**POLYMET      MINING CORP.**

**SUBSCRIPTION      AGREEMENT FOR UNITS**

**(Canadian      and Offshore Subscribers)**

| **TO:** | **POLYMET                MINING CORP.** |
|---------|-----------------------------------------|

| **AND              TO:** | **RESEARCH                CAPITAL CORPORATION** |
|--------------------------|-------------------------------------------------|

**"Corporation")      **
** **

**SUBSCRIPTION      AND SUBSCRIBER INFORMATION**

**Please      print all information (other than Signatures), as applicable, in the space      provided below**

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| Name                    of Subscriber                                                                                                                                   |   | Number                    of Units: ___________________________X $0.90                                                                                                                                                                                                               |
|                                                                                                                                                                    |   | =                                                                                                                                                                                                                                                                                    |
| Account                    Reference (if applicable):                    ____________________________________                                                      |   |                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                    |   | Aggregate                    Subscription Price: ___________________________________                                                                                                                                                                                                 |
| By:                    ____________________________________________________________                                                                                     |   | (the                    “**Subscription                    Price**”)                                                                                                                                                                                                     |
| Authorized                    Signature                                                                                                                                 |   |                                                                                                                                                                                                                                                                                 |
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| (Official                    Capacity or Title - if the Subscriber is not an                    individual)                                                             |   | **If                    the Subscriber is signing as agent for a principal (beneficial                    purchaser)                    and is not purchasing as a trustee or agent for account fully                    managed by                    it, complete the following:** |
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| (Name                    of individual whose signature appears above if different than                    the name of                    the Subscriber printed above.) |   |                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                    |   | (Name                    of Principal)                                                                                                                                                                                                                                               |

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| (Subscriber’s                    Address, including Municipality and Province)                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (Principal’s                    Address)                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| (Telephone                    Number)                                                                            (Email                    Address) |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| **Account                    Registration:**                                                                                                                                                                                                                                                                                                                                                                                                |   | **Delivery                    Instructions as set forth below:**                                                                                                                                                                                                                                                                                                                                                                                                               |
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| (Name)                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (Name)                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (Account                    Reference, if applicable)                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (Account                    Reference, if applicable)                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| (Address,                    including Postal Code)                                                                                                                                                                                                                                                                                                                                                                                         |   | (Contact                    Name)                                                                                  (Telephone                    Number) |
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| Number and kind of securities of the Corporation                held,                directly or indirectly, if any: ______________________________________________ |   | 1.              State whether the Subscriber is an Insider (as such term is hereinafter              defined) of the Corporation: Yes o     No                o 2. State                whether the Subscriber is a member of the Pro                Group (as such term is hereinafter defined):Yeso     No                o |

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**TERMS      AND CONDITIONS OF SUBSCRIPTION FOR**

**UNITS**

**ARTICLE      **
**1-**
**      INTERPRETATION**

**1.1**
**Definitions**

**"Agency      Agreement" **

**Agent**

**"Business      Day" **

**"Closing"      **

**"Closing      Date" **

**"Closing      Time" **

**"Common      Shares" **

**"Compensation      Options" **

**"Control      Person" **
*Securities      *
*Act      *

**"Corporation"      **

**Exercise      Price**

**"Insider**
** **

**Offering**

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**"person"      **

**"Pro      Group" **

**"Securities"      **

**"Securities      **

**"Subscriber**
** **

**"Subscription      Agreement" **
**"hereof',      "hereto", "hereunder", "herein" **

**"Subscription      Price" **

**"Term      Sheet" **

**"TSXV"      **

**"TSXV      Approval" **

**"United      States" **

**"Units"      **

**U.S.      Purchaser" **

----

**U.S.      Securities **

**"Warrants"      **

**"Warrant      Shares" **

**1.2**
**Gender      and Number**

**1.3      **
**Currency**

**1.4      **
**Subdivisions,      Headings and Table of Contents**

**ARTICLE      2 - SCHEDULES**

**2.1      **
**Description      of Schedules**

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**ARTICLE      3 - SUBSCRIPTION AND DESCRIPTION OF UNITS**

**3.1      **
**Subscription      for the Units**

**3.2      **
**Description      of Units**

**3.3      **
**Acceptance      and Rejection of Subscription by the Corporation**

**ARTICLE      4 - CLOSING**

**4.1      **
**Closing**

**"Closing")      **
**"Closing      Time") **
**"Closing      Date"). **

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**4.2      **
**Conditions      of Closing**

