Exhibit
10.7
CONVERTIBLE
PROMISSORY
NOTE
$50,000.00
January 21,
2005
FOR VALUE RECEIVED,
Little Squaw Gold Mining Company, an Alaska corporation, (the
“Company”) promises to pay to Wilbur G. Hallauer, or
order, the sum of Fifty Thousand and No/100 Dollars ($50,000.00),
on demand, or, if no demand is made, on July 20, 2005 (the
“Maturity Date”), plus interest accruing at the rate of
six percent (6%) per annum from January 21, 2005, forward.
Interest only will accrue and be payable on the unpaid
principal balance on the quarterly anniversary dates (with the
first interest payment being due on April 21, 2005) until the
Maturity Date or such time as demand has been made by the holder
hereof in writing for payment of the principal balance. On
the demand date, or the Maturity Date, the entire principal
balance, together with any accrued and unpaid interest, shall be
due and payable. All payments will be made to the holder at
406 Eastlake Rd., Oroville, WA 98844..
If the principal
balance, together with accrued and unpaid interest, shall not be
paid in full upon demand, or upon the Maturity Date, then the total
of the principal and accumulated interest at that time due and
owing shall incur a penalty interest rate of twelve percent (12%)
per annum until paid in full. If t
