Cline Mining Corporation T.CMK

Realted Parties

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Transactions with Related Parties

Transactions with related parties are incurred in the normal course of business and recorded at the exchange amount, being the price agreed between the parties.

During the third quarter 2011 and nine-month period 2011, companies related to or controlled by officers and directors of the Company were paid $158,751 and $476,253 respectively (third quarter 2010 and nine-month period 2010: $158,751 and $433,333 respectively) and performance bonuses aggregating $210,320 (third quarter 2011 and nine-month period 2011: $Nil and $170,500) with respect to consulting and management fees. In addition, certain officers of the Company, who also acted as directors were paid a total of $24,000 and $72,000 respectively (third quarter 2011 and nine-month period 2011: $12,000 and $36,000 respectively) with respect to directors fees. Effective December 1, 2010, the Company renewed Management and Administrative Services Agreements with companies related to or controlled by officers of the Company with respect to consulting services. The agreements are for a five year term and payments pursuant to these contracts aggregate $65,417 per month.

Anyone know what this service relates to - I hate related party transactions !!