AMENDMENT
NO. 1 TO ASSIGNMENT OF MINERALS LEASE
This
AMENDMENT NO. 1 TO ASSIGNMENT OF MINERALS
LEASE is entered into as
of
February __, 2006 (this “Amendment”)
between CM Properties, a sole proprietorship (“CMP”),
and
Novastar Resources Ltd., a Nevada corporation (“Novastar”).
WHEREAS,
CMP and Novastar entered into an Assignment of Minerals Lease dated as of
December 31,2005 (the “Agreement”);
and
WHEREAS,
CMP and Novastar desire to clarify the remedies available to CMP in the
event
of
a breach of the Agreement.
NOW,
THEREFORE, in consideration of the mutual promises of the parties hereto, and
of
good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,
the parties hereto agree as follows;
1. Remedies.
CMP and
Novastar agree, notwithstanding any other provision in the Agreement, that
the
sole remedy available to CMP for a breach of the Agreement by Novastar
shall
be
the termination of the Agreement by CMP and that no further relief or recourse,
whether at law, in equity, or otherwise, will be available to CMP. Without
limiting the generality of the foregoing,
notwithstanding any breach by Novastar of the Agreement, whether occurring
heretofore
or hereafter, CMP shall not be entitled to money damages, an injunction or
any
recourse
or remedy other than termination of the Agreement.
2. Agreement.
In all
other respects, the Agreement shall remain in full force and
effect.
3. Counterparts.
This
Amendment may be executed in two or more counterparts, each
of
which shall be detuned an original but all of which together shall constitute
one and the same
instrument.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
IN
WITNESS WHEREOF, the parties hereto have duly executed this Amendment as
of the
date
first above written.
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CM
PROPERTIES
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By: |
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Name:
CHARLES
H. MERCHANT, Sr.
Title:
OWNER
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NOVASTAR
RESOURCES LTD.
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By: |
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Name:
SEAN
MULHEARN
Title:
SECRETARY
–NOVASTAR
RESOURCES LTD. 3/5/06
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