Document:

EX-10.74

EXHIBIT 10.74

AMENDMENT

to the

STOCK PURCHASE AGREEMENT

This Amendment to the Stock Purchase Agreement (this “Amendment”), dated as of
November 18, 2004, by and among Pinnacle West Capital Corporation, an Arizona corporation
(“PNW”), El Dorado Investment Company, an Arizona corporation (“El Dorado” and,
together with PNW, the “Seller Parties”), and USEC Inc., a Delaware corporation
(“Purchaser”). The Seller Parties and Purchaser are sometimes referred to herein
collectively as the “Parties” and each individually as a “Party.”

WHEREAS, the Parties are also parties to that certain Stock Purchase Agreement, dated as of
July 29, 2004 (the “Agreement”); and

WHEREAS, the Parties desire to amend the Agreement to reflect the Parties’ agreement as to
certain matters set forth below.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained in this Amendment and the Agreement, and intending to be legally bound hereby, the
Parties agree as follows:

	 	1.	 	Terms used herein and not defined herein shall have the meanings ascribed them in the
Agreement.

	 	2.	 	Section 1.1 of the Agreement is hereby amended by inserting the following terms in
the appropriate alphabetical order:

"Assumed Margin Amount” means the present value of $1,173,000 (as calculated
pursuant to Schedule 2.8(c)(ii)), as of the date of the event giving rise to the
need to calculate the Assumed Margin Amount and assuming a discount rate of 10%, which
represents the Parties’ agreed-upon estimate of the present value of the net margin
anticipated as of the Closing Date on NAC Consulting business (other than net margin
resulting from the Existing NMMSS Contract) for calendar years 2006 through 2008 as if the
Existing NMMSS Contract had been formally extended for three (3) years on terms and
conditions consistent with the NMMSS Base Contract Terms.

"Contingent Contract Payment” has the meaning set forth in Section
2.8(c)(i).

"Contingent Contract Payment Threshold” has the meaning set forth in Section
2.8(e)(iii).

"Contingent Extension Payment” has the meaning set forth in Section 2.8(d).

"Contingent Payment” means a Contingent Contract Payment, Contingent Extension
Payment, Contingent Sale Payment or Contingent Termination Payment, as applicable.

"Contingent Sale Payment” has the meaning set forth in Section 2.8(e)(vii).

"Contingent Termination Payment” has the meaning set forth in Section
2.8(h).

"Covered Period” means the period beginning on the Closing Date and ending on the
earlier of (i) the date a Contingent Sale Payment becomes payable to El Dorado, and (ii)
March 31, 2006; provided, that, if the Covered Period would otherwise expire on
March 31, 2006 and on such date the Subsidiary has a pending NMMSS Contract Offer for a
NMMSS Follow-On Contract before a Requesting Agency, the Covered Period will be extended
until such time as either (i) the Subsidiary and the Requesting Agency execute such NMMSS
Follow-On Contract or (ii) such NMMSS Contract Offer is rejected or has expired and
Purchaser gives written notice to the Seller Parties that the Subsidiary in good faith has
determined that it will not submit another NMMSS Contract Offer in connection therewith.

"Escrow Agreement” means that certain Escrow Agreement, dated as of the date
hereof, by and among the Seller Parties, Purchaser and Wachovia Bank, National Association,
a national banking association, as Escrow Agent.

"Escrow Earnings” has the meaning set forth in Section 2.8(j).

"Escrow Funds” has the meaning given it in the Escrow Agreement.

"Estimated Payment Notice” means a written notice of a proposed Contingent Payment
amount, together with reasonable detail as to how the proposed amount was determined.

"Excess Escrow Funds” has the meaning set forth in Section 2.8(i)(iv).

"Existing NMMSS Contract” means Contract No. DE-AC03-98SF21544, dated September 28,
1998, as amended, between the Subsidiary and the DOE.

"Final NMMSS Award Date” has the meaning set forth in Section 2.8(e)(iv).

"Interim OCI Waiver” shall mean a written waiver granted by each of DOE and NRC to
the Subsidiary with respect to any Organizational Conflict of Interest under the Existing
NMMSS Contract arising out of Purchaser’s ownership of the Subsidiary after the Closing or
Purchaser’s status as an NRC licensee, on terms and conditions that are, in Purchaser’s
sole discretion, commercially reasonable.

"NAC Consulting” has the meaning set forth in Section 2.8(e)(ii).

"NAC Consulting Sale” has the meaning set forth in Section 2.8(e)(ii).

"NAC Sale” has the meaning set forth in Section 2.8(e)(viii).

"Net Proceeds” means, with respect to a NAC Consulting Sale, (i) the sum of (A) the
cash, market value of marketable equity securities or interests, fair value of unmarketable
equity securities or interests, and face amount of straight and convertible debt
instruments or obligations issued to Purchaser or any Affiliate of Purchaser in connection
with the NAC Consulting Sale, (B) the amount of indebtedness (excluding trade payables) of
the Company or the Subsidiary assumed directly or indirectly by the acquiring Person or any
Affiliate of the acquiring Person in connection with the NAC Consulting Sale and (C) the
value of any contingent payment obligations, including earn-outs, when and if actually
received by Purchaser, less (ii) Transaction Costs.

"NMMSS Base Contract Terms” has the meaning set forth in Section 2.8(b).

"NMMSS Contract Offer” has the meaning set forth in Section 2.8(b).

"NMMSS Contract Solicitation” has the meaning set forth in Section 2.8(b).

"NMMSS Follow-On Contract” has the meaning set forth in Section 2.8(b).

"NMMSS Losses” means those losses incurred by the Subsidiary in connection with the
termination of the Existing NMMSS Contract, including the related severance costs actually
incurred by the Subsidiary; the present value of the loss of fees to be earned by the
Subsidiary under the Existing NMMSS Contract; the direct and indirect costs previously
allocated to the Existing NMMSS Contract that will no longer be covered, after taking into
account any cost reduction measures taken by the Subsidiary; and the present value of the
reduced net margin on other NAC Consulting business expected to be achieved in calendar
years 2006 through 2008 as compared to the Assumed Margin Amount (as calculated in
accordance with Schedule 2.8(c)(ii)).

"NMMSS Program Services” means the services being performed by the Subsidiary under
the scope of work of the Existing NMMSS Contract as of the Closing.

"Requesting Agency” has the meaning set forth in Section 2.8(b).

"Restricted Sale Period” has the meaning set forth in Section 2.8(e)(i).

"Sale Consent” has the meaning set forth in Section 2.8(e)(ii).

"Transaction Costs” means, with respect to a NAC Consulting Sale, transaction
costs, including, but not limited to, fees of attorneys’, financial advisors, accountants,
consultants and other advisors incurred in connection with such transaction, including any
costs of transferring NAC Consulting to a separate legal entity.

3. Section 2.2 of the Agreement is hereby amended and restated as follows:

The purchase price for the Company Shares will be cash in the amount of Ten Million Dollars
($10,000,000) plus up to Six Million Dollars ($6,000,000) payable in whole or in part upon
the terms and conditions set forth in Section 2.8 (collectively, the “Purchase
Price”), subject to adjustment as determined pursuant to the provisions of Section
2.7.

	 	4.	 	Section 2.5 of the Agreement is hereby amended by deleting the word “and” at the end
of Section 2.5(o), by designating the original Section 2.5(p) as Section
2.5(q), and by adding a new Section 2.5(p) as follows:

	 	(p)	 	the Escrow Agreement, duly executed by the Seller Parties;
and

5. Section 2.6(d) of the Agreement is hereby amended and restated as follows:

payment by wire transfer of immediately available U.S. funds to the bank account designated
by the Seller Parties in writing no later than five (5) Business Days prior to the Closing
in the amount of Ten Million Dollars ($10,000,000), plus or minus, as applicable, the
Estimated Working Capital Adjustment;

	 	6.	 	Section 2.6 of the Agreement is hereby further amended by deleting the word “and” at
the end of Section 2.6(e), by designating the original Section 2.6(f) as
Section 2.6(g), and by adding a new Section 2.6(f) as follows:

(f) the Escrow Agreement, duly executed by Purchaser; and

7. The Agreement is hereby amended by adding a new section after Section 2.7 as follows:

2.8 Contingent Payment.

(a) Escrow Agreement. Concurrently with the Closing, the Seller Parties and
Purchaser will enter into the Escrow Agreement and, pursuant thereto, Purchaser will
deliver to the escrow agent thereunder the sum of Six Million Dollars ($6,000,000) to fund
the Contingent Payment, to the extent payable, on the terms and subject to the conditions
set forth in this Section 2.8.

(b) Bid for NMMSS Follow-On Contract. Subject to Section 2.8(e),
Purchaser agrees that, during the Covered Period, it will cause the Subsidiary, or any
successor to the Subsidiary, unless prohibited by the DOE and/or other applicable
governmental agency (the “Requesting Agency”), to make in response to each
Requesting Agency request for bid, proposal or other solicitation of an offer to perform
all or a significant portion of the NMMSS Program Services (a “NMMSS Contract
Solicitation”) a good faith, timely bid, proposal or similar offer (a “NMMSS
Contract Offer”) for a contract to perform such NMMSS Program Services (each, a
“NMMSS Follow-On Contract”), on terms that are commercially reasonable and, to the
extent consistent with the related NMMSS Contract Solicitation, meet the terms and
conditions set forth in Schedule 2.8(b) hereto (the “NMMSS Base Contract
Terms”), and, if so requested by the Requesting Agency, to engage in good faith
negotiations with the Requesting Agency for each such NMMSS Follow-On Contract;
provided, that nothing herein will preclude Purchaser from bidding or proposing or
negotiating commercially reasonable terms other than the NMMSS Base Contract Terms to the
extent necessary, in Purchaser’s commercially reasonable judgment, to help improve the
Subsidiary’s chances of securing a NMMSS Follow-On Contract; provided,
further, that nothing herein will preclude Purchaser from teaming with one or more
Persons in making a NMMSS Contract Offer to the extent necessary, in Purchaser’s sole
discretion, to improve the Subsidiary’s chances of securing a NMMSS Follow-On Contract; and
provided, further, that Purchaser will have no obligation to make a NMMSS
Contract Offer in response to a NMMSS Contract Solicitation if the Existing NMMSS Contract
is terminated by the DOE prior to September 30, 2005 and Purchaser reasonably concludes
that it is not commercially reasonable under the circumstances for the Subsidiary to pursue
a NMMSS Follow-On Contract. Purchaser will provide the Seller Parties with a draft of each
NMMSS Contract Offer and, to the extent practicable, give the Seller Parties a reasonable
opportunity to comment thereon.

(c) Execution of NMMSS Follow-On Contract.

(i) In the event that, in response to a NMMSS Contract Offer made during the
Covered Period, the Subsidiary and a Requesting Agency execute one or more NMMSS
Follow-On Contracts on terms and conditions that, in the reasonable judgment of
Purchaser, collectively result (upon consideration of the economic benefits
accruing under the base contract term but not beyond December 31, 2009) in an
economic benefit to the Subsidiary that is at least as favorable to the Subsidiary
as if the Existing NMMSS Contract had been formally extended for three (3) years
on terms and conditions consistent with the NMMSS Base Contract Terms, then,
within ten (10) Business Days of any such mutual execution and delivery of a NMMSS
Follow-On Contract(s), payment will be made to El Dorado in an amount equal to Six
Million Dollars ($6,000,000) less any amounts paid to El Dorado pursuant to
Section 2.8(d) or Section 2.8(h) (such payment, including as it
may be reduced pursuant to Section 2.8(c)(ii), the “Contingent
Contract Payment”) pursuant to the Escrow Agreement, if the Escrow Agreement
has not been terminated, or, if the Escrow Agreement has been terminated, directly
by Purchaser.

(ii) In the event that, in response to a NMMSS Contract Offer made during the
Covered Period, the Subsidiary and a Requesting Agency execute one or more NMMSS
Follow-On Contracts on terms and conditions that, in the reasonable judgment of
Purchaser, collectively result (upon consideration of the economic benefits
accruing under the base contract term but not beyond December 31, 2009) in an
economic benefit to the Subsidiary that is less favorable to the Subsidiary than
if the Existing NMMSS Contract had been formally extended for three (3) years on
terms and conditions consistent with the NMMSS Base Contract Terms, then El Dorado
will be entitled to payment of an equitably reduced Contingent Contract Payment
(if, after the equitable reduction, the Contingent Contract Payment amount is a
positive amount), which reduction will reflect, among other things: the severance
costs actually incurred by the Subsidiary as a result of the reduced scope of the
NMMSS Follow-On Contract(s); the present value of the reduction in fees to be
earned by the Subsidiary under the Existing NMMSS Contract; the direct and
indirect costs previously allocated to the Existing NMMSS Contract that will no
longer be covered, after taking into account any cost reduction measures taken by
the Subsidiary; and the present value of the reduced net margin on other NAC
Consulting business expected to be achieved in calendar years 2006 through 2008 as
compared to the Assumed Margin Amount (as calculated in accordance with
Schedule 2.8(c)(ii)). Within ten (10) Business Days of any such mutual
execution and delivery of one or more such NMMSS Follow-On Contracts, Purchaser
will deliver to the Seller Parties an Estimated Payment Notice, including a copy
of the NMMSS Follow-On Contract(s). Thereafter, the Parties will follow the
resolution and payment procedures set forth in Section 2.8(f) and
Section 2.8(g).

(iii) If the Subsidiary will share the financial benefits of any NMMSS
Follow-On Contract with one or more Persons (other than a subsidiary of Purchaser)
pursuant to a teaming arrangement in which the Subsidiary is participating
(whether as the prime contractor on behalf of the other Persons in such
arrangement or as a subcontractor of another Person serving as the prime
contractor), only the financial benefits accruing to the Subsidiary will be
considered in determining the Contingent Contract Payment. The Seller Parties
will be entitled to a percentage of the Contingent Contract Payment that would
have been payable had no such teaming arrangement occurred and such percentage
will correspond to the percentage of the economic benefit under the NMMSS
Follow-On Contract allocable to the Subsidiary, as compared to the economic
benefit to the Subsidiary under such NMMSS Follow-On Contract had no such teaming
arrangement occurred.

(d) Extension of Existing NMMSS Contract. In the event that the DOE extends
the Existing NMMSS Contract or any portion thereof more than three (3) months beyond
September 30, 2005, then El Dorado will be entitled to a payment (the “Contingent
Extension Payment”) that equitably reflects the value of such extension from September
30, 2005, consistent with the terms of this Section 2.8, including but not limited
to the reduction factors listed in Section 2.8(c)(ii), and which will not exceed
Six Million Dollars ($6,000,000). Within ten (10) Business Days of the Subsidiary’s
receipt of notice of any such extension, Purchaser will promptly deliver to the Seller
Parties an Estimated Payment Notice, including the terms of the extension. Thereafter, the
Parties will follow the resolution and payment procedures set forth in Section
2.8(f) and Section 2.8(g). The maximum Contingent Contract Payment payable
pursuant to Section 2.8(c) will be reduced by the amount of any Contingent
Extension Payment made pursuant to this Section 2.8(d).

(e) Sale or Transfer Events.

(i) During the period (the “Restricted Sale Period”) from and after
the Closing until the earlier of (A) expiration of the Covered Period and (B) such
time as one or more Contingent Contract Payments, Contingent Extension Payment
and/or Contingent Termination Payment that, when taken together, equal or exceed
Three Million Dollars ($3,000,000) (the “Contingent Contract Payment
Threshold”) have been paid or are payable to El Dorado, Purchaser may not
enter into, or permit the Company or the Subsidiary to enter into, an agreement
(x) relating to a NAC Consulting Sale (as defined below) with any Person, or (y)
to assign or otherwise transfer all or any portion of the Existing NMMSS Contract
to any Person, except as set forth in this Section 2.8(e);
provided that Purchaser will be permitted to transfer all or any portion
of NAC Consulting (as defined below), including the Existing NMMSS Contract, to a
direct or indirect wholly-owned subsidiary of Purchaser to help facilitate a
possible NAC Consulting Sale, in which event references to the Subsidiary in this
Section 2.8 will also be deemed to refer to such transferee, as
applicable. After the expiration of the Restricted Sale Period, there will be no
limitations on Purchaser’s ability to take any of the actions described in (x) and
(y) above, and no Contingent Sale Payment (as defined below) or other payment will
be payable in connection therewith, except pursuant to Section 2.8(e)(iii)
or Section 2.8(e)(iv).

(ii) During the Restricted Sale Period, subject to Section
2.8(e)(iv), Purchaser will be entitled to sell (a “NAC Consulting
Sale”), directly or indirectly, all or substantially all of the Subsidiary’s
consulting line of business (which includes, but is not limited to, those assets
associated with the administration of the Existing NMMSS Contract) (“NAC
Consulting”) only with the prior written consent of the Seller Parties (which
consent will not be unreasonably withheld, conditioned or delayed) (a “Sale
Consent”).

(iii) Upon the closing of a NAC Consulting Sale pursuant to an agreement or
agreements of sale executed by the prospective purchaser or purchasers prior to
the expiration of the Restricted Sale Period (unless, between such execution and
closing, payments owing to El Dorado pursuant to this Section 2.8 will
have reached the Contingent Contract Payment Threshold, whereupon no Contingent
Sale Payment will thereafter be payable pursuant to this Section 2.8(e) or
otherwise), El Dorado will be entitled to cash in an amount equal to (A) Three
Million Dollars ($3,000,000) plus (B) fifty percent (50%) of the Net Proceeds in
excess of Three Million Dollars ($3,000,000), if any, up to an aggregate payment
to El Dorado of Six Million Dollars ($6,000,000) less any Contingent Contract
Payment, Contingent Extension Payment or Contingent Termination Payment. Within
ten (10) Business Days following any such closing of a NAC Consulting Sale,
Purchaser will deliver to the Seller Parties an Estimated Payment Notice,
including a copy of the NAC Consulting Sale transaction agreement(s). Thereafter,
the Parties will follow the resolution and payment procedures set forth in
Section 2.8(f) and Section 2.8(g).

(iv) Notwithstanding anything to the contrary herein, at any such time that
one or more NMMSS Follow-On Contracts with respect to all significant NMMSS
Program Services for which one or more NMMSS Contract Solicitations were issued
during the Covered Period have been entered into by one or more Persons other than
the Subsidiary (or a Person other than another subsidiary of Purchaser teaming
with the Subsidiary to secure a NMMSS Follow-On Contract) during the Restricted
Sale Period (such time, the “Final NMMSS Award Date”), Purchaser will be
entitled to effect a NAC Consulting Sale without any Sale Consent. Upon the
closing of such a NAC Consulting Sale pursuant to an agreement or agreements of
sale executed by the prospective purchaser or purchasers prior to the expiration
of the Restricted Period (unless, between such execution and closing, payments
owing to El Dorado pursuant to this Section 2.8 will have reached the
Contingent Contract Payment Threshold, whereupon no Contingent Sale Payment will
thereafter be payable pursuant to this Section 2.8(e) or otherwise), if
the Net Proceeds from such NAC Consulting Sale (A) equal or exceed Six Million
Dollars ($6,000,000), then El Dorado will be entitled to a Contingent Sale Payment
in an amount calculated in accordance with Section 2.8(e)(iii), or (B) are
less than Six Million Dollars ($6,000,000), then El Dorado will be entitled to
payment in cash in an amount equal to fifty percent (50%) of the Net Proceeds.
Within ten (10) Business Days following any such closing of a NAC Consulting Sale,
Purchaser will deliver to the Seller Parties an Estimated Payment Notice,
including a copy of the NAC Consulting Sale transaction agreement(s). Thereafter,
the Parties will follow the resolution and payment procedures set forth in
Section 2.8(f) and Section 2.8(g).

(v) Upon receipt by Purchaser of a Sale Consent, Purchaser will use its
reasonable efforts to promptly consummate a NAC Consulting Sale, and, assuming
Purchaser is not in breach of its foregoing obligation and subject to Section
2.8(e)(vi), (A) Purchaser will have no obligation to cause the Subsidiary to
make any NMMSS Contract Offer, (B) the Seller Parties will cease to have any
rights to any payment pursuant to Section 2.8(c) (other than any payment
payable at the time such Sale Consent was given), without regard to whether the
Subsidiary enters into a NMMSS Follow-On Contract, and (C) in the event that a NAC
Consulting Sale is not consummated, the Seller Parties will not be entitled to any
payments pursuant to this Section 2.8(e) in respect of such unconsummated
sale.

(vi) Notwithstanding anything to the contrary herein, during the Restricted
Sale Period, in the event that a Sale Consent is given by the Seller Parties but a
NAC Consulting Sale is not consummated, and the Restricted Sale Period has not yet
expired upon termination or expiration of the agreement(s) of sale relating to the
unconsummated NAC Consulting Sale, (A) the Seller Parties will be entitled to any
Contingent Contract Payment otherwise payable pursuant to Section 2.8(c)
in connection with any NMMSS Follow-On Contract executed by the Subsidiary and a
Requesting Agency in respect of a NMMSS Contract Offer that was pending before
such Requesting Agency at the time the Sale Consent was given or that Purchaser
made during the Restricted Sale Period at its own election after the Sale Consent
was given, and (B) to the extent still practicable, commercially reasonable and
responsive to a pending NMMSS Contract Solicitation, and to the extent not
prohibited by a Requesting Agency, Purchaser will cause the Subsidiary to make a
NMMSS Contract Offer in accordance with the provisions of Section 2.8(b)
and any Contingent Contract Payment payable in connection therewith shall be made
in accordance with Section 2.8(c); provided that fifty percent
(50%) of Purchaser’s Transaction Costs in connection with the unconsummated NAC
Consulting Sale shall be deducted from any Contingent Contract Payments payable
pursuant to clause (A) and (B) above.

(vii) Upon the making of all payments to El Dorado required by the terms of
Section 2.8(e)(iii) or Section 2.8(e)(iv) or in connection with a
NAC Sale (a “Contingent Sale Payment”), El Dorado will cease to have any
rights to further payments pursuant to this Section 2.8 or to the Escrow
Funds, and Purchaser and the Seller Parties will promptly cause the Escrow Funds
to be released to Purchaser.

(viii) Upon the request of Purchaser, the Parties will agree in good faith
upon terms that will apply in the event that Purchaser desires to sell all of the
outstanding Company Shares or Subsidiary Shares or all or substantially all of the
assets of the Subsidiary (a “NAC Sale”).

(f) Resolution Procedures.

(i) Within ten (10) Business Days after the Seller Parties’ receipt of an
Estimated Payment Notice, the Seller Parties will notify Purchaser in writing of
the Seller Parties’ acceptance or rejection of Purchaser’s proposed Contingent
Payment. Any Rejection Notice by the Seller Parties must include reasonable
detail as to the reasons for such rejection and the Seller Parties’ proposed
calculation of the Contingent Payment. If (A) by written notice to Purchaser, the
Seller Parties accept the proposed Contingent Payment as set forth in the
Estimated Payment Notice, or (B) the Seller Parties fail to deliver any notice of
acceptance or rejection of the proposed Contingent Payment within the prescribed
ten (10) Business Day period, the determination of the Contingent Payment as set
forth in the Estimated Payment Notice will be deemed accepted by the Seller
Parties and will be final and binding on the Parties.

(ii) If the Seller Parties deliver a Rejection Notice to Purchaser under
Section 2.8(f)(i), the Seller Parties and Purchaser will promptly attempt
in good faith to agree upon a Contingent Payment. If the Seller Parties and
Purchaser are unable to agree upon a Contingent Payment within thirty (30) days
after the date of the Rejection Notice, then the Seller Parties and Purchaser will
refer the dispute to Independent Accountants for review and final determination of
the Contingent Payment, and, in connection therewith, will submit their final
respective proposals for the amount of the disputed Contingent Payment;
provided, that the Parties agree that any undisputed portion of a
Contingent Payment will be paid to El Dorado in accordance with Section
2.8(g). The Independent Accountants may request of the Seller Parties or
Purchaser such documents and information as may be necessary or appropriate for
proper determination of the matter, and the Seller Parties and Purchaser will
cooperate to promptly satisfy any such request. Any such documents provided to
the Independent Accountants shall be provided on a confidential basis and shall be
concurrently provided to the other Parties. The Independent Accountants will be
instructed by the Seller Parties and Purchaser to select as the Contingent Payment
either the amount last proposed by Purchaser or the amount last proposed by the
Seller Parties and not any other amount. The determination by the Independent
Accountants of the Contingent Payment will be final and binding on the Seller
Parties and Purchaser. The reasonable costs and expenses of the Independent
Accountants will be paid by the Party whose proposal for the amount of the
Contingent Payment is not selected by the Independent Accountants.

(g) Payment of Contingent Payment. Within ten (10) Business Days of the date
of the final agreement of the Seller Parties and Purchaser, the final determination by the
Independent Accountants or the deemed acceptance by the Seller Parties, as the case may be,
with respect to a Contingent Payment or any portion thereof, Purchaser will pay El Dorado,
or Purchaser and the Seller Parties will request payment to be made to El Dorado pursuant
to the Escrow Agreement of, as applicable, an amount equal to any such Contingent Payment
or portion thereof that has not previously been paid pursuant to the other provisions of
this Section 2.8. In the event that the Escrow Agreement has terminated, any
Contingent Payment or portion thereof otherwise payable hereunder to El Dorado pursuant to
the Escrow Agreement will then be paid directly by Purchaser to El Dorado. In the event
that a portion of the Escrow Funds has been released to Purchaser and the remaining Escrow
Funds are not sufficient to pay any Contingent Payment or portion thereof otherwise payable
hereunder to El Dorado pursuant to the Escrow Agreement, then an amount equal to the
difference between the Contingent Payment amount and the Escrow Funds will be paid directly
by Purchaser to El Dorado.

(h) Existing NMMSS Contract Termination. In the event that the Existing NMMSS
Contract is terminated by the DOE prior to September 30, 2005 and, in connection therewith,
the Subsidiary receives from the DOE termination payments, then USEC shall pay to El Dorado
cash in an amount equal to the amount, if any, by which the amount of such termination
payments exceeds the NMMSS Losses, but not more than Six Million Dollars ($6,000,000) (the
“Contingent Termination Payment”). Within ten (10) Business Days of the
Subsidiary’s receipt of any such termination payment, Purchaser will promptly deliver to
the Seller Parties an Estimated Payment Notice. Thereafter, the Parties will follow the
resolution and payment procedures set forth in Section 2.8(f) and Section
2.8(g). The maximum Contingent Contract Payment payable pursuant to Section
2.8(c), and the maximum Contingent Sale Payment payable pursuant to Section
2.8(e), if any and as applicable, will be reduced by the amount of any Contingent
Termination Payment made pursuant to this Section 2.8(h).

(i) Expiration of the Covered Period; Other Release of Escrow Funds.

(i) Upon the expiration of the Covered Period, (A) Purchaser will have no
obligation to secure any required consent of the Seller Parties under this
Section 2.8, or to submit a NMMSS Contract Offer or otherwise make any
further effort to secure any NMMSS Follow-On Contract, (B) the Seller Parties will
cease to have any right to any payment pursuant to this Section 2.8 or to
the Escrow Funds, other than with respect to any payment owed but unpaid pursuant
to this Section 2.8, and (C) if the Escrow Funds have not previously been
released to Purchaser, Purchaser and the Seller Parties will promptly cause the
Escrow Funds to be released to Purchaser.

(ii) At any time and at its sole discretion, Purchaser may direct that all
unpaid Escrow Funds, in an amount not to exceed Six Million Dollars ($6,000,000)
less any Contingent Termination Payment, be paid to El Dorado, and the Seller
Parties will cooperate in making such direction under the Escrow Agreement. Upon
El Dorado’s receipt of such Escrow Funds, Purchaser will have no obligation to
secure any required consent of the Seller Parties under this Section 2.8,
or to submit a NMMSS Contract Offer or otherwise make any further effort to secure
any NMMSS Follow-On Contract, and the Seller Parties will have no further right to
any Contingent Payment from Purchaser under this Section 2.8.

(iii) In the event that (A) the Existing NMMSS Contract is terminated by the
DOE prior to September 30, 2005, (B) the Subsidiary receives written notification
from a Requesting Agency that it is not entitled to respond to a NMMSS Contract
Solicitation or the Subsidiary does not qualify to submit a NMMSS Contract Offer
pursuant to a NMMSS Contract Solicitation or (C) the Final NMMSS Award Date
occurs, then, if the Escrow Funds have not previously been released to Purchaser,
upon delivery by Purchaser to the Seller Parties of a written notice indicating
that one of the events specified in this Section 2.8(i)(iii) has occurred,
Purchaser and the Seller Parties will promptly cause the Escrow Funds to be
released to Purchaser.

(iv) Purchaser and the Seller Parties will cause Escrow Funds to be released
to Purchaser in connection with the execution of any NMMSS Follow-On Contract by a
Requesting Agency and any Person other than the Subsidiary (or a Person teaming
with the Subsidiary to secure a NMMSS Follow-On Contract) to the extent that the
balance of Escrow Funds as of the date of such execution exceeds the collective
economic benefit to the Subsidiary were it to enter into one or more Follow-On
Contracts with respect to all NMMSS Program Services not then covered by executed
NMMSS Follow-On Contracts (the “Excess Escrow Funds”). Purchaser and the
Seller Parties will attempt in good faith to agree upon the amount of the Excess
Escrow Funds and cause any such undisputed amount to be promptly released to
Purchaser.

(v) Purchaser and the Seller Parties will cause the Escrow Funds to be
released to Purchaser if, by September 30, 2005, the Subsidiary and a Requesting
Agency have not executed a NMMSS Follow-On Contract and the Existing NMMSS
Contract has not been formally extended beyond September 30, 2005.

(vi) In the event that, as of September 30, 2005, the Subsidiary and a
Requesting Agency have not executed a NMMSS Follow-On Contract and the Existing
NMMSS Contract has been formally extended beyond September 30, 2005 on terms and
conditions that, in the reasonable judgment of Purchaser, collectively result in
an economic benefit to the Subsidiary that is less favorable to the Subsidiary
than if the Existing NMMSS Contract had been formally extended for three (3) years
on terms and conditions consistent with the NMMSS Base Contract Terms, then
Purchaser and the Seller Parties will cause Escrow Funds to be released to
Purchaser in an amount equal to the difference between (A) the collective economic
benefit to the Subsidiary anticipated as of the Closing Date if the Existing NMMSS
Contract had been formally extended for three (3) years on terms and conditions
consistent with the NMMSS Base Contract Terms and (B) the collective economic
benefit to the Subsidiary of the actual extension of the Existing NMMSS Contract
as of September 30, 2005. Purchaser and the Seller Parties will attempt in good
faith to agree upon such amount to be released and cause any such undisputed
amount to be promptly released to Purchaser.

(vii) The release of any Escrow Funds to Purchaser pursuant to Section
2.8(i)(iii), Section 2.8(i)(iv), Section 2.8(i)(v) or
Section 2.8(i)(vi) will not affect Purchaser’s payment obligations
hereunder, other than as provided in the last two sentences of Section
2.8(g).

(j) Maximum Payment. Under no circumstance will the aggregate of all payments
payable to El Dorado pursuant to this Section 2.8 (including, but not limited to,
Contingent Payments) exceed Six Million Dollars ($6,000,000) plus any Escrow Earnings (as
defined below). Notwithstanding anything to the contrary herein, to the extent any
payments made to El Dorado pursuant to this Section 2.8 are made out of the Escrow
Funds (without giving effect to the penultimate sentence of Section 2.8(g)), on the
Termination Date (as defined in the Escrow Agreement), El Dorado will also be entitled to
payment from the Escrow Funds of an amount equal to the product of (i) the aggregate net
interest or income earned on the Escrow Funds during the term of the Escrow Agreement less
any amounts distributed to Purchaser pursuant to the Escrow Agreement to pay Taxes thereon
and (ii) a fraction, the numerator of which is the aggregate amount of Escrow Funds
otherwise paid or then payable to El Dorado and the denominator of which is Six Million
Dollars ($6,000,000) (such product, the “Escrow Earnings”), and Purchaser and the
Seller Parties will cause payment of such Escrow Earnings to be made pursuant to the Escrow
Agreement.

(k) Information. Upon the written request of a Party, the other Parties will
promptly provide such requesting Party with any information reasonably required to verify
the determination of, or otherwise to calculate, any proposed Contingent Payment amount.
In addition, from time to time, Purchaser will provide the Seller Parties with such
additional information regarding the Existing NMMSS Contract, any NMMSS Follow-On Contract
(including the bidding process therefor), NAC Consulting, and the status of any prospective
or pending NAC Consulting Sale or NAC Sale as the Seller Parties may reasonably request.

(l) Good Faith Efforts. The Parties will use their respective good faith
efforts to carry out their respective obligations under this Section 2.8.

	 	8.	 	Section 6.2 of the Agreement is hereby amended by deleting the word “and” at the end
of Section 6.2(a), by replacing the period at the end of Section 6.2(b) with a
semicolon and the word “and,” and by adding a new Section 6.2(c) as follows:

(c) Without limiting the foregoing, to the extent required, the Parties will, as
promptly as practicable, use reasonable efforts to obtain, or cause to be obtained, the
Interim OCI Waiver, and will coordinate and cooperate with the other Parties in obtaining
the Interim OCI Waiver.

9. Section 9.4(c) of the Agreement is hereby amended and restated as follows:

the aggregate Liability of the Seller Parties for all Losses claimed by Purchaser
Indemnitees under Section 6.5(a), Section 9.2(a), Section 9.2(b)
(other than for breach of the Seller Parties’ obligations under Section 6.10(a)) or
Section 9.2(d) will not exceed an amount equal to (i) thirty-five percent (35%) of
the Purchase Price, less (ii) the amount of Escrow Funds, if any, released to Purchaser up
to Six Million Dollars ($6,000,000), plus (iii) any Escrow Earnings or Contingent Payment
paid to the Seller Parties by Purchaser other than from the Escrow Funds; provided,
however, that the aggregate liability of the Seller Parties for all Losses claimed
by Purchaser Indemnitees as a result of any violation of Section 3.2, Section
4.4, or Section 4.5 will not exceed an amount equal to (i) the Purchase Price,
less (ii) the amount of Escrow Funds, if any, released to Purchaser up to Six Million
Dollars ($6,000,000), plus (iii) any Escrow Earnings or Contingent Payment paid to the
Seller Parties by Purchaser other than from the Escrow Funds; and

10. Section 9.4(d) of the Agreement is hereby amended and restated as follows:

the aggregate liability of Purchaser for all Losses claimed by Seller Indemnitees under
Section 9.3(a), Section 9.3(b) (other than for breach of Purchaser’s
obligations under Section 6.10(b) or Section 6.13) or Section
9.3(d) will not exceed an amount equal to (i) thirty-five percent (35%) of the Purchase
Price, less (ii) the amount of Escrow Funds, if any, released to Purchaser up to Six
Million Dollars ($6,000,000), plus (iii) any Escrow Earnings or Contingent Payment paid to
the Seller Parties by Purchaser other than from the Escrow Funds; provided,
however, that the aggregate liability of Purchaser for all Losses claimed by Seller
Indemnitees as a result of any violation of Section 5.2 will not exceed an amount
equal to (i) the Purchase Price, less (ii) the amount of Escrow Funds, if any, released to
Purchaser up to Six Million Dollars ($6,000,000), plus (iii) any Escrow Earnings or
Contingent Payment paid to the Seller Parties by Purchaser other than from the Escrow
Funds.

	 	11.	 	The Agreement is hereby amended by adding Schedule 2.8(b) in the form set forth in
Attachment 1 hereto, and Schedule 2.8(c)(ii) in the form attached as Attachment 2
hereto, to the Schedules to the Purchase Agreement.

	 	12.	 	Notwithstanding anything in this Amendment or the Purchase Agreement to the contrary, if any
Party refuses or fails to perform its obligations under this Amendment or the Escrow
Agreement, in addition to any other remedy which may be available to the other Party at law or
in equity, such other Party will be entitled to seek specific performance and injunctive
relief, without posting bond or other security, and without the necessity of proving actual or
threatened damages, which remedy such Party will be entitled to seek in any court of competent
jurisdiction. Further, a Party shall be reimbursed by the other Parties for its reasonable
attorneys’ fees incurred in connection with successfully enforcing its rights under this
Amendment and/or under the Escrow Agreement.

	 	13.	 	Except where inconsistent with the express terms of this Amendment, all provisions of the
Agreement as originally entered into will remain in full force and effect.

	 	14.	 	This Amendment (including the Attachments hereto), taken together with the Agreement and the
Escrow Agreement, constitutes the entire and complete agreement between the Parties with
respect to the subject matter hereof and supercedes all prior agreements, commitments,
communications, representations and understandings, both written and oral, between the Parties
with respect to the subject matter hereof.

	 	15.	 	This Amendment will be governed in all respects, including as to validity, interpretation and
effect, by the internal laws of the State of Delaware, without giving effect to the conflict
of laws rules thereof.

	 	16.	 	This Amendment may be executed in several counterparts and delivered in original form or by
electronic facsimile, each of which will be deemed an original and all of which will together
constitute one and the same instrument.

1

IN WITNESS WHEREOF, the Parties have duly executed this Amendment as of the date first above
written.

PINNACLE WEST CAPITAL CORPORATION

By:

/s/ Donald E. Brandt

	 	 	 	Name: Donald E. Brandt

Title: Executive Vice President and

Chief Financial Officer

EL DORADO INVESTMENT COMPANY

By:

/s/ Donald E. Brandt

	 	 	 	Name: Donald E. Brandt

Title: Treasurer

USEC INC.

By:

/s/ Ellen C. Wolf

	 	 	 	Name: Ellen C. Wolf

Title: Senior Vice President and

Chief Financial Officer

2ROCKY MOUNTAIN MINERAL LAW FOUNDATION

                           (Model Form 5A LLC / 1998)

                       Exploration, Development and Mining
                            Limited Liability Company

                         Part I     Members'  Agreement

                                     between
                Nevada Gold Exploration Solutions, LLC and Battle
                          Mountain Gold Exploration Inc

                          Part II Operating Agreement
                                       of
                                Pediment Gold LLC

<PAGE>

                                TABLE OF CONTENTS

PART  I        MEMBERS' AGREEMENT--------------------------------------------13

ARTICLE  I     DEFINITIONS  AND  CROSS-REFERENCES                            13

1.1     Definitions----------------------------------------------------------13
1.2     Cross  References----------------------------------------------------13

ARTICLE  II     CERTAIN  MATTERS  CONCERNING  CONTRIBUTIONS  BY  MEMBERS     14

2.1     Certain  Obligations  of  NGXS  During  Period  of  Its  Initial
        Contributions--------------------------------------------------------14
2.2     Additional  Contributions--------------------------------------------14
2.3     Emergency  or  Unexpected  Expenditures------------------------------14

ARTICLE  III  REPRESENTATIONS AND  WARRANTIES; TITLE  TO ASSETS; INDEMNITIES 15

3.1     Representations  and  Warranties  of  the  Members-------------------15
3.2     Representations  and  Warranties  of  NGXS---------------------------15
3.3     Disclosures----------------------------------------------------------17
3.4     Loss  of  Title------------------------------------------------------17
3.5     Limitation  of  Liability--------------------------------------------18
3.6     Indemnification------------------------------------------------------18

ARTICLE  IV     INTERESTS  OF  MEMBERS                                       19

4.1     Continuing  Liabilities Upon Adjustments of Ownership Interests      19
4.2     Continuing  Obligations  and  Environmental  Liabilities-------------19
4.3     Grant  of  Lien  and  Security  Interest-----------------------------20
4.4     Subordination  of  Interests-----------------------------------------20

ARTICLE  V     RELATIONSHIP  OF  THE  MEMBERS                                20

5.1     Transfer  or  Termination  of  Rights--------------------------------20
5.2     Abandonment  and  Surrender  of  Properties--------------------------20
5.3     Supplemental  Business  Arrangement----------------------------------21
5.4     Implied  Covenants---------------------------------------------------21
5.5     No  Third  Party  Beneficiary  Rights--------------------------------21

ARTICLE  VI     ACQUISITIONS  WITHIN  AREA  OF  INTEREST                     21

6.1     General--------------------------------------------------------------21
6.2     Notice  to  Non-Acquiring  Member------------------------------------21
6.3     Option  Exercised----------------------------------------------------22
6.4     Option  Not  Exercised-----------------------------------------------22
6.5     Non-Compete  Covenants-----------------------------------------------22

<PAGE>

ARTICLE  VII     DISPUTES                                                    22

7.1     Governing  Law-------------------------------------------------------22
7.2     Forum  Selection-----------------------------------------------------22
7.3     Arbitration----------------------------------------------------------23
7.4     Dispute  Resolution--------------------------------------------------23

ARTICLE  VIII     GENERAL  PROVISIONS                                        23

8.1     Notices--------------------------------------------------------------23
8.2     Gender---------------------------------------------------------------24
8.3     Currency-------------------------------------------------------------24
8.4     Headings-------------------------------------------------------------24
8.5     Waiver---------------------------------------------------------------24
8.6     Modification---------------------------------------------------------24
8.7     Force  Majeure-------------------------------------------------------24
8.8     Rule  Against  Perpetuities------------------------------------------25
8.9     Further  Assurances--------------------------------------------------25
8.10     Entire  Agreement;  Successors  and  Assigns------------------------25
8.11     Counterparts--------------------------------------------------------25

PART  II     OPERATING  AGREEMENT                                            28

ARTICLE  I     DEFINITIONS  AND  CROSS-REFERENCES                            28

1.1     Definitions----------------------------------------------------------28
1.2     Cross  References----------------------------------------------------28

ARTICLE  II     NAME,  PURPOSES  AND  TERM                                   28

2.1     Formation------------------------------------------------------------28
2.2     Name-----------------------------------------------------------------29
2.3     Purposes-------------------------------------------------------------29
2.4     Limitation-----------------------------------------------------------29
2.5     Term-----------------------------------------------------------------29
2.6     Resident  Agent;  Offices--------------------------------------------29

ARTICLE  III     CONTRIBUTIONS  BY  MEMBERS                                  30

3.1     Members'  Initial  Contributions-------------------------------------30
3.2     Failure  to  Make  Initial  Contribution-----------------------------31
3.3     Record  Title--------------------------------------------------------31

ARTICLE  IV     INTERESTS  OF  MEMBERS                                       31

4.1     Initial  Ownership  Interests----------------------------------------31
4.2     Changes  in  Ownership  Interests------------------------------------31
4.3     Admission  of  New  Members------------------------------------------32
4.4     Elimination  of  Minority  Interest----------------------------------32
4.5     Documentation  of  Adjustments  to  Ownership  Interests-------------33

<PAGE>

ARTICLE  V     RELATIONSHIP  OF  THE  MEMBERS                                33

5.1     Limitation  on  Authority  of  Members-------------------------------33
5.2     Federal  Tax  Elections  and  Allocations----------------------------33
5.3     State  Income  Tax---------------------------------------------------34
5.4     Tax  Returns---------------------------------------------------------34
5.5     Other  Business  Opportunities---------------------------------------34
5.6     Waiver  of  Rights  to  Partition  or  Other Division of Assets------34
5.7     Bankruptcy  of  a  Member--------------------------------------------34
5.8     Implied  Covenants---------------------------------------------------34
5.9     No  Certificate------------------------------------------------------34
5.10    Disposition  of  Production------------------------------------------34
5.11    Limitation  of  Liability--------------------------------------------34
5.12    Indemnities----------------------------------------------------------35
5.13    No  Third  Party  Beneficiary  Rights--------------------------------35

ARTICLE  VI     REPRESENTATIONS  AND  WARRANTIES                             35

ARTICLE  VII     TRANSFER  OF  INTEREST;  PREEMPTIVE  RIGHT                  35

7.1     General--------------------------------------------------------------35
7.2     Limitations  on  Free  Transferability-------------------------------35
7.3     Preemptive  Right----------------------------------------------------37

ARTICLE  VIII     MANAGEMENT  COMMITTEE                                      38

8.1     Organization  and  Composition---------------------------------------38
8.2     Decisions------------------------------------------------------------38
8.3     Meetings-------------------------------------------------------------38
8.4     Action  Without  Meeting  in  Person---------------------------------39
8.5     Matters  Requiring  Approval-----------------------------------------39

ARTICLE  IX     MANAGER                                                      39

9.1     Appointment----------------------------------------------------------39
9.2     Powers  and  Duties  of  Manager-------------------------------------39
9.3     Standard  of  Care---------------------------------------------------44
9.4     Resignation;  Deemed  Offer  to  Resign------------------------------44
9.5     Payments  To  Manager------------------------------------------------45
9.6     Transactions  With  Affiliates---------------------------------------46
9.7     Activities  During  Deadlock-----------------------------------------46

ARTICLE  X     PROGRAMS  AND  BUDGETS                                        46

10.1     Initial  Program  and  Budget---------------------------------------46
10.2     Operations  Pursuant  to  Programs  and  Budgets--------------------46
10.3     Presentation  of  Programs  and  Budgets----------------------------46
10.4     Review  and  Adoption  of  Proposed  Programs  and  Budgets---------47
10.4     Review  and  Adoption  of  Proposed  Programs  and  Budgets---------47
10.6     Recalculation or Restoration of Reduced Interest Based on Actual
          Expenditures-------------------------------------------------------48

10.7     Pre-Feasibility  Study  Program  and  Budgets-----------------------49
10.8     Completion of Pre-Feasibility Studies and  Selection  of  Approved
         Alternatives--------------------------------------------------------50
10.9     Programs  and  Budgets  for  Feasibility  Study---------------------52
10.10    Development  Programs  and  Budgets;  Project  Financing------------52
10.11    Expansion  or  Modification  Programs  and  Budgets-----------------53
10.12    Budget  Overruns;  Program  Changes---------------------------------53
10.13    Supplemental  Business  Arrangement---------------------------------53

<PAGE>

ARTICLE  XI     ACCOUNTS  AND  SETTLEMENTS                                   53

11.1     Monthly  Statements-------------------------------------------------53
11.2     Cash  Calls---------------------------------------------------------53
11.3     Failure  to  Meet  Cash  Calls--------------------------------------54
11.4     Cover  Payment------------------------------------------------------54
11.5     Remedies------------------------------------------------------------54
11.6     Audits--------------------------------------------------------------57

ARTICLE  XII     PROPERTIES                                                  58

12.1     Royalties,  Production  Taxes  and Other  Payments  Based  on
         Production----------------------------------------------------------58
12.2     Abandonment  and  Surrender-----------------------------------------58

