GARUDA CAPITAL CORP
AGREEMENT BETWEEN GARUDA GOLD, NEWHAVEN AND AQUARIAN DATED MAY 18, 2005
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10-2.htm
<DESCRIPTION>AGREEMENT BETWEEN GARUDA GOLD, NEWHAVEN AND AQUARIAN DATED MAY 18, 2005
<TEXT>
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   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - Garuda Capital Corp. - Exhibit 10.2</TITLE>


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<P align="center"> <U>EXHIBIT 10.2</U> </P>
<P align="center"> <B><U>LETTER OF INTENT</U></B></P>
<P>
This Letter of Intent is made the 18<SUP>th</SUP> day of May, 2005</P>
<P> BETWEEN: </P>
<p align="justify" style="margin-left:15%">GARUDA GOLD CORPORATION, a British
  Columbia corporation with its principal executive offices located at 502 &#8211;
  1978 Vine Street, Vancouver, British Columbia, Canada V6K 4S1 </p>
<p align="justify" style="margin-left:15%">(&#8220;Garuda&#8221;) </p>
<P align="right"> OF THE FIRST PART </P>
<P> AND: </P>
<p align="justify" style="margin-left:15%">NEWHAVEN RESOURCES LIMITED, a Ghanaian
  registered mining, exploration and services company, located at P.O. Box 9918
  (Airport), Accra, Ghana. </p>
<p align="justify" style="margin-left:15%">(&#8220;Newhaven&#8221;) </p>
<P align="right"> OF THE SECOND PART </P>
<P> AND: </P>
<p align="justify" style="margin-left:15%">AQUARIAN GOLD CORPORATION, a corporation
  incorporated in the U.S. with its principal executive offices located at 500-666
  Burrard Street, Vancouver, British Columbia, Canada. </p>
<p align="justify" style="margin-left:15%">(&#8220;Aquarian&#8221;) </p>
<P align="right"> OF THE THIRD PART</P>
<P> This letter of intent constitutes an agreement and is legally binding on all
  parties,</P>
<P>WHEREAS: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> 1.&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">On May 5, 2005, Newhaven entered into an agreement
        to mine a hard rock vein system with Robert Appiah &amp; Group in Ghana
        (the &#8220;Mining Rights&#8221;), who were on July 28, 2003 granted a
        gold and diamond licence by the Government of Ghana in an area in Prestia,
        Ghana as described in Schedule &#8220;A&#8221; attached hereto; </div></TD>
  </TR>
</TABLE>

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<P align="center"> - 2 - </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> 2.&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">Newhaven has or will acquire mining rights to the
        areas surrounding the area covered by the Mining Rights; </div></TD>
  </TR>
</TABLE>
<P align="justify"> AND WHEREAS Newhaven, now wishes to grant to Garuda or its
  planned subsidiary, a Ghanaian corporation, the exclusive right and option to
  acquire a 65% right and interest in and to the Mining Rights on the terms and
  conditions hereinafter set forth; </P>
<P align="justify"> NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration
  of the premises, the mutual covenants herein set forth and the sum of One Dollar
  of U.S. currency now paid by Garuda to Newhaven (the receipt whereof is hereby
  acknowledged) and the sum of One Dollar of U.S. currency now paid to by Garuda
  to Aquarian (the receipt whereof is hereby acknowledged), the Parties hereto
  do hereby mutually covenant and agree as follows: </P>
<P>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>
</P>
<P><FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following words, phrases and expressions shall have the following meanings:
  </FONT></P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (a)&nbsp; &nbsp; &nbsp; </TD>
    <TD colspan=2> <div align="justify">&#8220;Work Commitment&#8221; includes
        all direct or indirect expenses (net of government incentives and net
        of payments to Newhaven pursuant to Paragraph 2 hereof of or incidental
        to Mining Operations); </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (b)&nbsp; &nbsp; &nbsp; </TD>
    <TD colspan=2> <div align="justify">&#8220;Mineral Products&#8221; means the
        commercial end products derived from operating the Mining Rights as a
        mine; </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (c)&nbsp; &nbsp; &nbsp; </TD>
    <TD colspan=2> <div align="justify">&#8220;Mining Operations&#8221; includes:
      </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(i)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD> <div align="justify">every kind of work done on or with respect to the
        Mining Rights by or under the direction of Garuda during the Option Period
        or pursuant to an approved Work Program except expansion of the Mining
        Rights boundaries; </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%" valign=top nowrap> <div align="justify">(ii)&nbsp; &nbsp; &nbsp;
      </div></TD>
    <TD> <div align="justify">without limiting the generality of the foregoing,
        includes the work of assessment, geophysical, geochemical and geological
        surveys, studies and mapping, investigating, drilling, designing, examining
        equipping, improving, surveying, shaft sinking, raising, cross-cutting
        and drifting, searching for, digging, trucking, sampling, working and
        procuring minerals, ores and metals, in surveying and bringing any mineral
        claims to lease or patent, in doing all other work usually considered
        to be prospecting, exploration, development, a feasibility study, mining
        work, milling, concentration, bonification or ores and concentrates, as
        well as the separation and extraction of mineral products; and </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(iii)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD> <div align="justify">payments by Garuda to acquire the rights to potential
        hard rock claims surrounding the area covered by the Mining Rights. </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (d)&nbsp; &nbsp; &nbsp; </TD>
    <TD colspan=2> <div align="justify">&#8220;Option Period&#8221; means the
        period from the date hereof to the date at which Garuda has performed
        its obligations to acquire its 65% interest in the Mining </div></TD>
  </TR>
</TABLE>

