INTERNATIONAL FRONTIER RESOURES LTD. LETTERHEAD
INTERNATIONAL FRONTIER RESOURES LTD.
LETTERHEAD
February 6, 1998
TO: PACIFIC ROYAL VENTURES
RE: TULITA DISTRICT LAND CORPORATION, FORT ▇▇▇▇▇▇ - N.W.T.
Pursuant to the terms and conditions of our letter agreement dated April 30, 1997 ("First Right of Refusal") and pursuant to Clause 11.01 ("Area of Mutual Interest") of our Joint Venture Agreement dated October 21, 1997, International Frontier Resources Ltd. hereby offers to Pacific the right to participate in the acquisition of the Tulita District's Freehold lands under the following terms and conditions:
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CONDITIONS: |
Pacific agrees to the terms and conditions contained in the Freehold Lease and Grant, Surface Access and Benefits Agreements entered into between Frontier and the Tulita District Land Corporation |
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OFFER: |
PACIFIC TO PAY 25% OF THE COSTS SET FORTH BELOW TO EARN A 20% WORKING INTEREST IN THE FREEHOLD LEASES: |
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GROSS AMOUNT |
NET AMOUNT |
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OPTION PAYMENT LEASE COSTS: |
$125,000 |
$31,250 |
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April 30, 1998 |
$125,000 |
$31,250 |
|
April 30, 1999 |
$125,000 |
$31,250 |
|
April 30, 2000 |
$125,000 |
$31,250 |
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TDL ACCESS AGREEMENT |
$ 50,000 |
$12,500 |
|
LEGAL FEES |
$ 15,000 |
$ 3,750 |
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WORKING INTEREST: |
20% |
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|
|
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ENCUMBRANCES: |
15% Lessor G.O.R. 1% NET G.O.R. to IFR |
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WORK PROGRAM: |
Pacific to pay 25% of the first $1 million spent on seismic covering the TDL Freehold leases to earn a 20% working interest. |
/s/ "▇▇▇▇▇ ▇▇▇▇"
Pacific Royal Ventures
/s/ "▇▇▇ ▇▇▇▇▇▇▇"
International Frontier Resources Ltd.