|   |   | (1)         WITS BASIN PRECIOUS MINERALSINC |
|--------|--------|------------------------------------------------------------|

|   |   | (2)         CHINA GLOBAL MINING RESOURCES (BVI)  LIMITED |
|--------|--------|-------------------------------------------------------------------------|

----

| 1. | Definitions      and Interpretation  | 1 |
|----|-------------------------------------------|---|

| 2. | Transfer      of Shares  | 4 |
|----|-------------------------------|---|

| 3. | Consideration  | 4 |
|----|---------------------|---|

| 4. | Completion  | 4 |
|----|------------------|---|

| 5. | Warranties  | 4 |
|----|------------------|---|

| 6. | Applicable      law and      jurisdiction  | 6 |
|----|-------------------------------------------------|---|

| 7. | General  | 6 |
|----|---------------|---|

| 8. | Notices  | 7 |
|----|---------------|---|

| 9. | Counterparts  | 9 |
|----|--------------------|---|

| 1. | Completion      Obligations |
|----|-----------------------------|

----

| (1) | WITS BASIN PRECIOUS MINERALS      INC. a company incorporated in the State of Minnesota, United      States with registered number 84-1236619 whose registered office is at 80      South 8th      Street, Suite 900, Minneapolis, Minnesota 55402 ("Wits Basin");      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | CHINA GLOBAL MINING RESOURCES      (BVI) LIMITED, a company incorporated in the British Virgin      Islands, Company No. 1513743, whose registered office is at 56      Administration Drive, P.O. Box 3190, Road Town, Tortola, British Virgin      Islands ("CGMRBVI"). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | Wits      Basin has agreed to transfer all the issued and to be issued share capital      in China Global Mining Resources Limited 中國環球礦業資源有限公司,      a company incorporated in Hong Kong, Company No. 1110747, whose registered      office is at 41st Floor Bank of China Tower, 1 Garden Road Central, Hong      Kong ("HK Co") to      CGMR BVI on the terms and conditions of this  Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | As      consideration for the transfer of the Share, CGMR BVI has agreed to issue      the Promissory Note to Wits Basin. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| 1. | DEFINITIONS      AND INTERPRETATION |
|----|-------------------------------------|

| 1.1 | Definitions |
|-----|-------------|

|   | Throughout      this Agreement, the following words and phrases have the meanings set out      below:- |
|--------|--------------------------------------------------------------------------------------------------------|

|   | Business    Day | means      any day other than a Saturday or Sunday, on which clearing banks are open      for business in the City of London, the British Virgin Islands, Hong Kong,      the United States and the People's Republic of  China. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | China    Gold | means      China Gold, LLC, a limited liability company organised under the laws of      the State of Kansas in the UnitedStates. |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | Completion | means      completion of the transfer of the Share in accordance with the terms of      this Agreement. |
|--------|------------|---------------------------------------------------------------------------------------------------------|

----

|   | Encumbrance | except      for the Permitted Encumbrance, means (i) any option, warrant, right to      acquire, right of conversion, right of pre-emption, restriction or equity;      or (ii) any binding written agreement to create any of the foregoing; or      (iii) any mortgage, assignment, charge, lien, pledge or other security      interest of any kind and any binding written agreement to create any of      the foregoing. |
|--------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | HongKong | means      the Hong Kong Special Administrative Region of the People's Republic of      China |
|--------|----------|-----------------------------------------------------------------------------------------------|

|   | HK Co | means      China Global Mining Resources Limited中國環球礦業資源有限公司,      a limited liability company incorporated pursuant to the laws of Hong      Kong, Company number 1110747 and whose registered office is at 41st      Floor Bank of China Tower, 1 Garden Road Central, Hong    Kong. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | HK$ | means      Hong Kong dollars, the lawful currency for the time being of Hong      Kong |
|--------|-----|----------------------------------------------------------------------------------------|