ARTICLE  XIII     CONFIDENTIALITY,  OWNERSHIP, USE AND DISCLOSURE OF
                  INFORMATION                                                58

13.1     Business  Information-----------------------------------------------58
13.2     Member  Information-------------------------------------------------58
13.3     Permitted  Disclosure  of  Confidential  Business  Information------59
13.4     Disclosure  Required  By  Law---------------------------------------59
13.5     Public  Announcements-----------------------------------------------60

ARTICLE  XIV     RESIGNATION  AND  DISSOLUTION                               60

14.1     Events  of  Dissolution---------------------------------------------60
14.2     Resignation---------------------------------------------------------60
14.3     Disposition  of  Assets  on  Dissolution----------------------------61
14.4     Filing  of  Certificate  of  Cancellation---------------------------61
14.5     Right  to  Data  After  Dissolution---------------------------------61
14.6     Continuing  Authority-----------------------------------------------61

ARTICLE  XV     DISPUTES                                                     61

15.1     Governing  Law------------------------------------------------------61
15.2     Forum  Selection----------------------------------------------------62
15.3     Arbitration---------------------------------------------------------62
15.4     Dispute  Resolution-------------------------------------------------62

ARTICLE  XVI     GENERAL  PROVISIONS                                         62

16.1     Notices-------------------------------------------------------------62
16.2     Gender--------------------------------------------------------------63
16.3     Currency------------------------------------------------------------63
16.4     Headings------------------------------------------------------------63
16.5     Waiver--------------------------------------------------------------63
16.6     Modification--------------------------------------------------------63
16.7     Force  Majeure------------------------------------------------------63
16.8     Rule  Against  Perpetuities-----------------------------------------64
16.9     Further  Assurances-------------------------------------------------64
16.10    Entire  Agreement;  Successors  and  Assigns------------------------64
16.11    Counterparts--------------------------------------------------------64

<PAGE>

EXHIBIT  A     ASSETS  AND  AREA  OF  INTEREST                               66

1.1     Properties  and  Title  Exceptions-----------------------------------66
1.2     Area  of  Interest---------------------------------------------------66

EXHIBIT  B     ACCOUNTING  PROCEDURES                                        67

ARTICLE  I     GENERAL  PROVISIONS                                           67

1.1     General  Accounting  Records-----------------------------------------67
1.2     Cash  Management  Accounts-------------------------------------------67
1.3     Statements  and  Billings--------------------------------------------68

ARTICLE  II     CHARGES  TO  BUSINESS  ACCOUNT                               68

2.1     Property  Acquisition  Costs,  Rentals,  Royalties  and  Other
        Payments-------------------------------------------------------------68
2.2     Labor  and  Employee  Benefits---------------------------------------68
2.3     Materials,  Equipment  and  Supplies---------------------------------69
2.4     Equipment  and  Facilities  Furnished  by  Manager-------------------69
2.5     Transportation-------------------------------------------------------69
2.6     Contract  Services  and  Utilities-----------------------------------69
2.7     Insurance  Premiums--------------------------------------------------69
2.8     Damages  and  Losses-------------------------------------------------69
2.9     Legal  and  Regulatory  Expense--------------------------------------70
2.10    Audit----------------------------------------------------------------70
2.11    Taxes----------------------------------------------------------------70
2.12    Field  Supervision  and  Camp  Expenses------------------------------70
2.13    Administrative  Charge-----------------------------------------------70
2.14    Environmental  Compliance  Fund--------------------------------------72
2.15    Other  Expenditures--------------------------------------------------72

ARTICLE  III     BASIS  OF  CHARGES  TO  BUSINESS  ACCOUNT                   72

3.1     Purchases------------------------------------------------------------72
3.2     Material  Furnished  by  a  Member  for  Use  in  the  Business------72
3.3     Premium  Prices------------------------------------------------------73
3.4     Warranty  of  Material  Furnished  by  the  Manager  or Members------73

ARTICLE  IV     DISPOSAL  OF  MATERIAL                                       73

4.1     Disposition  Generally-----------------------------------------------73
4.2     Distribution  to  Members--------------------------------------------74
4.3     Sales----------------------------------------------------------------74

ARTICLE  V     INVENTORIES                                                   74

5.1     Periodic  Inventories,  Notice  and  Representations-----------------74
5.2     Reconciliation  and  Adjustment  of  Inventories---------------------74

<PAGE>

EXHIBIT  C     TAX  MATTERS                                                  75

ARTICLE  I     EFFECT  OF  THIS  EXHIBIT                                     75

ARTICLE  II    TAX  MATTERS  PARTNER                                         75

2.1     Designation  of  Tax  Matters  Partner-------------------------------75
2.2     Notice---------------------------------------------------------------75
2.3     Inconsistent  Treatment  of  Tax  Item-------------------------------76
2.4     Extensions  of  Limitation  Periods----------------------------------76
2.5     Requests  for  Administrative  Adjustments---------------------------76
2.6     Judicial  Proceedings------------------------------------------------76
2.7     Settlements----------------------------------------------------------76
2.8     Fees  and  Expenses--------------------------------------------------76
2.9     Survival-------------------------------------------------------------77

ARTICLE  III     TAX  ELECTIONS  AND  ALLOCATIONS                            77

3.1     Company  Election----------------------------------------------------77
3.2     Tax  Elections-------------------------------------------------------77
3.3     Allocations  to  Members---------------------------------------------78
3.4     Regulatory  Allocations----------------------------------------------80
3.5     Curative  Allocations------------------------------------------------81
3.6     Tax  Allocations-----------------------------------------------------81

ARTICLE  IV     CAPITAL  ACCOUNTS;  LIQUIDATION                              82

4.1     Capital  Accounts----------------------------------------------------82
4.2     Liquidation----------------------------------------------------------84
4.3     Deemed  Terminations-------------------------------------------------85

ARTICLE  V     SALE  OR  ASSIGNMENT                                          85

EXHIBIT  D     DEFINITIONS                                                   86

EXHIBIT  E     NET  SMELTER  ROYALTY  CALCULATION                            92

ARTICLE  I     MEANING  OF  TERMS                                            92

1.1     Commercial  Production-----------------------------------------------92
1.2     Grantee--------------------------------------------------------------92
1.3     Grantor--------------------------------------------------------------92
1.4     Net  Smelter  Return-------------------------------------------------93
1.5     Ore------------------------------------------------------------------93
1.6     Production-----------------------------------------------------------93

ARTICLE  II     TERM                                                         93

<PAGE>

ARTICLE  III     PRODUCTION  ROYALTY                                         94

3.1     Calculation  of  NSR-------------------------------------------------94
3.2     Insurance  Proceeds--------------------------------------------------94
3.3     Time  and  Manner;  In-Kind  or  Cash  Payment-----------------------94
3.4     Payment  Accounting;  Interim  Settlements;  Late  Charges-----------95
3.5     Hedging  Transactions;  Futures,  Options  and  Other  Trading-------95
3.6     Commingling----------------------------------------------------------95

ARTICLE  IV     BOOKS;  RECORDS;  INSPECTIONS;  CONFIDENTIALITY              96

4.1     Books----------------------------------------------------------------96
4.2     Reports--------------------------------------------------------------96
4.3     Inspections----------------------------------------------------------96
4.4     Investor  Tours------------------------------------------------------96
4.5     Confidentiality------------------------------------------------------97

ARTICLE  V     COMPLIANCE WITH LAWS, RECLAMATION, ENVIRONMENTAL
               IOBLIGATIONS AND INDEMNITIES----------------------------------97

5.1     Compliance  with  Laws-----------------------------------------------97
5.2     Reclamation,  Environmental  Obligations  and  Indemnities-----------97

ARTICLE  VI     STOCKPILING                                                  98

ARTICLE  VII    TAILINGS  AND  RESIDUE                                       98

ARTICLE  VIII   TITLE  MAINTENANCE, MAINTENANCE  AND TAXES,  ABANDONMENT,;
                CONVERSION  AND  EXCHANGE  RIGHTS                            98

8.1     Title  Maintenance  and  Taxes---------------------------------------98
8.2     Assessment  Work-----------------------------------------------------98
8.3     Abandonment----------------------------------------------------------99
8.4     Conversion  and  Exchange  Rights------------------------------------99

ARTICLE  IX     INSURANCE                                                    99

9.1     Workman's  Compensation  Insurance-----------------------------------99
9.2     General  Liability---------------------------------------------------99

ARTICLE  X     GENERAL  PROVISIONS                                          100

10.1     Arbitration--------------------------------------------------------100
10.2     Conflict-----------------------------------------------------------100
10.3     Additional  Documents----------------------------------------------100
10.4     Covenant  Running  With  Land;  Binding  Effect--------------------100
10.5     No  Partnership----------------------------------------------------100
10.6     Governing  Law-----------------------------------------------------100
10.7     Attorney  Fees-----------------------------------------------------100
10.8     Notices------------------------------------------------------------100
10.9     Time  of  Essence--------------------------------------------------100
10.10    Entire  Agreement--------------------------------------------------100

<PAGE>

EXHIBIT  F     INSURANCE                                                    101

EXHIBIT  G     INITIAL  PROGRAM  AND  BUDGET                                102

EXHIBIT  H     PREEMPTIVE  RIGHTS                                           103

1.1     Preemptive  Rights--------------------------------------------------103
1.2     Exceptions  to  Preemptive  Right-----------------------------------103

EXHIBIT  I     SCHEDULE OF BMGE INITIAL CONTRIBUTIONS, OWNERSHIP INTEREST
               CALCULATIONS  AND  FAILURE  TO  MAKE CONTRIBUTIONS
               DILUTION SCHEDULE                                            105

1.1  Field  Examination  Stage----------------------------------------------105
1.2  Land  Acquisition  Stage-----------------------------------------------105
1.3  Dilution---------------------------------------------------------------105
1.4  Water  Plume  Definition  Stage----------------------------------------106
1.5  Water  Plume  Drilling  Stage------------------------------------------106
1.6  Discovery  Drilling  Stage---------------------------------------------106
1.7  Escrowed  Funds  Procedure---------------------------------------------106
1.8  Failure  to  Make  Contributions---------------------------------------107
1.9  Ownership  Interest  at  Completion  of  Program-----------------------107
1.10 Properties Identified, but Not Acquired by NGXS Program and Budget     107
1.11 Formation  of  PGL-----------------------------------------------------108
1.12 Right  to  Earn  Additional  Interest----------------------------------108
1.13 Non-Refundable  Pre-Payment  of  Initial  Contribution-----------------108

EXHIBIT  J     SCHEDULE  OF  BMGE  STOCK  GRANTED  TO  NGXS                 109

1.1  Delivery  Date  of  BMGE  Stock----------------------------------------109
1.2  Restrictions  on  BMGE  Stock------------------------------------------109
1.3  Representations  and  Warranties---------------------------------------109

EXHIBIT  K     NET  PROFITS  CALCULATION                                    110

ARTICLE  I     MEANING  OF  TERMS                                           110

1.1     Commercial  Production----------------------------------------------110
1.2     Grantee-------------------------------------------------------------110
1.3     Grantor-------------------------------------------------------------110
1.4     Net  Profit---------------------------------------------------------111
1.5     Ore-----------------------------------------------------------------112
1.6     Production----------------------------------------------------------112

ARTICLE  II     TERM                                                        112

<PAGE>

ARTICLE  III     PRODUCTION  ROYALTY                                        113

3.1     Calculation  of  NPI------------------------------------------------113
3.2     Insurance  Proceeds-------------------------------------------------113
3.3     Time  and  Manner  of  Payment  of  NPI-----------------------------113
3.4     Payment  Accounting;  Interim  Settlements;  Late  Charges----------113
3.5     Hedging  Transactions;  Futures,  Options  and  Other  Trading------114
3.6     Commingling---------------------------------------------------------114

ARTICLE  IV     BOOKS;  RECORDS;  INSPECTIONS;  CONFIDENTIALITY             114

4.1     Books---------------------------------------------------------------114
4.2     Reports-------------------------------------------------------------115
4.3     Inspections---------------------------------------------------------115
4.4     Investor  Tours-----------------------------------------------------115
4.5     Confidentiality-----------------------------------------------------115

ARTICLE  V     COMPLIANCE WITH LAWS; RECLAMATION, ENVIRONMENTAL
               OBLIGATIONS, AND INDEMNITIES                                 116

5.1     Compliance  with  Laws----------------------------------------------116
5.2     Reclamation,  Environmental  Obligations,  and  Indemnities---------116

ARTICLE  VI     STOCKPILING                                                 116

ARTICLE  VII    TAILINGS  AND  RESIDUES                                     117

ARTICLE  VIII   TITLE MAINTENANCE AND TAXES; ASSESSMENT WORK; ABANDONMENT;
                CONVERSION  AND  EXCHANGE  RIGHTS                           117

8.1     Title  Maintenance  and  Taxes--------------------------------------117
8.2     Assessment  Work----------------------------------------------------117
8.3     Abandonment---------------------------------------------------------117
8.4     Conversion  and  Exchange  Rights-----------------------------------117

ARTICLE  IX     INSURANCE                                                   118

9.1     Workman's  Compensation  Insurance----------------------------------118
9.2     General  Liability--------------------------------------------------118

ARTICLE  X      GENERAL  PROVISIONS                                         118

10.1     Arbitration--------------------------------------------------------118
10.2     Conflict-----------------------------------------------------------118
10.3     Additional  Documents----------------------------------------------119
10.4     Covenant  Running  With  Land;  Binding  Effect--------------------119
10.5     No  Partnership----------------------------------------------------119
10.6     Governing  Law-----------------------------------------------------119
10.7     Attorney  Fees-----------------------------------------------------119
10.8     Notices------------------------------------------------------------119
10.9     Time  of  Essence--------------------------------------------------119
10.10    Entire  Agreement--------------------------------------------------119

<PAGE>

EXHIBIT  L     GROSS  BULLION  ROYALTY  CALCULATION                         120

ARTICLE  I     MEANING  OF  TERMS.                                          120

1.1     Commercial  Production----------------------------------------------120
1.2     Grantee-------------------------------------------------------------120
1.3     Grantor-------------------------------------------------------------120
1.4     Gross  Bullion  Royalty---------------------------------------------121
1.5     Ore-----------------------------------------------------------------121
1.6     Production----------------------------------------------------------121

ARTICLE  II     TERM                                                        121

ARTICLE  III     PRODUCTION  ROYALTY                                        122

3.1     Calculation  of  GBR------------------------------------------------122
3.2     Insurance  Proceeds-------------------------------------------------122
3.3     Time  and  Manner;  In-Kind  or  Cash  Payment----------------------122
3.4     Payment  Accounting;  Interim  Settlements;  Late  Charges----------123
3.5     Hedging  Transactions;  Futures,  Options  and  Other  Trading------123
3.6     Commingling---------------------------------------------------------123

ARTICLE  IV     BOOKS;  RECORDS;  INSPECTIONS;  CONFIDENTIALITY             124

4.1     Books---------------------------------------------------------------124
4.2     Reports-------------------------------------------------------------124
4.3     Inspections---------------------------------------------------------124
4.4     Investor  Tours-----------------------------------------------------124
4.5     Confidentiality-----------------------------------------------------125

ARTICLE  V     COMPLIANCE WITH LAWS; RECLAMATION, ENVIRONMENTAL
               OBLIGATIONS, AND INDEMNITIES                                 125

5.1     Compliance  with  Laws----------------------------------------------125
5.2     Reclamation,  Environmental  Obligations,  and  Indemnities---------125

ARTICLE  VI     STOCKPILING                                                 126

ARTICLE  VII    TAILINGS  AND  RESIDUES                                     126

ARTICLE  VIII   TITLE  MAINTENANCE AND TAXES; ASSESSMENT WORK; ABANDONMENT;
                CONVERSION  AND  EXCHANGE  RIGHTS                           126

8.1     Title  Maintenance  and  Taxes--------------------------------------126
8.2     Assessment  Work----------------------------------------------------126
8.3     Abandonment---------------------------------------------------------127
8.4     Conversion  and  Exchange  Rights-----------------------------------127

ARTICLE  IX     INSURANCE                                                   127

9.1     Workman's  Compensation  Insurance----------------------------------127
9.2     General  Liability--------------------------------------------------127

ARTICLE  X      GENERAL  PROVISIONS                                         128

10.1     Arbitration--------------------------------------------------------128
10.2     Conflict-----------------------------------------------------------128
10.3     Additional  Documents----------------------------------------------128
10.4     Covenant  Running  With  Land;  Binding  Effect--------------------128
10.5     No  Partnership----------------------------------------------------128
10.6     Governing  Law-----------------------------------------------------128
10.7     Attorney  Fees-----------------------------------------------------128
10.8     Notices------------------------------------------------------------128
10.9     Time  of  Essence--------------------------------------------------128
10.10    Entire  Agreement---------------------------------- ---------------128

<PAGE>

                            PART I MEMBERS' AGREEMENT

                                OF THE MEMBERS OF

                                PEDIMENT GOLD LLC

                       A NEVADA LIMITED LIABILITY COMPANY

     This  Members'  Agreement  (the  "Agreement")  is made as of June    , 2004
                                                                      ----
("Effective  Date")  between  Battle  Mountain  Gold Exploration, Inc., a Nevada
corporation  ("BMGE"),  the  address  of  which  is 1 East Liberty Street, Sixth
Floor,  Reno, Nevada, 89504 and Nevada Gold Exploration Solutions, LLC, a Nevada
limited  liability  company  ("NGXS"),  the  address  of which is 101 Brownstone
Drive,  Reno,  Nevada,  89512.

               RECITAL OF MEMBERS' AGREEMENT OF PEDIMENT GOLD LLC

A.   NGXS  owns  or  controls  certain  "INTELLECTUAL  PROPERTIES"  in  Nevada,
                                         -----------------------
     which  are  described  in  EXHIBIT  A.
                                ----------
B.   BMGE wishes to participate with NGXS in the exploration, evaluation and, if
     justified,  the  development  and  mining  of  mineral resources within the
     Properties.
C.   NGXS  and  BMGE  wish to form and operate a limited liability company under
     the  Nevada  Limited  Liability Company Act, under Chapter 86 of the Nevada
     Revised  Statutes  (the  "ACT"),  to  own  the  Properties  and conduct the
                               ---
     operations  thereon  contemplated  by RECITAL OF THE OPERATING AGREEMENT OF
                                           -------------------------------------
     PEDIMENT  GOLD  LLC.  The  name  of  the limited liability company shall be
     -------------------
     Pediment Gold LLC ("PGL") and its affairs shall be governed by that certain
     Operating  Agreement ("OA")  of  Pediment  Gold LLC, dated as of June     ,
                                                                           ----
     2004.

     NOW  THEREFORE,  in consideration of the covenants and conditions contained
herein,  NGXS  and  BMGE  agree  as  follows:

                 ARTICLE I     DEFINITIONS AND CROSS-REFERENCES

     1.1  DEFINITIONS.  The  terms defined herein shall have the defined meaning
wherever  used in this Agreement. Capitalized terms used but not defined in this
Agreement  shall  have  the  meanings  given  thereto  in  the  OA.

     1.2  CROSS  REFERENCES.  References  to exhibits are to Exhibits of the OA.
References  to  "Articles,"  "Sections"  and  "Subsections"  refer  to Articles,
Sections  and  Subsections  of  this  Agreement  unless  indicated  otherwise.
References  to  "Paragraphs"  and  "Subparagraphs"  refer  to  paragraphs  and
subparagraphs  of  the  referenced  Exhibits.

<PAGE>

       ARTICLE II     CERTAIN MATTERS CONCERNING CONTRIBUTIONS BY MEMBERS

     2.1  CERTAIN  OBLIGATIONS  OF  BMGE  DURING PERIOD OF ITS INITIAL
          CONTRIBUTIONS.

     (a)  During  the  period  when NGXS conducts Operations pursuant to SECTION
                                                                         -------
          3.1(C)  of  the  OA,  BMGE  shall  provide  for  accrual of reasonably
          -----
          anticipated  Environmental Compliance expenses, which shall constitute
          Qualifying  Expenses, and upon completion of its Initial Contribution,
          BMGE  shall  transfer  any  accrued  but  unexpended  amounts  to  the
          Environmental  Compliance  Fund  established  under  PARAGRAPH 2.14 OF
                                                               -----------------
          EXHIBIT  B.
          -----------

     (b)  In  the  event of resignation by BMGE pursuant to SUBSECTION 3.2(A) of
                                                            ----------------
          the  OA,  BMGE shall indemnify NGXS for any costs or losses related to
          contractual obligations of the Company to third parties for Operations
          existing  at  the  time  of  such resignation. In addition, BMGE shall
          indemnify  NGXS  for  BMGE's  share  of  liabilities  to third parties
          (regardless  of  whether  such liabilities accrue before or after such
          resignation),   including   Environmental    Liabilities,   Continuing
          Obligations  and  Environmental  Compliance,  arising  prior to BMGE's
          resignation  from  Operations  conducted by BMGE, which responsibility
          shall  be  based  on  BMGE's  initial  Ownership  Interest.

     (c)  In  the  event of resignation by BMGE pursuant to SUBSECTION 3.2(B) of
                                                            ----------------
          the OA, BMGE shall be obligated to fund Operations up to the amount of
          BMGE's  agreed  contribution to the then currently adopted Program and
          Budget  Stage. In addition, BMGE shall indemnify NGXS for BMGE's share
          of  liabilities  to   third  parties   (regardless  of   whether  such
          liabilities  accrue  before  or  after  such  resignation),  including
          Environmental  Liabilities,  Continuing  Obligations and Environmental
          Compliance,  arising  out  of  Operations  conducted by BMGE after the
          Effective  Date  and  prior  to  its  resignation. BMGE shall fund and
          satisfy  one  hundred percent (100%) of such liabilities only until it
          has contributed the full amount of its agreed contribution to the then
          currently  adopted  Program  and  Budget  Stage.
     (d)  BMGE  shall deliver the shares of BMGE described in Exhibit J attached
                                                              ---------
          to  the  OA.

     2.2 ADDITIONAL CONTRIBUTIONS. At such time as BMGE has contributed the full
amount  of  its  Initial  Contribution,  the  Members,  subject  to any election
permitted  by  SUBSECTION  10.5(A)  of  the OA, shall be obligated to contribute
               -------------------
funds to the Company to fund adopted Programs and Budgets in proportion to their
respective  Ownership  Interests  Except  as  otherwise  provided  by EXHIBIT I.
                                                                      ----------

     2.3 EMERGENCY OR UNEXPECTED EXPENDITURES. In case of emergency, the Manager
may  take  any reasonable action it deems necessary to protect life or property,
to  protect  the  Assets or to comply with Laws. The Manager may make reasonable
expenditures  on behalf of the Members for unexpected events that are beyond its
reasonable control and that do not result from a breach by it of its standard of
care.  The  Manager  shall  promptly  notify  the  Members  of  the emergency or
unexpected  expenditure,  and  the Manager shall be reimbursed for all resulting
costs  by  the  Members  in  proportion to their respective Ownership Interests.

<PAGE>

                  ARTICLE III  REPRESENTATIONS AND WARRANTIES;
                                TITLE TO ASSETS;
                                   INDEMNITIES

     3.1  REPRESENTATIONS  AND  WARRANTIES  OF  THE MEMBERS. As of the Effective
Date,  each  Member  warrants  and  represents  to  the  other  that:

     (a)  BMGE  is  a  corporation  and NGXS is a limited liability company both
          duly  organized  and in good standing in its state of formation and is
          qualified to do business and is in good standing in those states where
          necessary  in  order  to  carry  out  the  purposes of this Agreement;
     (b)  it  has  the capacity to enter into and perform this Agreement and all
          transactions  contemplated  herein  and  that  all corporate, board of
          directors,  shareholder,  surface  and  mineral  rights owner, lessor,
          lessee  and  other  actions  and  consents required to authorize it to
          enter  into  and  perform  this  Agreement  have  been properly taken;
     (c)  it will not breach any other agreement or arrangement by entering into
          or  performing  this  Agreement;
     (d)  it  is  not  subject  to  any  governmental  order,  judgment, decree,
          debarment,  sanction  or  Laws  that  would preclude the permitting or
          implementation  of  Operations  under  this  Agreement;  and
     (e)  this Agreement has been duly executed and delivered by it and is valid
          and  binding  upon  it  in  accordance  with  its  terms.

     3.2  REPRESENTATIONS AND WARRANTIES OF NGXS. As of the Effective Date, NGXS
makes  the  following  representations  and  warranties  to  BMGE:

     (a)  With respect to those Properties NGXS owns in fee simple, if any, NGXS
          is  in exclusive possession of and owns such Properties free and clear
          of  all  Encumbrances  or  defects  in title except those specifically
          identified  in  PARAGRAPH  1.1  OF  EXHIBIT  A.
                          -------------------------------
     (b)  With respect to those Properties in which NGXS holds an interest under
          leases or other contracts: (i) NGXS is in exclusive possession of such
          Properties;(ii)  NGXS has not received any notice of default of any of
          the  terms or provisions of such leases or other contracts; (iii) NGXS
          has  the  authority  under  such  leases or other contracts to perform
          fully  its obligations under this Agreement; (iv) to NGXS's knowledge,
          such  leases  and  other contracts are valid and are in good standing;
          (v)  NGXS  has no knowledge of any act or omission or any condition on
          the  Properties  which  could  be considered or construed as a default
          under  any such lease or other contract; and (vi) to NGXS's knowledge,
          such  Properties  are free and clear of all Encumbrances or defects in
          title  except  for  those  specifically identified in PARAGRAPH 1.1 OF
                                                               -----------------
          EXHIBIT  A.
          -----------

<PAGE>

     (c)  NGXS  has  delivered  to  or made available for inspection by BMGE all
          Existing  Data  in  its  possession  or  control, and true and correct
          copies  of  all  leases or other contracts relating to the Properties.

     (d)  With respect to unpatented mining claims and millsites located by NGXS
          that  are  included  within  the  Properties,  except  as  provided in
          PARAGRAPH  1.1  OF EXHIBIT A and subject to the paramount title of the
          ----------------------------
          United States: (i) the unpatented mining claims were properly laid out
          and  monumented;  (ii)  all  required location and validation work was
          properly  performed;  (iii)  location  notices  and  certificates were
          properly  recorded  and  filed with appropriate governmental agencies;
          (iv) all assessment work required to hold the unpatented mining claims
          has  been  performed  and  all  Governmental  Fees have been paid in a
          manner  consistent  with  that  required  of  the  Manager pursuant to
          SUBSECTION  9.2(K) of the OA in order to maintain those claims through
          -----------------
          the  assessment  year  ending September 1, 2004; (v) all affidavits of
          assessment  work,  evidence of payment of Governmental Fees, and other
          filings  required  to  maintain  the claims in good standing have been
          properly  and  timely  recorded or filed with appropriate governmental
          agencies;  (vi)  the  claims  are  free  and  clear of Encumbrances or
          defects  in  title;  and  (vii)  NGXS  has no knowledge of conflicting
          mining claims. Nothing in this Subsection, however, shall be deemed to
          be  a  representation  or a warranty that any of the unpatented mining
          claims  contains  a  valuable  mineral  deposit.

     (e)  With  respect to unpatented mining claims and millsites not located by
          NGXS  but which are included within the Properties, except as provided
          in  PARAGRAPH  1.1  OF EXHIBIT A and subject to the paramount title of
             -----------------------------
          the  United  States:  (i)  all  assessment  work  required to hold the
          unpatented  mining claims has been performed and all Governmental Fees
          have  been  paid  in  a  manner  consistent  with that required of the
          Manager  pursuant  to SUBSECTION 9.2(K) of the OA in order to maintain
                                ----------------
          those  claims  through  the  assessment year ending September 1, 2004;
          (ii)  all  affidavits  of  assessment  work,  evidence  of  payment of
          Governmental  Fees,  and other filings required to maintain the claims
          in  good standing have been properly and timely recorded or filed with
          appropriate governmental agencies; (iii) the claims are free and clear
          of Encumbrances or defects in title; and (iv) NGXS has no knowledge of
          conflicting  mining claims. Nothing in this Subsection, however, shall
          be  deemed  to  be  a  representation  or  a  warranty that any of the
          unpatented  mining  claims  contains a valuable discovery of minerals.

<PAGE>

     (f)  With  respect  to  the  Properties,  to NGXS's knowledge, there are no
          pending or threatened actions, suits, claims or proceedings, and there
          have  been  no  previous  transactions  affecting its interests in the
          Properties  which  have  not  been  for  fair  consideration.

     (g)  Except  as  to matters otherwise disclosed in writing to BMGE prior to
          the  Effective  Date, (i) to NGXS's knowledge, the conditions existing
          on  or  with respect to the Properties and its ownership and operation
          of  the Properties are not in violation of any Laws (including without
          limitation  any  Environmental  Laws)  nor  causing  or permitting any
          damage  (including   Environmental   Damage,  as   defined  below)  or
          impairment  to the health, safety, or enjoyment of any person at or on
          the  Properties  or in the general vicinity of the Properties; (ii) to
          NGXS's  knowledge,  there have been no past violations by it or by any
          of  its  predecessors in title of any Environmental Laws or other Laws
          affecting  or  pertaining  to the Properties, nor any past creation of
          damage  or  threatened  damage  to  the  air,  soil,  surface  waters,
          groundwater,  flora, fauna, or other natural resources on, about or in
          the  general  vicinity of the Properties ("ENVIRONMENTAL DAMAGE"); and
          (iii)  NGXS  has  not  received  inquiry  from  or notice of a pending
          investigation from any governmental agency or of any administrative or
          judicial  proceeding  concerning  the  violation  of  any  Laws.

     The  representations  and  warranties  set  forth  above  shall survive the
execution  and  delivery  of  any  documents  of  Transfer  provided  under this
Agreement.  For a representation or warranty made to a Member's "knowledge," the
term  "KNOWLEDGE"  shall  mean  actual  knowledge  on  the part of the officers,
employees,  and  agents  of  the  representing  Member  or  of  facts that would
reasonably  lead  to  the  indicated  conclusions.

     3.3  DISCLOSURES.  Each  of  the Members represents and warrants that it is
unaware  of  any material facts or circumstances that have not been disclosed in
this  Agreement or the OA which should be disclosed to the other Member in order
to  prevent  the representations and warranties in this Article or ARTICLE VI of
                                                                   ----------
the  OA  from  being  materially  misleading.  NGXS  has  disclosed  to BMGE all
information it believes to be relevant concerning the Assets and has provided to
or made available for inspection by BMGE all such information, but does not make
any  representation  or  warranty,  express  or  implied,  as to the accuracy or
completeness of the information (except as provided in SECTION 3.2) or as to the
                                                       ------------
boundaries  or  value of the Assets. Each Member represents to the other that in
negotiating  and entering into this Agreement and the OA it has relied solely on
its  own appraisals and estimates as to the value of the Assets and upon its own
geologic  and  engineering  interpretations  related  thereto.

     3.4  LOSS  OF  TITLE.  Any  failure or loss of title to the Assets, and all
costs  of defending title, shall be charged to the Business Account, except that
in  the  event of costs or losses arising out of or resulting from any breach of
the  representations  and  warranties of NGXS or BMGE as to title, the breaching
Member  shall  indemnify  the  non-breaching  Member  for such costs and losses.

<PAGE>

     3.5  LIMITATION OF LIABILITY. The Members shall not be required to make any
contribution  to the capital of the Company except as otherwise provided in this
Agreement,  nor  shall  the  Members  in their capacity as Members or Manager be
bound  by,  or  liable  for,  any  debt,  liability or obligation of the Company
whether  arising  in contract, tort, or otherwise. The foregoing shall not limit
any  obligation  of a Member to indemnify the other Member as expressly provided
by this Agreement. The Members shall be under no obligation to restore a deficit
Capital Account upon the dissolution of the Company or the liquidation of any of
their  Ownership  Interests.  Any obligation herein to contribute capital to the
Company may be compromised by the Members, including by payments by an obligated
Member  directly  to  the  other  Member.

     3.6  INDEMNIFICATION.

(a)  Each  Member  shall  indemnify  the  other Member, its directors, officers,
     employees,  agents and attorneys, and Affiliates (collectively "INDEMNIFIED
     PARTY")  from  and  against  the  entire  amount  of  any  Material Loss. A
     "MATERIAL LOSS" shall mean all direct and indirect costs, expenses, damages
     or  liabilities,  including  attorneys'  fees and other costs of litigation
     (either  threatened  or  pending)  arising out of or based on a breach by a
     Member  ("INDEMNIFYING  PARTY") of any representation, warranty or covenant
     contained  in  this  Agreement or the OA, including without limitation: (i)
     any  action  taken for or obligation or responsibility assumed on behalf of
     the  Company  or  another  Member  by  a  Member  or  any of its directors,
     officers,  employees,  agents and attorneys, or Affiliates, in violation of
     SECTION 5.1 of the OA; (ii) failure of a Member or its Affiliates to comply
     -----------
     with  the  non-compete or Area of Interest provisions of ARTICLE VI hereof;
                                                              ----------
     (iii)  any  Transfer  that  causes  termination  of  the  tax   partnership
     established by SECTION 5.2 of the OA, against which the transferring Member
                    -----------
     shall  indemnify  the  non-transferring  Member  as  provided in SUBSECTION
                                                                      ----------
     7.2(E)  of  the OA and ARTICLE V OF EXHIBIT C; and (iv) failure of a Member
     ------                 ----------------------
     or  its Affiliates to comply with the preemptive right under SECTION 7.3 of
                                                                  -----------
     the  OA and EXHIBIT H. A Material Loss shall not be deemed to have occurred
                 ---------
     until  an Indemnified Party incurs losses, costs, damages or liabilities in
     excess  of  ten  thousand  Dollars  ($10,000)  relating   to  breaches   of
     warranties,  representations  and covenants contained in this Agreement and
     the  OA,  in  the  aggregate. NGXS's aggregate liability to all Indemnified
     Parties  under  this  Section  for  breaches  of  the   representations  in
     SUBSECTION  3.2(G)  hereof  shall not, however, exceed one thousand Dollars
     ------------------
     ($1,000).

<PAGE>

(b)  If  any claim or demand is asserted against an Indemnified Party in respect
     of  which  such  Indemnified Party may be entitled to indemnification under
     this  Agreement,  written  notice of such claim or demand shall promptly be
     given  to  the  Indemnifying  Party.  The Indemnifying Party shall have the
     right,  but  not  the obligation, by notifying the Indemnified Party within
     thirty (30) days after its receipt of the notice of the claim or demand, to
     assume the entire control of (subject to the right of the Indemnified Party
     to  participate, at the Indemnified Party's expense and with counsel of the
     Indemnified  Party's choice), the defense, compromise, or settlement of the
     matter,  including,  at  the  Indemnifying  Party's  expense, employment of
     counsel  of  the  Indemnifying Party's choice. Any damages to the assets or
     business  of  the Indemnified Party caused by a failure by the Indemnifying
     Party  to  defend,  compromise, or settle a claim or demand in a reasonable
     and  expeditious  manner  requested  by  the  Indemnified  Party, after the
     Indemnifying  Party  has  given  notice  that it will assume control of the
     defense,  compromise, or settlement of the matter, shall be included in the
     damages  for  which  the Indemnifying Party shall be obligated to indemnify
     the  Indemnified  Party.  Any  settlement  or compromise of a matter by the
     Indemnifying  Party  shall  include  a  full  release of claims against the
     Indemnified Party which have arisen out of the indemnified claim or demand.

                       ARTICLE IV     INTERESTS OF MEMBERS

     4.1  CONTINUING  LIABILITIES  UPON  ADJUSTMENTS OF OWNERSHIP INTERESTS. Any
reduction or elimination of either Member's Ownership Interest under SECTION 4.2
                                                                     -----------
of  the  OA  shall  not  relieve  such  Member  of  its  share of any liability,
including, without limitation, Continuing Obligations, Environmental Liabilities
and Environmental Compliance, whether arising, before or after such reduction or
elimination,  out of acts or omissions occurring or conditions existing prior to
the  Effective  Date,  or  out  of  Operations conducted during the term of this
Agreement  but  prior  to  such reduction or elimination, regardless of when any
funds  may  be expended to satisfy such liability. For purposes of this Section,
such  Member's  share of such liability shall be equal to its Ownership Interest
at  the  time  the  act or omission giving rise to the liability occurred, after
first  taking  into account any prior reduction, readjustment and restoration of
Ownership Interests under SECTIONS 4.4, 10.5, 10.6 and 11.5 of the OA (or, as to
                          ---------------------------------
such liability arising out of acts or omissions occurring or conditions existing
prior to the Effective Date, equal to such Member's initial Ownership Interest).
Should  the cumulative cost of satisfying Continuing Obligations be in excess of
cumulative  amounts accrued or otherwise charged to the Environmental Compliance
Fund  as  described in PARAGRAPH 2.14 OF EXHIBIT B, each of the Members shall be
                       ---------------------------
liable  for its proportionate share (i.e., Ownership Interest at the time of the
act or omission giving rise to such liability occurred), after first taking into
account any reduction, readjustment and restoration of Ownership Interests under
SECTIONS  4.4,  10.5,  10.6  and  11.5 of the OA, of the cost of satisfying such
--------------------------------------
Continuing  Obligations,  notwithstanding  that  either  Member  has  previously
resigned  from  the  Company  or that its Ownership Interest has been reduced or
converted  to an interest in "NET PROCEEDS" pursuant to SUBSECTION 4.4(A) of the
                              ------------              -----------------
OA.

<PAGE>

     4.2 CONTINUING OBLIGATIONS AND ENVIRONMENTAL LIABILITIES. On dissolution of
the  Company  under  SECTION 14.1 of the OA, each Member shall remain liable for
                     ------------
its respective share of liabilities to third parties (whether such arises before
or  after  such dissolution), including Environmental Liabilities and Continuing
Obligations.  In  the  event  of the resignation of a Member pursuant to SECTION
14.2  of the OA, the resigning Member's share of such liabilities shall be equal
to  its  Ownership Interest at the time such liability was incurred, after first
taking  into  account  any reduction, readjustment, and restoration of Ownership
Interests  under  SECTIONS  4.4,  10.5,  10.6  and  11.5  of  the  OA (or, as to
                  --------------------------------------
liabilities  arising  prior  to  the  Effective  Date,  its  initial  Ownership
Interest).

     4.3  GRANT  OF  LIEN  AND  SECURITY  INTEREST.

     (a)  Subject  to SECTION 4.4 hereof, each Member grants to the other Member
          a  lien  upon  and  a  security  interest  in  its Ownership Interest,
          including all of its right, title and interest in the Assets, whenever
          acquired  or  arising,  and  the  proceeds  from and accessions to the
          foregoing.

     (b)  The  liens  and security interests granted by SUBSECTION 4.3(A) hereof
                                                        ----------------
          shall secure every obligation or liability of the Member granting such
          lien  or  security  interest  to  the  other Member created under this
          Agreement or the OA, including the obligation to repay a Cover Payment
          in  accordance  with SECTION 11.4 of the OA. Each Member hereby agrees
                               ------------
          to  take  all  action  necessary  to  perfect  such  lien and security
          interest  and hereby appoints the other Member its attorney-in-fact to
          execute,  file and record all financing statements and other documents
          necessary  to  perfect  or  maintain  such lien and security interest.

     4.4  SUBORDINATION OF INTERESTS. Each Member shall, from time to time, take
all  necessary actions, including execution of appropriate agreements, to pledge
and  subordinate its Ownership Interest, any liens it may hold which are created
under  this  Agreement  other than those created pursuant to SECTION 4.3 hereof,
                                                             -----------
and  any  other  right  or interest it holds with respect to the Company and the
Assets  (other than any statutory lien of the Manager) to any secured borrowings
for  Operations  approved  by  the  Management  Committee, including any secured
borrowings  relating  to  Project  Financing,  and any modifications or renewals
thereof.

                    ARTICLE V     RELATIONSHIP OF THE MEMBERS

     5.1 TRANSFER OR TERMINATION OF RIGHTS. Neither Member shall Transfer all or
any  part  of  its  rights  or  obligations  under  this  Agreement,  except  in
conjunction  with  a  transfer or termination of the Member's Ownership Interest
permitted  by  the  OA.  Any  such  permitted assignment shall be subject to the
consent  requirements  of  SECTION  7.2  of  the OA. Nothing in this SECTION 5.1
                           ------------
requires that a Member's rights and obligations under this Agreement be assigned
in  connection  with  the  transfer  of  its  Ownership  Interest.

     5.2  ABANDONMENT  AND  SURRENDER  OF PROPERTIES. The Member that desires to
abandon  or  surrender all or part of the Properties pursuant to SECTION 12.2 of
                                                                 ------------
the  OA shall remain liable to the other Member for its share (determined by its
Ownership  Interest  as of the date of such abandonment, after first taking into
account  any  reduction,  readjustment,  and  restoration of Ownership Interests
under SECTIONS 4.4, 10.5, 10.6 and 11.5 of the OA) of any liability with respect
to  such  Properties,  including,  without  limitation,  Continuing Obligations,
Environmental  Liabilities and Environmental Compliance, whether accruing before
or after such abandonment, arising out of activities prior to the Effective Date
and  out  of  Operations  conducted  prior  to  the  date  of  such abandonment,
regardless  of  when  any  funds  may  be  expended  to  satisfy such liability.

<PAGE>

     5.3 SUPPLEMENTAL BUSINESS ARRANGEMENT. The Members hereby agree that in the
event  of  a  Supplemental Business Arrangement pursuant to SECTION 10.13 of the
OA,  this  Agreement  shall  apply mutatis mutandis to such business in the same
manner  as  to  the  OA.

     5.4  IMPLIED  COVENANTS.  There  are no implied covenants contained in this
Agreement  other  than  those  of  good  faith  and  fair  dealing.

     5.5 NO THIRD PARTY BENEFICIARY RIGHTS. This Agreement shall be construed to
benefit  the Members and their respective successors and assigns only, and shall
not  be  construed  to create third party beneficiary rights in any other party,
expressly  including the Company, or in any governmental organization or agency,
except  to  the  extent  required  to  permit  indemnification of a non-Member's
Indemnified  Party  pursuant  to  SUBSECTION  3.6(A)  hereof.

               ARTICLE VI     ACQUISITIONS WITHIN AREA OF INTEREST

     6.1 GENERAL. Any interest or right to acquire any interest in real property
or  water  rights related thereto within the Area of Interest either acquired or
proposed  to  be  acquired  during the term of this Agreement by or on behalf of
either  Member  ("ACQUIRING  MEMBER")  or  any Affiliate of such Member shall be
subject  to the terms and provisions of this Agreement and the OA. BMGE and NGXS
and  their  respective  Affiliates  for  their separate account shall be free to
acquire  lands and interests in lands outside the Area of Interest and to locate
mining  claims  outside the Area of Interest. Failure of any Affiliate of either
Member  to  comply  with  this  Article shall be a breach by such Member of this
Agreement.

     6.2  NOTICE  TO  NON-ACQUIRING  MEMBER.  Within  thirty (30) days after the
acquisition  or proposed acquisition, as the case may be, of any interest or the
right  to  acquire  any  interest  in  real  property  or water rights wholly or
partially  within  the  Area  of  Interest (except real property acquired by the
Manager  pursuant  to  a  Program),  the Acquiring Member shall notify the other
Member  of  such  acquisition  by  it  or  its  Affiliate;  provided that if the
acquisition  of  any  interest or right to acquire any interest pertains to real
property  or  water  rights partially within the Area of Interest, then all such
real  property  (i.e., the part within the Area of Interest and the part outside
the  Area  of Interest) shall be subject to this Article. The Acquiring Member's
notice  shall  describe  in  detail the acquisition, the acquiring party if that
party  is an Affiliate, the lands and minerals covered thereby, any water rights
related  thereto,  the  cost  thereof,  and the reasons why the Acquiring Member
believes  that  the  acquisition (or proposed acquisition) of the interest is in
the  best  interests  of  the  Members under this Agreement. In addition to such
notice,  the  Acquiring Member shall make any and all information concerning the
relevant  interest  available  for  inspection  by  the  other  Member.

<PAGE>

     6.3 OPTION EXERCISED. Within thirty (30) days after receiving the Acquiring
Member's  notice,  the  other  Member  may  notify  the  Acquiring Member of its
election  to  accept  a proportionate interest in the acquired interest equal to
its  Ownership  Interest.  Promptly upon such notice, the Acquiring Member shall
convey  or  cause  its Affiliate to convey to the Members in proportion to their
respective  Ownership Interests or to the Company (as agreed by the Members), by
special  warranty  deed  all  of  the  Acquiring  Member's  (or its Affiliate's)
interest  in  such acquired interest, free and clear of all Encumbrances arising
by, through or under the Acquiring Member (or its Affiliate) other than those to
which  both  Members  have  agreed.  Immediately  upon such notice, the acquired
interest  either  shall be subject to a Supplemental Business Arrangement, or if
conveyed  to the Company, shall become a part of the Properties for all purposes
of  this  Agreement  and  the  OA.  The  other  Member shall promptly pay to the
Acquiring  Member  its  proportionate share of the latter's actual out-of-pocket
acquisition  costs.

     6.4  OPTION  NOT  EXERCISED.  If the other Member does not give such notice
within the thirty (30) day period set forth in SECTION 6.3 hereof, it shall have
no interest in the acquired interests, and the acquired interests shall not be a
part  of  the  Assets  or  continue  to  be subject to this Agreement or the OA.

     6.5  NON-COMPETE  COVENANTS.  Neither  a  Member  that  resigns pursuant to
SECTION  14.2 of the OA, or is deemed to have resigned pursuant to SECTIONS 3.2,
4.4  or  11.5  of  the OA, nor any Affiliate of such a Member, shall directly or
indirectly  acquire  any  interest  or right to explore or mine, or both, on any
property  any part of which is within the Area of Interest for sixty (60) months
after the effective date of resignation. If a resigning Member, or the Affiliate
of  a resigning Member, breaches this Section, such Member shall be obligated to
offer  to convey to the non-resigning Member, without cost, any such property or
interest  so  acquired (or ensure its Affiliate offers to convey the property or
interest  to  the  non-resigning Member, if the acquiring party is the resigning
Member's  Affiliate). Such offer shall be made in writing and can be accepted by
the  non-resigning  Member  at  any time within ten (10) days after the offer is
received by such non-resigning Member. Failure of a Member's Affiliate to comply
with  this  Section  shall  be  a  breach  by  such  Member  of  this Agreement.

