawfully do so, Buckskin
        grants to Romarco the right to divert streams, to remove lateral and subjacent
        supports, to cave, subside or destroy the surface of any part of it, to
        deposit earth, rocks, waste, lean ore or material on any part or parts
        of the Property and to commit waste to the extent necessary, usual or
        customary in carrying out any or all of the foregoing rights. 

	 
	 	 (c)      	 Romarco will have complete discretion and control
        with respect to all prospecting, exploration, development or other mining
        work carried out on the Property including, without limiting the generality
        of the foregoing, the methods of mining any ore body found on the Property,
        the treatment of any ores, metals, or materials removed from the ore body,
        and the marketing of ores, metals, materials or other product resulting
        therefrom and will have exclusive charge of all operations on the Property.
      

 4.3 Work Standards. All work done by Romarco will be
  executed in accordance with good mining, exploration and development practice
  and in compliance with all applicable laws and regulations including all reclamation
  obligations. 

 4.4 Exclusive Possession. Romarco will have full rights
  of access to and quiet and exclusive possession of the Property. Within five
  days of execution of this Agreement, Buckskin shall execute and deliver to Romarco
  a deed evidencing such rights of Romarco under this Agreement in the form attached
  hereto as Schedule “D” or in such other form as is agreed by Romarco
  and Buckskin. 

 4.5 Ores and Products. Subject to the terms of this
  Agreement, all ores, minerals or metals extracted or produced from the Property
  during the Term, including ores under treatment by Romarco, and all products
  resulting therefrom in the form of concentrates, metallics, bullion, tailings,
  or otherwise will at all times become the sole property of and be sold and shipped
  as the sole property of Romarco. 

 4.6 Encumbrances. Romarco shall have the right to pledge
  its interest in the Property as security for any loan or other borrowing by
  Romarco for the purpose of financing Romarco’s operations on the Property.

 4.7 Expenditures. Romarco will pay all Expenditures
  incurred by Romarco related to the Property each year during the Term of this
  Agreement, including any Land Holding Fees, but will not be required to incur
  and fixed amount of Expenditure in any year apart from the Land Holding Fees,
  provided that if Romarco has not incurred the minimum Expenditures required
  pursuant to Section 2.2(a) of the Due Diligence License Agreement prior to the
  Effective Date, Romarco shall continue to be liable to incur such Expenditures.

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 5. Rent and Royalty 

 5.1 Rent. Subject to Section 5.2, Romarco
  will pay to Buckskin a cash rent each year after the Effective Date as consideration
  for the Lease of the Property, according to the following schedule: 

	 	 (a)      	 $20,020 on or before December 31, 2004; 
	 
	 	 (b)      	 $20,020 on or before December 31, 2005; 
	 
	 	 (c)      	 $23,100 on or before December 31, 2006; 
	 
	 	 (d)      	 $26,180 on or before December 31, 2007; 
	 
	 	 (e)      	 $29,260 on or before December 31, 2008; 
	 
	 	 (f)      	 $30,800 on or before December 31, 2009; and on or before each successive
      December 31 thereafter for the Term of the Agreement. 

 For greater certainty, Romarco will not be required to make
  any payments under this Section 5.1 to the extent that any corresponding License
  Fees were paid pursuant to Section 2.2(b)of the Due Diligence License Agreement,
  prior to the Effective Date. 

 5.2 Royalty. Romarco will pay to Buckskin the Net Smelter
  Returns Royalty within 30 days of each calendar quarter as consideration for
  the Lease of the Property during the Term provided that Romarco shall only be
  required to pay a Net Smelter Return Royalty for a calendar year to the extent
  that such royalty exceeds the amount paid under Section 5.1 for such year. 

 6. Options to Purchase 

 6.1 Option. Buckskin grants to Romarco the exclusive
  right to purchase the Property, (the “Option”) subject to the Rent
  and Royalty reserved by Buckskin. Romarco may exercise the Option at any time
  after Romarco decides to commence development of or mining on the Property or
  completes a positive feasibility study for development of or mining on the Property.
  The Purchase Price for the Property shall be One Thousand Dollars ($1,000.00)
  . The rental Payments paid by Romarco to Buckskin shall not be credited against
  the purchase Price. 

