OPTION AGREEMENT
TO ACQUIRE MINING CONCESSION
Camila Breccia
This
option agreement dated for reference 1st February 2008 is
between Minera
Farellón Limitada , a Chilean company with an
office at Baldomero Lillo 3260, Vallenar, Huasco, III Region,
Chile (“Farellón”), and Minera
Polymet Limitada , a Chilean company formed by Red Lake
Exploration, Inc., a Nevada corporation with a registered
office at 711 South Carson Street, Suite 4, Carson City,
Nevada 89701 (“Polymet”).
Whereas
Farellón has an option to purchase the Camila mining
holdings in Chile from Hernán Alcides Iribarren Torres
and Ingenieria de Proyectos, Desarrollo, Estudios y Servicios
H.I.T Limitada, dated 7th December 2007, attached as exhibit A
(the “Camila Agreement”), and has agreed to assign
the Camila Agreement to Polymet, for valuable consideration,
the receipt and sufficiency of which are acknowledged, the
parties agree that:
|
1.
|
Farellón
grants Polymet the option to buy the Camila Agreement on the
following terms (“Option”):
|
|
a.
|
The
Option begins on the date of this agreement and ends on 21st
November 2008 (the “Term”).
|
|
b.
|
As
consideration for granting the Option, Polymet will pay
Farellón $5,000 when this agreement is signed and $50,000 by
23rd May 2008.
|
|
c.
|
Farellón
will pay the patentes due at the end of March 2008 and any other
property costs that are due during the Term to keep the Camila
Agreement in good standing, and Polymet will reimburse
Farellón on request.
|
|
d.
|
Polymet
can exercise the option at any time until the end of the Term by
notifying Farellón in writing that it intends to exercise
the Option and paying Farellón $50,000 by the close of
business on 21st November 2008.
|
|
e.
|
The
Option ends if Polymet fails to make any of the payments required
during the Term or on 21st November 2008 if Polymet fails to notify
Farellón that it intends to exercise the
Option.
|
|
f.
|
All
currency amounts are stated in United States dollars.
|
|
2.
|
When
Farellón receives the exercise notice and payment required
in paragraph 1(d), Farell
|
