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April 24, 2012
Sierra Gorda Mine
Suite 2414 Four Bentall Centre
1055 Dunsmuir Street
Vancouver, BC Canada V7X 1K8

Re: Sierra Gorda Preliminary Parts Management Plan

Quotation # 9304/9305-21298041rev.1

CONFIDENTIAL PROPOSAL FOR SIERRA GORDA MINE PERSONNEL ONLY

Hello,

We have compiled a preliminary Parts Management Plan for your proposed unit at the Sierra Gorda Mine. Our Parts
Management Plan is based off the quotations from Kevin Henderson, quotation numbers 211192041 and 211191041.
This quotation is subject to change at time of final order.

This list is arranged in three categories: Scheduled Service Kits, Rotables and Critical Spares. Scheduled service kits are
based on operational hours and are intended to include all components required to be replaced as outlined in your
Preventative Maintenance Schedule. The scheduled replacement of these components will allow easier planning of
maintenance and minimize disruption in production due to unplanned down time. Rotables include regularly replaced
items that are not necessarily replaced at a given interval, but are recommended to be kept in stock at the mine. Finally,
Critical Spares are components that, if damaged or compromised, would impact the availability of the equipment due to
either the criticality of the component or the extensive lead time involved in purchasing a replacement.

We want to assure you that we stand committed to providing you with the highest standards of service in the mining
industry. We look forward assisting you with any needs that may arise with your TowHaul unit and want to be sure that
your unit is in service for many years to come. Thank you for the opportunity to provide this proposal, please don’t
hesitate to contact me with any questions or concerns you may have.

Best regards,
TowHaul Corporation

Kristine Beardsley
Service Department/Parts

1
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com
 Decrease Your Costs
Increase Your Mobility

April 24, 2012

Sierra Gorda Mine
Suite 2414 Four Bentall Centre
1055 Dunsmuir Street
Vancouver, BC Canada V7X 1K8

Re: Sierra Gorda Preliminary Parts Management Plan

Quotation # 9304/9305-21298041rev.1

CONFIDENTIAL PROPOSAL FOR SIERRA GORDA MINE PERSONNEL ONLY

Quotation # 9304/9305-21298041rev.1 RGS-LPM-200-56-22, This quotation outlines our preliminary parts management
plan for the proposed TowHaul Unit at the Sierra Gorda Mine.

Scheduled
Service
Kits Quantity Total USD
1,000 Hour Service Kit
Complete with Filter and Pickup Hook Shells 1 $ 637.42
4,000 Hour Service Kit
Complete with 1,000 Hour Service Kit plus P/U
Shaft and Keepers, Filter and P/U Hook Half Shells 1 $ 4,690.19
6,000 Hour Service Kit
Complete With 1,000 Hour Kit plus Toe Shaft and
Keepers, Turntable Assembly and Base Plate,
Filter Element, P/U Hook Half Shells and Hardware 1 $ 17,019.68

Rotables Regularly Replaced Items

Gooseneck / Truck Components
PA-2322-02r1 Pick-Up Hook Half Shell 1 $ 355.75
SM1142 Filter Element (6 Recommended) 1 $ 281.67
Subframe Bolt Package 1 $ 719.62
Load Wing Shear Pin Assembly 1 $ 667.74

Air
SM1104/1105 Emergency Dash Valve and Knob 1 $ 121.02
SM1036 Gladhand, Emergency (6 Recommended) 1 $ 11.16
SM1037 Gladhand, Service (6 Recommended) 1 $ 11.16
SLCO110205 Emergency Relay Valve 1 $ 288.31
SM1030 Column Mounted Hand Valve 1 $ 622.96

2
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com
 Decrease Your Costs
Increase Your Mobility
Hydraulics
SK18801 Seal Kit for Grab Hook and Slide Cylinders (2
Recommended) 1 $ 207.85
SK18530 Seal Kit for Main Lift Cylinder 1 $ 1,753.68
SK18536 Seal Kit for Apron Cylinders 1 $ 1,693.20

