Berisford Metals Corporation

2 3 0 PAR K AVENUE, NEW YOR K, N.Y. 10017

Berisford Metals Corporation Contract f # BMCP-309

Agreement made this 22nd day of December, 1985

BETWEEN Berisford Metals Corporation

BUYER 230 Park Avenue
New York, N.Y. 1.0017 (Hereinafter called E k e
"BUYER")

AND CIA MINERA SAN NICOLAS S.A.

SELLER Miguel Basso 134,of. 502
San Isidro, Lima, PERU (Hereinafter called
the "SELLER")

Seller agrees to sell and deliver and Buyer agrees t o buy and receive
the material described hereunder on the term and conditions
hereinafter contained:

Silver Dore Bars weighing approximately 30 kgs. each.

Approximate assay:

Silver: 98.0 percent Gold 2.0 percent

and to be free of deleterious elements that would affect refining.

The entire production for the "Duration", which is currently

approximately 100 to 125 Kilos per month.

To cover shipments commencing at once and terminating June

30, 1988.

DELIVERY: F.O.B. Airplane, J. Chavez Airport, Callao/Lima

Peru.
0

TELEPHONE: 212-599-8300 CABLE: BERISME T AL NEWYORK TELEX: WU 640295, RC A 238170. TRT 177710
 Berisford Metals Corporation
2 3 0 P A R K A V E N U E , N E W YOR K , N . Y. 1 0 0 1 7

Berisford Metals Corporation Contract f # BMCP-309

Agreement made this 22nd day of December, 1985

BETWEEN Berisford Metals Corporation

BUYER 230 Park Avenue
New York, N.Y. 10017 (Hereinafter called E k e
"BUYER")

AND CIA MINERA SAN NICOLAS S.A.

SELLER Miguel Basso 134,of. 502
San Isidro, Lima, PERU (Hereinafter called
the "SELLER")

Setter agrees to sell and deliver and Buyer agrees t o buy and receive
the material described hereunder on the term and conditions
hereinafter contained:

Silver Dore Bars weighing approximately 30 kgs. each.

Approximate assay:

Silver: 98.0 percent Cold 2.0 percent

and to be free of deleterious elements that would affect refining.

The entire production for the "Duration", which is currently

approximately 100 to 125 Kilos per month.

To cover shipments commencing at once and terminating June

30, 1988.

DELIVERY: F.O.B. Airplane, J. Chavez Airport, Callao/Lima

Peru.
D

T E L E P H O N E : 2 1 2 - 5 9 9 - 8 3 0 0 C A B L E : B E R I S M E TA L N E WY O R K T E L E X : W U 8 4 0 2 9 5 , R C A 2 3 8 4 7 0 . ' t R T 1 7 7 7 1 0
 -2-

SHIPMENT: By airplane, packed in wooden boxes (Buyer

m u s t take security precautions necessary
regarding packaging-and delivery to the
airplane). Shipping lots shall be minimum 100
kilos e a c h . Shipments to commence July,1986.

TAXES/DUTIES: All Peruvian. If any, for account of S e l l e r a n d all

at destination, if any, for Buyer's a c c o u n t .

REFINING
CHARGES: USD 14.00 per kilo of material natural state.
Refining charge based on airfreight Lima to
Paris of USD 2.50 per kilo and any difference
for Seller's account.
Refining charge to escalate six percent per
annum for deliveries during 1987 and 1988.

PAYABLES:

SILVER: Pay for 99.5 percent of fine content at London spot

quotation for refined silver as published by
Metals Week.

GOLD: Pay for 98.0 Percent of fine content at the

London P.M. quotation for gold as published b y
Metals Week less USD 3.55 per ounce of payable
gold content.

QUOTATIonal:
PERIOD: The market day immediately following delivery.
WEIGHING

Pricing shall be basis producer weights and

Pricing shall be basis producer weight and assays.Once
final weights and assays are kwon for each shipping lot
,any excess to the amount priced shall be bought by Buyer
from Seller and any lesser amount to the amount priced
shall be sold by Buyer to Seller.-For these quantity
differences prices shall be basis the eight working day
after receipt at refinery

SAMPLING__AND Weighing and sampling shall be made after melting

ASSAYING________ at refinery and shall be final for
settlement.
Refinery analysis shall be final for settlement.
Seller shall have the right to be represented at
these operations at own expense.

