ECUADOR GOLD AND COPPER CORP V.EGX

Ecuador Royalty and Fees

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Environment and Ecuador Government Royalty and Fees

Reports describing in detail all exploration work and expenditures carried out by the concession owners are required to be submitted annually to the Ecuadorean government by a set anniversary date. Copies of the 2012, 2013 and 2014 reports submitted for each mining concession were submitted on time and the 2015 report is ready and is planned to be submitted in a timely manner.

An annual environmental audit report must be submitted to the Ecuador government for approval before exploration in subsequent years can proceed. The environmental impact of the proposed exploration work and all remedial work that has been performed is reported. All reports have been submitted. Further environmental due diligence will be required before the project can proceed to production. All mine production is subject to royalty payments to the Ecuador Government, as follows:

1. 1)  Gold and silver – a minimum of 5% gross value of bullion produced; and

2. 2)  Base metals, including copper, lead, and zinc - a minimum of 5% gross value of metals produced.

3. 3)  Other than the above royalties and annual tenement rents for the Condor Gold Project concessions

   anticipated to total $146,000 per year, no other royalties, rents, fees or other payments are known to be required to be paid on mine production or exploration rights