SUMMARY

PULACAYO JOINT VENTURE AGREEMENT

PULACAYO LTDA. / ASC BOLIVIA LDC (SUCURSAL BOLIVIA) JOINT VENTURE AGREEMENT.



• The Pulacayo Ltda. Mining Cooperative and ASC BOLIVIA LDC (Sucursal Bolivia) have executed a Joint Venture Agreement (Contrato de Riesgo Compartido) according to the “Testimonio” No. 116/2002 dated 07/30/2002 granted by Public Notary from La Paz No. 003 (Nelly Alfaro de Maldonado). The Testimonio was registered before Mining Registry under the No. PT-197 File No. 144 dated 08/02/2002, and finally registered before the Potosí Real State Office under the Partida No. 62-27 File No. 54vta.– 24 Book No. 8-49, dated 08/12/2002.

• COMIBOL’s Board trough Board’s Resolution No. 2594/2002 dated July 25^th 2002 has authorized the execution of the Joint Venture Agreement.

• The Joint Venture Agreement only includes the Pulacayo Group of mining concessions: Pulacayo (1,031 hectares), Porvenir (1,099), Huanchaca (460 hectares), Galería General (76 hectares), Roschild (3 hectares), Temeridad (10 hectares) and Real del Monte (24 hectares).

• The term of the Joint Venture Agreement is 23 years starting July 30^th, 2002. The first five years are for exploration period.

• The Joint Venture Agreement could be terminated at any time if results from exploration are not satisfactory to ASC Bolivia LDC.

• ASC Bolivia LDC is committed to pay to COMIBOL US$1,000 during the exploration period, until the project starts commercial production.

• During the commercial production or mining stage ASC Bolivia LDC will pay to COMIBOL the equivalent of 2.5% of the Net Smelter Return (NSR) and 1.5% of the Net Smelter Return (NSR) to the Pulacayo Cooperative.

• The First Stage of Exploration implies the investment of US$500,000 or at least a minimum of US$300,000 during the first six to eight months.

• As defined on the clause 21 of the Joint Venture Agreement, a third party could be integrated to the Joint Venture under permission of COMIBOL’s Board.