 6.2 Notice of Election. If Romarco elects to exercise
  the Option, Romarco shall deliver written notice to Buckskin. The parties shall
  make diligent efforts to close the conveyance of the Property, as applicable,
  within thirty (30) days after Romarco’s delivery of the notice. 

 6.3 Real Property Transfer Taxes. Romarco shall pay
  the real property transfer taxes, if any, the costs of escrow and all recording
  costs incurred in closing of the Option. The parties acknowledge that there
  are presently no real property transfer taxes assessed on the transfer of title
  to unpatented mining claims, including the unpatented mining claims which constitute
  the Property.

 6.4 Proration of Taxes. Payment of any and all state
  and local real property and personal property taxes levied on the Property and
  not otherwise provided for in this Agreement shall be prorated between the parties
  as of the closing of any transaction on the basis of a thirty (30) day month.
  The parties acknowledge that there are presently no real property taxes assessed
  against unpatented mining claims, including the unpatented mining claims which
  constitute the Property.

 - 8 - 

 6.5 Payment on Closing. On closing of the Option, Romarco
  shall pay the Purchase Price to Buckskin, in cash, certified check or bank draft
  or by wire transfer to an account designated by Buckskin.

 6.6 Conveyance on Closing. If Romarco exercises and
  closes the Option, Buckskin shall execute and deliver to Romarco a conveyance
  of the Property which contains the reservation of the Net Smelter Returns Royalty
  and which obligates Romarco to make the Payments prescribed in Sections 5.1
  and 5.2 of this Agreement. On the closing of the Option, the parties shall complete
  the conveyance by inserting the description of all of the unpatented mining
  claims which comprise the Property on closing of the Option. Buckskin and Romarco
  shall execute and deliver such other written assurances and instructions as
  are reasonably necessary for the purpose of closing the purchase of the Property.

 6.7 Effect of Closing.  On closing of the Option, Romarco
  shall own the Property subject to Romarco’s obligations stated in the
  conveyance of the Property.

 6.8 Buckskin’s Option to Repurchase. If Romarco
  exercises the Option, upon conclusion of its operations on the Property and
  upon determination, in Romarco’s sole discretion, that there is insufficient
  remaining economic value in the Property, Romarco shall offer to sell the Property
  to Buckskin on the same terms Romarco purchased the Property, including the
  purchase price of $1,000. Upon repurchase of the Property by Buckskin, Romarco
  shall furnish to Buckskin without cost all non-interpretive data it has on the
  property, including core samples. 

 7. Taxes and Assessments 

 7.1 Business Taxes and other Taxes of Romarco. In each
  year, Romarco will pay when due and payable, all taxes, rates, duties and assessments
  (whether or not they are now contemplated by Buckskin or Romarco) that may be
  levied, rated, charged, imposed or assessed against or in respect of the personal
  property, improvements, equipment or fixtures of Romarco on the Property or
  against or in respect of the use or occupancy of the Property by Romarco, or
  by any subcontractor (other than corporate income, profits, net proceeds of
  mines or excess profits taxes assessed on the income of Buckskin) whether any
  assessment fees are charged by any federal, state, county or other body. 

 7.2 Real Property Taxes.  Romarco will, in each year
  and within the time provided for by the taxing authorities, pay to the taxing
  authorities, and discharge all taxes including local improvement rates, impost
  charges or levies, rates, duties and assessments whether general or special
  that may be levied, rated charged or assessed against the Property or any part
  thereof from time to time on the basis of a separate assessment and separate
  tax bill by any taxing authority whether federal, state, county or otherwise
  provided that Romarco has been provided with written notice thereof by either
  Buckskin or the appropriate taxing authority. Any taxes payable by Buckskin
  which are imposed in lieu of, or as substitute for any real property taxes shall
  also be paid by Romarco following receipt of written notice thereof from Buckskin.
  Romarco agrees to provide to Buckskin within thirty days after demand by Buckskin,
  a copy of any separate tax bills, and separate notices of assessments for the
  Property. Romarco will on request, promptly deliver to Buckskin receipts of
  payment of all taxes paid to any taxing authorities and will furnish other information
  in connection therewith as Buckskin may reasonably agree. 

 7.3 Buckskin’s Taxes. Romarco will not be liable to pay any taxes
  or assessments levied on Buckskin based on or payable by reason of: 

	 	 (a)      	 the income or net proceeds of mines of Buckskin; 
	 
	 	 (b)      	 any payment made to Buckskin pursuant to this Agreement; or 

 - 9 - 

	 	 (c)      	 any operations or business carried on by Buckskin and related to the
      Property. 

