Ann: Imminent Commencement of Drilling at Macauley Creek, page-12

Grub,
MaCauley Creek MOU The parties to the MaCauley Creek Copper-Gold Porphyry Project MOU are Inca and MRG Resources Pty Ltd (MRG). It is open-end but which can be terminated by either party giving one-months’ notice. The MOU provides agreed terms and conditions for the acquisition by Inca from MRG of the MaCauley Creek Project to be negotiated in good faith. These terms and conditions are: • Inca to acquire 90% of MaCauley Creek by meeting exploration commitments of EPM27124 and EPM27163 with the following annual breakdown: o Year 1: $75,000 o Year 2: $195,000 o Year 3: $325,000 o Year 4: $400,000 o Year 5: $500,000 • Inca to repay MRG costs associated with the development of the project and the tenement applications. That amount is $55,000. • MRG has a 10% free-carry to Bankable Feasibility Study after which a 90:10 Inca/MRG joint venture will be formed. • MRG has a 1.5% net smelter royalty.