ROYAL GOLD INC
CONTRACT FOR ASSIGNMENT OF RIGHTS
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>4
<FILENAME>d42704exv10w4.htm
<DESCRIPTION>CONTRACT FOR ASSIGNMENT OF RIGHTS
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<DIV align="right" style="font-size: 10pt; margin-top: 6pt">Exhibit
10.4
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    <TD colspan="3" valign="top" align="center"><B>CONTRATO DE CESI&#211;N DE DERECHOS QUE OTORGA, POR
UNA PARTE, MINERA KENNECOTT, S.A. DE C.V.,
REPRESENTADA EN ESTE ACTO POR EL SR. DAVE F. SIMPSON
Y, POR LA OTRA, MINERA PE&#209;ASQUITO, S.A. DE C.V.,
REPRESENTADA EN ESTE ACTO POR EL LIC. JOSE MARIA
GALLARDO TAMAYO, DE ACUERDO CON LAS SIGUIENTES:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center"><B>CONTRACT FOR ASSIGNMENT OF RIGHTS GRANTED, BY MINERA
KENNECOTT, S.A. DE C.V. REPRESENTED IN THIS AGREEMENT
BY MR. DAVE F. SIMPSON, AND MINERA PE&#209;ASQUITO, S.A. DE
C.V., REPRESENTED IN THIS AGREEMENT BY ATTORNEY, JOSE
MARIA GALLARDO TAMAYO, IN AGREEMENT WITH THE FOLLOWING</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>D E C L A R A C I O N E S</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center"><B>DECLARATIONS</B><BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Declaran las partes en que, para los efectos de este <BR>
Contrato, las abreviaturas utilizadas se entender&#225;n <BR>
por:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">The parties declare that for the purposes of this
Contract, the following definitions shall have the
following meanings:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>KENNECOTT:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minera Kennecott, S.A. de
C.V., as&#237; como sus
causahabientes y cesionarios, y
cualesquiera personas, sociedad
o entidad jur&#237;dica, nacional o
extranjera, que &#233;sta designase
para el ejerciclo de cualquiera
de los derechos derivados de
este Contrato y que se
encuentre legalmente
capacitada para ello.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>KENNECOTT:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minera Kennecott, S.A. de C.V.,
as well as its successors and
assigns, and any other persons,
companies, or any legal, domestic
or foreign entity, authorized to
exercise any of the rights derived
from this Contract and which
possess the legal capacity for such
exercise.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PE&#209;ASQUITO:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minera Pe&#328;asquito, S.A. de
C.V., as&#237; como sus
causahabientes y cesionarios, y
cualesquiera personas, sociedad
o entidad jur&#237;dica, nacional o
extranjera, que &#233;sta designase
para el ejercicio de cualquiera
de los derechos derivados de
este Contrato y que se encuentre
legalmente capacitada para ello.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PE&#209;ASQUITO:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minera Pe&#241;asquito, S.A. de C.V.,
as well as its successors and
assigns, and any other persons,
companies, or any legal, domestic
or foreign entity, authorized to
exercise any of the rights derived
from this Contract and which
possess the legal capacity for such
exercise.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>AFILIADOS:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cualquier persona, sociedad o
entidad jur&#237;dica que, directa o
indirectamente, controle a
<B>KENNECOTT </B>o
<B>PE&#209;ASQUITO</B>, o sea
controlada por las mismas,
seg&#250;n sea el caso,
entendi&#233;ndose por &#147;control&#148; el
derecho ha hacer valer m&#225;s del
50 % de los derechos de
votaci&#243;n correspondientes a las
acciones de la parte controlada.
En el caso de <B>KENNECOTT</B>,
se considerara como
<B>AFILIADOS </B>a cualquier
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>AFFILIATES:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Any person, company, partnership
or legal entity that directly or
indirectly controls <B>KENNECOTT</B>
or <B>PE&#209;ASQUITO</B>, or is
controlled by the same, as the case
may be, understanding that
&#147;control&#148; means the right to direct
more than 50% of voting rights
corresponding to the stock of the
controlled party. In the case of
<B>KENNECOTT</B>, <B>AFFILIATES</B>
are considered as any person,
company, or legal entity,
independent of its location, for
which Rio Tinto Corporation PLC</TD>
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<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">persona, sociedad o entidad
jur&#237;dica que,
independientemente de su
ubicaci&#243;n, Rio Tinto
Corporation PLC posea o
controle tales derechos de
votaci&#243;n.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">possesses or controls such voting
rights.</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LOS LOTES:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Las Concesiones Mineras con
respecto a los lotes descritos en
el inciso <B>c) </B>de las
Declaraciones de
<B>KENNECOTT </B>en este
documento, y las que de ellas
se deriven.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THE LAND:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Mining Concessions with
respect to the land described in
paragraph <B>c) </B>of the Declarations of
<B>KENNECOTT </B>in this document
and the rights that are derived
therefrom.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LOS DERECHOS:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Derechos derivados de los
<B>T&#237;tulos de Concesi&#243;n Minera</B>
con respecto a <B>LOS LOTES</B>.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THE RIGHTS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights derived from Mining
Concession Deeds with respect to
<B>THE LAND</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>REGISTRO:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">El Registro P&#250;blico de Miner&#237;a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REGISTRY</B>:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Public Mining Registry</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LOS CONTRATOS:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Los siguientes Contratos de
Cesi&#243;n de Derechos:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THE CONTRACTS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The following Assignment
Agreements:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a) Celebrado entre Minera
Catasillas, S.A. de C.V. y
<B>KENNECOTT</B>, registrado
bajo el n&#250;mero 108, a fojas 79
frente y vuelta, del volumen 5,
del libro de Actos, Contratos y
Convenios Mineros del
<B>REGISTRO</B>, el 26 de Febrero
de 1997.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a) Agreed to between Minera
Catasillas, S.A. de C.V. and
<B>KENNECOTT</B>, registered under
number 108, page 79 front and
back volume 5, of the Mining
Acts, Contracts and Agreements
book of the <B>REGISTRY</B>, dated
February&nbsp;26, 1997.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">b) Celebrado entre el Lic. Jos&#233;
Guadalupe Dur&#243;n Santill&#225;n y
<B>KENNECOTT</B>, registrado
bajo el n&#250;mero 244, a fojas 172
vuelta a 173 frente, del
volumen 7, del libro de Actos,
Contratos y Convenios Mineros
del <B>REGISTRO</B>, el 30 de
Septiembre de 1998.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">b) Agreed to between Jos&#233;
Guadalupe Dur&#243;n Santill&#225;n, Esq.,
and <B>KENNECOTT</B>, registered
under number 244, page 172 and
continuing to 173, of volume 7 of
the Mining Acts, Contracts and
Agreements book of the
<B>REGISTRY</B>, dated September&nbsp;30,
1998.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c) Celebrado entre el Ing.
Rafael Gayt&#225;n Monroy y
<B>KENNECOTT</B>, registrado
bajo el n&#250;mero 10, a fojas 7
vuelta a 8 frente, del volumen
9, del libro de Actos, Contratos
y Convenios Mineros del
<B>REGISTRO</B>, el 23 de Octubre
de 1998.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c) Agreed to between Engineer,
Rafael Gayt&#225;n Monroy and
<B>KENNECOTT</B>, registered under
number 10, page 7 and continuing
to 8, of volume 9 of the Mining
Acts, Contracts and Agreements
book of the <B>REGISTRY</B>, dated
October&nbsp;23, 1998.</TD>
</TR>
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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LEY:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">La Ley Minera.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>LAW:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Mining Law</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>REGLAMENTO:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reglamento de la Ley Minera.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REGULATIONS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulations of the Mining Law</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>IVA:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Impuesto al Valor Agregado.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>VAT:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Value Added Tax</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ISR:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Impuesto Sobre la Renta.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>IT:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Income Taxes</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LIR:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ley del Impuesto Sobre la
Renta.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ITL:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Income Tax Law</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LFD:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ley Federal de Derechos.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FRL:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Federal Rights Law</TD>
</TR>
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<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>I. </B>Declara el representante de
<B>KENNECOTT</B>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>I. </B>Declares the representative of
<B>KENNECOTT</B>:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>a) </B>Que su representada es una sociedad
minera, mexicana, constitu&#237;da conforme
a las Leyes de los Estados Unidos
Mexicanos, registrada baja el Numero
104, a Fojas 89 Frente y Vuelta, del
Volumen XXIX del Libro General de
Sociedades del <B>REGISTRO </B>el 12 de Julio
de 1991, con Registro Federal de
Causantes MKE-910228-AQA y que, de
acuerdo con su objeto social, est&#225;
capacitada para dedicarse a la
exploraci&#243;n y explotaci&#243;n de sustancias
concesibles, ser titular de concesiones
mineras, as&#237; como para celebrar
contratos que tengan por objeto
transferir derechos derivados de dichas
concesiones y, por lo tanto, capacitada
para celebrar este Contrato de Cesi&#243;n
de Derecheos.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>a) </B>That he represents a Mexican mining
company organized under the laws of
Mexico, registered under number 104, page
89 front and back, of volume XXIX of the
General Book of Companies of the <B>REGISTRY</B>,
dated July&nbsp;12, 1991, with the Federal
Entity Register of MKE-910228-AQA, and in
accordance with its corporate purpose, has
the capacity to engage in the exploration
and exploitation of concessionable
substances, to be the holder of of mining
concessions, as well as to execute
contracts transferring rights derived from
such concessions, and as a result, has the
capacity to execute this Contract for
Assignment of Rights.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>b) </B>Que tiene facultades suficientes
para actuar en nombre y representaci&#243;n
de <B>KENNECOTT</B>, oblig&#225;ndola en los
t&#233;rminos de este Contrato, facultades
que a la fecha de la firma de este
documento no le han sido revocadas o
modificadas en forma alguna, como
consta en la Escritura P&#250;blica n&#250;mero
60724, de fecha 15 de Mayo de 1998,
otorgada ante el licenciado Armando
G&#225;lvez P&#233;rez Arag&#243;n, Notario P&#250;blico
103 del Distrito Federal, adem&#225;s de
estar inscrita en el Registro &#218;nico de
Personas Acreditadas bajo el N&#250;mero de
Acreditamiento 49795/73971, expedido el
7 de Septiembre de 1999.&#096;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>b) </B>That he has sufficient authority to act
in the name of and to represent <B>KENNECOTT</B>,
obligating it to the terms of this
Contract, authority that upon the date
this document is signed has not been
revoked or modified in any form, as
confirmed in Public Deed number 60724,
dated May&nbsp;15, 1998, singed before Armando
G&#225;lvez P&#233;rez Arag&#243;n, Notary Public 103 of
the Federal District, in addition to being
written in the Exclusive Register of
Accredited Persons under Accreditation
Number 49795/73971, sent September&nbsp;7,
1999.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>c) </B>Que su representada es titular de <BR>
las derechos derivados de las <BR>
Concesiones Mineras con respecto a los <BR>
lotes que se describen a continuaci&#243;n:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>c) </B>That the party he represents is the
holder of the rights derived from the
Mining Concessions with respect to the
land described as follows:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 3 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>1)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nombre de la Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;EL PE&#209;ASQUITO&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of the Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;EL PE&#209;ASQUITO&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tipo de Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Explotaci&#243;n</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type of Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploitation</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">321.43/885</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">321.43/885</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T&#237;tulo:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">196289</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">196289</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Superficie:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.0000 Hect&#225;reas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Area:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.0000 Hectacres</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de Registro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">16 de Julio de 1993</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Registry:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">July 16, 1993</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N&#250;mero:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">149</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">149</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">75</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">75</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">271</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">271</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concesiones Mineras</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Concessions</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vigencia a:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11 de Junio de 2011Cesi&#243;n de Derechos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June 11, 2011 Assignment of Rights</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscrita en el Acta:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscribed in the Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 frente y vuelta</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 front and back</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actos, Contratos y <BR>Convenios Mineros</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Deeds, Contracts and Agreements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de inscripci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">26 de Febrero de 1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of inscription:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February 26, 1997</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nombre de la Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;LA PE&#209;A&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of the Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;LA PE&#209;A&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tipo de Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Explotaci&#243;n</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type of Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploitation</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/1.3/547</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/1.3/547</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T&#237;tulo:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">203264</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">203264</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Superficie:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">58.0000 Hect&#225;reas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Area:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">58.0000 Hectacres</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de Registro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">28 de Junio de 1996</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Registry:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June 28, 1996</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N&#250;mero:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">284</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">284</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">142</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">142</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">290</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">290</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concesiones Mineras</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Concessions</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vigencia a:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">27 de Junio de 2046</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June 27, 2046</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cesi&#243;n de Derechos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of Rights</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">inscrita en el Acta:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscribed in the Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 frente y vuelta</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 front and back</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actos, Contratos y <BR>