 8. Other Rights and Obligations of the Parties 

 8.1 Indemnity. Romarco will indemnify and save harmless
  Buckskin from and against all suits, claims, demands, losses and expenses (including
  all attorney’s fees), that (a) directly arise as a result of Romarco’s
  activities on the Property; or (b) arise as a result of any breach of any representation,
  warranty or covenant of Romarco in this Agreement. Buckskin will indemnify and
  save harmless Romarco from and against all suits demands, losses and expenses
  (including all attorney’s fees on a solicitor and own client basis), that
  (a) directly arise as a result of any activities by a party other than Romarco
  prior to the date of this Agreement, or by or on behalf of Buckskin after the
  date of this Agreement; or (b) arise as a result of any breach of any representation,
  warranty or covenant of Buckskin in this Agreement.

 8.2 Annual Reports. Romarco will provide Buckskin with
  annual reports indicating any results and interpretations obtained or received
  in connection with exploration or development work on the Property and an accounting
  of Expenditures which were incurred. The annual report will be submitted to
  Buckskin on or before 90 days following December 31 of each year. Notwithstanding
  such disclosure by Romarco, it will not have any liability or responsibility
  to Buckskin in connection with any reports or results that it provides to Buckskin,
  or any information contained therein, and Buckskin agrees that he will rely
  on his own appraisals and interpretations related thereto.

 8.3 Information Disclosure. Upon execution of this
  Agreement and throughout the Term, Buckskin will make available to Romarco all
  information in his possession or control relating to work done on or with respect
  to the Property. 

 8.4 Site Visits. Buckskin may visit the Property and
  have access to all exploration results from the Property, provided reasonable
  notice is given to Romarco and the costs of any such visits will be borne by
  Buckskin and Romarco will be held blameless and will be indemnified by Buckskin
  for any claim or liability arising out of any actions by or the presence of
  Buckskin or its employees on the Property. Buckskin acknowledges and agrees
  that Romarco will not bear any responsibility or liability for any use of any
  information so obtained by Buckskin or as to the accuracy or completeness of
  such information.

 9. Termination 

 Romarco may terminate this Agreement at any time during the
  Term, by giving Buckskin 30 days written notice of termination. If termination
  occurs between July 1st and September 1st of any year,
  Romarco will pay the Land Holding Fees for that year. Upon termination all liabilities
  and obligations of Romarco to Buckskin not then due or accrued will cease and
  terminate except any liabilities or obligations arising prior to termination.
  On Romarco’s termination of this Agreement, within ten days after termination
  Romarco shall exercise and deliver to Buckskin a release and termination of
  this Agreement in form acceptable for recording. 

 GENERAL 

 10. Confidentiality and Press Releases 

 Buckskin agrees that the entering into of this Agreement and
  all data and information provided to or received by Buckskin from Romarco with
  respect to the Property will be treated as confidential. Buckskin will not disclose
  such information to third parties without obtaining the prior written consent
  of Romarco, 

 - 10 - 

 such consent not to be unreasonably withheld, unless law or
  regulatory authority having jurisdiction requires the disclosure. 

 11. Notices 

 11.1 Any notice, direction or other instrument required or
  permitted to be given under this Agreement will be in writing and may be given
  by the delivery of the same or by mailing the same by prepaid registered or
  certified mail or by sending the same by telegram, telex, telecommunication,
  facsimile or other similar form of communication, in each case addressed as
  follows: 

	 	 (a)      	 If to Buckskin at: 

  
    
       Buckskin 

        1000 Hinkey Summit Road 

        Paradise Valley, Nevada 89426 

       Attention: Woodie Bell 

        Facsimile No.: [•] 

       With a copy to: 

       Smith and Harmen Ltd. 

        502 North Division Street 

        Carson City, Nevada 89702-4103 

       Attention: Julian C. Smith 

        Facsimile No.: (775) 883-7482 

    

  

	 	 (b)      	 If to Romarco at: 

  
    
       Romarco Minerals Inc. 

