----

Exhibit 4.1

erwise change its common shares during the period inwhich the Over-Allotment Option is exercisable, appropriate adjustments will bemade to the exercise price of the Over-Allotment Option and to the number ofAdditional Offered Securities issuable on exercise thereof such that theUnderwriters are entitled to receive the same number and type of securities thatthe Underwriters would have otherwise received had they exercised suchOver-Allotment Option immediately prior to such subdivision, consolidation,reclassification or change.

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|   | (i) | the      second anniversary of the Closing Date or the Option Closing Date, as      applicable; and |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (ii) | the      latest date under the Applicable Securities Laws relevant to a Purchaser      (non-residents of Canada being deemed to be resident in the Province of      Ontario for such purposes) that a Purchaser may be entitled to commence an      action or exercise a right of rescission, with respect to a      misrepresentation contained in the Final Prospectus or, if applicable, any      Supplementary Material; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (ii) | not,      directly or indirectly, sell or solicit offers to purchase the Offered      Securities or distribute or publish any offering circular, prospectus,      form of application, advertisement or other offering materials in any      country or jurisdiction so as to require registration or filing of a      prospectus with respect thereto or compliance by the Company with      regulatory requirements (including any continuous disclosure obligations)      under the laws of, or subject the Company (or any of its directors,      officers or employees) to any inquiry, investigation or proceeding of any      securities regulatory authority, stock exchange or other authority in, any      jurisdiction (other than the filing of the Preliminary Prospectus and the      Final Prospectus in the QualifyingProvinces); |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | use      all reasonable efforts to complete and to cause the members of the Selling      Group to complete the distribution of the Offered Securities as soon as      practicable; and |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | upon      the Company obtaining the necessary receipts therefor from each of the      Securities Commissions, deliver one copy of the Final Prospectus and any      Supplementary Material to each of the  Purchasers. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Company (i) has been continued under the CanadaBusiness Corporations      Act and is and will at the Time of Closing be up-to-date in all      material corporate filings and in good standing under such Act; (ii) has      all requisite corporate power and authority to carry on its business as      now conducted and to own, lease and operate its properties and assets; and      (iii) has all requisite corporate power and authority to issue and sell      the Offered Securities, to enter into this Agreement and to carry out the      provisions of this Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      subsidiaries listed on Schedule “B” are the only subsidiaries of the      Company which are material to the Company and, all securities of such      subsidiaries are held, directly or indirectly, by the Company free and      clear of all mortgages, liens, charges, pledges, security interests,      encumbrances, claims and demands whatsoever. All  of |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | such      shares in the capital of the Material Subsidiaries have been dully      authorized and validly issued and are outstanding as fully paid and      non-assessable shares and no person has any right, agreement or option,      present or future, contingent or absolute, or any right capable of      becoming a right, agreement or option, for the purchase from the Company      of any interest in any of such shares or for the issue or allotment of any      unissued shares in the capital of the Material Subsidiaries or any other      security convertible into or exchangeable for any such shares. The      Company’s other subsidiaries, CBM –Energy Inc. and ISL Wyoming Inc. are      not material subsidiaries of the Company, do not own any material assets      and do not have any materialliabilities. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | each      of the Material Subsidiaries (i) has been incorporated in its respective      jurisdiction of incorporation and is and will at the Time of Closing be      up-to-date in all material corporate filings and in good standing under      the laws of such jurisdiction, as the case may be and (ii) has all      requisite corporate power and authority to carry on its business as now      conducted and to own, lease and operate its properties and      assets; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | no      proceedings have been taken, instituted or, to the knowledge of the      Company, are pending for the dissolution or liquidation of the Company or      the Material Subsidiaries; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Company and each of the Material Subsidiaries are, in all material      respects, conducting their respective businesses in compliance with all      applicable laws, rules and regulations (including all material applicable      federal, provincial, municipal, and local environmental anti-pollution and      licensing laws, regulations and other lawful requirements of any      governmental or regulatory body, including but not limited to relevant      exploration, concessions and permits) of each jurisdiction in which its      respective businesses are carried on and each is licensed, registered or      qualified in all jurisdictions in which it owns, leases or operates its      property or carries on business to enable its business to be carried on as      now conducted and its property and assets to be owned, leased and operated      and all such licences, registrations and qualifications are valid,      subsisting and in good standing and it has not received a notice of      non-compliance, nor knows of, nor has reasonable grounds to know of, any      facts that could give rise to a notice of non-compliance with any such      laws, regulations or permits which could have an adverse material effect      on the Company or the Material Subsidiaries and will at the Time of      Closing be valid, subsisting and in good  standing; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | all      necessary corporate action has been taken or will have been taken prior to      the Time of Closing by the Company so as to validly issue and sell the      Offered Securities; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      execution and delivery of this Agreement and the performance of the      transactions contemplated hereby and thereby have been authorized by      all |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | necessary      corporate action of the Company and this Agreement has been executed and      delivered by the Company and constitutes a valid and binding obligation of      the Company, enforceable against the Company in accordance with its terms,      provided that enforcement thereof |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | may      be limited by laws affecting creditors’ rights generally, that specific      performance and other equitable remedies may only be granted in the      discretion of a court of competent jurisdiction, that the provisions      relating to indemnity, contribution and waiver of contribution may be      unenforceable and that enforceability is subject of the provisions of the      Limitations Act,      2002 (Ontario); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the      execution and delivery of this Agreement, the fulfilment of the terms      hereof by the Company and the issuance, sale and delivery of the Offered      Securities to be issued and sold by the Company at the Time of Closing do      not and will not require the consent, approval, authorization,      registration or qualification of or with any governmental authority, stock      exchange, Securities Commission or other third party, except such as have      been obtained or such as may be required (and shall be obtained prior to      the Time of Closing) under Applicable Securities Laws or stock exchange      regulations; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Offered Securities to be issued and sold as hereinbefore described have      been, or prior to the Time of Closing will be reserved and authorized for      issuance by the Company and, upon payment of the issue price for the      Offered Securities and when certificates for the Offered Securities are      countersigned by the Transfer Agent, the Offered Securities will be      validly issued and fully paid and non-assessable, and all statements made      in the Final Prospectus describing the Offered Securities will be accurate      in all material respects; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | the      authorized capital of the Company consists of an unlimited number of Class      A Preference Shares, issuable in series, and an unlimited number of common      shares, of which, as of April 20, 2007, no Class A Preference Shares were      outstanding and 74,100,239 common      shares were outstanding as fully paid and non-assessable shares of the      Company; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | the      Company and the Material Subsidiaries are not aware of any legislation, or      proposed legislation published by a legislative body, which they      anticipate will materially and adversely affect the business, affairs,      operations, assets, liabilities (contingent or otherwise) or prospects of      the Company or the MaterialSubsidiaries; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | the      currently issued and outstanding common shares of the Company are listed      on the Exchange and no order ceasing, suspending or prohibiting trading in      any securities of the Company or prohibiting the sale of the Offered      Securities has been issued and no proceedings for such purpose are pending      or, to the best of the Company’s knowledge, information and belief,      threatened; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | except      as referred to in Schedule “D” hereto, or as described in the Final      Prospectus, no person now has any agreement or option or right or      privilege (whether at law, preemptive or contractual) capable of becoming      an |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | agreement      for the purchase, subscription or issuance of, or conversion into, any      unissued shares, securities, warrants or convertible obligations of any      nature of the Company or any of the Material  Subsidiaries; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | since      December 31, 2006, except as disclosed in the Company's Information      Record: |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (i) | there      has not been any material change in the assets, liabilities, obligations      (absolute, accrued, contingent or otherwise), business, condition      (financial or otherwise) or      results of operations of the Company and the Material Subsidiaries, on a      consolidated basis; |   |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | (ii) | there      has not been any material change in the capital stock or long-term debt of      the Company and the Material Subsidiaries, on a consolidated basis;      and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Company and the Material Subsidiaries have carried on their respective      businesses in the ordinary course; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------|

