On June 8, 2004, Battle Mountain entered into a joint venture (the "Joint Venture") with Nevada Gold Exploration Solutions, L.L.C., a Nevada limited liability company ("NGXS") and related party to form Pediment Gold LLC, a Nevada limited liability company, to explore the Nevada great basin physiographic area using a proprietary water chemistry database. As of December 31, 2005 the Company paid an aggregate of $1,055,794 towards the initial contribution of $3,250,000 in Pediment as called for by the original agreements, as amended (SEE 8-K filed December 1, 2005 for full terms of the agreement).