        Suite 1500, 885 West Georgia Street 

        Vancouver, British Columbia V6C 3E8 

       Attention: Diane Garrett 

        Facsimile No.: (604) 688-9274 

    

  

 11.2 Any notice, direction or other instrument will: 

	 	 (a)      	 if delivered, be deemed to have been given and received on the day it
      was delivered; 
	 
	 	 (b)      	 if mailed, be deemed to have been given and received on the 10th day
      following the day of mailing, except in the event of disruption of the postal
      service in which event notice will be deemed to be received only when actually
      received; and 
	 
	 	 (c)      	 if sent by telegram, telex, telecommunication, facsimile or other similar
      form of communication, be deemed to have been given and received on the
      business day following the day it was so sent. 

 - 11 - 

 11.3 A Party may at any time give to the other Party notice
  in writing of any change of address of the Party giving such notice and from
  and after the giving of such notice the address or addresses therein specified
  will be deemed to be the address of such Party for the purposes of giving notice
  hereunder. 

 12. Force Majeure 

 Other than cash payments to be made hereunder, no Party hereto
  will be liable to the others and no Party hereto will be deemed in default under
  this Agreement for any failure or delay to perform any of its obligations within
  the times specified under this Agreement if such failure or delay is caused
  by or arises out of any act not within the control of the Party, excluding lack
  of funds but including, without limitation, acts of God, strikes, lockouts,
  or other industrial disputes, acts of the public enemy, riots, fire, storm,
  flood, explosion, act of terrorism, government restriction, aboriginal land
  claims, failure to obtain any approvals required from regulatory authorities,
  including environmental protection agencies, unavailability of equipment, interference
  of third party specific interests groups or other causes whether of the kind
  enumerated above or otherwise which is not reasonably within the control of
  the Party. No right of a Party will be affected for failure or delay of the
  Party to meet any condition of this Agreement, which failure or delay is caused
  by one of the events above referred to, and all times provided for in this Agreement
  will be extended for a period commensurate with the period of the delay, and
  so far as possible the Party affected will take all reasonable steps to remedy
  the delay caused by the events above referred to provided, however, that nothing
  contained in this section will require any Party to settle any industrial dispute
  or to test the constitutionality of any law enacted by any Provincial, State
  or Federal Government. Any Party relying on the provisions of this section will
  forthwith give notice to the other Party of the commencement of such event and
  of its termination. 

 13. Obligations Several 

 The obligations of each party under this Agreement shall be
  in every case several and shall not be construed to be either joint or joint
  and several and nothing herein shall be construed as creating a partnership
  between the parties. Nothing contained in this Agreement shall be deemed to
  constitute a party an agent or legal representative of the other party or to
  create any fiduciary relationship for any purpose whatsoever. Except as otherwise
  specifically provided in this Agreement, a party shall not have any authority
  to act for, or to assume any obligation or responsibility on behalf of, any
  other party. Each party hereby waives its rights to partition of the Property
  and, to that end, agrees that it will not seek or be entitled to partition of
  the Property whether by way of physical partition, judicial sale or otherwise.

 14. Entire Agreement 

 This Agreement including Schedules “A”, “B”,
  “C” and “D” hereto, constitutes the entire Agreement
  between Buckskin and Romarco pertaining to the Property and supersedes all prior
  agreements, understandings, negotiations and discussions, whether oral or written
  between Buckskin and Romarco, and there are no warranties, representations or
  other agreements between Buckskin and Romarco in connection with the Property
  except as set forth herein. 

 15. Headings 

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 - 12 - 

 16. Further Assurances and Agreements 

 Each of the parties to this Agreement will take all such further
  steps and execute all such further and other documentation as may be necessary
  in order to more fully give effect to the provisions of this Agreement.

 17. Counterparts 

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which will be deemed to be an original and all of which
  will constitute one and the same document. 

 18. Governing Law 

 This Agreement will be governed by and construed in accordance
  with the laws of the State of Nevada. 

 IN WITNESS WHEREOF the parties have executed this agreement
  as of the date first written above. 

	 ROMARCO MINERALS INC.  	 BUCKSKIN NATIONAL MINE LTD.  
	  