|   | (o) | the      audited consolidated financial statements of the Company for the fiscal      year ended December 31, 2006 present fairly, in all material respects, the      financial condition of the Company and the Material Subsidiaries, on a      consolidated basis, for the period thenended; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | there      are no material actions, proceedings or investigations (whether or not      purportedly by or on behalf of the Company or any subsidiary) pending or      threatened against or affecting the Company or its Material Subsidiaries      at law or in equity (whether in any court, arbitration or similar      tribunal) or before or by any federal, provincial, state, municipal or      other governmental department, commission, board or agency, domestic or      foreign; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | neither      the Company nor any of the Material Subsidiaries is in default or in      breach in any material respect of, and the execution and delivery of this      Agreement by the Company, the performance and compliance with the terms of      this Agreement and the sale of the Offered Securities (including the grant      of the Over-Allotment Option by the Company) will not result in any      material breach of, or be in conflict with or constitute a default under,      or create a state of facts which, after notice or lapse of time, or both,      would constitute a default under any term or provision of the constating      documents, by-laws or resolutions of the Company or any of the Material      Subsidiaries or any material mortgage, note, indenture, contract,      agreement, instrument, lease or other document to which the Company or any      of the Material Subsidiaries is a party or by which any of them is bound      or any judgment, decree, order, statute, rule or regulation applicable to      any of them, which breach or default would have a material adverse affect      on the Company and the Material Subsidiaries, on a consolidated      basis; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | the      Company is, and will at the Time of Closing be, an Eligible Issuer and a      “reporting issuer”, not included in a list of defaulting reporting issuers      maintained by the Securities Commissions in the provinces of British      Columbia, Alberta, Saskatchewan, Manitoba and Ontario and in      particular, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | without      limiting the foregoing, the Company has at all times complied with its      obligations to make timely disclosure of all material changes relating to      it and there is no material change relating to the Company which has      occurred and with respect to which the requisite material      change report has not been filed with the Securities Commissions, except      to the extent that the Offering constitutes a material      change; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | all      filings and fees required to be made and paid by the Company and the      subsidiaries pursuant to Applicable Securities Laws and general corporate      law have been made and paid and the information and statements set forth      in the Company's Information Record were accurate in all material respects      and did not contain any misrepresentation as of the date of such      information or statement, and the Company has not filed any confidential      material change report with any Securities Commission that is still      maintained on a confidential basis; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | the      auditors of the Company who audited the consolidated financial statements      of the Company most recently delivered to the securityholders of the      Company and delivered their report with respect thereto, have confirmed to      the Company that they are independent public accountants as required by      the Applicable Securities Laws; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | there      has not been any “reportable event” (within the meaning of National      Instrument 51-102 of the Canadian Securities Administrators) with the      present or any former auditor of theCompany; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there      is not, in the constating documents, by-laws or in any debt      instrument,  agreement, mortgage, note, debenture, indenture or      other instrument or document to which the Company is a party, any      restriction upon or impediment to, the declaration of dividends by the      directors of the Company or the payment of dividends by the Company to the      holders of its common shares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | the      Company is not, nor are any of its subsidiaries, party to or bound or      affected by any commitment, agreement or document containing any covenant      which expressly limits the freedom of the Company or any of its      subsidiaries to compete in any line of business, transfer or move any of      their assets or operations or which materially or adversely affects the      business practices, operations or condition of the Company and its      subsidiaries, taken as a whole; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | other      than the Company, there is no person that is or will be entitled to the      proceeds of this Offering under the terms of any debt instrument,      mortgage, note, indenture, contract, instrument, lease agreement (written      or unwritten); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | the      Company is not party to any agreement, nor is the Company aware of any      agreement, which in any manner affects the voting control of any of the      securities of the Company or itssubsidiaries; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | all      taxes (including income tax, capital tax, payroll taxes, employer health      tax, workers’ compensation payments, property taxes, custom and land      transfer taxes), duties, royalties, levies, imposts, assessments,      deductions, charges      or withholdings and all liabilities with respect thereto including any      penalty and interest payable with respect thereto (collectively, “Taxes”) due and payable      by the Company or any of the Material Subsidiaries have been paid except      for where the failure to pay such taxes would not constitute an adverse      material fact of the Company and of the  Material |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Subsidiaries,      on a consolidated basis, or result in an adverse material change to the      Company and the Material Subsidiaries, on a consolidated      basis.  All tax returns, declarations, remittances and filings      required to be filed by the Company have been filed with all appropriate      governmental authorities and all such returns, declarations, remittances      and filings are complete and accurate and no material fact or facts have      been omitted therefrom which would make any of them misleading except      where the failure to file such documents would not constitute an adverse      material fact of the Company and the Material Subsidiaries, on a      consolidated basis, or result in an adverse material change to the Company      and the Material Subsidiaries, on a consolidated basis.  To the      best of the knowledge of the Company, no examination of any tax return of      the Company or any of the Materials Subsidiaries is currently in progress      and there are no issues or disputes outstanding with any governmental      authority respecting any taxes that have been paid, or may be payable, by      the Company or any Material Subsidiary, in any case, except where such      examinations, issues or disputes would not constitute an adverse material      fact of the Company and the Material Subsidiaries, on a consolidated      basis, or result in an adverse material change to the Company and the      Material Subsidiaries, on a consolidatedbasis; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | neither      the Company nor any of the Material Subsidiaries, nor to the best of the      Company's knowledge, information and belief, any other person, is in      default in any material respect in the observance or performance of any      term, covenant or obligation to be performed by the Company or any of the      Material Subsidiaries or such other person under any material contract,      agreement, or arrangement (including all joint venture agreements) to      which the Company or any of the Material Subsidiaries is a party or      otherwise bound and all such contracts, agreements or arrangements      (including all joint venture agreements) are in good standing, and no      event has occurred which with notice or lapse of time or both would      constitute such a default by the Company, a Material Subsidiary or, to the      best of the Company’s knowledge, information and belief, any other      party; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | the      net proceeds of the Offering will be used as described in the Final      Prospectus; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (dd) | the      attributes of the Offered Securities will conform in all material respects      with the description thereof to be described in the Final      Prospectus; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | other      than as contemplated by the Offering and this Agreement, the Company will      not, for a period of 90 days from the Closing Date, issue or sell or agree      to issue or sell (or announce any intention to do so) any equity or voting      shares of the Company or financial instruments convertible or exchangeable      into such shares, other than for purposes of (i) the grant or exercise of      stock options and other similar issuances pursuant to the share incentive      plans of the Company (including as described in Schedule “D” hereto); (ii)      outstanding warrants (including as described in Schedule “D” hereto);      and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii)      obligations in respect of existing agreements (including as described in      Schedule “D” hereto), without the prior written consent of GMP Securities      L.P. on behalf of the Underwriters, which consent shall not be      unreasonably withheld; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ff) | the      Company will use its best efforts to obtain the necessary regulatory      consents from the Exchange to the sale of the Offered Securities hereunder      on such conditions as are acceptable to the Underwriters and the Company,      acting reasonably; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (gg) | the      Company will use its best efforts to arrange for the listing on the      Exchange of the Offered Securities effective as of the Closing Date and      the Option Closing Date, asapplicable; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (hh) | the      Company will use its best efforts to maintain its status as a “reporting      issuer” (or the equivalent thereof) not in default of the requirements of      the Securities Laws of each of the provinces of British Columbia, Alberta,      Saskatchewan, Manitoba and Ontario until the date that is two years      following the Closing Date, provided that this covenant shall not prevent      the Company from completing any transaction which would result in the      Company ceasing to be a “reporting issuer” so long as the holders of      common shares receive securities of an entity which is listed on a stock      exchange in Canada or the holders of the common shares have approved the      transaction; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Equity      Transfer & Trust Company has been appointed the registrar and transfer      agent in Canada for the common shares of the Company at its principal      transfer office in the city of Toronto,Ontario; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (jj) | none      of the directors, officers or employees of the Company, any known holder      of more than ten per cent of any class of shares of the Company, or any      known associate or affiliate of any of the foregoing persons or companies      (as such terms are defined in the Securities Act      (Ontario)), has had any material interest, direct or indirect, in any      material transaction within the previous two years or any proposed      material transaction with the Company or any Material Subsidiary which, as      the case may be, materially affected, is material to or will materially      affect the Company and the Material Subsidiaries, on a consolidated      basis; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (kk) | other      than the Underwriters pursuant to this Agreement, there is no person      acting or purporting to act at the request of the Company who is entitled      to any brokerage, agency or other fiscal advisory or similar fee in      connection with the transactions contemplated  herein; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ll) | none      of the Company or the Material Subsidiaries is party to any debt      instrument or has any material loans or other indebtedness outstanding      which has been made to any of its shareholders, officers, directors or      employees, past or present, or any person not dealing at arm’s length with      them; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (mm) | the      assets of the Company and the Material Subsidiaries and their business and      operations are insured against loss or damage with responsible insurers on      a basis consistent with insurance obtained by reasonably prudent      participants in comparable businesses, and such coverage is in full force      and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | effect,      and none of the Company or any of the Material Subsidiaries has failed to      promptly give any notice or present any material claim thereunder;      and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (nn) | the      Company and the Material Subsidiaries own or possess the right to use all      material patents, trademarks, trademark registrations, service marks,      service mark registrations, trade names, copyrights, licenses, inventions,      trade secrets and rights necessary for the conduct of their respective      businesses, and the Company is not aware of any claim to the contrary or      any challenge by any other person to the rights of the Company and the      Material Subsidiaries with respect to the foregoing.  To the      best of the Company’s knowledge, the Company’s business, including that of      its subsidiaries, as now conducted does not, and as currently proposed to      be conducted will not, infringe or conflict with in any material respect      patents, trademarks, service marks, trade names, copyrights, trade      secrets, licenses or other intellectual property or franchise right of any      person. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Company will, provided the Underwriters have taken all action required by      them hereunder to permit the Company to do so, use all reasonable efforts      to file the Final Prospectus pursuant to NP 43-201 and to obtain a final      expedited review receipt document from the Ontario Securities Commission      in respect of each Qualifying Province and if a Securities Commission in      any Qualifying Province opts out of the expedited review system, a final      receipt (or a decision document equivalent thereof) from such Securities      Commission, and shall have taken all other steps and proceedings that may      be necessary in order to qualify the Offered Securities for distribution      pursuant to the Final Prospectus in each of the Qualifying Provinces      before the close of business on May 17, 2007 (or      such other date as may be agreed to in writing by the Company and the      Underwriters); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Company will deliver from time to time without charge to the Underwriters      as many copies of the Preliminary Prospectus, the Final Prospectus and any      Supplementary Material as they may reasonably request for the purposes      contemplated hereunder and contemplated by the Applicable Securities Laws      in the Qualifying Provinces and such delivery shall constitute the consent      of the Company to their use of such documents in the Qualifying Provinces      in connection with the distribution or the distribution to the public of      the Offered Securities, subject to the Underwriters complying with the      provisions of the Applicable Securities Laws in the Qualifying Provinces      and the provisions of thisAgreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all      the information and statements to be contained in the Offering Documents      shall, at the respective dates of delivery thereof, constitute full, true      and plain disclosure of all material facts relating to each of the      Offering, the Company, the Material Subsidiaries and the Offered      Securities (provided that this representation and warranty is not intended      to extend to information and statements included in reliance upon and in      conformity with information furnished to the Company by or on behalf of      the Underwriters specifically for usetherein); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | at      the time of filing and qualification thereof, no Offering Document will      contain a misrepresentation (provided that this representation and      warranty is not intended to extend to information and statements included      in reliance upon and in conformity |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | with      information furnished to the Company by or on behalf of the Underwriters      specifically for use therein); |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Offering Documents shall contain the disclosure required by and conform to      all requirements of the Applicable Securities  Laws; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | during      and prior to completion of the distribution of the Offered Securities, the      Company will otherwise take or cause to be taken all steps and proceedings      (including the filing of, and obtaining the issuance of a final receipt      (or a decision document equivalent thereof) for, the Final Prospectus)      that may be required under the Applicable Securities Laws of the      Qualifying Provinces to qualify the Offered Securities for sale to the      public in the Qualifying Provinces through registrants registered under      the Applicable Securities Laws of the Qualifying Provinces who have      complied with the relevant provisions thereof;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | at      all times until the distribution of the Offered Securities has been      completed, but in any event not later than 21 days following the Closing      Date or the Option Closing Date, as applicable, the Company will, to the      reasonable satisfaction of counsel to the Underwriters, promptly take or      cause to be taken all reasonable additional steps and proceedings that may      be required from time to time under the Applicable Securities Laws of the      Qualifying Provinces to continue to so qualify the Offered Securities or,      in the event that the Offered Securities have, for any reason, ceased to      so qualify, to again so qualify the Offered  Securities. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | prior      to the filing of the Final Prospectus and any Supplementary Material      (other than any material filed prior to the date hereof and incorporated      by reference therein), the Company will allow the Underwriters to      participate fully in the preparation of the Preliminary Prospectus, the      Final Prospectus and any Supplementary Material and shall allow the      Underwriters to conduct all due diligence which they may reasonably      require to conduct in order to fulfil their obligations and in order to      enable them to responsibly execute the certificates required to be      executed by them at the end of each of the Preliminary Prospectus, the      Final Prospectus and any applicable Supplementary  Material; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Company will promptly notify the Underwriters in writing if, prior to      termination of the distribution of the Offered Securities, there shall      occur any material change or change in a material fact (in either case,      whether actual, anticipated, contemplated or threatened and other than a      change or change in fact relating solely to the Underwriters) or any event      or development involving a prospective material change or a change in a      material fact or any other material change in any or all of the business,      affairs, operations, assets (including information or data relating to the      estimated value or book value of      assets), liabilities (contingent or otherwise), capital, ownership,      control or management of the Company or any of the Material Subsidiaries      which would constitute a material change to, or a change in a material      fact concerning the Company and the Material Subsidiaries on a      consolidated basis |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

