Forester Lake Gold Property

Terms of the Benton Resources Option Agreement

The Property was optioned from Benton Resources Inc., of Thunder Bay Ontario, on March 7, 2011.

The agreement gives Parkside the right to acquire an undivided 60% interest in and to the Property, with an option to earn up to a further 10% interest, subject to the following:
  • The payment from Parkside to Benton of a total of $50,000. $15,000 upon the date the agreement is fully executed (paid), an additional $15,000 on or before March 7, 2012 (paid), and an additional $20,000 on or before March 7, 2013;
  • The issuance to Benton of 1,000,000 shares of Parkside on the date the Option Agreement is fully executed (issued);
  • The expenditure by Parkside of a minimum of $300,000 in exploration costs on the property on or before March 7, 2014, with a minimum of $100,000 to be expended in each twelve month period;
  • The provision by Parkside to Benton with copies of all exploration data and results by December 1 of each year of the Option Agreement;
  • Parkside may acquire a further 10% interest in the Property by incurring an additional $700,000 in exploration costs within 36 months of providing notice to Benton;
  • Parkside must expend a minimum of $150,000 before terminating the Option; and
  • If the initial option terminates, Parkside will ensure the property is left in good standing with respect to assessment work for a minimum of 12 months from the termination date.
  • If prior to completion of a mine construction program and attainment of commercial production of minerals from a mine if either Benton or Parkside has its respective interest in the Forester Lake property reduced to less than 10%, then its interest shall be converted to a net smelter returns royalty equal to 2% net smelter returns.