homero bustillos gonzalez assignees or designees and american gold holdings ltd. option to purchase agreement january 11, 2011 table of contents article 1 interpretation section 1. 1 defined terms 1 section 1. 2 interpretative clauses. 6 section 1. 3 conditions precedent. 7 article 2 grant and exercise of option section 2. 1 grant of option to buy 70 % of all mining rights in property. 7 section 2. 2 purchase price 7 section 2. 3 option to purchase payments, expenditures and financing 9 section 2. 4 work commitment, expenditures and exploration objective ( s ). 9 article 3 option period section 3. 1 conduct of business. 10 section 3. 2 access for exploration 10 section 3. 3 optionee's obligations 10 section 3. 4 engagement 11 section 3. 5 emergency expenditures 11 article 4 representations and warranties section 4. 1 signing representations and warranties of optionor 12 section 4. 2 closing representations and warranties of optionor 12 section 4. 3 representations and warranties of optionee. 13 section 4. 4 survival 14 article 5 post - closing period section 5. 1 anti - dilution rights. 14 section 5. 2 nominees to optionee's advisory board 14 section 5. 3 further assurances 14 article 6 termination section 6. 1 termination by optionee 14 section 6. 2 no termination on closing 14 section 6. 3 obligations cease 14 section 6. 4 non - compliance by optionor 15 article 1 interpretation section 1. 1 defined terms 1 section 1. 2 interpretative clauses. 6 section 1. 3 conditions precedent. 7 article 2 article 2 grant and exercise of option grant and exercise of option section 2. 1 grant of option to buy 70 % of all mining rights in property. 7 section 2. 2 purchase price 7 section 2. 3 option to purchase payments, expenditures and financing 9 section 2. 4 work commitment, expenditures and exploration objective ( s ). 9 article 3 article 3 option period option period section 3. 1 conduct of business. 10 10 section 3. 2 access for exploration 10 10 section 3. 3 optionee's obligations 10 10 section 3. 4 engagement 11 11 section 3. 5 emergency expenditures 11 11 article 4 article 4 representations and warranties representations and warranties section 4. 1 signing representations and warranties of optionor 12 12 section 4. 2 closing representations and warranties of optionor 12 12 section 4. 3 representations and warranties of optionee. 13 13 section 4. 4 survival 14