EXHIBIT 10.2

STOCK OPTION AGREEMENT

LIBERTY STAR GOLD CORP.

THIS AGREEMENT is entered into as of the 27th day of December, 2004 (the “Date
of Grant”).

BETWEEN:

  LIBERTY STAR GOLD CORP., a company incorporated pursuant to the laws of the
State of Nevada, of 2766 N. Country Club Road, Tucson, Arizona 85716

  (the “Company”)

AND:

  Philip St. George, of 17543 Toakoana Drive, Eagle Ridge, Alaska 94577

  (the “Optionee”)

WHEREAS:

A.     The Board of Directors of the Company (the “Board”) has approved and
adopted the 2004 Stock Option Plan (the “Plan”), a copy of which is attached
hereto as Exhibit B, pursuant to which the Board is authorized to grant to
employees and other selected persons stock options to purchase common stock of
the Company (the “Common Stock”);

B.     The Plan provides for the granting of stock options that either (i) are
intended to qualify as “Incentive Stock Options” within the meaning of Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii) do
not qualify under Section 422 of the Code (“Non-Qualified Stock Options”); and

C.     The Board has authorized the grant to Optionee of options to purchase a
total of 270,000 shares of Common Stock (the “Options”), which Options are
intended to be (select one):

[X] Incentive Stock Options [  ] Non-Qualified Stock Options;

        NOW THEREFORE, the Company agrees to offer to the Optionee the option to
purchase, upon the terms and conditions set forth herein and in the Plan, up to
an aggregate of 270,000 shares of Common Stock. Capitalized terms not otherwise
defined herein shall have the meanings ascribed thereto in the Plan.

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1.     Exercise Price. The exercise price (the “Exercise Price”) of the Options
shall be $1.67 per share of Common Stock.

2.     Expiry Date. The Options shall expire on December 27, 2014.

3.     Vesting Schedule. The Options shall vest as follows: 50% of the Options
are vested upon execution of this Agreement; 25% of the Options will vest on
each of the one year and two year anniversaries of this Agreement, provided that
the Optionee is an employee, consultant, director or officer of the Company on
the date of such anniversary. Options which have vested are referred to as
“Vested Options”.

4.     Options not Transferable. The Options may not be transferred, assigned,
pledged or hypothecated in any manner (whether by operation of law or otherwise)
except in accordance with Section 5.1(k) of the Plan.

5.     Investment Intent. By accepting the Options, the Optionee represents and
agrees that none of the shares of Common Stock purchased upon exercise of the
Options will be distributed in violation of applicable federal, state and
provincial laws and regulations. In addition, the Company may require, as a
condition of exercising the Options, that the Optionee execute an undertaking,
in such a form as the Company shall reasonably specify, that the shares of
Common Stock are being purchased only for investment and without any
then-present intention to sell or distribute such shares of Common Stock.

6.     Termination of Employment and Options. The Options shall terminate in
accordance with Section 5.1(g) of the Plan.

7.     Common Stock. In the case of any stock split, stock dividend or like
change in the nature of shares of Common Stock covered by this Agreement, the
number of shares of Common Stock issueable upon exercise of the Options and the
Exercise Price shall be proportionately adjusted as set forth in Section 5.1(m)
of the Plan.

8.     Exercise of Option. The Options shall be exercisable, in full or in part,
at any time after vesting, until termination; provided however, that any
Optionee who is subject to the reporting and liability provisions of Section 16
of the Securities Exchange Act of 1934 with respect to the Common Stock shall be
precluded from selling or transferring any Common Stock or other security
underlying the Options during the six (6) months immediately following the grant
of the Options. If less than all of the shares of Common Stock included in the
vested portion of any Option are purchased, the remainder may be purchased at
any subsequent time prior to the expiration of the Option term. No portion of
any Option for less than fifty (50) shares (as adjusted pursuant to Section
5.1(m) of the Plan) may be exercised; provided, that if the vested portion of
any Option is less than fifty (50) shares, it may be exercised with respect to
all shares for which it is vested. Only whole shares of Common Stock may be
issued pursuant to an Option, and to the extent that an Option covers less than
one (1) share, it is unexercisable.

        Each exercise of the Options shall be by means of delivery of a notice
of election to exercise (which may be in the form attached hereto as Exhibit A)
to the President of the Company at its principal executive office, specifying
the number of shares of Common Stock to be purchased and accompanied by payment
in cash by certified check or cashier’s check in the amount of the full exercise
price for the Common Stock to be purchased. In addition to payment in cash by
certified check or cashier’s check, an Optionee or transferee of an Option may
pay for all or any portion of the aggregate exercise price by complying with one
or more of the alternatives specified in Section 5.1(i) of the Plan.

        It is a condition precedent to the issuance of shares of Common Stock
upon exercise of the Options that the Optionee execute and deliver to the
Company an Investment Representation Letter, in a form acceptable to the
Company, to the extent required pursuant to the terms thereof.

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9.     Holding period for Incentive Stock Options. In order to obtain the tax
treatment provided for Incentive Stock Options by Section 422 of the Code, the
shares of Common Stock received upon exercising any Incentive Stock Options
received pursuant to this Agreement must be sold, if at all, after a date which
is the later of two (2) years from the date this Agreement is entered into or
one (1) year from the date upon which the Options are exercised. The Optionee
agrees to report sales of shares of Common Stock prior to the above determined
date to the Company within one (1) business day after such sale is concluded.
The Optionee also agrees to pay to the Company, within five (5) business days
after such sale is concluded, the amount necessary for the Company to satisfy
its withholding requirement required by the Code in the manner specified in
Section 5.1(l) of the Plan. Nothing in this Section 9 is intended as a
representation that Common Stock may be sold without registration under
provincial, state and federal securities laws or an exemption therefrom or that
such registration or exemption will be available at any specified time.