                            ARTICLE VII     DISPUTES

     7.1  GOVERNING  LAW. Except for matters of title to the Properties or their
Transfer,  which  shall  be  governed  by the law of their situs, this Agreement
shall be governed by and interpreted in accordance with the laws of the State of
Nevada,  without  regard  for  any conflict of laws or choice of laws principles
that  would  permit  or  require  the  application  of  the  laws  of  any other
jurisdiction.

     7.2  FORUM  SELECTION. The parties submit to the jurisdiction of the Second
Judicial  Court  of  the  State of Nevada, Washoe County, Nevada, and the United
States  District  Court  for  the  District  of  Nevada.  The  parties waive any
objections  to  the  jurisdiction  of  such  courts  and venue of any actions or
proceedings  in  such  courts  arising  from  or  relating  to  this  Agreement.

<PAGE>

     7.3  ARBITRATION.  All disputes arising from or relating to this Agreement,
including  any  dispute  concerning  the  enforcement  or  construction  of this
Agreement, shall be decided and determined by arbitration in accordance with the
provision  of  Chapter 30 of the Nevada Revised Statutes and, as applicable, the
Commercial  Arbitration  Rules  of  the  American  Arbitration  Association. The
arbitration  shall  be  administered by and conducted before a single arbitrator
who  must  be an independent attorney licensed to practice law or an independent
geologist  or  mining  engineer  who  is  recognized  as  having  experience and
knowledge  of  mining contract law and mining industry customs and practices. No
person  having  a  prior  or  existing  attorney-client,  business  or  family
relationship  with  any of the parties or their principals shall be qualified to
act  as  an  arbitrator.  The  arbitration  shall  be  held  in  Reno,  Nevada.

     7.4  DISPUTE  RESOLUTION.  All disputes arising under or in connection with
this  Agreement  which cannot be resolved by agreement between the Members shall
be  resolved  in  accordance  with  applicable Law. If any legal action or other
proceeding  is  brought  for the enforcement of this Agreement, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the  provisions  of  this  Agreement, the successful or substantially prevailing
Member  shall  be entitled to recover reasonable attorneys' fees and other costs
incurred  in that action or proceeding, in addition to any other relief to which
it  or  they  may  be  entitled.

                       ARTICLE VIII     GENERAL PROVISIONS

     8.1     NOTICES.  All  notices,  payments  and  other required or permitted
communications  ("Notices")  to  either Member shall be in writing, and shall be
addressed  respectively  as  follows:

     If  to  BMGE:
              Attention:            James  E.  Mckay
              Mailing  Address:     One  East  Liberty,  Sixth  Floor
                                    Reno,  Nevada  89504
              Telephone:            775-686-6081
              Facsimile:            775-686-6066
              E-Mail:               jmckay@mckay.reno.nv.us
              With  a  Copy  to:    Mark  D.  Kucher
              Mailing  Address:     One  East  Liberty,  Sixth  Floor
                                    Reno,  Nevada  89504
              E-Mail:               kucher@earthlink.net

     If  to  NGXS:

              Attention:            Kenneth  N.  Tullar
              Mailing  Address:     101  Brownstone  Drive
                                    Reno,  Nevada  89512
              Telephone:            775-359-7722
              Facsimile:            775-359-7722
              E-Mail:               NVAuX@aol.com
              With  a  Copy  to:    Wade  A.  Hodges
              Mailing  Address:     14370  Riata  Circle
                                    Reno,  Nevada  89511-5702
              E-Mail:               WAHodges@aol.com

<PAGE>

     All  Notices  shall be given (a) by personal delivery to the Member; (b) by
electronic  communication,  capable  of producing a printed transmission, (c) by
registered  or  certified  mail return receipt requested; or (d) by overnight or
other  express  courier  service.  All  Notices  shall be effective and shall be
deemed  given on the date of receipt at the principal address if received during
normal business hours, and, if not received during normal business hours, on the
next  business  day following receipt, or if by electronic communication, on the
date  of  such  communication. Either Member may change its address by Notice to
the  other  Member.

     8.2  GENDER.  The  singular  shall  include  the plural, and the plural the
singular  wherever the context so requires, and the masculine, the feminine, and
the  neuter  genders  shall  be  mutually  inclusive.

     8.3  CURRENCY.  All references to "dollars" or "$" herein shall mean lawful
currency  of  the  United  States  of  America.

     8.4  HEADINGS. The subject headings of the Sections and Subsections of this
Agreement and the Paragraphs and Subparagraphs of the Exhibits to this Agreement
are  included  for  purposes  of  convenience  only,  and  shall  not affect the
construction  or  interpretation  of  any  of  its  provisions.

     8.5  WAIVER.  The  failure  of  either  Member  to  insist  on  the  strict
performance  of  any provision of this Agreement or to exercise any right, power
or remedy upon a breach hereof shall not constitute a waiver of any provision of
this  Agreement or limit such Member's right thereafter to enforce any provision
or  exercise  any  right.

     8.6  MODIFICATION.  No modification of this Agreement shall be valid unless
made  in  writing  and  duly  executed  by  both  Members.

     8.7  FORCE  MAJEURE.  Except  for  the obligation to make payments when due
hereunder,  the obligations of a Member shall be suspended to the extent and for
the  period  that  performance is prevented by any cause, whether foreseeable or
unforeseeable,  beyond  its  reasonable  control, including, without limitation,
labor  disputes  (however  arising  and  whether  or  not  employee  demands are
reasonable  or  within  the  power  of  the Member to grant); acts of God; Laws,
instructions  or requests of any government or governmental entity; judgments or
orders  of  any  court;  inability  to obtain on reasonably acceptable terms any
public  or  private  license,  permit  or  other  authorization;  curtailment or
suspension  of  activities  to  remedy or avoid an actual or alleged, present or
prospective  violation of Environmental Laws; action or inaction by any federal,
state  or  local  agency that delays or prevents the issuance or granting of any
approval  or  authorization required to conduct Operations beyond the reasonable
expectations  of  the  Member  seeking the approval or authorization (including,
without  limitation,  a  failure to complete any review and analysis required by
the  National  Environmental  Policy Act or any similar state law within two (2)
months  of initiation of that process); acts of war or conditions arising out of
or  attributable  to  war,  whether  declared or undeclared; riot, civil strife,
insurrection  or  rebellion;  fire,  explosion,  earthquake,  storm, flood, sink
holes, drought or other adverse weather condition; delay or failure by suppliers
or  transporters  of  materials,  parts,  supplies,  services or equipment or by
contractors'  or  subcontractors'  shortage  of,  or inability to obtain, labor,
transportation,  materials,  machinery,  equipment,  supplies,  utilities  or
services; accidents; breakdown of equipment, machinery or facilities; actions by
native  rights  groups,  environmental groups, or other similar special interest
groups;  or  any other cause whether similar or dissimilar to the foregoing. The
affected Member shall promptly give notice to the other Member of the suspension
of  performance,  stating  therein  the  nature  of  the suspension, the reasons
therefore,  and  the expected duration thereof. The affected Member shall resume
performance  as soon as reasonably possible. During the period of suspension the
obligations of both Members to advance funds pursuant to ARTICLE II hereof shall
be  reduced  to  levels  consistent  with  then  current  Operations.

<PAGE>

     8.8  RULE  AGAINST PERPETUITIES. The Members do not intend that there shall
be any violation of the Rule Against Perpetuities, the Rule Against Unreasonable
Restraints  on  the Alienation of Property, or any similar rule. Accordingly, if
any  right  or option to acquire any interest in the Properties, in an Ownership
Interest,  in  the  Assets, or in any real property exists under this Agreement,
such  right  or option must be exercised, if at all, so as to vest such interest
within  time  periods  permitted  by  applicable  rules.  If,  however, any such
violation  should  inadvertently  occur,  the  Members hereby agree that a court
shall  reform  that  provision  in such a way as to approximate most closely the
intent  of  the  Members  within  the  limits  permissible  under  such  rules.

     8.9  FURTHER  ASSURANCES. Each of the Members shall take, from time to time
and  without  additional  consideration,  such  further actions and execute such
additional instruments as may be reasonably necessary or convenient to implement
and  carry  out the intent and purpose of this Agreement or as may be reasonably
required  by  lenders  in  connection  with  Project  Financing.

     8.10  ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This Agreement contains the
entire  understanding  of  the  Members  and supersedes all prior agreements and
understandings  between  the  Members  relating  to  the  subject matter hereof;
provided  that  nothing  in this SECTION 8.10 modifies or affects the OA and the
Members' obligations there under. This Agreement shall be binding upon and inure
to  the  benefit  of  the  respective  successors  and  permitted assigns of the
Members.

     8.11  COUNTERPARTS.  This  Agreement  may  be  executed  in  any  number of
counterparts,  and it shall not be necessary that the signatures of both Members
be  contained  on any counterpart. Each counterpart shall be deemed an original,
but  all  counterparts  together  shall  constitute one and the same instrument.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
the  Effective  Date.

     BMGE
     By: /s/ Mark D. Kucher
         --------------------------------
     Name:               Mark D. Kucher
     Title:              President and Chief Executive Officer

     NGXS
     By: /s/ Kenneth N. Tullar
         --------------------------------
     Name:               Kenneth  N.  Tullar
     Title:              President

<PAGE>

                      ROCKY MOUNTAIN MINERAL LAW FOUNDATION
                           (Model Form 5A LLC / 1998)

                       Exploration, Development and Mining
                            Limited Liability Company

                                     Part II
                               Operating Agreement
                                       of
                                PEDIMENT GOLD LLC
                       A Nevada Limited Liability Company

<PAGE>

                         PART II     OPERATING AGREEMENT

                                       OF
                                PEDIMENT GOLD LLC

                       A NEVADA LIMITED LIABILITY COMPANY

     This Limited Liability Company Operating Agreement is made as of June     ,
                                                                           ----
2004  ("Effective Date") between Battle Mountain Gold Exploration Inc. ("BMGE"),
a  Nevada corporation, the address of which is 6th Floor, 1 East Liberty Street,
Reno,  Nevada,  89504  and  Nevada  Gold  Exploration Solutions, LLC ("NGXS"), a
Nevada  Limited  Liability  Company, the address of which is 101 Brownstone Dr.,
Reno,  NV  89512.

           RECITAL OF OPERATING ARGEEMENT OF BATTLE MOUNTAIN GOLD  LLC

A.   NGXS  also  controls  certain  intellectual  property  in  Nevada, which is
     described  in  EXHIBIT  A  and  defined  in  EXHIBIT  D.
                    ----------                    ----------
B.   BMGE wishes to participate with NGXS in the exploration, evaluation and, if
     justified,  the  development  and  mining  of  mineral  resources using the
     "INTELLECTUAL  PROPERTIES".
      ------------------------
C.   NGXS  and  BMGE  wish to form and operate a limited liability company under
     the  Nevada  Limited  Liability Company Act, under Chapter 86 of the Nevada
     Revised  Statutes (the "ACT"), to utilize on an exclusive basis and conduct
                             ---
     the  operations  thereon  contemplated  by  SECTION  2.3.
                                                 -------------
     NOW  THEREFORE,  in consideration of the covenants and conditions contained
herein,  NGXS  and  BMGE  agree  as  follows:

                 ARTICLE I     DEFINITIONS AND CROSS-REFERENCES

     1.1  DEFINITIONS. The terms defined in EXHIBIT D and elsewhere herein shall
have the defined meaning wherever used in this Agreement, including in Exhibits.

     1.2  CROSS REFERENCES. References to "Exhibits," "Articles," "Sections" and
"Subsections"  refer  to  Exhibits,  Articles,  Sections and Subsections of this
Agreement.  References  to  "Paragraphs" and "Subparagraphs" refer to paragraphs
and  subparagraphs  of  the  referenced  Exhibits.

                     ARTICLE II     NAME, PURPOSES AND TERM

     2.1  FORMATION.  The  Company has been duly organized pursuant to the "ACT"
and  the  provisions  of this Agreement as a Nevada limited liability company by
the  filing  of  its  Articles  of Organization (as defined in the "ACT") in the
                                                                    ----
Office  of  the  Secretary of the State of Nevada effective as of the June     ,
                                                                           ----
2004.

<PAGE>

     2.2  NAME.  The name of the Company is "PEDIMENT GOLD LLC" ("PGL") and such
other name or names complying with the "ACT" as the Manager shall determine. The
Manager  shall accomplish any filings or registrations required by jurisdictions
in  which  the  Company  conducts  its  Business.

     2.3  PURPOSES.  The Company is formed for the following purposes and for no
others,  and  shall  serve  as  the exclusive means by which each of the Members
accomplishes  such  purposes:

     (a)  To  conduct  Exploration  within  the  Area  of  Interest,

     (b)  To  acquire  additional  real  property and other interests within the
          Area  of  Interest,

     (c)  To  evaluate  the  possible  Development and Mining of the Properties,
          and,  if  justified,  to  engage  in  Development  and  Mining,

     (d)  To  engage  in  Operations  on  the  Properties,

     (e)  To  engage  in  marketing  Products,

     (f)  To  complete  and satisfy all Environmental Compliance obligations and
          Continuing  Obligations  affecting  the  Properties,  and

     (g)  To perform any other activity necessary, appropriate, or incidental to
          any  of  the  foregoing.

     2.4     LIMITATION.  Unless  the  Members  otherwise  agree in writing, the
Business  of  the  Company shall be limited to the purposes described in SECTION
                                                                         -------
2.3,  and nothing in this Agreement shall be construed to enlarge such purposes.
----

     2.5  TERM.  The  term  of the Company shall begin on the Effective Date and
shall  continue  for  twenty  (20) years from the Effective Date and for so long
thereafter  as  Products are produced from the Properties on a continuous basis,
and  thereafter until all materials, supplies, equipment and infrastructure have
been  salvaged  and  disposed  of,  and any required Environmental Compliance is
completed  and  accepted,  unless  the  Company  is earlier terminated as herein
provided.  For purposes hereof, Products shall be deemed to be produced from the
Properties  on  a  "continuous  basis"  so  long  as  production  in  commercial
quantities  is not halted for more than one hundred and eighty (180) consecutive
days.

     2.6  RESIDENT  AGENT;  OFFICES. The name of the Company's Resident Agent in
the  State  of  Nevada is James E. McKay or such other person as the Manager may
select  in compliance with the "ACT" from time to time. The registered office of
                                ---
the Company in the State of Nevada shall be located at 6th Floor, 1 East Liberty
Street,  Reno,  Nevada,  89504  or at any other place within the State of Nevada
which  the Manager shall select. The principal office of the Company shall be at
any  other  location,  which  the  Manager  shall  select.

                    ARTICLE III     CONTRIBUTIONS BY MEMBERS

     3.1     MEMBERS'  INITIAL  CONTRIBUTIONS.

(a)  NGXS,  as its Initial Contribution, hereby contributes the Assets described
     in  EXHIBIT  A  to  the  capital  of  the  Company.
         ----------

(b)  Subject  to  BMGE's right of resignation as set forth in SECTION 3.2, BMGE,
                                                              -----------
     as  its Initial Contribution, shall fund Operations under SUBSECTION 3.1(C)
                                                               -----------------
     and  in accordance with EXHIBIT G and EXHIBIT I totaling three million, two
                             ---------     ---------
     hundred  and  fifty  thousand  Dollars ($3,250,000). In determining whether
     such  funding  obligation  has  been  met,  only  costs  that  are properly
     chargeable  to  the  Business  Account  under  EXHIBIT  B shall be included
                                                    ----------
     ("QUALIFYING  EXPENSES");  provided, however, BMGE shall not be entitled to
     an  Administrative Charge as provided by PARAGRAPH 2.13 OF EXHIBIT B during
                                              ---------------------------
     the time it is making Qualifying Expenses. Upon completion of such funding,
     this  amount  shall  be  credited  to  BMGE's  Equity  Account.

(c)  Subject  only  to  the provisions of SECTION 10.1, until BMGE has completed
                                          ------------
     its  Initial  Contribution,  the  Members, the Management Committee and the
     Manager  hereby  delegate  to  NGXS the sole right to determine the nature,
     timing,  scope,  extent and method of all Operations without any obligation
     to  hold  meetings  of  the  Management  Committee, to prepare Programs and
     Budgets  for review, comment or approval by BMGE, or to obtain the approval
     or  consent  of  BMGE  or  the  Management  Committee.  In  conducting such
     Operations, NGXS shall be entitled, but shall not be obligated, to exercise
     any  of  the  applicable  powers of the Manager in SECTION 9.2, except that
                                                        -----------
     until  BMGE has completed its Initial Contribution it shall not be entitled
     or required to perform the activities described in SUBSECTIONS 9.2(G), (I),
                                                        ------------------  ---
     (L),  (T)  and  (U)  that would otherwise require consent of the Management
     ---   ---       ---
     Committee.  Prior  to  completion  of BMGE's Initial Contribution, NGXS, in
     lieu  of  any  reporting requirements under this Agreement, shall: (i) keep
     BMGE  generally  informed  concerning  all  material  Operations  and other
     material  activities  affecting  the  Properties; (ii) within ten (10) days
     after  the  end  of  each  Approved  Budget,  furnish  to BMGE a reasonably
     detailed  written  report of all Operations conducted on or for the benefit
     of  the  Properties  during  the preceding period; (iii) make available for
     inspection  and  copying  by  BMGE  all  factual  and interpretive reports,
     studies and analyses concerning the Properties, and make all core and other
     samples  available for inspection by BMGE; and (iv) on or before a date ten
     days  (10)  after  each  Approved  Program,  submit  to BMGE a statement of
     Qualifying  Expenses  incurred  during  the preceding period. NGXS makes no
     representation  or  warranty,  express  or  implied,  as to the accuracy or
     completeness  of  the  data  and information provided to BMGE in accordance
     with  (i)  through  (iv)  above.

<PAGE>

(d)  BMGE  shall  provide NGXS with written notice of any exceptions it may have
     to  the  statement of Qualifying Expenses submitted to it as provided above
     within  ten  (10)  days  after receipt of the statement. Failure to provide
     such  notice  within the ten (10) day period shall constitute acceptance by
     BMGE  of  the  stated  Qualifying  Expenses.

     3.2  FAILURE  TO  MAKE  INITIAL  CONTRIBUTION.

(a)  BMGE's  failure  to  make  its  Initial Contribution in accordance with the
     provisions  of  this Article and except as otherwise provided in EXHIBIT I,
     if  not cured within twenty (20) days after notice by NGXS of such default,
     shall  be  deemed  to  be  a  resignation  of  BMGE  from  the Company, the
     termination  of  its  membership  in  the  Company  and  a  transfer of its
     Ownership  Interest  and  Capital  Account  to  NGXS. Subject to SUBSECTION
     3.2(B) below, BMGE's resignation shall be effective upon such failure. Upon
     such  event,  BMGE  shall  have  no further right, title or interest in the
     Company  or  the  Assets and it shall take such actions as are necessary to
     ensure  that  all Assets are free and clear of any Encumbrances arising by,
     through  or under it, except for such Encumbrances to which the Members may
     have  agreed.

(b)  Notwithstanding SUBSECTION 3.2(A) above, in the event BMGE, within ten (10)
     days  after the Effective Date, determines that conditions may exist on the
     Properties  which  may,  in  BMGE's  judgment,   result  in   violation  of
     Environmental Laws, BMGE shall have the right to resign from the Company by
     giving written notice to NGXS of such resignation. BMGE's resignation shall
     be  effective  upon  receipt by NGXS of such notice. Such resignation shall
     relieve  BMGE  of  its  responsibility  to fund and satisfy BMGE's share of
     liabilities to third parties (regardless of whether such liabilities accrue
     before  or  after  such  resignation), including Environmental Liabilities,
     Continuing  Obligations  and  Environmental Compliance. Except as otherwise
     expressly  provided  herein, BMGE's resignation shall relieve BMGE from any
     other  obligation  to  make  contributions  hereunder.

     3.3  RECORD  TITLE.  Title  to  the  Assets  shall  be held by the Company.

                       ARTICLE IV     INTERESTS OF MEMBERS

     4.1 INITIAL OWNERSHIP INTERESTS. As provided by EXHIBIT I, BMGE must expend
$1,165,000  in  order  to earn a 50% interest in PGL and that before that event,
its  interest  is  not  vested. After that event the Members shall
have  the  following  initial  Ownership  Interests:
         NGXS          50%
         BMGE          50%

     4.2 CHANGES IN OWNERSHIP INTERESTS. Except as otherwise provided in EXHIBIT
                                                                       --------
I,  the  Ownership  Interests  shall  be  eliminated  or  changed  as  follows:
--

(a)  Upon  resignation  or  deemed resignation as provided in SECTIONS 3.2, 4.4,
                                                              ------------  ----
     and  ARTICLE  XIV;
          -------------

(b)  Upon  an  election  by either Member pursuant to SECTION 10.5 to contribute
                                                      ------------
     less  to  an  adopted Program and Budget Stage than the percentage equal to
     its  Ownership Interest, or to contribute nothing to an adopted Program and
     Budget  Stage;

(c)  In  the  event  of  default  by  either  Member  in  making its agreed-upon
     contribution  to  an  adopted  Program  and  Budget  Stage,  followed by an
     election by the other Member to invoke any of the remedies in SECTION 11.5;
                                                                   -------------

(d)  Upon  Transfer by either Member of part or all of its Ownership Interest in
     accordance  with  ARTICLE  VII;
                       -------------

(e)  Upon  acquisition by either Member of part or all of the Ownership Interest
     of  the  other  Member,  however  arising;  or

(f)  Upon  BMGE  contributing  as  per  EXHIBIT  I.
                                        -----------

     4.3  ADMISSION  OF NEW MEMBERS. Except in the event of a transfer permitted
pursuant  to  ARTICLE  VII, a new member may be admitted only with the unanimous
              ------------
written  approval  of  the  Members.

     4.4  ELIMINATION  OF  MINORITY  INTEREST.

(a)  A  Reduced  Member  whose Recalculated Ownership Interest becomes less than
     twenty  five  percent  (25%)  shall  be  deemed  to have withdrawn from the
     Company  and  shall relinquish its entire Ownership Interest free and clear
     of any Encumbrances arising by, through or under the Reduced Member, except
     any  such Encumbrances listed in PARAGRAPH 1.1 OF EXHIBIT A or to which the
                                      --------------------------
     Members  have  agreed. Such relinquished Ownership Interest shall be deemed
     to  have  accrued  automatically  to the other Member. The Reduced Member's
     Capital  Account  shall be transferred to the remaining Member. The Reduced
     Member  shall have the right to receive a one and a quarter percent (1.25%)
     Net  Smelter  Royalty, if any, as of the effective date of the resignation.
     Upon  receipt  of  such amount, the Reduced Member shall thereafter have no
     further  right,  title,  or interesting the Assets, in the Company or under
     this  Agreement,  and  the  tax  partnership established by EXHIBIT C shall
                                                                 ---------
     dissolve pursuant to PARAGRAPH 4.2 OF EXHIBIT C. In such event, the Reduced
                          --------------------------
     Member  shall  execute  and deliver an appropriate conveyance of any right,
     title  and  interest  the  Reduced  Member  may  have  in the Assets to the
     remaining  Member.

<PAGE>

(b)  The  relinquishment,  resignation  and  entitlements for which this Section
     provides  shall  be effective as of the effective date of the recalculation
     under  SECTIONS  10.5  or  11.5.  However, if the final adjustment provided
            --------------      ----
     under  SECTION  10.6  for any recalculation under SECTION 10.5 results in a
            -------------                              ------------
     Recalculated  Ownership  Interest of twenty five percent (25%) or more: (i)
     the  Recalculated   Ownership   Interest   shall   be   deemed,   effective
     retroactively  as  of  the  first  day  of  the  Program  Period,  to  have
     automatically  revested;  (ii)  the Reduced Member shall be reinstated as a
     Member,  with  all  of the rights and obligations pertaining thereto; (iii)
     the  right  to Net Smelter Royalty under SUBSECTION 4.4(A) shall terminate;
                                              ----------------
     and  (iv)  the  Manager, on behalf of the Members, shall make any necessary
     reimbursements,   reallocations   of  Products,  contributions  and   other
     adjustments  as  provided  in  SUBSECTION 10.6(D). Similarly, if such final
                                    -----------------
     adjustment  under SECTION 10.6 results in a Recalculated Ownership Interest
                       ------------
     for  either  Member  of  less  than twenty five percent (25%) for a Program
     Period  as  to which the provisional calculation under SECTION 10.5 had not
                                                            ------------
     resulted  in  an Ownership Interest of less than twenty five percent (25%),
     then  such  Member, at its election within thirty (30) days after notice of
     the final adjustment, may contribute an amount resulting in a revised final
     adjustment and resultant Recalculated Participating Interest of twenty five
     percent  (25%). If no such election is made, such Member shall be deemed to
     have  withdrawn under the terms of SUBSECTION 4.4(A) as of the beginning of
                                        ----------------
     such  Program Period, and the Manager, on behalf of the Members, shall make
     any  necessary reimbursements, reallocations of Products, contributions and
     other  adjustments  as provided in SUBSECTION 10.6(D), including of any Net
                                        -----------------
     Smelter  Royalty  to  which  such  Member  may be entitled for such Program
     Period.

     4.5  DOCUMENTATION  OF  ADJUSTMENTS  TO  OWNERSHIP INTERESTS. Each Member's
Ownership  Interest  and  related  Equity  Account balance shall be shown in the
accounting  records  of  the Company, and any adjustments thereto, including any
reduction,  readjustment,  and restoration of Ownership Interests under SECTIONS
                                                                        --------
4.4,  10.5,  10.6  and  11.5,  shall  be  made  monthly. The Schedule of Members
----------------------------
attached  hereto  shall  be  amended  from time to time to reflect such changes.

                    ARTICLE V     RELATIONSHIP OF THE MEMBERS

     5.1  LIMITATION  ON  AUTHORITY  OF  MEMBERS.  No  Member is an agent of the
Company  solely  by virtue of being a Member, and no Member has authority to act
for  the Company solely by virtue of being a Member. This SECTION 5.1 supersedes
any  authority granted to the Members pursuant to the Act. Any Member that takes
any action or binds the Company in violation of this SECTION 5.1 shall be solely
responsible  for any loss and expense incurred by the Company as a result of the
unauthorized  action  and  shall  indemnify  and  hold the Company harmless with
respect  to  the  loss  or  expense.

     5.2  FEDERAL TAX ELECTIONS AND ALLOCATIONS. The Company shall be treated as
a  partnership  for  federal  income  tax purposes, and no Member shall take any
action  to  alter  such  treatment.

<PAGE>

     5.3  STATE  INCOME TAX. To the extent permissible under applicable law, the
relationship  of  the  Members shall be treated for state income tax purposes in
the  same  manner  as  it  is  for  federal  income  tax  purposes.

     5.4  TAX  RETURNS.  After  approval  of  the  Management Committee, any tax
returns or other required tax forms shall be filed in accordance with EXHIBIT C.
                                                                      ---------

     5.5  OTHER  BUSINESS  OPPORTUNITIES.  Each  Member  shall have the right to
engage  in and receive full benefits from any independent business activities or
operations,  whether  or  not  competitive  with the Company, without consulting
with,  or  obligation  to,  the  other  Member  or the Company. The doctrines of
"corporate  opportunity"  or  "business opportunity" shall not be applied to the
Business  nor  to any other activity or operation of any Member. No Member shall
have  any  obligation  to  the  Company  or any other Member with respect to any
opportunity to acquire any property outside the Area of Interest at any time, or
within  the  Area  of  Interest  after  the  termination  of the Company. Unless
otherwise  agreed  in writing, neither the Manager nor any Member shall have any
obligation  to mill, beneficiate or otherwise treat any Products in any facility
owned  or  controlled  by  the  Manager  or  such  Member.

     5.6  WAIVER OF RIGHTS TO PARTITION OR OTHER DIVISION OF ASSETS. The Members
hereby waive and release all rights of partition, or of sale in lieu thereof, or
other  division  of  Assets,  including  any  such  rights  provided  by  Law.

     5.7  BANKRUPTCY  OF  A  MEMBER. A Member shall cease to have any power as a
Member  or  Manager  or  any  voting rights or rights of approval hereunder upon
bankruptcy,  insolvency,  dissolution or assignment for the benefit of creditors
of  such  Member,  and its successor upon the occurrence of any such event shall
have  only  the  rights,  powers  and  privileges  of a transferee enumerated in
SECTION  7.2,  and  shall be liable for all obligations of the Member under this
------------
Agreement.  In  no  event, however, shall a personal representative or successor
become a substitute Member unless the requirements of SECTION 7.2 are satisfied.
                                                      -----------

     5.8  IMPLIED  COVENANTS.  There  are no implied covenants contained in this
Agreement  other  than  those  of  good  faith  and  fair  dealing.

     5.9  NO  CERTIFICATE. The Company shall not issue certificates representing
Ownership  Interests  in  the  Company.

     5.10 DISPOSITION OF PRODUCTION. Neither Member shall have any obligation to
account to the other Member for, nor have any interest or right of participation
in  any profits or proceeds nor have any obligation to share in any losses from,
futures contracts, forward sales, trading in puts, calls, options or any similar
hedging,  price  protection  or  marketing  mechanism  employed by a Member with
respect  to  its  proportionate share of any Products produced or to be produced
from  the  Properties.

     5.11 LIMITATION OF LIABILITY. The Members shall not be required to make any
contribution  to the capital of the Company except as otherwise provided in this
Agreement,  nor  shall  the  Members  in their capacity as Members or Manager be
bound  by,  or  liable  for,  any  debt,  liability or obligation of the Company
whether arising in contract, tort, or otherwise, except as expressly provided by
this  Agreement.  The  Members shall be under no obligation to restore a deficit
Capital Account upon the dissolution of the Company or the liquidation of any of
their  Ownership  Interests.

<PAGE>

     5.12  INDEMNITIES.  The Company may, and shall have the power to, indemnify
and hold harmless any Member or Manager or other person from and against any and
all  claims  and demands whatsoever arising from or related to the Business, the
Company or a Member's membership in the Company. 5.13 NO THIRD PARTY BENEFICIARY
RIGHTS.  This  Agreement  shall  be  construed  to benefit the Members and their
respective  successors  and  assigns  only, and shall not be construed to create
third  party  beneficiary  rights  in  any  other  party  or in any governmental
organization  or  agency.

                  ARTICLE VI     REPRESENTATIONS AND WARRANTIES

     As  of the Effective Date, each Member warrants and represents to the other
that:

(a)  It  is  a  corporation or a Limited Liability company duly organized and in
     good standing in its state of incorporation and is qualified to do business
     and  is  in good standing in those states where necessary in order to carry
     out  the  purposes  of  this  Agreement;

(b)  It  has  the  capacity  to  enter  into  and perform this Agreement and all
     transactions  contemplated  herein  and  that  all  corporate,  board  of
     directors,  shareholder,  surface  and mineral rights owner, lessor, lessee
     and  other  actions and consents required to authorize it to enter into and
     perform  this  Agreement  have  been  properly  taken  or  obtained;

(c)  It  will  not breach any other agreement or arrangement by entering into or
     performing  this  Agreement;

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

(e)  This  Agreement has been duly executed and delivered by it and is valid and
     binding  upon  it  in  accordance  with  its  terms.

             ARTICLE VII     TRANSFER OF INTEREST; PREEMPTIVE RIGHT

     7.1 GENERAL. A Member shall have the right to Transfer to a third party its
Ownership  Interest,  or  any beneficial interest therein, solely as provided in
this  Article  VII.

     7.2  LIMITATIONS  ON  FREE  TRANSFERABILITY.  Any Transfer by either Member
under  SECTION  7.1  shall  be  subject  to  the  following  limitations:

<PAGE>

(a)  Neither  Member  shall  Transfer  any  beneficial  interest  in the Company
     (including,  but not limited to, any royalty, profits, or other interest in
     the Products) except in conjunction with the Transfer of part or all of its
     Ownership  Interest;

(b)  No  transferee  of  all  or any part of a Member's Ownership Interest shall
     have  the  rights  of a Member unless and until the transferring Member has
     provided  to  the  other  Member  notice  of  the  Transfer, and, except as
     provided in SUBSECTIONS  7.2(F)  and  7.2(G),  the  transferee,  as  of the
                 -------------------       ------
     effective  date  of the Transfer, has committed in writing to assume and be
     bound  by  this  Agreement  to  the same extent as the transferring Member;

(c)  Neither  Member,  without  the  consent  of  the other Member, shall make a
     Transfer  that  shall violate any Law, or result in the cancellation of any
     permits,  licenses,  or  other  similar  authorization;

(d)  No Transfer permitted by this Article shall relieve the transferring Member
     of  any liability of such transferring Member under this Agreement, whether
     accruing  before  or  after  such  Transfer;

(e)  Any  Member  that  makes a Transfer that shall cause termination of the tax
     partnership  established  by  SECTION  5.2 shall indemnify the other Member
                                   ------------
     for, from and against any and all loss, cost, expense, damage, liability or
     claim therefore arising from the Transfer, including without limitation any
     increase  in taxes, interest and penalties or decrease in credits caused by
     such  termination  and  any tax on indemnification proceeds received by the
     indemnified  Member.

(f)  In  the  event of a Transfer of less than all of an Ownership Interest, the
     transferring  Member  and  its  transferee  shall act and be treated as one
     Member  under  this  Agreement;  provided  however,  that in order for such
     Transfer  to  be effective, the transferring Member and its transferee must
     first:  (i) agree, as between themselves, that one of them is authorized to
     act as the sole agent ("AGENT") on their behalf with respect to all matters
     pertaining  to  this  Agreement  and the Company; and (ii) notify the other
     Member  of  the  designation  of  the Agent, and in such notice warrant and
     represent to the other Member that: (A) the Agent has the sole authority to
     act  on  behalf of, and to bind, the transferring Member and its transferee
     with  respect  to all matters pertaining to this Agreement and the Company;
     (B)  the  other  Member  may  rely  on  all decisions of, notices and other
     communications from, and failures to respond by, the Agent, as if given (or
     not  given)  by  the  transferring  Member  and its transferee; and (C) all
     decisions  of,  notices  and  other  communications  from,  and failures to
     respond  by,  the  other  Member  to the Agent shall be deemed to have been
     given  (or  not  given)  to the transferring Member and its transferee. The
     transferring  Member  and  its  transferee  may  change the Agent (but such
     replacement  must  be  one  of  them) by giving notice to the other Member,
     which  notice  must  conform  to  SUBSECTION  7.2(F)(II)  .
                                       ----------------------

<PAGE>

(g)  If  the Transfer is the grant of an Encumbrance on an Ownership Interest to
     secure  a  loan  or  other  indebtedness  of  either  Member in a bona fide
     transaction,  other  than  a  transaction  approved  unanimously  by  the
     Management  Committee  or  Project  Financing  approved  by  the Management
     Committee,  such  Encumbrance shall be granted only in connection with such
     Member's  financing  payment  or  performance  of that Member's obligations
     under  this  Agreement  and shall be subject to the terms of this Agreement
     and  the  rights  and  interests  of  the  other Member hereunder. Any such
     Encumbrance  shall  be  further subject to the condition that the holder of
     such Encumbrance ("CHARGEE") first enters into a written agreement with the
     other  Member  in form satisfactory to the other Member, acting reasonably,
     binding  upon  the  Chargee,  to the effect that: (i) the Chargee shall not
     enter  into  possession  or  institute  any  proceedings for foreclosure or
     partition  of  the  encumbering  Member's  Ownership Interest and that such
     Encumbrance  shall be subject to the provisions of this Agreement; (ii) the
     Chargee's  remedies  under  the Encumbrance shall be limited to the sale of
     the  whole  (but  only  of the whole) of the encumbering Member's Ownership
     Interest  to the other Member, or, failing such a sale, at a public auction
     to be held at least sixty (60) days after prior notice to the other Member,
     such  sale to be subject to the purchaser entering into a written agreement
     with the other Member whereby such purchaser assumes all obligations of the
     encumbering  Member  under  the  terms  of this Agreement. The price of any
     preemptive sale to the other Member shall be the remaining principal amount
     of the loan plus accrued interest and related expenses, and such preemptive
     sale  shall  occur  within  sixty  (60) days of the Chargee's notice to the
     other  Member  of  its  intent  to  sell the encumbering Member's Ownership
     Interest. Failure of a sale to the other Member to close by the end of such
     period,  unless  failure  is  caused  by  the  encumbering Member or by the
     Chargee,  shall  permit  the  Chargee  to  sell  the  encumbering  Member's
     Ownership  Interest  at  a  public  sale;  and  (iii)  the  charge shall be
     subordinate  to  any  then-existing  debt,  including  Project  Financing
     previously  approved  by  the  Management  Committee,  encumbering  the
     transferring  Member's  Ownership  Interest.

     7.3  Preemptive  Right. Any Transfer by either Member under Section 7.1 and
any  Transfer  by an Affiliate in Control of either Member shall be subject to a
preemptive  right  of  the  other  Member  to  the extent provided in Exhibit H.
Failure  of a Member's Affiliate to comply with this Section and Exhibit H shall
be  a  breach  by  such  Member of this Agreement. The preemptive right does not
apply  to  NGXS's  Net  Profits  Interest,  Net Smelter Return, or Gross Bullion
Royalty  described  in  SECTION  1.9  OF  EXHIBIT  I, if NGSX has elected not to
                        ----------------------------
continue  as  a  participating  Member.

<PAGE>

                      ARTICLE VIII     MANAGEMENT COMMITTEE

     8.1     ORGANIZATION  AND  COMPOSITION.  The  Members  hereby  establish  a
Management  Committee  to  determine  overall  policies, objectives, procedures,
methods and actions under this Agreement. The Management Committee shall consist
of two (2) members appointed by BMGE and two (2) members appointed by NGXS. Each
Member  may  appoint  one  or more alternates to act in the absence of a regular
member.  Any  alternate  so  acting  shall be deemed a Member. Appointments by a
Member  shall  be  made  or  changed  by notice to the other Members. BMGE shall
designate  one of its Members to serve as the chair of the Management Committee.

     8.2  DECISIONS. Before BMGE has completed its contribution of $1,165,000 to
earn a 50% interest according to PARAGRAPHS 1.1 AND 1.2 OF EXHIBIT I, NGXS shall
                                 -----------------------------------
determine  the  decisions  of the Management Committee. After BMGE has completed
its  contribution  of  $1,165,000 to earn a 50% interest according to PARAGRAPHS
                                                                      ----------
1.1  AND  1.2  OF EXHIBIT I, each Member acting through its appointed members in
---------------------------
attendance  at  the  meeting,  shall  have  two  votes  each  and  both  parties
acknowledge  that  the possibility of a dispute exists that would invoke ARTICLE
                                                                         -------
XV  to  resolve.  After  BMGE  has  expended  $3,250,000  to earn a 70% interest
--
according  to  PARAGRAPHS  1.1 AND 1.2 OF EXHIBIT I, each Member, acting through
               ------------------------------------
its  appointed  member(s)  in attendance at the meeting, shall have the votes on
the Management Committee in proportion to its Ownership Interest. After BMGE has
expended  $3,250,000,  the  vote  of  the Member with an Ownership Interest over
fifty  (50%)  shall  determine  the  decisions  of  the  Management  Committee.

     8.3  MEETINGS.

(a)  After BMGE has completed its Initial Contribution, the Management Committee
     shall hold regular meetings at least quarterly in Reno, Nevada, or at other
     agreed  places.  The Manager shall give ten (10) days notice to the Members
     of  such  meetings.  Additionally, either Member may call a special meeting
     upon  seven  (7)  days notice to the other Member. In case of an emergency,
     reasonable  notice  of  a  special  meeting shall suffice. There shall be a
     quorum if at least one member of the Management Committee representing each
     Member  is present; provided, however, that if a Member fails to attend two
     consecutive  properly  called  meetings,  then  a quorum shall exist at the
     second meeting if the other Member is represented by at least one appointed
     member, and a vote of such Member shall be considered the vote required for
     the  purposes  of the conduct of all business properly noticed even if such
     vote  would  otherwise  require  unanimity.

(b)  If  business cannot be conducted at a regular or special meeting due to the
     lack  of  a  quorum, either Member may call the next meeting upon seven (7)
     days  notice  to  the  other  Member.

<PAGE>

(c)  Each  notice  of a meeting shall include an itemized agenda prepared by the
     Manager  in  the  case  of  a  regular meeting or by the Member calling the
     meeting in the case of a special meeting, but any matters may be considered
     if  either  Member  adds  the  matter  to the agenda at least five (5) days
     before  the  meeting  or  with the consent of the other Member. The Manager
     shall  prepare  minutes of all meetings and shall distribute copies of such
     minutes  to the other Member within ten (10) days after the meeting. Either
     Member  may  electronically  record  the  proceedings of a meeting with the
     consent  of  the  other  Member.  The other Member shall sign and return or
     object to the minutes prepared by the Manager within thirty (30) days after
     receipt, and failure to do either shall be deemed acceptance of the minutes
     as  prepared by the Manager. The minutes, when signed or deemed accepted by
     both  Members,  shall  be  the official record of the decisions made by the
     Management  Committee.  Decisions  made  at  a Management Committee meeting
     shall  be implemented in accordance with adopted Programs and Budgets. If a
     Member  timely  objects  to minutes proposed by the Manager, the members of
     the Management Committee shall seek, for a period not to exceed thirty (30)
     days from receipt by the Manager of notice of the objections, to agree upon
     minutes  acceptable  to  both Members. If the Management Committee does not
     reach  agreement  on the minutes of the meeting within such thirty (30) day
     period, the minutes of the meeting as prepared by the Manager together with
     the  other  Member's  proposed  changes  shall  collectively constitute the
     record  of the meeting. If personnel employed in Operations are required to
     attend  a  Management  Committee  meeting,  reasonable  costs  incurred  in
     connection  with  such attendance shall be charged to the Business Account.
     All  other  costs  shall  be  paid  by  the  Members  individually.

     8.4     ACTION  WITHOUT  MEETING  IN PERSON. In lieu of meetings in person,
the  Management  Committee may conduct meetings by telephone or videoconference,
so  long  as minutes of such meetings are prepared in accordance with SUBSECTION
                                                                      ----------
8.3(C).  The Management Committee may also take actions in writing signed by all
-----
members  of  the  Management  Committee.

     8.5 MATTERS REQUIRING APPROVAL. Except as provided in SUBSECTION 3.1(C) and
                                                           -----------------
as  otherwise  delegated to the Manager in SECTION 9.2, the Management Committee
                                           -----------
shall  have  exclusive  authority  to  determine  all matters related to overall
policies,  objectives,  procedures,  methods  and  actions under this Agreement.

                             ARTICLE IX     MANAGER

     9.1     APPOINTMENT.  The  Members  hereby appoint NGXS as the Manager with
overall  management  responsibility  for Operations. NGXS hereby agrees to serve
until  it  resigns  as  provided  in  SECTION  9.4.
                                      ------------

     9.2  POWERS  AND  DUTIES OF MANAGER. Subject to the terms and provisions of
this  Agreement,  the  Manager shall have the following powers and duties, which
shall  be  discharged  in  accordance  with  adopted  Programs  and  Budgets.

<PAGE>

(a)  The  Manager shall manage, direct and control Operations, and shall prepare
     and  present  to  the Management Committee proposed Programs and Budgets as
     provided  in  ARTICLE  X.
                   -----------

(b)  The  Manager  shall  implement  the  decisions of the Management Committee,
     shall  make  all  expenditures necessary to carry out adopted Programs, and
     shall promptly advise the Management Committee if it lacks sufficient funds
     to  carry  out  its  responsibilities  under  this  Agreement.

(c)  The  Manager  shall  use  reasonable  efforts to: (i) purchase or otherwise
     acquire  all  material,  supplies,  equipment,  water,  utility  and
     transportation  services  required  for  Operations,  such  purchases  and
     acquisitions to be made to the extent reasonably possible on the best terms
     available,  taking  into account all of the circumstances; (ii) obtain such
     customary  warranties  and  guarantees  as are available in connection with
     such  purchases  and acquisitions; and (iii) keep the Assets free and clear
     of  all  Encumbrances, except any such Encumbrances listed in PARAGRAPH 1.1
                                                                   -------------
     OF EXHIBIT A and those existing at the time of, or created concurrent with,
     ------------
     the  acquisition  of  such  Assets,  or  mechanic's or material men's liens
     (which  shall be contested, released or discharged in a diligent matter) or
     Encumbrances  specifically  approved  by  the  Management  Committee.

(d)  The  Manager  shall  conduct  such title examinations of the Properties and
     cure such title defects pertaining to the Properties as may be advisable in
     its  reasonable  judgment.

(e)  The Manager shall: (i) make or arrange for all payments required by leases,
     licenses,  permits,  contracts  and other agreements related to the Assets;
     (ii)  pay  all taxes, assessments and like charges on Operations and Assets
     except  taxes  determined  or  measured  by a Member's sales revenue or net
     income  and  taxes,  including production taxes, attributable to a Member's
     share  of Products, and shall otherwise promptly pay and discharge expenses
     incurred  in  Operations;  provided,  however,  that  if  authorized by the
     Management  Committee,  the Manager shall have the right to contest (in the
     courts  or  otherwise)  the validity or amount of any taxes, assessments or
     charges  if  the  Manager  deems  them  to  be unlawful, unjust, unequal or
     excessive,  or  to undertake such other steps or proceedings as the Manager
     may  deem  reasonably  necessary  to  secure  a  cancellation,  reduction,
     readjustment  or  equalization thereof before the Manager shall be required
     to pay them, but in no event shall the Manager permit or allow title to the
     Assets to be lost as the result of the nonpayment of any taxes, assessments
     or  like  charges;  and  (iii)  do  all  other acts reasonably necessary to
     maintain  the  Assets.

<PAGE>

(f)  The  Manager  shall:  (i)  apply  for  all  necessary permits, licenses and
     approvals;  (ii) comply with all Laws; (iii) notify promptly the Management
     Committee  of  any  allegations  of substantial violation thereof; and (iv)
     prepare  and  file  all  reports  or notices required for or as a result of
     Operations.  The  Manager  shall  not  be  in breach of this provision if a
     violation  has  occurred  in  spite  of the Manager's good faith efforts to
     comply consistent with its standard of care under SECTION 9.3. In the event
                                                       -----------
     of  any  such  violation,  the Manager shall timely cure or dispose of such
     violation  on  behalf of both Members through performance, payment of fines
     and  penalties,  or  both,  and  the  cost  thereof shall be charged to the
     Business  Account.