Convenios Mineros</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Deeds, Contracts and Agreements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de inscripci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">26 de Febrero de 1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of inscription:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February 26, 1997</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
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    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nombre de la Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;LAS PE&#209;AS&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>3)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of the Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;LAS PE&#209;AS&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tipo de Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploraci&#243;n</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type of Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploration</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">07/13065</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">07/13065</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T&#237;tulo:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">195327</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">195327</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Superficie:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">40.0000 Hect&#225;reas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Area:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">40.0000 Hectacres</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de Registro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15 de Septiembre de 1992</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Registry:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 15, 1992</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N&#250;mero:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">147</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">147</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">38</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">38</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">269</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">260</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concesiones Mineras</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Concessions</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vigencia a:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">18 de Septiembre de 1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 18, 1998</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente Explotaci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8-1.3/983</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploitation Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8-1.3/983</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de solicitud:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7 de Septiembre de 1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Application:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 7, 1998</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cesi&#243;n de Derechos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of Rights</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">inscrita en eI Acta:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscribed in the Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">108</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 frente y vuelta</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">79 front and back</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actos, Contratos y <BR>
Convenios Mineros</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Deeds, Contracts and Agreements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de inscripci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">26 de Febrero de 1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of inscription:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February 26, 1997</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>4)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nombre de la Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;ALFA&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>4)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of the Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;ALFA&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tipo de Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Explotaci&#243;n</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type of Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploitation</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/1.3/485</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/1.3/485</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T&#237;tulo:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">201997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">201997</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Superficie:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,100.0000 Hect&#225;reas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Area:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,1000.0000 Hectacres</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de Registro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11 de Octubre de 1995</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Registry:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October 11, 1995</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N&#250;mero:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">97</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">97</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">49</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">49</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">287</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">287</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concesiones Mineras</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Concessions</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vigencia a:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10 de Octubre de 2045</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October 10, 2045</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cesi&#243;n de Derechos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of Rights</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">inscrita en el Acta:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">244</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscribed in the Act:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">244</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">172 vuelta a 173 frente</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">172 continuing to front of 173</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actos, Contratos y <BR>
Convenios Mineros</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Deeds, Contracts and Agreements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de inscripci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">30 de Septiembre de 1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of inscription:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 30, 1998</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nombre de la Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;BETA&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>5)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of the Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#147;BETA&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tipo de Concesi&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploraci&#243;n</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type of Concession:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exploration</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expediente:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/13187</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/13187</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T&#223;tulo:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">198921</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">198921</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Superficie:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2,054.7609 Hect&#225;reas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Area:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2,054.7609 Hectacres</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de Registro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">31 de Enero de 1994</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of Registry:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January 31, 1994</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N&#250;mero:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">261</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">261</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">131</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">131</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">278</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">278</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concesiones Mineras</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Concessions</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vigencia a:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">30 de Enero de 2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January 30, 2000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cesi&#243;n de Derechos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of Rights</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">inscrita en el Acta:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inscribed in the Record:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fojas:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7 vuelta a 8 frente</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pages:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7 continuing to front of 8</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volumen:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Volume:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Libro:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actos, Contratos y <BR>
Convenios Mineros</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Book:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mining Deeds, Contracts and Agreements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fecha de inscripci&#243;n:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">23 de Octubre de 1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of inscription:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October 23, 1998</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sin perjuicio de tercero que mejor derecho tenga.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Without prejudice of a third party who may
have better rights.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>d) </B>Contin&#250;a declarando <B>KENNECOTT </B>que <B>LOS
DERECHOS </B>que en este acto cede a favor de
<B>PE&#209;ASQUITO </B>son los derivados de <B>LOS LOTES</B>,
adem&#225;s de las obligaciones derivadas de <B>LOS
CONTRATOS</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>d) KENNECOTT </B>continues declaring that <B>THE
RIGHTS </B>that in this deed are assigned in
favor of <B>PE&#209;ASQUITO </B>are those derived from
<B>THE LAND </B>in addition to the obligations
derived from <B>THE CONTRACTS</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>e) </B>Que los derechos y capacidad legal de
<B>KENNECOTT</B>, respecto de <B>LOS LOTES</B>, no han sido
limitados, ni revocados, y que no se encuentra
en conocimiento de oposici&#243;n alguna de cualquier
tercero, respecto de la firma de este documento.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>e) </B>That the rights and legal capacity of
<B>KENNECOTT</B>, with respect to <B>THE LAND</B>, have
not been limited, or revoked, and that it
is not aware of any opposition from any
third party with respect to the signing of
this document.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>f) </B>Que desea ceder a <B>PE&#209;ASQUITO</B>, en las t&#233;rminos
de este instrumento, <B>LOS DERECHOS</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>f) </B>That it wishes to assign to <B>PE&#209;ASQUITO</B>,
according to the terms of this instrument,
<B>THE RIGHTS</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>II. </B>Declara el representante de <B>PE&#209;ASQUITO</B>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>II. </B>Declares the representative of
<B>PE&#209;ASQUITO</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>a) </B>Que su representada es una sociedad minera,
mexicana, constitu&#237;da conforme a las Leyes de
los Estados Unidos Mexicanos, con solicitud de
inscripci&#243;n al <B>REGISTRO </B>bajo el N&#250;mero
610/32177, de fecha 13 de Octubre de 1999, con
Registro Federal de Causantes MPE &#151; 990122 &#151; 137
y que, de acuerdo con su objeto social, est&#225;
capacitada para dedicarse a la exploraci&#243;n y
explotaci&#243;n de sustancias concesibles, ser
titular de concesiones mineras, as&#237; como para
celebrar contratos que tengan por objeto
adquirir derechos derivados de dichas
concesiones y, por lo tanto, capacitada para
celebrar este Contrato de Cesi&#243;n de Derechos.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>a) </B>That he represents a Mexican mining
company organized according to the laws of
Mexico, with an application of a record to
the <B>REGISTRY </B>under number 610/32177, dated
October&nbsp;13, 1999, with the Federal Entity
Register of MPE-990122-137 and that in
accordance with its corporate purpose, has
the capacity to engage in the exploration
and exploitation of concessionable
substances, to be the holder of mining
concessions, as well as to execute
contracts to acquire rights derived from
such concessions, and, as a result, has the
capacity to execute this Contract for
Assignment of Rights.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>b) </B>Que tiene facultades suficientes para actuar
en nombre y representaci&#243;n de <B>PE&#209;ASQUITO</B>,
oblig&#225;ndoIa en los t&#233;rminos de este Contrato,
facultades que a la fecha de la firma de este
documento no le han sido revocadas o modificadas
en forma alguna, como consta en la Escritura
P&#250;blica n&#250;mero 44,340, de fecha 21 de Enero de
1999, otorgada ante el licenciado Jorge Robles
Far&#237;as, Notario P&#250;blico n&#250;mero 12 de
Guadalajara, Jalisco.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>b) </B>That he has sufficient authority to act
in the name of and to represent <B>PE&#209;ASQUITO</B>,
binding it to the terms of this Contract,
authority that upon the date this document
is signed have not been revoked or modified
in any form, as confirmed in Public Deed
number 44,340, dated January&nbsp;21, 1999,
signed before the attorney, Jorge Robles
Far&#237;as, Notary Public number 12 of
Guadalajara, Jalisco.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>c) </B>Que <B>PE&#209;ASQUITO </B>conoce <B>LOS LOTES </B>y <B>LOS
CONTRATOS</B>, y los acepta en las condiciones
establecidas en las Declaraciones de <B>KENNECOTT</B>,
y que desea recibir <B>LOS DERECHOS </B>por parte de
<B>KENNECOTT</B>, en los t&#233;rminos de este instrumento,
dando continuidad al cumplimiento de <B>LOS
CONTRATOS</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>c) </B>That <B>PE&#209;ASQUITO </B>is familiar with <B>THE
LAND </B>and <B>THE CONTRACTS</B>, and accepts them
under the established conditions as set
forth in the Declarations of <B>KENNECOTT</B>, and
that it desires to receive <B>THE RIGHTS </B>on
behalf of <B>KENNECOTT </B>according to the terms
of this instrument, giving continuity to
the fulfillment of <B>THE CONTRACTS</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">En virtud de lo anterior, las partes celebran el
presente Contrato conforme a las siguientes:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In witness to the foregoing, the parties
enter into the present Contract in
accordance with the following:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>C L A U S U L A S</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CLAUSES</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PRIMERA. KENNECOTT </B>cede a <B>PE&#209;ASQUITO</B>, y &#233;sta
acepta la cesi&#243;n, adquiriendo <B>LOS DERECHOS</B>,
adem&#225;s de todas las obligaciones pactadas por
<B>KENNECOTT </B>en <B>LOS CONTRATOS</B>, obligandose
<B>PE&#209;ASQUITO </B>desde ahora al total cumplimiento de
las mismas.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FIRST</B>. <B>KENNECOTT </B>assigns to <B>PE&#209;ASQUITO</B>,
and <B>PE&#209;ASQUITO </B>accepts the assignment,
acquiring <B>THE RIGHTS </B>in addition to all of
the obligations agreed to by <B>KENNECOTT </B>in
<B>THE CONTRACTS</B>, and <B>PE&#209;ASQUITO </B>covenants
from this day forward to comply completely
with the same.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>SEGUNDA. </B>Por la cesi&#243;n de <B>LOS DERECHOS </B>antes
mencionada, <B>KENNECOTT</B>, recibir&#225; como
contraprestaci&#243;n por parte de <B>PE&#209;ASQUITO</B>,
siempre y cuando &#233;sta lleve a cabo trabajos de
explotaci&#243;n en <B>LOS LOTES</B>, una regal&#237;a sobre
liquidaciones netas sobre fundici&#243;n como se
define en el <B>ANEXO 1 </B>que se acompa&#241;a a este
documento, teni&#233;ndose aqu&#237; como integramente
reproducido, formando parte integrante del
mismo, igual al 2 % (dos por ciento), por las
ventas de minerales provenientes de <B>LOS LOTES</B>,
sin incluir subsidio alguno o devoluciones de
impuestos que el Gobierno Federal pudiese
otorgar a <B>PE&#209;ASQUITO </B>par cualquier motivo, de
acuerdo con lo estipulado en el <B>ANEXO 1 </B>antes
mencionado.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SECOND</B>. As a result of the assignment of
<B>THE RIGHTS </B>aforementioned, <B>KENNECOTT </B>will
receive as consideration from <B>PE&#209;ASQUITO</B>,
if and when it carries out exploitation
activities in <B>THE LAND</B>, net smelter
returns royalties, as defined in <B>ANNEX 1</B>,
an accurate copy of which is attached to
this document, and forms an integrated part
of the same, equal to 2% (two percent), of
the mineral sales originating from <B>THE