I
 r 0 - 3 -

PAYMENT: 90 percent provisional payment cash against

shipping documents within 48 hours from
delivery F.O.B. J. Chavez Airport. Provisional
value to be calculated basis established prices
and independent weights and analysis.

Final Payment will be made after final weights and

assays are known and not later than twenty days after
the date of shipment.

FORCE
MAJEURE: In the event of any Force Majeure as defined below,
preventing or hindering Sellef; Buyer and/ or the receiving
refinery from the performance of any obligations under this
Agreement the s performance under this Agreement shall be suspended
in full or in part depending on the extent of such prevention or
hindrance f o r the duration of Force Majeure from the date onward
l on which written notice of such Force Majeure; including the
reasons causing such Force Majeure; is given by the affected party
to the other party. Quotational periods shall likewise be,
suspended during the period of such Force Majeure.

In the event of Force Majeure at such receiving refinery, any

deliveries shall be subject to Buyer express consent.

Events qualifying as Force Majeure shall be any circumstances

arising or actions taken, including, but not limited to, strike and
lockout, beyond or outside any reasonable control of the affected
party, preventing or hindering delivery and/or processing of
Materials under this Agreement.

If Force Majeure continues for a. period of more than three

consecutive months from the date of notice thereof, either party
has the right to decline to make or receive subsequent delivery of
such quantities not delivered and/or not accepted during such
period of Force Majeure. S u c h right to decline shall not apply to
any quantity purchased at a fixed price or any quantity dde for
pricing during any quotational period preceding the date of such
Force Majeure notice.

J
 If quotations on the LME for any of the Materials
are suspended for more than 90 days, the parties
will meet to establish the final setlement
price(s).

OTHER TERMS: To be in accordance with standard International

AND CONDITIONS practice.

CIA. MINERA SAN NICOLAS BERISFORD METALS CORtORAttO

CIA. A'INPRA PAN PJIC S.
A.
BY: B _

Michael T . Ki j s k i
Vice President Raw
O! F Iy4
Materials

CERTIFICO I e l a s 5 / I
su~oorl~Qina-
que sotto y firmo aon i d t i c a a

les.
Limas I 0 JUN 198 6
NQTARIA P JB1IC
At M ' . .---- ah r M.
IMAM
MMA IBM
OR. MANUEL 2,0 JUN. 1986

JR. CAMANA No. 390-OF. 200

-8099-281 618-X8.1161
fass>8
27
. ; .
 FULAM METALL AG

Gartenslrasse 3
CH-6300 ZUG

Telelon 042-22 25 30
Telex 865 287 phms ch

19th February
1985

Seller Cia Minera San Nicolas S.A Miguel basso 134 - Of. 502 Lima 27 , Peru

Buyer : Fulam Metall A.G.

Gartenstrasse 3
CH-65300 ZUG - SWITZERLAND

Seller agrees to sell and Buyer agrees to buy the following material at Ehe
following conditions :

MATERIAL

Silver dore bullion produced by Cia Minera San Nicolas asd9ying

approximately Ag: 97/99% Au: 1/3%

QUANTITY

Total production, estimated at approximately 2400 Kgs/year.

DELIVERY

FOB Buyer's aircraft Lima airport.

0
SHIPMENT

About 200 Kgs every other month. Starting August 1985, shipment
schedule will be about 200 Kgs per month, subject to Seller's
convenience.

DURATION

Two years starting May 1985. Buyer will have the right of first
refusal to renew this contract.

RESTITUTION

Ag: Buyer will pay 99.8% of the silver content at the London Spot US
Equivalent Price for Silver averaged for the quotational.periodr

Au: Buyer will pay 98% of the gold content at the London AM Gold 'ix
averaged for the quotational period.

9
 REFINING CHARGES

US cents 51 per troy ounce of dore.

US dollars 3.00 per troy oz of fine gold.

Fractions pro rata.

PAYMENT

A provisional payment of 100% of the priced material will be made

for value two market days after the quotational period. Final
payment will be made after all final elements are known.

QUOTATIONAL PERIOD

Ag: 90% of the provisional silver content will be priced o n the

second market day after the day of arrival at the refinery. Any
underage or overage will be priced during the same quotational period
as for gold.

Au: On a day to be mutually agreed after final weights and - assays

are known.