|   | (a) | unless                other arrangements acceptable to the Agent have been made, payment                by the                Subscriber of the Subscription Price by certified cheque or bank                draft in                Canadian dollars payable to "Research Capital                Corporation"; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                Subscriber having properly completed, signed and delivered this                Subscription Agreement to: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the                Subscriber having properly completed, signed and delivered one of                either                Schedule "A", "B" or "C" hereto, as applicable;                and |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | (if                applicable) the Subscriber having completed and provided the TSXV                Form 4C                Corporate Placee Registration Form set out as Schedule "D"                hereto. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**4.3      **
**Authorization      of the Agent**

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|   | (a) | to                receive certificates representing the Common Shares and Warrants,                to                execute in the Subscriber's name and on its behalf all closing receipts                and required documents, to complete and correct any errors or omissions                in                any form or document provided by the Subscriber in connection with                the                subscription for the Units and to exercise any rights of termination                contained in the Agency Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to                extend such time periods and to waive, in whole or in part, any                representations, warranties, covenants or conditions for the Subscriber's                benefit contained in this Subscription Agreement, and the Agency                Agreement                or any ancillary or related document;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to                terminate this Subscription Agreement if any condition precedent                is not                satisfied, in such manner and on such terms and conditions as the                Agent in                its sole discretion may determine. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      5- REPRESENTATIONS AND**

**WARRANTIES      OF THE CORPORATION**

**5.1**

**5.2**

|   | (a) | the                Corporation is not an "investment company" within the meaning of                the                *Investment                Company Act of**1940*(United                States); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                Corporation is a "foreign issuer" (as such term is defined in Regulation                S                of the U.S. Securities Act) and there is no "substantial U.S. market                interest" (as such tern is defined in Regulation S of the U.S. Securities                Act) in the Securities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | neither                the Corporation nor any of its affiliates, nor any person acting                on its or                their behalf (i) has made or will make any "directed selling efforts"                (as                such term is defined in Regulation S of the U.S. Securities Act)                in the                United States, or (ii) has engaged in or will engage in any form                of                "general solicitation" or "general advertising" (as such terns are                defined                in Rule 502 (c) under Regulation D of the U.S. Securities Act) in                the                United States with respect to offers or sales of the                Securities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | the                Corporation is not required to file reports under Section 13(a) or                Section                15(d) of the United States Securities Exchange Act of 1934, as                amended; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (e) | the                Corporation has not, for a period of six months prior to the date                hereof,                sold, offered for sale or solicited any offer to buy any of its securities                in a manner that would be integrated with the offer and sale of the                Units                and would cause the exemption from registration set forth in Rule                506 of                Regulation D or Rule 903 of Regulation S of the U.S. Securities Act                to                become unavailable with respect to the offer and sale of the Securities;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the                Corporation will use its best efforts to remain a "foreign issuer"                (as                such teen is defined in Regulation S of the U.S. Securities Act)                for a                period of eighteen (18) months following the Closing                Date. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**5.3**

