Set Ga Done Property, Union of Myanmar

Set Ga Done Property, Union of Myanmar

On March 31, 2003, the Jet Gold entered into a memorandum of understanding ("MOU") with Leeward Capital Corp to participate in the acquisition, exploration and development of an exploration block consisting of 700 square km. located in Shan State, Union of Myanmar. Pursuant to the MOU, Jet Gold will expend an initial US$200,000 in acquisition and exploration costs and will advance US$50,000 as a refundable performance bank guarantee to the government of Myanmar. Subsequent expenditures will be shared equally with Leeward. Leeward has entered into an agreement with the government of Myanmar to earn a 75% interest in the property, subject to certain back-in provisions reserved by the government of Myanmar. The interest may be earned by expending approximately US$1,750,000 in exploration on the property over a three year period and an additional US$1,000,000 on a feasibility study. These expenditures will be shared equally between Jet Gold and Leeward. Once the interest has been earned, Jet Gold and Leeward will each have a 37.5% interest in the property, with the government of Myanmar holding a 25% carried interest. The agreement is subject to regulatory approval.