ADVANCE PROVISIONAL PAYMENT

Seller may request an early provisional payment of 70% of , t h e

provisional value of the material against a certificate of deposit ,
emitted by a first class bank in favor of the Buyer. Seller will pay
the buyer interest at the US Prime Rate plus 2.5% per annum from the date
of payment until the provisional payment date of the shipment
in question.

WEIGHING, SAMPLING AND MELTING

0
Weighing, sampling and
destination refinery in
procedures. Seller shall
expense. The absence of
waiver of Seller's right
melting operations will take place at the
accordance with internationally recognized
have the right to be represented at his own
Seller's representative shall constitute a
of representation.

ASSAYING

Assays shall be made on an adjusted basis by the respective assayers

and umpires. The results shall be exchanged in the usual manner by
crossing mail. Should the difference between Seller's and Buyer's
assays be no more than the following :
Ag:1 fine Au: 5 fine
The exact mean of the two results shalt be taken as the agreed result for final
settlement. Should the difference between Seller's and Buyer's assays exceed the
above limits, either party shall have the right to request an umpire assay by an
independent 'laboratory: If any umpire is required, the final assay will be the
assay in the middle of the other two results. The party whose assay is further from
the umpire will pay the cost of the umpire analysis.

10
FORCE MAJEURE

Seller and Buyer shall not be liable for nonfulfillment of part or all
of contract due to fire, strike, riots, acts- o f God, or other
contingencies beyond the control of Seller and Buyer.

In case one party cannot fulfill the contract because of any o f the
causes mentioned, that party will immediately notify the other party
in writing. The party who receives such notice in writing has the
option to cancel the contract for any part not fulfilled after 60 days
have elapsed.
ARBITRATION

Any controversy or dispute arising out of, or relating to this

agreement, or the breach thereof, which the parties shall be unable
to settle by mutual agreement shall be finally settled under the --rules
of conciliation and arbitration of the International Chamber
of Commerce in Paris by one or more arbitrators appointed in .
accordance with said rules.

ADMINISTRATION

This contract will be administered on behalf of the Buyer by

Transamine Ltd, 4 Stanhope Gate, London W1Y 5LA, England. A i l
correspondence to the Buyer will be addressed c a r e of Transamine Ltd.

Date bate

CERTIFICO Qua Iaa 3 copias fotostAticas que se o y

firmo son Identicas a sus on&ina-
'ON
umat 1 0 JUN 1986
Cia Minera San Nicolas Fulani Metall A.G.
N01ARIA PUBLICA DE UMA
DR MANUEL

,
20 Jolt 19 86
JR.CAMANANa380-OF.208
Fanos27-8089-26.1818-287781
 BANCO- MINERO D E L PEtRU
M E T A L E S PRECIOSOS

Lime,..D5_de.. s e t A f t . . . 11 ............
g

LIQUIDACION _____FINAL ____________U :____t{r.fi

N ? 2 . . 5 8 3 86/ S P
A favor de. . . .Cx.A,....k~`1G9...5-..~.i ...~...:~ ~:)
p
or .................1142.84..Kg!.....recibidbs en._Banco_ Minero__de],_.Perl------------------el die...........25...-...2....Q6............

Guia N o 6165 Muestreados el dla....! ...05..-.i' _ 86_..:...~--

Lote............................Barra No.........................................................................Certificado de Ensayes No....82................

 Leyes AU:
Peso Bto.: . 973.1
Pundlcl6n (Ensayes)

"
'-eso Kls.
Merma.: %

Peso Neto 1,442.80 Kgs 46.39

: O R O : 46.39 0z X 973.1 = 45..14 oz X

99.5%=44.91Oz a US $ 343.00/Oz
DEDUCCI0NES:
Gastos de tratamiento = 1.84 oz X 46.39
oz G astos de comercializaoin' 2%

Focomi I 5%
Focomi II 5%
Avanoe Account 10%
Imjporte liq. Provisional No 2578 86/SP
(25.2.86) (' Gasto de ensaye lab/ Alfred H.
Knight del Perd.
 Cotlzaclones: US $ 343.00/Onza
London(Afternoon Fix) promedio de la
semana del 24 al 28 de Febrero
1,986

0
15,404.13

$. 85.36
308408 393.44
US $
$.750.53....
750.53
1,501.07. ..
9,247.18
8.00 12.257.31
US $. 2,753.38
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PRECOSOS
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