Second Amendment to Mining Lease (Randall Claims) between RS Gold, LLC and Magellan Gold Corporation
This amendment updates the mining lease for the Randall claim group in Churchill County, Nevada, between RS Gold, LLC and Magellan Gold Corporation. It changes the payment schedule for a $10,000 advance royalty due in 2011, splitting it into two $5,000 payments, and sets a deadline of December 31, 2011, for Magellan Gold to fulfill a $10,000 work obligation. If the work obligation is not met, Magellan Gold must pay the difference to RS Gold. All other terms of the original lease remain unchanged.
SECOND AMENDMENT TO MINING LEASE
(RANDALL CLAIMS)
On August 18, 2010 RS Gold, LLC, a Nevada limited liability company, and John C. Power entered into a "Mining Lease (Randall Claims)" affecting the Randall claim group situated in Churchill County, Nevada. The parties subsequently executed a "First Amendment to Mining Lease (Randall Claims)" adding an Area of Interest provision and confirming assignment of the Mining Lease to Magellan Gold Corporation, a Nevada corporation. The parties now wish to amend the Mining Lease as follows:
1.
2011 Advance Royalty Payment. The Annual Advance Royalty Payment of $10,000.00 due on August 18, 2010 (Section 1.2(b)) shall be paid as follows:
a.
FIVE THOUSAND DOLLARS ($5,000.00) payable upon execution of this Second Amendment
b.
FIVE THOUSAND DOLLARS ($5,000.00) payable on or before December 31, 2011.
2. Work Obligation. The Work Obligation of $10,000.00 described in Section 1.4 of the Mining Lease shall be fulfilled by Magellan Gold on or before December 31, 2011. In the event that Magellan Gold does not fulfill this expenditure requirement, Magellan Gold shall pay RS Gold the difference between the required expenditure and Magellan Gold's actual expenditure.
3. Continuing Effect. All other provisions of the Mining Lease shall remain in full force and effect, except as modified by the First Amendment and this Second Amendment.
DATED this 30th day of September, 2011.
RS GOLD, LLC, a Nevada limited liability company
By: /s/ Randall Stoeberl
RANDALL STOEBERL, Manager
MAGELLAN GOLD CORPORATION, a Nevada Corporation
By: /s/ John C. Power
JOHN C. POWER, President