	  
	 By:  _________________________	_________________________________
	        Diane
      Garrett  	 Woodie Bell  
	        President
      and CEO  	 Title:  _____________________________

 SCHEDULE A 

 THE PROPERTY 

 Humboldt County BLM 

	 Claim Name  	 Document No.  	 Serial No.  
	 Ormand Bell  	 No.  2	 796406  
	 Rattler  	 No.  1	 796407  
	 Buick  	  	 796408  
	 Ormand Bell  	 No.  1	 796409  
	 Hudson  	  	 796410  
	 Normand Bell  	 No.  2	 796411  
	 Rambler  	  	 796412  
	 Normand Bell  	 No.  1	 796413  
	 Maxwell  	  	 796414  
	 Reo  	  	 796415  

 SCHEDULE B 

 NET SMELTER RETURNS ROYALTY 

	 Royalty (%)  	 Gold Price ($)  
	 3.0  	 up to  (and including) < 300.00  
	 3.5  	 300.01  to  350.00  
	 4.0  	 350.01  to  400.00  
	 4.5  	 400.01  to  500.00  
	 5.0  	 over > 500.00  

 For the purposes of this Schedule A and the Agreement to which this Schedule
  A is attached, the Gold Price shall mean the average New York fix for the relevant
  quarter. 

 SCHEDULE C 

 NET SMELTER RETURNS ROYALTY 

	 1.      	 Definitions – For the purpose of this
        Schedule, “Agreement” shall mean the Agreement to which this
        Schedule is attached, and other capitalized terms shall have the meanings
        assigned to them in the Agreement. 

	 
	 2.      	 Net Smelter Returns – For the purpose
        hereof, the term “Net Smelter Returns” shall, subject to paragraphs
        3, 4, 5, and 6 below, mean gross revenues received from the sale by the
        Owner of all ore mined from the Property and from the sale by the Owner
        of concentrate, doré, metal and products derived from ore mined
        from the Property, after deduction of the following: 

	 

	 	 (a)      	 all smelting and refining costs, sampling, assaying
        and treatment charges and penalties including but not limited to metal
        losses, penalties for impurities and charges for refining, selling and
        handling by the smelter, refinery or other purchaser (including price
        participation charges by smelters and/or refiners); and 

	 
	 	 (b)      	 costs of handling, transporting, securing and insuring
        such material from the Property or from a concentrator, whether situated
        on or off the Property, to a smelter, refinery or other place of treatment,
        and in the case of gold or silver concentrates, security costs; and 

	 
	 	 (c)      	 ad valorem taxes and taxes based upon sales or production,
        but not income or net proceeds of mines taxes; and 

	 
	 	 (d)      	 marketing costs, including sales commissions, incurred
        in selling ore mined from the Property and from concentrate, doré,
        metal and products derived from ore mined from the Property. 

	 

	 3.      	 Non-Arm’s Length Revenue – Where
        revenue otherwise to be included under this Schedule is received by the
        Owner in a transaction with a party with whom it is not dealing at arm’s
        length, the revenue to be included shall be based on the fair market value
        under the circumstances and at the time of the transaction. 

	 
	 4.      	 Non-Arm’s Length Costs – Where
        a cost otherwise deductible under this Schedule is incurred by the Owner
        in a transaction with a party with whom it is not dealing at arm’s
        length, the cost to be deducted shall be the fair market cost under the
        circumstances and at the time of the transaction. 

	 
	 5.      	 Currency – For the purpose of determining
        Net Smelter Returns, all receipts and major disbursements will be calculated
        in U.S. dollars. 

	 
	 6.      	 Hedging – Romarco may, but shall not
        be under any duty to, engage in price protection (hedging) or speculative
        transactions such as futures contracts and commodity options in its sole
        discretion covering all or part of production from the Property and, except
        in the case where products are actually delivered and a sale is actually
        consummated under such price protection or speculative transactions, none
        of the revenues, costs, profits or losses from such transactions shall
        be taken into account in calculating Net Smelter Returns or any interest
        therein. 

	 
	 7.      	 Commingling – If the Property is brought
        into commercial production, it may be operated as a single operation with
        other mining properties owned by third parties or in which the Owner has
        an 

 - 2 - 

	 	 interest, in which event, the parties agree that
        (notwithstanding separate ownership thereof) ores mined from the mining
        properties (including the Property) may be blended at the time of mining
        or at any time thereafter, provided, however, that the respective mining
        properties shall bear and have allocated to them their proportionate part
        of costs described in paragraphs 2(a) to 2(d) above incurred relating
        to the single operation, and shall have allocated to each of them the
        proportionate part of the revenues earned relating to such single operation.
        In making any such allocation, effect shall be given to the tonnages and
        location of ore and other material mined and beneficiated and the characteristics
        of such material including the metal content of ore removed from, and
        to any special charges relating particularly to ore, concentrates or other
        products or the treatment thereof derived from, any of such mining properties.
      