LAND</B>, without including any subsidies or
reimbursements of taxes that the Federal
Government may grant <B>PE&#209;ASQUITO </B>for any
reason in accordance with that stipulated
in the aforementioned <B>ANNEX 1</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Las partes est&#225;n de acuerdo en que a los pagos
anteriores se les agregar&#225; eI <B>IVA</B>
correspondiente a tales cantidades, las cuales
podr&#225;n ser cubiertas en su equivalente en Moneda
Nacional, al tipo de cambio para solventar
obligaciones denominadas en moneda extranjera
pagaderas en la Rep&#250;blica Mexicana que publique
eI Banco de M&#233;xico en el Diario Oficial de la
Federaci&#243;n en la fecha del pago.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The parties agree that to the payments
previously mentioned will be added <B>VAT</B>
corresponding to such amounts, which can be
covered in its equivalent in pesos, at an
exchange rate to settle obligations
denominated in foreign currency payable in
the Mexican Republic published by the Bank
of Mexico in the Official Journal of the
Federation on the date of payment.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>TERCERA.</B> Las partes convienen en que, con
excepci&#243;n del derecho de <B>KENNECOTT </B>a percibir
las regal&#237;as antes mencionadas, a partir de la
fecha en que ambas partes firmen y ratifiquen
este documento ante notario p&#250;blico, todos los
derechos y obligaciones, anteriores, presentes y
futuras, que se deriven de las Concesiones
Mineras con respecto a <B>LOS LOTES </B>y de <B>LOS
CONTRATOS</B>, ser&#225;n a favor y a cargo de
<B>PE&#209;ASQUITO</B>, la cual asumir&#225; y llevar&#225; a cabo, a
su propio costo y riesgo, todas las obligaciones
relacionadas con <B>LOS LOTES </B>y <B>LOS CONTRATOS</B>, e
indemnizar&#225; y liberar&#225; a <B>KENNECOTT </B>de cualquier
responsabilidad, costo o gasto relacionado con
las actividades de <B>PE&#209;ASQUITO </B>en <B>LOS LOTES</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THIRD</B>. The parties agree that, with the
exception of <B>KENNECOTT&#146;s </B>right to receive
the aforementioned royalties, from the date
both parties sign and ratify this document
before a notary public, all the past,
present and future rights and obligations
derived from the Mining Concessions with
respect to <B>THE LAND </B>and <B>THE CONTRACTS </B>will
be the rights and responsibilities of
<B>PE&#209;ASQUITO</B>, which will assume and carry
out, at its own expense and at its own
risk, all of the obligations related to <B>THE
LAND </B>and <B>THE CONTRACTS</B>, and will indemnify
and hold harmless <B>KENNECOTT </B>from any
responsibility, cost or expense related to
<B>PE&#209;ASQUITO&#146;s </B>activities on <B>THE LAND</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CUARTA.</B> Las partes se reconocen mutuamente
capacidad y personalidad para celebrar este
Contrato.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FOURTH</B>. The parties mutually recognize that
they have the capacity and legal status to
execute this Contract.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>QUINTA. PE&#209;ASQUITO </B>se obIiga expresamente a
inscribir este Contrato en el <B>REGISTRO, </B>para lo
cual, <B>KENNECOTT </B>se compromete a cooperar con
<B>PE&#209;ASQUITO </B>en todo lo que fuese necesario para
que la mencionada inscripci&#243;n se lleve a cabo
sin contratiempos.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FIFTH</B>. <B>PE&#209;ASQUITO </B>expressly agrees to
record this Contract in the <B>REGISTRY</B>, and
<B>KENNECOTT </B>agrees to cooperate with
<B>PE&#209;ASQUITO </B>with all that is necessary to
carry out the aforementioned inscription
without delay.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>SEXTA. KENNECOTT </B>se obliga a proporcionar a
<B>PE&#209;ASQUITO </B>toda la informaci&#243;n que se le
solicite, as&#237; como firmar, acreditar y cumplir
cualquier otro requisito necesario, a fin de que
este &#250;ltima ejercite los derechos que aqu&#237; se le
confieren.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SIXTH</B>. <B>KENNECOTT </B>agrees to provide
<B>PE&#209;ASQUITO </B>with all requested information,
as well as to execute, authorize, and
comply with any other necessary condition,
in order to bestow the rights herein
conferred.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>S&#201;PTIMA.</B> Mientras exista el derecho de
<B>KENNECOTT </B>a recibir la regal&#237;a sobre
liquidaciones netas sobre fundici&#243;n pactada en
la Clausula <B>SEGUNDA </B>de este documento,
<B>PE&#209;ASQUITO </B>se obliga a garantizar la existencia,
legitimidad y disponibilidad de <B>LOS DERECHOS</B>,
incluyendo el solicitar oportunamente la
solicitud de concesi&#243;n minera de explotaci&#243;n con
respecto a <B>LOS LOTES </B>cuyo vencimiento llegase a
ocurrir, y a no incurrir en ninguna de las
causas de nulidad, canceIaci&#243;n, suspensi&#243;n e
insubsistencia de derechos a que se refieren los
Art&#237;culos correspondientes de la <B>LEY </B>y eI
<B>REGLAMENTO</B>, de lo contrario, desde ahora, se
compromete, en su caso, a reparar los da&#241;os y
perjuicios que el incumplimiento a alguna de sus
obligaciones hubiese ocasionada a <B>KENNECOTT</B>, sin
embargo, <B>KENNECOTT</B>, s&#237; as&#237; lo decide, podr&#225;
coadyuvar con <B>PE&#209;ASQUITO </B>en la defensa de <B>LOS
DERECHOS</B>, en el entendido de que los honorarios
y dem&#225;s gastos que esto genere ser&#225;n cubiertos
por esta &#250;ltima.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SEVENTH</B>. While <B>KENNECOTT&#146;s </B>right to receive
net smelter returns royalties as agreed to
in the <B>SECOND </B>Clause of this document
exists, <B>PE&#209;ASQUITO </B>agrees to guarantee the
existence, legitimacy and availability of
<B>THE RIGHTS</B>, including applying for an
exploitation mining concession in a timely
manner with respect to <B>THE LAND </B>when they
mature, and to not incur any of the causes
of nullities, cancellation, suspension or
baseless rights as referred in the
applicable Articles in the <B>LAW </B>and the
<B>REGULATIONS</B>, from this day forward, in the
event the contrary occurs, <B>PE&#209;ASQUITO</B>
agrees to repay any damages and costs as a
result of noncompliance with its
obligations which may affect <B>KENNECOTT</B>,
nevertheless <B>KENNECOTT</B>, in its discretion,
may assist <B>PE&#209;ASQUITO </B>in defending <B>THE
RIGHTS</B>, with the understanding that the
fees and additional costs generated shall
be borne by the latter.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 8 <!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Asimismo, en caso de que <B>PE&#209;ASQUITO </B>decida
solicitar el desistimiento o reducci&#243;n de la
superficie concesionada que ampara <B>LOS LOTES</B>,
deber&#225; notificar a <B>KENNECOTT </B>dicha decisi&#243;n,
esta &#250;ltima tendr&#225; un plazo de 30 (treinta)&nbsp;dias
naturales para dar respuesta por escrito a
<B>PE&#209;ASQUITO </B>otorgando su conformidad con el
desistimiento o reducci&#243;n que <B>PE&#209;ASQUITO</B>
pretenda efectuar, o bien, solicitando a
<B>PE&#209;ASQUITO </B>le ceda los derechos derivados del
t&#237;tulo de concesi&#243;n minera con respecto a alguno
de <B>LOS LOTES </B>del cual pretenda desistirse, o la
superficie de alguna de <B>LOS LOTES </B>que pretenda
abandonar, previa divisi&#243;n que se haga del lote
de que se trate.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Similarly, in the event that <B>PE&#209;ASQUITO</B>
decides to solicit the abandonment or to
reduce the area protected by the
concessions in <B>THE LAND</B>, it shall notify
<B>KENNECOTT </B>of its decision, and <B>KENNECOTT</B>
shall have 30 (thirty)&nbsp;days to submit a
written response to <B>PE&#209;ASQUITO </B>granting its
approval of abandonment or reduction that
<B>PE&#209;ASQUITO </B>seeks to effect, or requesting
that <B>PE&#209;ASQUITO </B>assign to <B>KENNECOTT </B>the
rights derived from the mining concession
deeds with respect to any of <B>THE LAND </B>which
it intends to abandon or the area of <B>THE
LAND </B>that it intends to abandon, prior to
dividing the affected lproperty.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transcurrido el plaza de 30 (treinta)&nbsp;dias
naturales a que se refiere el p&#225;rrafo anterior,
si que medie contestaci&#243;n de <B>KENNECOTT</B>,
<B>PE&#209;ASQUITO </B>podr&#225; libremente desistirse o reducir
la superficie de que se trate, sin
responsabilidad ante <B>KENNECOTT</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After the passage of 30 (thirty)&nbsp;days as
mentioned in the previous paragraph, if
<B>KENNECOTT </B>intervenes and contests,
<B>PE&#209;ASQUITO </B>may freely abandon or reduce the
area in question without responsibility to
<B>KENNECOTT</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>OCTAVA. PENASQUTIO </B>se obliga a cumplir con la
ejecuci&#243;n y con la comprobaci&#243;n de obras o
trabajos de exploraci&#243;n y dem&#225;s obligaciones a
que se refieren los Art&#237;culos 27, 28, 29 y dem&#225;s
aplicables de la <B>LEY </B>y del <B>REGLAMENTO</B>,
incluyendo el pago de los derechos sobre miner&#237;a
que establece la <B>LFD </B>con respecto a <B>LOS LOTES</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>EIGHTH</B>. <B>PE&#209;ASQUITO </B>agrees to comply with
the execution and with verification of
exploration works or projects and the rest
of the obligations referred to in Articles
27, 28, 29 and also applicable to the <B>LAW</B>
and <B>REGULATIONS</B>, including the payment of
mining rights established in the <B>FRL </B>with
respect to <B>THE LAND</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>NOVENA.</B> Todos los avisos y notificaciones que
las partes deban darse conforme al presente
Contrato, se har&#225;n mediante carta certificada,
con acuse de recibo, enviada a los siguientes
domicilios:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NINTH</B>. All notices and demands the parties
are required to give each other in
accordance with the present Contract will
be done pursuant to certified letter, with
acknowledgment of receipt, sent to the
following addresses:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;KENNECOTT&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#147;KENNECOTT&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">MINERA KENNECOTT, S.A. DE C.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">MINERA KENNECOTT, S.A. DE C.V.</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">NEBULOSA 3019
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NEBULOSA 3019</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">COL. JARDINES DEL BOSQUE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">COL. JARDINES DEL BOSQUE</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">GUADALAJARA, JALISCO 44520
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">GUADALAJARA, JALISCO 44520</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">TEL. (3)&nbsp;647-9131
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">TEL. (3)&nbsp;647-9131</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">FAX (3)&nbsp;122-0367
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FAX (3)&nbsp;122-0367</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Atenci&#243;n Sr. Dave F. Simpson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Attention: Mr.&nbsp;Dave F. Simpson</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;PE&#209;ASQUITO&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#147;PE&#209;ASQUITO&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">MINERA PE&#209;ASQUITO, S.A. DE C.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">MINERA PE&#209;ASQUITO, S.A. DE C.V.</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">RICARDO FLORES MAGON NO. 67, INT. 8 - G
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">RICARDO FLORES MAGON NO. 67, INT. 8 - G</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">COL. CENTRO
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">COL. CENTRO</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">H. DEL PARRAL, CHIHUAHUA 33800
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">H. DEL PARRAL, CHIHUAHUA 33800</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">TEL. Y FAX (152)&nbsp;2-22-93
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">TEL. and FAX (152)&nbsp;2-22-93</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Atenci&#243;n Sr. Thomas Charles Patton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Attention Mr.&nbsp;Thomas Charles Patton</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cualquier cambio de domicilio o de
representante, se notificar&#225; por escrito,
entregado en forma fehaciente.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Any change in address or in representative
shall be noted in writing, delivered in the
manner set forth above.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9 <!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>D&#201;CIMA.</B> Todos los gastos, derechos, honorarios
e impuestos que se causen con motivo del
otorgamiento de este Contrato, convienen las
partes que sean por cuenta de <B>PE&#209;ASQUITO</B>. El <B>ISR</B>
a cargo de <B>KENNECOTT</B>, quien se obliga a expedir
las facturas correspondientes por las cantidades
que llegase a recibir por concepto de las
regal&#237;as pactadas en este contrato, en los
t&#233;rminos de la <B>LIR</B>, las que deber&#225;n ser
presentadas a <B>PE&#209;ASQUITO </B>a m&#225;s tardar en la
fecha del pago que le corresponda. Asimismo, las
partes se obligan a dar cumplimiento con todas
las obligaciones que le imponen las Ieyes
fiscales vigentes, en virtud de haber
manifestado en sus Declaraciones estar inscritas
en el Registro Federal de Contribuyentes y que
su actividad preponderante es la que la <B>LIR</B>
califica como Sociedades Mercantiles. Desde
ahora, <B>KENNECOTT</B>, con fundamento en la <B>LIR</B>,
autoriza a <B>PE&#209;ASQUITO </B>para que &#233;sta efect&#250;e las
retenciones necesarias, de conformidad con las
leyes aplicables de la materia, siempre y cuando
procedan dichas retenciones al momento de los
pagos, en cuyo caso se expedir&#225;n a satisfacci&#243;n
de las partes los comprobantes correspondientes,
lo anterior, dado que las Concesiones Mineras
objeto de este Contrato forma parte de la
actividad manifestada.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TENTH</B>. The parties agree that all of the
expenses, rights, fees and taxes resulting
from the grant of this Contract will be
borne by <B>PE&#209;ASQUITO</B>. Income taxes will be
for the account of <B>KENNECOTT</B>, which agrees
to send its corresponding invoices for the
amount it receives for its royalties as
agreed to in this contract, according to
terms of the <B>ITL</B>, which should be presented
to <B>PE&#209;ASQUITO </B>no later than the
corresponding pay date. Similarly, the
parties agree to comply with all
obligations imposed by current fiscal laws,
in accordance with what has been stated in
their Declaration, to be recorded in the
Federal Registry of Taxpayers and that
their predominant activities are those
which the <B>ITL </B>characterized as a Commercial
Corporation. As of today, <B>KENNECOTT</B>, based
on the <B>ITL, </B>authorizes <B>PE&#209;ASQUITO </B>to
effectuate necessary withholdings according
to the applicable laws, provided that said
withholding occurs at the time of payment,
in which case proof of the foregoing will
be provided to the satisfaction of the
parties, given the object of the Mining
Concessions that form the object of this
Contract form a part of the manifested
activity.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>D&#201;CIMA PRIMERA.</B> En eI supuesto de que el
<B>REGISTRO</B>, considerase necesario que este
documento y los que de &#233;I se deriven se
contengan en escritura p&#250;blica, <B>KENNECOTT</B>,
autoriza a <B>PE&#209;ASQUITO</B>, desde ahora, a elevarlos
a escritura p&#250;blica ante el Notario P&#250;blico de
su elecci&#243;n y sin necesidad de la comparecencia
de <B>KENNECOTT.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ELEVENTH</B>. In the event that the <B>REGISTRY</B>
considers it necessary that this document
and those from which it is derived be in
the form of public deeds, <B>KENNECOTT</B>
authorizes <B>PE&#209;ASQUITO</B>, from now on, to make
them part of the public record before a
notary public of choosing without an
appearance by <B>KENNECOTT</B>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>D&#201;CIMA SEGUNDA. </B>Cualquiera de las partes tendr&#225;
eI derecho, previo consentimiento de la otra
parte, el cual no ser&#225; negado sin existir causa
razonable, a ceder los derechos y las
obligaciones que de este documento derivan a
favor y a cargo de la misma, en el entendido de
que la cesionaria se subrogar&#225; en los derechos y
obligaciones de la parte cedente.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TWELFTH</B>. Anyone of the parties has the
right, with the prior consent of the other
party, which consent will not be withheld
without a reasonable basis, to assign the
rights and obligations derived in this
document for the benefit and burden of the
same upon the understating that the
assignment will subrogate the rights and
obligations to the assignor.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">En caso de que la parte que deba otorgar su
consentimiento no manifieste objeci&#243;n en el
t&#233;rmino de 30 (treinta)&nbsp;d&#237;as naturales
siguientes a la fecha en que se solicite su
consentimiento, se entender&#225; que otorga dicho
consentimiento.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event that the party needing to
grant consent does not object at the end of
30 (thirty)&nbsp;days following the date in
which consent has been requested, it will
be understood that consent has been
granted.</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">El derecho de <B>KENNECOTT </B>a la regal&#237;a sobre
liquidaciones netas sobre fundici&#243;n continuar&#225;,
a&#250;n y cuando se lleve a cabo cualesquier
modificaci&#243;n a cualquiera de las concesiones
mineras con respecto a <B>LOS LOTES</B>, incluyendo la
elevaci&#243;n a explotaci&#243;n, reducciones,
unificaciones, pr&#243;rrogas de vigencia, o
extensiones de &#233;stas. Esta regalia ser&#225; parte de
<B>LOS LOTES </B>y ser&#225; aplicable a cualquier persona
f&#237;sica o moral que explote y comercialice
productos minerales procedentes de los mismos,
por lo que en el caso de que <B>PE&#209;ASQUITO </B>llegase
a ceder sus derechos y obligaciones a un
tercero, este deber&#225; reconocer par escrito este
derecho de <B>KENNECOTT</B>, adem&#225;s de obligarse a
inscribir de inmediato dicho documento en el
