Aquila Resources Inc. (fka AQARF)

[buddhabelly2]

If a feasibility study is not completed, and all applications for permitting are not
submitted on or before the fourth anniversary of the Agreement (August 6, 2013), the
Company has the right to acquire HudBay’s 51% interest in BFJV by reimbursing 50%
of HudBay’s total expenditures in respect of the Project incurred from the date of
execution of the Agreement. If the Project is not brought into commercial production
within four years from the grant of mining permits, the Company may acquire HudBay's
65% joint venture interest by reimbursing 50% of HudBay’s total Project expenditures
incurred after the date of execution of the Agreement. Notwithstanding the Company
exercising the foregoing right, HudBay retains the marketing and product rights as
provided for in the Operating Agreement. If the Company exercises its right to acquire HudBay’s interest in the Project, HudBay’s participating interest will be converted to a
1% NSR.
March 31st Financial Statement