(g)  The  Manager  shall  prosecute  and  defend, but shall not initiate without
     consent  of  the  Management  Committee,  all  litigation or administrative
     proceedings  arising  out of Operations. The non-managing Member shall have
     the  right  to  participate,  at  its  own  expense,  in such litigation or
     administrative  proceedings.  The  non-managing  Member  shall  approve  in
     advance  any  settlement  involving payments, commitments or obligations in
     excess  of  ten  thousand  Dollars  ($10,000)  in  cash  or  value.

(h)  The  Manager  shall  obtain  insurance  for  the  benefit of the Company as
     provided  in  EXHIBIT F or as may otherwise be determined from time to time
                   ---------
     by  the  Management  Committee.

(i)  The  Manager  may  dispose of Assets, whether by abandonment, surrender, or
     Transfer  in the ordinary course of business, except that Properties may be
     abandoned  or  surrendered  only as provided in SECTION 12.2. Without prior
                                                     ------------
     authorization  from  the  Management  Committee, however, the Manager shall
     not:  (i)  dispose  of  Assets  in any one transaction (or in any series of
     related  transactions)  having  a  value  in excess of one hundred thousand
     Dollars  ($100,000); (ii) enter into any sales contracts or commitments for
     Product,  except as permitted in SECTION 5.10; (iii) begin a liquidation of
                                      ------------
     the  Company;  or  (iv)  dispose of all or a substantial part of the Assets
     necessary  to  achieve  the  purposes  of  the  Company.

(j)  The  Manager  shall  have  the  right  to  carry  out  its responsibilities
     hereunder  through  agents,  Affiliates  or  independent  contractors.

(k)  The Manager shall perform or cause to be performed all assessment and other
     work,  and  shall  pay  all  Governmental Fees, required by Law in order to
     maintain the unpatented mining claims, mill sites and tunnel sites included
     within  the  Properties.  The  Manager  shall have the right to perform the
     assessment work required hereunder pursuant to a common plan of exploration
     and  continued  actual  occupancy  of  such  claims  and sites shall not be
     required.  The  Manager shall not be liable on account of any determination
     by  any court or governmental agency that the work performed by the Manager
     does  not  constitute  the required annual assessment work or occupancy for
     the purposes of preserving or maintaining ownership of the claims, provided
     that  the  work done is pursuant to an adopted Program and Budget Stage and
     is  performed  in  accordance  with  the  Manager's  standard of care under
     SECTION  9.3.  The  Manager shall timely record with the appropriate county
     ------------
     and file with the appropriate United States agency any required affidavits,
     notices  of  intent to hold and other documents in proper form attesting to
     the  payment  of  Governmental  Fees, the performance of assessment work or
     intent  to  hold the claims and sites, in each case in sufficient detail to
     reflect compliance with the requirements applicable to each claim and site.
     The  Manager  shall  not  be  liable on account of any determination by any
     court  or  governmental  agency  that  any  such  document submitted by the
     Manager  does  not  comply with applicable requirements, provided that such
     document is prepared and recorded or filed in accordance with the Manager's
     standard  of  care  under  SECTION  9.3.
                                -------------

<PAGE>

(l)  If  authorized  by  the  Management Committee, the Manager may: (i) locate,
     amend  or relocate any unpatented mining claim or mill site or tunnel site,
     (ii)  locate  any  fractions  resulting  from such amendment or relocation,
     (iii)  apply  for patents or mining leases or other forms of mineral tenure
     for any such unpatented claims or sites, (iv) abandon any unpatented mining
     claims  for  the purpose of locating mill sites or otherwise acquiring from
     the  United  States  rights  to the ground covered thereby, (v) abandon any
     unpatented  mill  sites  for  the  purpose  of  locating  mining  claims or
     otherwise  acquiring  from  the  United States rights to the ground covered
     thereby,  (vi)  exchange  with  or  convey  to the United States any of the
     Properties  for  the  purpose  of  acquiring  rights  to the ground covered
     thereby  or  other adjacent ground, and (vii) convert any unpatented claims
     or  mill  sites  into  one  or more leases or other forms of mineral tenure
     pursuant  to  any  Law  hereafter  enacted.

(m)  The  Manager  shall keep and maintain all required accounting and financial
     records pursuant to the procedures described in EXHIBIT B and in accordance
     with  customary cost accounting practices in the mining industry, and shall
     ensure  appropriate  separation  of accounts unless otherwise agreed by the
     Members.

(n)  The  Manager  shall keep and maintain all required records, make elections,
     and  prepare  and  file all federal and state tax returns or other required
     tax  forms,  and  perform  the  other  duties  described  in  EXHIBIT  C.
                                                                   -----------

(o)  The  Manager  shall maintain Equity Accounts for each Member. Each Member's
     Equity  Account  shall  be  credited  with  the  value  of  such  Member's
     contributions  under  SUBSECTIONS  3.1(A)  and 3.1(B) and shall be credited
                           -------------------      -----
     with any additional amounts contributed by such Member to the Company. Each
     Member's  Equity Account shall be charged with the cash and the fair market
     value of property distributed to such Member (net of liabilities assumed by
     such Member and liabilities to which such distributed property is subject).
     Contributions  and  distributions  shall  include all cash contributions or
     distributions  plus  the agreed value (expressed in dollars) of all in-kind
     contributions  or  distributions.  Solely  for  purposes of determining the
     Equity  Account  balances  of  the  Members,  the  Manager shall reasonably
     estimate  the fair market value of all Products distributed to the Members,
     and  such  estimated  value  shall  be used regardless of the actual amount
     received  by  each  Member  upon  disposition  of  such  Products.

<PAGE>

(p)  SUBJECT  TO  SUBSECTION  3.1(C),  the  Manager  shall  keep  the Management
                  -------------------
     Committee advised of all Operations by submitting in writing to the members
     of  the  Management  Committee:  (i)  monthly progress reports that include
     statements  of  expenditures  and  comparisons  of such expenditures to the
     adopted  Budget;  (ii) periodic summaries of data acquired; (iii) copies of
     reports concerning Operations; (iv) a detailed final report within ten (10)
     days after completion of each Program and Budget Stage, which shall include
     comparisons  between  actual  and  budgeted  expenditures  and  comparisons
     between  the objectives and results of Programs; and (v) such other reports
     as  any  member of the Management Committee may reasonably request. Subject
     to  ARTICLE  XIII,  at  all  reasonable times the Manager shall provide the
         -------------
     Management  Committee, or other representative of a Member upon the request
     of  such  Member's  member  of the Management Committee, access to, and the
     right  to inspect and, at such Member's cost and expense, copy the Existing
     Data  and  all  maps,  drill  logs  and  other  drilling data, core, pulps,
     reports,  surveys,  assays,  analyses,  production  reports,  operations,
     technical,  accounting  and  financial  records,  and  other  Business
     Information,  to  the extent preserved or kept by the Manager. In addition,
     the Manager shall allow the non-managing Member, at the latter's sole risk,
     cost  and expense, and subject to reasonable safety regulations, to inspect
     the  Assets  and  Operations  at  all  reasonable  times,  so  long  as the
     non-managing  Member  does  not  unreasonably  interfere  with  Operations.

(q)  The  Manager  shall  prepare  an  Environmental  Compliance  plan  for  all
     Operations  consistent  with  the  requirements  of  any applicable Laws or
     contractual  obligations and shall include in each Program and Budget Stage
     sufficient  funding  to  implement the Environmental Compliance plan and to
     satisfy  the  financial  assurance  requirements  of  any applicable Law or
     contractual  obligation  pertaining  to  Environmental  Compliance.  To the
     extent  practical,  the  Environmental  Compliance  plan  shall incorporate
     concurrent  reclamation  of  Properties  disturbed  by  Operations.

<PAGE>

(r)  The  Manager  shall undertake to perform Continuing Obligations when and as
     economic  and  appropriate,  whether  before  or  after  termination of the
     Company.  The  Manager  shall  have  the  right  to delegate performance of
     Continuing  Obligations to persons having demonstrated skill and experience
     in  relevant  disciplines.  As  part  of  each  Program  and  Budget  Stage
     submittal,  the  Manager shall specify in such Program and Budget Stage the
     measures to be taken for performance of Continuing Obligations and the cost
     of  such  measures.  The  Manager  shall  keep  the other Member reasonably
     informed  about  the Manager's efforts to discharge Continuing Obligations.
     Authorized representatives of each Member shall have the right from time to
     time  to  enter the Properties to inspect work directed toward satisfaction
     of  Continuing  Obligations  and audit books, records, and accounts related
     thereto.

(s)  The  funds  that are to be deposited into the Environmental Compliance Fund
     shall  be  maintained  by  the Manager in a separate, interest bearing cash
     management  account, which may include, but is not limited to, money market
     investments  and  money  market funds, and/or in longer term investments if
     approved  by  the Management Committee. Such funds shall be used solely for
     Environmental  Compliance  and  Continuing  Obligations,  including  the
     committing  of  such  funds,  interests  in  property,  insurance  or  bond
     policies,  or  other security to satisfy Laws regarding financial assurance
     for  the  reclamation  or  restoration  of  the  Properties,  and for other
     Environmental  Compliance  requirements.

(t)  If  Ownership  Interests are adjusted in accordance with this Agreement the
     Manager  shall  modify  the  Schedule  of  Members to properly reflect such
     adjustment  and  shall  propose  from  time to time one or more methods for
     fairly  allocating  costs  for  Continuing  Obligations.

(u)  The  Manager  shall  undertake all other activities reasonably necessary to
     fulfill  the  foregoing,  and  to  implement  the  policies,  objectives,
     procedures,  methods  and  actions  determined  by the Management Committee
     pursuant  to  SECTION  8.1.
                   -------------

(v)  The  balance  of  the  funds  that  are not initially expended for the Land
     Acquisition  Stage  are  to  be  deposited  and  shall be maintained by the
     Manager  in a separate, interest bearing cash management account, which may
     include,  but  is not limited to, money market investments and money market
     funds,  and/or  in  longer  term  investments if approved by the Management
     Committee.  Such  residual  funds shall be used solely to maintain Acquired
     Properties  in  good standing and shall be available to the Manager to make
     appropriate,  timely  payments.

<PAGE>

     9.3     STANDARD  OF  CARE.  The  Manager  shall discharge its duties under
SECTION  9.2  and  conduct  all  Operations in a good, workmanlike and efficient
------------
manner,  in accordance with sound mining and other applicable industry standards
and  practices, and in accordance with Laws and with the terms and provisions of
leases,  licenses,  permits,  contracts  and  other agreements pertaining to the
Assets.  The  Manager  shall  not  be  liable to the other Member for any act or
omission  resulting  in  damage  or  loss  except  to  the  extent  caused by or
attributable  to  the  Manager's  willful  misconduct  or  gross negligence. The
Manager  shall  not  be in default of any of its duties under SECTION 9.2 if its
                                                              -----------
inability  or failure to perform results from the failure of the other Member to
perform  acts  or  to  contribute  amounts  required  of  it  by this Agreement.

     9.4  RESIGNATION;  DEEMED  OFFER TO RESIGN. The Manager may resign upon not
less  than  one  (1) months' prior notice to the other Member, in which case the
other  Member  may  elect  to  become the new Manager by notice to the resigning
Member  within  ten  (10)  days  after  the notice of resignation. If any of the
following  shall  occur,  the  Manager shall be deemed to have resigned upon the
occurrence of the event described in each of the following Subsections, with the
successor  Manager  to be appointed by the other Member at a subsequently called
meeting  of the Management Committee, at which the Manager shall not be entitled
to  vote.  The  other Member may appoint itself or a third party as the Manager.

(a)  The  aggregate Ownership Interest of the Manager and its Affiliates becomes
     less  than  thirty  percent  (30%);

(b)  The  Manager  fails  to perform a material obligation imposed upon it under
     this  Agreement  and such failure continues for a period of sixty (60) days
     after  notice  from  the  other  Member  demanding  performance;

(c)  The Manager fails to pay or contest in good faith Company bills and Company
     debts  as  such  obligations  become  due;

(d)  A  receiver,  liquidator,  assignee,  custodian,  trustee,  sequestrator or
     similar official for a substantial part of its assets is appointed and such
     appointment  is  neither  made ineffective nor discharged within sixty (60)
     days  after  the  making  thereof,  or  such  appointment  is consented to,
     requested  by,  or  acquiesced  to  by  the  Manager;

(e)  The  Manager  commences  a  voluntary case under any applicable bankruptcy,
     insolvency  or  similar  law now or hereafter in effect; or consents to the
     entry  of  an order for relief in an involuntary case under any such law or
     to  the  appointment  of  or  taking  possession by a receiver, liquidator,
     assignee, custodian, trustee, sequestrator or other similar official of any
     substantial  part  of  its  assets;  or  makes a general assignment for the
     benefit  of creditors; or takes corporate or other action in furtherance of
     any  of  the  foregoing;  or

(e)  Entry is made against the Manager of a judgment, decree or order for relief
     affecting  its  ability  to  serve  as Manager or a substantial part of its
     Ownership Interest or its other assets by a court of competent jurisdiction
     in  an  involuntary  case  commenced  under  any  applicable  bankruptcy,
     insolvency  or  other  similar  law of any jurisdiction now or hereafter in
     effect.

<PAGE>

(f)  After BMGE has expended $3,250,000 BMGE shall have the right to appoint the
     Manager.

     Under  SUBSECTIONS  (D),  (E)  OR (F) above, the appointment of a successor
Manager  shall  be  deemed  to  pre-date the event causing a deemed resignation.

     9.5  PAYMENTS TO MANAGER. The Manager shall be compensated for its services
and  reimbursed  for  its  costs  hereunder  in  accordance  with  EXHIBIT  B.
                                                                   ----------

     9.6  TRANSACTIONS  WITH  AFFILIATES.  If  the Manager engages Affiliates to
provide services hereunder, it shall do so on terms no less favorable than would
be  the  case  in  arm's-length  transactions  with  unrelated  parties.

     9.7  ACTIVITIES DURING DEADLOCK. If the Management Committee for any reason
fails  to  adopt  an  Exploration,  Pre-Feasibility  Study, Feasibility Study or
Development  Program  and Budget Stage, the Manager shall continue Operations at
levels  sufficient  to  maintain the Properties. If the Management Committee for
any  reason fails to adopt an initial Mining Program and Budget or any Expansion
or  Modification  Programs and Budgets, the Manager shall continue Operations at
levels sufficient to maintain the then current Operations and Properties. If the
Management  Committee  for any reason fails to adopt Mining Programs and Budgets
subsequent  to  the  initial  Mining Program and Budget, subject to the contrary
direction  of  the  Management  Committee  and  receipt  of necessary funds, the
Manager  shall  continue  Operations  at levels comparable with the last adopted
Mining Program and Budget. All of the foregoing shall be subject to the contrary
direction  of  the  Management  Committee  and  the  receipt of necessary funds.

                       ARTICLE X     PROGRAMS AND BUDGETS

     10.1     INITIAL  PROGRAM  AND  BUDGET. The Initial Program and Budget with
Program  and  Budget  Stages to which both Members have agreed is hereby adopted
and  is  attached  as  EXHIBIT  G.  The  Schedule of BMGE Initial Contributions,
                       ----------
Ownership  Interest  Calculations,  and  Failure  to Make Contributions Dilution
Schedule  to which both parties have agreed is hereby adopted and is attached as
EXHIBIT  I.  The  remaining  subsections  of  Article X apply if and only if the
----------
company  elects  to  retain  one  or more properties and NGSX elects to retain a
working  ownership  interest  or  the  carried  interest  to  production.

     10.2  OPERATIONS  PURSUANT  TO  PROGRAMS  AND  BUDGETS. Except as otherwise
provided  in SUBSECTION 3.1(C) and SECTION 10.12, Operations shall be conducted,
             -----------------     -------------
expenses  shall  be  incurred, and Assets shall be acquired only pursuant to the
adopted  Initial Program and Budget with Program and Budget Stages in accordance
with  EXHIBIT  G.  Every  Program  and  Budget  Stage  adopted  pursuant to this
      ----------
Agreement  shall  provide  for  accrual  of reasonably anticipated Environmental
Compliance  expenses  for  all  Operations  contemplated  under  the Program and
Budget.

<PAGE>

     10.3  PRESENTATION  OF  PROGRAMS AND BUDGETS. Proposed Programs and Budgets
with  Program and Budget Stages shall be prepared by the Manager for a period of
one  (1)  year  or any other period as approved by the Management Committee, and
shall be submitted to the Management Committee for review and consideration. All
proposed  Programs and Budgets may include Exploration, Pre-Feasibility Studies,
Feasibility  Study, Development, Mining and Expansion or Modification Operations
components, or any combination thereof, and shall be reviewed and adopted upon a
vote  of the Management Committee in accordance with SECTIONS 8.2 and 10.4. Each
                                                     ------------     ----
Program  and  Budget  adopted by the Management Committee, regardless of length,
shall be reviewed at least once a year at a meeting of the Management Committee.
During  the  period  encompassed by any Program and Budget, and at least one (1)
month  prior to its expiration, a proposed Program and Budget for the succeeding
period  shall  be  prepared  by  the  Manager  and  submitted  to the Management
Committee  for  review  and  consideration.

     10.4  REVIEW AND ADOPTION OF PROPOSED PROGRAMS AND BUDGETS. Within ten (10)
days after submission of a proposed Program and Budget, each Member shall submit
in  writing  to  the  Management  Committee:

(a)  Notice  that  the  Member approves any or all of the Stages of the proposed
     Program  and  Budget;  or

(b)  Modifications  proposed by the Member to the Stages of the proposed Program
     and  Budget;  or

(c)  Notice  that  the  Member  rejects any or all of the Stages of the proposed
     Program  and  Budget.

If  a  Member  fails  to give any of the foregoing responses within the allotted
time, the failure shall be deemed to be a vote by the Member for adoption of the
Manager's  proposed  Program  and  Budget  with  Program and Budget Stages. If a
Member  makes  a  timely  submission  to  the  Management  Committee pursuant to
SUBSECTIONS  10.4(A), (B) or (C), then the Manager working with the other Member
       -------------  ---    ---
shall  seek  for  a  period  of  time  not to exceed five (20) days to develop a
complete  Program  and  Budget with Program and Budget Stages acceptable to both
Members.  The  Manager  shall  then  call  a  Management  Committee  meeting  in
accordance  with  SECTION  8.3  for  purposes  of  reviewing and voting upon the
                  ------------
proposed  Program  and  Budget.

     10.5     ELECTION  TO PARTICIPATE.  Except as otherwise provided in EXHIBIT
                                                                         -------
I:
(a)  By  notice  to  the  Management  Committee within twenty (20) calendar days
     after the final vote adopting a Program and Budget, and notwithstanding its
     vote  concerning  adoption  of  a Program and Budget, a Member may elect to
     participate  in  the  approved Program and Budget: (i) in proportion to its
     respective  Ownership  Interest,  (ii)  in  some  lesser  amount  than  its
     respective  Ownership Interest, or (iii) not at all. In case of an election
     under  SUBSECTION  10.5(A)(II)  or  (III) , its Ownership Interest shall be
     recalculated  as  provided  in  SUBSECTION  10.5(B)  below,  with  dilution
     effective as of the first day of the Program Period for the adopted Program
     and  Budget. If a Member fails to so notify the Management Committee of the
     extent  to  which  it  elects to participate, the Member shall be deemed to
     have  elected to contribute to such Program and Budget in proportion to its
     respective  Ownership  Interest  as of the beginning of the Program Period.

<PAGE>

(b)  If  a  Member  elects  to  contribute to an adopted Program and Budget some
     lesser  amount  than in proportion to its respective Ownership Interest, or
     not  at  all, and the other Member elects to fund all or any portion of the
     deficiency,  the  Ownership  Interest  of  the  Reduced  Member  shall  be
     provisionally  recalculated  as  follows:  (i)  for an election made before
     "PAYOUT",  by  dividing:  (A)  the  sum  of  (1) the amount credited to the
     --------
     Reduced  Member's  Equity  Account with respect to its Initial Contribution
     under  SECTION  3.1,  (2)  the  total  of  all  of  the  Reduced  Member's
            ------------
     contributions to the Company under SUBSECTION 10.5(A) or otherwise pursuant
                                        ------------------
     to this Agreement, and (3) the amount, if any, the Reduced Member elects to
     contribute  to  the  adopted  current Program and Budget; by (B) the sum of
     (1), (2) and (3) above for both Members; and then multiplying the result by
     one  hundred;  or  (ii)  for an election made after Payout, by reducing its
     Ownership  Interest  in an amount equal to two times the amount by which it
     would  have  been reduced under SUBSECTION 10.5(B)(I) if such election were
                                     ---------------------
     made  before  Payout.  The  Ownership Interest of the other Member shall be
     increased  by  the amount of the reduction in the Ownership Interest of the
     Reduced  Member,  and  if  the  other  Member elects not to fund the entire
     deficiency,  the Manager shall adjust the Program and Budget to reflect the
     funds  available.

(c)  Whenever the Ownership Interests are recalculated pursuant to this Section,
     (i)  the  Equity Accounts of both Members shall be revised to bear the same
     ratio  to  each  other  as their recalculated Ownership Interests; (ii) the
     Schedule  of Members shall be amended to reflect the recalculated Ownership
     Interests;  and  (iii)  the  portion of Capital Account attributable to the
     reduced  Ownership  Interest  of the Reduced Member shall be transferred to
     the  other  Member.

     10.6     RECALCULATION  OR  RESTORATION OF REDUCED INTEREST BASED ON ACTUAL
EXPENDITURES.  Except  as  otherwise  provided  in  EXHIBIT  I:
                                                    ----------

(a)  If  a  Member makes an election under SUBSECTION 10.5(A)(II) OR (III), then
                                           -------------------------------
     within  ten  (10) days after the conclusion of such Program and Budget, the
     Manager  shall  report  the  total  amount of money expended plus the total
     obligations  incurred  by  the  Manager  for  such  Budget.

<PAGE>

(b)  If the Manager expended or incurred obligations that were more or less than
     the  adopted Budget, the Ownership Interests shall be recalculated pursuant
     to  SUBSECTION 10.5(B) by substituting each Member's actual contribution to
         -----------------
     the  adopted Budget for that Member's estimated contribution at the time of
     the  Reduced  Member's  election  under  SUBSECTION  10.5(A).
                                              -------------------

(c)  If  the Manager expended or incurred obligations of less than sixty percent
     (60%)  of  the  adopted  Budget,  within  ten  (10)  days  of receiving the
     Manager's  report  on expenditures, the Reduced Member may notify the other
     Member  of  its  election  to reimburse the other Member for the difference
     between  any  amount  contributed  by  the  Reduced  Member to such adopted
     Program  and  Budget  and  the Reduced Member's proportionate share (at the
     Reduced  Member's  former Ownership Interest) of the actual amount expended
     or  incurred  for  the Program, plus interest on the difference accruing at
     the  rate  described  in  SECTION 11.3 plus ten (10) percentage points. The
                               ------------
     Reduced Member shall deliver the appropriate amount (including interest) to
     the  other  Member  with  such  notice. Failure of the Reduced Member to so
     notify  and  tender  such  amount  shall  result  in  dilution occurring in
     accordance  with  this  Article X and shall bar the Reduced Member from its
     rights  under  this  SUBSECTION  10.6(C)  concerning  the  relevant adopted
                          -------------------
     Program  and  Budget.

(d)  All  recalculations  under  this Section shall be effective as of the first
     day  of  the  Program  Period  for  the Program and Budget. The Manager, on
     behalf  of  both  Members, shall make such reimbursements, reallocations of
     Products,  contributions and other adjustments as are necessary so that, to
     the  extent  possible,  each Member will be placed in the position it would
     have been in had its Ownership Interests as recalculated under this Section
     been  in  effect throughout the Program Period for such Program and Budget.

(e)  Whenever the Ownership Interests are recalculated pursuant to this Section,
     (i) the Members' Equity Accounts shall be revised to bear the same ratio to
     each  other as their Recalculated Ownership Interests; (ii) the Schedule of
     Members  shall  be amended to reflect the recalculated Ownership Interests;
     and  (iii)  the Capital Accounts of the Members shall be determined without
     regard to SUBSECTION 10.5(C), provided, that the portion of Capital Account
     attributable  to  the  reduced Ownership Interest of the Reduced Member, if
     any,  after  taking  into  account the adjustments required by this Section
     10.6  shall  be  transferred  to  the  other  Member.

     10.7     PRE-FEASIBILITY  STUDY  PROGRAM  AND  BUDGETS.

(a)  At  such  time as either Member is of the good faith and reasonable opinion
     that  economically  viable  Mining  Operations  may  be  possible  on  the
     Properties,  the  Member  may  propose  to  the Management Committee that a
     Pre-Feasibility  Study  Program  and  Budget,  or a Program and Budget that
     includes  Pre-Feasibility Studies, be prepared. Such proposal shall be made
     in  writing  to  the  other Member, shall reference the data upon which the
     proposing  Member  bases  its  opinion,  and  shall  call  a meeting of the
     Management  Committee  pursuant to SECTION 8.3. If such proposal is adopted
                                        -----------
     by  the  Management Committee, the Manager shall prepare or have prepared a
     Pre-Feasibility  Study  Program  and  Budget  as approved by the Management
     Committee  and  shall  submit  the  same to the Management Committee within
     twenty  (20)  days  following  adoption  of  the  proposal.

<PAGE>

(b)  Pre-Feasibility  Studies  may  be  conducted  by  the  Manager, Feasibility
     Contractors,  or  both,  or  may be conducted by the Manager and audited by
     Feasibility  Contractors,  as  the  Management  Committee  determines.  A
     Pre-Feasibility  Study  Program shall include the work necessary to prepare
     and  complete the Pre-Feasibility Study approved in the proposal adopted by
     the  Management  Committee, which may include some or all of the following:
     (i)  analyses  of  various  alternatives  for  mining,  processing  and
     beneficiation  of  Products;  (ii) analyses of alternative mining, milling,
     and  production rates; (iii) analyses of alternative sites for placement of
     facilities  (i.e.,  water  supply facilities, transport facilities, reagent
     storage,  offices,  shops,  warehouses,  stock  yards,  explosives storage,
     handling  facilities,  housing,  public  facilities);  (iv)  analyses  of
     alternatives  for  waste treatment and handling (including a description of
     each alternative of the method of tailings disposal and the location of the
     proposed  disposal  site); (v) estimates of recoverable proven and probable
     reserves  of  Products and of related substances, in terms of technical and
     economic  constraints (extraction and treatment of Products), including the
     effect  of  grade,  losses,  and  impurities,  and  the  estimated  mineral
     composition  and  content  thereof, and review of mining rates commensurate
     with  such  reserves; (vi) analyses of environmental impacts of the various
     alternatives,  including  an  analysis  of  the  permitting,  environmental
     liability and other Environmental Law implications of each alternative, and
     costs  of  Environmental  Compliance for each alternative; (vii) conduct of
     appropriate  metallurgical tests to determine the efficiency of alternative
     extraction,  recovery  and  processing techniques, including an estimate of
     water,  power,  and  reagent  consumption  requirements;  (viii) conduct of
     hydrology  and  other  studies  related  to  any  required  dewatering; and
     (ix)conduct  of  other  studies  and  analyses  approved  by the Management
     Committee.

(c)  The  Manager  shall  have  the  discretion  to base its and any Feasibility
     Contractors'  Pre-Feasibility  Study  on  the  cumulative  results  of each
     discipline  studied,  so  that  if  a  particular portion of the work would
     result  in the conclusion that further work based on these results would be
     unwarranted  for  a  particular  alternative,  the  Manager  shall  have no
     obligation  to  continue  expenditures  on  other  Pre-Feasibility  Studies
     related  solely  to  such  alternative.

<PAGE>

     10.8     COMPLETION  OF  PRE-FEASIBILITY  STUDIES AND SELECTION OF APPROVED
ALTERNATIVES.  As  soon  as  reasonably  practical  following  completion of all
Pre-Feasibility  Studies  required  to  evaluate  fully the alternatives studied
pursuant  to  Pre-Feasibility  Programs,  the  Manager  shall  prepare  a report
summarizing  all  Pre-Feasibility  Studies  and  shall  submit  the  same to the
Management  Committee.  Such  report  shall  incorporate  the  following:

(a)  The results of the analyses of the alternatives and other matters evaluated
     in  the  conduct  of  the  Pre-Feasibility  Programs;

(b)  Reasonable  estimates  of capital costs for the Development and start-up of
     the  mine,  mill  and other processing and ancillary facilities required by
     the  Development  and  Mining alternatives evaluated (based on flow sheets,
     piping and instrumentation diagrams, and other major engineering diagrams),
     which cost estimates shall include reasonable estimates of: (i) capitalized
     pre-stripping  expenditures,  if  an  open pit or surface mine is proposed;
     (ii)  expenditures  required  to  purchase,  construct  and  install  all
     machinery,  equipment  and  other  facilities and infrastructure (including
     contingencies)  required  to  bring  a  mine  into  commercial  production,
     including  an  analysis of costs of equipment or supply contracts in lieuof
     Development  costs  for  each Development and Mining alternative evaluated;
     (iii)  expenditures  required to perform all other related work required to
     commence  commercial  production  of  Products  and, if applicable, process
     Products  (including reasonable estimates of working capital requirements);
     and (iv) all other direct and indirect costs and general and administrative
     expenses  that  may  be required for a proper evaluation of the Development
     and Mining alternatives and annual production levels evaluated. The capital
     cost  estimates  shall  include  a  schedule of the timing of the estimated
     capital  requirements  for  each  alternative;

(c)  A  reasonable  estimate  of  the annual expenditures required for the first
     year  of  Operations  after  completion of the capital program described in
     SUBSECTION  10.8(B)  for  each  Development  alternative evaluated, and for
     -------------------
     subsequent  years  of Operations, including estimates of annual production,
     processing,  administrative,  operating and maintenance expenditures, taxes
     (other  than  income  taxes),  working  capital  requirements,  royalty and
     purchase  obligations,  equipment  leasing or supply contract expenditures,
     work  commitments,  Environmental  Compliance  costs,  post-Operations
     Environmental  Compliance  and  Continuing Obligations funding requirements
     and  all  other  anticipated  costs of such Operations. This analysis shall
     also  include  an  estimate  of the number of employees required to conduct
     such  Operations  for  each  alternative;

<PAGE>

(d)  A  review  of the nature, extent and rated capacity of the mine, machinery,
     equipment  and  other facilities preliminarily estimated to be required for
     the  purpose of producing and marketing Products under each Development and
     Mining  alternative  analyzed;  (e)an  analysis  (and  sensitivity analyses
     reasonably  requested  by  either Member), based on various target rates of
     return  and  price assumptions requested by either Member, of whether it is
     technically,  environmentally,  and  economically  feasible  to  place  a
     prospective  ore  body  or  deposit  within  the Properties into commercial
     production  for  each  of  the Development and Mining alternatives analyzed
     (including  a  discounted  cash flow rate of return investment analysis for
     each  alternative  and  net  present  value estimate using various discount
     rates  requested  by  either  Member);  and

(f)  Such  other  information  as  the  Management  Committee deems appropriate.
     Within twenty (20) days after delivery of the Pre-Feasibility Study summary
     to  the  Members,  a Management Committee meeting shall be convened for the
     purposes  of  reviewing the Pre-Feasibility Study summary and selecting one
     or  more  Approved  Alternatives,  if  any.

     10.9     PROGRAMS  AND  BUDGETS  FOR FEASIBILITY STUDY.  Within twenty (20)
days  following  the  selection  of  an  Approved Alternative, the Manager shall
submit  to  the Management Committee a Program and a Budget, which shall include
necessary  Operations, for the preparation of a Feasibility Study. A Feasibility
Study  may  be prepared by the Manager, Feasibility Contractors, or both, or may
be  prepared  by  the  Manager  and  audited  by Feasibility Contractors, as the
Management  Committee  determines.

10.10     DEVELOPMENT  PROGRAMS  AND  BUDGETS;  PROJECT  FINANCING.

(a)  Unless  otherwise determined by the Management Committee, the Manager shall
     not  submit  to  the  Management  Committee  a Program and Budget including
     Development  of  the  mine described in a completed Feasibility Study until
     sixty  (60) days following the receipt by Manager of the Feasibility Study.
     The Program and Budget, which includes Development of the mine described in
     the  completed  Feasibility  Study, shall be based on the estimated cost of
     Development  described  in  the  Feasibility  Study  for  the  Approved
     Alternative,  unless  otherwise  directed  by  the  Management  Committee.

(b)  Promptly  following  adoption  of  the  Program  and Budget, which includes
     Development  as described in a completed Feasibility Study, but in no event
     more  than  sixty  (60)  days  thereafter,  the Manager shall submit to the
     Management  Committee  a  report  on material bids received for Development
     work  ("BID  REPORT").  If  bids  described in the Bid Report result in the
     aggregate  cost  of  Development  work  exceeding  one  hundred and fifteen
     percent  (115%)  of the Development cost estimates that formed the basis of
     the  Development  component  of the adopted Program and Budget, the Program
     and  Budget,  which  includes relevant Development, shall be deemed to have
     been  re-submitted to the Management Committee based on the aggregate costs
     as described in the Bid Report on the date of receipt of the Bid Report and
     shall  be  reviewed  and  adopted in accordance with SECTIONS 8.2 and 10.4.
                                                          ------------     -----

<PAGE>

(c)  If  the Management Committee approves the Development of the mine described
     in  a Feasibility Study and also decides to seek Project Financing for such
     mine,  each  Member  shall, at its own cost, cooperate in seeking to obtain
     Project  Financing for such mine; provided, however, that all fees, charges
     and  costs (including attorneys and technical consultants fees) paid to the
     Project  Financing  lenders  shall be borne by the Members in proportion to
     their  Ownership  Interests,  unless such fees are capitalized as a part of
     the  Project  Financing.

     10.11     EXPANSION  OR  MODIFICATION PROGRAMS AND BUDGETS. Any Program and
Budget  proposed  by  the  Manager  involving Expansion or Modification shall be
based  on  a Feasibility Study prepared by the Manager, Feasibility Contractors,
or  both,  or prepared by the Manager and audited by Feasibility Contractors, as
the  Management  Committee  determines.  The  Program  and Budget, which include
Expansion  or  Modification,  shall  be submitted for review and approval by the
Management  Committee within sixty (60) days following receipt by the Manager of
such  Feasibility  Study.

     10.12  BUDGET  OVERRUNS;  PROGRAM CHANGES. For Programs and Budgets adopted
after  completion  of BMGE's Initial Contribution, the Manager shall immediately
notify  the  Management  Committee  of  any  material  departure from an adopted
Program  and  Budget.  If  the  Manager  exceeds  an adopted Budget by more than
fifteen  percent (15%) in the aggregate, then the excess over ten percent (10%),
unless authorized or ratified by the Management Committee, shall be for the sole
account of the Manager and such excess shall not be included in the calculations
of  the  Ownership  Interests  nor  deemed  a contribution under this Agreement.
Budget overruns of fifteen percent (15%) or less in the aggregate shall be borne
by  the  Members  in  proportion  to  their  respective  Ownership  Interests.

     10.13  SUPPLEMENTAL  BUSINESS  ARRANGEMENT.  At any time during the term of
this Agreement, the Management Committee may determine by unanimous vote of both
Members  after BMGE's Initial Contribution obligations have been fully satisfied
that  it  is appropriate to segregate the Area of Interest into areas subject to
separate  Programs  and  Budgets for purposes of conducting further Exploration,
Pre-Feasibility  or  Feasibility  Studies, Development, or Mining. At such time,
the  Management  Committee  shall designate which portion of the Properties will
comprise  an  area  of  interest  under  a  separate  business  arrangement
("SUPPLEMENTAL  BUSINESS  ARRANGEMENT")  for  the  purpose of further exploring,
analyzing,  developing,  and  mining  such  portion  of  the  Properties.  The
Supplemental  Business Arrangement shall substantially reflect the same terms as
this  Agreement,  with  rights  and interests of the Members in the Supplemental
Business Arrangement identical to the rights and interests of the Members in the
Company  at  the  time  of  the  designation,  unless otherwise agreed to by the
Members,  and  with  the Members agreeing to new Capital and Equity Accounts and
other  terms  necessary for the Supplemental Business Arrangement to comply with
the  nature  and  purpose  of the designation. Following the effectuation of the
Supplemental  Business Arrangement, this Agreement shall terminate insofar as it
affects  the  Properties  covered  by  the  Supplemental  Business  Arrangement.

                     ARTICLE XI     ACCOUNTS AND SETTLEMENTS

     11.1     MONTHLY  STATEMENTS.  After  completion  of  BMGE's  Initial
Contribution,  the  Manager  shall  promptly  submit to the Management Committee
monthly  statements  of  account reflecting in reasonable detail the charges and
credits  to  the  Business  Account  during  the  preceding  month.

     11.2  CASH CALLS. Except as otherwise provided in EXHIBIT I on the basis of
                                                       ---------
each  adopted  Program  and  Budget Stage, the Manager shall submit prior to the
last  day  of  each month a billing for estimated cash requirements for the next
month.  Within  ten  (10)  days after receipt of each billing, each Member shall
advance  its  proportionate  share  of such cash requirements. The Manager shall
record  all  funds  received  in  the Business Account. The Manager shall at all
times  maintain  a  cash balance approximately equal to the rate of disbursement
for  up  to  ten  (10)  days. All funds in excess of immediate cash requirements
shall  be  invested  by  the  Manager  for  the  benefit  of the Company in cash
management  accounts  and investments selected at the discretion of the Manager,
which accounts may include, but are not limited to, money market investments and
money  market  funds.

     11.3  FAILURE TO MEET CASH CALLS. Except as otherwise provided in EXHIBIT I
                                                                       ---------
a  Member that fails to meet cash calls in the amount and at the times specified
in  SECTION 11.2 shall be in default, and the amounts of the defaulted cash call
    ------------
shall  bear  interest  from  the  date  due  at an annual rate equal to ten (10)
percentage  points  over  the  Prime  Rate,  but  in  no event shall the rate of
interest  exceed the maximum permitted by Law. Such interest shall accrue to the
benefit  of and be payable to the non-defaulting Member, but shall not be deemed
as  amounts contributed by the defaulting Member in the event dilution occurs in
accordance  with SUBSECTION 4.2(C). In addition to any other rights and remedies
                 -----------------
available to it by Law, the non-defaulting Member shall have those other rights,
remedies,  and  elections  specified  in  SECTIONS  11.4  and  11.5.
                                          --------------------------

     11.4  COVER  PAYMENT. If a Member defaults in making a contribution or cash
call  required by an adopted Program and Budget Stage, the non-defaulting Member
may, but shall not be obligated to, advance some portion or all of the amount in
default  on  behalf of the defaulting Member (a "COVER PAYMENT"). Each and every
                                                 --------------
Cover  Payment  shall constitute a demand loan bearing interest from the date of
the advance at the rate provided in SECTION 11.3. If more than one Cover Payment
                                    ------------
is  made,  the  Cover  Payments  shall be aggregated and the rights and remedies
described  herein  pertaining  to an individual Cover Payment shall apply to the
aggregated Cover Payments. The failure to repay such loan upon demand shall be a
default.

     11.5  REMEDIES.  Except  as  otherwise  provided  in  EXHIBIT I the Members
                                                           ---------
acknowledge  that if either Member defaults in making a contribution required by
ARTICLE  III  or  a cash call, or in repaying a loan, as required under SECTIONS
------------                                                            --------
11.2, 11.3 or 11.4, whether or not a Cover Payment is made, it will be difficult
------------------
to  measure  the damages resulting from such default (it being hereby understood
and  agreed that the Members have attempted to determine such damages in advance
and  determined  that the calculation of such damages cannot be ascertained with
reasonable certainty). Both Members acknowledge and recognize that the damage to
the non-defaulting Member could be significant. In the event of such default, as
reasonable  liquidated  damages,  the non-defaulting Member may, with respect to
any  such  default  not  cured  within  twenty  (20)  days  after  notice to the
defaulting Member of such default, elect any of the following remedies by giving
notice  to the defaulting Member. Such election may be made with respect to each
failure  to meet a cash call relating to a Program and Budget, regardless of the
frequency  of  such  cash calls, provided such cash calls are made in accordance
with  SECTION  11.2.
      --------------

(a)  The  defaulting  Member grants to the non-defaulting Member a power of sale
     as  to  all  or any portion of its Ownership Interest or of its interest in
     any Assets, upon a default under SECTIONS 11.3 or 11.4. Such power shall be
                                      ---------------------
     exercised  in  the  manner  provided  by  applicable  Law or otherwise in a
     commercially  reasonable  manner  and  upon  reasonable  notice.  If  the
     non-defaulting  Member  elects  to  enforce  the  lien or security interest
     pursuant  to  the  terms of this Subsection, the defaulting Member shall be
     deemed  to  have  waived  any  available  right of redemption, any required
     valuation or appraisal of the secured property prior to sale, any available
     right  to  stay  execution  or  to  require a marshaling of assets, and any
     required  bond  in  the  event  a receiver is appointed, and the defaulting
     Member  shall  be  liable  for  any  deficiency.

(b)  The  non-defaulting  Member  may  elect  to  have  the  defaulting Member's
     Ownership  Interest  diluted  or  eliminated  as follows: (i) For a default
     occurring  before Payout relating to a Program and Budget covering in whole
     or  in  part  Exploration,  Pre-Feasibility  Study  or  Feasibility  Study
     Operations,  the  Reduced Member's Ownership Interest shall be recalculated
     by  dividing:  (X) the sum of (1) the value of the Reduced Member's Initial
     Contribution  under  SECTION  3.1,  (2)  the  total  of  all of the Reduced
                          ------------
     Member's contributions to the Company under SUBSECTION 10.5(A) or otherwise
                                                 ------------------
     pursuant  to  this Agreement and (3) the amount, if any, the Reduced Member
     contributed to the adopted current Program and Budget with respect to which
     the  default  occurred;  by  (Y) the sum of (1), (2) and (3) above for both
     Members; and then multiplying the result by one hundred. For such a default
     occurring  after  Payout,  the Reduced Member's Ownership Interest shall be
     reduced  in  an amount equal to two times the amount by which it would have
     been  reduced  if  such  default  had  occurred  before  Payout. For such a
     default,  whether  occurring  before  or  after  Payout,  the  Recalculated
     Ownership  Interest  shall  then  be  further  reduced:  (A)  for a default
     relating  exclusively  to an Exploration Program and Budget, by multiplying
     the  Recalculated  Ownership  Interest by the following percentage: 200; or
     (B)  for a default relating to a Program and Budget covering in whole or in
     part  Pre-Feasibility  Study  and/or  Feasibility  Study  Operations,  by
     multiplying  Recalculated  Ownership  Interest by the following percentage:
     25.  The  Ownership  Interest of the other Member shall be increased by the
     amount  of  the  reduction in the Ownership Interest of the Reduced Member,
     including  the  further  reduction  under SUBSECTIONS 10.5(B)(I)(A) or (B).
                                               --------------------------------
     (ii) For a default relating to a Program and Budget covering in whole or in
     part  Development  or  Mining, at the non-defaulting Member's election, the
     defaulting  Member  shall  be  deemed  to  have  withdrawn  and  to  have
     automatically relinquished its interest in the Assets to the non-defaulting
     Member;  provided,  however,  the defaulting Member shall have the right to
     receive  only from one and a quarter percent (1.25%) of Net Smelter Royalty
     Proceeds,  if  any,  and  not  from  any other source. Upon receipt of such
     amount  the defaulting Member shall thereafter have no further right, title
     or  interest  in  the  Assets. (iii) Dilution under this SUBSECTION 11.5(B)
                                                              ------------------
     shall be effective as of the date of the original default, and SECTION 10.6
                                                                    ------------
     shall  not  apply.  The  amount of any Cover Payment under SECTION 11.4 and
                                                                ------------
     interest  thereon, or any interest accrued in accordance with SECTION 11.3,
                                                                   -------------
     shall be deemed to be amounts contributed by the non-defaulting Member, and
     not  as  amounts  contributed  by  the defaulting Member. (iv) Whenever the
     Ownership  Interests  are recalculated pursuant to this SUBSECTION 11.5(B),
                                                             ------------------
     (A)  the Equity Accounts of both Members shall be adjusted to bear the same
     ratio  to each other as their recalculated Ownership Interests; and (B) the
     portion  of  Capital Account attributable to the reduced Ownership Interest
     of  the  Reduced  Member  shall  be  transferred  to  the  other  Member.

<PAGE>

(c)  If a Member has defaulted in meeting a cash call or repaying a loan, and if
     the  non-defaulting Member has made a Cover Payment, then, in addition to a
     reduction  in  the defaulting Member's Ownership Interest effected pursuant
     to  SUBSECTION  11.5(B), the non-defaulting Member shall have the right, if
         ------------------
     the  indebtedness arising from a default or Cover Payment is not discharged
     within ten (10) days of the default and upon not less than thirty (30) days
     advance  notice  to  the  defaulting  Member,  to elect to purchase all the
     right, title, and interest, whenever acquired or arising, of the defaulting
     Member  in  the  Company  and  Assets,  including  but  not  limited to its
     Ownership  Interest or interest in Net Proceeds, together with all proceeds
     from and accessions of the foregoing (collectively the "DEFAULTING MEMBER'S
     ENTIRE  INTEREST") at a purchase price equal to eighty percent (80%) of the
     fair  market  value  thereof  as  determined  by  a  qualified  independent
     appraiser  appointed by the non-defaulting Member. If the defaulting Member
     conveys notice of objection to the person so appointed within ten (10) days
     after receiving notice thereof, then an independent and qualified appraiser
     shall  be  appointed  by the joint action of the appraiser appointed by the
     non-defaulting  Member  and  a qualified independent appraiser appointed by
     the  defaulting  Member;  provided,  however, that if the defaulting Member
     fails  to  designate  a  qualified  independent  appraiser for such purpose
     within ten (10) days after giving notice of such objection, then the person
     originally  designated  by  the  non-defaulting  Member  shall serve as the
     appraiser;  provided  further,  that if the appraisers appointed by each of
     the  Members fail to appoint a third qualified independent appraiser within
     five  (5) days after the appointment of the last of them, then an appraiser
     shall  be  appointed by a judge of a court of competent jurisdiction in the
     state  in  which  the  Assets  are  situated upon the application of either
     Member.  There  shall  be  withheld  from  the purchase price payable, upon
     transfer  of  the  Defaulting  Member's  Entire Interest, the amount of any
     Cover Payment under SECTION 11.4 and unpaid interest thereon to the date of
     such  transfer,  or  any unpaid interest accrued in accordance with SECTION
     11.3 to the date of such transfer. Upon payment of such purchase price, the
     defaulting  Member  shall  be  deemed  to  have  relinquished  all  of  the
     Defaulting  Member's  Entire  Interest  to  the  non-defaulting  Member.

