These are the JV terms between Royal Falcon and Drake...

These are the JV terms between Royal Falcon and Drake Resources:

1) Royal Falcon must spend US$3 million to earn a 51% interest in the Falun and Bersbo Projects. Royal Falcon can withdraw from the agreement after spending a minimum of US$1.0 million; Drake retains a 100% interest in the Projects until the US$3 million is expended.

2) Royal Falcon can elect to spend a further US$3 million to earn an additional 24% interest in the Falun and Bersbo Projects.

3) Drake will have the right to fund their respective share (49% or 25%) of project exploration, feasibility, mine development, or mine development costs when these funding requirements have been met

4) If Drake’s project interest falls below 5% then their interest will revert to a 2% Net Smelter Royalty (“NSR”) on production from the Falun or Bersbo Projects.

5) Drake will, initially, continue to manage all exploration on the Falun and Bersbo Projects

JB