March 4, 2004
RE: BINDING LETTER AGREEMENT, XXXX MINE PROPERTY, MOHAVE COUNTY, ARIZONA.
The following general terms and conditions for the agreement between MinQuest,
Inc. and Patriot Gold Corp. embody the essence of verbal agreements between
MinQuest, Inc. and Patriot Gold Corp. on the Xxxx Mine property, Mojave County,
Arizona, (the "Property).
Form of Agreement Mining Lease/purchase
Term 20 years with automatic extensions
so long as Patriot Gold holds all or
portions of the "Property".
Production Royalties A 3% Net Smelter Return on any and all
production derived from unpatented mining
claims listed under "Property" and on public
lands within 1 mile of MinQuest, Inc's
outside perimeter of the present claim
boundary. A 1.0% NSR on patented claims with
no other royalty within the Property. A 0.5%
overriding Net Smelter Return on all
production within the Property derived from
patented claims with other royalty
interests.
One time payment Upon Execution US$50,000.00
Reimbursement Filing Fees US$150.00/claim
Property Patriot Gold will purchase 62
unpatented lode claims, specifically Xxxx
11-33, 33F, 34-39, 39F, 40-47, 47F and 48-70
held by MinQuest. These claims are located
in Sections 19, 20, 29 and 30, T20N, R20W
and Sections 24 and 25, T20N, R21W. Patented
claims that the royalty applies to include,
but are not limited to Key No. 1 and 2, Xxxx
Millsite, Divide, Keystone Wedge, and the 2
California Xxxx claims.
Performance Requirements Patriot shall engage MinQuest Xxx.xx perform
any and all exploration work on the
"Property". Federal and state mining claim
maintenance fees will be paid for any year
in which this agreement is maintained in
good standing after July 1. Any and all
property positions within the "Property"
shall be offered to MinQuest Inc. before
relinquishment to patent owners or
relinquished back to the government.
LETTER AGREEMENT, XXXX MINE PROPERTY
PAGE 2 OF 2
MARCH 5,2004
Reclamation Patriot Gold shall perform
reclamation work on the Property as required
by Federal, State, and Local laws for
disturbances resulting from it's activities
on the Property.
Assignment Freely by either party so long as
Assignee accepts terms and conditions of the
Lease in writing.
Interest Area One mile from the outside perimeter of
the MinQuest, Inc. claim boundaries.
If the above terms and conditions are consistent with your understanding, please
acknowledge by signing in the space provided below and return one copy. This
will serve as a binding agreement between MinQuest, Inc. and Patriot Gold until
such time as a formal and comprehensive agreement, incorporating these general
terms, can be prepared.
Xxxxxx and accepted to this 5th day of March, 2004.
By: __/s/ Xxxxxxx Xxxx__________________ (MinQuest, Inc.)
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By: __/s/ Xxx Xxxxxxxx_________________ (Patriot Gold Corp.)
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