Electrical
SM1368 Wire Assembly, 7-wire c/w sockets, plugs and 75" of
wire (4 Recommended) 1 $ 419.44
SM1045 Junction Box, 7-Wire 1 $ 36.96
SM1299 Pressure Transmitter, 0-5800psi, DT 04 Deutsch 1 $ 307.45
SM1310 Pressure Transmitter, 0-580 psi 1 $ 307.45
SM1300 Pressure Transmitter, 0-3625 psi 1 $ 291.26

Park Brake Release

SM1147 (2300) Pressure Reducing Valve Cartridge 1 $ 83.87
SM1145 Solenoid Valve Cartridge, less coil 1 $ 155.00
SM1144 Check Valve Cartridge 1 $ 63.44
SM1146 24V DC Coil 1 $ 89.60

Dry Brake
140-083 Brake Drum 36 x 12 1 $ 12,040.86
145-045 Brake Lining Kit 1 $ 1,989.25
MPS2743 Wheel Cylinder Kit 1 $ 408.60

Critical Components that may affect availability of

Spares TowHaul unit
Gooseneck / Truck Components
AS-6947-01r0 Apron Assembly (4-6 Week Lead Time) 1 $ 28,102.15
* PA-2786-01r4 Turntable Base Plate (2-3 Week Lead Time) 1 $ 1,817.20
* AS-2772-02r2 Turntable Assembly (2-3 Week Lead Time) 1 $ 10,500.00

Hydraulic
SM2221260CPB Main Lift Cylinder, (est. 4-8 Week Lead Time) 1 $ 28,203.76
SM6221236CPB Apron Cylinder (2 Recommended) 1 $ 32,192.74
SM2-22-6-18 Grab Hook Cylinder 1 $ 2,472.04
* Included in the 6,000 hour service kit

Please Note: Prices and components subject to change at time of final order.

All prices quoted EXWORKS Factory, Belgrade, Montana - We Quote NET - Federal and State taxes,
import/export, duties extra if applicable

3
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com
 Decrease Your Costs
Increase Your Mobility
April 09
Terms and Conditions:

Prices: Prices in this offer are calculated based on the Buyer meeting the payment terms as
stated below. Prices Subject to Review after 30 days from date of quote. Product pricing
is quoted net to Sierra Gorda Mine.

Delivery: Delivery to be determined at time of order. Subject to Prior orders.

Terms: 50% deposit due with purchase order, remaining 50% due net 10 days payable upon
notification of completion and ready for shipment at factory.

If payment source of project involves a customer outside of the United

States, an IRREVOCABLE, CONFIRMED Letter of Credit may be required
to be opened at a first class United States Bank. The United States Bank
shall be approved by TowHaul, and TowHaul may choose to have the
Letter of Credit further confirmed at its own bank. Buyer shall pay all Letter
of Credit fees, both within the United States, and outside the United States,
including confirmation fees.

Cancellation Charges: Parts orders cannot be cancelled.

Taxes: State and/or Federal taxes, import/export duties extra if applicable

Packaging: Our policy is to package the shipment as necessary and prudent. Any extra costs
associated with packaging will be additional cost to the mine or dealer. Special packaging
will be honored at the request of and expense of the mine or dealer.
Ownership Transfer: Ownership will transfer to the buyer upon shipment from the factory.

Shipping Estimates: Shipping quotes are estimated from the initial design and are subject to change, due to all
orders being custom manufactured or “built to order”. Variance will be greater on the
larger tonnage orders. Customers or dealers are responsible for all shipping costs. The
final cost will be as specified on the invoice issued by the shipping company(s).

Warranty: All assemblies manufactured by TowHaul/Smith Equipment USA, will be warranted

against defects for a period of one year from in-service date (labor not included). All
hydraulic components and other parts will be warranted according to the coverage
afforded by the component manufacturer (labor not included). Costs of lost production
time during equipment failure repair are not warranted. Warranties do not apply to
assemblies that are subjected to capacity overload.

This warranty does NOT cover freight costs, damage due to external causes, including
accident, abuse, misuse, capacity overload, or repairing or modifying not authorized by
TowHaul in writing.
This warranty becomes null and void when the product is disassembled, welded upon, or
in any way materially altered without prior written approval by TowHaul.

