North Bay Resources Inc (NBRI)

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Good morning NBRI!

Money coming this week.

Effective October 24, 2012, the Registrant (“North Bay”) executed a mineral property option agreement (the "Agreement") with Caribou King Resources Ltd. ("Caribou"), a Canadian issuer listed on the TSX Venture Exchange, pursuant to which Caribou may earn up to a 100% interest in the registrant's “Willa 5” and “Silver Jen” mineral claims (the “Willa Claims”) in southeastern British Columbia.

Under the terms of Agreement, Caribou may earn up to a 100% interest in the Willa Claims by making aggregate payments to North Bay of USD $232,500 in cash and issuing 1,000,000 shares of Caribou common stock. Of the aggregate payments, $7,500 in cash and 500,000 shares are due upon receipt of regulatory acceptance of the agreement by the TSX Venture Exchange, $50,000 cash and 500,000 shares of Caribou stock are due upon the first anniversary of the Agreement, and a $175,000 cash payment is due upon the second anniversary of the Agreement.

In addition to the consideration received, North Bay shall be granted a royalty equal to 2% of net smelter returns ("NSR"). At any time up to the commencement of commercial production, Caribou may purchase one-half of the NSR (being 1%) in consideration of USD $1,000,000 payable to North Bay, such that North Bay will then retain a 1% NSR.