US$50,000 and issue 200,000 unrestricted shares to Phoenix. · First Cobalt can earn a 51% interest in Borah Resources Inc, the Company's 100% owned subsidiary and owner of the Redcastle property, by spending no less than US$1,500,000 in exploration and related work on Redcastle over an initial three year period, and by paying a further US$100,000 to Phoenix on the third anniversary of the Agreement ("Phase 1"). · Subject to the completion of Phase 1, First Cobalt may earn an additional 24% interest in Borah Resources, for a total interest of 75%, by spending no less than a further US$1,500,000 in exploration and related work on Redcastle over a further two year period, and by paying a further