CARDINAL MINERALS INC
LETTER AGREEMENT BETWEEN KEN SWAISLAND AND HUNTER GOLD MINING CORPORATION
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<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10-1.htm
<DESCRIPTION>LETTER AGREEMENT BETWEEN KEN SWAISLAND AND HUNTER GOLD MINING CORPORATION
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<b>
<p ALIGN="CENTER" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">KEN
SWAISLAND</p>
<p ALIGN="CENTER" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
Coach House</p>
<p ALIGN="CENTER" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">2949
Palmerston Ave.</p>
<p ALIGN="CENTER" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">West
Vancouver, BC V7V 2X2</p>
</b>
<p ALIGN="CENTER" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">December
2, 2003</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Hunter
Gold Mining Corporation</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">C/o
4145 Almondel Road</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">West
Vancouver, BC V7V 3L6</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Attention:
George Otten</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Re:
Purchase of Hunter Gold Mining Corporation (the &quot;Target&quot;) from George
Otten and Jim Blair (the &quot;Principal Vendors&quot;) and the other
shareholders of the company (the &quot;Other Vendors&quot;) by Ken Swaisland
(the &quot;Purchaser&quot;).</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Dear
Sir:</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">I
confirm that I will pay the sum of $3,000,000 in United States Currency to the
Vendors to purchase all the shares of Hunter Gold Mining Corporation on or
before March 31, 2004 subject to the following conditions:</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<ol>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
    Purchaser shall have until March 15, 2004, to complete its due diligence
    review and can terminate this letter agreement at any time prior to March
    15, 2004 by notice pursuant to clause 6.</li>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
    Purchaser shall present any formal documentation that it requires for
    signature to the Vendor by March 15, 2004.</li>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
    Principal Vendors agrees to provide any and all documentation that it has in
    its possession and is required by the Purchaser, and assist in any way it is
    able during the due diligence period.</li>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
    Principal Vendors agree to ensure that all assests of Hunter Gold Mining
    Inc. and Hunter Gold Mining Corporation including the Bates Hunter Mine and
    Golden Gilpin Mill, dewatering plant, mining properties, claims, permits,
    and all ancillary equipment (See Tedesco's report dated March, 1997), are
    free and clear of any and all financial liens or encumbrances with the
    exception of a one percent net smelter return royalty payable to Goldrush
    Casino and Mining Corporation to a maximum of US $1,500,000 and that all
    accounts payable of each Corporation have been satisfied.</li>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
    Purchaser agrees to provide sufficient moneys from the purchase price on or
    before closing to allow the Principal Vendor to satisfy paragraph 4 of this
    letter agreement prior to distribution of the remaining moneys to the
    individual Vendors in proportion to their shareholdings in the Target.</li>
  <li>
    <p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Any
    notice given under this agreement will be in writing and may be sent by
    facsimile transmission or prepaid registered mail to the following addresses
    or numbers:</li>
</ol>
<hr>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Ken
Swaisland</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
Coach House</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">2949
Palmerston Ave.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">West
Vancouver, BC V7V 2X2</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Attention:
Ken Swaisland</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Facsimile
No: 604-925-3592</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Hunter
Ogld Mining Corporation</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">C/o
Blair Forrest</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">3<sup>rd</sup>
Floor-1665 Ellis St.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Kelowna,
BC VIY 2B3</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Facsimile
No: 250-762-6665</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Attention
George Otten</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Yours
Truly,</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accepted and agreed to by:</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Hunter Gold Mining Corporation per:</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0"><u>/s/
Ken Swaisland&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>/s/ George Otten&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Ken
Swaisland&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
George Otten President</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Accepted
and agreed to
by:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accepted and agreed to by:</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0"><u>/s/
Jim
Blair&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>/s/ George Otten&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Jim
Blair&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
George Otten</p>

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