**ARTICLE      6 - ACKNOWLEDGEMENTS, COVENANTS,**

**REPRESENTATIONS      AND WARRANTIES OF THE SUBSCRIBER**

**6.1**
**Acknowledgements,      Representations, Warranties and Covenants**
**       **
**of      the Subscriber**

|   | (a) | The                Subscriber, and if applicable) each beneficial purchaser for whom                it is                acting, is a resident in the jurisdiction set out on the face page                of this                Subscription Agreement and the Subscriber and any such beneficial                purchaser was solicited to purchase the Units solely in such jurisdiction.                Such address was not created and is not used solely for the purpose                of                acquiring the Units and the Subscriber and any beneficial purchaser                was                solicited to purchase the Units solely in such                jurisdiction. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | If                the Subscriber, and (if applicable) any beneficial purchaser for                whom it                is acting, are resident in any of the provinces of Ontario, Alberta                and                British Columbia, or of a jurisdiction other than Canada or the United                States or are otherwise subject to the securities laws of any of                such                provinces or jurisdictions, the Subscriber, on its own behalf and                (if                applicable) on behalf of any such beneficial purchaser, makes the                representations, warranties and covenants set out in either Schedule                "A",                Schedule "B" or Schedule "C", as applicable, with the Corporation,                and the                Subscriber, and (if applicable) any such beneficial purchaser, may                avail                itself of one or more of the categories of prospectus exempt purchasers                listed in one of Schedule "A", Schedule "B" or Schedule "C", as                applicable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Subscriber has properly completed, executed and delivered within                applicable time periods to the Corporation the applicable certificate                and                form (dated as of the date hereof) set forth in either Schedule "A",                Schedule "B" or Schedule "C" and (if applicable) Schedule "D" and                the                information contained therein is true and                correct. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                representations, warranties and covenants contained in the applicable                Schedules will be true and correct both as of the date of execution                of                this Subscription Agreement and as of the Closing                Time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The                Subscriber or (if applicable) any beneficial purchaser for whom it                is                acting is neither a U.S. Purchaser nor subscribing for the Units                for the                account of a U.S. Purchaser or for resale in the United States and                the                Subscriber confirms that: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (f) | If                the Subscriber, or any beneficial purchaser for whom it is acting,                is not                a person resident in Canada, the subscription for the Units by the                Subscriber, or such beneficial purchaser, does not contravene any                of the                applicable securities legislation in the jurisdiction in which the                Subscriber or such beneficial purchaser resides and does not give                rise to                any obligation of the Corporation or the Agent to prepare and file                a                prospectus or similar document or to register the Units or to be                registered with or to file any report or notice with any governmental                or                regulatory authority. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | The                execution and delivery of this Subscription Agreement, the performance                and                compliance with the terms hereof, the subscription for the Units                and the                completion of the transactions described herein by the Subscriber                will not                result in any material breach of, or be in conflict with or constitute                a                material default under, or create a state of facts which, after notice                or                lapse of time, or both, would constitute a material default under                any term                or provision of the constating documents, by-laws or resolutions                of the                Subscriber, the Securities Laws or any other laws applicable to the                Subscriber, any agreement to which the Subscriber is a party, or                any                judgment, decree, order, statute, rule or regulation applicable to                the                Subscriber. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | If                the Subscriber is subscribing for the Units as principal, it is doing                so                for its own account and not for the benefit of any other person (within                the meaning of applicable Securities Laws) and not with a view to                the                resale or distribution of all or any of the Units or if it is not                subscribing as principal, it acknowledges that the Corporation may                be                required by law to disclose to certain regulatory authorities the                identity                of each beneficial purchaser of the Units for whom it is                acting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | In                the case of a subscription for the Units by the Subscriber acting                as                trustee or agent (including, for greater certainty, a portfolio manager                or                comparable adviser) for a principal, the Subscriber is duly authorized                to                execute and deliver this Subscription Agreement and all other necessary                documentation in connection with such subscription on behalf of each                such                beneficial purchaser, each of whom is subscribing as principal for                its own                account, not for the benefit of any other person and not with a view                to                the resale or distribution of the Common Shares and Warrants, and                this                Subscription Agreement has been duly authorized, executed and delivered                by                or on behalf of and constitutes a legal, valid and binding agreement                of,                such principal, and the Subscriber acknowledges that the Corporation                and/or the Agent may be required by law to disclose the identity                of each                beneficial purchaser for whom the Subscriber is                acting. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (j) | In                the case of a subscription for the Units by the Subscriber acting                as                principal, this Subscription Agreement has been duly authorized,                executed                and delivered by, and constitutes a legal, valid and binding agreement                of,                the Subscriber. This Subscription Agreement is enforceable in accordance                with its terms against the Subscriber and (if applicable) any beneficial                purchaser on whose behalf the Subscriber is                acting. |
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|   | (k) | If                the Subscriber is: |
|--------|-----|--------------------------------------|