<B>REGISTRO</B>, a su propio costo.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>KENNECOTT&#146;s </B>right to net smelter returns
royalties shall continue despite any
modification in the mining concessions with
respect to <B>THE LAND</B>, including the
elevation to exploitation, reductions, and
unifications, delays to maturity or
extensions. This royalty shall be part of
<B>THE LAND </B>and will apply to any legal entity
that exploits and commercializes mineral
products deriving from the same, which in
the event that <B>PE&#209;ASQUITO </B>assigns its
obligations to a third party, it will
notify <B>KENNECOTT </B>in addition to agreeing to
immediately inscribe such a document in the
<B>REGISTRY</B>, while bearing the cost.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>D&#201;CIMA TERCERA.</B> Este Contrato ser&#225; obligatorio
para las partes, sus herederos, causahabientes o
cesionarios. Las partes, no obstante la
naturaleza de este instrumento, declaran
expresamente que en las convenciones objeto del
mismo no existe lesi&#243;n y, a&#250;n cuando la hubiese,
renuncian expresamente al derecho de pedir la
nulidad relativa de que tratan los Art&#237;culos
2228 y 2239 del C&#243;digo Civil para el Distrito
Federal en Materia Com&#250;n y para toda la
Rep&#250;blica en Materia Federal y los Art&#237;culos
correlativos de los C&#243;digos Civiles de todas las
Entidades de los Estados Unidos Mexicanos.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THIRTEENTH</B>. This Contract is binding on
the parties, their heirs, successors or
assignees. The parties, despite the nature
of this instrument, expressly declare that
no injury exists, and if there was injury,
they expressly renounce the right to seek a
relative nullity of contracts pursuant to
Articles 2228 and 2239 of the Civil Code
for the Federal District in Common Material
and for all the Republic in Federal
Material and the corresponding Articles in
the Civil Codes of all the Entities of
Mexico.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>D&#201;CIMA CUARTA.</B> Este Contrato se celebra en los
t&#233;rminos del Art&#237;culo 78 del C&#243;digo de Comercio,
es de naturaleza mercantil, por lo que, para lo
que no est&#233; expresamente aqu&#237; pactado y para la
interpretaci&#243;n y cumplimiento del mismo, se
aplicar&#225;n la <B>LEY</B>, el <B>REGLAMENTO </B>y la Legislaci&#243;n
Mercantil, as&#237; como, supletoriamente, el C&#243;digo
Civil para el Distrito Federal en Materia Com&#250;n
y para toda la Rep&#250;blica en Materia Federal,
para lo no previsto en las dos primeras
legislaciones. Para la resoluci&#243;n de cualquier
controversia que surgiese con motivo de este
documento, las partes se someten expresamente a
la jurisdicci&#243;n de los tribunales competentes en
la Ciudad de Guadalajara, Jalisco, renunciando a
cualquier jurisdicci&#243;n que pudiese
corresponderles en raz&#243;n de sus actuales o
futuros domicilios o por cualquier otra causa.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FOURTEENTH</B>. This contract is entered into
according to the terms of Article&nbsp;78 of the
Commercial Code, is of a commercial nature,
such that what is not expressly agreed to
and for the interpretation and compliance
of the same, the <B>LAW</B>, the <B>REGULATIONS </B>and
Commercial Legislation, supplements the
Civil Code for the Federal District in
Common Matters for all of the Republic in
Federal Matters, to what is not foreseen in
the first two legislatures. To resolve any
controversy arising between the parties as
a result of this document, the parties
expressly submit themselves to the
jurisdiction of the competent tribunals in
the City of Guadalajara, Jalisco and waive
any other jurisdiction that might entertain
a cause of action despite the parties&#146;
actual or future locations or any other
cause.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Este documento es hecho en cuatro ejemplares,
uno para cada una de las partes, otro para fines
notariales y el restante para eI <B>REGISTRO </B>y, una
vez Ie&#237;do, lo ratifican en todo sus t&#233;rminos y
firman, para debida constancia, el 29 de OCTUBRE
de 1999, en Ciudad de Guadalajara, Jalisco.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Four copies were made of this document, one
for each party, another for notary
purposes, and the remainder for the
<B>REGISTRY</B>, and once read and ratified in
accordance with all its terms and signed,
for due verification, the 29th of OCTOBER
of 1999, in the City of Guadalajara,
Jalisco.</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>&#147;KENNECOTT&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>&#147;PE&#209;ASQUITO&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>&#147;KENNECOTT&#148;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>&#147;PE&#209;ASQUITO&#148;</B></TD>
</TR>



<!-- End Table Head -->
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<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MINERA KENNECOTT, S.A. DE C.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, S.A. DE C.V.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA KENNECOTT, S.A. DE C.V.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, S.A. DE C.V.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dave F. Simpson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lic. Jos&#233; Mar&#237;a Gallardo Tamayo
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dave F. Simpson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lic. Jos&#233; Mar&#237;a Gallardo Tamayo</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Representante legal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representante legal
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Representative
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Representaitve</TD>
</TR>
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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 11 <!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ANEXO 1</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ANNEX 1</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">De conformidad con el Contrato de Cesi&#243;n de Derechos al que pertenece
este documento, celebrado entre MINERA KENNECOTT, S.A. DE C.V. (En lo
sucesivo &#147;<B>TITULAR DE LA REGAL&#205;A</B>&#148;) y MINERA PE&#209;ASQUITO, S.A. DE C.V. (En lo
sucesivo &#147;<B>DEUDOR DE LA REGAL&#205;A</B>&#148;), sobre las concesiones mineras que se
mencionan en el inciso c) de las declaraciones de MINERA KENNECOTT, S.A.
DE C.V. en dicho Contrato, descritas como <B>LOS LOTES</B>, esta &#250;ltima tiene
derecho a una regal&#237;a equivalente aI 2 % (dos por ciento), conformidad con
la Clausula <B>SEGUNDA </B>del citado Cantrato, sabre las liquidaciones netas
sobre fundici&#243;n (En lo sucesivo &#147;<B>RSLNSF</B>&#148;) pagadera por MINERA PE&#209;ASQUITO,
S.A. DE C.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">This document is part of the Contract for Assignment of Rights entered
into between MINERA KENNECOTT, S.A. DE C.V. (known as the <B>ROYALTY HOLDER</B>)
and MINERA PE&#209;ASQUITO, S.A. DE C.V. (known as the <B>ROYALTY PAYOR</B>), over
mining concessions mentioned in paragraph c) in the Declarations of MINERA
KENNCOTT, S.A. DE C.V. in the aforementioned Contract, in which KENNECOTT,
S.A. DE C.V. has a right to a royalty equivalent to 2% (two percent), in
accordance with the <B>SECOND </B>Clause of the aforementioned Contract over
smelter returns (the &#147;<B>NET SMELTER RETURN ROYALTY</B>&#148;) in <B>THE LAND</B>, paid by
MINERA PE&#209;ASQUITO, S.A. DE C.V.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>1.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>RSLNSF</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET SMELTER RETURN ROYALTY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:41px; text-indent:-21px"><B>1.1 </B>Es la valuntad de las partes que la <B>RSLNSF</B>
establecida m&#225;s
adelante en este documento, se calcular&#225; en base al valor determinado
dentro de las colindancias de <B>LOS LOTES </B>de los productos minerales
producidos y vendidos, o considerados como vendidos, calculado en
base a los precios publicados para plata, oro y cobre refinados o en
base a los ingresos reales de ventas por otros productos minerales,
como se define a continuaci&#243;n. El <B>TITULAR DE LA REGAL&#205;A </B>reconoce que
puede ser necesario o apropiado el procesar, tratar o mejorar
productos minerales producidos a partir de <B>LOS LOTES </B>antes de que
sean vendidos o se consideren como vendidos, y que para determinar el
valor de dichos productos dentro de las colindancias de <B>LOS LOTES</B>,
todos los costos realizados o que se consideren realizados por el
<B>DEUDOR DE LA REGAL&#205;A </B>despu&#233;s de que los productos minerales abandonen
<B>LOS LOTES </B>ser&#225;n deducidos de los ingresos recibidos, o que se
consideren haber sido recibidos por el <B>DEUDOR DE LA REGAL&#205;A</B>. La
obligaci&#243;n de pagar la <B>RSLNSF </B>se acumular&#225; tomando en base la
praducci&#243;n de metales refinados en favor de la cuenta del <B>DEUDOR DE
LA REGAL&#205;A </B>que satisfagan los requisitos de los precios especificos
publicados, o la venta m&#225;s pr&#243;xima de metales no refinados, minerales
comerciales, concentrados, minerales u otros productos minerales,
como se define m&#225;s adelante.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-21px"><B>1.1. </B>It is the intention of the <B>ROYALTY PAYOR </B>and the <B>ROYALTY HOLDER </B>that
the <B>NET SMELTER RETURN ROYALTY </B>hereinafter provided be based upon the
value at the boundary of <B>THE LAND </B>of the mineral products produced and
sold or deemed sold, determined by reference to published prices for
refined silver, gold and copper or the actual proceeds of sales for other
mineral products, all as hereinafter provided. <B>The ROYALTY HOLDER</B>
acknowledges it may be necessary or appropriate to process, treat or
upgrade mineral products off <B>THE LAND </B>before they are sold or deemed sold;
and that to determine the value of such mineral products within the
boundaries of <B>THE LAND</B>, all costs incurred or deemed incurred by the
<B>ROYALTY PAYOR </B>after the mineral products leave the <B>THE LAND </B>shall be
deducted from the proceeds received or deemed to be received by the
<B>ROYALTY PAYOR.</B> The obligation to pay the <B>NET SMELTER RETURN ROYALTY </B>shall
accrue upon the outturn of refined metals meeting the requirements of the
specified published price to the <B>ROYALTY PAYOR</B>&#146;s account or the sooner
sale of unrefined metals, dore, concentrates, ores or other mineral
products, as hereinafter provided.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:41px; text-indent:-21px"><B>1.2 El DEUDOR DE LA REGAL&#205;A </B>deber&#225; pagar
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-21px"><B>1.2. </B>The <B>ROYALTY PAYOR </B>shall pay to the</DIV></TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:41px; text-indent:-0px">al <B>TITULAR DE LA REGAL&#205;A</B>,
una <B>RSLNSF </B>equivalente al 2 % (dos par ciento), de conformidad con la
Clausula <B>SEGUNDA </B>del Cantrato al que se anexa eI presente documento,
del Valor Neto de todos los minerales, metales y materiales extra&#237;dos
y obtenidos dentro del perimetro de <B>LOS LOTES </B>que sean vendidos, a
que se consideren como vendidos, por o para el <B>DEUDOR DE LA REGAL&#205;A</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-0px"><B>ROYALTY HOLDER </B>a <B>NET SMELTER
RETURN ROYALTY </B>equal to 2% (two percent), in accordance with the <B>SECOND</B>
Clause of the Contract, of which this anex is part, of the Net Value of
all ores, minerals, metals and materials mined and removed from <B>THE LAND</B>
and sold or deemed to have been sold by or for the <B>ROYALTY PAYOR</B>.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:40px; text-indent:-24px"><B>1.3 </B>Para efectos del presente Anexo, se entender&#225; por
Valor Neto, eI
Valor Bruto de dichos minerales met&#225;licos, minerales, metales a
materiales, deduciendo todos los costos, cargos y gastos pagados o
incurridos por el <B>DEUDOR DE LA REGAL&#205;A </B>con respecto a dichos
productos pagados o que se consideren incurridos por el <B>DEUDOR DE LA
REGAL&#205;A</B>, despu&#233;s de que dichos productos abandonen <B>LOS LOTES</B>,
incluyendo los siguientes, descritos en forma enunciativa m&#225;s no
limitativa:</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-24px"><B>1.3.</B> As used herein, &#147;Net Value&#148; means the Gross Value of such ores,
minerals, metals or materials, less all costs, charges and expenses paid
or incurred by the <B>ROYALTY PAYOR </B>with respect to such products paid or
deemed incurred by the <B>ROYALTY PAYOR </B>after such products leave <B>THE LAND</B>,
including, but not limited to:</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.1 </B>&nbsp;Cargos por tratamiento en at proceso de fundici&#243;n y
refinaci&#243;n (Incluyenda los costos por el manejo,
procesamiento, intereses y cuotas provisionales de
liquidaci&#243;n, muestreos, ensayes y gastos de representaci&#243;n
as&#237; como castigos y cualesquiera otras deducciones
atribuibles a su procesamiento).</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.1. </B>&nbsp;Charges for treatment in the smelting and refining process
(including handling, processing, interest and provisional settlement fees,
sampling, assaying and representation costs, penalties and other process
deductions);</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.2 </B>&nbsp;Costos reales de transportaci&#243;n (Incluyendo fletes,
seguro, vigilancia, impuestos por operaci&#243;n, manejo,
almacenaje, retrasos y gastos subsecuentes que sean
incurridos par raz&#243;n de o en el transcurso de dicha
transportaci&#243;n) de minerales comerciales, concentrados u
otros productos, desde LOS LOTES al lugar de tratamiento y,
posteriormente, al lugar de venta;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.2. </B>&nbsp;Actual costs of transportation (including freight, insurance,
security, transaction taxes, handling, port, demurrage, delay and
forwarding expenses incurred by reason of or in the course of such
transportation) of ores, minerals, concentrates or other products from <B>THE
LAND </B>to the place of treatment and then to the place of sale;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.3 </B>&nbsp;Costos reales de venta y correduria relacionados con
los minerales comerciales crudos y otros minerales para los
cuales se debe calcular la <B>RSLNSF </B>en base a los ingresos
recibidos por el <B>TITULAR DE LA REGAL&#205;A</B>, como se establece
en los subincisos 1.4.4 y 1.4.5 siguientes y, una cantidad
fija por los costos razanables de ventas y costos por
corredur&#237;a por metales refinados objeto de la <B>RSLNSF</B>,
establecidos en los subincisos 1.4.1, 1.4.2 y 1.4.3
siguientes; y</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"> <B>1.3.3. </B>&nbsp;Actual sales and brokerage costs on raw commercial ores and other
minerals for which the <B>NET SMELTER RETURN ROYALTY </B>is based on proceeds
received by the <B>ROYALTY HOLDER </B>as hereinafter provided in subsections
1.4.4 and 1.4.5 below, and a fixed allowance for reasonable sales and
brokerage costs for refined metals subject to the <B>NET SMELTER RETURN
ROYALTY </B>hereinafter provided in subsections 1.4.1, 1.4.2 and 1.4.3 below;
and</DIV></TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.4 </B>&nbsp;Impuestos sobre producci&#243;n de minerales, venta, uso,
finiquito e impuestos ad valorem, as&#237; como cualquier otro
impuesto calculado en base a la producci&#243;n de minerales.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.3.4. </B>&nbsp;Taxes over the production of minerals, their sale, use, severance,
and ad valorem taxes, and any other tax on or measured by mineral
production.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:41px; text-indent:-21px"><B>1.4 </B>Para efectos de lo se&#241;alado en este Anexo, el t&#233;rmino &#147;Valor
Bruto&#148; tendr&#225; los siguientes significados para las siguientes
categorias de metales, productos minerales y minerales producidos y
vendidos por el <B>DEUDOR DE LA REGAL&#205;A</B>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-21px"><B>1.4. </B>&#147;Gross Value&#148; shall have the following meanings in this Annex for the
following categories of metals, minerals products and minerals produced
and sold by the <B>ROYALTY PAYOR</B>:</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.1 </B>&nbsp;Si el <B>DEUDOR DE LA REGAL&#205;A </B>logra producir oro
refinado (Cumpliendo las especificaciones de la London
Bullion Market Association) extraido de minerales
procedentes de <B>LOS LOTES</B>, para efectos de determinar la
<B>RSLNSF</B>, el oro refinado ser&#225; considerado como vendido al
Precio Promedio Mensual del Oro para el mes en que se
hubiera producido, y el Valor Bruto se determinar&#225;
multiplicando la Producci&#243;n de Oro durante el mes
calendario de que se trate, por el Precio Promedio Mensual
del Oro. Para los efectos del presente Anexo, se entiende
por &#147;Producci&#243;n de Oro&#148;, la cantidad de oro refinado
producido en favor de la cuenta del <B>DEUDOR DE LA REGAL&#205;A</B>
por una fundici&#243;n o refiner&#237;a independiente, a partir del
oro producido en <B>LOS LOTES </B>durante el mes calendario de que
se trate, ya sea en base a las Iiquidaciones provisionales
o finales. Asimismo, se entender&#225; por &#147;Precio Premedio
Mensual del Oro&#148;, el promedio del precio establecido por la
London Bullion Market Association P.M. Gold Fix, calculado
al dividir la suma de dichos precios reportados para el mes
calendario de que se trate, entre el n&#250;mero de d&#237;as para
los que dichos precios fueron reportados.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.1. </B>&nbsp;If the <B>ROYALTY PAYOR </B>causes refined gold (meeting the
specifications of the London Bullion Market Association) to be produced
from ores mined from <B>THE LAND</B>, for purposes of determining the <B>NET SMELTER
RETURN ROYALTY </B>the refined gold shall be deemed to have been sold at the
Monthly Average Gold Price for the month in which it was produced, and the
Gross Value shall be determined by multiplying Gold Production during the
calendar month by Monthly Average Gold Price. As used herein, &#147;Gold
Production&#148; shall mean the quantity of refined gold outturned to the
<B>ROYALTY PAYOR&#146;s </B>pool account by an independent third-party refinery for
gold produced from <B>THE LAND </B>during the calendar month on either a
provisional or final settlement basis. As used herein, &#147;Monthly Average
Gold Price&#148; shall mean the average London Bullion Market Association P.M.
