In order to acquire an 100% interest in the Ana Maria and El Laberinto properties in Mexico, Gray Rock is issuing Avino warrants to acquire 300,000 shares of Gray Rock at an exercise price of $0.20 for 36 months. Gray Rock must also pay Avino a total of $600,000 in cash or shares and incur a total of $750,000 in exploration expenditures both staged over 4 years. Gray Rock also granted to Avino a right of first refusal on 60 days' notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino's mine facilities.