Common use of Preparation of Exploration Programs and Budgets Clause in Contracts

Preparation of Exploration Programs and Budgets. (a) Continental shall prepare "the Continental Exploration Program" and submit its Continental Exploration Program to each Director no later than forty-five (45) days after the end of the existing Continental Exploration Program, for the Directors' review and adoption in accordance with Section 6.4. (b) The annual expenditure under a Continental Exploration Program shall be at least US$1,000,000, except that if the expenditure under the previous Continental Exploration Program exceeded the budgeted expenditure amount, then the excess amount ("Excess Amount") shall be credited toward such minimum US$1,000,000 budgeted annual expenditure for the subsequent Continental Exploration Program. In the event that the budgeted expenditure for a Continental Exploration Program is less than US$1,000,000, then the shortfall shall nonetheless be budgeted for and Continental shall in any case invest no less than US$1,000,000 in Ordinary Shares of the Company except in the event where there is an Excess Amount in which event the amount invested by Continual shall be no less than the difference between US$1,000,000 and the Excess Amount. Any amounts so invested shall be first used to fund expenditure under a subsequent Continental Exploration Program. (c) Continental may elect to provide suitable engineering expertise to the Company and Tianyuan, charged at the market rates contemplated under the terms of the Continental Exploration Program approved by the Board, and the Company and Tianyuan shall engage personnel recommended by Continental to operate all the engineering programs. Continental may elect to have the costs of such provision of expertise be either (i) reimbursed to it by Tianyuan or (ii) credited as Continental's expenditure incurred in relation to the Property. The costing of such services shall be approved as a separate budget item in accordance with Section 2.3. This Section shall apply mutatis mutandis to CTVH if it proposes a CTVH Exploration Program.

Preparation of Exploration Programs and Budgets. (a) Continental shall prepare "the Continental Exploration Program" and submit its Continental Exploration Program to each Director no later than forty-five (45) days after the end of the existing Continental Exploration Program, for the Directors' review and adoption in accordance with Section 6.4. (b) The annual expenditure under a Continental Exploration Program shall be at least US$1,000,000, except that if the expenditure under the previous Continental Exploration Program exceeded the budgeted expenditure amount, then the excess amount ("“Excess Amount"”) shall be credited toward such minimum US$1,000,000 budgeted annual expenditure for the subsequent Continental Exploration Program. In the event that the budgeted expenditure for a Continental Exploration Program is less than US$1,000,000, then the shortfall shall nonetheless be budgeted for and Continental shall in any case invest no less than US$1,000,000 in Ordinary Shares of the Company except in the event where there is an Excess Amount in which event the amount invested by Continual shall be no less than the difference between US$1,000,000 and the Excess Amount. Any amounts so invested shall be first used to fund expenditure under a subsequent Continental Exploration Program. (c) Continental may elect to provide suitable engineering expertise to the Company and Tianyuan, charged at the market rates contemplated under the terms of the Continental Exploration Program approved by the Board, and the Company and Tianyuan shall engage personnel recommended by Continental to operate all the engineering programs. Continental may elect to have the costs of such provision of expertise be either (i) reimbursed to it by Tianyuan or (ii) credited as Continental's expenditure incurred in relation to the Property. The costing of such services shall be approved as a separate budget item in accordance with Section 2.3. This Section shall apply mutatis mutandis to CTVH if it proposes a CTVH Exploration Program.

Preparation of Exploration Programs and Budgets. (a) Continental shall prepare "the Continental Exploration Program" and submit its Continental Exploration Program to each Director no later than forty-five (45) days after the end of the existing Continental Exploration Program, for the Directors' review and adoption in accordance with Section 6.4. (b) The annual expenditure under a Continental Exploration Program shall be at least US$1,000,000, except that if the expenditure under the previous Continental Exploration Program exceeded the budgeted expenditure amount, then the excess amount ("“Excess Amount"”) shall be credited toward such minimum US$1,000,000 budgeted annual expenditure for the subsequent Continental Exploration Program. In the event that the budgeted expenditure for a Continental Exploration Program is less than US$1,000,000, then the shortfall shall nonetheless be budgeted for and Continental shall in any case invest no less than US$1,000,000 in Ordinary Shares of the Company except in the event where there is an Excess Amount in which event the amount invested by Continual shall be no less than the difference between US$1,000,000 and the Excess Amount. Any amounts so invested shall be first used to fund expenditure under a subsequent Continental Exploration Program. (c) Continental may elect to provide suitable engineering expertise to the Company and TianyuanTian Yuan, charged at the market rates contemplated under the terms of the Continental Exploration Program approved by the Board, and the Company and Tianyuan Tian Yuan shall engage personnel recommended by Continental to operate all the engineering programs. Continental may elect to have the costs of such provision of expertise be either (i) reimbursed to it by Tianyuan Tian Yuan or (ii) credited as Continental's expenditure incurred in relation to the Property. The costing of such services shall be approved as a separate budget item in accordance with Section 2.3. This Section shall apply mutatis mutandis to CTVH if it proposes a CTVH Exploration Program.