Notes to the Consolidated Financial Statements (All tabular amounts stated in thousands of United States dollars unless otherwise indicated) Central African Republic (“CAR”) On June 1, 1999 the Company entered into a Heads of Agreement (the "HoA") with AXMIN to form a joint venture  for the further exploration and development of the Bambari property in the CAR. The Company holds its interest in this property through a CAR registered company, Aurafrique, which holds prospecting and exploration permits for  the property. The HoA gave AXMIN an exclusive option, until December 31, 1999, to complete a minimum of 2,500 metres  (actual – 3,520 metres) of reverse circulation (“RC”) drilling on the Bambari anomaly previously defined by the Company and then elect to form a joint venture. AXMIN agreed to assume all of the Company’s carrying costs in  the CAR and utilize certain of its technical staff on an as required basis. AXMIN exercised its option to form the joint  venture on January 17, 2000. AXMIN had the right to earn a 51% interest in Aurafrique by completing, at its cost, a further program of 4,000 metres of RC drilling and regional exploration programs covering 200 sq. kms. of the Bambari permit. AXMIN earned a 51% interest in Aurafrique effective August 31, 2000. AXMIN had the further right to increase its interest in Aurafrique to 60% by making additional exploration expenditures of US$500,000. Thereafter, the Company was to be entitled to participate pro rata or convert to a carried interest through bankable feasibility in which case AXMIN could earn a 75% interest. As at December 31, 2000 and immediately prior to completion of the RTO Transaction the Company had a 49% and AXMIN had a 51% beneficial interest in Aurafrique. The HoA also provided for annual payments to be made to the Company by AXMIN until such time as a bankable  feasibility study has been completed as follows: The parties never entered into a joint venture agreement to govern the development of the Bambari project. On November 21, 2001 the Company successfully completed the reverse take-over of AXMIN. Subsequent to the reverse take-over and as at December 31, 2001 Aurafrique is a wholly owned subsidiary of the AXMIN Inc. group. See notes 1 and 4(b). The Bambari property is subject to a 2% net smelter royalty payable to United Reef Limited, a company previously related to the Company, from production once all capital expenditure has been recovered by Aurafrique. AXMIN has a 65% interest (net of the 20% carried interest of the government of Mali) in the Kofi property from joint venture partner African Selection Mining Corporation (“ASMC”) (YAF.U-CDNX). AXMIN may increase its interest to 80% by buying out the interests of other parties on submission of a bankable feasibility study on an independent net present valuation of the proven and probable reserves using a discount rate of 15%. AXMIN has a 65% interest (net of the 20% carried interest of the government of Mali) in the Satifara property from joint venture partner ASMC. AXMIN may increase its interest to 80% by buying out the interests of other parties on submission of a bankable feasibility study on an independent net present valuation of the proven and probable reserves using a discount rate of 15%. AXMIN may earn up to a 72% interest (net of the 10% carried interest of the government of Ghana) in the Cape Three Points property from joint venture partner Consolidated Minerals Limited (“Consmin”) by carrying Consmin through to completion of a bankable feasibility study. AXMIN has a 100% interest in the Sounkounkou property from joint venture partner Avgold Limited (“Avgold”). Avgold may, at any time prior to a decision to mine or within three months of a decision to mine, claw-back up to a 51% participating interest in the project by paying AXMIN an amount equal to two times the funds expended to that date by AXMIN, multiplied by the percent interest to be clawed back by Avgold. The government of Senegal retains the right at the time of a decision to mine from the property, to elect to participate in the project for a 15% free  carried interest and has a further right to purchase an additional 5% participating interest. The government’s interest is subject to reduction upon negotiation at the mining stage. Senegal Ghana Mali – during 2000 – Cdn$50,000 (paid) – subsequent years – Cdn$75,000 (2001 paid subsequent to December 31, 2000) 17