|   | London      Mining | means      London Mining Plc, a company incorporated in England and Wales with      registered number 5424040 whose registered office is at 39 Sloane Street,      London SW1X 9LP. |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Permitted      Encumbrance | means,      from the date hereof until completion of the transactions contemplated in      the Subscription Agreement, HK Co’s obligations under that certain      Guaranty dated 7 February 2008 issued in favour of China Gold and the      Subsidiary Security. |
|--------|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Promissory      Note | means      the promissory note for US$4,800,000 to be issued by CGMR BVI in favour of      Wits Basin in connection with certain outstanding debt obligations owed by      Wits Basin to China Gold. |
|--------|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Share | means      the entire issued share capital of HK Co comprising 1 ordinary share of HK      $1.00. |
|--------|-------|---------------------------------------------------------------------------------------------------|

----

|   | Subscription      Agreement | means      the agreement between London Mining and Wits Basin dated 17 November 2008      relating to the incorporation of, and subscription into, CGMR      BVI. |
|--------|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Subsidiary      Security | the      security given by HK Co in favour of China Gold under the Subsidiary      Security Agreement dated 7 February 2008 in relation to that certain      Convertible Notes Purchase Agreement dated 10 April 2007 between China      Gold and Wits Basin, as amended from time to  time. |
|--------|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | US$ | means      United States Dollars, the lawful currency of the United      States. |
|--------|-----|----------------------------------------------------------------------------------|

| 1.2 | Interpretation |
|-----|----------------|

|   | 1.2.1 | A      reference to any statutory provision in this  Agreement:- |
|--------|-------|------------------------------------------------------------------|

|   | (a) | includes      any order, instrument, plan, regulation, permission and direction made or      issued under such statutory provision or deriving validity from      it; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | shall      be construed as a reference to such statutory provision as in force at the      date of this Agreement (including, for the avoidance of doubt, any      amendments made to such statutory provisions that are in force at the date      of this Agreement); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | shall      also be construed as a reference to any statutory provision of which such      statutory provision is a re-enactment or consolidation;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | shall      also be construed as a reference to any later statutory provision which      re-enacts or consolidates such statutory  provision. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.2 | References      to a clause are (unless otherwise stated) to a clause of this      Agreement. |
|--------|-------|-----------------------------------------------------------------------------------------------|

|   | 1.2.3 | The      headings used in this Agreement are for convenience only and shall not      affect its meaning. |
|--------|-------|----------------------------------------------------------------------------------------------------------|

|   | 1.2.4 | Words      importing one gender shall (where appropriate) include any other gender      and words importing the singular shall (where appropriate) include the      plural and vice versa. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.5 | Any      English legal term for any action, remedy, method of judicial proceeding,      legal document, legal status, court, official or any legal concept or      thing shall, in respect of any jurisdiction other than that of England, be      deemed to include what most nearly approximates in that jurisdiction to      the English legal term. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1.2.6 | Any      time or date shall be construed as a reference to the time or date      prevailing in England. |
|--------|-------|---------------------------------------------------------------------------------------------------------|

| 1.3 | In      construing this Agreement, general words introduced by the word "other" shall not be      given a restrictive meaning by reason of the      fact that they are preceded by words indicating a particular class of      acts, matters or things and general words shall not be given a restrictive      meaning by reason of the fact that they are followed by particular      examples intended to be embraced by the general  words. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | TRANSFER      OF THE SHARE |
|----|----------------------------|

| 2.1 | Wits      Basin shall sell the Share and CGMR BVI shall buy the Share in accordance      with the terms and conditions of thisAgreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | CGMR      BVI shall buy the Share with effect from and including the date of      Completion to the intent that as from that date all rights and advantages      accruing to the Share, including any dividends or distributions declared,      made or paid on the Share on or after that date shall belong to CGMR      BVI. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Wits      Basin shall procure that CGMR BVI acquires good title to the Share with      full title guarantee, free from Encumbrances and free from all third party      claims. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Wits      Basin waives any rights or restrictions conferred on which it may exist in      relation to the Share under the articles of association of HK Co or      otherwise. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | CONSIDERATION |
|----|---------------|

