termination of definitive agreement between effective this date : august 31, 2011 steele resources inc. ( selr : otcbb ), 3081 alhambra drive, suite 208 cameron park, california and innocent inc. ( inct. pk ), 2000 ne 22nd st. wilton manors, fl 33305 background : on february 20, 2011 innocent inc. entered into a material definitive agreement with steele resources, inc. ( selr : otcbb ) to acquire 50 % of the mineral hill gold exploration project. the project is located near pony hill, montana in the mineral hill mining district and consists of 17 patented and 67 unpatented lode mining claims ( approximately 1, 800 acres ). the agreement is a 50 / 50 joint venture under which the two companies will work together to explore and operate the claims. the initial participating interests of innocent, inc. and steele resources, inc. in the jv will be 50 % and 50 %. under the terms of the agreement, innocent may contribute up to $ 5, 000, 000 in operating funds over one year. in the event those funds were not provided, innocent would forfeit 10 % per $ 1, 000, 000 not provided. steele resources, inc. will act as the operating partner and have a commitment to match up to $ 5, 000, 000 in funding within one year of innocent, inc. contributing its first $ 1, 000, 000. steel resources, inc. will forfeit 10 % per $ 1, 000, 000 not provided under its obligation. innocent inc. has made payments of five hundred forty thousand dollars ( $ 540, 000 ) under the terms of the agreement. on february 7, 2011, inct advanced an initial $ 290, 000 which allowed sri to close on the pony project representing 17 patented and 67 unpatented mining claims located in the pony mining district of montana. a second payment expected be completed on or before february 28th, 2011, was completed on march 18, 2011 in the amount of $ 250, 000. these funds were sent directly to steele resources, inc. and innocent inc. has received the supporting documentation and issued a note payable for these funds on behalf of innocent inc. these funds allowed sri to close on the atlantic and pacific mining property mineral lease ( the ” a & p project ” ) representing two patented mining claims located next to the pony project and together representing the mineral hill mining project. on april 14, 2011, the company received