10.     Subject to 2004 Stock Option Plan. The terms of the Options are subject
to the provisions of the Plan, as the same may from time to time be amended, and
any inconsistencies between this Agreement and the Plan, as the same may be from
time to time amended, shall be governed by the provisions of the Plan, a copy of
which has been delivered to the Optionee, and which is available for inspection
at the principal offices of the Company.

11.     Professional Advice. The acceptance of the Options and the sale of
shares of Common Stock issued pursuant to the exercise of Options may have
consequences under federal, state and provincial tax and securities laws which
may vary depending upon the individual circumstances of the Optionee.
Accordingly, the Optionee acknowledges that he or she has been advised to
consult his or her personal legal and tax advisor in connection with this
Agreement and his or her dealings with respect to Options for the shares of
Common Stock. Without limiting other matters to be considered, the Optionee
should consider whether upon the exercise of Options, the Optionee will file an
election with the Internal Revenue Service pursuant to Section 83(b) of the
Code.

12.     No Employment Relationship. Whether or not any Options are to be granted
under this Plan shall be exclusively within the discretion of the Plan
Administrator, and nothing contained in this Plan shall be construed as giving
any person any right to participate under this Plan. The grant of an Option
shall in no way constitute any form of agreement or understanding binding on the
Company or any Related Company, express or implied, that the Company or any
Related Company will employ or contract with an Optionee for any length of time,
nor shall it interfere in any way with the Company’s or, where applicable, a
Related Company’s right to terminate the Optionee’s employment at any time,
which right is hereby reserved.

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13.     Entire Agreement. This Agreement is the only agreement between the
Optionee and the Company with respect to the Options, and this Agreement and the
Plan supersede all prior and contemporaneous oral and written statements and
representations and contain the entire agreement between the parties with
respect to the Options.

14.     Notices. Any notice required or permitted to be made or given hereunder
shall be mailed or delivered personally to the addresses set forth below, or as
changed from time to time by written notice to the other:

The Company: Liberty Star Gold Corp.
2766 N. Country Club Road
Tuscon, Arizona 85716

Attention: President With a copy to: Clark, Wilson
Barristers and Solicitors
Suite 800 - 885 West Georgia Street
Vancouver, BC
Canada V6C 3H1

Attention: Bernard Pinsky The Optionee: 17543 Toakoana Drive, Eagle Ridge,
Alaska 94577

15.     Counterparts. This Agreement may be executed in several counterparts,
each of which will be deemed to be an original and all of which will together
constitute one and the same instrument.

16.     Currency. Unless otherwise provided, all dollar amounts referred to in
this Agreement are in lawful money of the United States of America.

17.     Electronic Means. Delivery of an executed copy of this Agreement by
electronic facsimile transmission or other means of electronic communication
capable of producing a printed copy will be deemed to be execution and delivery
of this Agreement as of the date first above written.

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18.     Proper Law. This Agreement will be governed by and construed in
accordance with the law of British Columbia.

IN WITNESS WHEREOF the parties have duly executed and delivered this Agreement
as of the date first above written.

LIBERTY STAR GOLD CORP.

Per: /s/ James Briscoe
Authorized Signatory

SIGNED, SEALED and DELIVERED by Philip St. George
in the presence of:
                                                  
/s/ Suzette Maharry
Signature
Suzette Maharry
Print Name
7607 E. Callisto Cr., #35
Address
Tucson, AZ 85715
Bookkeeper of Liberty Star Gold Corp.
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/s/ Philip St. George
PHILIP ST. GEORGE

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EXHIBIT A

NOTICE OF ELECTION TO EXERCISE

This Notice of Election to Exercise shall constitute proper notice pursuant to
Section 5.1(h) of the Liberty Star Gold Corp. 2004 Stock Option Plan (the
“Plan”) and Section 8 of that certain Stock Option Agreement (the “Agreement”)
dated as of the 27th day of December, 2004, between Liberty Star Gold Corp. (the
“Company”) and the undersigned.

The undersigned hereby elects to exercise Optionee’s option to purchase
______________ shares of the common stock of the Company at a price of US$1.67
per share, for an aggregate consideration of US$__________________, on the terms
and conditions set forth in the Agreement and the Plan. Such aggregate
consideration, in the form specified in Section 8 of the Agreement, accompanies
this notice.

The Optionee hereby directs the Company to issue, register and deliver the
certificates representing the shares as follows:

Registration Information: Delivery Instructions:
_________________________________________
Name to appear on certificates
_________________________________________
Name
_________________________________________
Address
_________________________________________
Address
_________________________________________
_________________________________________
Telephone Number

DATED at ____________________________________, the _______ day of
_____________________, _______.

______________________________________________
(Name of Optionee - Please type or print)

                                               
______________________________________________
(Signature and, if applicable, Office)

                                               
______________________________________________
(Address of Subscriber)

                                               
______________________________________________
(City, State, and Zip Code of Subscriber)

                                               
______________________________________________
(Fax Number)

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EXHIBIT B

The Optionee acknowledges receipt of the Stock Option Plan, a copy of which was
filed as an exhibit to the Form S-8 filed on December 21, 2004