| 3.1 | As      consideration for the transfer of the Share, CGMR BVI shall issue the      Promissory Note in favour of Wits Basin at  Completion. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | COMPLETION |
|----|------------|

| 4.1 | Completion      shall take place immediately following the execution of this      Agreement. |
|-----|----------------------------------------------------------------------------------------------|

| 4.2 | At      Completion, the parties shall perform their respective obligations in      relation to the transfer of the Share as set out in Schedule      1. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | WARRANTIES |
|----|------------|

| 5.1 | Wits      Basin warrants and represents to CGMR BVI as at the date of this Agreement      that: |
|-----|-------------------------------------------------------------------------------------------------|

----

|   | 5.1.1 | the      Share is legally and beneficially owned by it;  and |
|--------|-------|--------------------------------------------------------------|

|   | 5.1.2 | the      Share is fully paid and has been properly and validly      allotted. |
|--------|-------|-------------------------------------------------------------------------------|

| 5.2 | Each      party acknowledges and agrees that: |
|-----|-----------------------------------------------|

|   | 5.2.1 | it      is not entering into this Agreement on the basis of, and is not relying      and has not relied on, any statement or representation (whether negligent      or innocent) or warranty or other provision (in any case whether oral,      written, express or implied) made, given or agreed to by any person      (whether a party to this Agreement or not) except those expressly repeated      or referred to in this Agreement or the Subscription Agreement and the      only remedy or remedies available to a party in respect of any      misrepresentation or untrue statement made to it shall be a claim for      breach of contract under thisAgreement; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2.2 | this      clause 5.2.2 shall not apply to any statement, representation or warranty      made fraudulently or to any provision of this Agreement which was induced      by fraud for which the remedies shall be all those available under the law      governing this Agreement regardless of the other terms of this Agreement;      and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2.3 | it      has full power and authority and has obtained all necessary consents to      enter into and perform the obligations expressed to be assumed by it under      this Agreement or any document referred to in this Agreement, that the      obligations expressed to be assumed by it under this Agreement are legal,      valid and binding and enforceable against it in accordance with their      terms and the execution, delivery and performance by it of this Agreement      and each such other agreement and arrangement will  not: |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | result      in a breach of, or constitute a default under, any agreement or      arrangement to which it is a party or by which it is bound;    or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | result      in a breach of any law or order, judgment or decree of any court,      governmental agency or regulatory body to which it is a party or by which      it is bound. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | CGMR      BVI acknowledges and agrees that it is a company validly incorporated      under the laws of the British VirginIslands. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Wits      Basin acknowledges and agrees that it is a company validly incorporated      under the laws of the State ofMinnesota. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | The      parties acknowledge and agree that the express terms of this Agreement are      in lieu of all warranties, conditions, terms, undertakings and obligations      implied by statute, common law or otherwise all of which are hereby      excluded to the fullest extent permitted bylaw. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | APPLICABLE      LAW AND JURISDICTION |
|----|--------------------------------------|

| 6.1 | This      Agreement and the rights and obligations of the parties shall be governed      by and construed in accordance with the laws of England and      Wales. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      parties irrevocably submit to the non-exclusive jurisdiction of the courts      of England and Wales in respect of any claim, dispute or difference      arising out of or in connection with this  Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | GENERAL |
|----|---------|