     11.6     AUDITS.

(a)  After  completion  of  BMGE's Initial Contribution, within ninety (90) days
     after  the  end of each calendar year, at the request of a Member, an audit
     shall  be  completed  by  certified  public  accountants  selected  by, and
     independent  of,  the  Manager.  The audit shall be conducted in accordance
     with  generally  accepted  auditing standards and shall cover all books and
     records  maintained  by  the Manager pursuant to this Agreement, all Assets
     and Encumbrances, and all transactions and Operations conducted during such
     calendar year, including production and inventory records and all costs for
     which  the Manager sought reimbursement under this Agreement, together with
     all  other  matters  customarily  included  in  such  audits.  All  written
     exceptions  to  and  claims upon the Manager for discrepancies disclosed by
     such  audit  shall  be made not more than three (3) months after receipt of
     the  audit  report,  unless  either Member elects to conduct an independent
     audit  pursuant  to  SUBSECTION 11.6(B) which is ongoing at the end of such
                          ------------------
     three  (3)  month  period,  in which case such exceptions and claims may be
     made  within the period provided in SUBSECTION 11.6(B). Failure to make any
     such  exception  or claim within such period shall mean the audit is deemed
     to  be  correct  and  binding upon the Members.The cost of all audits under
     this  Subsection  shall  be  charged  to  the  Business  Account.

(b)  Notwithstanding  the annual audit conducted by certified public accountants
     selected  by  the  Manager,  each  Member  shall  have the right to have an
     independent audit of all Company books, records and accounts, including all
     charges  to the Business Account. This audit shall review all issues raised
     by  the  requesting  Member, with all costs borne by the requesting Member.
     The  requesting  Member  shall give the other Member thirty (30) days prior
     notice  of such audit. Any audit conducted on behalf of either Member shall
     be  made during the Manager's normal business hours and shall not interfere
     with  Operations.  Neither Member shall have the right to audit records and
     accounts  of  the  Company relating to transactions or Operations more than
     twenty-four  (24)  months  after  the  calendar  year  during  which  such
     transactions,  or  transactions related to such Operations, were charged to
     the Business Account. All written exceptions to and claims upon the Manager
     for discrepancies disclosed by such audit shall be made not more than three
     (3)  months  after  completion and delivery of such audit, or they shall be
     deemed  waived.

<PAGE>

                           ARTICLE XII     PROPERTIES

     12.1  ROYALTIES,  PRODUCTION  TAXES AND OTHER PAYMENTS BASED ON PRODUCTION.
All  required  payments  of  production  royalties, taxes based on production of
Products,  and  other  payments  out  of  production  to  private  parties  and
governmental  entities,  shall be determined and made by the Company in a timely
manner  and  otherwise  in  accordance  with applicable laws and agreements. The
Manager  shall  furnish  to  the Members evidence of timely payment for all such
required  payments.  In  the  event  the Company fails to make any such required
payment,  any Member shall have the right to make such payment and shall thereby
become subrogated to the rights of such third party; provided, however, that the
making  of  any  such  payment  on  behalf  of  the Company shall not constitute
acceptance  by  the  paying  Member of any liability to such third party for the
underlying  obligation.

     12.2  ABANDONMENT  AND  SURRENDER. Either Member may request the Management
Committee  to  authorize  the Manager to surrender or abandon part or all of the
Properties.  At  the option of the other Member, the Company shall assign to the
objecting  Member  or  such  other  Person as the objecting Member specifies, by
special  warranty  deed  and  without  cost  to the objecting Member, all of the
Company's interest in the Properties sought to be abandoned or surrendered, free
and  clear  of  all  Encumbrances created by, through or under the Company other
than  those  to  which  both  Members  have  agreed.  Upon  the assignment, such
properties  shall  cease  to  be  part  of  the  Properties.

                ARTICLE XIII     CONFIDENTIALITY, OWNERSHIP, USE
                          AND DISCLOSURE OF INFORMATION

     13.1  BUSINESS INFORMATION. All Business Information shall be owned jointly
by  the  Members  as  their  Ownership Interests are determined pursuant to this
Agreement.  Both  before  and after the termination of the Company, all Business
Information  may  be  used  by  either  Member  for  any purpose, whether or not
competitive  with  the  Business, without consulting with, or obligation to, the
other  Member.  Except  as provided in SECTIONS 13.3 and 13.4, or with the prior
                                       ----------------------
written consent of the other Member, each Member shall keep confidential and not
disclose  to  any  third  party  or  the  public  any  portion  of  the Business
Information  that  constitutes  Confidential  Information.

<PAGE>

     13.2  MEMBER  INFORMATION.  In   performing  its   obligations  under  this
Agreement, neither Member shall be obligated to disclose any Member Information.
If  a Member elects to disclose Member Information in performing its obligations
under  this  Agreement, such Member Information, together with all improvements,
enhancements,  refinements  and incremental additions to such Member Information
that  are  developed,  conceived,  originated  or  obtained  by either Member in
performing  its obligation under this Agreement ("ENHANCEMENTS"), shall be owned
exclusively  by  the  Member that originally developed, conceived, originated or
obtained  such Member Information. Each Member may use and enjoy the benefits of
such  Member  Information  and  Enhancements  in  the  conduct  of  the Business
hereunder,  but  the Member that did not originally develop, conceive, originate
or  obtain  such  Member  Information  may  not  use such Member Information and
Enhancements  for any other purpose. Except as provided in SECTION 13.4, or with
                                                           ------------
the  prior written consent of the other Member, which consent may be withheld in
such  Member's  sole  discretion,  each  Member  shall keep confidential and not
disclose  to any third party or the public any portion of Member Information and
Enhancements  owned  by  the  other  Member  that  constitutes  Confidential
Information.

     13.3  PERMITTED  DISCLOSURE  OF  CONFIDENTIAL  BUSINESS INFORMATION. Either
Member  may  disclose  Business  Information  that  is Confidential Information:

(a)  To  a  Member's  officers,  directors,  partners,  members,  employees,
     Affiliates,  shareholders,  agents,  attorneys,  accountants,  consultants,
     contractors,  subcontractors  or  advisors,  for  the  sole purpose of such
     Member's  performance  of  its  obligations  under  this  Agreement;

(b)  To  any  party to whom the disclosing Member contemplates a Transfer of all
     or  any  part of its Ownership Interest, for the sole purpose of evaluating
     the  proposed  Transfer;

(c)  To  any  actual  or  potential lender, underwriter or investor for the sole
     purpose  of  evaluating  whether  to  make  a  loan to or investment in the
     disclosing  Member; or (d) to a third party with whom the disclosing Member
     contemplates  any  independent  business  activity  or  operation.

     The  Member  disclosing  Confidential  Information pursuant to this SECTION
                                                                         -------
13.3,  shall  disclose  such Confidential Information to only those parties that

have  a  bona  fide need to have access to such Confidential Information for the
purpose  for  which  disclosure  to such parties is permitted under this SECTION
                                                                         -------
13.3  and that have agreed in writing supplied to, and enforceable by, the other

Member  to  protect the Confidential Information from further disclosure, to use
such  Confidential Information solely for such purpose and to otherwise be bound
by  the provisions of this ARTICLE XIII. Such writing shall not preclude parties
                           ------------
described  in  SUBSECTION 13.3(B) from discussing and completing a Transfer with
               ------------------
the  other  Member.  The  Member  disclosing  Confidential  Information shall be
responsible and liable for any use or disclosure of the Confidential Information
by  such  parties  in  violation  of  this  Agreement  and  such  other writing.

<PAGE>

     13.4 DISCLOSURE REQUIRED BY LAW. Notwithstanding anything contained in this
Article,  a  Member may disclose any Confidential Information if, in the opinion
of  the  disclosing  Member's  legal  counsel:  (a)  such  disclosure is legally
required  to  be  made  in a judicial, administrative or governmental proceeding
pursuant  to  a valid subpoena or other applicable order; or (b) such disclosure
is  legally  required to be made pursuant to the rules or regulations of a stock
exchange  or  similar  trading  market  applicable  to  the  disclosing  Member.

     Prior  to  any  disclosure  of  Confidential Information under this SECTION
                                                                         -------
13.4,  the  disclosing Member shall give the other Member at least ten (10) days
prior  written  notice (unless less time is permitted by such rules, regulations
or  proceeding)  and,  in  making  such  disclosure, the disclosing Member shall
disclose  only that portion of Confidential Information required to be disclosed
and  shall  take all reasonable efforts to preserve the confidentiality thereof,
including,  without  limitation,  obtaining protective orders and supporting the
other  Member  in  intervention  in  any  such  proceeding.

     13.5  PUBLIC ANNOUNCEMENTS. Prior to making or issuing any press release or
other  public  announcement  or  disclosure  of Business Information that is not
Confidential  Information, a Member shall first consult with the other Member as
to the content and timing of such announcement or disclosure, unless in the good
faith  judgment of such Member, there is not sufficient time to consult with the
other  Member  before  such  announcement  or  disclosure  must  be  made  under
applicable Laws; but in such event, the disclosing Member shall notify the other
Member, as soon as possible, of the pendency of such announcement or disclosure,
and  it  shall notify the other Member before such announcement or disclosure is
made  if  at  all  reasonably  possible.  Any  press  release  or  other  public
announcement  or  disclosure  to  be  issued  by  either Member relating to this
Business  shall  also  identify  the  other  Member.

                   ARTICLE XIV     RESIGNATION AND DISSOLUTION

     14.1     EVENTS  OF  DISSOLUTION.  The  Company shall be dissolved upon the
occurrence  of  any  of  the  following:

(a)  Upon  expiration  of term of this Agreement in accordance with SECTION 2.5;
                                                                    ------------

(b)  Upon  the  unanimous  written  agreement  of  the  Members;

(c)  At the election of either Member upon sixty (60) days notice of termination
     to  the  other Member, if the Management Committee fails to adopt a Program
     and  Budget  Stage  for three (3) months after the expiration of the latest
     adopted  Program  and  Budget;

<PAGE>

(d)  Upon  the  resignation  of  a  Member  pursuant to SECTION 14.2 or upon the
                                                        ------------
     bankruptcy,  insolvency,  dissolution  or  assignment  for  the  benefit of
     creditors  of  a  Member;  or

(e)  as  otherwise  provided  by  the  Act.

     14.2  RESIGNATION.  A Member may elect to resign from the Company by (a) in
the  case  of BMGE, failing to complete its Initial Contributions as required by
SUBSECTION  3.1(B),  or  (b)  giving notice to the other Member of the effective
------------------
date  of  resignation,  which  shall be the later of the end of the then current
Program  Period  or  thirty  (30)  days  after  the  date  of  the  notice. Upon
resignation  by  a  Member,  the  resigning  Member  shall  be  deemed  to  have
transferred to the remaining Member all of its Ownership Interest, including all
of its interest in the Assets and its Capital Account, without cost and free and
clear  of  all  Encumbrances arising by, through or under such resigning Member,
except  those  described  in  PARAGRAPH 1.1 OF EXHIBIT A and those to which both
                              --------------------------
Members  have  agreed.  The  resigning  Member  shall  execute  and  deliver all
instruments  as  may be necessary in the reasonable judgment of the other Member
to  effect  the  transfer  of its interests in the Company and the Assets to the
other  Member.  A resigning Member shall have no right to receive the fair value
of  his Ownership Interest pursuant to 18-604 of the Act. If within a sixty (60)
day  period  both  Members  elect to withdraw, then the Company shall instead be
deemed  to have been terminated by the written agreement of the Members pursuant
to  SECTION  14.1(B).
    ----------------

     14.3 DISPOSITION OF ASSETS ON DISSOLUTION. Promptly after dissolution under
SECTION  14.1,  the  Manager  shall  take  all  action  necessary to wind up the
-------------
activities  of the Company, in accordance with EXHIBIT C. All costs and expenses
                                               ---------
incurred  in  connection  with  the dissolution of the Company shall be expenses
chargeable  to  the  Business  Account.

     14.4  FILING OF CERTIFICATE OF CANCELLATION. Upon completion of the winding
up  of the affairs of the Company, the Manager shall promptly file a Certificate
of  Cancellation  with  the  Office  of  the  Secretary of State of the State of
Nevada.  If  the  Manager  has  caused  the  dissolution of the Company, whether
voluntarily  or  involuntarily, then a person selected by a majority vote of the
Members  to  wind  up  the  affairs of the Company shall file the Certificate of
Cancellation.

     14.5  RIGHT  TO  DATA  AFTER  DISSOLUTION. After dissolution of the Company
pursuant  to SUBSECTIONS 14.1(A), (B), (C) or (E), each Member shall be entitled
             -------------------  ---  ---    ---
to  make  copies  of  all  applicable  information acquired hereunder before the
effective  date of termination not previously furnished to it, but a bankrupt or
resigning  Member  causing  a  dissolution of the Company pursuant to SUBSECTION
                                                                      ----------
14.1(D)  shall  not  be  entitled  to  any  such  copies.
-------

     14.6  CONTINUING  AUTHORITY.  On  dissolution  of the Company under SECTION
                                                                         -------
14.1,  or  the  deemed  resignation of either Member pursuant to SECTIONS 3.2 or
----                                                             ------------
11.5,  the  Member  that was the Manager prior to such dissolution (or the other
----
Member  in  the  event of a resignation by the Manager) shall have the power and
authority  to  do  all  things  on  behalf  of  both Members that are reasonably
necessary  or  convenient  to:  (a)  wind  up  Operations  and  (b) complete any
transaction  and  satisfy any obligation, unfinished or unsatisfied, at the time
of  such termination or resignation, if the transaction or obligation arises out
of  Operations  prior to such termination or resignation. The Manager shall have
the  power  and  authority  to grant or receive extensions of time or change the
method  of payment of an already existing liability or obligation, prosecute and
defend  actions  on  behalf  of the Company and either or both Members, encumber
Assets, and take any other reasonable action in any matter with respect to which
the  former Members continue to have, or appear or are alleged to have, a common
interest  or  a  common  liability.

<PAGE>

                             ARTICLE XV     DISPUTES

     15.1     GOVERNING  LAW.  Except  for matters of title to the Properties or
their  Transfer,  which  shall  be  governed  by  the  law  of their situs, this
Agreement  shall  be  governed by and interpreted in accordance with the laws of
the  State  of Nevada, without regard for any conflict of laws or choice of laws
principles that would permit or require the application of the laws of any other
jurisdiction.

     15.2  FORUM SELECTION. The parties submit to the jurisdiction of the Second
Judicial  Court  of  the  State of Nevada, Washoe County, Nevada, and the United
States  District  Court  for  the  District  of  Nevada.  The  parties waive any
objections  to  the  jurisdiction  of  such  courts  and venue of any actions or
proceedings  in  such  courts  arising  from  or  relating  to  this  Agreement.

     15.3  ARBITRATION. All disputes arising from or relating to this Agreement,
including  any  dispute  concerning  the  enforcement  or  construction  of this
Agreement, shall be decided and determined by arbitration in accordance with the
provision  of  Chapter 30 of the Nevada Revised Statutes and, as applicable, the
Commercial  Arbitration  Rules  of  the  American  Arbitration  Association. The
arbitration  shall  be  administered by and conducted before a single arbitrator
who  must  be an independent attorney licensed to practice law or an independent
geologist  or  mining  engineer  who  is  recognized  as  having  experience and
knowledge  of  mining contract law and mining industry customs and practices. No
person  having  a  prior  or  existing  attorney-client,  business   or   family
relationship  with  any of the parties or their principals shall be qualified to
act  as  an  arbitrator.  The  arbitration  shall  be  held  in  Reno,  Nevada.

15.4     DISPUTE  RESOLUTION.  All  disputes arising under or in connection with
this  Agreement  which cannot be resolved by agreement between the Members shall
be  resolved  in  accordance  with  applicable Law. If any legal action or other
proceeding  is  brought  for the enforcement of this Agreement, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the  provisions  of  this  Agreement, the successful or substantially prevailing
Member  shall  be entitled to recover reasonable attorneys' fees and other costs
incurred  in that action or proceeding, in addition to any other relief to which
it  or  they  may  be  entitled.

<PAGE>

                       ARTICLE XVI     GENERAL PROVISIONS

     16.1     NOTICES.  All  notices,  payments  and other required or permitted
communications  ("NOTICES")  to  either Member shall be in writing, and shall be
addressed  respectively  as  follows:

     If  to  BMGE:

               Attention:            James  E.  Mckay
               Mailing  Address:     One  East  Liberty,  Sixth  Floor
                                     Reno,  Nevada  89504
               Telephone:            775-686-6081
               Facsimile:            775-686-6066
               E-Mail:               jmckay@mckay.reno.nv.us
               With  a  Copy  to:    Mark  D.  Kucher
               Mailing  Address:     One  East  Liberty,  Sixth  Floor
                                     Reno,  Nevada  89504
               E-Mail:               kucher@earthlink.net

     If  to  NGXS:

               Attention:            Kenneth  N.  Tullar
               Mailing  Address:     101  Brownstone  Drive
                                     Reno,  Nevada  89512
               Telephone:            775-359-7722
               Facsimile:            775-359-7722
               E-Mail:               NvAuX@aol.com
               With  a  Copy  to:    Wade  A.  Hodges
               Mailing  Address:     14370  Riata  Circle
                                     Reno,  Nevada  89511-5702
               E-Mail:               WAHodges@aol.com

     All  Notices  shall be given (a) by personal delivery to the Member, (b) by
electronic  communication,  capable  of producing a printed transmission, (c) by
registered  or  certified  mail return receipt requested, or (d) by overnight or
other  express  courier  service.  All  Notices  shall be effective and shall be
deemed  given on the date of receipt at the principal address if received during
normal business hours, and, if not received during normal business hours, on the
next  business  day following receipt, or if by electronic communication, on the
date  of  such  communication. Either Member may change its address by Notice to
the  other  Member.

     16.2  GENDER.  The  singular  shall  include the plural, and the plural the
singular  wherever the context so requires, and the masculine, the feminine, and
the  neuter  genders  shall  be  mutually  inclusive.

     16.3  CURRENCY. All references to "dollars" or "$" herein shall mean lawful
currency  of  the  United  States  of  America.

     16.4 HEADINGS. The subject headings of the Sections and Subsections of this
Agreement and the Paragraphs and Subparagraphs of the Exhibits to this Agreement
are  included  for  purposes  of  convenience  only,  and  shall  not affect the
construction  or  interpretation  of  any  of  its  provisions.

<PAGE>

     16.5  WAIVER.  The  failure  of  either  Member  to  insist  on  the strict
performance  of  any provision of this Agreement or to exercise any right, power
or remedy upon a breach hereof shall not constitute a waiver of any provision of
this  Agreement or limit such Member's right thereafter to enforce any provision
or  exercise  any  right.

     16.6  MODIFICATION. No modification of this Agreement shall be valid unless
made  in  writing  and  duly  executed  by  both  Members.

     16.7  FORCE  MAJEURE.  Except  for the obligation to make payments when due
hereunder,  the obligations of a Member shall be suspended to the extent and for
the  period  that  performance is prevented by any cause, whether foreseeable or
unforeseeable,  beyond  its  reasonable  control, including, without limitation,
labor  disputes  (however  arising  and  whether  or  not  employee  demands are
reasonable  or  within  the  power  of  the Member to grant); acts of God; Laws,
instructions  or requests of any government or governmental entity; judgments or
orders  of  any  court;  inability  to obtain on reasonably acceptable terms any
public  or  private  license,  permit  or  other  authorization;  curtailment or
suspension  of  activities  to  remedy or avoid an actual or alleged, present or
prospective  violation of Environmental Laws; action or inaction by any federal,
state  or  local  agency that delays or prevents the issuance or granting of any
approval  or  authorization required to conduct Operations beyond the reasonable
expectations  of  the  Member  seeking the approval or authorization (including,
without  limitation,  a  failure to complete any review and analysis required by
the  National  Environmental  Policy Act or any similar state law within two (2)
months  of initiation of that process); acts of war or conditions arising out of
or  attributable  to  war,  whether  declared or undeclared; riot, civil strife,
insurrection  or  rebellion;  fire,  explosion,  earthquake,  storm, flood, sink
holes, drought or other adverse weather condition; delay or failure by suppliers
or  transporters  of  materials,  parts,  supplies,  services or equipment or by
contractors'  or  subcontractors'  shortage  of,  or inability to obtain, labor,
transportation,  materials,  machinery,   equipment,  supplies,   utilities   or
services; accidents; breakdown of equipment, machinery or facilities; actions by
native  rights  groups,  environmental groups, or other similar special interest
groups;  or  any other cause whether similar or dissimilar to the foregoing. The
affected Member shall promptly give notice to the other Member of the suspension
of  performance,  stating  therein  the  nature  of  the suspension, the reasons
therefore,  and  the expected duration thereof. The affected Member shall resume
performance  as soon as reasonably possible. During the period of suspension the
obligations  of  both Members to advance funds pursuant to SECTION 11.2 shall be
reduced  to  levels  consistent  with  then  current  Operations.

     16.8  RULE AGAINST PERPETUITIES. The Members do not intend that there shall
be any violation of the Rule Against Perpetuities, the Rule Against Unreasonable
Restraints  on  the Alienation of Property, or any similar rule. Accordingly, if
any  right  or option to acquire any interest in the Properties, in an Ownership
Interest,  in  the  Assets, or in any real property exists under this Agreement,
such  right  or option must be exercised, if at all, so as to vest such interest
within  time  periods  permitted  by  applicable  rules.  If,  however, any such
violation  should  inadvertently  occur,  the  Members hereby agree that a court
shall  reform  that  provision  in such a way as to approximate most closely the
intent  of  the  Members  within  the  limits  permissible  under  such  rules.

<PAGE>

     16.9  FURTHER ASSURANCES. Each of the Members shall take, from time to time
and  without  additional  consideration,  such  further actions and execute such
additional instruments as may be reasonably necessary or convenient to implement
and  carry  out the intent and purpose of this Agreement or as may be reasonably
required  by  lenders  in  connection  with  Project  Financing.

     16.10 ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This Agreement contains the
entire  understanding  of  the  Members  and supersedes all prior agreements and
understandings  between  the Members relating to the subject matter hereof. This
Agreement  shall  be  binding  upon  and  inure to the benefit of the respective
successors  and  permitted  assigns  of  the  Members.

     16.11  COUNTERPARTS.  This  Agreement  may  be  executed  in  any number of
counterparts,  and it shall not be necessary that the signatures of both Members
be  contained  on any counterpart. Each counterpart shall be deemed an original,
but  all  counterparts  together  shall  constitute one and the same instrument.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
the  Effective  Date.

                                   BMGE
                                   By:  /s/ Mark D. Kucher
                                        -------------------------------
                                   Name:  Mark D. Kucher
                                   Title: President and Chief Executive Officer

                                   NGXS
                                   By:  /s/ Kenneth N. Tullar
                                        -------------------------------
                                   Name:  Kenneth N.  Tullar
                                   Title: President

<PAGE>

                                    EXHIBIT A

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                    EXHIBIT A     ASSETS AND AREA OF INTEREST

     1.1     INTELLECTUAL PROPERTIES AND TITLE EXCEPTIONS. NGSX grants to BMGE a
limited,  exclusive  license  to use NGXS's proprietary water chemistry database
(the  "Database"),  NGXS's  proprietary data reduction and orientation processes
for  its  GIS  database  for  the  state  of Nevada and NGXS's proprietary water
sampling  protocol.  This  license  is  limited  and BMGE shall have no right to
assign,  convey,  disclose,  lease,  license  or sub-license the Database or the
related  intellectual property without NGXS's prior written consent.  NGXS shall
retain  all  rights  of  control  and  ownership  of, in and to the Database and
related  intellectual property, including any and all additions or modifications
of  the  Database.  The  limited, exclusive license granted by NGXS to BMGE will
terminate  upon  BMGE  expending  $3,250,000  or  upon  BMGE  failing  to make a
contribution  according  to  EXHIBIT  I.
                             ----------

1.2     AREA  OF  INTEREST.  The  Area  of  Interest  is  the  State  of Nevada.

<PAGE>

                                    EXHIBIT B

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                       EXHIBIT B     ACCOUNTING PROCEDURES

     The  financing  and accounting procedures to be followed by the Manager and
the  Members  under  the Agreement are set forth below. All capitalized terms in
these  Accounting Procedures shall have the definition attributed to them in the
Agreement,  unless  defined  otherwise  herein.

     The  purpose  of  these  Accounting  Procedures  is  to establish equitable
methods  for determining charges and credits applicable to Operations. It is the
intent of the Members that neither of them shall lose or profit by reason of the
designation  of  one  of them to exercise the duties and responsibilities of the
Manager. The Members shall meet and in good faith endeavor to agree upon changes
deemed  necessary  to  correct  any  unfairness  or  inequity. In the event of a
conflict  between the provisions of these Accounting Procedures and those of the
Agreement,  the  provisions  of  the  Agreement  shall  control.

                        ARTICLE I     GENERAL PROVISIONS

     1.1     GENERAL ACCOUNTING RECORDS. The Manager shall maintain detailed and
comprehensive  cost  accounting  records  in  accordance  with  these Accounting
Procedures,  including  general  ledgers,  supporting  and  subsidiary journals,
invoices,  checks  and  other  customary  documentation, sufficient to provide a
record  of  revenues  and  expenditures  and  periodic  statements  of financial
position  and the results of Operations for managerial, tax, regulatory or other
financial,  regulatory, or legal reporting purposes related to the Company. Such
records shall be retained for the duration of the period allowed the Members for
audit  or  the  period  necessary  to  comply  with  tax  or  other  regulatory
requirements. The records shall reflect all obligations, advances and credits of
the  Members.

     1.2  CASH  MANAGEMENT  ACCOUNTS.  The  Manager  shall  maintain one or more
separate  cash  management  accounts  for  the  payment  of all expenses and the
deposit  of  all  cash  receipts  for  the  Company.

<PAGE>

     1.3  STATEMENTS AND BILLINGS. The Manager shall prepare statements and bill
the  Members  as  provided  in  ARTICLE XI of the Agreement. Payment of any such
                                ----------
billings  by  either  Member,  including  the  Manager, shall not prejudice such
Member's  right  to protest or question the correctness thereof for a period not
to  exceed twenty-four (24) months following the calendar year during which such
billings were received by such Member. All written exceptions to and claims upon
the Manager for incorrect charges, billings or statements shall be made upon the
Manager within such twenty-four (24) month period. The time period permitted for
adjustments  hereunder  shall  not  apply to adjustments resulting from periodic
inventories  as  provided  in  PARAGRAPHS  5.1  and  5.2.
                               --------------------------

                   ARTICLE II     CHARGES TO BUSINESS ACCOUNT

     Subject  to the limitations hereinafter set forth, the Manager shall charge
the  Business  Account  with  the  following:

     2.1  PROPERTY ACQUISITION COSTS, RENTALS, ROYALTIES AND OTHER PAYMENTS. All
property  acquisition  and  holding  costs,  including Governmental Fees, filing
fees,  license  fees,  costs  of  permits  and  assessment  work, delay rentals,
production  royalties,  including  any required advances, and all other payments
made  by  the  Manager  which  are necessary to acquire or maintain title to the
Assets.

     2.2  LABOR  AND  EMPLOYEE  BENEFITS.

(a)  Salaries  and  wages  of  the  Manager's  employees  directly  engaged  in
     Operations,  including  salaries  or wages of employees who are temporarily
     assigned  to  and  directly  employed  by  same.

(b)  The  Manager's cost of holiday, vacation, sickness and disability benefits,
     and  other  customary  allowances  applicable  to  the  salaries  and wages
     chargeable  under SUBPARAGRAPH 2.2(A) and PARAGRAPH 2.12. Such costs may be
                       ---------------------------------------
     charged  on a "when and as paid basis" or by "percentage assessment" on the
     amount  of  salaries  and wages. If percentage assessment is used, the rate
     shall  be applied to wages or salaries excluding overtime and bonuses. Such
     rate  shall  be  based  on  the  Manager's  cost experience and it shall be
     periodically  adjusted  at  least annually to ensure that the total of such
     charges  does  not  exceed  the  actual  cost  thereof  to  the  Manager.

(c)  The  Manager's  actual  cost of established plans for employees' group life
     insurance,  hospitalization,  pension,  retirement, stock purchase, thrift,
     bonus  (except  production  or incentive bonus plans under a union contract
     based  on  actual  rates  of  production, cost savings and other production
     factors,  and  similar  non-union  bonus plans customary in the industry or
     necessary  to  attract  competent  employees, which bonus payments shall be
     considered  salaries  and wages under SUBPARAGRAPH 2.2(A) or PARAGRAPH 2.12
                                           -------------------------------------
     rather  than  employees'  benefit  plans) and other benefit plans of a like
     nature  applicable  to  salaries  and  wages chargeable under SUBPARAGRAPHS
                                                                   -------------
     2.2(A) or PARAGRAPH 2.12, provided that the plans are limited to the extent
     ------------------------
     feasible  to  those  customary  in  the  industry.

(d)  Cost  of  assessments imposed by governmental authority that are applicable
     to  salaries  and  wages chargeable under SUBPARAGRAPH 2.2(A) and PARAGRAPH
                                               ---------------------------------
     2.12,  including  all  penalties  except  those  resulting from the willful
     ----
     misconduct  or  gross  negligence  of  the  Manager.

     2.3     MATERIALS, EQUIPMENT AND SUPPLIES. The cost of materials, equipment
and  supplies  (herein  called  "Material")  purchased  from  unaffiliated third
parties  or furnished by either Member as provided in PARAGRAPH 3.2. The Manager
                                                      -------------
shall purchase or furnish only so much Material as may be required for immediate
use  in  efficient  and  economical  Operations. The Manager shall also maintain
inventory  levels  of  Material  at  reasonable  levels  to  avoid  unnecessary
accumulation  of  surplus  stock.

     2.4  EQUIPMENT  AND FACILITIES FURNISHED BY MANAGER. The cost of machinery,
equipment  and facilities owned by the Manager and used in Operations or used to
provide  support or utility services to Operations charged at rates commensurate
with  the  actual  costs of ownership and operation of such machinery, equipment
and  facilities.  Such  rates shall include costs of maintenance, repairs, other
operating expenses, insurance, taxes, depreciation and interest at a rate not to
exceed Prime Rate plus three percent (3%) per annum. Such rates shall not exceed
the  average  commercial  rates  currently  prevailing  in  the  vicinity of the
Operations.

     2.5  TRANSPORTATION. Reasonable transportation costs incurred in connection
with  the  transportation  of  employees  and material necessary for Operations.

     2.6  CONTRACT  SERVICES  AND  UTILITIES.  The cost of contract services and
utilities  procured  from  outside  sources,  other  than  services described in
PARAGRAPHS 2.9 and 2.13. If contract services are performed by the Manager or an
-----------------------
Affiliate thereof, the cost charged to the Business Account shall not be greater
than  that for which comparable services and utilities are available in the open
market  within  the  vicinity of Operations. The cost of professional consultant
services procured from outside sources in excess of Twenty-Five Thousand Dollars
($25,000.00) per annum per contract shall not be charged to the Business Account
unless  approved  by  the  Management  Committee.

     2.7  INSURANCE  PREMIUMS.  Net  premiums  paid for insurance required to be
carried  for  Operations  for the protection of the Members. When Operations are
conducted in an area where the Manager may self-insure for Workers' Compensation
and/or  Employer's  Liability  under state law, the Manager may elect to include
such  risks  in  its  self-insurance  program  and  shall  charge  its  costs of
self-insuring  such  risks  to  the  Business Account provided that such charges
shall  not  exceed  published  manual  rates.

     2.8 DAMAGES AND LOSSES. All costs in excess of insurance proceeds necessary
to  repair  or  replace  damage or losses to any Assets resulting from any cause
other  than  the  willful  misconduct  or  gross  negligence of the Manager. The
Manager shall furnish the Management Committee with written notice of damages or
losses  as  soon  as practicable after a report thereof has been received by the
Manager.

<PAGE>

     2.9 LEGAL AND REGULATORY EXPENSE. Except as otherwise provided in PARAGRAPH
                                                                       ---------
2.13,  all legal and regulatory costs and expenses incurred in or resulting from
----
Operations  or  necessary  to  protect  or  recover  the  Assets of the Company,
including  costs  of  title  investigation  and  title  curative  services.  All
attorneys'  fees  and  other  legal  costs  to  handle,  investigate, and settle
litigation  or  claims,  and  amounts  paid  in settlement of such litigation or
claims  in  excess  of Twenty-Five Thousand Dollars ($25,000.00) per annum shall
not  be  charged  to  the  Business  Account  unless  approved by the Management
Committee.

     2.10  AUDIT.  Cost  of  annual  audits  under  SUBSECTION  11.6(A)  of  the
                                                    -------------------
Agreement.

     2.11  TAXES.  All  taxes,  assessments  and  like charges on Operations and
Assets  which have been paid by the Manager for the benefit of the Members. Each
Member  is separately responsible for taxes determined or measured by a Member's
sales  revenue  or  net  income.

     2.12  FIELD  SUPERVISION  AND CAMP EXPENSES. A pro rata portion of: (i) the
salaries  and  expenses  of  the  Manager's  superintendent  and other employees
serving  Operations whose time is not allocated directly to such Operations, and
(ii)  the  costs  of  maintaining  and operating an office and any necessary sub
office  and  (iii)  all  necessary  camps,  including  housing  facilities  for
employees,  used  for  Operations.  The  expense  of  those facilities, less any
revenue  there from, shall include depreciation or a fair monthly rental in lieu
of  depreciation of the investment. The total of such charges for all Properties
served  by  the  Manager's  employees and facilities shall be apportioned to the
Business  Account  on  the  basis  of  a  ratio to be approved by the Management
Committee.

     2.13  ADMINISTRATIVE  CHARGE.

(a)  Each  month,  the  Manager shall charge the Business Account a sum for each
     phase  of  Operations as provided below, which shall be a liquidated amount
     to  reimburse  the  Manager  for  its  home office overhead and general and
     administrative  expenses  to  conduct  each  phase of Operations, and which
     shall be in lieu of any management fee and for taxes based on production of
     Products: (i) Exploration Phase three percent (3%) of Allowable Costs up to
     five  million Dollars ($5,000,000), and one percent (1%) of Allowable Costs
     over five million Dollars ($5,000,000). (ii) Development Phase five percent
     (5%)  of  Allowable  Costs up to ten million Dollars ($10,000,000), and one
     percent  (1%)  of  Allowable  Costs over ten million Dollars ($10,000,000).
     (iii)  Major  Construction Phase ten percent (10%) of Allowable Costs up to
     twenty  five  million  Dollars  ($25,000,000),  and  one  percent  (1%)  of
     Allowable Costs over twenty five million Dollars ($25,000,000). (iv) Mining
     Phase  ten  percent  (10%)  of  Allowable  Costs.

<PAGE>

(b)  The term "Allowable Costs" as used in this Paragraph for a particular phase
     of Operations shall mean all charges to the Business Account excluding: (i)
     the  administrative charge referred to herein; (ii) depreciation, depletion
     or  amortization of tangible or intangible Assets; (iii) amounts charged in
     accordance  with  PARAGRAPHS  2.1  and  2.9;  and (iv) marketing costs. The
                       -------------------------
     Manager  shall  attribute  such  Allowable  Costs  to a particular phase of
     Operations  by applying the following guidelines: (A) The Exploration Phase
     shall  cover  those  Operations  conducted  to  ascertain  the  existence,
     location,  extent  or  quantity  of  any deposit of ore or mineral. (B) The
     Development  Phase  shall cover those Operations, including Pre-Feasibility
     and  Feasibility  Study  Operations,  conducted  to  assess  a commercially
     feasible  ore  body or to extend production of an existing ore body, and to
     construct or install related fixed Assets. (C) The Major Construction Phase
     shall  include  all  Operations  involved  in  the  construction of a mill,
     smelter  or  other  ore  processing  facilities. (D) The Mining Phase shall
     include  all  other  Operations  activities  not  otherwise  covered above,
     including  activities  conducted  after  Mining  Operations  have  ceased.

(c)  Various  phases of Operations may be conducted concurrently, in which event
     the  administrative  charge  shall  be  calculated separately for Allowable
     Costs  attributable  to  each  phase.

(d)  The  monthly  administration charge determined for each phase of Operations
     shall  be  a  liquidated  amount  to  reimburse Manager for its home office
     overhead  and  general  and  administrative  expenses  for  its  conduct of
     Operations,  and shall be equitably apportioned among all of the properties
     served  during  such monthly period on the basis of a ratio approved by the
     Management  Committee.

(e)  The  following  is  a  representative  list  of  items  that constitute the
     Manager's  principal business office expenses that are expressly covered by
     the  administrative charge provided in this Paragraph, except to the extent
     that such items are directly chargeable to the Business Account under other
     provisions  of  this  Article  II:  (i)  Administrative  supervision, which
     includes  all  services  rendered  by  managers,  department  supervisors,
     officers and directors of the Manager for Operations. (ii) Accounting, data
     processing,  personnel  administration,  billing  and  record  keeping  in
     accordance  with  governmental  regulations  and  the  provisions  of  the
     Agreement,  and  preparation  of reports; (iii) The services of tax counsel
     and  tax  administration  employees  for  all  tax  matters,  including any
     protests,  except  any  outside  professional  fees  which  the  Management
     Committee  may  approve  as  a  direct charge to the Business Account; (iv)
     Routine  legal services rendered by outside sources and the Manager's legal
     staff  not  otherwise  charged to the Business Account under PARAGRAPH 2.9,
                                                                  --------------
     including  property  acquisition,  attorney  management  and oversight, and
     support  services  provided  by  Manager's  legal  staff  concerning  any
     litigation;  and  (v)  Rentals  and  other  charges  for office and records
     storage  space,  telephone  service,  office  equipment  and  supplies.

(f)  The  Management  Committee shall annually review the administrative charges
     and  shall amend the methodology or rates used to determine such charges if
     they are found to be insufficient or excessive based on the principles that
     the  Manager shall not make a profit or suffer a loss and that it should be
     fairly  and  adequately  compensated  for  its  costs  and  expenses.

     2.14     ENVIRONMENTAL  COMPLIANCE  FUND.  Costs  of reasonably anticipated
Environmental  Compliance  which, on a Program basis, shall be determined by the
Management  Committee  and  shall  be based on proportionate contributions in an
amount  sufficient  to  establish a fund, which through successive proportionate
contributions during the life of the Company, will pay for ongoing Environmental
Compliance  conducted  during Operations and which will aggregate the reasonably
anticipated  costs of mine closure, post-Operations Environmental Compliance and
Continuing  Obligations.  The Manager shall invest such amounts on behalf of the
Members  as  provided  in  SUBSECTION  9.2(S)  of  the  Agreement.
                           ------------------

     2.15  OTHER  EXPENDITURES.  Any  reasonable  direct expenditure, other than
expenditures  which  are  covered  by  the foregoing provisions, incurred by the
Manager  for  the  necessary  and  proper  conduct  of  Operations.

              ARTICLE III     BASIS OF CHARGES TO BUSINESS ACCOUNT

     3.1     PURCHASES.  Material  purchased  and  services  procured from third
parties  shall  be  charged  to  the Business Account by the Manager at invoiced
cost,  including  applicable  transfer  taxes,  less all discounts taken. If any
Material  is determined to be defective or is returned to a vendor for any other
reason,  the  Manager  shall  credit  the Business Account when an adjustment is
received  from  the  vendor.

     3.2  MATERIAL  FURNISHED  BY A MEMBER FOR USE IN THE BUSINESS. Any Material
furnished  by  either  Member  for  use in the Business or distributed to either
Member  by  the  Manager  shall  be  priced  on  the  following  basis:

(a)  New  Material.  New  Material  furnished  by  either Member shall be priced
     -------------
     F.O.B. the nearest reputable supply store or railway receiving point, where
     like  Material  is  available,  at the current replacement cost of the same
     kind of Material, exclusive of any available cash discounts, at the time it
     is  furnished  (the  "NEW  PRICE").

(b)  Used  Material.  (i)  Used  Material in sound and serviceable condition and
     --------------
     suitable  for  reuse without reconditioning shall be priced as follows: (A)
     Used  Material  furnished  by either Member shall be priced at seventy-five
     percent  (75%)  of  the  New Price; (B) Used Material distributed to either
     Member  shall  be priced (i) at seventy-five percent (75%) of the New Price
     if  such  Material  was  originally  charged to the Business Account as new
     Material,  or  (ii)  at  sixty-five  percent (65%) of the New Price if such
     Material  was  originally  charged  to  the  Business  Account as good used
     Material  at  seventy-five  percent (75%) of the New Price. (ii) Other used
     Material  that,  after  reconditioning,  will  be  further  serviceable for
     original  function  as good secondhand Material, or that is serviceable for
     original  function but not substantially suitable for reconditioning, shall
     be  priced  at  fifty  percent  (50%)  of  New  Price.  The  cost  of  any
     reconditioning  shall  be borne by the transferee. (iii) Bad-Order Material
     which is no longer usable for its original purpose without excessive repair
     cost  but  further usable for some other purpose shall be priced on a basis
     comparable  with  items  normally  used  for  that  purpose. (iv) All other
     Material,  including junk, shall be priced at a value commensurate with its
     use  or  at  prevailing  prices.

<PAGE>

(c)  Obsolete  Material.  Any  Material  that  is serviceable and usable for its
     ------------------
     original  function, but its condition is not equivalent to that which would
     justify  a  price  as  provided  above,  shall  be priced by the Management
     Committee.  Such price shall be set at a level that will result in a charge
     to the Business Account equal to the value of the service to be rendered by
     such  Material.

     3.3     PREMIUM  PRICES.  Whenever  Material  is  not readily obtainable at
published  or  listed  prices  because of national emergencies, strikes or other
unusual  circumstances  over  which  the Manager has no control, the Manager may
charge  the  Business  Account  for  the  required  Material on the basis of the
Manager's  direct  cost  and  expenses  incurred  in procuring such Material and
making  it  suitable  for  use.  The  Manager  shall  give written notice of the
proposed  charge  to  the  Members  prior  to the time when such charge is to be
billed,  whereupon  either Member shall have the right, by notifying the Manager
within  ten  days  of the delivery of the notice from the Manager, to furnish at
the  usual receiving point all or part of its share of Material suitable for use
and  acceptable  to  the  Manager.

     3.4  WARRANTY  OF  MATERIAL  FURNISHED  BY  THE MANAGER OR MEMBERS. Neither
Member  warrants  any  Material  furnished beyond any dealer's or manufacturer's
warranty  and  no  credits  shall  be made to the Business Account for defective
Material  until  adjustments  are  received  by  the  Manager  from  the dealer,
manufacturer  or  their  respective  agents.

                       ARTICLE IV     DISPOSAL OF MATERIAL

     4.1     DISPOSITION  GENERALLY.  The  Manager  shall  have no obligation to
purchase  either  Member's  interest in Material. The Management Committee shall
determine  the  disposition  of  major  items  of surplus Material, provided the
Manager  shall  have  the  right  to dispose of normal accumulations of junk and
scrap  Material  either  by  sale  or  by transfer to the Members as provided in
PARAGRAPH  4.2  below.

     4.2  DISTRIBUTION TO MEMBERS. Any Material to be distributed to the Members
shall  be  made  in  proportion to their respective Participating Interests, and
corresponding  credits  shall  be  made  to  the  Business  Account on the basis
provided  in  PARAGRAPH  3.2.
              ---------------

     4.3  SALES.  Sales  of  Material  to third parties shall be credited to the
Business  Account  at  the  net  amount  received.  Any damages or claims by the
Purchaser  shall  be  charged  back  to  the  Business Account if and when paid.

                            ARTICLE V     INVENTORIES

     5.1  PERIODIC  INVENTORIES,  NOTICE  AND  REPRESENTATIONS.  At  reasonable
intervals,  inventories  shall  be taken by the Manager, which shall include all
such  Material  as  is ordinarily considered controllable by operators of mining
properties  and  the  expense  of  conducting such periodic inventories shall be
charged  to  the  Business Account. The Manager shall give written notice to the
Members  of  its  intent  to take any inventory at least thirty (30) days before
such  inventory  is  scheduled  to  take place. A Member shall be deemed to have
accepted  the  results of any inventory taken by the Manager if the Member fails
to  be  represented  at  such  inventory.

     5.2  RECONCILIATION  AND  ADJUSTMENT  OF  INVENTORIES.  Reconciliation  of
inventory  with  charges  to  the  Business Account shall be made, and a list of
overages and shortages shall be furnished to the Management Committee within six
(6)  months after the inventory is taken. Inventory adjustments shall be made by
the  Manager to the Business Account for overages and shortages, but the Manager
shall  be  held  accountable  to  the  Company only for shortages due to lack of
reasonable  diligence.

<PAGE>

                                    EXHIBIT C

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                            EXHIBIT C     TAX MATTERS

                      ARTICLE I     EFFECT OF THIS EXHIBIT

     This  Exhibit  shall govern the relationship of the Members and the Company
with  respect  to  tax matters and the other matters addressed herein. Except as
otherwise  indicated,  capitalized  terms  used  in  this Exhibit shall have the
meanings given to them in the Agreement. In the event of a conflict between this
Exhibit  and  the  other  provisions of the Agreement, the terms of this Exhibit
shall  control.

                       ARTICLE II     TAX MATTERS PARTNER

     2.1     DESIGNATION  OF  TAX  MATTERS  PARTNER.  The  Manager  is  hereby
designated  the tax matters partner (the "TMP") as defined in Section 6231(a)(7)
of  the Internal Revenue Code of 1986 (the "CODE") and shall be responsible for,
make  elections  for,  and prepare and file any federal and state tax returns or
other  required tax forms following approval of the Management Committee. In the
event  of  any  change in Manager, the Member serving as Manager at the end of a
taxable  year  shall continue as TMP with respect to all matters concerning such
year  unless  the  TMP  for  that  year  is  required  to be changed pursuant to
applicable  Treasury  Regulations.  The  TMP  and  the  other  Member  shall use
reasonable  best  efforts  to  comply with the responsibilities outlined in this
ARTICLE II and in Sections 6221 through 6233 of the Code (including any Treasury
---------
regulations  promulgated thereunder) and in doing so shall incur no liability to
any  other  party.

