Altai has a 40% equity interest in Altai Philippines Mining Corporation (“APMC”) and has a direct 10% Net Smelter Return (NSR) royalty interest in all properties in which APMC has an interest. Alternatively, Altai may elect to give up its 10% NSR interest in return for building and owning 80% of the ore processing facilities; in such event, Altai will buy the ore from APMC by paying a royalty equal to 10% of the direct mining costs of the ore delivered to the processing facilities. APMC will subsequently have 20% ownership of the processing plant.

In the event that properties are joint-ventured, leased or sold to a third party interest(s), 60% of residual proceeds will accrue to Altai until it recovers its past expenditures in the Philippines and 40% to APMC. After recovery of Altai's expenditures, proceeds will be shared equally.