Section 3: SPECIAL EXCLUSIVE PROSPECTING LICENCES FOR AREAS OUTSIDE LEASE AREA

(a) In the event that the Government shall grant to the Company upon application a Prospecting Licence for titanium-bearing and associated minerals over an area which is not included in the Mining Lease Area, the terms and conditions set out in Clause 4 hereof shall apply thereto. 12 No. 4 Sierra Rutile Agreement (Ratification) Act 2002 (b) The provisions of the Minerals Act relating to exclusive prospecting licences shall apply to all Prospecting Licences granted hereunder except to the extent inconsistent with the special provisions incorporated in this Agreement