     2.2  NOTICE.  Each  Member  shall  furnish  the  TMP  with such information
(including  information  specified  in  Section  6230(e)  of the Code) as it may
reasonably  request  to  permit  it to provide the Internal Revenue Service with
sufficient  information to allow proper notice to the Members in accordance with
Section  6223  of  the  Code.  The  TMP  shall  keep each Member informed of all
administrative  and  judicial  proceedings for the adjustment at the partnership
level  of  partnership  items  in  accordance  with Section 6223(g) of the Code.

<PAGE>

     2.3  INCONSISTENT  TREATMENT  OF  TAX ITEM. If an administrative proceeding
contemplated  under Section 6223 of the Code has begun, and the TMP so requests,
each Member shall notify the TMP of its treatment of any partnership item on its
federal  income  tax return that is inconsistent with the treatment of that item
on  the  partnership  return.

     2.4  EXTENSIONS  OF  LIMITATION  PERIODS.  The TMP shall not enter into any
extension  of  the  period  of limitations as provided under Section 6229 of the
Code  without first giving reasonable advance notice to the other Member of such
intended  action.

     2.5  REQUESTS  FOR  ADMINISTRATIVE  ADJUSTMENTS. Neither Member shall file,
pursuant to Section 6227 of the Code, a request for an administrative adjustment
of partnership items for any taxable year of the Company without first notifying
the  other Member. If the other Member agrees with the requested adjustment, the
TMP  shall  file  the  request  for  administrative  adjustment on behalf of the
Company.  If  consent  is not obtained within thirty (30) days after notice from
the  proposing  Member, or within the period required to timely file the request
for administrative adjustment, if shorter, either Member, including the TMP, may
file  that  request  for  administrative  adjustment  on  its  own  behalf.

     2.6  JUDICIAL PROCEEDINGS. Either Member intending to file a petition under
Section 6226, 6228 or other sections of the Code with respect to any partnership
item,  or other tax matters involving the Company, shall notify the other Member
of  such  intention and the nature of the contemplated proceeding. If the TMP is
the  Member intending to file such petition, such notice shall be given within a
reasonable  time to allow the other Member to participate in the choosing of the
forum  in which such petition will be filed. If both Members do not agree on the
appropriate  forum,  then  the  appropriate forum shall be decided in accordance
with  SECTION  8.2 of the Agreement. If a deadlock results, the TMP shall choose
      ------------
the  forum.  If  either  Member  intends  to  seek  review of any court decision
rendered as a result of a proceeding instituted under the preceding part of this
Paragraph,  such  Member  shall notify the other Member of such intended action.

     2.7  SETTLEMENTS.  The  TMP shall not bind the other Member to a settlement
agreement without first obtaining the written consent of any such Member. Either
Member  who  enters into a settlement agreement for its own account with respect
to  any  partnership  items, as defined by Section 6231(a)(3) of the Code, shall
notify the other Member of such settlement agreement and its terms within ninety
(90)  days  from  the  date  of  settlement.

     2.8  FEES  AND  EXPENSES. The TMP shall not engage legal counsel, certified
public  accountants,  or  others  without  the  prior  consent of the Management
Committee. Either Member may engage legal counsel, certified public accountants,
or  others  in  its  own behalf and at its sole cost and expense. Any reasonable
item  of  expense,  including  but  not  limited  to fees and expenses for legal
counsel,  certified  public  accountants, and others which the TMP incurs (after
proper consent by the Management Committee as provided above) in connection with
any audit, assessment, litigation, or other proceeding regarding any partnership
item, shall constitute proper charges to the Business Account and shall be borne
by  the  Members  as  any  other  item  which constitutes a direct charge to the
Business  Account  pursuant  to  the  Agreement.

<PAGE>

     2.9 SURVIVAL. The provisions of the foregoing paragraphs, including but not
limited  to  the  obligation to pay fees and expenses contained in PARAGRAPH 2.8
                                                                   -------------
above, shall survive the termination of the Company or the termination of either
Member's  interest  in the Company and shall remain binding on the Members for a
period  of  time  necessary  to resolve with the Internal Revenue Service or the
Department  of  the  Treasury  any  and all matters regarding the federal income
taxation  of  the  Company  for  the  applicable  tax  year(s).

                  ARTICLE III     TAX ELECTIONS AND ALLOCATIONS

     3.1     COMPANY  ELECTION.  It  is  understood  and agreed that the Members
intend  to  create  a partnership for United States federal and state income tax
purposes,  and,  unless otherwise agreed to hereafter by both Members, no Member
shall take any action to change the status of the Company as a partnership under
Treas.  Reg.  1.7701-3  or  similar provision of state law. It is understood and
agreed  that  the  Members  intend to create a partnership for federal and state
income  tax purposes only. The Manager shall file with the appropriate office of
the  Internal  Revenue  Service  a  partnership  income  tax return covering the
Operations.  The  Members  recognize  that the Agreement may be subject to state
income  tax statutes. The Manager shall file with the appropriate offices of the
state  agencies  any  required partnership state income tax returns. Each Member
agrees  to  furnish  to  the  Manager  any  information  it may have relating to
Operations  as  shall  be  required  for proper preparation of such returns. The
Manager shall furnish to the other Member for its review a copy of each proposed
income  tax  return  at  least  two weeks prior to the date the return is filed.

     3.2  TAX  ELECTIONS.  The  Company  shall  make the following elections for
purposes  of  all  partnership  income  tax  returns:

(a)  To  use  the  cash  method  of  accounting,  unless  required  otherwise by
     regulatory  statute.

(b)  Pursuant  to the provisions at Section 706(b)(1) of the Code, to use as its
     taxable  year  the year ended December. In this connection, BMGE represents
     that  its taxable year is the year ending December and NGXS represents that
     its  taxable  year  is  the  year  ending  December.

(c)  To  deduct  currently all development expenses to the extent possible under
     Section  616  of  the  Code.

(d)  Unless  the  Members  unanimously agree otherwise, to compute the allowance
     for  depreciation  in  respect  of all depreciable Assets using the maximum
     accelerated  tax  depreciation method and the shortest life permissible or,
     at  the  election  of  the Manager, using the units of production method of
     depreciation.

<PAGE>

(e)  To  treat  advance  royalties  as deductions from gross income for the year
     paid  or  accrued  to  the  extent  permitted  by  law.

(f)  To  adjust  the  basis  of property of the Company under Section 754 of the
     Code  at  the  request  of  either  Member;

(g)  To  amortize  over  the  shortest  permissible  period  all  organizational
     expenditures  and  business start-up expenses under Sections 195 and 709 of
     the  Code;

     Any  other  election  required or permitted to be made by the Company under
the  Code  or  any  state  tax law shall be made as determined by the Management
Committee.

     Each  Member  shall  elect  under  Section  617(a)  of  the  Code to deduct
currently all exploration expenses. Each Member reserves the right to capitalize
its  share  of  development  and/or  exploration  expenses  of  the  Company  in
accordance  with Section 59(e) of the Code, provided that a Member's election to
capitalize  all  or  any  portion of such expenses shall not affect the Member's
Capital  Account.

     3.3     ALLOCATIONS  TO  MEMBERS.  Allocations for Capital Account purposes
shall  be  in  accordance  with  the  following:

(a)  Exploration  expenses  and  development  cost deductions shall be allocated
     among the Members in accordance with their respective contributions to such
     expenses  and  costs.

(b)  Depreciation  and  amortization  deductions  with  respect to a depreciable
     Asset  shall  be  allocated  among  the  Members  in  accordance with their
     respective  contributions  to  the  adjusted basis of the Asset

(c)  Production  and  operating  cost  deductions  shall  be allocated among the
     Members  in  accordance  with their respective contributions to such costs.

(d)  Deductions  for  depletion  (to the extent of the amount of such deductions
     that  would  have been determined for Capital Account purposes if only cost
     depletion  were  allowable  for  federal  income  tax  purposes)  shall  be
     allocated  to the Members in accordance with their respective contributions
     to  the  adjusted basis of the depletable property. Any remaining depletion
     deductions  shall  be  allocated  to  the  Members  so  that, to the extent
     possible,  the  Members  receive  the  same  total  amounts  of  percentage
     depletion  as  they  would  have  received  if  percentage  depletion  were
     allocated  to  the  Members in proportion to their respective shares of the
     gross  income  used  as  the  basis  for calculating the federal income tax
     deduction  for  percentage  depletion.

<PAGE>

(e)  Subject  to  SUBPARAGRAPH  3.3(G)  below,  gross  income  on  the  sale  of
     production  shall  be  allocated  in accordance with the Members' rights to
     share  in  the  proceeds  of  such  sale.

(f)  Except  as  provided in SUBPARAGRAPH 3.3(G) below, gain or loss on the sale
     of  a  depreciable  or  depletable asset shall be allocated so that, to the
     extent  possible,  the net amount reflected in the Members' Capital Account
     with  respect  to  such  property  (taking  into  account  the cost of such
     property,  depreciation,  amortization,  depletion  or  other cost recovery
     deductions  and  gain or loss) most closely reflects the Members' Ownership
     Interests.

(g)  Gains  and losses on the sale of all or substantially all the Assets of the
     Company  shall  be  allocated so that, to the extent possible, the Members'
     resulting Capital Account balances are in the same ratio as their Ownership
     Interests  at  the  time  of  such  sale.

(h)  The  Members  acknowledge  that expenses and deductions allocable under the
     preceding  provisions  of  this Paragraph may be required to be capitalized
     into  production  under  Section  263A  of  the  Code. With respect to such
     capitalized  expenses  or deductions, the allocation of gross income on the
     sale of production shall be adjusted, in any reasonable manner consistently
     applied  by  the  Manager, so that the same net amount (subject possibly to
     timing  differences)  is  reflected  in  the  Capital  Accounts  as if such
     expenses  or  deductions  were instead deductible and allocated pursuant to
     the  preceding  provisions  of  this  Paragraph.

(i)  All  deductions  and  losses  that  are  not  otherwise  allocated  in this
     Paragraph  shall  be  allocated  among the Members in accordance with their
     respective  contributions  to the costs producing each such deduction or to
     the  adjusted  basis  of  the  Asset  producing  each  such  loss.

(j)  Any  recapture  of  exploration  expenses under Section 617(b)(1)(A) of the
     Code,  and  any disallowance of depletion under Section 617(b)(1)(B) of the
     Code,  shall  be  borne  by  the  Members in the same manner as the related
     exploration  expenses  were  allocated  to,  or  claimed  by,  them.

(k)  All  other  items  of  income and gain shall be allocated to the Members in
     accordance  with  their  Ownership  Interests.

(l)  If a reduced Ownership Interest is restored pursuant to SECTION 10.6 of the
                                                             ------------
     Agreement,  the  Manager  shall endeavor to allocate items of income, gain,
     loss,  and deduction (in the same year as the restoration of such Ownership
     Interest  or, if necessary, in subsequent years) so as to cause the Capital
     Account  balances  of the Members to be the same as they would have been if
     the  restored  Ownership  Interest  had  never  been  reduced.

<PAGE>

(m)  If  the  Members' Ownership Interests change during any taxable year of the
     Company,  the  distributive  share  of  items  of  income,  gain,  loss and
     deduction of each Member shall be determined in any manner (1) permitted by
     Section  706  of  the  Code, and (2) agreed by both Members. If the Members
     cannot  agree on a method, the method shall be determined by the Manager in
     consultation  with the Company's tax advisers, with preference given to the
     interim closing-of-the-books method except where application of that method
     would  result in undue administrative expense in relationship to the amount
     of  the  items  to  be  allocated.

(n)  For purposes of this PARAGRAPH 3.3, items financed through indebtedness of,
                          -------------
     or  from  revenues  of,  the  Company  shall  be  treated  as  funded  from
     contributions  made  by the Members to the Company in accordance with their
     Ownership  Interests.  "NONRECOURSE  DEDUCTIONS," as defined by Treas. Reg.
     1.704-2(b)(1) shall be allocated between the Members in proportion to their
     Ownership  Interests.

     3.4     REGULATORY ALLOCATIONS. Notwithstanding the provisions of Paragraph
3.3 to the contrary, the following special allocations shall be given effect for
purposes  of  maintaining  the  Members'  Capital  Accounts.

(a)  If  either  Member  unexpectedly  receives any adjustments, allocations, or
     distributions  described  in  Treas.  Reg.  1.704-1(b)(2)(ii)(d)(4),
     1.704-1(b)(2)(ii)(d)(5)  or  1.704-1(b)(2)(ii)(d)(6),  which  result  in  a
     deficit  Capital  Account  balance,  items  of  income  and  gain  shall be
     specially  allocated to each such Member in an amount and manner sufficient
     to  eliminate,  to  the  extent  required  by the Treasury Regulations, the
     Capital  Account  deficit  of  such  Member as quickly as possible. For the
     purposes of this SUBPARAGRAPH 3.4(A), each Member's Capital Account balance
     shall be increased by the sum of (i) the amount such Member is obligated to
     restore  pursuant  to  any  provision of the Agreement, and (ii) the amount
     such  Member  is  deemed  to  be  obligated  to  restore  pursuant  to  the
     penultimate  sentences  of  Treas.  Reg.  1.704-2(g)(1)  and 1.704-2(i)(5).
(b)  If  there  is a net decrease in partnership minimum gain for a taxable year
     of the Company, each Member shall be allocated items of income and gain for
     that  year  equal to that Member's share of the net decrease in partnership
     minimum  gain,  all in accordance with Treas. Reg. 1.704-2(f). If, during a
     taxable year of the Company, there is a net decrease in partner nonrecourse
     debt minimum gain, any Member with a share of that partner nonrecourse debt
     minimum  gain  as  of the beginning of the year shall be allocated items of
     income  and  gain  for  the  year (and, if necessary, for succeeding years)
     equal  to  that  partner's share of the net decrease in partner nonrecourse
     debt  minimum  gain,  all  in  accordance  with  Treas. Reg. 1.704-2(i)(4).
     Pursuant  to Treas. Reg. 1.704-2(i)(1), deductions attributable to "PARTNER
     NONRECOURSE  LIABILITY"  shall  be  allocated  to the Member that bears the
     economic  risk  of  loss  for such liability (or is treated as bearing such
     risk).

<PAGE>

(c)  If the allocation of deductions to either Member would cause such Member to
     have  a  deficit  Capital Account balance at the end of any taxable year of
     the  Company  (after all other allocations provided for in this ARTICLE III
                                                                     -----------
     have  been  made  and  after  giving effect to the adjustments described in
     SUBPARAGRAPH  3.4(A)),  such  deductions  shall instead be allocated to the
     --------------------
     other  Member.

     3.5     CURATIVE  ALLOCATIONS.  The  allocations set forth in PARAGRAPH 3.4
                                                                   -------------
(the  "REGULATORY ALLOCATIONS") are intended to comply with certain requirements
of the Treasury Regulations. It is the intent of the Members that, to the extent
possible,  all  Regulatory  Allocations  shall  be  offset  either  with  other
Regulatory  Allocations  or  with  special allocations of other items of income,
gain,  loss  or deduction pursuant to this Paragraph. Therefore, notwithstanding
any  other  provisions  of  this  ARTICLE  III  (other  than  the  Regulatory
                                  ------------
Allocations),  the  Manager  shall  make  such offsetting special allocations of
income,  gain, loss or deduction in whatever manner it determines appropriate so
that,  after such offsetting allocations are made, each Member's Capital Account
balance  is,  to  the extent possible, equal to the Capital Account balance such
Member  would  have  had  if  the  Regulatory  Allocations  were not part of the
Agreement  and all items were allocated pursuant to PARAGRAPH 3.3 without regard
                                                    -------------
to  PARAGRAPH  3.4.
    --------------

     3.6  TAX  ALLOCATIONS.  Except as otherwise provided in this PARAGRAPH 3.6,
items of taxable income, deduction, gain and loss shall be allocated in the same
manner as the corresponding item is allocated for book purposes under PARAGRAPHS
                                                                      ----------
3.3,  3.4  and  3.5  of  the  corresponding  item determined for Capital Account
-------------------
purposes.

(a)  Recapture of tax deductions arising out of a disposition of property shall,
     to  the extent consistent with the allocations for tax purposes of the gain
     or  amount  realized  giving  rise  to  such recapture, be allocated to the
     Members  in  the  same  proportions  as  the  recaptured  deductions  were
     originally  allocated  or  claimed.

(b)  To  the  extent required by Section 704(c) of the Code, income, gain, loss,
     and  deduction  with  respect  to  property contributed to the Company by a
     Member  shall  be  shared  among  both Members so as to take account of the
     variation  between  the  basis  of the property to the Company and its fair
     market  value  at the time of contribution. The Members intend that Section
     704(c) shall effect no allocations of tax items that are different from the
     allocations  under  PARAGRAPHS  3.3, 3.4 and 3.5 of the corresponding items
                         ----------------------------
     for  Capital  Account  purposes;  provided that gain or loss on the sale of
     property  contributed to the Company shall be allocated to the contributing
     member  to the extent of built-in gain or loss, respectively, as determined
     under  Treas.  Reg.  1.704-3(a). However, to the extent that allocations of
     other  tax  items are required pursuant to Section 704(c) of the Code to be
     made  other  than  in accordance with the allocations under PARAGRAPHS 3.3,
                                                                 ---------------
     3.4  and  3.5  of  the  corresponding  items  for Capital Account purposes,
     -------------
     Section  704(c)  shall  be  applied in accordance with the method available
     under  Treas.  Reg. 1.704-3 which most closely approximates the allocations
     set  forth  in  PARAGRAPHS  3.3,  3.4  and  3.5.
                     --------------------------------

<PAGE>

(c)  Depletion  deductions  with  respect  to  contributed  property  shall  be
     determined  without  regard  to any portion of the property's basis that is
     attributable  to precontribution expenditures by BMGE that were capitalized
     under  Code  Sections  616(b), 59(e) and 291(b). Deductions attributable to
     precontribution  expenditures  by  BMGE shall be calculated under such Code
     Sections  as if BMGE continued to own the depletable property to which such
     deductions  are  attributable, and such deductions shall be reported by the
     Company  and  shall  be  allocated  solely  to  BMGE.

(d)  The  Members  understand  the  allocations  of  tax items set forth in this
     PARAGRAPH  3.6,  and agree to report consistently with such allocations for
     --------------
     federal  and  state  tax  purposes.

                  ARTICLE IV     CAPITAL ACCOUNTS; LIQUIDATION

     4.1     CAPITAL  ACCOUNTS.

(a)  A  separate  Capital Account shall be established and maintained by the TMP
     for  each Member. Such Capital Account shall be increased by (i) the amount
     of  money  contributed  by  the Member to the Company, (ii) the fair market
     value  of  property  contributed  by  the  Member  to  the  Company (net of
     liabilities  secured  by  such  contributed  property  that  the Company is
     considered  to  assume or take subject to under Code Section 752) and (iii)
     allocations  to  the Member under in PARAGRAPHS 3.3, 3.4 and 3.5 of Company
                                          ---------------------------
     income  and  gain (or items thereof), including income and gain exempt from
     tax;  and shall be decreased by (iv) the amount of money distributed to the
     Member by the Company, (v) the fair market value of property distributed to
     the  Member  by the Company (net of liabilities secured by such distributed
     property  and  that  the  Member is considered to assume or take subject to
     under Code Section 752), (vi) allocations to the Member under in PARAGRAPHS
                                                                      ----------
     3.3, 3.4 and 3.5 of expenditures of the Company not deductible in computing
     ----------------
     its  taxable  income  and not properly chargeable to a Capital Account, and
     (vii)  allocations  of  Company  loss  and  deduction  (or  items thereof),
     excluding  items  described  in  (vi) above and percentage depletion to the
     extent  it  exceeds  the  adjusted  tax basis of the depletable property to
     which  it  is  attributable.

(b)  In  the  event  that  the Capital Accounts of the Members are computed with
     reference  to  the  book value of any Asset which differs from the adjusted
     tax  basis  of  such Asset, then the Capital Accounts shall be adjusted for
     depreciation, depletion, amortization and gain or loss as computed for book
     purposes  with  respect  to  such  Asset  in  accordance  with  Treas. Reg.
     1.704-1(b)  (2)(iv)(g).

(c)  In  the event any interest in the Company is transferred in accordance with
     the  terms  of  the  Agreement, the transferee shall succeed to the Capital
     Account  of  the  transferor  to  the  extent it relates to the transferred
     interest,  except  as  provided  in  Treas.  Reg.  1.704-1(b)(2)(iv)(1).

(d)  In  the  event  property, other than money, is distributed to a Member, the
     Capital  Accounts of the Members shall be adjusted to reflect the manner in
     which  the  unrealized  income,  gain,  loss and deduction inherent in such
     property  (that  has not been reflected in the Capital Accounts previously)
     would  be allocated among the Members if there was a taxable disposition of
     such  property  for  the fair market value of such property (taking Section
     7701(g)  of  the  Code  into account) on the date of distribution. For this
     purpose  the  fair  market value of the property shall be determined as set
     forth  in PARAGRAPH  4.2(A)  below.
               -----------------

<PAGE>

(e)  In  the  event  the Management Committee designates a Supplemental Business
     Arrangement  area within the Area of Interest as described in SECTION 10.13
                                                                   -------------
     of  the  Agreement,  the Management Committee shall appropriately segregate
     Capital  Accounts  to  reflect  that  designation and shall make such other
     modifications  to the Agreement as are appropriate to reflect the manner of
     administering Capital Accounts in accordance with the terms of this EXHIBIT
                                                                         -------
     C.
     --

(f)  BMGE  is  contributing  to the Agreement certain depletable properties with
     respect to which BMGE currently has an adjusted tax basis which may consist
     in  part of depletable expenditures and in part of expenditures capitalized
     under  Code  Sections  616(b),  291(b)  and/or  59(e).  For  purposes  of
     maintaining  the Capital Accounts, the Company's deductions with respect to
     contributed  property  in  each  year  for  (i)  depletion,  (ii)  deferred
     development  expenditures  under  Section  616(b)  attributable  to
     pre-contribution  expenditures,  (iii)  amortization  under  Section 291(b)
     attributable  to pre-contribution expenditures, and (iv) amortization under
     Section  59(e)  attributable  to pre-contribution expenditures shall be the
     amount  of  the  corresponding item determined for tax purposes pursuant to
     SUBPARAGRAPH  3.6(C) multiplied by the ratio of (A) the book value at which
     --------------------
     the  contributed  property  is  recorded in the Capital Accounts to (B) the
     adjusted  tax  basis of the contributed property (including basis resulting
     from  capitalization  of  pre-contribution  development  expenditures under
     Sections  616(b),  291(b),  and  59(e)).

(g)  The  foregoing  provisions,  and  the  other  provisions  of  the Agreement
     relating  to  the  maintenance  of  Capital Accounts and the allocations of
     income,  gain,  loss,  deduction  and  credit,  are intended to comply with
     Treasury  Regulations  Section  1.704-1(b),  and  shall  be interpreted and
     applied  in  a  manner  consistent  with such Regulations. In the event the
     Management  Committee  shall  determine  that  it  is prudent to modify the
     manner in which the Capital Accounts, or any debits or credits thereto, are
     computed in order to comply with such Regulations, the Management Committee
     may  make  such  modification,  provided  that  it  is not likely to have a
     material  effect  on  the  amount  distributable  to  either  Member  upon
     liquidation  of  the  Company  pursuant  to  PARAGRAPH  4.2.
                                                  ---------------

(h)  If  the  Members  so  agree,  upon  the occurrence of an event described in
     Treas. Reg. 1.704-1(b)(2)(iv)(5), the Capital Accounts shall be restated in
     accordance  with  Treas. Reg. 1.704-1(b)(2)(iv)(f) to reflect the manner in
     which  unrealized income, gain, loss or deduction inherent in the assets of
     the  Company  (that  has  not  been  reflected  in  the  Capital  Accounts
     previously)  would  be  allocated among the Members if there were a taxable
     disposition  of  such assets for their fair market values, as determined in
     accordance  with  SUBPARAGRAPH  4.2(A).  For  purposes  of PARAGRAPH 3.3, a
                       --------------------                     -------------
     Member  shall  be  treated as contributing the portion of the book value of
     any  property  that is credited to the Member's Capital Account pursuant to
     the  preceding  sentence.  Following  a  revaluation  pursuant  to  this
     SUBPARAGRAPH  4.1(H),  the  Members'  shares  of  depreciation,  depletion,
     --------------------
     amortization  and  gain or loss, as computed for tax purposes, with respect
     to  property  that  has  been revalued pursuant to this SUBPARAGRAPH 4.1(H)
                                                             -------------------
     shall  be  determined  in  accordance  with  the principles of Code Section
     704(c)  as  applied  pursuant to the final sentence of SUBPARAGRAPH 3.6(B).
                                                            --------------------

     4.2  LIQUIDATION. In the event the Company is dissolved pursuant to SECTION
                                                                         -------
14.1 of the Agreement then, notwithstanding any other provision of the Agreement
----
to  the  contrary, the following steps shall be taken (after taking into account
any transfers of Capital Accounts pursuant to SECTIONS 3.2(A), 4.4(A) or 14.2 of
                                              -------------------------------
the  Agreement):

(a)  The  Capital  Accounts of the Members shall be adjusted to reflect any gain
     or loss which would be realized by the Company and allocated to the Members
     pursuant  to  the provisions of ARTICLE III OF THIS EXHIBIT C if the Assets
                                     -----------------------------
     had  been  sold  at their fair market value at the time of liquidation. The
     fair  market  value  of the Assets shall be determined by agreement of both
     Members provided, however, that in the event that the Members fail to agree
     on  the  fair  market  value  of  any Asset, its fair market value shall be
     determined by a nationally recognized independent engineering firm or other
     qualified  independent  party  approved  by  both  Members.

<PAGE>

(b)  After  making the foregoing adjustments and/or contributions, all remaining
     Assets  shall be distributed to the Members in accordance with the balances
     in  their Capital Accounts (after taking into account all allocations under
     ARTICLE  III,  including  SUBPARAGRAPH  3.3(G)). Unless otherwise expressly
     ------------              ---------------------
     agreed  by both Members, each Member shall receive an undivided interest in
     each and every Asset determined by the ratio of the amount in each Member's
     Capital  Account  to  the  total  of both of the Members' Capital Accounts.
     Assets  distributed  to  the  Members shall be deemed to have a fair market
     value  equal  to the value assigned to them pursuant to SUBPARAGRAPH 4.2(A)
                                                             -------------------
     above.

(c)  All distributions to the Members in respect of their Capital Accounts shall
     be  made  in  accordance  with  the  time  requirements  of  Treas.  Reg.
     1.704-1(b)(2)(ii)(b)(2)  and  (3).

     4.3  DEEMED  TERMINATIONS. Notwithstanding the provisions of PARAGRAPH 4.2,
                                                                  --------------
if  the  "liquidation"  of  the  Company results from a deemed termination under
Section  708(b)(1)(B)  of  the Code, then (i) SUBPARAGRAPHS 4.2(A) and (B) shall
                                              -------------------
not  apply, (ii) the Company shall be deemed to have contributed its assets to a
new partnership in exchange for an interest therein, and immediately thereafter,
distributing  interests therein to the purchasing party and the non-transferring
Members  in proportion to their interests in the Company in liquidation thereof,
(iii)  the new partnership shall continue pursuant to the terms of the Agreement
and  this  Exhibit.

                        ARTICLE V     SALE OR ASSIGNMENT

     The  Members agree that if either one of them makes a sale or assignment of
its Ownership Interest under the Agreement, and such sale or assignment causes a
termination under Section 708(b)(1)(B) of the Code, the terminating Member shall
indemnify  the non-terminating Member and save it harmless on an after-tax basis
for  any  increase  in  taxes  to  the  non-terminating  Member  caused  by  the
termination  of  the  Company.

<PAGE>

                                    EXHIBIT D

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                            EXHIBIT D     DEFINITIONS

     "ACT"  means  the Nevada Limited Liability Company Act, under Chapter 86 of
the  Nevada  Revised  Statutes  (the  "Act").

     "AFFILIATE" means any person, partnership, limited liability company, joint
venture,  corporation, or other form of enterprise which Controls, is Controlled
by,  or  is  under  common  Control  with  a  Member.

     "AGREEMENT"  means  this  Exploration,  Development  and  Mining  Limited
Liability  Company  Operating  Agreement,  including  all  amendments  and
modifications,  and all schedules and exhibits, all of which are incorporated by
this  reference.

     "APPROVED  ALTERNATIVE" means a Development and Mining alternative selected
by  the  Management  Committee  from various Development and Mining alternatives
analyzed  in  the  Pre-Feasibility  Studies.

     "AREA  OF INTEREST" means the area described in PARAGRAPH 1.3 OF EXHIBIT A.
                                                     --------------------------

     "ASSETS"  means  the  Properties,  Products,  Business Information, and all
other real and personal property, tangible and intangible, including existing or
after-acquired  properties  and  all contract rights held for the benefit of the
Members  hereunder.

     "BUDGET"  means  a  detailed  estimate  of  all  costs to be incurred and a
schedule  of  cash advances to be made by the Members with respect to a Program.

     "BUSINESS"  means the conduct of the business of the Company in furtherance
of  the purposes set forth in SECTION 2.3 and in accordance with this Agreement.
                              -----------

     "BUSINESS  ACCOUNT"  means  the  account  maintained by the Manager for the
Business  in  accordance  with  EXHIBIT  B.
                                -----------

     "BUSINESS  INFORMATION"  means  the  terms of this Agreement, and any other
agreement  relating  to  the  Business,  the Existing Data, and all information,
data,  knowledge  and  know-how,  in  whatever  form  and  however  communicated
(including, without limitation, Confidential Information), developed, conceived,
originated or obtained by either Member in performing its obligations under this
Agreement.  The  term "Business Information" shall not include any improvements,
enhancements,  refinements  or  incremental additions to Member Information that
are  developed, conceived, originated or obtained by either Member in performing
its  obligations  under  this  Agreement.

<PAGE>

     "CAPITAL  ACCOUNT"  means  the  account  maintained  for  each  Member  in
accordance  with  EXHIBIT  C.
                  ----------

"COMPANY"  means  [PEDIMENT GOLD LLC], a Nevada limited liability company formed
in  accordance  with,  and  governed  by,  this  Agreement.

     "CONFIDENTIAL  INFORMATION"  means  all  information,  data,  knowledge and
know-how  (including,  but  not  limited  to,  formulas, patterns, compilations,
programs,  devices,  methods, techniques and processes) that derives independent
economic  value,  actual  or potential, as a result of not being generally known
to,  or  readily  ascertainable  by,  third  parties and which is the subject of
efforts  that  are  reasonable  under the circumstances to maintain its secrecy,
including  without  limitation  all  analyses,  interpretations,  compilations,
studies  and  evaluations  of  such  information,  data,  knowledge and know-how
generated  or  prepared  by  or  on  behalf  of  either  Member.

     "CONTINUING  OBLIGATIONS"  mean  obligations  or  responsibilities that are
reasonably  expected  to continue or arise after Operations on a particular area
of  the  Properties  have  ceased  or  are suspended, such as future monitoring,
stabilization,  or  Environmental  Compliance.

     "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, when
used  with respect to a person, means the actual or legal ability to control the
actions  of another, through family relationship, agency, contract or otherwise;
and  "Control"  used  as  a  noun  means  an interest which gives the holder the
ability  to  exercise  any  of  the  foregoing  powers.

     "COVER  PAYMENT" shall have the meaning as set forth in SECTION 11.4 of the
                                                             ------------
Agreement.

     "DEVELOPMENT"  means  all  preparation  (other  than  Exploration)  for the
removal  and  recovery of Products, including construction and installation of a
mill  or  any  other  improvements to be used for the mining, handling, milling,
processing,  or  other  beneficiation of Products, and all related Environmental
Compliance.

     "EFFECTIVE  DATE"  means  the  date  set  forth  in  the  preamble  to this
Agreement.

     "ENCUMBRANCE"  or  "Encumbrances" means mortgages, deeds of trust, security
interests,  pledges,  liens,  net  profits  interests,  royalties  or overriding
royalty  interests,  other  payments  out of production, or other burdens of any
nature.

<PAGE>

     "ENVIRONMENTAL  COMPLIANCE"  means   actions   performed  during  or  after
Operations  to  comply  with  the  requirements  of  all  Environmental  Laws or
contractual  commitments  related  to  reclamation  of  the  Properties or other
compliance  with  Environmental  Laws.

     "ENVIRONMENTAL  COMPLIANCE  FUND" means the account established pursuant to
PARAGRAPH  2.14  OF  EXHIBIT  B.
 ------------------------------

     "ENVIRONMENTAL  LAWS" means Laws aimed at reclamation or restoration of the
Properties; abatement of pollution; protection of the environment; protection of
wildlife,   including   endangered   species;   ensuring   public   safety  from
environmental hazards; protection of cultural or historic resources; management,
storage or control of hazardous materials and substances; releases or threatened
releases  of  pollutants,  contaminants,  chemicals  or  industrial,   toxic  or
hazardous  substances  as  wastes  into  the   environment,  including   without
limitation,  ambient  air,  surface  water  and  groundwater; and all other Laws
relating  to  the  manufacturing,  processing,   distribution,  use,  treatment,
storage,  disposal, handling or transport of pollutants, contaminants, chemicals
or  industrial,  toxic  or  hazardous  substances  or  wastes.

     "ENVIRONMENTAL  LIABILITIES"  means  any and all claims, actions, causes of
action, damages, losses, liabilities, obligations, penalties, judgments, amounts
paid  in  settlement, assessments, costs, disbursements, or expenses (including,
without  limitation,  attorneys'  fees  and  costs, experts' fees and costs, and
consultants'  fees  and  costs) of any kind or of any nature whatsoever that are
asserted  against  either  Member,  by any person or entity other than the other
Member,  alleging  liability  (including,  without   limitation,  liability  for
studies,  testing or investigatory costs, cleanup costs, response costs, removal
costs,  remediation  costs,  containment  costs,  restoration  costs, corrective
action  costs,  closure  costs,  reclamation  costs,  natural  resource damages,
property  damages,  business  losses,  personal  injuries,  penalties  or fines)
arising out of, based on or resulting from (i) the presence, release, threatened
release,  discharge  or emission into the environment of any hazardous materials
or  substances  existing  or  arising on, beneath or above the Properties and/or
emanating  or  migrating  and/or  threatening  to  emanate  or  migrate from the
Properties to off-site properties; (ii) physical disturbance of the environment;
or  (iii)  the  violation  or  alleged  violation  of  any  Environmental  Laws.

     "EQUITY  ACCOUNT"  means  the  account  maintained  for  each Member by the
Manager  in  accordance  with  SUBSECTION  9.2(O)  of  the  Agreement.
                               ------------------

     "EXISTING  DATA"  means  maps,  drill  logs  and other drilling data, core,
pulps,  reports,  surveys,  assays,  analyses,  production  reports, operations,
technical,  accounting  and  financial  records,  and other material information
developed  in  operations  on  the  Properties  prior  to  the  Effective  Date.

     "EXPANSION"  or  "MODIFICATION"  means (i) a material increase in mining or
production  capacity; (ii) a material change in the recovery process; or (iii) a
material  change  in  waste  or tailings disposal methods. An increase or change
shall  be  deemed  "material"  if  it  is  anticipated to cost more than 115% of
original  capital  costs  attributable  to  the  Development  of  the  mining or
production  capacity, recovery process or waste or tailings disposal facility to
be  expanded  or  modified.

<PAGE>

     "EXPLORATION"  means  all   activities  directed  toward  ascertaining  the
existence,  location,  quantity,  quality  or  commercial  value  of deposits of
Products,  including  but  not  limited  to  additional  drilling required after
discovery  of  potentially  commercial  mineralization,  and  including  related
Environmental  Compliance.

     "FEASIBILITY  CONTRACTORS"  means one or more engineering firms approved by
the  Management  Committee  for  purposes  of  preparing  or  auditing  any
Pre-Feasibility  Study  or  Feasibility  Study.

     "FEASIBILITY  STUDY"  means  a report to be prepared following selection by
the  Management  Committee of one or more Approved Alternatives. The Feasibility
Study  shall  include  a  review of information presented in any Pre-Feasibility
Studies  concerning  the Approved Alternative(s). The Feasibility Study shall be
in  a  form  and  of  a  scope  generally  acceptable  to  reputable  financial
institutions  that  provide  financing  to  the  mining  industry.

     "GOVERNMENTAL  FEES"  means  all  location  fees, mining claim rental fees,
mining claim maintenance payments and similar payments required by Law to locate
and  hold  unpatented  mining  claims.

     "INITIAL CAPITAL CONTRIBUTION" means that contribution each Member has made
or  agrees  to  make  pursuant  to  SECTION  3.1  of  the  Agreement.

"INTELLECTUAL  PROPERTIES"  means  those  intellectual  properties  defined  in
PARAGRAPH  1.1  OF  EXHIBIT  A.
       -----------------------

     "LAW"  or  "LAWS"  means  all  applicable  federal,  state  and  local laws
(statutory  or  common),  rules,  ordinances,  regulations, grants, concessions,
franchises,  licenses,  orders,  directives,  judgments,  decrees,  and  other
governmental  restrictions,  including  permits  and other similar requirements,
whether  legislative,  municipal,  administrative  or  judicial  in  nature.

     "MANAGEMENT  COMMITTEE"  means the committee established under Article VIII
of  the  Agreement.

"MANAGER" means the Member appointed under ARTICLE IX of the Agreement to manage
                                           ----------
Operations,  or  any  successor  Manager.

     "MEMBER"  means  BMGE or NGXS, any permitted successor or assign of BMGE or
NGXS,  or  any  other  person  admitted  as  a  Member of the Company under this
Agreement.

     "MEMBER  INFORMATION"  means all information, data, knowledge and know-how,
in  whatever  form  and  however  communicated  (including,  without limitation,
Confidential  Information  but  excluding the Existing Data), which, as shown by
written  records,  was developed, conceived, originated or obtained by a Member:
(a) prior to entering into this Agreement, or (b) independent of its performance
under  the  terms  of  this  Agreement  excluding  PARAGRAPH  1.1  OF EXHIBIT A.
                                                   ----------------------------

     "MINING"  means the mining, extracting, producing, beneficiating, handling,
milling  or  other  processing  of  Products.

<PAGE>

     "NET  PROCEEDS"  means certain amounts calculated as provided in Exhibit E,
which  may be payable to a Member under SUBSECTIONS 4.4(B) or 11.5(B)(II) of the
                                        ------------------    -----------
Agreement.

     "OPERATIONS"  means  the  activities  carried out by the Company under this
Agreement.

     "OWNERSHIP  INTEREST"  means  the  percentage  interest  representing  the
ownership  interest  of  a  Member  in  the  Company,  and  all other rights and
obligations arising under this Agreement, as such interest may from time to time
be  adjusted hereunder. Ownership Interests shall be calculated to three decimal
places  and  rounded  to two decimal places as follows: Decimals of .005 or more
shall  be rounded up (e.g., 1.519% rounded to 1.52%); decimals of less than .005
shall  be  rounded  down  (e.g., 1.514% rounded to 1.51%). The initial Ownership
Interests  of  the  Members  are  set  forth  in  SECTION  4.1 of the Agreement.
                                                  ------------

     "PAYOUT"  means the date on which the Equity Account balance of each of the
Members  has  become zero or a negative number, regardless of whether the Equity
Account  balance  of  either  or  both  Members  subsequently becomes a positive
number. If one Member's Equity Account balance becomes zero or a negative number
before  the  other  Member's,  "Payout"  shall not occur until the date that the
other  Member's  Equity Account balance first becomes zero or a negative number.

     "PRE-FEASIBILITY  STUDIES"  means  one  or more studies prepared to analyze
whether economically viable Mining Operations may be possible on the Properties,
as  described  in  SECTIONS  10.7  and  10.8  of  the  Agreement.
                   --------------       ----

     "PRIME  RATE"  means  the  interest rate quoted and published as "Prime" as
published  in  The  Wall  Street Journal, under the heading "Money Rate," as the
rate  may  change  from  day  to  day.

     "PRODUCTS" means all ores, minerals and mineral resources produced from the
Properties.

     "PROGRAM"  means  a  description  in  reasonable detail of Operations to be
conducted  and  objectives  to  be  accomplished  by  the  Manager  for a period
determined  by  the  Management  Committee.

     "PROGRAM  AND  BUDGET  STAGE" means those Stages of the Initial Program and
Budget  described  in EXHIBIT G and used to define BMGE's Initial Contributions,
                      ---------
Ownership  Interest  Calculations  and  Failure  to  Make Contributions Dilution
Schedule  in  accordance  with  EXHIBIT  I.
                                ----------

     "PROGRAM  PERIOD"  means  the time period covered by an adopted Program and
Budget.

     "PROJECT  FINANCING"  means  any  financing  approved  by  the  Management
Committee  and  obtained  by  the  Members  for the purpose of placing a mineral
deposit  situated  on  the  Properties into commercial production, but shall not
include  any  such  financing  obtained individually by either Member to finance
payment  or  performance  of  its  obligations  under  the  Agreement.

<PAGE>

     "PROPERTIES"  means those interests in real property described in PARAGRAPH
                                                                       ---------
1.1  OF  EXHIBIT  A  and all other interests in real property within the Area of
-------------------
Interest  that  are  acquired  and  held  subject  to  this  Agreement.
---

     "RECALCULATED OWNERSHIP INTEREST" means the reduced Ownership Interest of a
Member  as  recalculated  under  SECTION  10.5,  10.6  or 11.5 of the Agreement.
                                 -------------   ----     ----

     "REDUCED  MEMBER"  means a Member whose Ownership Interest is reduced under
SECTION  10.5,  10.6  or  11.5  of  the  Agreement.
        -----------------------

     "ROYALTY  PROPERTIES"  means  properties owned by PGL on which a production
royalty  is  paid  under  PARAGRAPH  1.3  OF  EXHIBIT  I.
                          -------------------------------

     "TRANSFER"  means, when used as a verb, to sell, grant, assign or create an
Encumbrance,  pledge  or  otherwise convey, or dispose of or commit to do any of
the foregoing, or to arrange for substitute performance by an Affiliate or third
party  (except  as  permitted  under  SUBSECTION  9.2(J)  and SECTION 9.6 of the
                                      ------------------      -----------
Agreement),  either directly or indirectly; and, when used as a noun, means such
a  sale,  grant,  assignment,  Encumbrance,  pledge  or  other  conveyance  or
disposition,  or  such  an  arrangement.

<PAGE>

                                    EXHIBIT E

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                  EXHIBIT E     NET SMELTER ROYALTY CALCULATION

                         ARTICLE I     MEANING OF TERMS

     As  used  herein,  unless  otherwise  defined herein, the terms used herein
shall  have  the  same  meaning  as  given to them in the Operating Agreement of
Pediment  Gold LLC ("Operating Agreement") dated June __, 2004 pursuant to which
the  Deed  with  Reservation  of  Net  Smelter  Returns Royalty was executed and
delivered.  The  following  terms  shall  have  the  meanings  specified  below:

     1.1 COMMERCIAL PRODUCTION. As used herein, the term "Commercial Production"
shall  mean  the  milling,  or leaching, and sale of ores and concentrates which
result  from  Ore  extracted  from the Property, but will not include milling or
leaching  for the purposes of testing by a pilot plant or during an initial tune
up  period  of a plant. Commercial Production on the Property or any part hereof
will  be  deemed, for all purposes of this Agreement, to have commenced when, if
there  is  a concentrator or other mill ("Concentrator") on the Property, or any
part  thereof,  such  Concentrator has for the first time operated at 60% of its
rated  concentrating  capacity for 30 out of 40 consecutive days, or if there is
no such Concentrator, Ore from the Property or any part thereof has been shipped
there  from on a reasonably regular basis for a 30 day period for the purpose of
earning revenues, but in any event Commercial Production on the Property will be
deemed  to  have  commenced  90  days  after Ore has first been shipped from the
Property  for  the  purpose  of  earning  revenues.

     1.2  GRANTEE.  As used herein, the term "Grantee" shall mean a Member whose
Ownership  Interest is converted to a Net Smelter Royalty in accordance with the
terms  of  the  Operating  Agreement,  and  shall  include  all of the Grantee's
successors-in-interest,  including without limitation assignees, partners, joint
venture  partners,  lessees  and  when  applicable  mortgagees  and  affiliated
companies  having  or  claiming  an  interest in the Property or Projects or the
Operating  Agreement.

     1.3  GRANTOR.  As  used herein, the term "Grantor" shall mean PGL and shall
include  all  of Grantor's successors-in-interest, including without limitation,
assignees,  partners,  joint  venture  partners,  lessees  and  when  applicable
mortgagees  and  affiliated  companies  having  or  claiming  an interest in the
Property  or  the  Operating  Agreement.

<PAGE>

1.4     NET  SMELTER  RETURN.  As  used herein, the term "Net Smelter Return" or
"NSR" with respect to the Property shall mean the gross proceeds received by the
Grantor  in  any  year from the sale of Product from the mining operation on the
Property:

(a)  For Precious Metals. In the case of gold, silver, and platinum group metals
     ("Precious Metals"), means the gross spot price of the appropriate Precious
     Metal (London Bullion Market, Afternoon Fix, for gold; New York Commodities
     Exchange  for  all other Precious Metals), on the day the smelter, refiner,
     processor,  purchaser  or other recipient of such production, or an insurer
     as  a  result  of casualty to such production (collectively, "Payor") makes
     payment  to  or  otherwise  credits  the  account  of  Grantor.

(b)  For  Other  Minerals.  In  the  case  of  all  metals,  minerals,  mineral
     substances,  and the beneficiated products thereof, which are not or do not
     contain  economically recoverable Precious Metals ("Other Minerals"), means
     the gross spot price of the appropriate Other Mineral (New York Commodities
     Exchange)  on  the  day the Payor makes payment to or otherwise credits the
     account  of  Grantor.

     Less  successively:

(a)  custom  smelting  costs, treatment charges and penalties including, but not
     being  limited  to,  metal losses, penalties for impurities and charges for
     refining,  selling and handling by the smelter, refinery or other purchaser
     provided;  and

(b)  all  costs  of  handling,  transporting  and insuring concentrates and dore
     metal  from  the  point  of  concentration  or  reduction of Property, to a
     smelter  or  refinery.

     1.5     ORE.  As  used  herein,  the  term  "Ore"  shall mean any materials
containing  a  mineral  or  minerals  of  commercial  economic  value.