Authorization for return of components must be obtained by calling the TowHaul Service
Department for a claim number. The authorized return must be shipped freight prepaid
and marked with the claim number.

4
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com
 Decrease Your Costs
Increase Your Mobility

Operator Training: TowHaul will provide operator training to operate the TowHaul products that are being
added to the Mine’s equipment. TowHaul shall in no way be responsible for standard
operator training regarding the mine’s haul trucks or other equipment. Operator training
on the mine’s equipment shall be the complete and sole responsibility of the mine.

Performance: The prime mover the mine has selected for this application is provided by the mine or
Dealer. TowHaul has provided a general Truck Performance Document that shows a
performance of ascending and descending grade, calculated by utilizing general
information available at the time, regarding the model of the prime mover to be used.
TowHaul is providing this information to the mine for planning purposes and for
incorporation into the mine’s equipment operations policies. It is the responsibility of
the mine to assess the grades and conditions of the mine haul roads, and operate
the TowHaul unit according to the mine’s internal policies. Realizing that operating
conditions change on every mine site, operation of the TowHaul Unit is therefore the
complete responsibility of the mine, and TowHaul shall not be responsible for the
operating conditions of this equipment at the mine site.

For TowHaul Lowboys, TowHaul does not recommend a speed greater than 22 mph
(35 kph) when empty. General performance is calculated utilizing the truck specs
from the manufacturer, at a speed of 5 mph (8 kph) at the top of first gear when fully
loaded. As a baseline, performance addresses the power of the prime mover, per
manufacturer spec, and the retarding capabilities of the prime mover only. It does not

include assessment of braking, stability, traction or operator techniques/skills/methods. In

the event the mine is utilizing this unit on grades greater than listed in the general
performance analysis, the mine is encouraged to perform its own tests to determine its
use beyond the general performance provided.

Limitation Of Liability:
Seller expressly disclaims any and all warranties, express and implied, including, but not
limited to, the implied warranties of merchantability and fitness for a particular purpose,
except for the warranty set forth in this section. Notwithstanding anything to the contrary
contained herein, seller shall not, under any circumstances, be liable to buyer for
consequential, incidental, special or indirect damages arising out of or related to this
agreement or the transaction(s) contemplated hereunder, even if seller has been apprised
of the likelihood of such damages. In no event shall seller’s liability to buyer for breach of
this agreement exceed the aggregate price of the product or services purchased by buyer
hereunder.

Compliance of the prime mover with regard to all safety regulations, including but not
limited to ROPS & FOPS is the express responsibility of the mine.

The unit covered by this quotation is modified from standard and/or custom designed and
manufactured to suit the needs of the customer. The performance specifications,
dimensions, load ratings, and pricing are based upon information and engineering
assessments, available at the time of quotation and order acceptance. TowHaul shall not
be bound by new information revealed through production engineering and costing
reviews undertaken prior to manufacture or by new information revealed at the time of
installation, assembly and operation of the unit into service.

5
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com
 Decrease Your Costs
Increase Your Mobility
The design used in this proposal includes proprietary information that is covered by a
current patent(s) or patent application.

Steel Surcharge:
This temporary disclaimer is being added due to the direct and significant impact of the
changing steel prices, and availability of steel. It is for the purpose of addressing the steel
issue with only those orders that are affected.

TowHaul expressly reserve the right to add a steel surcharge for those components of the
order that are greatly affected by fluctuating steel prices. The surcharge will be
determined during negotiations prior to the time of order, and may be quoted separately,
as per current market prices at that time. TowHaul shall not be held accountable for
availability of steel, but will do its best to insure at the time of order acceptance.

Thank you for the opportunity to provide this proposal. Please contact me on any points of question or concerns you may have.

Best regards,
TowHaul Corporation

Kristine Beardsley
Service Department/Parts

6
SMITH EQUIPMENT, USA
PO Box 3487 • Bozeman, MT 59772
Tel. (406) 388-3424 • Fax (406) 388-1925 • E-mail: towhaul@towhaul.com
• Web: http://www.towhaul.com