The option agreement is still in force and being followed today. A brief summary of key option terms relating to Teck Resources Ltd. earn in are below:

In 2005, Teck was granted an option to earn an initial 51% interest in the property by spending $9,000,000 on exploration, with minimum budgets of $1,500,000 per year.

Teck may exercise the Option and Earn In 51% of the Lorraine Property by incurring the following expenditures (which do not include 2005 program expenditures):

· December 31, 2006: Teck shall incur a minimum of $1,500,000 in Expenditures.
· December 31, 2007: Teck shall incur a minimum of $3,000,000 in Expenditures in the aggregate.
· December 31, 2008: Teck shall incur a minimum of $4,500,000 in Expenditures in the aggregate.
· December 31, 2009: Teck shall incur a minimum of $6,000,000 in Expenditures in the aggregate.
· December 31, 2010: Teck shall incur a minimum of $7,500,000 in Expenditures in the aggregate

The amounts are cumulative, aggregate amounts and any excess in the amount of Expenditures required to be incurred shall be carried over and included in the aggregate amount of Expenditures for the subsequent period.

After delivery of the Earn-in Notice Teck will have the right to earn an additional 9% interest in the Property by sole funding and completing a Feasibility Study.

After delivering the Earn-in Notice Teck shall incur a minimum of $500,000 in Expenditures per calendar year until the completion of a Feasibility Study or earlier termination of the right to earn the Additional Interest.

If for three consecutive years Teck has not incurred a Minimum Program then the right to earn the Additional Interest shall terminate and a JV will be formed and Teck shall have no further obligation to sole fund Expenditures and its rights to earn the Additional Interest shall terminate.

Teck shall have the option to earn an additional 5% interest in the Project if a positive production decision is made by finding financing for Lorraine Copper.

To summarize the option agreement, Teck's ownership in the property can go up to 65% if a production decision is made and in this situation Lorraine Copper would be a 35% owner in a producing mine.