Exhibit 10-2 Linda Caron, M.Sc., P.Eng. Consulting Geologist Box 2493 Grand Forks, B.C. V0H 1H0 phone: (250) 442-5078 fax: (250) 442-0256 email: January 14, 2004 Mr. Roy Brown New Pacific Ventures, Inc. via fax (604) 689-9733 Dear Mr. Brown, New Pacific Ventures, Inc. has acquired the Riley claim near Lac La Hache in central B.C. This claim was formerly part of the Murphy Lake property, a property that I worked on briefly in 1999. My December 1999 report on the Murphy Lake property includes a budget for recommended Phase 1 and Phase 2 work programs on the Murphy Lake property. A portion of the proposed Phase 1 and Phase 2 programs was work recommended for the Riley claim. As requested, I have broken down the budget to reflect only that portion pertaining to work on the Riley claim. The same unit costs (ie. cost per metre for drilling) are used as in my 1999 report. These may have changed slightly over the past 5 years. Note that there are no management or consulting fees included in the costs estimate. Depending on how your work program is to be structured, you may want to increase the budget to allow for those. A contingency of about 10% is added to the total. Phase I Budget $ 160,000 Linecutting 54 km @ $550/km $ 29,700 Geophysics 54 km mag/VLF @ $430/km 23,220 35 km IP @ $1400/km 49,000 recce MaxMin EM 5,000 Geology (including bedrock mapping, Quaternary geology study, Prospecting and data compilation) 20,000 Geochemistry (silt and till sampling collection + analysis) 15,000 Report 5,000 __________ Subtotal $ 146,920 10% contingency $ 13,080 __________ PHASE 1 TOTAL $ 160,000 Phase 2 Budget: $ 130,000 Drilling 100 metres @ $80/au $ 80,000 Geology (core logging) 15,000 Geochemistry (core sampling and analysis) 15,000 Report 6,000 __________ Subtotal $ 116,000 10% contingency $ 14,000 __________ PHASE 2 TOTAL $ 130,000 I trust this provides you with the information you need. My invoice for updating the budget is also attached. Please don't hesitate to call if you have any questions regarding the above. Yours truly, /S/l. Caron Linda Caron Consulting Geologist