|   | (i) | a                corporation, the Subscriber is duly incorporated and is validly subsisting                under the laws of its jurisdiction of incorporation and has all requisite                legal and corporate power and authority to execute and deliver this                Subscription Agreement, to subscribe for the Units as contemplated                herein                and to observe and perform its obligations under the terms of this                Subscription Agreement; |
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|   | (ii) | a                partnership, syndicate or other form of unincorporated organization,                the                Subscriber has the necessary legal capacity and authority to execute                and                deliver this Subscription Agreement and to observe and perform its                covenants and obligations hereunder and has obtained all necessary                approvals in respect thereof; or |
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|   | (iii) | an                individual, the Subscriber is of the full age of majority and is                legally                competent to execute this Subscription Agreement and to observe and                perform his or her covenants and obligations                hereunder. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Other                than the Agent (and any group of investment dealers managed by the                Agent                for the purposes of offering the Units for sale), there is no person                acting or purporting to act in connection with the transactions                contemplated herein who is entitled to any brokerage or finder's                fee. If                any person establishes a claim that any fee or other compensation                is                payable in connection with this subscription for the Units, the Subscriber                covenants to indemnify and hold harmless the Corporation and the                Agent                with respect thereto and with respect to all costs reasonably incurred                in                the defence thereof. |
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|   | (m) | The                Subscriber is not, with respect to the Corporation or any of its                affiliates, a Control Person. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | If                required by applicable Securities Laws or the Corporation, the Subscriber                will execute, deliver and file or assist the Corporation in filing                such                reports, undertakings and other documents with respect to the issue                of the                Common Shares, Warrants or Warrant Shares as may be required by any                securities commission, stock exchange or other regulatory                authority. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (o) | The                  Subscriber, and each beneficial purchaser for whom it is acting,                  have been                  advised to consult their own legal advisors with respect to trading                  in                  the                  Common Shares, Warrants, and Warrant Shares and with respect to                  the resale                  restrictions imposed by the Securities Laws of the province in                  which the                  Subscriber resides and other applicable securities laws, and acknowledges                  that no representation has been made respecting the applicable                  hold                  periods imposed by the Securities Laws and other applicable securities                  laws or other resale restrictions applicable to such securities                  which                  restrict the ability of the Subscriber (or others for whom it is                  acting)                  to resell such securities, that the Subscriber (or others for whom                  it is                  acting) is solely responsible to find out what these restrictions                  are and                  the Subscriber is solely responsible (and neither the Corporation                  nor the                  Agent are in any way responsible) for compliance with applicable                  resale                  restrictions and the Subscriber is aware that it (or beneficial                  purchaser                  for whom it is acting) may not be able to resell such securities                  except in                  accordance with limited exemptions under the Securities Laws and                  other                  applicable securities laws. |
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|   | (p) | The                Subscriber has not received or been provided with a prospectus, offering                memorandum, within the meaning of the Securities Laws, or any sales                or                advertising literature in connection with the Offering and the                Subscriber's decision to subscribe for the Units was not based upon,                and                the Subscriber has not relied upon, any oral or written representations                as                to facts made by or on behalf of the Corporation or the Agent. The                Subscriber's decision to subscribe for the Units was based solely                upon the                Term Sheet attached hereto as Schedule "B" and information about                the                Corporation which is publicly available (any such information having                been                obtained by the Subscriber without independent investigation or                verification by the Agent). |
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|   | (q) | The                Subscriber is not purchasing Units with knowledge of material information                concerning the Corporation which has not been generally disclosed                on                SEDAR. |
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|   | (r) | No                person has made any written or oral                representations: |
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|   | (i) | that                any person will resell or repurchase the Common Shares, the Warrants                or                the Warrant Shares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that                any person will refund the Subscription Price;                or |
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|   | (iii) | as                to the future price or value of the Common Shares, the Warrants or                the                Wan-ant Shares. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | The                subscription for the Units has not been made through or as a result                of,                and the distribution of the Common Shares and Warrants is not being                accompanied by any advertisement, including without limitation in                printed                public media, radio, television or telecommunications, including                electronic display, or as part of a general                solicitation. |
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|   | (t) | None                of the funds being used to purchase Units are, to the Subscriber's                knowledge, proceeds obtained or derived directly or indirectly as                a result                of illegal activities. |
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**6.2**
**Acknowledgments      of the Subscriber**