|   | or      any other change which is of such a nature as to result in, or could be      considered reasonably likely to result in, a misrepresentation in the      Final Prospectus or any Supplementary Material, as they exist immediately      prior to such change, or could render any of the foregoing, as they exist      immediately prior to such change, not in compliance with any of the      Applicable Securities Laws; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Company will promptly notify the Underwriters in writing with full      particulars of any such actual, anticipated, contemplated, threatened or      prospective change referred to in the preceding paragraph and the Company      shall, to the satisfaction of the Underwriters, acting reasonably,      provided the Underwriters have taken all action required by them hereunder      to permit the Company to do so, file promptly and, in any event, within      all applicable time limitation periods with the Securities Commissions a      new or amended Final Prospectus or Supplementary Material, as the case may      be, or material change report as may be required under the Applicable      Securities Laws and shall comply with all other applicable filing and      other requirements under the Applicable Securities Laws including any      requirements necessary to qualify the distribution of the Offered      Securities and shall deliver to the Underwriters as soon as practicable      thereafter their reasonable requirements of conformed or commercial copies      of any such new or amended Final Prospectus or Supplementary Material. The      Company will not file any such new or amended disclosure documentation or      material change report without first obtaining the written approval of the      form and content thereof by the Underwriters, which approval shall not be      unreasonably withheld or delayed; provided that the Company will not be      required to file a registration statement or otherwise register or qualify      the Offered Securities for sale or distribution outside      Canada; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      Company will in good faith discuss with the Underwriters as promptly as      possible any circumstance or event which is of such a nature that there is      or there ought to be consideration given as to whether there may be a      material change or change in a material fact or other change described in      the preceding two paragraphs; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      minute books of the Company and each of the Material Subsidiaries provided      to counsel to the Underwriters contain copies of all constating documents      and all proceedings of securityholders and directors (and committees      thereof) (or drafts pending the approval thereof) and are complete in all      material respects. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 4.1.4 | Mining      and Environmental Matters |
|--------|-------|---------------------------------------|

