STAMIGOLD COMPANY LIMITED

Plot No. 417/418 United Nations Road

Tel.: +255 (0) 22 2151717 P.O. Box 75805

Fax: +255 (0) 22 215319 A Subsidiary of STAMICO Dar es Salaam
E-mail: info@stamigold.co.tz TANZANIA

02 MAY 2018

MINUTES OF THE NEGOTIATION MEETING FOR HIRINGRC DRILL RIG FOR PROJRCT 8
DRILLING BETWEEN STAMIGOLD(CLIENT) AND BASE DRILLING (CONTRACTOR)

PARTICIPANTS:

A. FROM STAMIGOLD COMPANY LIMITED(SBM)-

1. Rashid Lulanga – Chairman

2. Bwire K. Eliaseph-Secretary
3. Efraim Herman – Member
4. Neno Kamilifu – Member (Absent)

B. FROM BASE DRILLING & MINING SERVICE

1. Baltazary Juma Mtei
2. Sammy Baltazary

I. Opening of the meeting

The meeting was opened at 1210hrs at Stamigold Board room where
the chairman allowed every participant to make self-introduction.

II. Adoption agenda

The meeting adopted the following agenda.
1. Opening the meeting and adoption of agenda;
2. Contract duration;
3. Scope of work
4. Contract rate
5. Performance of the equipment
6. Credit Facility (payment terms)
7. Back charges

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 8. Delivery of the machine
9. Liquidated Damage
10.Safety related issues
11.Statutory levies and taxes;
12.Communication and supplier relationship
13.AOB;
14.Closing of the meeting.

III. Contract Duration

Together we agreed the contract duration for hiring RC drill rig to be
for one month for drilling estimated 2,500 meters, and if extension
will be required it will be after both sides to agree the time of the
contract to be extended where necessary.

IV. Scope of work

It was agreed that the scope of work will be for drilling 2,500 meters
at project 08 where this work is supposed to be completed within one
month. Contractor agreed to comply with those terms and added that
they can manage to drill at least 80 meters per day.

V. Contract Rate

Both parties agreed the rate of $59.5 (excluding VAT but inclusive
fuel) per meter drilled from 0-200mtrs and diameter will be instructed
by user. The rate agreed of $59.5 will be converted into Tanzania
Shillings by using the exchange of negotiation date (1$=TZS: 2,251)
and this rate will be applied for the whole contract price i.e.
2,500*2251*59.5=TZS: 334,836,250

-If client will supply fuel to contractor, during the invoice contractor
will be back charged fuel consumed at the rate of EWURA price of the
month at Bihamulo and also will be back charged TZS: 25,000/ per
staff per day for food, accommodation and laundry service which is
offered at site also medical service will be back charged as per how
the patient attended by SBM clinic.

VI. Performance of the Equipment

Together we agreed that the RC drill rig must in good condition as it

was inspected and tested by inspection team so that the work to be

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 completed as agreed time of one month and drilling at least 80 meters
per day.

VII. Credit Facility

Both parties agreed the following
-Advance payment of $3,000 for mobilization
-Demobilization 0f $1,600 will be paid immediately after work
completion and confirmed by user (senior/chief geologist)
- Other cost will be paid 45days after work completion and receiving
of all necessary documents like invoice and certificate from user
department.

VIII. Delivery of the Equipment at site

Together we agreed delivery of the machine will be one day after
payment of mobilization which is $3,000/

IX. Liquidated damage

Contractor will be charged 15% of the contract sum if performance
will be below 85% of the work. Also contractor will be charged 0.15%
of the contract value per day if stop to work two days consecutively
without information and agreement to both sides. If contractor will
stop working for any reason (breakdown, shortage of manpower etc.)
for 7 days consecutively automatic the contract will be terminated.

X. Safety Issues:
Contractor agreed to abide with Stamigold Health and Safety
Standards for the whole time when they will work here like wearing
safety gears etc. also the equipment will be inspected by safety
before to start the work.

XI. Statutory levies and taxes

It was agreed that, SBM shall deduct all statutory payment such as
local levies of 0.3% for every payable amount for service rendered by
suppliers; and withholding tax where applicable.

XII. Communication and supplier relationship

Both sides agreed to have close communication in case of anything
which may happen, example delays in payment. Also to have good
relationship for both sides

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 XIII. AOB
-Contractor requested to delays especially when requesting gate pass
for making service of machine or looking for spare outside of the camp
-RDO of one day after fourteen working days

XIV. Closing of the meeting

There being no further business to transact, the meeting was closed at 1740
Hours

DATED this 02nd Day of May, 2018

……………………………
Rashid Lulanga ……………………………………
Chairperson Bwire K Eliaseph
Secretary

……………………………………
Baltazary Juma Mtei
Contractor representative