Option and Joint Venture Agreement

PINE COVE

In November 2003 an option and joint venture agreement was signed with Anaconda Mining Inc. (Anaconda) 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.