|   | (a) | the      Company and the Material Subsidiaries are in material compliance with all      applicable federal, provincial, state, municipal and local laws, statutes,      ordinances, by-laws and regulations and orders, directives and decisions      rendered by any ministry, department or administrative or regulatory      agency, domestic or foreign, including laws, ordinances, regulations or      orders, relating to the protection of the environment, occupational health      and safety or the processing, use, treatment, storage, disposal,      discharge, transport or handling of any pollutants, contaminants,      chemicals or industrial, toxic or hazardous wastes or substance (the      “Environmental      Laws”); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Company and the Material Subsidiaries have, collectively, obtained all      material licences, permits, approvals, consents, certificates,      registrations and other authorizations under all applicable Environmental      Laws (the “Environmental      Permits”) necessary as at the date hereof for the operation of the      businesses carried on or proposed to be commenced by the Company and the      Material Subsidiaries, and each Environmental Permit is valid, subsisting      and in good standing and neither the Company nor any of the Material      Subsidiaries is in material default or breach of any Environmental Permit      and, to the best of the knowledge of the Company, no proceeding is pending      or threatened to revoke or limit any Environmental  Permit; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | neither      the Company nor any of the Material Subsidiaries has used, except in      material compliance with all Environmental Laws and Environmental Permits,      any property or facility which it owns or leases or previously owned or      leased, to generate, manufacture, process, distribute, use, treat, store,      dispose of, transport or handle any Hazardous  Substance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | neither      the Company nor any of the Material Subsidiaries nor, if applicable, to      the knowledge of the Company, any predecessor company, has received any      notice of or been prosecuted for an offence alleging non-compliance with      any laws, ordinances, regulations and orders, including Environmental      Laws, and neither the Company nor any of the Material Subsidiaries nor, if      applicable, to the knowledge of the Company, any predecessor company has      settled any allegation of non-compliance short of prosecution. There are      no orders or directions relating to environmental matters requiring any      material work, repairs, construction or capital expenditures to be made      with respect to any of the assets of the Company or any of its Material      Subsidiaries, nor has the Company or any of its Material Subsidiaries      received notice of any of the same; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | there      have been no past unresolved, and there are no pending or threatened      claims, complaints, notices or requests for information received by the      Company with respect to any alleged material violation of any law, statue,      order, regulation, ordinance or decree; and to the best of the Company’s      knowledge, information and belief, no conditions exist at, on or under any      property      now or previously owned, operated or leased by the Company which, with the      passage of time, or the giving of notice or both, would give rise to      liability under any law, statue, order,  regulation, |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ordinance      or decree that, individually or in the aggregate, has or may reasonably be      expected to have any adverse effect with respect to the Company and the      Material Subsidiaries, taken as awhole; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | except      as ordinarily or customarily required by applicable permit, neither the      Company nor any of the Material Subsidiaries has received any notice      wherein it is alleged or stated that it is potentially responsible for a      federal, provincial, state, municipal or local clean-up site or corrective      action under any Environmental Laws.  Neither the Company nor      any of the Material Subsidiaries has received any request for information      in connection with any federal, state, municipal or local inquiries as to      disposal sites; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      Company and its Material Subsidiaries are the absolute legal and      beneficial owners of, and have good and marketable title to, all of the      material property or assets thereof as described in the Company’s      Information Record, free of all mortgages, liens, charges, pledges,      security interests, encumbrances, claims or demands whatsoever, other than      those described in the Company’s Information Record, and no other property      rights are necessary for the conduct of the business of the Company and      its Material Subsidiaries (taken as a whole) as currently conducted or      contemplated to be conducted; the Company knows of no claim or basis for      any claim that might or could adversely affect the right of the Company      and its Material Subsidiaries to use, transfer or otherwise exploit such      property rights; and, except as disclosed in the Company’s Information      Record, the Company and its Material Subsidiaries have no responsibility      or obligation to pay any commission, royalty, licence fee or similar      payment to any person with respect to the property rights      thereof; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the      Company and its Material Subsidiaries hold either freehold title, mining      leases, mining claims or other conventional property, proprietary or      contractual interests or rights, recognized in the jurisdiction in which a      particular property is located in respect of the ore bodies and minerals      located in properties in which the Company and its Material Subsidiaries      have an interest as described in the Company’s Information Record under      valid, subsisting and enforceable title documents or other recognized and      enforceable agreements or instruments, sufficient to permit the Company      and its Material Subsidiaries to explore the minerals relating thereto;      all such property, leases or claims and all property, leases or claims in      which the Company or its Material Subsidiaries have any interest or right      have been validly located and recorded in accordance with all applicable      laws and are valid and subsisting; the Company or its Material      Subsidiaries have all necessary surface rights, access rights and other      necessary rights and interest relating to the properties in which the      Company or its Material Subsidiaries have an interest as described in the      Company’s Information Record granting the Company or its Material      Subsidiaries the right and ability to explore for minerals for development      purposes as are appropriate in view of their respective rights and      interests therein, with only such exceptions as do not materially      interfere with the use made by the Company or its Material Subsidiaries of      the rights or interests so held and each of the proprietary interests or      rights and each of the documents, agreements and instruments      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | obligations      relating thereto referred to above are currently in good standing in the      name of the Company or its Material  Subsidiaries; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      and all of the agreements and other documents and instruments pursuant to      which the Company and its Material Subsidiaries hold their property and      assets (including any interest in, or right to earn an interest in, any      property) are valid and subsisting agreements, documents or instruments in      full force and effect, enforceable in accordance with the terms thereof,      the Company and its Material Subsidiaries are not in default of any of the      material provisions of any such agreements, documents or instruments, nor      has any such default been alleged.  None of the properties (or      any interest in, or right to earn an interest in, any property) of the      Company and its Material Subsidiaries are subject to any right of first      refusal or purchase or acquisition rights which are not disclosed in the      Company’s Information Record; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | there      are no claims with respect to native rights currently or, to the best      knowledge of the Company, pending or threatened with respect to any of the      material properties of the Company or the Material      Subsidiaries |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | all      mining operations on the properties of the Company and the Material      Subsidiaries have been conducted in all respects in accordance with good      mining and engineering practices and all applicable material workers'      compensation and health and safety and workplace laws, regulations and      policies have been complied with; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | except      as disclosed in the Company’s Information Record, there are no      environmental audits, evaluations, assessments, studies or tests relating      to the Company or any of the Material Subsidiaries except for ongoing      assessments conducted by or on behalf of the Company in the ordinary      course; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | the      Company is in material compliance with the provisions of National      Instrument 43-101–Standards of Disclosure for Mineral Projects, and has      filed all required technical reports required  thereby. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each      material plan for retirement, bonus, stock purchase, profit sharing, stock      option, deferred compensation, severance or termination pay, insurance,      medical, hospital, dental, vision care, drug, sick leave, disability,      salary continuation, legal benefits, unemployment benefits, vacation,      incentive or otherwise contributed to or required to be contributed to, by      the Company for the benefit of any current or former director, officer,      employee or consultant of the Company (the “Employee Plans”) has      been maintained in compliance with its terms and with the requirements      prescribed by any and all statutes, orders, rules and regulations that are      applicable to such Employee Plans, in each case in all material respects      and has been publicly disclosed to the extent required by Applicable      Securities Laws; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      material accruals for unpaid vacation pay, premiums for unemployment      insurance, health premiums, federal or state pension plan premiums,      accrued wages, salaries and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | commissions      and employee benefit plan payments have been reflected in the books and      records of the Company or the Material Subsidiaries;  and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | there      is not currently any labour disruption which is adversely affecting or      could adversely affect, in a material manner, the carrying on of the      business of the Company and the Material Subsidiaries, on a consolidated      basis. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Company will have made and/or obtained the necessary filings, approvals,      consents and acceptances to or from, as the case may be, the Securities      Commissions and the Exchange required to be made or obtained by the      Company in connection with the Offering, on terms which are acceptable to      the Company and the Underwriters, acting reasonably, prior to the Closing      Date, it being understood that the Underwriters will do all that is      reasonably required to assist the Company to fulfil this      condition; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Company shall have delivered to the Underwriters within 24 hours of the      issuance of the receipt for the Preliminary Prospectus by each of the      Qualifying Provinces, or such later time as may be agreed upon by the      Company and the Underwriters, in such Canadian cities as the Underwriters      may reasonably request, the reasonable requirements of conformed      commercial copies of the PreliminaryProspectus; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Company shall have delivered to the Underwriters within 24 hours of the      issuance of the receipt for the Final Prospectus by each of the Qualifying      Provinces, or such later time as may be agreed upon by the Company and the      Underwriters, in such Canadian cities as the Underwriters may reasonably      request, the reasonable requirements of conformed commercial copies of the      Final Prospectus; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      Offered Securities will have been accepted for listing by the Exchange,      subject to the usual conditions, and will, at the opening of trading on      the Exchange on the Closing Date, be accepted for trading on the      Exchange; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Company's board of directors will have authorized and approved this      Agreement, the sale and issuance of the Offered Securities and all matters      relating to the foregoing; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the      Company will deliver a certificate of the Company and signed on behalf of      the Company, but without personal liability, by the Chief Executive      Officer of the Company and the Chief Financial Officer of the Company      or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | such      other senior officers of the Company as may be acceptable to the      Underwriters, acting reasonably, addressed      to the Underwriters and their counsel and dated the Closing Date, in form      and content satisfactory to the Underwriters, acting reasonably,      certifying that: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | no      order ceasing or suspending trading in any securities of the Company or      prohibiting the sale of the Offered Securities or any of the Company's      issued securities has been issued and no proceedings for such purpose are      pending or, to the knowledge of such officers,  threatened; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to      the knowledge of such officers, there has been no adverse material change      (actual, proposed or prospective, whether financial or otherwise) in the      business, affairs, operations, assets, liabilities (contingent or      otherwise) or capital of the Company and the Material Subsidiaries on a      consolidated basis since the date hereof which has not been generally      disclosed; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | since      the date hereof, no material change relating to the Company and the      Material Subsidiaries on a consolidated basis, except for the Offering,      has occurred with respect to which the requisite material change statement      or report has not been filed and no such disclosure has been made on a      confidential basis; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      representations and warranties of the Company contained in this Agreement      are true and correct in all material respects at the Time of Closing, with      the same force and effect as if made by the Company as at the Time of      Closing after giving effect to the transactions contemplated hereby;      and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the      Company has complied with all the covenants and satisfied all the terms      and conditions of this Agreement on its part to be complied with or      satisfied, other than conditions which have been waived by the      Underwriters, at or prior to the Time of  Closing; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      Company will have caused a favourable legal opinion to be delivered by its      Canadian counsel addressed to the Underwriters and the Underwriters'      counsel, acceptable in all reasonable respects to the Underwriters,      including in respect of those matters identified in Schedule “A” hereto.      In giving such opinion, counsel to the Company shall be entitled to rely,      to the extent appropriate in the circumstances, upon local counsel and      shall be entitled as to matters of fact to rely upon a certificate of fact      from responsible persons in a position to have knowledge of such facts and      their accuracy; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the      Company will have caused a favourable legal opinion to be delivered by      local counsel in the jurisdiction of incorporation of each of the Material      Subsidiaries addressed to the Underwriters, in form and substance satisfactory      to the Underwriters, acting reasonably, and with respect to the following      matters: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | the      incorporation and existence of each Material Subsidiary under the laws of      its jurisdiction of incorporation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