|   | (a) | The                Subscriber has received a copy of the Term Sheet setting out the                principal                terms of the Offering. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Subscriber acknowledges that the aggregate gross proceeds of the                Offering                will be up to $7,750,000. The Subscriber further acknowledges that                in                addition to the Offering, the Corporation may issue Common Shares                or Units                to purchasers under non-brokered private                placements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | No                securities commission, agency, governmental authority, regulatory                body,                stock exchange or other regulatory body has reviewed or passed on                the                merits of the Common Shares, the Warrants or the Warrant                Shares. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                Common Shares and Warrants shall be, and the Warrant Shares may be,                subject to statutory resale restrictions under the Securities Laws                of the                province in which the Subscriber resides and under other applicable                securities laws, and the Subscriber covenants that it will not resell                the                Common Shares, Warrants or Warrant Shares except in compliance with                such                laws and the Subscriber acknowledges that it is solely responsible                (and                neither the Corporation nor the Agent are in any way responsible)                for such                compliance. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The                Subscriber's ability to, transfer the Common Shares, Warrants and                Warrant                Shares is limited by, among other things, applicable Securities                Laws. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The                certificates representing the Common Shares and Warrants will bear,                as of                the Closing Date, legends substantially in the following form and                with the                necessary information inserted: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**"UNLESS      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT      TRADE THE SECURITY BEFORE <INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1)      DAY AFTER CLOSING DATE>."**

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**"WITHOUT      PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL      APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS      CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED      ON OR      THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR      TO      OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL < INSERT THE DATE THAT IS      FOUR (4) MONTHS AND ONE (1) DAY AFTER THE CLOSING      DATE>."**

|   | (g) | In                the event that holders of Warrants exercise the Warrants prior to                the                expiry                of the hold periods applicable to the Warrants, the Warrant                Shares                will bear legends substantially in the following form and with the                necessary information inserted: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**"UNLESS      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT      TRADE THE SECURITY BEFORE <INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1)      DAY AFTER CLOSING DATE>.**

**"WITHOUT      PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL      APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS      CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED      ON OR      THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR      TO      OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL < INSERT THE DATE THAT IS      FOUR (4) MONTHS AND ONE (1) DAY AFTER THE CLOSING      DATE>."**

|   | (h) | The                Agent and/or its counsel, directors, officers, employees, agents                and                representatives assume no responsibility or liability of any nature                whatsoever                for the accuracy or adequacy of any such publicly available information                concerning the Corporation or as to whether all information concerning                the Corporation that is required to be disclosed or filed by                the                Corporation under the Securities Laws has been so disclosed or                filed. |
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|   | (i) | The                Subscriber, and each beneficial purchaser for whom it is acting shall                execute,                deliver, file and otherwise assist the Corporation and the                Agent with                filing all documentation required by the applicable Securities Laws                to                permit                the subscription for the Units and the issuance of the Common Shares,                Warrants or Warrant Shares as may be                required. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (j) | The                Corporation is relying on the representations, warranties and covenants                contained herein and in the applicable Schedules attached hereto                to                determine the Subscriber's eligibility to subscribe for the Units                under                applicable Securities Laws and other applicable securities laws and                the                Subscriber agrees to indemnify the Corporation, the Agent and each                of                their respective directors and officers against all losses, claims,                costs,                expenses, damages or liabilities which any of them may suffer or                incur as                a result of or arising from reliance thereon. The Subscriber undertakes                to                immediately notify the Corporation of any change in any statement                or other                information relating to the Subscriber set forth in such applicable                Schedules which takes place prior to the Closing                Time. |
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|   | (k) | The                Corporation is relying on an exemption from the requirement to provide                the                Subscriber with a prospectus under the Securities Laws and, as a                consequence of acquiring the Common Shares, Warrants and Warrant                Shares                pursuant to such exemption, certain protections, rights and remedies                provided by the Securities Laws, including statutory rights of rescission                and/or damages, will not be available to the                Subscriber. |
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|   | (l) | The                Common Shares, Warrants and the Warrant Shares are being offered                pursuant                to an exclusion from the registration requirements of the U.S. Securities                Act pursuant to Regulation S promulgated thereunder. The Common Shares,                Warrants and the Warrant Shares have not been and will not be registered                under the U.S. Securities Act and may not be offered or sold in the                United                States or to U.S. Purchasers unless registered under such act or                an                exemption from the registration requirements of such act is                available. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | The                Subscriber acknowledges that the Warrants may not be exercised in                the                United States by or on behalf of a U.S. Purchaser, unless the Common                Shares, Warrants and Warrant Shares are registered under the U.S.                Securities Act and applicable state securities law or unless the                Corporation has consented to such offer, sale or distribution and                such                exercise is made in accordance with an exemption from the registration                requirements under the U.S. Securities Act and the securities laws                of all                applicable states of the United                States. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | The                Subscriber, and each beneficial purchaser for whom it is acting,                is                responsible for obtaining such legal and tax advice as it considers                appropriate in connection with the execution, delivery and performance                of                this Subscription Agreement and the transactions contemplated under                this                Subscription Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (o) | There                is no government or other insurance covering the Common Shares, Warrants,                or the Warrant Shares. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | There                are risks associated with the purchase of the Common Shares, Warrants,                or                Warrant Shares. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