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<P align="center"> - 3 - </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2> <div align="justify">Rights or the date the option expires
        as set out in Section 2 hereof, whichever shall be the lesser period;
      </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(e)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD colspan=2> <div align="justify">&#8220;Work Program&#8221; means, a program
        of work reasonably acceptable to both parties in respect of a particular
        Mining Rights, contained in a written document setting out in reasonable
        detail: </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%" valign=top nowrap> <div align="justify">(i)&nbsp; &nbsp; &nbsp;
      </div></TD>
    <TD> <div align="justify">an outline of the Mining Operations proposed to
        be undertaken and conducted on the Mining Rights, specifically stating
        the period of time during which the work contemplated by the proposed
        program is to be done and performed; and </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(ii)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD> <div align="justify">the estimated cost of such Mining Operations including
        a proposed budget providing for estimated monthly cash requirements in
        advance and giving reasonable details. </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2> <div align="justify">reasonably acceptable to both parties
        hereto. </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(f)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD colspan=2> <div align="justify">&#8220;Mining Rights&#8221; means the
        rights acquired by Newhaven pursuant to the mining agreement described
        in Schedule &#8220;A&#8221;. </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> <div align="justify">(g)&nbsp; &nbsp; &nbsp; </div></TD>
    <TD colspan=2> <div align="justify">&#8220;Property&#8221; means the area
        on which Newhaven has the right to mine, as set out in Schedule &#8220;A.
      </div></TD>
  </TR>
</TABLE>
<P> 2.<FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Option</U>
</P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Newhaven
  hereby grants to Garuda the sole exclusive right and option (the &#8220;Option&#8221;)
  to earn 65% of the Mining Rights exercisable as follows:</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> (a)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">on or before May 17, 2006 Garuda makes a Work Commitment
        of &#36;300,000 on the Mining Rights </div></TD>
  </TR>
</TABLE>
<P align="justify"> and following which Garuda shall be deemed to have exercised
  the Option (the &#8220;Exercise Date&#8221;) and shall be entitled to 65% of
  the Mining Rights.</P>
<P align="justify"> 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Mining Operations during and after Option</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>During
  the Option Period, Garuda, through its subsidiary, a Ghanaian company to be
  incorporated, shall conduct the Mining Operations in conjunction with Newhaven.
  Newhaven shall invoice Garuda in respect of its expenses of such Mining Operations
  from time to time and the prompt payment of such invoices when due shall constitute
  Expenditures by Garuda as contemplated under Section 2 hereof. After the expiration
  of the Option Period, each of the parties shall contribute to ongoing operations
  in their respective percentages. </P>
<P align="justify"> 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Assignment</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>During
  the Option Term, no party shall sell, transfer, assign, mortgage, pledge or
  otherwise encumber its interest in this Agreement or its right or interest in
  the Mining Rights </P>

