On March 3, 2014, Can-Cal Resources Ltd. entered into an amended and restated material supply agreement with Candeo Lava Products Inc. The Amended MSA amends and restates the terms of its existing MSA with Candeo dated April 9, 2013. Pursuant to the Amended MSA, Candeo is entitled to purchase volcanic lava or cinders from Can-Cal's Pisgah Mine Project that is not currently stockpiled on the Property at a price equal to the greater of $15 per ton and the net sales margins per ton removed from the Property realized as follows: 35% of the net sales margins during the first year of mining; and 50% of the net sales margins for the subsequent years during the term of the Amended MSA. Under the Amended MSA, Candeo has the exclusive right to remove an initial amount of up to 1,000,000 tons of Material from the Property and additional incremental amounts of 1,000,000 tons each, upon the successful removal of the Initial Amount from the Property.

Candeo's right to remove the Additional Amounts from the Property is on the basis that once Candeo has removed the first Additional Amount of the Material from the Property, it shall automatically have the right to remove subsequent Additional Amounts of Material from the Property, so long as it removes its then current Additional Amount.