	 
	 8.      	 Sampling – The Owner shall ensure that
        reasonable practices and procedures are adopted and employed for weighing,
        determining moisture content, sampling and assaying and determining recovery
        factors. 

	 
	 9.      	 Payments – Payments of a percentage
        of Net Smelter Returns shall be made to Bell within thirty (30) days after
        the end of each calendar quarter in which Net Smelter Returns, as determined
        on the basis of final adjusted invoices, are received by the Owner. All
        such payments shall be made in U.S. dollars, or at the option of the Holder,
        in kind. 

	 
	 10.      	 Calculations – After the year in which
        commercial production is commenced on the Property, Bell receiving a percentage
        of Net Smelter Returns from the Owner shall be provided annually on or
        before April 1 with a copy of the calculation of Net Smelter Returns,
        determined in accordance with this Schedule, for the preceding calendar
        year, certified correct by the Owner. 

	 
	 11.      	 Audits – The Owner shall cause the
        Net Smelter Returns and the records relating thereto to be audited within
        the first quarter of each calendar year by a national firm of chartered
        accountants designated and paid by the Owner (which may be the auditor
        of the Owner) and: 

	 

	 	 (a)      	 copies of the audited reports shall be delivered
        to the Holder and the Owner by the chartered accounting firm; 

	 
	 	 (b)      	 either party shall have three (3) months after receipt
        of any audited report to object thereto in writing to the other party,
        and failing such objection, such report shall be deemed correct; and 

	 
	 	 (c)      	 in the event of a reaudit, all costs relating to
        such reaudit shall be paid by the Owner (if the original audit is found
        in error by a margin of 10% or more) or Bell (if the original audit is
        found to be correct) and the Holder requested the reaudit. 

	 

	 12.	 Rights of Parties – Nothing contained in the Agreement or
      any Schedule attached thereto shall be deemed to constitute Romarco the
      partner, agent or legal representative of Bell or to create any fiduciary
      relationship between them for any purpose whatsoever. 
	 
	 13.      	 Operations – The Owner shall be entitled to: 
	 

	 	 (a)      	 Make all operational decisions with respect to the methods and extent
      of mining and processing of ore, concentrate, doré, metal and products
      produced from the Property (for example, without limitation, the decision
      to process by heap leaching rather than conventional milling); 

 - 3 - 

	 	 (b)      	 Make all decisions relating to sales of such ore, concentrate, doré,
      metal and products produced; and 
	 
	 	 (c)      	 Make all decisions concerning temporary or long-term cessation of operations.
    

 SCHEDULE D 

 MEMORANDUM OF MINING LEASE AGREEMENT 

      This Memorandum of Mining Lease Agreement (“Memorandum”)
  is made by and between Buckskin National Mine Ltd., a limited partnership organized
  under the laws of Nevada (“Owner”), and Romarco Minerals Inc., an
  Ontario corporation (“Romarco”). 

      Notice is given that Owner and Romarco have
  entered into the Mining Lease Agreement (“Agreement”) dated effective
  the date of this Memorandum, in accordance with which Owner has leased to Romarco
  the unpatented mining claims described in Schedule 1 attached to and by this
  reference incorporated in this Memorandum. 

      The term of the Agreement shall be from its
  Effective Date for 10 (10) years, unless terminated, renewed or cancelled. 

 SCHEDULE C 

 MEMORANDUM OF DUE DILIGENCE LICENSE AGREEMENT 

      This Memorandum of Due Diligence License Agreement
  (“Memorandum”) is made by and between Buckskin National Mine Ltd.,
  a limited partnership organized under the laws of Nevada (“Owner”),
  and Romarco Minerals Inc., an Ontario corporation (“Romarco”). 

      Notice is given that Owner and Romarco have
  entered into the Due Diligence License Agreement (“Agreement”) dated
  effective the date of this Memorandum, in accordance with which Owner has leased
  to Romarco the unpatented mining claims described in Schedule 1 attached to
  and by this reference incorporated in this Memorandum. 

     The term of the Agreement shall be from its Effective
  Date for 10 (10) years, unless terminated, renewed or cancelled.

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