----

|   | (B) | as      to the holder of the issued and outstanding shares of each Material      Subsidiary; and |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (C) | that      each Material Subsidiary has all requisite corporate power under the laws      of its jurisdiction of incorporation to carry on its business as presently      carried on and own its properties; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if      any Offered Securities are being sold on the Closing Date to United States      purchasers pursuant to Schedule “C” to this Agreement, the Company shall      have caused a favourable legal opinion to be delivered by United States      counsel, in form and substance satisfactory to the Underwriters, to the      effect that the sale of such Offered Securities on the Closing Date to      such United States purchasers is not required to be registered under the      United States Securities      Act of 1933, as amended; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | the      Company will have caused a favourable title opinion to be delivered, in      form and substance satisfactory to the Underwriters, acting reasonably,      with respect to each of the Company’s and Material Subsidiaries’      properties; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | the      Company will have caused PricewaterhouseCoopers LLP to deliver an update      of its letter referred to in paragraph 6below; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | the      Company will cause its registrar and transfer agent to deliver a      certificate as to the issued and outstanding common shares of the      Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | certificates      representing the Offered Securities registered as the Underwriters may      direct (or, in the case of Offered Securities being sold to United States      purchasers, as such purchasers may direct), which certificates will be      delivered in Toronto; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | the      Underwriters will have been satisfied in their sole discretion with the      due diligence review and investigation of the Company and the Material      Subsidiaries perform by the Underwriters and their      representatives. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Additional Offered Securities will have been accepted for listing by the      Exchange, subject to the usual conditions, and will, at the opening of      trading on the Exchange on the Option Closing Date, be accepted for      trading on the Exchange; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Underwriters shall have received an updated certificate referred to in      paragraph 5.1 (f) above dated the Option Closing  Date; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Underwriters shall have received updated favourable legal opinions      referred to in paragraphs 5.1 (g) and (h) above dated the Option Closing      Date; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | if      any Additional Offered Securities are being sold on the Option Closing      Date to United States purchasers pursuant to Schedule “C” to this      Agreement, the Company shall have caused a favourable legal opinion to be      delivered by United States counsel, in form and substance satisfactory to      the Underwriters, to the effect that the sale of such Offered Securities      on the Option Closing Date to such United States purchasers is not      required to be registered under the United States Securities Act      of 1933, as amended; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Company will have caused PricewaterhouseCoopers LLP to deliver an update      of its letter referred to in paragraph 6below; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the      Company will cause its registrar and transfer agent to deliver an updated      certificate referred to in paragraph 5.1(l)  above; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | certificates      representing the Additional Offered Securities registered as the      Underwriters may direct (or, in the case of Additional Offered Securities      being sold to United States purchasers, as such purchasers may direct),      which certificates will be delivered in Toronto;  and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the      Underwriters shall have received such other certificates, agreements,      materials or documents as they may reasonably request with respect to the      good standing of the Company, the due authorization and issuance of the      Additional Offered Securities and other matters related to the issuance of      the Additional Offered Securities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | material change - there      shall be any material change in the affairs of the Company, or there      should be discovered any previously undisclosed material fact required to      be disclosed in the Preliminary Prospectus, Final Prospectus or amendment      thereto or there should occur a change in a material fact contained in the      Offering Documents or amendment thereto, in each case which, in the      reasonable opinion of the Underwriters (or any of them), has or would be      expected to have a significant adverse effect on the market price or value      of the Offered Securities or any other securities of the      Company; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | disaster out - (i) any      inquiry, action, suit, investigation or other proceeding (whether formal      or informal) (including matters of regulatory transgression or unlawful      conduct) is commenced, announced or threatened or any order made by any      federal, provincial, state, municipal or other governmental department,      commission, board, bureau, agency or instrumentality including, without      limitation, the Exchange or any securities regulatory authority or any law      or regulation is enacted or changed which in the opinion of the      Underwriters (or any of them), acting reasonably, operates to prevent or      restrict the issuance or trading of the Offered Securities or any other      securities of the Company or materially and adversely affects or will      materially and adversely affect the market price or value of the Offered      Securities      or any other securities of the Company; or (ii) if there should develop,      occur or come into effect or existence any event, action, state (including      terrorism), condition or major financial occurrence of national or      international consequence or any law or regulation      which in the reasonable opinion of the Underwriters seriously adversely      affects, or involves, or will, or could reasonably be expected to,      seriously adversely affect, or involve, the financial markets or the      business, operations or affairs of the Company and its subsidiaries taken      as a whole; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