**6.3**
**Reliance      on Representations, Warranties, Covenants and      Acknowledgements**

**ARTICLE      7 - SURVIVAL OF REPRESENTATIONS,**

**WARRANTIES      AND COVENANTS**

**7.1**
**Survival      of Representations, Warranties and Covenants of the      Corporation**

**7.2**
**Survival      of Representations, Warranties and Covenants of the      Subscriber**

**ARTICLE      8 - COMMISSION**

**8.1      **
**Commission      to Agent**

**"Compensation      Options") **

----

**ARTICLE      9 - COLLECTION OF PERSONAL INFORMATION**

**9.1**
**Collection      of Personal Information**

**ARTICLE      10 - MISCELLANEOUS**

**10.1**
**Further      Assurances**

**10.2**
**Notices**

|   | (a) | Any                notice, direction or other instrument required or permitted to be                given to                any party hereto shall be in writing and shall be sufficiently given                if                delivered personally, or transmitted by facsimile tested prior to                transmission to such party, as                follows: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in                the case of the Corporation, to: |
|--------|-----|----------------------------------------------------|

----

|   | (b) | Any                such notice, direction or other instrument, if delivered personally,                shall                be deemed to have been given and received on the day on which it                was                delivered, provided that if such day is not a Business Day then the                notice, direction or other instrument shall be deemed to have been                given                and received on the first Business Day next following such day and                if                transmitted by fax, shall be deemed to have been given and received                on the                day of its transmission, provided that if such day is not a Business                Day                or if it is transmitted or received after the end of normal business                hours                then the notice, direction or other instrument shall be deemed to                have                been given and received on the first Business Day next following                the day                of such transmission. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Any                party hereto may change its address for service from time to time                by                notice given to each of the other parties hereto in accordance with                the                foregoing provisions. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**10.3**
**Time      of the Essence**

**10.4**
**Costs      and Expenses**

**10.5**
**Applicable      Law**

**10.6**
**Entire      Agreement**

**10.7**
**Counterparts**

**10.8**
**Assignment**

----

**10.9**
**Enurement**

**[PAGE      INTENTIONALLY LEFT BLANK]**

----

**10.10**
**Acceptance**

|   | **POLYMET                MINING                CORP.**Per:                ________________________________Authorized                Signing Officer |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      "A"**

**CERTIFICATE**

**ONTARIO      RESIDENT EXEMPTION FORM**

**The      Subscriber (on its own behalf and, if applicable, on behalf of each beneficial      purchaser on whose behalf the Subscriber is acting) represents, warrants and      covenants to the Corporation and the Agent and acknowledges that the Corporation      and the Agent, and their counsel, are relying thereon that: [Initial or place      a      checkmark in the box to the left of each applicable item; choose only one of      item (a) or (b) below and choose only one sub item in (a) or      (b)]:**

