2 ) b. smc will reserve a royalty consisting of 5 % of the net smelter returns ( as defined in schedule “ a ” hereto ” ) in favour of nmc or its designates. searchlight minerals corp. by its authorized signatory : / s / ian mcneil signature of authorized signatory ian macneil name of authorized signatory president position of authorized signatory nanominerals corp. by its authorized signatory : / s / chuck ager signature of authorized signatory chuck ager name of authorized signatory chairman position of authorized signatory / s / ian mcneil ian macneil president / s / chuck ager chuck ager chairman schedule a to the second amendment to assignment agreement dated october 24, 2005 ( i ) in the case of the sale of bullion, refining charges ( including penalties ) only ; ( ii ) in the case of the sale of concentrates, smelting and refining charges, penalties and the cost of transportation, including related insurance, of such concentrates from the property to any smelter or other purchaser ; and ( iii ) in the case of ores shipped to a purchaser, refining charges for bullion and charges for smelting, refining and the cost of transportation, including related insurance, from the mill to any smelter or other purchaser for concentrates.