| 7.1 | Wits      Basin and CGMR BVI each agree that they will not make any announcement      relating to the subject matter of this Agreement or any related matter      without the prior written approval of the other  party. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | This      Agreement (together with any documents referred to in this Agreement or      the Subscription Agreement or required to be entered into pursuant to this      Agreement or the Subscription Agreement) contains the entire agreement and      understanding of the parties and supersedes all prior agreements,      understandings or arrangements (both oral and written) relating to the      subject matter of this Agreement and any such  document. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | No      variation of this Agreement shall be effective unless made in writing      signed by or on behalf of each of the parties and expressed to be such a      variation. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | No      failure or delay by any party or time or indulgence given in exercising      any remedy or right under or in relation to this Agreement shall operate      as a waiver of the same, nor shall any single or partial exercise of any      remedy or right preclude any further exercise of the same or the exercise      of any other remedy or right. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | No      waiver by either party of any requirement of this Agreement, or of any      remedy or right under this Agreement, shall have effect unless given in      writing and signed by such party.  No waiver of any particular      breach of the provisions of this Agreement shall operate as a waiver of      any repetition of such breach. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.6 | Any      remedy or right conferred on either party for breach of this Agreement      shall be in addition to and without prejudice to all other rights and      remedies available to it. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Neither      party shall be entitled to assign, transfer or create any trust in respect      of the benefit or burden of any provision of this Agreement (or any of the      documents referred to in this Agreement) without the prior written consent      of the other party. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8 | The      provisions of this Agreement shall remain in full force and effect after      its completion so far as they remain to be observed and      performed. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9 | Each      party shall, and shall use all reasonable endeavours to procure that any      necessary third party shall, do and execute and perform all such further      deeds, documents, assurances, acts and things as may reasonably be      required to give effect to thisAgreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10 | The      parties do not intend this Agreement or any part of it to be enforceable      by virtue of the Contracts (Rights of Third Parties) Act 1999 but this      shall not affect any right or remedy of a third party which exists or is      available apart from that Act. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.11 | Subject      to clause 7.7, this Agreement shall be binding on each party's assigns and      successors in title. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 7.12 | Neither      party shall have any right to terminate or rescind this      Agreement. |
|------|--------------------------------------------------------------------------------------|

| 7.13 | Each      party shall pay its own costs and expenses incurred in the negotiation,      preparation and execution of thisAgreement. |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| 7.14 | The      cost of all stamp duty and other similar duty payable in respect of the      sale and purchase of the Share will be borne by CGMR  BVI. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | NOTICES |
|----|---------|

----

| 8.1 | Any      notice, consent, request, demand, approval or other communication to be      given or made under or in connection with this Agreement (each a "Notice" for the purposes      of this clause) shall be in English, legible, in writing and signed by or      on behalf of the person giving it. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Service      of a Notice must be effected by one of the following    methods: |
|-----|-------------------------------------------------------------------------------|

|   | 8.2.1 | by      hand to the relevant address set out in clause 8.4 and shall be deemed      served upon delivery if delivered during a Business Day, or at the start      of the next Business Day if delivered at any other time;  or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.2.2 | by      prepaid first-class post to the relevant address set out in clause 8.4 and      shall be deemed served at the start of the second Business Day after the      date of posting; or |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.2.3 | by      prepaid international airmail to the relevant address set out in clause      8.4 and shall be deemed served at the start of the fourth Business Day      after the date of posting; or |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.2.4 | by      facsimile transmission to the relevant facsimile number set out in clause      8.4 and shall be deemed served on despatch, if despatched during a      Business Day, or at the start of the next Business Day if despatched at      any other time, provided that in each case a receipt indicating complete      transmission of the Notice is obtained by the sender and that a copy of      the Notice is also despatched to the recipient using a method described in      clauses 8.2.1 to 8.2.3 (inclusive) no later than the end of the next      Business Day. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | In      clause 8.2 "during a      Business Day" means any time between 9.30 a.m. and 5.30 p.m. on a      Business Day based on the local time where the recipient of the Notice is      located. References to "the start of [a] Business      Day" and "the end      of [a] Business Day" shall be construed  accordingly. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Notices      shall be addressed as follows: |
|-----|---------------------------------------------|

|   | 8.4.1 | Notices      for Wits Basin shall be marked for the attention  of: |
|--------|-------|--------------------------------------------------------------------|

