FOR VALUE RECEIVED, the undersigned, Dourave Mineracao e Exploracao Mineral Ltda.,
which is organized and existing under the laws of Brazil ( “Borrower” ), promises to pay to the order
of Bullion Monarch Mining, Inc., a Utah corporation ( the “Lender” ), the sum of One Hundred Sixty-
Seven Thousand Seven Hundred Sixty-Five Dollars U.S. Dollars ($167,765.00 U.S. Dollars) (the
“Principal Sum” ), together with interest which shall accrue and other amounts which may become
due in accordance with the following provisions of this Promissory Note (the “Note” ):
Installments; Interest Rate. The principal amount under this Note shall be given to
Borrower in two installments. The first installment of Eighty Thousand Dollars (USD) ($80,000) shall
be given to the Borrower when this Note is executed. The remainder of the principal amount shall be
given to the Borrower on, or reasonably near, August 16, 2010.
Interest shall be earned and shall accrue monthly from the date set forth above until this Note is
paid in full calculated using the interest rate described in the paragraph immediately below (the “Interest
Rate” ). The Interest Rate shall be five percent (5.00%), compounded monthly.
Payments; Use of Funds. Full payment of principal and interest under this Note shall
be due and payable no later than one hundred eighty (180) days from the date this Note is executed by
Borrower. Borrower agrees that it shall use the proceeds from this Note solely to secure additional
legal rights with respect to those certain mining operations generally known as Bom Jesus and Bom
Jardim in Brazil (the “Mine Properties” ) or to engage in exploration activities directly associated with
the Mine Properties.
Prepayment. Borrower shall have the right to prepay the Principal Sum and any
accrued but unpaid interest, without Lender’s prior written consent, at any time, in full or in part.
Default; Miscellaneous. Borrower shall be in default of its obligations under this Note