     1.6  PRODUCTION. As used herein, the term "Production" shall mean Ore mined
from  the  Property  and any concentrates or other materials or products derived
there  from  provided,  however,  that  if  any  such Ore, concentrates or other
materials  or  products  are  further treated as part of the mining operation in
respect  of  the Property, such Ore, concentrates or other materials or products
shall  not  be considered to be "Product" until after they have been so treated.

                               ARTICLE II     TERM

     The  term  of  this  Deed  shall  be  perpetual, it being the intent of the
Parties  hereto  that  the  NSR constitutes a covenant running with the land and
affecting  each  of  the  Property  and  all successions thereof whether created
privately  or  through  governmental  action.  In the event a court of competent
jurisdiction  determines  that  the  term of this Deed violates the Rule Against
Perpetuities,  the term of this Deed shall automatically be revised and reformed
to  coincide  with  the maximum term permitted by the Rule Against Perpetuities,
and  this  Deed shall not be terminated solely as a result of a violation of the
Rule  Against  Perpetuities.

<PAGE>

                       ARTICLE III     PRODUCTION ROYALTY

     3.1     Calculation  of  NSR. The percentage rate of the Production Royalty
payable  to  the  Grantee  shall  be the rate described in the PARAGRAPH 1.3 and
                                                               -------------
PARAGRAPH  1.9  OF  EXHIBIT  I.  The  Production Royalty shall be determined and
    --------------------------
payable  in  accordance  with  the  provisions  of  this  EXHIBIT  E.

     3.2  INSURANCE  PROCEEDS.  In the event Grantor receives insurance proceeds
for  loss  of production due to a casualty event which, without insurance, would
adversely  affect  the  amount  of  the Production Royalty, Grantor shall pay to
Grantee  the  Production Royalty percentage of any such insurance proceeds which
are  received by Grantor for such loss of production after making the deductions
provided  under  paragraphs  (A)  AND  (B)  OF  PARAGRAPH  1.4 OF THIS EXHIBIT E
                             ---------------------------------------------------

     3.3  TIME  AND MANNER; IN-KIND OR CASH PAYMENT. At a time of making payment
to  or otherwise crediting the account of Grantor, (but within the time provided
in  PARAGRAPH  3.4  below)  the smelter, refiner, processor, purchaser, or other
user  ("Payor") of the ore shall contemporaneously pay the Production Royalty in
accordance  with  written instructions given to the Payor by Grantee as provided
in (A) and (B) below. Once the Payor has received instructions from the Grantee,
such  instructions shall remain in effect until the Payor has received different
instructions  from  Grantee.  Grantor acknowledges its primary obligation to pay
the  NSR,  that  no  undertaking  by  the  Payor  shall  relieve Grantor of that
obligation, and agrees to indemnify, protect and defend Grantee from and against
any  loss,  cost  (including  the attorney's fees incurred) or liability arising
from  the  performance or failure of performance by Payor hereunder or under any
contractual  or  other  arrangements  entered  into  by  Grantor  with the Payor
pursuant  to  or  for the purposes of complying with this PARAGRAPH 3.3. Grantee
may,  from  time  to  time in its discretion, change the place or account number
provided  in  (A)  and (B) below by giving written notice thereof to Grantor and
the  Payor, such notice shall be effective upon actual receipt by Grantor or the
Payor,  or  upon  the fourth day after deposit of such notice in the mail, first
class  postage  prepaid,  addressed  to  Grantor  or the Payor, whichever occurs
first.  The  Payor  shall  pay  the  NSR:

(a)  Precious Metals. For each shipment of Precious Metals either A) in the form
     of  gold bullion (995 + fine gold) directly to Grantee's account maintained
     with  the  Payor  as  directed by Grantee, or (B) by delivery of a check or
     draft  payable to Grantee's account with a bank to be designated in writing
     by  Grantee.

<PAGE>

(b)  Other  Minerals. For each shipment of Other Minerals by delivery of a check
     or  draft  payable  to  Grantee's  account  with a bank to be designated in
     writing  by  Grantee.

     3.4     PAYMENT  ACCOUNTING; INTERIM SETTLEMENTS; LATE CHARGES. All credits
or  payments  of  the  Production  Royalty  shall  be  accompanied by a detailed
statement  explaining  the  manner  in which the payment was calculated together
with  any  available settlement sheets from the Payor. In no event shall payment
of the Production Royalty be made later than thirty (30) days after the delivery
to  the  Payor,  or use by the Grantor, of the Gold, Precious Metal Products, or
Other  Minerals.  Such  payments  and  statements  shall  be deemed conclusively
correct  unless  Grantee  objects to them in writing within eighteen (18) months
after receipt thereof.  On those occasions when all necessary information is not
available  to  the Payor within the thirty (30) day period, the Payor shall make
an  interim  settlement  of  the Production Royalty for such payment of not less
than ninety percent (90%) of the anticipated final settlement Production Royalty
as  determined  by  the  assays  and quantities of the Precious Metals, Precious
Metal  Products,  or  Other Minerals received by the Payor with respect to which
such  interim  settlement  is  being  made.  Final  settlement of the Production
Royalty  shall  be  promptly  made  upon receipt by the Payor of all information
necessary  or  appropriate  to  make final settlement for such shipment.  In the
event  payment  of  the  Production  Royalty is not made with the time set forth
above,  Grantee  may  give  the  Grantor  notice in writing of such default, and
unless  within  five  (5)  days  of  receipt  of  such notice Grantee shall have
received such Production Royalty payment, then Grantor shall pay interest on the
delinquent  payment  at  an annual rate equal to ten (10) percentage points over
the  Prime  Rate,  but in no event shall the rate of interest exceed the maximum
permitted by Law, which shall accrue from the day the delinquent payment was due
to the date of payment of the Production Royalty and accrued interest.  Attorney
fees  resulting  from  the  collection  of the delinquent payment by the Grantee
shall  be  paid  by  Grantor,  without  exception.

     3.5  HEDGING  TRANSACTIONS; FUTURES, OPTIONS AND OTHER TRADING. All profits
and  losses  resulting  from  Grantor engaging in any commodity futures trading,
option  trading,  or  metal  trading,  or any combination thereof, and any other
hedging  transactions  (collectively  "hedging  transactions")  are specifically
excluded  from  the  Production  Royalty calculations pursuant to this Deed. All
hedging  transactions by Grantor and all profits or losses associated therewith,
if  any,  shall  be  solely  for  Grantor's  account.

     3.6  COMMINGLING.  Before  any Ore produced from the Property is commingled
with  Ore  from  other  properties,  the Ore produced from the Property shall be
measured and sampled in accordance with sound mining and metallurgical practices
for  metal,  commercial minerals and other appropriate content. Detailed records
shall be kept by Grantor showing measures, assays of metal, commercial minerals,
and other appropriate content and penalty substances, and gross metal content of
the Ore. From this information, Grantor shall determine the amount of Production
Royalty  due  and  payable  to  Grantee  from  Ore  produced  from  the Property
commingled  with  Ore  from  other  properties.  Following the expiration of the
period  for  objection  described above in PARAGRAPH 3.4 above above, and absent
timely  objection, if any, made by Grantee, Grantor may dispose of the materials
and  data  required  to  be  kept  and  produced  by  this  Paragraph.

<PAGE>

           ARTICLE IV     BOOKS; RECORDS; INSPECTIONS; CONFIDENTIALITY

     4.1     BOOKS.  Grantor  shall  keep true and accurate books and records of
all  of  its  operations  and  activities on the Properties and under this Deed.
Such  books  and  records  shall be kept on the accrual basis in accordance with
generally  accepted  accounting  principles  consistently  applied.  Not  more
frequently  than  annually and within the time provided in PARAGRAPH 3.4 of this
Deed,  Grantee  may,  perform  an audit or other examination of all of Grantor's
books and records kept as required by this Deed.  The audit will be at Grantee's
sole  expense  unless a discrepancy of plus or minus 10% is discovered, then the
cost  of  the  audit  shall be reimbursed by Grantor.  All financial information
shall  conclusively  be  deemed correct for purposes of this Deed unless Grantee
has  given timely notice that it desires to audit or examine Grantor's books and
records  in  the  manner  and  within the time provided in PARAGRAPH 3.4 of this
Deed.  Grantee  shall  promptly  commence  any  such audits and shall diligently
prosecute  the  same  to  conclusion.

     4.2  REPORTS.  Not later than February 1 following the end of each calendar
year,  Grantor shall provide Grantee with an annual report of all activities and
operations  conducted  upon or with respect to the Property during the preceding
calendar  year.  Such  annual  report  shall  include  estimates  of  proposed
expenditures  upon,  anticipated  production  from,  and estimated remaining ore
reserves  on  the  Property  for  the succeeding calendar year. Additionally and
within  30  days  of  the  end  of  each calendar quarter, Grantor shall provide
Grantee  access  to  all  data  and  information  generated  with respect to the
Property  during  the  calendar  quarter  just  ended.

     4.3  INSPECTIONS.  Grantee, or its authorized agents or representatives, on
not  less  than  two  (2) days notice to Grantor, may enter upon all surface and
subsurface  portions of the Property for the purpose of inspecting the Property,
all  improvements  thereto  and  operations  thereon,  as well as inspecting and
copying all records and data, including without limitation such records and data
which are maintained electronically, pertaining to all activities and operations
on  or with respect to the Property, improvement thereto and operations thereon.
Grantee,  or  its authorized agents or representatives, shall enter the Property
at  Grantee's own risk and expense and may not unreasonably hinder operations on
or pertaining to the Property. Grantee shall indemnify and hold Grantor harmless
from  any  damage,  claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees, employees, officers, directors, agents, or
representative  caused by Grantee's exercise of its rights under this Paragraph.

     4.4  INVESTOR  TOURS.  Upon  reasonable  notice  to  Grantor  and  not more
frequently  than  semi-annually,  Grantee  shall  have  the  right to conduct an
investors  tour  on  the  Property and facilities associated therewith; provided
that  such  tours shall not unreasonably interfere with Grantor's activities and
operations.  Such  investors' tours shall be at the sole risk of Grantee and its
invitees,  and  Grantee  shall  indemnify  and  hold  Grantor  harmless from any
liability,  damage, claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees,  employees, officers, directors, agents or
representatives caused by Grantee's exercise of its rights under this Paragraph.

<PAGE>

4.5     CONFIDENTIALITY.  During  the   term  of  this   Deed,  all  information
concerning this Agreement or any matters arising from this Deed shall be treated
as  confidential  by  Grantee and shall not be disclosed by Grantee to any other
party  without  the  previous written consent of Grantor, such consent not to be
unreasonably  withheld,  except:  (i)  to the extent that such disclosure may be
necessary  for  observance  of the requirements of securities commissions, stock
exchanges  or  other  legal  requirements, or (ii) for the accomplishment of the
purposes  of  this  Deed, or (iii) to any of Grantee's accounting, legal and tax
advisors, or (iv) to any third party to whom Grantee, in good faith, anticipates
selling  or  assigning  Grantee's  interest  hereunder,  provided  that  Grantee
requires  such third party to maintain the disclosed information confidential on
the  same  basis  as  herein  provided.  If  Grantor  does not give a definitive
written  reply  to any request for permission to disclose on the second business
day  following  the  date  request for same is deemed delivered, consent to such
disclosure  shall  be  deemed  to  have  been  given.

  ARTICLE V     COMPLIANCE WITH LAWS, RECLAMATION, ENVIRONMENTAL OBLIGATIONS AND
                                   INDEMNITIES

     5.1     COMPLIANCE  WITH  LAWS.  Grantor shall at all times comply with all
applicable  present  or  future  federal,  provincial  and local laws, statutes,
rules,  regulations,  permits,  ordinances,  certificates,  licenses  and  other
regulatory  requirements,  policies  and  guidelines  relating  to  Grantor's
operations and activities on or with respect to the Property; provided, however,
Grantor shall have the right to contest any of the same if such contest does not
jeopardize  the  Property  or  Grantee's  rights  thereto  or  under  this Deed.

     5.2  RECLAMATION, ENVIRONMENTAL OBLIGATIONS AND INDEMNITIES. Grantor shall,
from  and  after  the  date this Deed takes effect, timely and fully perform all
reclamation  required  by  all governmental authorities pertaining or related to
Grantor's  operations  or  activities  on  or  with  respect  to the Property or
required  this  Deed.  Grantor,  from and after the date this Deed takes effect,
covenants  and agrees not to undertake, cause, suffer or permit any condition or
activity  at, on or in the vicinity of the Property which constitutes a nuisance
or  which  results  in  a  violation of or liability under any present or future
applicable  provincial,  federal  or  local environmental laws, statutes, rules,
regulations,  permits,  ordinances,  certificates, licensed and other regulatory
requirements,   policies    and    guidelines    (collectively    "Environmental
Obligations").  From and after the date this Deed takes effect, and in the event
Grantor  fails  to  comply  with  any  Environmental  Obligations,  or otherwise
breaches  any  Environmental  Obligations,  Grantor  shall  promptly  remedy and
correct such failure to comply, satisfy such liability, and cure such breach and
satisfy all obligations in connection therewith. Grantor covenants and agrees to
indemnify  and  hold  harmless from any and all liabilities, obligations, claims
(including  administrative  claims  and  claims  for injunctive relief), losses,
costs,  damages,  expenses,  attorney fees and causes of action asserted against
Grantee  related  to  Grantor's failure to comply with and satisfy Environmental
Obligations  or  other  obligations under this Deed from and after the date this
Deed takes effect; provided, however, that this indemnification by Grantor shall
not  apply  to environmental and reclamation conditions existing on the Property
prior  to  the date this Deed takes effect. The covenants and agreements of this
PARAGRAPH  5.2  shall survive the termination of the Grantor's rights under this
Deed  or  to  the  Property.

                           ARTICLE VI     STOCKPILING

     The rights of Grantor to stockpile, store or place Ore, off of the Property
pursuant  to  any  of the provisions of this Deed shall not be exercisable until
Grantor has first paid Grantee the Production Royalty, provided however that the
Grantor  may  remove  reasonable  quantities  of  Ore  from the Property for the
purposes  of  bulk sampling and testing and there shall be no NSR payable to the
Grantee  with  respect  thereto  unless  revenues  are  derived  there  from.

                      ARTICLE VII     TAILINGS AND RESIDUE

     All  tailings,  residues,  waste  rock,  spoiled  leach materials and other
materials  (collectively  "Materials")  resulting  from Grantor's operations and
activities  on  the  Property  shall  be the sole property of Grantor, but shall
remain  subject  to  the  Production  Royalty  should  the  same be processed or
reprocessed,  as  the case may be, in the future and result in the production of
Ore.  Notwithstanding  the foregoing, Grantor shall have the right to dispose of
Materials  from  the  Property  on or off the Property and to commingle the same
Material  from  other  properties.  In  the  event  Materials  are  processed or
reprocessed, as the case may be, the Production Royalty payable thereon shall be
determined  on  a pro rata basis as determined by using the best engineering and
technical  practices  then  available.

     ARTICLE VIII     TITLE MAINTENANCE, MAINTENANCE AND TAXES, ABANDONMENT,;
                         CONVERSION AND EXCHANGE RIGHTS

     8.1     TITLE  MAINTENANCE AND TAXES. From the date this Deed takes effect,
Grantor  shall  maintain  title  to  the Property, including without limitation,
paying  when  due  all  taxes  on  or with respect to the Property and doing all
things  and  making all payments necessary or appropriate to maintain the right,
title  and  interest  of  Grantor and Grantee, respectively, in the Property and
under  this  Deed.

     8.2 ASSESSMENT WORK. Grantor shall perform all required assessment work on,
pay  all claim maintenance fees and maintain title to the Property in accordance
with  applicable  federal  and state laws; provided, however, that Grantor shall
not  be  liable  for  the loss of title to any of the mining claims comprising a
portion  of  the  Property  as  a result of a determination that assessment work
performed  by  Grantor  in  good faith does not qualify as assessment work under
applicable  statutes.

<PAGE>

     8.3  ABANDONMENT.  In  the  event  Grantor  intends  to  abandon any of the
unpatented  mining  claims  or  fee  land  comprising the Property ("Abandonment
Property"),  Grantor  shall  first  give  notice of such intention to Grantee at
least  90 days in advance of the proposed date of abandonment. If not later than
10  days  before  the proposed date of abandonment Grantor receives from Grantee
written  notice  that Grantee desires Grantor to convey the Abandonment Property
to  Grantee,  Grantor  shall,  without  additional  consideration,  convey  the
Abandonment  Property in good standing by quit claim, deed, without warranty, to
Grantee  and shall therefore have no further obligation to maintain the title to
the  Abandonment  Property;  provided, however, if Grantor reacquires any of the
ground  covered  by  the  Abandonment Property at any time within five (5) years
following  abandonment,  the production of Ore from such ground shall be subject
to  this  Deed.

     8.4  CONVERSION  AND EXCHANGE RIGHTS. The terms and provisions of this Deed
shall  apply  to  a conversion of any of the unpatented mining claims comprising
all  or  a portion of the Properties to a different form of mineral, surface and
associated rights pursuant to (i) patent, (ii) exchange or (iii) another form of
claim  or  right  pursuant  to  amendment,  repeal  of, or other Act of Congress
affecting  the Mining Act of 1872 (30 U.S.C. Sec.Sec. 21 et seq.). Grantor shall
have  the  right  to  convert any of the unpatented mining claims to a different
form  of  mineral,  surface  and  associated rights pursuant to (i) patent, (ii)
exchange  or  (iii) another form of claim or right pursuant to amendment, repeal
of,  or  other  Act  of  Congress affecting the Mining Act of 1872, provided the
rights  granted  to  Grantee  with respect to the Properties under this Deed are
affected  as  little  as  possible  given  the  constraints  of  any   such  new
legislation.  Any  action taken by Grantor under this Paragraph shall not affect
Grantor's  obligations with respect to those portions of the Property subject to
such  actions,  given  the  law  applicable  to  patents  and  exchanges  or the
constraints  of any such new legislation. Any action taken by Grantor under this
Paragraph  shall not affect Grantor's obligations with respect to those portions
of the Property subject to such actions, given the law applicable to patents and
exchanges  or the constraints of any such new legislation. New deeds, reflecting
Grantees  continued  interest,  must be recorded within 30 days of availability.

                            ARTICLE IX     INSURANCE

     Grantor  shall  purchase  or otherwise arrange at its own expense and shall
keep  in  force at all times, directly or through the services of an independent
contractor,  insurance,  including  but  not  limited  to,  the  following:

     9.1  WORKMAN'S  COMPENSATION INSURANCE. Workman's compensation insurance or
the  like  covering  all  person's  engaged  in the performance of activities or
operations  as is required or appropriate under law or local governmental bodies
or  agencies.

     9.2  GENERAL  LIABILITY.  Comprehensive  general public liability insurance
against  claims  for bodily injury or death or property damage arising out of or
resulting  from  Grantor's  activities  or  operations on or with respect to the
Property,  in  such amounts as will adequately protect Grantor, Grantee, the NSR
and  the  Property  from  any  and all claims, liabilities and damages which may
arise  with  respect  to  this Deed or the Property. Grantee shall be named as a
co-insured.

<PAGE>

                        ARTICLE X     GENERAL PROVISIONS

     10.1     ARBITRATION.  Any dispute arising out of or related to any report,
payment,  calculation  or  audit  shall  be  resolved  solely by the arbitration
procedure  provided  in  ARTICLE  XV  of  the  Operating  Agreement.
                         -----------

     10.2  CONFLICT.  In  the event of a conflict between the provisions of this
Deed and the provisions of the Operating Agreement prior to the Exercise Date as
specified  in the Operating Agreement, the provisions of the Operating Agreement
shall  prevail.

     10.3  ADDITIONAL DOCUMENTS. The Parties shall from time to time execute all
such further instruments and documents and do all such further actions as may be
necessary  to  effectuate  the  purposes  of  this  Deed.

     10.4  COVENANT  RUNNING  WITH  LAND;  BINDING EFFECT. All of the covenants,
conditions,  and terms of this Deed shall (i) be of benefit to the Parties, (ii)
run  as  a  covenant with the Property and the ground covered thereby, and (iii)
bind  and  inure  to  the  benefit  of  the  Parties.

     10.5  NO  PARTNERSHIP.  Nothing  in this Deed shall be construed to create,
expressly  or  by  implication,  a joint venture, mining partnership, commercial
partnership,  or  other  partnership  relationship  between  Parties.

     10.6  GOVERNING LAW. This Deed is to be governed by and construed under the
laws  of  the  State  of  Nevada.

     10.7  ATTORNEY  FEES. In the event a dispute between the Parties results in
litigation,  the  prevailing  Party in such litigation shall, in addition to any
other  relief  granted  by  the  court,  be  entitled  to a judgment against the
non-prevailing  party  for  reasonable  attorney  fees  and  costs  of  suit.

     10.8 NOTICES. SECTION 16.1 of the Operating Agreement provides for notices.
                   ------------
Either Party may change its address for the purpose of notices or communications
by  furnishing  notice  thereof to the other Party in the manner described under
SECTION  16.1  of  the  Operating  Agreement.
-------------

     10.9  TIME  OF  ESSENCE.  Time  is  of  essence  in  this  Deed.

     10.10  ENTIRE  AGREEMENT. This Deed and the Operating Agreement between the
Parties,  and  no  oral agreement, promise, statement or representation which is
not contained herein shall be binding on the Parties unless subsequently reduced
to  writing  and  signed  by  the  Parties.  The  provisions  of this Deed shall
supersede  all  previous  oral or written agreements between the Parties hereto.

<PAGE>

                                    EXHIBIT F

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                             EXHIBIT F     INSURANCE

     The  Manager  shall, at all times while conducting Operations, comply fully
with  the  applicable  workers'  compensation  laws  and  purchase,  or  provide
protection  for  the  Company  comparable  to  that provided under standard form
insurance  policies  for the following risk categories: (i) comprehensive public
liability  and property damage with combined limits of not less than one million
Dollars  ($1,000,000)  for  bodily  injury  and property damage; (ii) automobile
insurance  with  combined   limits   of  not   less  than  one  million  Dollars
($1,000,000);  and  (iii) adequate and reasonable insurance against risk of fire
and other risks ordinarily insured against in similar operations. If the Manager
elects  to  self-insure, it shall charge to the Business Account an amount equal
to  the  premium  it  would  have paid had it secured and maintained a policy or
policies of insurance on a competitive bid basis in the amount of such coverage.
Each  Member  shall  self-insure or purchase for its own account such additional
insurance  as it deems necessary. The limits of $1,000,000 in (i) and (ii) above
will  be  increased  to  $5,000,000  during  Development  and  Mining.

<PAGE>

                                    EXHIBIT G

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                    EXHIBIT G     INITIAL PROGRAM AND BUDGET

                  See Under Separate Enclosure Excel WorkBook:

                     EXHIBIT G INITIAL PROGRAM & BUDGET.XLS

<PAGE>

                                    EXHIBIT H

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                         EXHIBIT H     PREEMPTIVE RIGHTS

     1.1     PREEMPTIVE  RIGHTS. If either Member intends to Transfer all or any
part  of  its  Ownership  Interest,  or an Affiliate of either Member intends to
Transfer  Control  of  such  Member  ("TRANSFERRING  ENTITY"), such Member shall
promptly  notify the other Member of such intentions. The notice shall state the
price and all other pertinent terms and conditions of the intended Transfer, and
shall  be  accompanied  by  a copy of the offer or the contract for sale. If the
consideration  for  the  intended  transfer  is, in whole or in part, other than
monetary,  the  notice  shall  describe  such  consideration  and  its  monetary
equivalent  (based  upon  the fair market value of the nonmonetary consideration
and  stated  in  terms  of cash or currency). The other Member shall have thirty
(30)  days  from  the  date  such notice is delivered to notify the Transferring
Entity  (and  the Member if its Affiliate is the Transferring Entity) whether it
elects  to  acquire  the  offered  interest  at  the same price (or its monetary
equivalent  in  cash  or  currency)  and on the same terms and conditions as set
forth  in  the  notice. If it does so elect, the acquisition by the other Member
shall  be  consummated  promptly  after  notice  of  such election is delivered.

(a)  If the other Member fails to so elect within the period provided for above,
     the  Transferring  Entity  shall  have   thirty  (30)  days  following  the
     expiration  of such period to consummate the Transfer to a third party at a
     price  and on terms no less favorable to the Transferring Entity than those
     offered  by   the   Transferring   Entity  to   the  other  Member  in  the
     aforementioned  notice.

(b)  If  the  Transferring  Entity  fails  to consummate the Transfer to a third
     party  within the period set forth above, the preemptive right of the other
     Member  in  such  offered  interest  shall  be  deemed  to  be revived. Any
     subsequent  proposal  to  Transfer  such  interest  shall  be  conducted in
     accordance  with  all  of  the  procedures  set  forth  in  this Paragraph.

     1.2     EXCEPTIONS TO PREEMPTIVE RIGHT. PARAGRAPH 1.1 above shall not apply
to  the  following:

<PAGE>

(a)  Transfer  by  either Member of all or any part of its Ownership Interest to
     an  Affiliate;

(b)  Incorporation  of  either  Member,  or  corporate  consolidation  or
     reorganization of either Member by which the surviving entity shall possess
     substantially all of the stock or all of the property rights and interests,
     and  be  subject to substantially all of the liabilities and obligations of
     that  Member;

(c)  Corporate  merger  or  amalgamation  involving  either  Member by which the
     surviving  entity  or amalgamated company shall possess all of the stock or
     all  of  the property rights and interests, and be subject to substantially
     all  of  the liabilities and obligations of that Member; provided, however,
     that  the  value  of  the  merging or amalgamating Member's interest in the
     Company,  evidenced by its Capital Account balance (as described in EXHIBIT
                                                                         -------
     C),  does not exceed fifty percent of the Net Worth of the surviving entity
     --
     or  amalgamated  company;

(d)  The  transfer of Control of either Member by an Affiliate to such Member or
     to  another  Affiliate;

(e)  Subject  to  SUBSECTION 7.2(G) of the Agreement, the grant by either Member
                  -----------------
     of  a  security  interest  in  its  Ownership  Interest  by  Encumbrance;

(f)  The  creation by any Affiliate of either Member of an Encumbrance affecting
     its  Control  of  such  Member;  or

     For  purposes  hereof,  the term "NET WORTH" shall mean the remainder after
total  liabilities are deducted from total assets. In the case of a corporation,
Net  Worth  includes  both  capital  stock and surplus. In the case of a limited
liability  company,  Net  Worth  includes member contributions. In the case of a
partnership  or  sole proprietorship, Net Worth includes the original investment
plus  accumulated  and  re-invested  profits.

<PAGE>

                                    EXHIBIT I

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

     EXHIBIT I     SCHEDULE OF BMGE INITIAL CONTRIBUTIONS, OWNERSHIP INTEREST
        CALCULATIONS AND FAILURE TO MAKE CONTRIBUTIONS DILUTION SCHEDULE

     BMGE  will contribute a total of $3,250,000.00 to the Program to earn up to
a  total  of  seventy  percent  (70%)  interest  PGL  according to the following
schedule  and  be  subject  to  the  following dilution schedule for election to
discontinue  funding.

     1.1  FIELD  EXAMINATION  STAGE.  BMGE  shall  contribute  $325,000 less any
non-refundable  payments  in  PARAGRAPH  1.13 OF THIS EXHIBIT I during the field
examination  stage.  This  sum is due in PGL's bank account within five business
days  after  the  Effective Date. Funds expenditure from the PGL bank account or
any  subsequent  investments of those funds, will require at least one signature
each  from  NGXS  and  BMGE,  for the duration of this LLC. BMGE's obligation is
unconditional  and  the sum of $325,000 is nonrefundable. Upon completion of the
Field  Examination  Stage,  BMGE may elect to continue funding or to discontinue
funding.  If  BMGE  elects to discontinue funding, the Operating Agreement shall
terminate  and  BMGE  shall  have  no  interest  in  PGL  or  any of its assets.

     1.2  LAND  ACQUISITION  STAGE.  BMGE shall deposit $840,000 into PGL's bank
account  within 60 days of the Effective Date. On BMGE's deposit of $840,000 and
PGL's  expenditure  of such funds for the Land Acquisition Stage, BMGE will have
earned  a  50%  interest  in  PGL. If BMGE does not complete funding of the Land
Acquisition  Stage,  the Operating Agreement shall terminate and BMGE shall have
no  interest  in  PGL  or  its  assets.  If  BMGE  completes funding of the Land
Acquisition  Stage,  BMGE  shall  have  the  election  to  continue  funding  in
accordance  with  SECTIONS  1.3  THROUGH  1.6  OF  THIS  EXHIBIT  I.

<PAGE>

1.3  DILUTION.  Following  BMGE's completion of funding for the Land Acquisition
Stage  and  PGL's  acquisition of properties, BMGE must elect (a) to continue to
contribute  funds  to  NGXS  for additional Stages as prescribed in Sections 1.4
through  1.6  of  this  Exhibit  I; or (b) to discontinue additional funding, in
which  case BMGE shall have a 50% Ownership Interest in BMG, subject to dilution
in  accordance  with  the formula prescribed in this Section 1.3 below.  If BMGE
elects  to  continue funding in accordance with Sections 1.4 through 1.6 of this
Exhibit  I,  on  BMGE's completion of funding for each Stage, BMGE will earn the
additional  Ownership  Interests  described  in Sections 1.4 through 1.6 of this
Exhibit  I.  The  formula  for  determination  and  dilution of BMGE's Ownership
Interest  if  it  elects  to  discontinue  funding  shall  be:

   BMGE's  %  interest  in  PGL  =  ((A  -  (B/2))  x  C%)/A;

   Where:   A  =  Total  of  BMGE's  initial  and  subsequent  contributions.
            B  =  Total of third party plus NGXS expenditures on PGL Properties.
            C% =  BMGE's  %  interest  at  the  last  completed funding  point.

     If  BMGE's  percent (%) interest in PGL is diluted to less than or equal to
25%,  BMGE's  interest  shall  be  converted  to  a  production royalty on PGL's
properties  (the  "ROYALTY PROPERTIES") owned at the time of dilution which were
generated  by  the  exploration program funded by BMGE under this agreement; the
royalty shall not apply to any property generated after BMGE elects not to fund.
The  production  royalty  shall  be  a  1.25%  net  smelter royalty ("NSR") from
production  of  minerals  from  the Royalty Properties.  BMGE shall be deemed to
have  withdrawn  from PGL and shall transfer to NGXS all of its right, title and
interest  in  PGL  and  its  properties,  subject  to the royalty on the Royalty
Properties;

     If  BMGE  elects  to  discontinue funding of any Stage, NGXS shall have the
authority  to  admit  additional members to PGL and BMGE will no longer have any
voting  rights  on  the  Management  Committee.  BMGE's  interest in PGL will be
converted  from  a  Member's  Ownership  Interest  to  an  Economic  Interest.

     1.4  WATER  PLUME  DEFINITION STAGE. BMGE shall deposit $385,000 into PGL's
bank  account  by  the  1st  day  of  month  8  of  the  Effective Date and upon
expenditure  will earn a 55% interest in the properties generated by the ongoing
exploration Program.  Upon completion of expenditure BMGE must elect to continue
funding  or elect to discontinue funding.  If BMGE elects to discontinue funding
after  that  expenditure,  BMGE's  55% interest will be reduced according to the
dilution  formula  outlined  above;

     1.5  WATER PLUME DRILLING STAGE. BMGE shall deposit USD $385,000 into PGL's
bank  account  by  the  1st  day  of  month  12  of  the Effective Date and upon
expenditure will earn a 60% interest in PGL. Upon completion of expenditure BMGE
must  elect  to continue funding or elect to discontinue funding. If BMGE elects
to  discontinue  funding  after  that  expenditure,  BMGE's 60% interest will be
reduced  according  to  the  dilution  formula  outlined  above;

     1.6  DISCOVERY DRILLING STAGE. BMGE shall deposit in the escrow account USD
$1,315,000 by the 1st day of month 17 of the Effective Date and upon expenditure
will  earn  a  70%  interest  in  PGL which will own the properties generated by
NGXS's  exploration Program. BMGE will be deemed fully vested upon completion of
those  expenditures.

     1.7 RELEASE OF FUNDS PROCEDURE. NGXS will present a report to and meet with
BMGE  upon  completion of each Program and Budget Stage. BMGE will then have ten
(10)  days  to decide if they will elect to continue next Stage funding. If NGXS
does  not  receive notification to cease funding within the ten (10) day period,
the  funds  will be automatically released to PGL's working account and the next
Program  and  Budget  Stage  will  commence.  In  the event BMGE elects to cease
funding, those funds that were advanced for the next Stage will be released back
to  BMGE  with  ten  (10)  days,  less  any  outstanding  liabilities.

<PAGE>

     1.8 FAILURE TO MAKE CONTRIBUTIONS. BMGE's failure to deposit funds in PGL's
bank account within 10 days of the scheduled deposit due date shall constitute a
default.  BMGE's  failure  to cure a default within 10 more days shall be BMGE's
automatic  election  to  cease  funding. If BMGE does not complete funding for a
particular  Stage,  its  Ownership  Interest  remains  fixed  at  the percentage
immediately  preceding  commencement  of  the  Stage.  BMGE is not entitled to a
prorated  additional  Ownership  Interest based upon partial funding of a Stage.

     1.9  OWNERSHIP  INTEREST AT COMPLETION OF INITIAL PROGRAM AND BUDGET. After
BMGE  completes  its  Initial  Contribution of $3,250,000, BMGE will own 70% and
NGXS  will  own  30%  of  PGL.  PGL  will own the properties generated by NGXS's
Initial  Program  and Budget according to EXHIBIT G, except for those properties
                                          ---------
quitclaimed  to  BMGE  in  PARAGRAPH  1.10  OF  THIS  EXHIBIT  I  below.

     NGXS's  interest  in  PGL will not be diluted to less than 30%, except that
BMGE  may  earn  an  additional 10% from each additionally funded property(ies),
according  to  PARAGRAPH 1.12 OF THIS EXHIBIT I below. If a property is suitable
for  development  it  will  be separated from PGL within 60 days of BMGE earning
either 70% of the LLC or BMGE earning the additional 10% interest and treated as
a  Supplemental  Business  Arrangement  in  accordance  with  SECTION 5.3 OF THE
                                                              ------------------
MEMBERS' AGREEMENT and SECTION 10.13 OF THE AGREEMENT. When BMGE and NGXS decide
------------------     ------------------------------
to develop the separated property (themselves or with a financing partner) or to
transfer  interest  in the separated property, such development or transfer must
be  a  third  party,  arm's length transaction negotiated in good faith with due
regard  for  each  parties rights under this Agreement. PGL will control 100% of
the  property  disposition.  NGXS  may  elect to participate in the PGL property
transfer  outcome  on  a  30%  working basis OR NGXS may retain an undiluted 30%
carried  interest  through production in each Property that may be converted, at
NGXS's  discretion,  to  a  15%  "NPI"  ("Net Profits Interest" as calculated in
accordance  with EXHIBIT K) or a 6% "NSR" ("Net Smelter Return" as calculated in
                 ----------
accordance  with EXHIBIT E) or a 4% "GBR" ("Gross Bullion Royalty" as calculated
                 ----------
in accordance with EXHIBIT L) at production decision time. If BMGE has exercised
                   ---------
its  additional  10%  earn-in, NGXS may elect to participate in the PGL property
disposition  outcome  on a 20% working basis OR NGXS may retain an undiluted 20%
carried  interest  through production in each Property that may be converted, at
NGXS's  discretion, to a 10% NPI (as calculated in accordance with EXHIBIT K) or
                                                                   ---------
a  5%  NSR  (as  calculated  in  accordance  with  EXHIBIT  E) or a 2.5% GBR (as
                                                   -----------
calculated  in  accordance  with  EXHIBIT  L)  at production decision time. NGXS
                                  -----------
recognizes  that  each asset may require additional negotiation with an oncoming
developer/producer  and  NGXS will be committed to negotiate final terms in good
faith,  in  concert  with  BMGE.

     1.10  PROPERTIES  IDENTIFIED,  BUT NOT ACQUIRED BY NGXS PROGRAM AND BUDGET.
Properties identified, but not recommended by NGXS to be acquired by the Program
and Budget of Exhibit G may be acquired exclusively by BMGE and will not involve
NGXS in any capacity. Such exclusivity will expire upon BMGE's election to cease
funding  in  accordance with this EXHIBIT I or 24 months, whichever comes first.
Properties  initially  acquired in accordance with Exhibit G that do not advance
will  be quitclaimed to BMGE and no further Program and Budget resources will be
expended  on  land  holding  or  other  costs.  NGXS  will  participate in these
identified  and  quitclaimed  properties through BMGE stock and stock options as
outlined  in  EXHIBIT  J.  NGXS  will  also  have  one director position and one
management  position  in  BMGE.

<PAGE>

     1.11  FORMATION OF PGL. BMGE will cause PGL to be formed and be responsible
for  all  costs associated with that formation, to maintain it in good standing,
and  all other day to day costs. Properties generated by the Initial Program and
Budget  will  be  held in the name of PGL subject to the terms and conditions of
the  OA.

     1.12 RIGHT TO EARN ADDITIONAL INTEREST. Once BMGE has completed its Initial
Contribution,  BMGE  will have the right to earn an additional ten percent (10%)
interest  in  each  of the PGL properties by funding $750,000 of additional work
per  property. BMGE must elect to earn the additional interest within sixty (60)
days  of  earning 70% in PGL and that work to commence not less than one hundred
and  twenty  (120) days after indicating election. BMGE's additional ten percent
(10%)  interest  will  be  the right to the return from each additionally funded
property.  NGXS  will retain the option, but not the obligation, to conduct that
work.

     1.13  NON-REFUNDABLE PRE-PAYMENT OF INITIAL CONTRIBUTION. NGXS acknowledges
that  BMGE  has previously transferred $50,000 by wire and or check to NGXS as a
non-refundable,  pre-payment  on  its  Initial  Contribution  in accordance with
EXHIBIT  G  and  EXHIBIT  I.
----------------------------

<PAGE>

                                    EXHIBIT J

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

              EXHIBIT J     SCHEDULE OF BMGE STOCK GRANTED TO NGXS

                 NGXS OWNER          GIFTED SEC RULE 144 STOCK
                 ----------          -------------------------
                 Wade A. Hodges               400,000
                 Kenneth N. Tullar            400,000
                 Paul M. Taufen               200,000

     1.1  DELIVERY DATE OF BMGE STOCK. The specified stock shall be delivered by
July  5,  2004.

     1.2 RESTRICTIONS ON BMGE STOCK. The BMGE stock will be restricted according
to SEC rule 144 that applies to public resales of restricted securities, as well
as  all  sales  by  affiliates.  The  requirements  include:  (1) current public
information  about  the  issuer,  (2)  a one-year holding period for "Restricted
Securities,"  (3) unsolicited brokers' transactions, (4) an amount limitation --
the  greater of 1% of the outstanding stock or the average weekly trading volume
may be sold during any three-month period, and (5) a Form 144 filing. Under Rule
144(k),  a  non-affiliate  individual  who has held restricted securities for at
least  two  years can sell his or her stock without meeting Rule 144 conditions.
The  seller  can't  be an affiliate at any time in the three months prior to the
sale. Before the sale, under Rule 144(k), the holder of the securities will need
to  have  the  restricted  legend  removed  from  the  stock.

     1.3  REPRESENTATIONS  AND WARRANTIES. BMGE represents and warrants that the
shares will be fully paid and non-assessable and that the shares will be listed,
registered  and  otherwise  available  for  trading.

<PAGE>

                                    EXHIBIT K

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                      EXHIBIT K     NET PROFITS CALCULATION

                         ARTICLE I     MEANING OF TERMS

     As  used  herein,  unless  otherwise  defined herein, the terms used herein
shall  have  the same meaning as given to them in the Operating Agreement of PGL
("Operating  Agreement")  dated  June    ,  2004 pursuant to which the Deed with
                                      ---
Reservation  of  Net  Smelter  Returns  Royalty was executed and delivered.  The
following  terms  shall  have  the  meanings  specified  below:

     1.1 COMMERCIAL PRODUCTION. As used herein, the term "Commercial Production"
shall  mean  the  milling,  or leaching, and sale of ores and concentrates which
result  from  Ore  extracted  from the Property, but will not include milling or
leaching  for the purposes of testing by a pilot plant or during an initial tune
up  period  of a plant. Commercial Production on the Property or any part hereof
will  be  deemed, for all purposes of this Agreement, to have commenced when, if
there  is  a concentrator or other mill ("Concentrator") on the Property, or any
part  thereof,  such  Concentrator has for the first time operated at 60% of its
rated  concentrating  capacity for 30 out of 40 consecutive days, or if there is
no such Concentrator, Ore from the Property or any part thereof has been shipped
there  from on a reasonably regular basis for a 30 day period for the purpose of
earning revenues, but in any event Commercial Production on the Property will be
deemed  to  have  commenced  90  days  after Ore has first been shipped from the
Property  for  the  purpose  of  earning  revenues.

     1.2  GRANTEE. As used herein, the term "Grantee" shall mean a party to whom
PGL  has  granted  a  Net  Profits  Interest  in  accordance  with the Operating
Agreement,  and shall include all of Grantee's successors-in-interest, including
without limitation assignees, partners, joint venture partners, lessees and when
applicable mortgagees and affiliated companies having or claiming an interest in
the  Property  or  Projects  or  the  Operating  Agreement.

     1.3  GRANTOR.  As  used herein, the term "Grantor" shall mean PGL and shall
include  all  of Grantor's successors-in-interest, including without limitation,
assignees,  partners,  joint  venture  partners,  lessees  and  when  applicable
mortgagees  and  affiliated  companies  having  or  claiming  an interest in the
Property  or  the  Operating  Agreement.

<PAGE>

     1.4  NET  PROFIT.  "Net  Profit" or "Net Profit Interest" or "NPI" shall be
calculated  by  deducting from the Gross Revenue (as defined below) realized (or
deemed  to  be  realized),  such costs and expenses attributable to Exploration,
Development,  Mining, the marketing of Products and other Operations as would be
deductible  under  generally  accepted  accounting  principles  and  practices
consistently  applied,  including  without  limitation:

(a)  All  costs  and  expenses  of  replacing, expanding, modifying, altering or
     changing  from  time  to  time the Mining facilities. Costs and expenses of
     improvements  (such  as haulage ways or mill facilities) that are also used
     in  connection  with workings other than the Properties shall be charged to
     the Properties only in the proportion that their use in connection with the
     Properties  bears  to  their  total  use;

(b)  Ad  valorem  real  property  and unsecured personal property taxes, and all
     taxes,  other  than  income  taxes, applicable to Mining of the Properties,
     including without limitation all state mining taxes, sales taxes, severance
     taxes,  license  fees  and  governmental  levies  of  a  similar  nature;

(c)  Allowance  for  overhead  in  accordance  with PARAGRAPH 2.13 OF EXHIBIT B;
                                                    ----------------------------
(d)  All  expenses  incurred  relative  to  the  sale  of Products, including an
     allowance  for  commissions  at rates which are normal and customary in the
     industry;

(e)  All  amounts  payable to the remaining Member during Mining pursuant to any
     applicable  operating  or  similar agreement in force with respect thereto;

(f)  The actual cost of investment under the Agreement but prior to beginning of
     Mining,  which  shall  include  all  expenditures  for  Exploration  and
     Development  of  the Properties incurred by the non-withdrawing Member both
     prior  and  subsequent  to  the withdrawing Member acquiring a Net Proceeds
     interest;

(g)  Interest  on  monies borrowed or advanced for costs and expenses, but in no
     event  in  excess  of  the  maximum  permitted  by  law;

(h)  An  allowance  for  reasonable  working  capital  and  inventory;

(i)  Costs of funding the Environmental Compliance Fund as provided in PARAGRAPH
                                                                       ---------
     2.14  OF  EXHIBIT  B;
     ---------------------

(j)  Actual  costs  of  Operations;  and

<PAGE>

     (k)  Rental,  royalty,  production,  and  purchase  payments.

     For  purposes  hereof,  the  term "Gross Revenue" shall mean the sum of (i)
gross  receipts  from sale of Products, less any charges for sampling, assaying,
or  penalties; (ii) gross receipts from the sale or other disposition of Assets;
(iii) insurance proceeds; (iv) compensation for expropriation of Assets; and (v)
judgment  proceeds.  Gross  receipts for sale of Products shall be determined by
multiplying  spot  prices  for  Products  as  quoted  by  the Chicago Mercantile
Exchange  on  the  date  of  a  sale  of  Products.

     It  is  intended  that the remaining Member shall recoup from Gross Revenue
all  of  its  on-going  contributions  for  Exploration,  Development,  Mining,
Expansion  and  Modification  and marketing Products before any Net Proceeds are
distributed to any person holding a Net Proceeds interest. No deduction shall be
made  for  income taxes, depreciation, amortization or depletion. If in any year
after  the  beginning  of  Mining  of  the Properties an operating loss relative
thereto  is  incurred, the amount thereof shall be considered as and be included
with  outstanding  costs  and  expenses  and  carried forward in determining Net
Proceeds  for  subsequent  periods.  If  Products are processed by the remaining
Member,  or are sold to an Affiliate of the remaining Member, then, for purposes
of  calculating Net Proceeds, such Products shall be deemed conclusively to have
been  sold  at  a price equal to fair market value to arm's length purchaser FOB
the  concentrator for the Properties, and Net Proceeds relative thereto shall be
calculated  without  reference to any profits or losses attributable to smelting
or  refining.

     1.5 ORE. As used herein, the term "Ore" shall mean any materials containing
a  mineral  or  minerals  of  commercial  economic  value.

     1.6  PRODUCTION. As used herein, the term "Production" shall mean Ore mined
from  the  Property  and any concentrates or other materials or products derived
there  from  provided,  however,  that  if  any  such Ore, concentrates or other
materials  or  products  are  further treated as part of the mining operation in
respect  of  the Property, such Ore, concentrates or other materials or products
shall  not  be considered to be "Product" until after they have been so treated.

                               ARTICLE II     TERM

     The  term  of  this  Deed  shall  be  perpetual, it being the intent of the
Parties  hereto  that  the  GBR constitutes a covenant running with the land and
affecting  each  of  the  Properties and all successions thereof whether created
privately  or  through  governmental  action.  In the event a court of competent
jurisdiction  determines  that  the  term of this Deed violates the Rule Against
Perpetuities,  the term of this Deed shall automatically be revised and reformed
to  coincide  with  the maximum term permitted by the Rule Against Perpetuities,
and  this  Deed shall not be terminated solely as a result of a violation of the
Rule  Against  Perpetuities.