|   | (c) | breach - the Company is      in breach of any material terms, condition or covenant of this Agreement      or any material representation or warranty given by the Company in this      Agreement becomes or is false. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any      misrepresentation or alleged misrepresentation (except as may be contained      in any information or statement relating solely to the Underwriters)      contained herein or in the Offering Documents or the documents      incorporated in the Offering Documents by reference pursuant to the      Offering; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)  | any      information or statement (except any information or statement relating      solely to the Underwriters) contained in any certificate or document of      the Company delivered  |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | under      this Agreement or pursuant to this Agreement which at the time and in      light of the circumstances under which it was made contains or is alleged      to contain a misrepresentation; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      omission or alleged omission to state in any certificate or document of      the Company delivered under this Agreement or any fact (except facts      relating solely to the Underwriters), or in the Offering Documents,      required to be stated in such document or necessary to make any statement      in such document not misleading in light of the circumstances under which      it was made; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      non-compliance or alleged non-compliance by the Company with any      requirements of the Applicable Securities Laws (other than any      non-compliance or alleged non-compliance caused by, arising directly or      indirectly from, or in consequence of any action or non-action of the      Underwriters). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Underwriters or an Indemnified Party has been grossly negligent or has      committed any fraudulent or illegal act in the course of the performance      of professional services rendered to the Company by the Underwriters      and/or the Indemnified Party or otherwise in connection with the matters      referred to in this Agreement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      expenses, losses, claims, damages or liabilities, as to which      indemnification is claimed, were directly caused by the gross negligence,      illegality or fraud referred to in(i). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the      employment thereof has been specifically authorized in writing by the      Company; |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | the      Indemnified Party has been advised by counsel retained by the Company or      the Underwriters that representation of the Company and the Indemnified      Party by the same counsel would be inappropriate for any reason, including      without limitation because there may be legal defences available to the      Indemnified Party which are different from or in addition to those      available to the Company (in which event and to that extent, the Company      shall not have the right to assume or direct the defence on the      Indemnified Party’s behalf) or that there is a conflict of interest      between the Company and the Indemnified Party or the subject matter of the      action, suit, proceeding, claim or investigation may not fall within the      indemnity set forth herein (in either of which events the Company shall      not have the right to assume or direct the defence on the Indemnified      Party’s behalf); or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Company has failed within a reasonable time after receipt of such written      notice to assume the defence of such action or  claim; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Name of      Underwriter                  |   | Liability |
|--------|------------------------------------------------|--------|-----------|
|   |                                           |   |      |
|   | GMP Securities      L.P.                       |   | 40%       |
|   |                                           |   |      |
|   | Raymond James      Ltd.              |   | 25%       |
|   |                                           |   |      |
|   | Cormark Securities      Inc.    |   | 17.5%     |
|   |                                           |   |      |
|   | Canaccord Capital      Corporation             |   | 17.5%     |

----

|  if to the      Company: |                                      |              |
|-------------------------------|-------------------------------------------|-------------------|
|                          |                                      |              |   |
|                          | Ur-Energy    Inc.                         |              |   |
|                          | 1128 Clapp      Lane                      |              |   |
|                          | P.      O. Box 279                        |              |   |
|                          | Manotick,      Ontario  K4M 1A3 |              |
|                          |                                      |              |   |
|                          |                                      |              |   |
|                          | Attention:            | William    Boberg |   |
|                          | Telecopier      Number:         | (720)    981-5643 |   |
|                          |                                      |              |   |
|  with a copy      to:    |                                      |              |

|   | McCarthy      Tétrault LLP         |                      |   |
|--------|-----------------------------------------|---------------------------|--------|
|   | Suite      1400, The Chambers           |                      |   |
|   | 40      Elgin Street                    |                      |   |
|   | Ottawa,      Ontario  K1P 5K6 |                      |
|   |                                    |                      |   |
|   | Attention:          | Virginia      Schweitzer  |   |
|   | Telecopier      Number:       | (613)  563-9386 |   |

----

| or if to the      Underwriters: |                                     |              |
|---------------------------------|------------------------------------------|-------------------|
|                            |                                     |              |   |
|                            | GMP      Securities L.P.                 |              |   |
|                            | 145      King Street                     |              |   |
|                            | Suite      1100                          |              |   |
|                            | Toronto,      Ontario  M5H 1J8 |              |
|                            |                                     |              |   |
|                            | Attention:           | Mark    Wellings  |   |
|                            | Telecopier      Number:        | (416)    943-6160 |   |
|                            |                                     |              |   |
|  with a copy      to:      |                                     |              |

|   | Cassels      Brock & Blackwell      LLP |              |   |
|--------|---------------------------------------------|-------------------|--------|
|   | 2100      Scotia Plaza                      |              |   |
|   | 40      King Street West                    |              |   |
|   | Toronto,      Ontario  M5H 3C2    |              |   |
|   |                                        |              |   |
|   | Attention:              | Chad    Accursi   |   |
|   | Telecopier      Number:           | (416)    642-7131 |   |

----

| GMP      SECURITIES L.P. |
|--------------------------|
| Per:                     |   | “Kevin    Reid” |   |   |
|                     |   | Authorized      Signing Officer |   |

| RAYMOND      JAMES LTD. |
|-------------------------|
| Per:                    |   | “John    Murphy” |   |   |
|                    |   | Authorized      Signing Officer |   |

| CANACCORD      CAPITAL CORPORATION |
|------------------------------------|
| Per:                               |   | “Ali    Pejman” |   |   |
|                               |   | Authorized      Signing Officer |   |

| CORMARK      SECURITIES INC. |
|------------------------------|
| Per:                         |   | “Darren      Wallace” |   |   |
|                         |   | Authorized      Signing Officer |   |

|   | Company Name |                            |
|--------|--------------|---------------------------------|
|   |         |                            |   |
|   | Per:         | “John      McNeice” |   |
|   |         |                            |   |
|   |         | Authorized      Signing Officer |   |
|   |         |                            |   |

----

|   | (i) | the      Company is a “reporting issuer”, or its equivalent, in the provinces of      British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and it is      not listed as in default of any requirement of the Applicable Securities      Laws in any of such provinces; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Company is a corporation existing under the Canada Business Corporations      Act and has all requisite corporate power to carry on its business      as now conducted and to own, lease and operate its property and assets and      to execute, deliver and perform its obligations under this      Agreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Company is authorized to issue, among other things, an unlimited number of      common shares; |
|--------|-------|---------------------------------------------------------------------------------------------------------|

|   | (iv) | as      to the issued and outstanding common shares and preference shares of the      Company; |
|--------|------|------------------------------------------------------------------------------------------------|