| o      | (a) | the                Subscriber is resident in Ontario, has completed the attached Ontario                ResidentAccredited                Investor Certificate and:                                                                                                     |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | o   | (i)                                                                                                                                                                                                                                                                     | if                purchasing the securities as principal, the Subscriber is an "accredited                investor" (as such term is defined in Rule 45-501 of the Ontario                Securities Commission **("Rule                45-501")),**is                purchasing the securities as principal for its own account and not                for the                benefit of any other person, it is purchasing for investment only                and not                with a view to resale or distribution and no other person, corporation,                fine or other organization has a beneficial interest in the said                securities being purchased; or |
|   | o   | (ii)                                                                                                                                                                                                                                                                    | if                purchasing the securities as agent for a principal disclosed on the                cover                page of this Subscription Agreement, the Subscriber is an agent or                trustee                of such disclosed principal and such disclosed principal for whom                the                Subscriber is acting is an "accredited investor", is purchasing the                securities as principal for its own account and not for the benefit                of any                other person, and is purchasing for investment only and not with                a view to                resale or distribution and no other person, corporation, fine or                other                organization has a beneficial interest in the said securities being                purchased; OR |
|   | (b) | the                Subscriber is resident in Ontario and is purchasing the securities                for a                principal or principals which is or are undisclosed or identified                by                account number only and the Subscriber is: |
|   | o   | (i)                                                                                                                                                                                                                                                                     | a                portfolio adviser (as such tern is defined in Rule 45-501) and is                purchasing the securities for one or more managed accounts (as defined                in                Rule 45-501); or |
|   | o   | (ii)                                                                                                                                                                                                                                                                    | a                trust corporation registered under the *Loan                and Trust Corporations Act*(Ontario)                or under the *Trust                and Loan Companies Act*(Canada)                or under comparable legislation in any jurisdiction and is purchasing                the                securities for an account that is fully managed by such trust                corporation. |

----

**ONTARIO      RESIDENT ACCREDITED INVESTOR CERTIFICATE**

**The      Subscriber hereby represents, warrants and certifies to the Corporation and      the      Agent **
**that      the Subscriber (or its disclosed principal) is an "accredited investor" as      defined in Rule 45-501 by virtue of being: [check appropriate      boxes]**

**Accredited      Investors**

| o | (a)  | a                bank listed in Schedule I or II of the *Bank                Act*(Canada),                or an authorized foreign bank listed in Schedule III of the *Bank                Act*(Canada);                                                                                                                                                                                                                                                             |
|---|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o | (b)  | the                Business Development Bank incorporated under the *Business                Development Bank*Act                (Canada);                                                                                                                                                                                                                                                                                                                           |
| o | (c)  | a                loan corporation or trust corporation registered under the *Loan                and Trust Corporations Act*(Ontario)                or under the *Trust                and Loan Corporations Act*(Canada),                or under comparable legislation in any other                jurisdiction;                                                                                                                                                 |
| o | (d)  | a                co-operative credit society, credit union central, federation of                caisses                populaires, credit union or league, or regional caisse populaire,                or an                association under the *Cooperative                Credit Associations Act*(Canada),                in each case, located in Canada;                                                                                                    |
| o | (e)  | a                company licensed to do business as an insurance company in any                jurisdiction of Canada;                                                                                                                                                                                                                                                                                                                                               |
| o | (f)  | a                subsidiary entity of any company referred to in paragraph (a), (b),                (c),                (d) or (e), where the company owns all of the voting shares of the                subsidiary entity;                                                                                                                                                                                                                                         |
| o | (g)  | a                person or company registered under the *Securities                Act*(Ontario)                or securities legislation in another jurisdiction of Canada as an                adviser                or dealer, other than a limited market dealer;                                                                                                                                                                                               |
| o | (h)  | the                government of Canada or of any jurisdiction, or any crown corporation,                instrumentality or agency of a Canadian federal, provincial or territorial                government;                                                                                                                                                                                                                                                       |
| o | (i)  | any                Canadian municipality or any Canadian provincial or territorial capital                city;                                                                                                                                                                                                                                                                                                                                                      |
| o | (j)  | any                national, federal, state, provincial, territorial or municipal government                of or in any foreign jurisdiction, or any instrumentality or agency                thereof;                                                                                                                                                                                                                                                              |
| o | (k)  | a                pension fund that is regulated by either the Office of the Superintendent                of Financial Institutions (Canada) or a provincial pension commission                or                similar regulatory authority;                                                                                                                                                                                                                       |
| o | (l)  | a                registered charity under the *Income                Tax Act*(Canada);                                                                                                                                                                                                                                                                                                                                                                               |
| o | (m)  | an                individual who beneficially owns, or who together with a spouse                beneficially own, financial assets having an aggregate realizable                value                that, before taxes but net of any related liabilities, exceeds                $1,000,000;                                                                                                                                                                     |
| o | (n)  | an                individual whose net income before taxes exceeded $200,000 in each                of the                two most recent years or whose net income before taxes combined with                that                of a spouse exceeded $300,000 in each of those years and who, in                either                case, has a reasonable expectation of exceeding the same net income                level                in the current year; |