<PAGE>

                       ARTICLE III     PRODUCTION ROYALTY

     3.1     CALCULATION  OF  NPI.  Grantor  shall  pay  to  Grantee a perpetual
Production  Royalty  in the amount of either fifteen percent (15%) of Net Profit
or  a  Production  Royalty  of ten percent (10%) of Net Profits according to the
terms  and  conditions  of  PARAGRAPH  1.9  OF  EXHIBITI, from the sale or other
                            ----------------------------
disposition  of all locatable minerals produced from the Property, determined in
accordance  with  the provisions set forth in this Paragraph and, if applicable,
PARAGRAPH  6  and  PARAGRAPH  7  below.
 -----------       ------------

     3.2  INSURANCE  PROCEEDS.  In the event Grantor receives insurance proceeds
for  loss  of production due to a casualty event which, without insurance, would
adversely  affect  the  amount  of  the Production Royalty, Grantor shall pay to
Grantee  the  Production Royalty percentage of any such insurance proceeds which
are  received  by  Grantor  for  such  loss  of  production.

     3.3  TIME  AND  MANNER  OF  PAYMENT  OF NPI. Payments of Production Royalty
Proceeds  shall  commence  in  the  calendar year following the calendar year in
which  Net  Profits  are  first realized, and shall be made forty-five (45) days
following  the  end  of  each  calendar  quarter  during  which  Net Profits are
realized,  and  shall  be subject to adjustment, if required, at the end of each
calendar year. The Grantee will provide written instructions given to the Payor.
Once  the  Payor  has  received instructions from the Grantee, such instructions
shall  remain in effect until the Payor has received different instructions from
Grantee.  Grantor  acknowledges  its  primary  obligation  to pay the Production
Royalty,  that  no  undertaking  by  the  Payor  shall  relieve  Grantor of that
obligation, and agrees to indemnify, protect and defend Grantee from and against
any  loss,  cost  (including attorney's fees incurred) or liability arising from
the  performance  or  failure  of  performance  by  Payor hereunder or under any
contractual  or  other  arrangements  entered  into  by  Grantor  with the Payor
pursuant  to  or for the purposes of complying with this Paragraph. Grantee may,
from  time  to  time  in  its  discretion, change the place or account number by
giving  written  notice  thereof  to Grantor and the Payor; such notice shall be
effective  upon  actual  receipt by Grantor or the Payor, or upon the fourth day
after deposit of such notice in the mail, first class postage prepaid, addressed
to  Grantor  or  the  Payor,  whichever  occurs  first.

     3.4  PAYMENT  ACCOUNTING; INTERIM SETTLEMENTS; LATE CHARGES. All credits or
payments  of the Production Royalty shall be accompanied by a detailed statement
explaining  the  manner  in  which  the payment was calculated together with any
available  settlement  sheets  from  the Payor. In no event shall payment of the
Production Royalty be made later than thirty (30) days after the delivery to the
Payor,  or  use  by  the Grantor, of the Gold, Precious Metal Products, or Other
Minerals.  Such  payments  and  statements  shall be deemed conclusively correct
unless  Grantee  objects  to  them  in writing within eighteen (18) months after
receipt  thereof.  On  those  occasions  when  all  necessary information is not
available  to  the Payor within the thirty (30) day period, the Payor shall make
an  interim  settlement  of  the Production Royalty for such payment of not less
than ninety percent (90%) of the anticipated final settlement Production Royalty
as  determined  by  the  assays  and quantities of the Precious Metals, Precious
Metal  Products,  or  Other Minerals received by the Payor with respect to which
such  interim  settlement  is  being  made.  Final  settlement of the Production
Royalty  shall  be  promptly  made  upon receipt by the Payor of all information
necessary  or  appropriate  to  make  final settlement for such shipment. In the
event  payment  of  the  Production  Royalty is not made with the time set forth
above,  Grantee  may  give  the  Grantor  notice in writing of such default, and
unless  within  five  (5)  days  of  receipt  of  such notice Grantee shall have
received such Production Royalty payment, then Grantor shall pay interest on the
delinquent  payment  at  an annual rate equal to ten (10) percentage points over
the  Prime  Rate,  but in no event shall the rate of interest exceed the maximum
permitted by Law, which shall accrue from the day the delinquent payment was due
to  the date of payment of the Production Royalty and accrued interest. Attorney
fees  resulting  from  the  collection  of the delinquent payment by the Grantee
shall  be  paid  by  Grantor,  without  exception.

<PAGE>

     3.5  HEDGING  TRANSACTIONS; FUTURES, OPTIONS AND OTHER TRADING. All profits
and  losses  resulting  from  Grantor engaging in any commodity futures trading,
option  trading,  or  metal  trading,  or any combination thereof, and any other
hedging  transactions  (collectively  "hedging  transactions")  are specifically
excluded  from  the  Production  Royalty calculations pursuant to this Deed. All
hedging  transactions by Grantor and all profits or losses associated therewith,
if  any,  shall  be  solely  for  Grantor's  account.

     3.6  COMMINGLING.  Before  any Ore produced from the Property is commingled
with  Ore  from  other  properties,  the Ore produced from the Property shall be
measured and sampled in accordance with sound mining and metallurgical practices
for  metal,  commercial minerals and other appropriate content. Detailed records
shall be kept by Grantor showing measures, assays of metal, commercial minerals,
and other appropriate content and penalty substances, and gross metal content of
the  Ore.  From  this information, Grantor shall determine the amount of NSR due
and  payable  to Grantee from Ore produced from the Property commingled with Ore
from  other  properties.  Following  the  expiration of the period for objection
described  above  in  PARAGRAPH  3.4 above, and absent timely objection, if any,
made  by  Grantee,  Grantor may dispose of the materials and data required to be
kept  and  produced  by  this  Paragraph.

           ARTICLE IV     BOOKS; RECORDS; INSPECTIONS; CONFIDENTIALITY

     4.1     BOOKS.  Grantor  shall  keep true and accurate books and records of
all  of  its  operations  and  activities on the Properties and under this Deed.
Such  books  and  records  shall be kept on the accrual basis in accordance with
generally  accepted  accounting  principles  consistently  applied.  Not  more
frequently  than  annually and within the time provided in PARAGRAPH 3.4 of this
Deed,  Grantee  may,  perform  an audit or other examination of all of Grantor's
books and records kept as required by this Deed.  The audit will be at Grantee's
sole  expense  unless a discrepancy of plus or minus 10% is discovered, then the
cost  of  the  audit  shall be reimbursed by Grantor.  All financial information
shall  conclusively  be  deemed correct for purposes of this Deed unless Grantee
has  given timely notice that it desires to audit or examine Grantor's books and
records  in  the  manner  and  within the time provided in PARAGRAPH 3.4 of this
Deed.  Grantee  shall  promptly  commence  any  such audits and shall diligently
prosecute  the  same  to  conclusion.

<PAGE>

     4.2  REPORTS.  Not later than February 1 following the end of each calendar
year,  Grantor shall provide Grantee with an annual report of all activities and
operations  conducted  upon or with respect to the Property during the preceding
calendar  year.  Such  annual  report  shall  include  estimates  of  proposed
expenditures  upon,  anticipated  production  from,  and estimated remaining ore
reserves  on  the  Property  for  the succeeding calendar year. Additionally and
within  30  days  of  the  end  of  each calendar quarter, Grantor shall provide
Grantee  access  to  all  data  and  information  generated  with respect to the
Property  during  the  calendar  quarter  just  ended.

     4.3  INSPECTIONS.  Grantee, or its authorized agents or representatives, on
not  less  than  two  (2) days notice to Grantor, may enter upon all surface and
subsurface  portions of the Property for the purpose of inspecting the Property,
all  improvements  thereto  and  operations  thereon,  as well as inspecting and
copying all records and data, including without limitation such records and data
which are maintained electronically, pertaining to all activities and operations
on  or with respect to the Property, improvement thereto and operations thereon.
Grantee,  or  its authorized agents or representatives, shall enter the Property
at  Grantee's own risk and expense and may not unreasonably hinder operations on
or pertaining to the Property. Grantee shall indemnify and hold Grantor harmless
from  any  damage,  claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees, employees, officers, directors, agents, or
representative  caused by Grantee's exercise of its rights under this Paragraph.

     4.4  INVESTOR  TOURS.  Upon  reasonable  notice  to  Grantor  and  not more
frequently  than  semi-annually,  Grantee  shall  have  the  right to conduct an
investors  tour  on  the  Property and facilities associated therewith; provided
that  such  tours shall not unreasonably interfere with Grantor's activities and
operations.  Such  investors' tours shall be at the sole risk of Grantee and its
invitees,  and  Grantee  shall  indemnify  and  hold  Grantor  harmless from any
liability,  damage, claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees,  employees, officers, directors, agents or
representatives caused by Grantee's exercise of its rights under this Paragraph.

     4.5  CONFIDENTIALITY.  During  the  term  of  this  Deed,  all  information
concerning this Agreement or any matters arising from this Deed shall be treated
as  confidential  by  Grantee and shall not be disclosed by Grantee to any other
party  without  the  previous written consent of Grantor, such consent not to be
unreasonably  withheld,  except:  (i)  to the extent that such disclosure may be
necessary  for  observance  of the requirements of securities commissions, stock
exchanges  or  other  legal  requirements, or (ii) for the accomplishment of the
purposes  of  this  Deed, or (iii) to any of Grantee's accounting, legal and tax
advisors, or (iv) to any third party to whom Grantee, in good faith, anticipates
selling  or  assigning  Grantee's  interest  hereunder,  provided  that  Grantee
requires  such third party to maintain the disclosed information confidential on
the same basis as herein provided. If Grantor does not give a definitive written
reply  to  any  request  for  permission  to disclose on the second business day
following  the  date  request  for  same  is  deemed  delivered, consent to such
disclosure  shall  be  deemed  to  have  been  given.

<PAGE>

  ARTICLE V COMPLIANCE WITH LAWS; RECLAMATION, ENVIRONMENTAL OBLIGATIONS, AND
                                  INDEMNITIES

     5.1     COMPLIANCE  WITH  LAWS.  Grantor shall at all times comply with all
applicable  present  or  future  federal,  provincial, and local laws, statutes,
rules,  regulations,  permits,  ordinances,  certificates,  licenses  and  other
regulatory  requirements,   policies   and  guidelines  relating   to  Grantor's
operations  and  activities  on  or  with  respect  to the Properties; provided,
however, Grantor shall have the right to contest any of the same if such contest
does  not  jeopardize  the  Properties or Grantee's rights thereto or under this
Deed.

     5.2 RECLAMATION, ENVIRONMENTAL OBLIGATIONS, AND INDEMNITIES. Grantor shall,
from  and  after  the  date this Deed takes effect, timely and fully perform all
reclamation  required  by  all governmental authorities pertaining or related to
Grantor's  operations  or  activities  on  or  with respect to the Properties or
required  under  this  Deed.  Grantor,  from  and after the date this Deed takes
effect,  covenants  and  agrees  not  to undertake, cause, suffer, or permit any
condition  or  activity  at,  on  or  in  the  vicinity  of the Properties which
constitutes a nuisance or which results in a violation of or liability under any
present  or  future  applicable provincial, federal or local environmental laws,
statutes,  rules,  regulations,  permits, ordinances, certificates, licensed and
other   regulatory   requirements,   policies,  and   guidelines   (collectively
"Environmental  Obligations").  From  and after the date this Deed takes effect,
and  in the event Grantor fails to comply with any Environmental Obligations, or
otherwise  breaches any Environmental Obligations, Grantor shall promptly remedy
and correct such failure to comply, satisfy such liability, and cure such breach
and  satisfy  all  obligations  in  connection  therewith. Grantor covenants and
agrees  to  indemnify  and  hold  Grantee harmless from any and all liabilities,
obligations,  claims  (including administrative claims and claims for injunctive
relief),  losses,  costs,  damages, expenses, attorney fees and causes of action
asserted against Grantee related to Grantor's failure to comply with and satisfy
Environmental  Obligations  or  other obligations under this Deed from and after
the date this Deed takes effect; provided, however, that this indemnification by
Grantor  shall not apply to environmental and reclamation conditions existing on
the  Properties  prior  to the date of this Deed takes effect. The covenants and
agreements of this PARAGRAPH 5.2 OF THIS EXHIBIT K shall survive the termination
of  the  Grantor's  rights  under  this  Deed  or  to  the  Properties.

                           ARTICLE VI     STOCKPILING

     The rights of Grantor to stockpile, store or place Ore, off of the Property
pursuant  to  any  of the provisions of this Deed shall not be exercisable until
Grantor has first paid Grantee the Production Royalty, provided however that the
Grantor  may  remove  reasonable  quantities  of  Ore  from the Property for the
purposes  of  bulk sampling and testing and there shall be no NSR payable to the
Grantee  with  respect  thereto  unless  revenues  are  derived  there  from.

<PAGE>

                      ARTICLE VII     TAILINGS AND RESIDUES

     All  tailings,  residues,  waste  rock,  spoiled  leach materials and other
materials  (collectively  "Materials")  resulting  from Grantor's operations and
activities  on  the  Property  shall  be the sole property of Grantor, but shall
remain  subject  to  the  Production  Royalty  should  the  same be processed or
reprocessed,  as  the case may be, in the future and result in the production of
Ore.  Notwithstanding  the foregoing, Grantor shall have the right to dispose of
Materials  from  the  Property  on or off the Property and to commingle the same
Material  from  other  properties.  In  the  event  Materials  are  processed or
reprocessed, as the case may be, the Production Royalty payable thereon shall be
determined  on  a pro rata basis as determined by using the best engineering and
technical  practices  then  available.

   ARTICLE VIII     TITLE MAINTENANCE AND TAXES;  ASSESSMENT WORK; ABANDONMENT;
                         CONVERSION AND EXCHANGE RIGHTS

     8.1     TITLE MAINTENANCE AND TAXES.  From the date this Deed takes effect,
Grantor  shall  maintain  title to the Properties, including without limitation,
paying  when  due  all  taxes on or with respect to the Properties and doing all
things  and  making all payments necessary or appropriate to maintain the right,
title  and  interest of Grantor and Grantee, respectively, in the Properties and
under  this  Deed.

     8.2 ASSESSMENT WORK. Grantor shall perform all required assessment work on,
pay all claim maintenance fees, and maintain title to the Property in accordance
with  applicable  federal  and state laws: provided, however, that Grantor shall
not  be  liable  for  the loss of title to any of the mining claims comprising a
portion  of  the  Property  as  a result of a determination that assessment work
performed  by  Grantor  in  good faith does not qualify as assessment work under
applicable  statutes.

     8.3  ABANDONMENT.  In  the  event  Grantor  intends  to  abandon any of the
unpatented  mining  claims  or  fee  land  comprising the Property ("Abandonment
Property"),  Grantor  shall  first  give  notice of such intention to Grantee at
least  90 days in advance of the proposed date of abandonment. If not later than
10  days  before  the proposed date of abandonment Grantor receives from Grantee
written  notice  that Grantee desires Grantor to convey the abandonment Property
to  Grantee,  Grantor  shall,  without  additional   consideration,  convey  the
Abandonment  Property in good standing by quit claim, deed, without warranty, to
Grantee and shall thereafter have no further obligation to maintain the title to
the  Abandonment  Property;  provided, however, if Grantor reacquires any of the
ground  covered  by  the  Abandonment Property at any time within five (5) years
following abandonment, the production of Precious Metals and Other Minerals from
such  ground  shall  be  subject  to  this  Deed.

<PAGE>

     8.4  CONVERSION  AND EXCHANGE RIGHTS. The terms and provisions of this Deed
shall  apply  to  a conversion of any of the unpatented mining claims comprising
all  or  a portion of the Properties to a different form of mineral, surface and
associated rights pursuant to (i) patent, (ii) exchange or (iii) another form of
claim  or  right  pursuant  to  amendment,  repeal  of, or other Act of Congress
affecting  the Mining Act of 1872 (30 U.S.C. Sec.Sec. 21 et seq.). Grantor shall
have  the  right  to  convert any of the unpatented mining claims to a different
form  of  mineral,  surface  and  associated rights pursuant to (i) patent, (ii)
exchange  or  (iii) another form of claim or right pursuant to amendment, repeal
of,  or  other  Act  of  Congress affecting the Mining Act of 1872, provided the
rights  granted  to  Grantee  with respect to the Properties under this Deed are
affected  as  little  as  possible  given  the  constraints   of  any  such  new
legislation.  Any  action taken by Grantor under this Paragraph shall not affect
Grantor's  obligations with respect to those portions of the Property subject to
such  actions,  given  the  law  applicable  to  patents  and  exchanges  or the
constraints  of any such new legislation. Any action taken by Grantor under this
Paragraph  shall not affect Grantor's obligations with respect to those portions
of the Property subject to such actions, given the law applicable to patents and
exchanges  or the constraints of any such new legislation. New deeds, reflecting
Grantees  continued  interest,  must be recorded within 30 days of availability.

                            ARTICLE IX     INSURANCE

     Grantor  shall  purchase  or otherwise arrange at its own expense and shall
keep  in  force at all times, directly or through the services of an independent
contractor,  insurance,  including  but  not  limited  to,  the  following:

     9.1  WORKMAN'S  COMPENSATION INSURANCE. Workman's compensation insurance or
the  like  covering  all  person's  engaged  in the performance of activities or
operations  as is required or appropriate under law or local governmental bodies
or  agencies.

     9.2  GENERAL  LIABILITY.  Comprehensive  general public liability insurance
against  claims  for bodily injury or death or property damage arising out of or
resulting  from  Grantor's  activities  or  operations on or with respect to the
Properties,  in  such  amounts  as will adequately protect Grantor, Grantee, the
Royalty,  and  the  Properties  from any and all claims, liabilities and damages
which  may  arise  with respect to this Deed or the Properties. Grantee shall be
named  as  a  co-insured.

                        ARTICLE X     GENERAL PROVISIONS

     10.1     ARBITRATION.  Any dispute arising out of or related to any report,
payment,  calculation  or  audit  shall  be  resolved  solely by the arbitration
procedure  provided  in  ARTICLE  XV  of  the  Operating  Agreement.
                         -----------

     10.2  CONFLICT.  In  the event of a conflict between the provisions of this
Deed and the provisions of the Operating Agreement prior to the Exercise Date as
specified  in the Operating Agreement, the provisions of the Operating Agreement
shall  prevail.

<PAGE>

     10.3  ADDITIONAL DOCUMENTS. The Parties shall from time to time execute all
such further instruments and documents and do all such further actions as may be
necessary  to  effectuate  the  purposes  of  this  Deed.

     10.4  COVENANT  RUNNING  WITH  LAND;  BINDING EFFECT. All of the covenants,
conditions,  and terms of this Deed shall (i) be of benefit to the Parties, (ii)
run  as  a  covenant with the Property and the ground covered thereby, and (iii)
bind  and  inure  to  the  benefit  of  the  Parties.

     10.5  NO  PARTNERSHIP.  Nothing  in this Deed shall be construed to create,
expressly  or  by  implication,  a joint venture, mining partnership, commercial
partnership,  or  other  partnership  relationship  between  Parties.

     10.6  GOVERNING LAW. This Deed is to be governed by and construed under the
laws  of  the  State  of  Nevada.

     10.7  ATTORNEY  FEES. In the event a dispute between the Parties results in
litigation,  the  prevailing  Party in such litigation shall, in addition to any
other  relief  granted  by  the  court,  be  entitled  to a judgment against the
non-prevailing  party  for  reasonable  attorney  fees  and  costs  of  suit.

     10.8 NOTICES. SECTION 16.1 of the Operating Agreement provides for notices.
Either Party may change its address for the purpose of notices or communications
by  furnishing  notice  thereof to the other Party in the manner described under
SECTION  16.1  of  the  Operating  Agreement.
-------------

     10.9  TIME  OF  ESSENCE.  Time  is  of  essence  in  this  Deed.

     10.10  ENTIRE  AGREEMENT. This Deed and the Operating Agreement between the
Parties,  and  no  oral agreement, promise, statement or representation which is
not contained herein shall be binding on the Parties unless subsequently reduced
to  writing  and  signed  by  the  Parties.  The  provisions  of this Deed shall
supersede  all  previous  oral or written agreements between the Parties hereto.

<PAGE>

                                    EXHIBIT L

                                       TO

                       EXPLORATION, DEVELOPMENT AND MINING
                            LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                 By And Between

                                      BMGE

                                       And

                                      NGXS

                 EXHIBIT L     GROSS BULLION ROYALTY CALCULATION

                         ARTICLE I     MEANING OF TERMS.

     As  used  herein,  unless  otherwise  defined herein, the terms used herein
shall  have  the same meaning as given to them in the Operating Agreement of PGL
("Operating  Agreement")  dated  June  __,  2004 pursuant to which the Deed with
Reservation  of  Net  Smelter  Returns  Royalty was executed and delivered.  The
following  terms  shall  have  the  meanings  specified  below:

     1.1 COMMERCIAL PRODUCTION. As used herein, the term "Commercial Production"
shall  mean  the  milling,  or leaching, and sale of ores and concentrates which
result  from  Ore  extracted  from the Property, but will not include milling or
leaching  for the purposes of testing by a pilot plant or during an initial tune
up  period  of a plant. Commercial Production on the Property or any part hereof
will  be  deemed, for all purposes of this Agreement, to have commenced when, if
there  is  a concentrator or other mill ("Concentrator") on the Property, or any
part  thereof,  such  Concentrator has for the first time operated at 60% of its
rated  concentrating  capacity for 30 out of 40 consecutive days, or if there is
no such Concentrator, Ore from the Property or any part thereof has been shipped
there  from on a reasonably regular basis for a 30 day period for the purpose of
earning revenues, but in any event Commercial Production on the Property will be
deemed  to  have  commenced  90  days  after Ore has first been shipped from the
Property  for  the  purpose  of  earning  revenues.

     1.2  GRANTEE. As used herein, the term "Grantee" shall mean a party to whom
PGL  has  granted  a  Gross  Bullion  Royalty  Interest  in  accordance with the
Operating  Agreement  and shall include all of Grantee's successors-in-interest,
including  without  limitation  assignees,  partners,  joint  venture  partners,
lessees  and  when  applicable  mortgagees  and  affiliated  companies having or
claiming an interest in the Properties or Projects or the Participating Interest
of  the  Grantee.

     1.3  GRANTOR.  As  used herein, the term "Grantor" shall mean PGL under the
provisions  of  the  Operating  Agreement,  and  shall  include all of Grantor's
successors-in-interest, including without limitation, assignees, partners, joint
venture  partners,  lessees  and  when  applicable  mortgagees  and  affiliated
companies  having  or  claiming  an  interest  in  the  Properties  or Projects.

<PAGE>

     1.4 GROSS BULLION ROYALTY. As used herein, the term "Gross Bullion Royalty"
with  respect  to  the  Property:

(a)  For Precious Metals. "Gross Bullion Royalty" or "GBR", in the case of gold,
     silver, and platinum group metals ("Precious Metals"), means the gross spot
     price  of  the appropriate Precious Metal (London Bullion Market, Afternoon
     Fix,  for  gold;  New  York  Commodities  Exchange  for  all other Precious
     Metals),  on  the  day  the smelter, refiner, processor, purchaser or other
     recipient of such production, or an insurer as a result of casualty to such
     production  (collectively,  "Payor")  makes payment to or otherwise credits
     the  account  of  Grantor.

(b)  For  Other  Minerals.  "Gross Bullion Royalty" or "GBR", in the case of all
     metals,  minerals,  mineral  substances,  and   the  beneficiated  products
     thereof,  which are not or do not contain economically recoverable Precious
     Metals  ("Other  Minerals"),  means the gross spot price of the appropriate
     Other  Mineral  (New  York Commodities Exchange) on the day the Payor makes
     payment  to  or  otherwise  credits  the  account  of  Grantor.

     1.5     ORE.  As  used  herein,  the  term  "Ore"  shall mean any materials
containing  a  mineral  or  minerals  of  commercial  economic  value.

     1.6  PRODUCTION. As used herein, the term "Production" shall mean Ore mined
from  the  Property  and any concentrates or other materials or products derived
there  from  provided,  however,  that  if  any  such Ore, concentrates or other
materials  or  products  are  further treated as part of the mining operation in
respect  of  the Property, such Ore, concentrates or other materials or products
shall  not  be considered to be "Product" until after they have been so treated.

                               ARTICLE II     TERM

     The  term  of  this  Deed  shall  be  perpetual, it being the intent of the
Parties  hereto  that  the  GBR constitutes a covenant running with the land and
affecting  each  of  the  Properties and all successions thereof whether created
privately  or  through  governmental  action.  In the event a court of competent
jurisdiction  determines  that  the  term of this Deed violates the Rule Against
Perpetuities,  the term of this Deed shall automatically be revised and reformed
to  coincide  with  the maximum term permitted by the Rule Against Perpetuities,
and  this  Deed shall not be terminated solely as a result of a violation of the
Rule  Against  Perpetuities.

<PAGE>

                       ARTICLE III     PRODUCTION ROYALTY

     3.1     CALCULATION  OF  GBR.  Grantor  shall  pay  to  Grantee a perpetual
Production Royalty in the amount of either four percent (4%) of Gross Bullion or
a  royalty  of  2.5  percent  (2.5%) of Gross Bullion according to the terms and
conditions  of  PARAGRAPH 1.9 OF EXHIBITI, from the sale or other disposition of
                -------------------------
all locatable minerals produced from the Property, determined in accordance with
the  provisions  set forth in THIS PARAGRAPH and, if applicable, PARAGRAPH 6 AND
                                                                 -----------
PARAGRAPH  7  OF  THIS  EXHIBIT  L.
 -----------

     3.2  INSURANCE  PROCEEDS.  In the event Grantor receives insurance proceeds
for  loss  of production due to a casualty event which, without insurance, would
adversely  affect  the  amount  of  the Production Royalty, Grantor shall pay to
Grantee  the  Production Royalty percentage of any such insurance proceeds which
are  received  by  Grantor  for  such  loss  of  production.

     3.3  TIME  AND MANNER; IN-KIND OR CASH PAYMENT. At a time of making payment
to  or  otherwise crediting the account of Grantor (but within the time provided
in  PARAGRAPH  3.4  below), the smelter, refiner, processor, purchaser, or other
user  ("Payor")  of  the  Precious  Metals,  Precious  Metal  Products, or Other
Minerals  shall  contemporaneously pay the Production Royalty in accordance with
written  instructions  given  to the Payor by Grantee as provided in (A) and (B)
below.  Once  the  Payor  has  received  instructions  from  the  Grantee,  such
instructions  shall  remain  in  effect  until  the Payor has received different
instructions  from  Grantee.  Grantor acknowledges its primary obligation to pay
the  Production  Royalty, that no undertaking by the Payor shall relieve Grantor
of that obligation, and agrees to indemnify, protect and defend Grantee from and
against any loss, cost (including attorney's fees incurred) or liability arising
from  the  performance or failure of performance by Payor hereunder or under any
contractual  or  other  arrangements  entered  into  by  Grantor  with the Payor
pursuant  to  or  for the purposes of complying with this PARAGRAPH 3.3. Grantee
may,  from  time  to  time in its discretion, change the place or account number
listed  in (A) and (B) below by giving written notice thereof to Grantor and the
Payor;  such  notice  shall  be  effective upon actual receipt by Grantor or the
Payor,  or  upon  the fourth day after deposit of such notice in the mail, first
class  postage  prepaid,  addressed  to  Grantor  or the Payor, whichever occurs
first.

(a)  Precious  Metals.  The  Payor  shall  pay  the  Production Royalty for each
     shipment  of  Precious  Metals either (i) to an account maintained with the
     Payor  as  directed  by  Grantee,  or  (ii) by delivery of a check or draft
     payable  to  Grantee's  account  with a bank to be designated in writing by
     Grantee,  or  (iii)  by  delivery  of a check or draft payable to Grantee's
     account  with  a  bank to be designated in writing by Grantee. In the event
     Grantee  instructs  the Payor to deliver the Production Royalty in the form
     of gold bullion, the Production Royalty payable on silver or platinum group
     metals shall be converted to the gold equivalent of such silver or platinum
     group  metals  by application of the provisions of PARAGRAPH 1.4(A) OF THIS
                                                        ----------------
     EXHIBIT  L.

<PAGE>

(b)  Other  Minerals.  The  Payor  shall  pay  the  Production  Royalty for each
     shipment  of  Other  Minerals  by  delivery  of a check or draft payable to
     Grantee's  account  with  a  bank  to  be designated in writing by Grantee.

     3.4     PAYMENT  ACCOUNTING; INTERIM SETTLEMENTS; LATE CHARGES. All credits
or  payments  of  the  Production  Royalty  shall  be  accompanied by a detailed
statement  explaining  the  manner  in which the payment was calculated together
with  any  available settlement sheets from the Payor. In no event shall payment
of the Production Royalty be made later than thirty (30) days after the delivery
to  the  Payor,  or use by the Grantor, of the Gold, Precious Metal Products, or
Other  Minerals.  Such  payments  and  statements  shall  be deemed conclusively
correct  unless  Grantee  objects to them in writing within eighteen (18) months
after receipt thereof.  On those occasions when all necessary information is not
available  to  the Payor within the thirty (30) day period, the Payor shall make
an  interim  settlement  of  the Production Royalty for such payment of not less
than ninety percent (90%) of the anticipated final settlement Production Royalty
as  determined  by  the  assays  and quantities of the Precious Metals, Precious
Metal  Products,  or  Other Minerals received by the Payor with respect to which
such  interim  settlement  is  being  made.  Final  settlement of the Production
Royalty  shall  be  promptly  made  upon receipt by the Payor of all information
necessary  or  appropriate  to  make final settlement for such shipment.  In the
event  payment  of  the  Production  Royalty is not made with the time set forth
above,  Grantee  may  give  the  Grantor  notice in writing of such default, and
unless  within  five  (5)  days  of  receipt  of  such notice Grantee shall have
received such Production Royalty payment, then Grantor shall pay interest on the
delinquent  payment  at  an annual rate equal to ten (10) percentage points over
the  Prime  Rate,  but in no event shall the rate of interest exceed the maximum
permitted by Law, which shall accrue from the day the delinquent payment was due
to the date of payment of the Production Royalty and accrued interest.  Attorney
fees  resulting  from  the  collection  of the delinquent payment by the Grantee
shall  be  paid  by  Grantor,  without  exception.

     3.5  HEDGING  TRANSACTIONS; FUTURES, OPTIONS AND OTHER TRADING. All profits
and  losses  resulting  from  Grantor engaging in any commodity futures trading,
option  trading,  or  metal  trading,  or any combination thereof, and any other
hedging  transactions  (collectively  "hedging  transactions")  are specifically
excluded  from  the  Production  Royalty calculations pursuant to this Deed. All
hedging  transactions by Grantor and all profits or losses associated therewith,
if  any,  shall  be  solely  for  Grantor's  account.

     3.6  COMMINGLING.  Before  any Ore produced from the Property is commingled
with  Ore  from  other  properties,  the Ore produced from the Property shall be
measured and sampled in accordance with sound mining and metallurgical practices
for  metal,  commercial minerals and other appropriate content. Detailed records
shall be kept by Grantor showing measures, assays of metal, commercial minerals,
and other appropriate content and penalty substances, and gross metal content of
the Ore. From this information, Grantor shall determine the amount of Production
Royalty  due  and  payable  to  Grantee  from  Ore  produced  from  the Property
commingled  with  Ore  from  other  properties.  Following the expiration of the
period  for  objection described above in PARAGRAPH 3.4 above, and absent timely
objection,  if  any,  made  by Grantee, Grantor may dispose of the materials and
data  required  to  be  kept  and  produced  by  this  Paragraph.

<PAGE>

           ARTICLE IV     BOOKS; RECORDS; INSPECTIONS; CONFIDENTIALITY

     4.1 BOOKS. Grantor shall keep true and accurate books and records of all of
its  operations and activities on the Properties and under this Deed. Such books
and  records  shall  be  kept  on the accrual basis in accordance with generally
accepted  accounting  principles  consistently applied. Not more frequently than
annually  and  within  the  time provided in PARAGRAPH 3.4 of this Deed, Grantee
may, perform an audit or other examination of all of Grantor's books and records
kept  as  required  by  this  Deed.  The audit will be at Grantee's sole expense
unless  a  discrepancy  of plus or minus 10% is discovered, then the cost of the
audit  shall  be  reimbursed  by  Grantor.  All  financial   information   shall
conclusively  be  deemed  correct  for  purposes of this Deed unless Grantee has
given  timely  notice  that  it  desires to audit or examine Grantor's books and
records  in  the  manner  and  within the time provided in PARAGRAPH 3.4 of this
Deed.  Grantee  shall  promptly  commence  any  such audits and shall diligently
prosecute  the  same  to  conclusion.

     4.2  REPORTS.  Not later than February 1 following the end of each calendar
year,  Grantor shall provide Grantee with an annual report of all activities and
operations  conducted  upon or with respect to the Property during the preceding
calendar  year.  Such  annual  report  shall  include  estimates  of  proposed
expenditures  upon,  anticipated  production  from,  and estimated remaining ore
reserves  on  the  Property  for  the succeeding calendar year. Additionally and
within  30  days  of  the  end  of  each calendar quarter, Grantor shall provide
Grantee  access  to  all  data  and  information  generated  with respect to the
Property  during  the  calendar  quarter  just  ended.

     4.3  INSPECTIONS.  Grantee, or its authorized agents or representatives, on
not  less  than  two  (2) days notice to Grantor, may enter upon all surface and
subsurface  portions of the Property for the purpose of inspecting the Property,
all  improvements  thereto  and  operations  thereon,  as well as inspecting and
copying all records and data, including without limitation such records and data
which are maintained electronically, pertaining to all activities and operations
on  or with respect to the Property, improvement thereto and operations thereon.
Grantee,  or  its authorized agents or representatives, shall enter the Property
at  Grantee's own risk and expense and may not unreasonably hinder operations on
or pertaining to the Property. Grantee shall indemnify and hold Grantor harmless
from  any  damage,  claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees, employees, officers, directors, agents, or
representative  caused by Grantee's exercise of its rights under this Paragraph.

     4.4  INVESTOR  TOURS.  Upon  reasonable  notice  to  Grantor  and  not more
frequently  than  semi-annually,  Grantee  shall  have  the  right to conduct an
investors  tour  on  the  Property and facilities associated therewith; provided
that  such  tours shall not unreasonably interfere with Grantor's activities and
operations.  Such  investors' tours shall be at the sole risk of Grantee and its
invitees,  and  Grantee  shall  indemnify  and  hold  Grantor  harmless from any
liability,  damage, claim or demand by reason of injury to Grantee or Grantor or
any  of  their  respective  invitees,  employees, officers, directors, agents or
representatives caused by Grantee's exercise of its rights under this Paragraph.

     4.5  CONFIDENTIALITY.  During  the  term  of  this  Deed,  all  information
concerning this Agreement or any matters arising from this Deed shall be treated
as  confidential  by  Grantee and shall not be disclosed by Grantee to any other
party  without  the  previous written consent of Grantor, such consent not to be
unreasonably  withheld,  except:  (i)  to the extent that such disclosure may be
necessary  for  observance  of the requirements of securities commissions, stock
exchanges  or  other  legal  requirements, or (ii) for the accomplishment of the
purposes  of  this  Deed, or (iii) to any of Grantee's accounting, legal and tax
advisors, or (iv) to any third party to whom Grantee, in good faith, anticipates
selling  or  assigning  Grantee's  interest  hereunder,  provided  that  Grantee
requires  such third party to maintain the disclosed information confidential on
the same basis as herein provided. If Grantor does not give a definitive written
reply  to  any  request  for  permission  to disclose on the second business day
following  the  date  request  for  same  is  deemed  delivered, consent to such
disclosure  shall  be  deemed  to  have  been  given.

  ARTICLE V    COMPLIANCE WITH LAWS; RECLAMATION, ENVIRONMENTAL OBLIGATIONS, AND
                                   INDEMNITIES

     5.1  COMPLIANCE  WITH  LAWS.  Grantor  shall  at  all times comply with all
applicable  present  or  future  federal,  provincial, and local laws, statutes,
rules,  regulations,  permits,  ordinances,  certificates,  licenses  and  other
regulatory  requirements,   policies   and  guidelines  relating   to  Grantor's
operations  and  activities  on  or  with  respect  to the Properties; provided,
however, Grantor shall have the right to contest any of the same if such contest
does  not  jeopardize  the  Properties or Grantee's rights thereto or under this
Deed.

     5.2 RECLAMATION, ENVIRONMENTAL OBLIGATIONS, AND INDEMNITIES. Grantor shall,
from  and  after  the  date this Deed takes effect, timely and fully perform all
reclamation  required  by  all governmental authorities pertaining or related to
Grantor's  operations  or  activities  on  or  with respect to the Properties or
required  under  this  Deed.  Grantor,  from  and after the date this Deed takes
effect,  covenants  and  agrees  not  to undertake, cause, suffer, or permit any
condition  or  activity  at,  on  or  in  the  vicinity  of the Properties which
constitutes a nuisance or which results in a violation of or liability under any
present  or  future  applicable provincial, federal or local environmental laws,
statutes,  rules,  regulations,  permits, ordinances, certificates, licensed and
other   regulatory   requirements,   policies,   and   guidelines  (collectively
"Environmental  Obligations").  From  and after the date this Deed takes effect,
and  in the event Grantor fails to comply with any Environmental Obligations, or
otherwise  breaches any Environmental Obligations, Grantor shall promptly remedy
and correct such failure to comply, satisfy such liability, and cure such breach
and  satisfy  all  obligations  in  connection  therewith. Grantor covenants and
agrees  to  indemnify  and  hold  Grantee harmless from any and all liabilities,
obligations,  claims  (including administrative claims and claims for injunctive
relief),  losses,  costs,  damages, expenses, attorney fees and causes of action
asserted against Grantee related to Grantor's failure to comply with and satisfy
Environmental  Obligations  or  other obligations under this Deed from and after
the date this Deed takes effect; provided, however, that this indemnification by
Grantor  shall not apply to environmental and reclamation conditions existing on
the  Properties  prior  to the date of this Deed takes effect. The covenants and
agreements of this PARAGRAPH 5.2 OF THIS EXHIBIT L shall survive the termination
of  the  Grantor's  rights  under  this  Deed  or  to  the  Properties.

<PAGE>

                           ARTICLE VI     STOCKPILING

     The rights of Grantor to stockpile, store or place Ore, off of the Property
pursuant  to  any  of the provisions of this Deed shall not be exercisable until
Grantor has first paid Grantee the Production Royalty, provided however that the
Grantor  may  remove  reasonable  quantities  of  Ore  from the Property for the
purposes  of  bulk sampling and testing and there shall be no NSR payable to the
Grantee  with  respect  thereto  unless  revenues  are  derived  there  from.

                      ARTICLE VII     TAILINGS AND RESIDUES

     All  tailings,  residues,  waste  rock,  spoiled  leach materials and other
materials  (collectively  "Materials")  resulting  from Grantor's operations and
activities  on  the  Property  shall  be the sole property of Grantor, but shall
remain  subject  to  the  Production  Royalty  should  the  same be processed or
reprocessed,  as  the case may be, in the future and result in the production of
Ore.  Notwithstanding  the foregoing, Grantor shall have the right to dispose of
Materials  from  the  Property  on or off the Property and to commingle the same
Material  from  other  properties.  In  the  event  Materials  are  processed or
reprocessed, as the case may be, the Production Royalty payable thereon shall be
determined  on  a pro rata basis as determined by using the best engineering and
technical  practices  then  available.

   ARTICLE VIII     TITLE MAINTENANCE AND TAXES;  ASSESSMENT WORK; ABANDONMENT;
                         CONVERSION AND EXCHANGE RIGHTS

     8.1     TITLE MAINTENANCE AND TAXES.  From the date this Deed takes effect,
Grantor  shall  maintain  title to the Properties, including without limitation,
paying  when  due  all  taxes on or with respect to the Properties and doing all
things  and  making all payments necessary or appropriate to maintain the right,
title  and  interest of Grantor and Grantee, respectively, in the Properties and
under  this  Deed.

     8.2 ASSESSMENT WORK. Grantor shall perform all required assessment work on,
pay all claim maintenance fees, and maintain title to the Property in accordance
with  applicable  federal  and state laws: provided, however, that Grantor shall
not  be  liable  for  the loss of title to any of the mining claims comprising a
portion  of  the  Property  as  a result of a determination that assessment work
performed  by  Grantor  in  good faith does not qualify as assessment work under
applicable  statutes.

<PAGE>

     8.3  ABANDONMENT.  In  the  event  Grantor  intends  to  abandon any of the
unpatented  mining  claims  or  fee  land  comprising the Property ("Abandonment
Property"),  Grantor  shall  first  give  notice of such intention to Grantee at
least  90 days in advance of the proposed date of abandonment. If not later than
10  days  before  the proposed date of abandonment Grantor receives from Grantee
written  notice  that Grantee desires Grantor to convey the abandonment Property
to  Grantee,  Grantor  shall,  without   additional  consideration,  convey  the
Abandonment  Property in good standing by quit claim, deed, without warranty, to
Grantee and shall thereafter have no further obligation to maintain the title to
the  Abandonment  Property;  provided, however, if Grantor reacquires any of the
ground  covered  by  the  Abandonment Property at any time within five (5) years
following abandonment, the production of Precious Metals and Other Minerals from
such  ground  shall  be  subject  to  this  Deed.

     8.4  CONVERSION  AND EXCHANGE RIGHTS. The terms and provisions of this Deed
shall  apply  to  a conversion of any of the unpatented mining claims comprising
all  or  a portion of the Properties to a different form of mineral, surface and
associated rights pursuant to (i) patent, (ii) exchange or (iii) another form of
claim  or  right  pursuant  to  amendment,  repeal  of, or other Act of Congress
affecting  the Mining Act of 1872 (30 U.S.C. Sec.Sec. 21 et seq.). Grantor shall
have  the  right  to  convert any of the unpatented mining claims to a different
form  of  mineral,  surface  and  associated rights pursuant to (i) patent, (ii)
exchange  or  (iii) another form of claim or right pursuant to amendment, repeal
of,  or  other  Act  of  Congress affecting the Mining Act of 1872, provided the
rights  granted  to  Grantee  with respect to the Properties under this Deed are
affected  as  little  as  possible  given  the   constraints  of  any  such  new
legislation.  Any  action taken by Grantor under this Paragraph shall not affect
Grantor's  obligations with respect to those portions of the Property subject to
such  actions,  given  the  law  applicable  to  patents  and  exchanges  or the
constraints  of any such new legislation. Any action taken by Grantor under this
Paragraph  shall not affect Grantor's obligations with respect to those portions
of the Property subject to such actions, given the law applicable to patents and
exchanges  or the constraints of any such new legislation. New deeds, reflecting
Grantees  continued  interest,  must be recorded within 30 days of availability.

                            ARTICLE IX     INSURANCE

     Grantor  shall  purchase  or otherwise arrange at its own expense and shall
keep  in  force at all times, directly or through the services of an independent
contractor,  insurance,  including  but  not  limited  to,  the  following:

     9.1  WORKMAN'S  COMPENSATION INSURANCE. Workman's compensation insurance or
the  like  covering  all  person's  engaged  in the performance of activities or
operations  as is required or appropriate under law or local governmental bodies
or  agencies.

<PAGE>

     9.2  GENERAL  LIABILITY.  Comprehensive  general public liability insurance
against  claims  for bodily injury or death or property damage arising out of or
resulting  from  Grantor's  activities  or  operations on or with respect to the
Properties,  in  such  amounts  as will adequately protect Grantor, Grantee, the
Royalty,  and  the  Properties  from any and all claims, liabilities and damages
which  may  arise  with respect to this Deed or the Properties. Grantee shall be
named  as  a  co-insured.

                        ARTICLE X     GENERAL PROVISIONS

     10.1     ARBITRATION.  Any dispute arising out of or related to any report,
payment,  calculation  or  audit  shall  be  resolved  solely by the arbitration
procedure  provided  in  ARTICLE  XV  of  the  Operating  Agreement.
                         -----------

     10.2  CONFLICT.  In  the event of a conflict between the provisions of this
Deed and the provisions of the Operating Agreement prior to the Exercise Date as
specified  in the Operating Agreement, the provisions of the Operating Agreement
shall  prevail.

     10.3  ADDITIONAL DOCUMENTS. The Parties shall from time to time execute all
such further instruments and documents and do all such further actions as may be
necessary  to  effectuate  the  purposes  of  this  Deed.

     10.4  COVENANT  RUNNING  WITH  LAND;  BINDING EFFECT. All of the covenants,
conditions,  and terms of this Deed shall (i) be of benefit to the Parties, (ii)
run  as  a  covenant with the Property and the ground covered thereby, and (iii)
bind  and  inure  to  the  benefit  of  the  Parties.

     10.5  NO  PARTNERSHIP.  Nothing  in this Deed shall be construed to create,
expressly  or  by  implication,  a joint venture, mining partnership, commercial
partnership,  or  other  partnership  relationship  between  Parties.

     10.6  GOVERNING LAW. This Deed is to be governed by and construed under the
laws  of  the  State  of  Nevada.

     10.7  ATTORNEY  FEES. In the event a dispute between the Parties results in
litigation,  the  prevailing  Party in such litigation shall, in addition to any
other  relief  granted  by  the  court,  be  entitled  to a judgment against the
non-prevailing  party  for  reasonable  attorney  fees  and  costs  of  suit.

     10.8 NOTICES. SECTION 16.1 of the Operating Agreement provides for notices.
                   ------------
Either Party may change its address for the purpose of notices or communications
by  furnishing  notice  thereof to the other Party in the manner described under
SECTION  16.1  of  the  Operating  Agreement.
-------------

     10.9  TIME  OF  ESSENCE.  Time  is  of  essence  in  this  Deed.

     10.10  ENTIRE  AGREEMENT. This Deed and the Operating Agreement between the
Parties,  and  no  oral agreement, promise, statement or representation which is
not contained herein shall be binding on the Parties unless subsequently reduced
to  writing  and  signed  by  the  Parties.  The  provisions  of this Deed shall
supersede  all  previous  oral or written agreements between the Parties hereto.

<PAGE>

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