|   | (v) | the      Company has all necessary corporate power and capacity: (i) to execute and      deliver this Agreement and perform its obligations under this Agreement;      (ii) to issue and sell the Offered Securities; and (iii) to issue the      Over-Allotment Option; and (iv) to issue the Additional Offered Securities      upon exercise of the Over- AllotmentOption; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | all      necessary corporate action has been taken by the Company to authorize the      execution and delivery of each of the Preliminary Prospectus and the Final Prospectus      and the filing thereof with the Securities  Commissions; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | upon      the payment therefor and the issue thereof, the Offered Securities will      have been validly issued as fully paid and  non-assessable; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | the      Additional Offered Securities issuable upon exercise of the Over-Allotment      Option have been validly reserved for issuance by the Company, and upon      payment at the purchase price therefore and the issuance thereof, will be      validly issued as fully paid andnon-assessable; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | all      necessary corporate action has been taken by the Company to authorize the      execution and delivery of this Agreement and the performance of      its |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | obligations      hereunder and this Agreement has been executed and delivered by the      Company and constitute legal, valid and binding obligations of the Company      enforceable against it in accordance with its terms, subject to      bankruptcy, insolvency and other laws affecting the rights of creditors      generally and subject to such other standard assumptions and      qualifications including the qualifications that equitable remedies may be      granted in the discretion of a court of competent jurisdiction and that      enforcement of rights to indemnity, contribution and waiver of      contribution set out in this Agreement may be limited by applicable law      and that enforceability is subject to the provisions of the Limitations Act, 2002      (Ontario); |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | the      rights, privileges, restrictions and conditions attaching to the Offered      Securities are accurately summarized in all material respects in the Final      Prospectus; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | all      necessary documents have been filed, all requisite proceedings have been      taken and all approvals, permits and consents of the appropriate      regulatory authority in each Qualifying Provinces have been obtained by      the Company to qualify the distribution or distribution to the public of      the Offered Securities, the Over-Allotment Option and the Additional      Offered Securities in each of the Qualifying Provinces through persons who      are registered under applicable legislation and who have complied with the      relevant provisions of such applicable  legislation; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | subject      only to the standard listing conditions, the Offered Securities and the      Additional Offered Securities have been conditionally listed on the      Exchange; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | the      form and terms of the definitive certificate representing the common      shares at the Company have been approved by the directors of the Company      and comply in all material respects with the CanadaBusinessCorporations Act and      the rules and by-laws of theExchange; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiv) | the      execution and delivery of this Agreement, the fulfilment of the terms      hereof by the Company and the issuance, sale and delivery of the Offered      Securities to be issued and sold by the Company at the Time of Closing and      the issuance of the Over-Allotment Option, and the issuance of the      Additional Offered Securities upon exercise of the Over-Allotment Option,      do not and will not result in a breach of or default under, and do not and      will not create a state of facts which, after notice or lapse of time or      both, will result in a breach of or default under, and do not and will not      conflict with any of the terms, |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | conditions      or provisions of the articles or by-laws of the Company or any applicable      corporate law or Applicable SecuritiesLaws; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xv) | Equity      Transfer & Trust Company has been appointed the transfer agent and      registrar for the commonshares; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | (xvi) | the      Offered Securities and the Additional Offered Securities will, on the      Closing Date and the Option Closing Date, be qualified investments under      the Income Tax      Act (Canada) for trusts governed by registered retirement savings      plans, registered retirement income funds, deferred profit sharing plans      and registered education savings plans.  The Offered Securities      will not constitute “foreign property” to deferred income plans and      certain other persons who are generally exempt from tax;      and |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xvii) | the      statements set forth in the Final Prospectus under the caption      “Eligibility for Investment”, insofar as they purport to describe the      provisions of the laws referred to therein, are fair summaries of the      matters discussed therein. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                           | Jurisdiction | %      Ownership |
|--------------------------------|--------------|------------------|
| ISL      Resources Corporation | Ontario      | 100              |
| Ur-Energy      USA Inc.        | Colorado     | 100              |
| NFU      Wyoming, LLC          | Wyoming      | 100              |
|                           |         |             |

----

|   | (a) | “affiliate”      means affiliate as that term is defined in Rule  405; |
|--------|-----|------------------------------------------------------------------------------------|

|   | (b) | “Directed      Selling Efforts” means directed selling efforts as that term is defined in      Regulation S. Without limiting the foregoing, but for greater clarity in      this Schedule, it means, subject to the exclusions from the definition of      directed selling efforts contained in Regulation S, any activity      undertaken for the purpose of, or that could reasonably be expected to      have the effect of, conditioning the market in the United States for any      of the Offered Securities and includes the placement of any advertisement      in a publication with a general circulation in the United States that      refers to the offering of the Offered  Securities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “Final      U.S. Placement Memorandum” means the final U.S. placement memorandum, in      form satisfactory to the Company and the Underwriters, including the Final      Prospectus; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | “Foreign      Issuer” shall have the meaning ascribed thereto in Regulation S. Without      limiting the foregoing, but for greater clarity, it means any issuer which      is (a) the government of any country other than the United States or of      any political subdivision thereof or a national of any country other than      the United States; or (b) a corporation or other organization incorporated      under the laws of any country other than the United States, except an      issuer meeting the following conditions: (1) more than 50 percent of the      outstanding voting securities of such issuer are held of record either      directly or indirectly by residents of the Unites States; and (2) any of      the following: (i) the majority of the executive officers or directors of      the issuer are United States citizens or residents, (ii) more than 50      percent of the assets of the issuer are located in the United States, or      (iii) the business of the issuer is administered principally in the United      States; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | “General      Solicitation or General Advertising” means “general solicitation or      general advertising”, as used in Rule 502(c) under the U.S. Securities      Act, including advertisements, articles, notices or other communications      published in any newspaper, magazine or similar media or broadcast over      radio or television, or any seminar or meeting whose attendees had been      invited by general solicitation or general  advertising; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | “Institutional      Accredited Investor” means an accredited investor, as defined in Rule      501(a) of Regulation D, that satisfies the criteria specified in Rule      501(a)(1),(2),(3) or (7) of RegulationD; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | “Preliminary      U.S. Placement Memorandum” means the preliminary U.S. placement      memorandum, in form satisfactory to the Company and the Underwriters,      including the PreliminaryProspectus; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | “Regulation      D” means Regulation D adopted by the SEC under the U.S. Securities      Act; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (i) | “Regulation      S” means Regulation S adopted by the SEC under the U.S. Securities      Act; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (j) | “SEC”      means the United States Securities and Exchange  Commission; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (k) | “Substantial      U.S. Market Interest” means “substantial U.S. market interest” as that      term is defined in Regulation S; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | “U.S.      Exchange Act” means the United States Securities Exchange Act of 1934, as      amended; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (m) | “U.S.      Securities Act” means the United States Securities Act      of 1933, as amended; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (n) | “United      States” means the United States of America, its territories and      possessions, any state of the United States, and the District of      Columbia. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | It      has not offered and sold, and will not offer and sell, any Offered      Securities forming part of its allotment described in section 12.1 of the      underwriting agreement except (a) in an offshore transaction to a person      that is not in the United States in accordance with Rule 903 of Regulation      S or (b) in the United States as provided in paragraphs 2 through 10      below. Accordingly, except as provided in paragraphs 2 through 10 below,      neither the Underwriter nor any of its affiliates nor any persons acting      on its or their behalf, (i) has made or will make any offer to sell, or      any solicitation of any offer to buy, any Offered Securities to a person      in the United States, (ii) has made or will make any sale of Offered      Securities unless, at the time the buy order was or will have been      originated, either the purchaser is outside the United States or the      Underwriter, its affiliates and any person acting on their behalf      reasonably believe that the purchaser is outside the United States, or      (iii) has engaged or will |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | engage      in any Directed Selling Efforts in the United States with respect to the      Offered Securities. |
|--------|---------------------------------------------------------------------------------------------------------------|