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<P>
without the consent of the other parties, such consent to be not unreasonably withheld, provided that any party shall be permitted to assign this Agreement to an &#8220;affiliate&#8221;, as that term is defined in <I>The</I> <I>Company Act</I>
(Nevada). It will be a condition of any assignment under this Agreement that such assignee shall agree in writing to be bound by the terms of this Agreement applicable to the assignor.</P>
<P> 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Termination</U> </P>
<P> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
  Agreement shall forthwith terminate in circumstances where: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> (a)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">Garuda fails to make the payments for or carry out
        the expenditures required in Section 2 of this Agreement on or before
        the dates set out herein; or </div></TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (b)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">Garuda gives notice of termination to Newhaven,
        which it shall be at liberty to do at any time after the execution of
        this Agreement and the payment of the amount set forth in clause 4(b)
        hereof. </div></TD>
  </TR>
</TABLE>
<P> 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Representations, Warranties and Covenants of Newhaven</U> </P>
<P> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Newhaven
  represents, warrants and covenants to and with Garuda as follows: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> (a)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">Newhaven has full power and authority to carry on
        its business and to enter into this Agreement and any agreement or instrument
        referred to or contemplated by this Agreement; </div></TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (b)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">the Agreement constitutes a legal, valid and binding
        obligation of Newhaven; and </div></TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (c)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">upon request by Garuda, and at the sole cost of
        Garuda, Newhaven shall deliver or cause to be delivered to Garuda copies
        of all available maps and other documents and data in its possession respecting
        the Mining Rights. </div></TD>
  </TR>
</TABLE>
<P> 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Representations, Warranties and Covenants of Garuda</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Garuda
  represents, warrants and covenants to and with Newhaven that: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign=top nowrap>&nbsp;</TD>
    <TD width="5%" valign=top nowrap> (a)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">Garuda has full power and authority to carry on
        its business and to enter into this Agreement and any agreement or instrument
        referred to or contemplated by this Agreement; </div></TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top> (b)&nbsp; &nbsp; &nbsp; </TD>
    <TD> <div align="justify">this Agreement constitutes a legal, valid and binding
        obligation of Garuda. </div></TD>
  </TR>
</TABLE>

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<P> 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Aquarian Interest</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Upon
  Garuda exercising the Option and obtaining a 65% interest in the Mining Rights,
  Newhaven shall continue to have rights to 25% of the Mining Rights and Aquarian
  shall be granted the remaining 10% interest in the Mining Rights. Aquarian agrees
  that other than the rights and interests granted to Aquarian pursuant to this
  agreement, Aquarian has no other right or title in or to the Mining Rights and
  is not entitled to any other rights, fees or claims from either Garuda or Newhaven
  with respect to the Mining Rights. Aquarian represents that it is not entitled
  to and shall not claim any royalty or other payment in the nature of rent or
  royalty on any minerals, ores, metals or concentrates or any other such products
  removed from the Mining Rights other than pursuant to its 10% interest. </P>
<P align="justify"> 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Indemnity and Survival of Representations</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
  representations and warranties hereinbefore set out are conditions on which
  the parties have relied in entering into this Agreement and shall survive the
  acquisition of any interest in the Mining Rights by Garuda and each of the parties
  will indemnify and save the other harmless from all loss, damage, costs, actions
  and suits arising out of or in connection with any breach of any representation,
  warranty, covenant, agreement or condition made by them and contained in this
  Agreement. </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Newhaven
  agrees to indemnify and save harmless Garuda from any liability to which it
  may be subject arising from any Mining Operations carried out by Newhaven or
  at is direction on the Mining Rights. Garuda agrees to indemnify and save harmless
  Newhaven from any liability to which it may be subject arising from any Mining
  Operations carried out by Garuda or at its direction on the Mining Rights.</P>
<P align="justify"> 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Confidentiality</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
  parties hereto agree to hold in confidence all information obtained in confidence
  in respect of the Mining Rights or otherwise in connection with this Agreement
  other than in circumstances where a party has an obligation to disclose such
  information in accordance with applicable securities legislation, in which case
  such disclosure shall only be made after consultation with the other party.
</P>
<P align="justify"> 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Further Assurances and Long Form Agreement</U></P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
  of the parties agrees to negotiate in good faith to reach a long form agreement
  regarding the subject matter of this Agreement. If no long form agreement is
  reached, however, this letter of intent agreement shall govern the rights and
  obligations of and between the parties. Each of the parties to this Agreement
  shall from time to time and at all times do all such further acts and execute
  and deliver all further deeds and documents as shall be reasonably required
  in order fully to perform and carry out the terms of this Agreement. </P>
<P align="justify"> 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Enurement</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
  Agreement will enure to the benefit of and be binding upon the parties hereto
  and their respective successors and permitted assigns. </P>