Gold Fix, calculated by dividing the sum of all such prices reported for
the month by the number of days for which such prices were reported.</DIV></TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.2 </B>&nbsp;Si el <B>DEUDOR DE LA REGAL&#205;A </B>logra producir plata
refinada (Cumpliendo las especificaciones para la plata
refinada objeta del Precio de la Plata de Nueva York
publicado por Handy &#038; Harman) extra&#237;da a partir de
minerales procedentes de <B>LOS LOTES</B>, para efectos de
determinar la <B>RSLNSF</B>, la plate refinada se
considerar&#225; como</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.2. </B>&nbsp;If the <B>ROYALTY PAYOR </B>causes refined silver (meeting the
specifications for refined silver subject to the New York Silver Price
published by Handy &#038; Harman) to be produced from ore mined from <B>THE LAND</B>,
for purposes of determining the <B>NET SMELTER RETURN ROYALTY </B>the refined
silver shall be deemed to have been sold at the Monthly Average Silver</DIV></TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-0px">vendida al Precio Promedio Mensual de la Plata para el mes
en que fue producida, y el Valor Bruto se determinar&#225;
multiplicando la Producci&#243;n de Plata durante el mes
calendario por el Precio Promedio Mensual de la Plata.
Como &#147;Producci&#243;n de Plata&#148; se entiende la cantidad de plata
refinada producida en favor de la cuenta del <B>DEUDOR DE LA
REGAL&#205;A </B>por una fundici&#243;n a refiner&#237;a independiente, a
partir de la plata producida en <B>LOS LOTES </B>durante el mes
calendario de que se trate, ya sea en una base a las
Iiquidaciones provisionales o finales. Como &#147;Precio
Promedio Mensual de la Plata&#148; se entiende el promedio del
precio establecido por el New York Silver Price publicado
diariamente por Handy &#038; Herman, calculado al dividir la
suma de dichos precios reportados para el mes calendario de
que se trate, entre el n&#250;mero de d&#237;as para los que dichos
precios fueron reportados.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-0px">Price for the month in which it was produced, and the Gross Value shall be
determined by multiplying Silver Production during the calendar month by
the Monthly Average Silver Price. As used herein, Silver Production shall
mean the quantity of refined silver outturned to the <B>ROYALTY PAYOR&#146;s </B>pool
account by an independent third-party refinery for silver produced from
<B>THE LAND </B>during the calendar month on either a provisional or final
settlement basis. As used herein, &#147;Monthly Average Silver Price&#148; shall
mean the average New York Silver Price as published daily by Handy &#038;
Harman, calculated by dividing the sum of all such prices reported for the
calendar month by the number of days for which such prices were reported.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.3 </B>&nbsp;Si el <B>DEUDOR DE LA REGAL&#205;A </B>logra producir cobre
refinado (Cumpliendo las especificaciones para el cobre
refinado sujeto al Precio Comex de Nueva York) que vaya a
ser producido a partir de los minerales extra&#237;das de <B>LOS
LOTES</B>, para los efectos de determinar la <B>RSLNSF</B>, el cobre
refinado se considerar&#225; vendido al Precio Promedio Mensual
del Cobre para el mes en que hubiera sido producido, y el
Valor Bruto se determinar&#225; multiplicando la Producci&#243;n de
Cobre durante el mes calendario de que se trate, por el
Precio Promedio Mensual del Cobre. Por &#147;Producci&#243;n de
Cobre&#148; se entiende la cantidad de cobre refinado producido
en favor de la cuenta del <B>DEUDOR DE LA REGAL&#205;A </B>por una
fundici&#243;n de cobre independiente, producida a partir del
cobre producido en <B>LOS LOTES</B>, durante el mes calendario de
que se trate, ya sea en base a liquidaciones provisionales
o finales. Para efectos del presente Anexo se entiende por
&#147;Precio Promedio Mensual del Cobre&#148;, el promedio del precio
establecido por el New York Commodities Exchange Price para
cobre de alta ley, publicado diariamente en el Wall Street
Journal, calculado al dividir la suma de dichos precios
reportados para el mes calendario de que se trate, entre eI
n&#250;mero de d&#237;as para los que dichos precios fueron
reportados.</DIV>
</DIV></TD>


    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.3. </B>&nbsp;If the <B>ROYALTY PAYOR </B>causes refined copper (meeting the
specifications for refined copper subject to the New York Comex Price) to
be produced from ore mined from <B>THE LAND</B>, for the purposes of determining
the <B>NET SMELTER RETURN ROYALTY </B>the refined copper shall be deemed to have
been sold at the Monthly Average Copper Price for the month in which it
was produced, and the Gross Value shall be determined by multiplying
Copper Production during the calendar month by the Monthly Average Copper
Price. As used herein Copper Production shall mean the quantity of
refined copper outturned to the <B>ROYALTY PAYOR&#146;s </B>pool account by an
independent third party smelter for copper produced from <B>THE LAND </B>during
the calendar month on either a provisional or final settlement basis. As
used herein, Monthly Average Copper Price shall mean the average New York
Commodities Exchange Price for high grade copper as published daily in the
Wall Street Journal, calculated by dividing the sum of all such prices
reported for the calendar month by the number of days for which such
prices were reported.</div></TD>
</TR>
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</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.4 </B>&nbsp;Si el <B>DEUDOR DE LA REGAL&#205;A </B>logra producir metales
refinados o procesados diferentes del oro y plata refinados
a partir de minerales extra&#237;dos de <B>LOS LOTES</B>, el Valor
Bruto deber&#225; ser igual a la cantidad de ingresos
efectivamente recibidos por el <B>DEUDOR DE LA REGAL&#205;A </B>durante
el mes calendario de la venta de dichos metales refinados o
procesados.</DIV></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.4. </B>&nbsp;If the <B>ROYALTY PAYOR </B>causes refined or processed metals other than
refined gold and refined silver to be produced from ores mined from <B>THE
LAND</B>, the Gross Value shall be equal to the amount of the proceeds
actually received by the <B>ROYALTY PAYOR </B>during the calendar month from the
sale of such refined or processed metals.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.5 </B>&nbsp;En caso de que el <B>DEUDOR DE LA REGAL&#205;A </B>logre vender
minerales no procesados, dor&#233; o concentrados producidos de
minerales extra&#237;dos de <B>LOS LOTES</B>, entonces eI Valor Bruto
deber&#225; ser igual a la cantidad de ingresos recibidos por el
<B>DEUDOR DE LA REGAL&#205;A </B>durante el mes calendario de la venta
de dichos minerales met&#225;licos en bruto, dor&#233;, concentrados
o metales refinados.</DIV></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.5. </B>&nbsp;In the event that the <B>ROYALTY PAYOR </B>sells raw ores, or dore or
concentrates produced from ores mined from <B>THE LAND</B>, then the Gross Value
shall be equal to the amount of the proceeds actually received by the
<B>ROYALTY PAYOR </B>during the calendar month from the sale of such raw ore,
dore, concentrates or refined metal.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.6 </B>&nbsp;Cuando la producci&#243;n de metales refinados sea
efectuada por una refineria o fundici&#243;n independiente en
forma provisional, el Valor Bruto se basar&#225; en la
liquidaci&#243;n provisional, pero deber&#225; ajustarse en las
liquidaciones subsecuentes para completar el total del
mineral refinado que dicha refineria o fundici&#243;n establezca
en la liquidaci&#243;n final.</DIV></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.6. </B>&nbsp;Where outturn of refined metals is made by an independent third
party refinery on a provisional basis, the Gross Value shall be based upon
the amount of such provisional settlement, but shall be adjusted in
subsequent statements to account for the amount of refined metal
established by final settlement by such refinery.</DIV></TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.7 </B>&nbsp;El <B>DEUDOR DE LA REGAL&#205;A </B>acepta que eI prep&#243;sito de
los subincisos 1.4.1, 1.4.2 y 1.4.3 anteriores es el de
pagar al <B>TITULAR DE LA REGAL&#205;A </B>la <B>RSLNSF</B>, teniendo como
base el valor del oro, plata y cobre refinados producidos a
partir de minerales extra&#237;dos de <B>LOS LOTES</B>, de acuerdo con
el London Bullion Market Association P.M. Gold Fix para el
oro, el New York Silver Price publicado por Handy &#038; Harman
para la plata y el New York Commodities Exchange Price para
cobre de alta ley publicado por Comex para eI cobre, sin
importar el precio o ingresos recibidos efectivamente por
el <B>DEUDOR DE LA REGAL&#205;A</B>, por o en relaci&#243;n a dichos
metales, o la forma en que se lleve a cabo la venta del
metal</DIV></DIV></TD>


    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.7. </B>&nbsp;The <B>ROYALTY HOLDER </B>acknowledges that the purpose of subsections
1.4.1, 1.4.2 and 1.4.3 above is to pay the <B>ROYALTY HOLDER </B>a <B>NET SMELTER
RETURN ROYALTY </B>on the basis of value of the refined gold, silver and
copper produced from minerals mined from <B>THE LAND </B>as established by the
London Bullion Market Association P.M. Gold Fix for gold, the New York
Silver Price as published by Handy &#038; Harman for silver and the New York
High Grade Copper Price as published by Comex, regardless of the price or
proceeds actually received by the <B>ROYALTY PAYOR </B>for or in connection with
such metal or the manner in which a sale of refined metal to a third party
is made by the <B>ROYALTY PAYOR</B>. The <B>ROYALTY HOLDER </B>further</DIV></TD>
</TR>
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</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-0px">refinado, por parte del <B>DEUDOR DE LA REGAL&#205;A </B>a un
tercero. El <B>TITULAR DE LA REGAL&#205;A </B>acepta que el <B>DEUDOR DE
LA REGAL&#205;A </B>tendr&#225; el derecho a comercializar y vender, o
abstenerse de vender oro, plata, cobre refinados y otros
metales producidos a partir de <B>LOS LOTES</B>, en cualquiera
manera que elija, y que el <B>DEUDOR DE LA REGAL&#205;A </B>tendr&#225; el
derecho de comprometerse en ventas anticipadas, a futuro u
opciones de comercializaci&#243;n, y otras medidas
compensatorias o protectoras de precios, y acuerdos
especulativos (En lo sucesivo &#147;Actividades de Comercio&#148;)
que pueden implicar la posible entrega de oro, plata, cobre
y otros metales producidos a partir de <B>LOS LOTES</B>. El
<B>TITULAR DE LA REGAL&#205;A </B>espec&#237;ficamente reconoce y acepta que
no estar&#225; facultado para participar en los ingresos ni
estar&#225; obligado a compartir cualesquier p&#233;rdida generada
por las pr&#225;cticas de mercado o de ventas llevadas a cabo
por el <B>DEUDOR DE LA REGAL&#205;A </B>o por sus Actividades de
Comercio.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-0px">acknowledges that
the <B>ROYALTY PAYOR </B>shall have the right to market and sell or refrain from
selling refined gold, silver, copper and other metals produced from <B>THE
LAND </B>in any manner it may elect, and that the <B>ROYALTY PAYOR </B>shall have the
right to engage in forward sales, future trading or commodity options
trading, and other price hedging, price protection, and speculative
arrangements (&#147;Trading Activities&#148;) which may involve the possible
delivery of gold, silver, copper or other metals produced from <B>THE LAND</B>.
