Ann: Avanco Acquires Pantera Project from Vale, page-2

The structure of the deal looks great. No dilution. Low capital upfront and spread out over multiple years of which AVB can back out if they don't like it. Still reading up more on the asset.

This is stage 3 baby!!!

SUMMARISED TRANSACTION TERMS • Non-refundable US$500,000 on signing of the “Pantera Acquisition Option”. (Completed) • The Option provides Avanco the right to acquire 100% of Pantera by either: a) Completing 14,000 metres of drilling within two years and subsequently agreeing JORC compliant Measured and Indicated Resources hosted within the whole of the Historical Mineralised Zone*. Thereafter establishing the “Acquisition Price” calculated at $0.04/lb of contained copper**. Avanco can then exercise The Option by beginning payment of the acquisition monies to Vale. Following the exercise of The Option, beyond two years and up to five years, Avanco shall complete the drilling in the Historical Mineralised Zone and any contained copper in addition to 400,000 tonnes will incur a higher Acquisition Price based on an incremental cost of $0.06/lb of copper, or b) The Option can be exercised at any time (with or without drilling) by agreeing an Acquisition Price based on a non-JORC compliant estimation of 400,000 tonnes of contained copper within the Historical Mineralised Zone*, valued at US$0.04/lb of copper. • In both cases, payment of the Acquisition Price to Vale are capped at $3 million per annum. Management estimate the acquisition cost will likely range between US$20 million and US$35 million, determined largely by the strategy adopted in a) or b) above. Consequently, it is anticipated that the payment period will be spread over a 7 to 12 years period. • On electing to exercise The Option and making the first annual payment, Vale will transfer the mineral rights to Avanco. • Any copper resources discovered by Avanco outside of the Historical Mineralised Zone (for example those discovered in the eastern part of the license) will not attract an increase to the Acquisition Price. • Any future production from resources hosted outside of the Historical Mineralised Zone but within the boundaries of Pantera will be subject to a NSR royalty to Vale of 1% on copper. • The agreement obliges Avanco to honour an underlying royalty previously assigned to BNDES of 1.5% on gross revenue. • The Company undertakes to keep the mineral rights in good standing • Avanco retains the right to withdraw from the transaction without penalty.