|   | 2. | It      has not entered and will not enter into any contractual arrangement with      respect to the distribution of the Offered Securities, except with its      affiliates, any selling group members or with the prior written consent of      the Company. It shall require each of its U.S. broker-dealer affiliate and      each selling group member to agree, for the benefit of the Company, to      comply with, and shall use its best efforts to ensure that each of its      U.S. broker-dealer affiliate and each selling group member complies with,      the provisions of this Schedule “C” applicable to such Underwriter as if      such provisions applied to such U.S. broker-dealer affiliate or selling      group member. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | All      offers and sales of Offered Securities in the United States shall be made      through the Underwriter’s U.S. broker-dealer affiliate in compliance with      all applicable U.S. federal and state broker-dealer      requirements.  Such U.S. broker-dealer affiliate is duly      registered as a broker-dealer pursuant to Section 15(b) of the U.S.      Exchange Act, is duly registered as a broker-dealer under the laws of each      U.S. state in which it has offered or sold or will offer or sell the      Offered Securities (except where an exemption from state broker-dealer      registration requirements is available), and is a member in good standing      with the National Association of Securities Dealers,  Inc. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | In      connection with offers and sales of Offered Securities in the United      States (i) no General Solicitation or General Advertising has been or      shall be used, and (ii) such offers and sales have not been and shall not      be made in any manner involving a public offering within the meaning of      Section 4(2) of the U.S. SecuritiesAct. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Any      offer, sale or solicitation of an offer to buy Offered Securities that has      been made or will be made in the United States was or will be made only to      Institutional Accredited Investors that are offered the Offered Securities      for sale directly by the Company to such Institutional Accredited      Investors in transactions that are exempt from registration pursuant to      Rule 506 of Regulation D and applicable U.S. state securities      laws. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Underwriter, acting through its U.S. broker-dealer affiliate, may offer      the Offered Securities in the United States only to offerees with respect      to which such Underwriter has a pre-existing relationship and has      reasonable grounds to believe are Institutional Accredited      Investors. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Prior      to any sale of Offered Securities in the United States, it shall cause      each U.S. purchaser thereof to execute a subscription agreement in the      form attached to the Final U.S. Placement  Memorandum. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | Each      offeree of Offered Securities in the United States shall be provided with      a copy of either the Preliminary U.S. Placement Memorandum, including the      Preliminary Prospectus, or the Final U.S. Placement Memorandum, including      the Final Prospectus.  Each purchaser of Offered Securities in      the United States shall be provided, prior to the time of purchase of any      Offered Securities, with a copy ofthe |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Final      U.S. Placement Memorandum, including the Final Prospectus.  No      other written material shall be used in connection with the offer and sale      of the Offered Securities. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | At      least one business day prior to the Closing Date and, if the      Over-Allotment Option is exercised, at least one business day prior to the      Option Closing Date, the transfer agent will be provided with a list of      all purchasers of the Offered Securities in the United    States. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10. | At      the closing of the Offering and at the closing of any exercise of the      Over-Allotment Option, each U.S. broker-dealer who offered or sold any      Offered Securities together with its Canadian affiliated Underwriter will      provide a certificate, substantially in the form of Appendix I, relating      to the manner of the offer and sale of the Offered Securities in the      United States.  If the Underwriter does not deliver such      certificate, it will be deemed to represent and warrant to the Company, as      at such closing, that none of it, any of its affiliates or any person      acting on any of their behalf has offered or sold any of the Offered      Securities in the United States. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11. | None      of the Underwriter, any of its affiliates or any person acting on any of      their behalf has taken or will take any action in violation of Regulation      M under the U.S. Exchange Act in connection with the offer and sale of the      Offered Securities. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Company is, and at each closing will be, a Foreign Issuer with no      Substantial U.S. Market Interest in the common shares of the      Company. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Company is not, and as a result of the sale of the Offered Securities      contemplated hereby will not be, registered or required to be registered      under the United States Investment Company Act of 1940, as      amended. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Except      with respect to offers and sales to Institutional Accredited Investors in      reliance upon Rule 506 of Regulation D in the manner described in this      Schedule “C”, neither the Company nor any of its affiliates, and assuming      the representations, warranties and covenants of the Underwriters are true      and accurate, nor any person acting on its or their behalf, has made or      will make, in connection with offers and sales of the Offered Securities      pursuant to this Agreement: (A) any offer to sell, or any solicitation of      an offer to buy, any Offered Securities to a person in the United States;      or (B) any sale of Offered Securities unless, at the time the buy order      was or will have been originated, either (i) the purchaser is outside the      United States or (ii) the Company, its affiliates, and any person acting      on their behalf reasonably believe that the purchaser is outside the      United States. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | None      of the Company or any of its affiliates or, assuming the representations,      warranties and covenants of the Underwriters are true and accurate, any      person acting on its or their behalf, has made or will make any Directed      Selling Efforts in the United States with respect to the Offered      Securities, or has taken or will take any action that would cause the      exemption afforded by Rule 506 of Regulation D or Rule 903 of Regulation      S, as applicable, to be unavailable for offers and sales of the Offered      Securities pursuant to thisAgreement. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 5. | None      of the Company, any of its affiliates or, assuming the representations,      warranties and covenants of the Underwriters are true and accurate, any      person acting on its or their behalf has      engaged or will engage in any form of General Solicitation or General      Advertising or any manner involving a public offering within the meaning      of Section 4(2) of the U.S. Securities Act, with respect to offers or      sales of the Offered Securities in the United    States. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Company has not offered or sold, and will not offer or sell, any of its      securities in a manner that would be integrated with offers and sales of      Offered Securities in the United States pursuant to this Schedule “C” and      that would cause such sales of Offered Securities to be ineligible for the      exemption from registration provided by Rule 506 of Regulation      D. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | None      of the Company, any of its affiliates or, assuming the representations,      warranties and covenants of the Underwriters are true and accurate, any      person acting on any of their behalf has taken or will take any action in      violation of Regulation M under the U.S. Exchange Act in connection with      the offer and sale of the OfferedSecurities. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | None      of the Company or any of its predecessors or affiliates has been subject      to any order, judgment or decree of any court of competent jurisdiction      temporarily, preliminarily or permanently enjoining such person for      failure to comply with Rule 503 of RegulationD. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | The      Company may qualify as a "passive foreign investment company" ("PFIC") as      defined in section 1297 of the Internal Revenue Code of 1986, as amended,      (the "Code"). For each taxable year, if any, that the Company qualifies as      a PFIC, in the case of a Purchaser that is a "United States person" (as      defined in section 7701(a)(30) of the Code) and that has made an effective      "qualified electing fund" election (as defined in section 1295 of the      Code) with respect to the Company (a "QEF Election"), the Company upon      receiving the written request of such Purchaser will provide to such      Purchaser (a) a "PFIC Annual Information Statement" as described in      Treasury Regulation section 1.1295-1(g) (or any successor Treasury      Regulation), including all representations and statements required by such      PFIC Annual Information Statement, and (b) all additional information that      such Purchaser is required to obtain in connection with maintaining such      QEF Election. With regard to the PFIC Annual Information Statement, as      permitted by Treasury Regulation section 1.1293-1(a)(2) the Company will      calculate and report the amount of each category of long-term capital gain      described in section 1(h) of the Code that was recognized by the      Company. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | we      have offered and sold the Offered Securities in the United States      exclusively through the U.S. Placement Agent, which is duly registered as      a broker-dealer pursuant to Section 15(b) of the U.S. Exchange Act, is      duly registered as a broker-dealer under the laws of each U.S. state in      which it has offered or sold the Offered Securities (except where an      exemption from state broker-dealer registration requirements is available)      and is a member of and is in good standing with the National Association      of Securities Dealers, Inc. on the datehereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | all      offers and sales of the Offered Securities by us in the United States have      been effected in accordance with all applicable U.S. federal and state      broker-dealer requirements; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | each      offeree in the United States that we offered the Offered Securities was      provided with a copy of either the Preliminary U.S. Placement Memorandum,      including the Preliminary Prospectus, or the Final U.S. Placement      Memorandum, including the Final Prospectus, each purchaser in the United      States that we have arranged to purchase Offered Securities from the      Company was provided with a copy of the Final U.S. Placement Memorandum,      including the Final Prospectus, and we have not used any other written      material in connection with the offer and sale of the Offered      Securities; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | immediately      prior to making any offer or solicitation to an offeree in the United      States, we had reasonable grounds to believe and did believe that each      offeree was an Institutional Accredited Investor and, on the date hereof,      we continue to believe that each purchaser that we have arranged to      purchase Offered Securities in the United States is an Institutional      Accredited Investor; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | no      General Solicitation or General Advertising was used by us in connection      with the offer or sale of the Offered Securities in the United      States; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | prior      to any sale of Offered Securities in the United States, we caused each      U.S. purchaser to execute a subscription agreement in the form attached to      the Final U.S. Placement Memorandum;and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | the      offering of the Offered Securities has been conducted by us in accordance      with the terms of the UnderwritingAgreement. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | Terms      used in this certificate have the meanings given to them in the      Underwriting Agreement unless otherwise defined  herein. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| [CANADIAN      UNDERWRITER]                                          |   | [U.S. AFFILIATE OF CANADIAN      UNDERWRITER] |   |
|----------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                 |   |                                          |   |
| By:      _____________________________      |   | By:      _____________________________        |   |
| Name:      _____________________________                   |   | Name:      _____________________________      |   |
| Title:      ______________________________                 |   | Title:      _____________________________     |   |

----

|                                     | No.      of Shares |
|------------------------------------------|--------------------|
| Compensation      options                |               |
| Expiring      November 29, 2007 @ $1.25  | 55,568             |
| Stock      options                       |               |
| Expiring      November 17, 2010 @ $1.25  | 2,956,800          |
| Expiring      March 25, 2011 @ $2.01     | 75,000             |
| Expiring      April 21, 2011 @ $2.35     | 1,525,000          |
| Expiring      September 27, 2011 @ $2.75 | 435,000            |
| Expiring      January 1, 2012 @ $4.08    | 200,000            |
| Expiring      February 15, 2012 @ $5.03  | 600,000            |
| Total      stock options                 | 5,791,800          |
| Total      Convertible Securities        | 5,847,368          |