TERMINATION AGREEMENT

TERMINATION AGREEMENT

1.   Silver Reserve and Sage entered into an option agreement dated August 21, 2006, as amended by an Amendment dated March 30, 2007, and a further Amendment dated August 20, 2007 (as amended, the “Original Agreement”) pursuant to which Silver Reserve acquired an option on twelve mineral claims located in the Como Mining District, Lyon County, Nevada (the “Como Claims” described in Schedule A), and assumed an obligation to stake additional claims to be governed by and form part of the Original Agreement; and

2.   Silver Reserve desires to terminate the Original Agreement and pursuant to the Original Agreement convey to Sage a royalty interest in certain of the additional claims as designated by Sage and as described in Schedule B hereto (the “Additional Claims”).

NOW THEREFORE, Sage and Silver Reserve agree as follows:

1.   Termination

The parties agree that the Original Agreement is hereby terminated and that all obligations and notice requirements under the Original Agreement have been satisfied and/or waived, as applicable, except that Silver Reserve agrees to pay the annual claim maintenance fee for the Como Claims due on September 1, 2008. Silver Reserve acknowledges that as of the effective date of this Termination Agreement it has no interest in the Como Claims by way of the Original Agreement or otherwise.

2.   Ownership of Additional Claims and Grant of Royalty

Sage acknowledges that it has no interest in the additional claims staked by Silver Reserve pursuant to the Original Agreement except for a one percent (1%) Net Smelter Returns royalty interest granted by this Termination Agreement in the Additional Claims. The royalty shall be calculated and paid in accordance with the provisions of Schedule C attached hereto. Silver Reserve shall have no obligation to keep the Additional Claims in good standing or pay the annual claim maintenance fees after making the payment due on September 1, 2008; provided, however, if Silver Reserve conveys or otherwise transfers the Additional Claims, Silver Reserve shall notify such transferee of the royalty created hereby but shall have no further liability to Sage following transfer of the Additional Claims. The parties agree to cooperate in the recording of an appropriate document evidencing the royalty created hereby in the Additional Claims. If Silver Reserve proposes to abandon the Additional Claims it shall first offer to convey the Additional Claims to Sage.

IN WITNESS WHEREOF the parties have executed this Agreement effective as of the date first written above,

SCHEDULE A

TO

SAGE / SILVER RESERVE TERMINATION AGREEMENT

DATED August ____, 2008

DESCRIPTION OF COMO CLAIMS

Claims in the Como Mining District, Lyon County, Nevada

The following unpatented mining claims have been located within the sections of the public land survey indicated below and the location notices thereof are of record in the Nevada State Office of the Bureau of Land Management and the Office of the Clerk/Recorder of Lyon County as follows: