In addition, the CVG is party to an agreement dated May 16, 2002 with the
Ministry of Mines (“MIBAM”). As the CVG’s rights thereunder are contingent upon the
CVG continuing to satisfy its obligations, while the Company has no reason to believe
the CVG is not performing its obligations thereunder, any failure to do so could result in
MIBAM having the right to terminate such agreement, thereby effectively terminating the
Mine Operating Contract. Furthermore, any failure by the CVG to assert its rights under
its agreement with MIBAM could have a material adverse effect on the Company’s
rights under the MOC. To date, no assertions of contractual breaches by the Company
have been received.

Now there is an interesting legal factoid.