Option and Joint Venture Agreement

PINE COVE

In November 2003 an option and joint venture agreement was signed with Anaconda Gold Corp. covering the Pine Cove property.

Under the terms of the agreement, Anaconda can:

a) Earn a 30% interest in the property by making cash payments of $92,500 and expending $500,000 on the property before December 31, 2004, and

b) Earn an additional 30% interest in the property and operator status by completing a feasibility report, arranging the financing and bringing the property into commercial production.

Anaconda has completed a feasibility report and made a production decision. It currently is arranging the financing to bring the property into production in 2007.