cqt stays true to its stated mission ..., page-7

Shane,

The best part of the deal done with GFA is that even though they spent their $5mill after the first year it has entitled them to nothing. So if they walk now we have plenty of info about the area and it didn't cost CQT a cent.

The following extract is from the July 07 ann. which shows a lot of drilling needs to be done prior to any benefit to GFA. That is why a lot of soul searching will be done by end of Nov as to whether it is cheaper to pay us out or continue the JV as agreed.

As far as JV agreements they don't get much better than this for the land owner. You can bag management for a lot of things, but not on the negatiations of this JV or the last 68c placement done.

* GFA is required to drill 150,000 metres within three years in order to earn 51% of the wider regional JV tenements area, excluding the Mt Carlton project . This essentially means GFA bears all the exploration risk.

* Under the terms of the Joint Venture Agreement GFA is initially obligated to spend a minimum of $5m within the first 12 months, a condition which, without satisfying the drilling requirement, gives GFA no entitlements whatsoever.

* After meeting the drilling requirement (150,000 metres) GFA will have the option to purchase 50% of Conquest’s excluded area (Silver Hill & Mt Carlton). GFA will be required to pay Conquest in cash an amount based on the independently determined Net Present Value at that time. That NPV will reflect the results of Conquest’s continuing aggressive exploration and development program at the excluded area.

* After meeting the drilling requirement (150,000 metres) GFA will have the option to purchase a further 24% of the wider regional tenements area. GFA will be required to pay Conquest in cash an amount based on an independently determined Net Present Value at that time.