The <B>ROYALTY HOLDER </B>specifically acknowledges and agrees that the <B>ROYALTY
HOLDER </B>shall not be entitled to participate in the proceeds or be
obligated to share in any losses generated by the <B>ROYALTY PAYOR&#146;s </B>actual
marketing or sales practices or by its Trading Activities.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.8 </B>&nbsp;El <B>DEUDOR DE LA REGAL&#205;A </B>podr&#225;, pero no estar&#225;
obligado, a beneficiar, tratar, clasificar, concentrar,
refinar, fundir o, de cualquier otra manera, procesar y
mejorar la calidad de los minerales, concentrados, y otros
productos minerales comerciales producidos de minerales
extra&#237;des a partir de <B>LOS LOTES</B>, con anterioridad a su
venta, transferencia o cesi&#243;n a un comprador, usuario o
consumidor diferente del <B>DEUDOR DE LA REGAL&#205;A</B>. El <B>DEUDOR DE
LA REGAL&#205;A </B>no ser&#225; responsable por las p&#233;rdidas de valores
minerales en dichos procesos realizados bajo pr&#225;cticas
aceptables.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.8. </B>&nbsp;The <B>ROYALTY PAYOR </B>may, but is not obligated to, beneficiate, mill,
sort, concentrate, refine, smelt, or otherwise process and upgrade the
ores, concentrates, and other mineral products produced from ores mined
from <B>THE LAND </B>prior to sale, transfer, or conveyance to a purchaser, user
or consumer other than the <B>ROYALTY PAYOR</B>. The <B>ROYALTY PAYOR </B>shall not be
liable for mineral values lost in such processing under sound practices.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.9 </B>&nbsp;El <B>DEUDOR DE LA REGAL&#205;A </B>tendr&#225; el derecho a vender a
<B>AFILIADOS </B>minerales procedentes de <B>LOS LOTES </B>en forma de
minerales no procesados, dor&#233; o concentrados, en el
entendido de que dichas ventas se considerar&#225;n, &#250;nicamente
para efectos de calcular el Valor Nete, como vendidas a
precios y en t&#233;rminos no menos favorables que aquellos que
se presentar&#237;an en circunstancias similares con un tercero
no afiliado.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-35px"><B>1.4.9. </B>&nbsp;The <B>ROYALTY PAYOR </B>shall be permitted to sell minerals from <B>THE LAND</B>
in the form of raw ore, dore, or concentrates to an affiliated party,
provided that such sales shall be considered, solely for the purpose of
computing Net Value, to have been sold at prices and on terms no less
favorable than those which would be extended to an unaffiliated third
party under similar circumstances.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-39px"><B>1.4.10 </B>&nbsp;Todos los minerales para los cuales se deba pagar la
<B>RSLNSF </B>deber&#225;n ser pesados o medidos por volumen y
analizados en concordancia con las pr&#225;cticas aceptables en
la industria minero-metal&#250;rgica. Despu&#233;s de dichas
mediciones, el <B>DEUDOR DE LA REGAL&#205;A </B>podr&#225; mezclar o
combinar dichos minerales, materiales o productos con
minerales, materiales o productos de otras propiedades.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-39px"><B>1.4.10. </B>&nbsp;All minerals for which a <B>NET SMELTER RETURN ROYALTY </B>is payable
shall be weighed or measured, sampled and analyzed in accordance with
sound mining and metallurgical practices. After such measurement, the
<B>ROYALTY PAYOR </B>may mix or commingle such minerals, materials or products
with ores, materials or products from other <B>THE LAND</B>.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:70px; text-indent:-39px"><B>1.4.11 </B>&nbsp;Los pagos relacianados con la <B>RSLNSF </B>tendr&#225;n
vencimiento y ser&#225;n liquidados en pagos trimestrales a m&#225;s
tardar el &#250;ltimo d&#237;a natural del mes siguiente de cada
trimestre que se trate. Estos pagos deber&#225;n acampa&#241;arse de
los comprobantes que demuestren a detalle y claramente la
cantidad y calidad de los metales refinados, dor&#233;,
concentrados, u otros productos minerales producidos y
vendidos, o considerados como vendidos, por el <B>DEUDOR DE LA
REGAL&#205;A</B>, por el trimestre precedente; el precio promedio
mensual determinado en la forma anteriormente establecida
para los metales refinados por los que se debe pagar la
<B>RSLNSF</B>; los ingresos de ventas de otros productos minerales
por los que se deba dicha regal&#237;a; costos y otros
deducciones; y dem&#225;s informaci&#243;n pertinente con el detalle
suficiente para explicar la manera en que se calcul&#243; el
pago de la <B>RSLNSF</B>.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:70px; text-indent:-39px"><B>1.4.11. &nbsp;NET SMELTER RETURN ROYALTIES </B>shall become due and payable
quarterly on the last day of each month following the last day of the
calendar quarter in which the same accrued. <B>NET SMELTER RETURN ROYALTY</B>
payments shall be accompanied by a statement showing in reasonable detail
the quantities and grades of the refined metals, dore, concentrates, or
other mineral products produced and sold or deemed sold by the <B>ROYALTY
PAYOR </B>in the preceding calendar quarter; the average monthly price
determined as herein provided for refined metals on which the <B>NET SMELTER
RETURN ROYALTY </B>is due; the proceeds of sale for other mineral products on
which the royalty is due; costs, and other deductions; and other pertinent
information in sufficient detail to explain the calculation of the <B>NET
SMELTER RETURN ROYALTY </B>payment.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:21px; text-indent:-0px">Dichos reportes trimestrales deber&#225;n tambi&#233;n enumerar la cantidad y
calidad de cualquier dor&#233; de oro, plata, a c&#225;todo de cobre que haya
sido retenido en inventario por m&#225;s de 60 (Sesenta) d&#237;as naturales.
El <B>TITULAR DE LA REGAL&#205;A </B>tendr&#225; 15 (Quince) d&#237;as naturales despu&#233;s
de la recepci&#243;n de cada reporte trimestral para: (i)&nbsp;solicitar que
eI dor&#233; se considere vendido en ese decimoquinto d&#237;a natural, como
se establece en los subincisos 1.4.1 y 1.4.2 anteriores, en en base
al peso y ley calculados en la mina para dicho dor&#233;, y utilizando
un cargo previsto por todas las deducciones que se especifican en
los subincisos 1.1 y 1.3 anteriores, los cuales deber&#225;n basarse en
los cargos m&#225;s recientes hechos al <B>DEUDOR DE LA REGAL&#205;A </B>por dichos
servicios por un tercero no afiliado, o (ii)&nbsp;elegir esperar hasta
el momento en que el oro o la plata refinada de dicho dor&#233; a c&#225;todo
de cobre sea efectivamente entregado al <B>DEUDOR DE LA REGAL&#205;A</B>, o
dicho dor&#233; sea vendido por el
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-0px">Such quarterly statements shall also list the quantity and quality of any
gold and silver dore, or copper cathode which has been retained as
inventory for more than sixty (60)&nbsp;days. The <B>ROYALTY HOLDER </B>shall have
fifteen (15)&nbsp;days after receipt of the statement to either (1)&nbsp;request
that the dore be deemed sold as provided in subsections 1.4.1 and 1.4.2
above as of such fifteenth day utilizing the mine weights and assays for
such dore and utilizing a deemed charge for all deductions specified in
subsections 1.1 and 1.3 above which shall be based upon the most recent
charges to the <B>ROYALTY PAYOR </B>for such services by an unaffiliated third
party, or (2)&nbsp;elect to wait until the time that refined gold or silver
from such dore or copper cathode is actually outturned to the <B>ROYALTY
PAYOR </B>or such dore is sooner sold by the <B>ROYALTY PAYOR</B>. The failure of
the <B>ROYALTY HOLDER </B>to respond within such time shall be deemed to be an
election under (2)&nbsp;above. No royalty shall be due with respect to
stockpiles of ores or</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="margin-left:21px; text-indent:-0px"><B>DEUDOR DE LA REGAL&#205;A</B>. El
incumplimiento por parte del <B>TITULAR DE LA REGAL&#205;A </B>para responder
dentro de dicho plazo se considerar&#225; como una elecci&#243;n en los
t&#233;rminos del inciso (ii)&nbsp;anterior. No se deber&#225; ninguna regal&#237;a con
respecto a los inventarios de minerales o concentrados a menos y
hasta que dichos mineralos o concentrados sean efectivamente
vendidos.</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-0px">concentrates unless and until such ores or
concentrates are actually sold.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Todas los pagos relacionados con la <B>RSLNSF </B>se considerar&#225;n finales y en
pleno cumplimiento de todas las obligaciones del <B>DEUDOR DE LA REGAL&#205;A </B>con
respecto a las mismas, a menos que el <B>TITULAR DE LA REGAL&#205;A </B>proporcione al
<B>DEUDOR DE LA REGAL&#205;A </B>una notificaci&#243;n por escrito describiendo y
estableciendo una objeci&#243;n espec&#237;fica a los c&#225;lculos de las mismas dentro
de los 120 (Ciento veinte) d&#237;as naturales despu&#233;s de que el <B>TITULAR DE LA
REGAL&#205;A </B>hubiesen recibido el reporte trimestral antes mencionado. Si el
<B>TITULAR DE LA REGAL&#205;A </B>objeta un reporte trimestrel en particular, de
acuerde a lo establecido anteriormente, el <B>TITULAR DE LA REGAL&#205;A</B>, por un
per&#237;odo de 30 (Treinta) d&#237;as naturales despu&#233;s de la recepci&#243;n de la
notificaci&#243;n por parte del <B>DEUDOR DE LA REGAL&#205;A </B>de dicha objeci&#243;n, tendr&#225;
el derecho en y durante un tiempo razonable, para tener acceso a los
libros del <B>DEUDOR DE LA REGAL&#205;A</B>, y a los registros relacionados con el
c&#225;lculo del reporte de la regal&#237;a en cuesti&#243;n, y auditar mediante un
contador p&#250;blico titulado aprobado por el <B>TITULAR DE LA REGAL&#205;A </B>y por <B>el
DEUDOR DE LA REGAL&#205;A</B>. Si en dicha auditoria se determina que ha habido una
deficiencia o un excedente en el pago efectuado al <B>TITULAR DE LA REGAL&#205;A</B>,
dicha deficiencia o excedente deber&#225; compensarse ajustando el pago
correspondiente en eI siguiente trimestre en que haya que pagarse la
<B>RSLNSF</B>, conforme a los t&#233;rminos establecidos en el presente Anexo. El
<B>TITULAR DE LA REGAL&#205;A </B>pagar&#225; los gastos incurridos por dicha auditoria, a
menos que se determine una deficiencia del 5% (Cinco por ciento) o m&#225;s,
con respecto de la cantidad que deb&#237;a haber sido pagada. El <B>DEUDOR DE LA
REGAL&#205;A </B>deber&#225; pagar los gastos de dicha auditoria si se determina la
existencia de una deficiencia del 5% (Cinco por ciento o m&#225;s, respecto de
la cantidad que debi&#243; haber sido pagada. Todos las libros y registros en
pleados por el <B>DEUDOR DE LA REGAL&#205;A </B>para calcular las regal&#237;as pagaderas
bajo los terminos aqui establecidos, as&#237; como los pagos de dichas
regal&#237;as, se mantendr&#225;n conforme a los principios de contabilidad
generalmente aceptados. La falta de objeci&#243;n por parte del <B>TITULAR DE LA
REGAL&#205;A </B>hacia el <B>DEUDOR DE LA REGAL&#205;A </B>en relaci&#243;n a ajustes en los pagos
de regal&#237;as dentro del per&#237;odo de los 120 (Ciento veinte) d&#237;as naturales
antes mencionados, dar&#225; lugar, a partir de ese momento, a la prescripci&#243;n
del derecho para establecer excepciones o reclamaciones en relaci&#243;n a
ajustes a los pagos de que se trate.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All <B>NET SMELTER RETURN ROYALTY </B>payments shall be considered final and in
full satisfaction of all obligations of the <B>ROYALTY PAYOR </B>with respect
thereto, unless the <B>ROYALTY HOLDER </B>gives the <B>ROYALTY PAYOR </B>written notice
describing and setting forth a specific objection to the calculation
thereof within one hundred twenty (120)&nbsp;days after receipt by the <B>ROYALTY
HOLDER </B>of the quarterly statement herein provided for. If the <B>ROYALTY
HOLDER </B>objects to a particular quarterly statement as herein provided, the
<B>ROYALTY HOLDER </B>shall, for a period of thirty (30)&nbsp;days after the <B>ROYALTY
PAYOR&#146;s </B>receipt of notice of such objection, have the right, upon
reasonable notice and at a reasonable time, to have the <B>ROYALTY PAYOR&#146;s</B>
accounts and records relating to the calculation of the Situation Royalty
in question audited by a certified public accountant acceptable to the
<B>ROYALTY HOLDER </B>and to the <B>ROYALTY PAYOR</B>. If such audit determines that
there has been a deficiency or an excess in the payment made to the
<B>ROYALTY HOLDER </B>such deficiency or excess shall be resolved by adjusting
the next quarterly <B>NET SMELTER RETURN ROYALTY </B>payment due hereunder. The
<B>ROYALTY HOLDER </B>shall pay all costs of such audit unless a deficiency of 5%
(five percent) or more of the amount due is determined to exist. The
<B>ROYALTY PAYOR </B>shall pay the costs of such audit if a deficiency of five
percent or more of the amount due is determined to exist. All books and
records used by the <B>ROYALTY PAYOR </B>to calculate royalties due hereunder
shall Royalty payment due hereunder shall be kept in accordance with
generally accepted accounting principles. Failure on the part of the
<B>ROYALTY HOLDER </B>to make claim on the <B>ROYALTY PAYOR </B>for adjustment in such
120 (one-hundred twenty) &#151; day period shall establish the correctness and
preclude the filing of exceptions thereto or making of claims for
adjustment thereon.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 8<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>GENERALES.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" nowrap valign="top" align="left"><B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>GENERALITIES.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.1</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A menos de que se especifique de otra forma, los t&#233;rminos en
may&#250;scula en este Anexo tendr&#225;n los mismos significados establecidos
en el Contrato al que pertenece.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.1</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unless specified in another form, the capitalized terms in this Annex
shall have the same meaning established in the Contract to which it
pertains.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.2</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">El derecho a la <B>RSLNSF </B>continuar&#225;, a&#250;n y cuando se lleve a cabo
cualesquier modificaci&#243;n a cualquiera de las concesiones mineras con
respecto a <B>LOS LOTES</B>, incluyendo las elevaciones a explotaci&#243;n,
pr&#243;rrogas de vigencia, o extensiones de &#233;stas, pero sin incluir los
terrenos abandonados por las reducciones de superficie y
desistimientos autorizados de <B>LOS LOTES</B>. Esta regal&#237;a sobre estas
concesiones ser&#225; parte de &#233;stas y ser&#225; aplicable a cualquier persona
fisica o moral que explote y comercialice productos minerales