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<A name="page_6"></A>

<P align="center"> - 6 - </P>
<P> 14.<FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Option
  Only</U> </P>
<P align="justify"> <FONT style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
  is an option only and except as herein specifically provided otherwise, nothing
  herein contained shall be construed as obligating Garuda to do any acts or make
  any payments hereunder, and any act or acts or payment or payments as shall
  be made hereunder shall not be construed as obligating Garuda to do any further
  act or make any further payment or payments.</P>
<P align="justify"> IN WITNESS WHEREOF the Parties hereto have duly executed this
  Agreement effective as of the 18<SUP>th</SUP> day of May, 2005 </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD colspan=2 align=left> <B>GARUDA GOLD CORPORATION</B>&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left> Per:&nbsp; </TD>
    <TD align=left bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid"> <I>/s/ C. Robin Relph</I>&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp; </TD>
    <TD align=left> Authorized Signatory:&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=2 align=left> <B>NEWHAVEN RESOURCES LIMITED</B>&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left> Per:&nbsp; </TD>
    <TD align=left bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">
      <I>/s/ Bruce Luckman</I></TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp; </TD>
    <TD align=left> Authorized Signatory:&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=2 align=left> <B>AQUARIAN GOLD CORPORATION</B>&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left> Per:&nbsp; </TD>
    <TD align=left bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid"> <I>/s/ Jurgen Wolf</I>&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp; </TD>
    <TD align=left> Authorized Signatory:&nbsp; </TD>
    <TD width=50% align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>

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<A name="page_7"></A>

<P align="center"> SCHEDULE A </P>
<P align="center"> DESCRIPTION OF MINING RIGHTS </P>
<P> The Mining Rights consists of: </P>
<p align="justify" style="margin-left:5%">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newhaven&#8217;s
  rights pursuant to an agreement Robert Appiah &amp; Group (the &#8220;Appiah
  Group&#8221;), who have a gold and diamond license from the Government of Ghana
  in the town of Prestia, in the Western Province of Ghana (the &#8220;Property&#8221;),
  to receive 90% of the total value of gold mined on the Property during the term
  of the agreement in consideration for the provision of mining services to the
  Appiah Group, which mining services include: </p>
<table style="font-size: 10pt;border-color:#000000;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">&#8226;</td>
    <td><p align="justify">Project administration</p></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><div align="justify">Preparation and storage of project technical documentation</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><p align="justify">Exploration, sampling and all other associated geological
        work including documentation of existing mineral resources</p></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><p align="justify">Contract mining</p></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><div align="justify">Extraction and preliminary reefing of gold and associated
        minerals</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><div align="justify">Provision of security at site</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><div align="justify">Provision of environmental reclamation services on
        behalf of the licensee</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&#8226;</td>
    <td><p align="justify">Construction of infrastructure including buildings
        and boreholes.</p></td>
  </tr>
</table>
<p align="justify" style="margin-left:5%">The agreement requires that the Appiah
  Group not allow any third party to conduct any mining operations on the Property,
  or engage in any such operations itself during the term of the agreement. The
  term of the agreement is four years, but Newhaven may elects to terminate the
  agreement earlier.</p>
<p align="justify" style="margin-left:5%">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prospecting
  and Mining Rights that Newhaven has acquired or will acquire during the term
  of this agreement on areas surrounding or near the Property. </p>
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