----

|   | 8.4.2 | Notices      for CGMR BVI shall be marked for the attention  of: |
|--------|-------|------------------------------------------------------------------|

|   | Address: | 56      Administration Drive, P.O. Box 3190, Road Town, Tortola, British Virgin      Islands |
|--------|----------|----------------------------------------------------------------------------------------------|

| 8.5 | Copies      of all Notices sent to CGMR BVI shall also be sent or given to Graeme      Hossie of London Mining, 39 Sloane Street, London SW1X 9LP and Spencer      Summerfield of Travers Smith LLP, 10 Snow Hill, London EC1A      2AL.  Such copies shall be sent or given in accordance with one      of the methods described in clause 8. Failure to communicate such copies      shall not invalidate such Notice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6 | A      party may change its address for service provided that it gives the other      party not less than 14 days' prior notice in accordance with this clause      8.  Until the end of such notice period, service on either      address shall remain effective. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | COUNTERPARTS |
|----|--------------|

----

| 1. | Wits      Basin shall deliver, or (if CGMR BVI shall so agree) make available, to      CGMR BVI: |
|----|--------------------------------------------------------------------------------------------------|

| 1.1 | a      form of the instrument of transfer of the Share executed by Wits Basin in      favour of CGMR BVI, the relevant share certificate (or any indemnity in      respect of any lost share certificate or share certificate not issued by      the HK Co) and any additional documentation necessary to establish Wits      Basin's title to the Share and to authorise execution of such      transfer; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | a      Sold Note executed by Wits Basin in favour of CGMR  BVI; |
|-----|-----------------------------------------------------------------|

| 1.3 | the      common seal (if any), all certificates of incorporation of HK Co and any      certificates on change of name, the statutory books (duly written up to      the date of Completion) and other record books of HK  Co; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | letter      of resignation, effective as from completion of the Subscription      Agreement, from William Barton Green, Mark Dennis Dacko and Harvey Vance      White as directors and officers of HK Co;and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | a      duly executed release of the Subsidiary Security and Guaranty of HK Co      issued in favour of China Gold, in a form agreed to and approved in      accordance with the SubscriptionAgreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | CGMR      shall deliver to Wits Basin: |
|----|----------------------------------------|

| 2.1 | a      form of the instrument of transfer of the Share executed by CGMR BVI as      transferee; and |
|-----|-----------------------------------------------------------------------------------------------------|

| 2.2 | a      Bought Note executed by Wits Basin in favour of CGMR  BVI; |
|-----|-------------------------------------------------------------------|

| 3. | Wits      Basin agrees with CGMR BVI to procure that a board resolution, in the      approved terms, of HK Co is passedsanctioning: |
|----|-------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | for      registration (subject, where necessary, to due stamping) the transfer in      respect of the Share; |
|-----|--------------------------------------------------------------------------------------------------------------|

| 3.2 | the      issue of a share certificate in the name of CGMR BVI;  and |
|-----|---------------------------------------------------------------------|

| 3.3 | subject      to completion of the Subscription Agreement, the removal of William Barton      Green, Mark Dennis Dacko and Harvey Vance White as directors and officers      of HK Co and the appointment of Graeme Hossie as a director, subject to      receipt of any necessary consent toappointment. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Wits      Basin agrees with CGMR BVI to procure that it  shall: |
|----|-----------------------------------------------------------------|

| 4.1 | submit      the Agreement and all relevant documents and applicable stamp duty payment      to the Stamp Office of the Inland Revenue Department for an assessment of      stamp duty payable under the Agreement;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | make      all necessary regulatory filings to give effect to the transfer of the      Share and the other matters contemplated under this    Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Obtain      the release at completion of the Subscription Agreement of the Subsidiary      Security and the Guaranty issued in favour of China  Gold. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----