procedentes de estas concesiones.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.2</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The right to the <B>NET SMELTER RETURN ROYALTY </B>shall continue despite any
modification to any of the mining concessions with respect to <B>THE LAND</B>,
including the elevation to exploitation, reductions, and unifications,
delays to maturity or extensions. This royalty shall be part of <B>THE LAND</B>
and will apply to any legal entity that exploits and commercializes
mineral products deriving from the same, which, in the event that
<B>PE&#209;ASQUITO </B>assigns its obligations to a third party, it will notify
<B>KENNECOTT </B>in addition to agreeing to immediately inscribe such a document
in the <B>REGISTRY</B>, while bearing the cost.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.3</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Todas las comunicaciones que se hagan las partes con relaci&#243;n a
este Anexo ser&#225;n conforme a lo establecido en la Cl&#225;usula <B>NOVENA </B>del
Contrato al que pertenece este documento.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.3</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All of the communications made between the parties with respect to
this Annex shall be in accordance with the terms set forth in the <B>NINTH</B>
Clause of the Contract to which this document pertains.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 8pt">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;KENNECOTT&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#147;PE&#209;ASQUITO&#148;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#147;KENNECOTT&#148;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#147;PE&#209;ASQUITO&#148;</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MINERA KENNECOTT, S.A. DE C.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, S.A. DE C.V.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA KENNECOTT, S.A. DE C.V.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, S.A. DE C.V.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dave F. Simpson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lic. Jos&#233; Mar&#237;a Gallardo Tamayo
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dave F. Simpson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lic. Jos&#233; Mar&#237;a Gallardo Tamayo</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Representante Legal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representante Legal
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Representative
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Representative</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>RATIFICACI&#211;N</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>CONFIRMATION</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ACTA NUMERO: 1,421 MIL CUATROCIENTOS VEINTIUNO.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DEED NUMBER: 1,421 ONE-THOUSAND FOUR-HUNDRED TWENTY-ONE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LIBRO DE REGISTRO DE ACTAS Y P&#211;LIZAS.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BOOK OF REGISTERY FOR DEEDS AND POLICIES</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;En la ciudad de Guadalajara, Jalisca a
los 29 veintinueve d&#237;as de Octubre de
1999 mil novecientos noventa y nueve
ante m&#237; Licenciado Diego Robles Farias,
Corredor P&#250;blico n&#250;mero veinte de la
Plaza Jalisco, comparecieron:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the city of Guadalajara, Jalisco on 29 twenty-nine
days of October of 1999, nineteen hundred and
ninety-nine, before me, the attorney, Diego Robles
Farias, Public Agent number twenty of Plaza Jalisco,
made an appearance:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.- Por una parte el se&#241;or DAVE FRANK
SIMPSON KRIEDERS en representaci&#243;n de
la empresa &#147;MINERA KENNECOTT&#148;, SOCIEDAD
AN&#211;NIMA DE CAPITAL VARIABLE, como
Cedente.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.- On behalf of one of the parties, Mr.&nbsp;DAVE FRANK
SIMPSON KRIEDERS as representative of the company
&#147;MINERA KENNECOTT,&#148; CORPORATION WITH VARIABLE CAPITAL,
as the Assignor.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.- Por otra parte el Licenciado JOS&#201;
MAR&#205;A GALLARDO TAMAYO en representaci&#243;n
de la empresa &#147;MINERA PE&#209;ASQUITO&#148;,
SOCIEDAD AN&#211;NIMA DE CAPITAL VARIABLE en
calidad de cesionaria del contrato de
Cesi&#243;n de Derechos que antecede a la
presente.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &#150; On behalf of the other party, JOS&#201; MAR&#205;A GALLARDO
TAMAYO as representative of the company &#147;MINERA
PE&#209;ASQUITO,&#148; CORPORATION WITH VARIABLE CAPITAL appearing
as the assignee of the preceding Contract for Assignment
of Rights</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.- Que para todos los efectos legales
a que haya Iugar, ratifican en este
acto el contenido del contrato de
cesi&#243;n de Derechos que antecede, por
ser la fiel expresi&#243;n de sus
voluntades.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. To give legal effect to the terms of the contract,
the representatives hereby certify that the terms are
accurate and that they voluntarily consent to the terms
of the preceding Contract for Assignment of Rights.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.- Que reconocen como suyas las
firmas que lo calzan, por haber sido
puestas de su pu&#241;o y letra y ser las
mismas que usan en todos sus asuntos y
negocios.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. &#150; They verify that the signatures given by their
hand and writing are the same signatures used in all of
their business and transactions.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III.- Los se&#241;ores <B>DAVE FRANK SIMPSON
KRIEDERS y JOS&#201; MAR&#205;A GALLARDO TAMAYO</B>,
declaran que sus representadas tienen
capacidad legal y que la representaci&#243;n
que ostentan no les ha sido revocada ni
limitada, encontr&#225;ndose vigente a la
fecha de la presente ratificaci&#243;n.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. &#150; Misters <B>DAVE FRANK SIMPSON KRIEDERS </B>and <B>JOSE
MARIA GALLARDO TAMAYO </B>declare that their clients have
legal capacity and that their representation of these
clients and the authority bestowed upon them by these
clients has not been revoked nor limited, and that their
authority is valid on the date of this ratification.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>POR LO ANTES EXPUESTO, EL CORREDOR QUE SUSCRIBE DOY
FE:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ACCORDING TO THE AFOREMENTIONED DECLARATIONS, THE
SUBSCRIBING AGENT CERTIFIES:</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PRIMERO.- </B>De que conozco a los
comparecientes, a quienes concept&#250;o con
capacidad legal para contratar y
obligarse, pues no encuentro en ellos
manifestaciones evidentes de
incapacidad ni he tenido noticias de
que est&#233;n sujetos a interdicci&#243;n; y
quienes adem&#225;s se identificaron con los
documentos que me presentan y de los
cuales agrego copia a mi archivo.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>FIRST</B>. &#150; That I know the people appearing before me,
whom I know as having the legal capacity to contract and
to obligate themselves, and I see no evidence of
incapacity, nor has it come to my knowledge that they
are prohibited from signing; and who have identified
themselves with the documents they have presented, which
I will copy and to my archives.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SEGUNDO.- </B>Que por sus generales, los
comparecientes manifestaron ser: <B>DAVID
FRANK SIMPSON KRIEDERS</B>, de nacionalidad
Norteamericana, casado, profesionista,
originario de la ciudad de Boulder,
Colorado, Estados Unidos de Am&#233;rica en
donde naci&#243; el d&#237;a 2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECOND</B>. &#151; Those appearing before me are: <B>DAVID FRANK
SIMPSON KRIEDERS</B>, of American nationality, a married
professional, originally from Boulder, Colorado, in the
United States of America, who was born November&nbsp;2, 1956,
nineteen hundred fifty-six, who lives at 3019 Nebulosa,</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">dos de Noviembre
de 1956 mil novecientos cincuenta y
seis, y con domicilio en la calle
Nebulosa n&#250;mero 3019 tres mil
diecinueve, en el Fraccionamiento
Jardines del Bosque de esta ciudad, y
quien me acredita su legal estancia en
el pa&#237;s con su documento migratorio de
no inmigrante visitante con salidas
m&#250;ltiples n&#250;mero 514882 cinco, uno,
cuatro, ocho, ocho, dos expedido por la
Secretaria do Gobernaci&#243;n de
Guadalajara, Jalisco. El se&#241;or JOS&#201;
MAR&#205;A GALLARDO TAMAYO, mexicano,
casado, originario de Jiquilpan,
Michoac&#225;n en donde naci&#243; el dia 21
veintiuno de enero de 1966 mil
novecientos sesenta y seis, de
ocupaci&#243;n Abogado, con domicilio en la
calle Privada del Ni&#241;o n&#250;mero 676
seiscientos setenta y seis, en el
Fraccionamiento Camino Real de esta
ciudad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">in the Fraccionamiento Jardines del Bosque, of this
city, and who verifies he is in this country legally
with his immigration papers, which permit frequent
ingress and egress, number 514882, five, one, four,
eight, eight two, issued by the Secretary of State of
Guadalajara, Jalisco. Mr. <B>JOS&#201; MAR&#205;A GALLARDO TAMAYO</B>,
married, Mexican, originally from Jiquilpan, Michoac&#225;n,
who was born January&nbsp;21, 1966, nineteen hundred
sixty-six, who is a lawyer and lives at 676 Privada del
Ni&#241;o, in the Fraccionamiento Camino Real of this city.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TERCERO.- </B>El se&#241;or DAVE FRANK SIMPSON
KRIEDERS, me acredita la legal
constituci&#243;n de &#147;MINERA KENNECOTT&#148;,
Sociedad An&#243;nima de Capital Variable
y el car&#225;cter de Apoderado de la
misma con los siguientes documentos
que me presenta y doy fe de tener a
la vista, de los cuales agregare una
copia a mi archivo con el n&#250;mero de
la presente acta y la letra que le
corresponda y relaciono a
continuaci&#243;n:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIRD. &#150; </B>Mr.&nbsp;DAVE FRANK SIMPSON KRIEDERS, verifies the
legal creation of &#147;MINERA KENNECOTT,&#148; Corporation with
Variable Capital and the character of the General Agent
of the same with the following documents that he
presents to me, and I certify having seen them, of which
I will file a copy in my archives containing the number
and text of the present and corresponding deed.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>a).- CONSTITUCI&#211;N.- </B>La sociedad
&#147;MINERA SANTA VER&#211;NICA&#148;, Sociedad
An&#243;nima de Capital Variable se
constituyo en la escritura p&#250;blica
n&#250;mero 11,863 once mil ochocientos
sesenta y tres de fecha 3 tres de
Julio de 1981 mil novecientos ochenta
y uno otorgada ante el Licenciado
Adri&#225;n Iturbide Galindo, Notario
P&#250;blico n&#250;mero 139 ciento treinta y
nueve de la ciudad de M&#233;xico,
Distrito Federal, de la cual se
desprende que es una sociedad regular
constituida legalmente bajo las leyes
de la Rep&#250;blica Mexicana, y con
capacidad para realizar a cesi&#243;n de
derechos quo antecede.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>a). &#150; CREATION. &#150; </B>The Corporation &#147;MINERA SANTA
VER&#211;NICA,&#148; Corporation with Variable Capital, was
created in public deed number 11,863 eleven thousand,
eight hundred and sixty-three, dated July&nbsp;3, 1981,
granted before the attorney Adri&#225;n Iturbide Galindo,
Notary Public number 139 one hundred thirty-nine of
Mexico City, of which resulted a regular corporation
legally organized under the laws of the Mexican Republic
and with authority to realize the assignment of rights
aforementioned.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATOS DE REGISTRO.- </B>La escritura
anterior se encuentra inscrita con el
n&#250;mero 25-26 veinticinco gui&#243;n
veintis&#233;is del tomo 47 cuarenta y
siete del Libro Primero del Registro
P&#250;blico de Comercio de esta
Municipalidad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATES OF REGISTRY</B>. &#150; The preceding writing can be found
registered as number 25-26 twenty-five, hyphen,
twenty-six of page 47 forty-seven in the First Book of
the Commercial Public Registry of this City.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>b).- CAM BlO DE DENOMINACI&#211;N.- </B>En
escritura p&#250;blica n&#250;mero 14,824
catorce mil ochocientos veinticuatro
de fecha 28 veintiocho de febrero de
1991 mil novecientos noventa y uno,
otorgada ante el Licenciado Armando
Galvez P&#233;rez Arag&#243;n, Notario P&#250;blico
n&#250;mero 103 ciento tres de la ciudad
de M&#233;xico, Distrito Federal se
protocolizo el acta de asamblea de
accionistas en la que se acord&#243;
cambiar la denominaci&#243;n de la
sociedad por la de &#147;MINERA
KENNECOTT&#148;, Sociedad An&#243;nima de
Capital Variable.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>b). &#150; CHANGE OF NAME. &#150; </B>In public deed number 14,824
fourteen thousand, eight hundred twenty-four, dated
February&nbsp;28, 1991,before the attorney Armando Galvez
P&#233;rez Arrag&#243;n, Notary Public number 103 one hundred
three of Mexico City, the shareholders&#146; agreement
containing the name change of the corporation to &#147;MINERA
KENNECOTT,&#148; Corporation with Variable Capital, was
recorded.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATOS DE REGISTRO.- </B>La escritura
anterior so encuentra registrada con
el n&#250;mero 326 trescientos veintis&#233;is,
del tomo 388 trescientos ochenta y
ocho del libro primero del Registro
P&#250;blico de Comercio de esta
Municipalidad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATES OF REGISTRY</B>. &#150; The preceding writing can be found
registered as number 326 three hundred twenty-six of
page 388 three hundred eighty-eight in the First Book of
the Commercial Public Registry of this City.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>c).- REFORMA INTEGRAL DE ESTATUTOS.-</B>
En escritura p&#250;blica n&#250;mero 40,160
cuarenta y mil ciento sesenta, de
fecha 24 veinticuatro de marzo de
1995 mil novecientos noventa y cinco
otorgada ante el Licenciado Armando
Galvez P&#233;rez Arag&#243;n, Notario P&#250;blico
n&#250;mero 103 ciento tres de la ciudad
de M&#233;xico, Distrito Federal se
formaliz&#243; el acta de asamblea de
accionistas de la empresa en la que
se acord&#243; la reforma total de los
estatutos de la sociedad, conservando
la denominaci&#243;n de &#147;MINERA
KENNECOTT&#148;, Sociedad Anonima de
Capital Variable.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>c). &#150; REVISION OF THE BYLAWS &#150; </B>In public writing number
40,160 forty thousand, one hundred and sixty, dated
March&nbsp;24, 1995 nineteen hundred and ninety-five, before
the attorney, Armando Galvez P&#233;rez Arrag&#243;n, Notary
Public number 103 one hundred three of Mexico City, the
shareholders adopted the minutes of the shareholders&#146;
meeting, which approved the complete restatement of the
company&#146;s articles of association and preservation of
the name &#147;MINERA KENNECOTT&#148; Corporation with Capital
Variable was formalized.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATOS DE REGISTRO.- </B>La escritura
anterior se encuentra registrada con el
n&#250;mero 195 ciento noventa y cinco del
tomo 627 seiscientos veintisiete del
Libro Primero del Registro P&#250;blico de
Comercio de esta Municipalidad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATES OF REGISTRY</B>. &#150; The preceding writing can be found
registered as number 195 one hundred ninety-five, page
627 six hundred twenty-seven in the First Book of the
Commercial Public Registry of this City.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>d).- FACULTADES.- </B>En escritura p&#250;blica
n&#250;mero 60,724 sesenta mil setecientos
veinticuatro de fecha 15 quince de Mayo
del 998 mil novecientos noventa y ocho
otorgada ante el Licenciado Armado
Galvez P&#233;rez Arag&#243;n, Notarie P&#250;blico
n&#250;mero 103 ciento tres del Distrito
Federal, se le confirieron al se&#241;or
Dave Frank Simpson Krieders, las
facultades suficientes para comparecer
a la presente firma en representaci&#243;n
de la empresa &#147;MINERA KENNECOTT&#148;,
Sociedad An&#243;nima de Capital Variable, y
al efecto eI mismo manifiesta bajo
protesta de decir verdad que las mismas
no le han sido revocadas o limitadas a
la fecha.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>d). AUTHORITY </B>&#150; In public writing number 60,724
sixty-thousand, seven hundred twenty-four, dated May&nbsp;15,
1998 nineteen hundred and ninety-eight and granted
before the attorney Armado Galvez P&#233;rez Arag&#243;n, Notary
Public number 103 one hundred and three of the Federal
District, it was confirmed that Mr.&nbsp;Dave Frank Simpson
Krieders, had sufficient capability to appear and
represent &#147;MINERA KENNECOTT,&#148; Corporation with Variable
Capital, and he declared under oath that at present, his
authority had not been revoked or limited.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATOS DE REGISTRO.- </B>La escritura
anterior se encuentra registrada con el
n&#250;mero 96 noventa y seis del tomo 678
seiscientos setenta y ocho del Libro
Primero del Registro P&#250;blico de
Comercio de esta Municipalidad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATES OF THE REGISTRY</B>. &#150; The preceding writing can be
found registered as number 96 ninety-six, page 678 six
hundred sixty-eight in the First Book of the Commercial
Public Registry of this City.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CUARTO.- </B>El Licenciado JOS&#201; MAR&#205;A
GALLARDO TAMAYO me acredita su car&#225;cter
de Apoderado General y la legal
existencia de su representada &#147;MINERA
PE&#209;ASQUITO&#148;, Sociedad An&#243;nima de
Capital Variable, con el siguiente
documento que me presenta y doy fe de
tener a la vista, del cual agregare una
copia a mi archivo con el n&#250;mero de la
presente acta y la letra que le
corresponda y relaciono a continuaci&#243;n:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>FOURTH</B>. &#150; The attorney JOS&#201; MAR&#205;A GALLARDO TAMAYO
verifies his character as a General Agent and the legal
status of the party he represents, &#147;MINERA PE&#209;ASQUITO,&#148;
Corporation with Variable Capital, with the following
document, which I certify having viewed, of which I will
add a copy to my archives containing the number and text
of the present and corresponding deed.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>a).- CONSTITUCI&#211;N Y FACULTADES.- </B>En
escritura p&#250;blica n&#250;mero 44,340
cuarenta y cuatro mil trescientos
cuarenta, de fecha 21 veintiuno de
enero de 1999 mil novecientos noventa y
nueve, otorgada ante el Licenciado
Jorge Robles Farias, Notario P&#250;blico
Adscrito y Asociado al Titular n&#250;mero
12 doce de esta Municipalidad, se
constituyo la sociedad &#147;MINERA
PE&#209;ASQUITO&#148;, Sociedad An&#243;nima de
Capital Variable, y de la misma
escritura se desprende que la empresa
es una sociedad regular legalmente
constituida bajo las leyes de la
Rep&#250;blica Mexicana; en la misma
escritura constan las facultades
conferidas al Licenciado Gallardo
Tamayo, quien manifiesta bajo protesta
de decir verdad que las misma no le han
sido revocada o limititadas a al fecha.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>a). &#150; CREATION AND AUTHORITY</B>. In public writing 44,340
forty-four thousand three hundred and forty, dated
January&nbsp;21, 1999 nineteen hundred and ninety-nine, it is
granted before Attorney Jorge Robles Farias, Notary
Public Assigned and Associated with Title number 12
twelve of this City, that the corporation &#147;MINERA
PE&#209;ASQUITO,&#148; Corporation with Variable Capital was
created, and in the same writing it is noted that the
business is a regular company legally created under the
laws of the Mexican Republic; in the same writing the
authority conferred to the Attorney Gallardo Tamayo, who
declares under oath that he is being truthful and that
at present his authority has not been limited or
revoked.</TD>
</TR>
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</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATOS DE REGISTRO.- </B>La escritura
anterior se encuentra inscrita con el
n&#250;mero 204-205 doscientos cuatro gui&#243;n
doscientos cinco del tomo 698
seiscientos noventa y ocho del Libro
Primero del Registro P&#250;blico de
Comercio de esta Municipalidad.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DATES OF REGISTRY</B>. &#150; The preceding writing can be found
registered as number 204-205 two hundred and four,
hyphen, two hundred and five of page 698 six hundred
ninety-eight six hundred and ninety-eight in the First
Book of the Commercial Public Registry of this City.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>QUINTO.- </B>De que los comparecientes
ratifican en este acto el contenido del
contrato mencionado en el punto (I)
uno, de este documento, as&#237; como las
firmas que lo calzan, por lo que
certifico su voluntad y autenticidad de
sus firmas.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>FIFTH</B>. &#150; Those appearing confirm this deed contained in
the aforementioned contract at point (1)&nbsp;one, of this
document by signing, and I verify that they voluntarily
signed and the authenticity of their signatures.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SEXTO.- </B>Le&#237;do por los comparecientes el
presente instrumento y explicado su
valor y consecuencias legales,
terminaron de firmarlo de conformidad,
en presencia y union del suscrito
Corredor P&#250;blico N&#250;mero veinte de esta
plaza, a las 12:30 doce horas con
treinta minuetos del dia de su fecha.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SIXTH</B>. &#150; Having read and reviewed the present instrument
and reviewed the legal consequences, those appearing
before me were in agreement and signed in the presence
of Public Agent Number twenty at this location, at 12:30
twelve thirty on this date.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DOY FE.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CERTIFIED.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MINERA KENNECOTT, Sociedad<BR>
Anonima de Capital Variable
representatda por<BR>
Dave Frank Simpson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, Sociedad<BR>
de Capital Variable representada
por el Licenciado
<BR>
Jos&#233; Mar&#237;a Gallardo Tamayo
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA KENNECOTT,<BR>
Corporation with Varibale Capital
represented by Dave Frank Simpson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MINERA PE&#209;ASQUITO, S.A. DE<BR>
C.V. represented by
<BR>
Lic. Jos&#233; Mar&#237;a Gallardo Tamayo
</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ante Mi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Before Me</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lic. Diego Robles Farias
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lic. Diego Robles Farias</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Corredor Publico number 20
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Public Agent number 20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Plaza Jalisco
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plaza Jalisco</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>DIRECCION GENERAL DE MINAS</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>GENRAL DIRECTION OF MINES</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>REGISTRO PUBLICO DE MINERIA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PUBLIC MINING REGISTER</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&nbsp;</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>1/10783</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>1/07/83</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrado bajo el
n&#250;mero 256 a fojas 169
frente y vuelta del
volumen 10 del libro de
Actos, Contratos y
Convenios Mineros.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registered under number 256, page 169
front and back of volume 10 in the book
of Mining Deeds, Contracts and
Agreements.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>M&#233;xico, D. F., 21 de Febrero de 2000.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Mexico, D.F., February&nbsp;21, 2000</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EL REGISTRADOR</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE RECORDER</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LIC. MA. OLGA GALLARDO MONTOYA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>LIC. MA. OLGA GALLARDO MONTOYA</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>COORDINACION GENERAL DE MINERIA<br>
DIRECCION GENERAL DE MINAS<br>
DIRECCION DEL CATASTRO MINERO<br>
SUBDIRECCION DEL REGISTRO<br>
PUBLICO DE MINERIA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  colspan="3" align="left" valign="top"><B>GENERAL MINING COORDINATION<br>
GENERAL DIRECTION OF MINING<br>
DIRECTION OF MINING PROPERTY<br>
SUBDIRECTION OF THE PUBLIC MINING REGISTER</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>610.9</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>610.9</B></TD>
    <TD   align="right" valign="top">&nbsp;</TD>

    <TD   valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>16441</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>16441</B></TD>
    <TD   align="right" valign="top">&nbsp;</TD>

    <TD   valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EXP. &#150; 1/10783</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>EXP. &#150; 1/10783</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ASUNTO: </B><B><I>Se deveulve documento registrado (50900)</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>REGARDGING: </B><B><I>Return of registered documents (50900)</I></B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>M&#233;xico D.F., a 27 JUN. 2000</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>Mexico, D.F., June&nbsp;27, 2000</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>CERTIFICADO CON <BR>
ACUSE DE RECIBO</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>CERTIFICATE WITH ACKNOWLEDGMENT OF RECEIPT</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>MINERA KENNECOTT, S.A. DE C.V.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>MINERA KENNECOTT, S.A. DE C.V.</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>A/C LIC. FRANCISCO HEIRAS MANCERA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>c/o LIC. FRANCISCO HIERAS MANCERA</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>AVE. OCAMPO NO. 3806</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>AVE. OCAMPO NO. 3806</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>COL. BELLAVISTA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>COL. BELLAVISTA</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>C.P. 031030 CHIHUAHUA, CHIH</B>.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>C.P. 031030 CHIHUAHUA, CHIH.</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Adjunto al presente se le env&#237;a debidamente
registrados el o (los)&nbsp;original (es)&nbsp;del o
(los)&nbsp;siguientes documentos:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top">Enclosed with the following, we are sending you
original(s) of the duly registered document(s):
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">El contrato celebrado el veintinueve de octubre
de mil novecientos noventa y nueve, por medio
del cual su representada cede en favor de
Minera Pe&#241;asquito, S.A. DE C.V., representada
por Jos&#233; Maria Gallardo Tamayo, entre otros,
los derechos derivados de la concesi&#243;n minera
denominada &#147;EL PE&#209;ASQUITO&#148; titulo ciento
noventa y seis mil doscientos ochenta y nueve,
ubicada en el Municipio de Mazapil, Zacatecas.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top">The contract certified on October&nbsp;29, 1999, in
which your client assigns to Minera PE&#209;ASQUITO,
S.A. DE C.V., and represented by Jos&#233; Maria
Gallardo Tamayo, among other things, the rights
derived from the mining concession called &#147;EL
PE&#209;ASQUITO,&#148; title one hundred ninety-six
thousand, two hundred and eighty-nine, located in
the city of Mazapil, Zacatecas.
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>A T E N T A M E N T E</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>SINCERELY</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>SUFRAGIO EFECTIVO. NO REELECCION
LA SUBDIRECTORA DEL REGISTRO
PUBLICO DE MINERIA.</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>EFFECTIVE SUFFRAGE, NO REELECTION
THE SUBDIRECTOR OF THE PUBLIC MINING REGISTER</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>LIC. MA. OLGA GALLARDO MONTOYA</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>LIC. MA. OLGA GALLARDO MONTOYA</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>UN ANEXO</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>AN ANNEX</B>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>199909RPM34008</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD   colspan="3" align="left" valign="top"><B>199909PRM34008</B>
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6<!-- /Folio -->
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