----

| o | (o)  | an                individual who has been granted registration under the *Securities                Act*(Ontario)                or securities legislation in another jurisdiction of Canada as a                representative of a person or company referred to in paragraph (g),                whether or not the individual's registration is still in                effect;                                                          |
|---|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o | (p)  | a                promoter                of the Corporation or an affiliated entity of a promoter of the                Corporation;                                                                                                                                                                                                                                                                                                         |
| o | (q)  | a                spouse, parent, brother, sister, grandparent or child of an officer,                director or promoter of the Corporation;                                                                                                                                                                                                                                                                                                |
| o | (r)  | a                person or company that, in relation to the Corporation, is an affiliated                entity or a person or company referred to in clause (c) of the definition                of distribution in subsection 1(1) of the *Securities                Act*(Ontario);                                                                                                                                                        |
| o | (s)  | a                company, limited liability company, limited partnership, limited                liability                partnership, trust or estate, other than a mutual fund or non-redeemable                investment                fund, that had net assets of at least $5,000,000 as reflected in                its                most                recently prepared financial statements;                                   |
| o | (t)  | a                person or company that is recognized by the Ontario Securities Commission                as                an                accredited investor, pursuant to a discretionary order of the Ontario                Securities Commission;                                                                                                                                                                                    |
| o | (u)  | a                mutual fund or non-redeemable investment fund that, in Ontario,                distributes its                securities only to persons or companies that are accredited                investors;                                                                                                                                                                                                                         |
| o | (v)  | a                mutual fund or non-redeemable investment fund that, in Ontario,                distributes its                securities under a prospectus for which a receipt has been granted                by the                Director of the Ontario Securities Commission or, if it has ceased                distribution of its securities, previously distributed its securities                in                this manner; |
| o | (w)  | a                fully managed account if it is acquiring a security that is not a                security                of a mutual fund or non-redeemable investment fund;                                                                                                                                                                                                                                                                |
| o | (x)  | an                account that is fully managed by a trust corporation registered under                the *Loan**and                Trust Corporations Act*(Ontario)                or under the *Trust                and Loan Companies Act*(Canada),                or under comparable legislation in any other                jurisdiction;                                                                                       |
| o | (y)  | an                entity organized outside of Canada that is analogous to any of the                entities referred to in paragraphs (a) through (g) and paragraph                (k) in                form and function; or                                                                                                                                                                                                              |
| o | (z)  | a                person or company in respect of which all of the owners of interests,                direct or indirect, legal or beneficial, are persons or companies                that are                accredited investors.                                                                                                                                                                                                         |

**For      the purposes hereof, the following terms shall have the following      meanings:**

**"company"      **

**"control      person" **

----

**"director"      **

**"entity"      **

**"financial      **

**"individual"      **

**"fully      managed account" **

**"mutual      fund" **

**"non-redeemable      investment fund" **

|   | (a) | whose                primary purpose is to invest money provided by its                securityholders; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (b) | that                does not invest for the purpose of exercising effective control,                seeking                to exercise effective                control, or being actively involved in the management of the issuers                in                which it                invests, other than other mutual funds or non-redeemable investment                funds;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is                not a mutual fund. |
|--------|-----|--------------------------------------|

**"officer"**

**"person"      **

----

**"portfolio      adviser" **
*Securities      Act *

**"promoter"      **

**"related      liabilities" **

**"spouse",      **

| (a) | a                person or company is considered to be an affiliated entity of another                person or company if one is a subsidiary entity of the other, or                if both                are subsidiary entities of the same person or company, or if each                of them                is controlled by the same person or                company. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a                person or company is considered to be controlled by a person or company                if |
|-----|------------------------------------------------------------------------------------------------------------|

|   | (i) | in                the case of a person or company, |
|--------|-----|----------------------------------------------------|

|   | (A) | voting                securities of the first mentioned person or company carrying more                than 50                percent of the votes for the election of directors are held, otherwise                than by way of security only, by or for the benefit of the other                person or                company, and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | the                votes carried by the securities are entitled, if exercised, to elect                a                majority of the directors of the first-mentioned person or                company; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                the case of a partnership that does not have directors, other than                a                limited partnership, the second-mentioned person or company holds                more                than 50 percent of the interests in the partnership;                or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in                the case of a limited partnership, the general partner is the                second-mentioned person or company;                and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | a                person or company is considered to be a subsidiary entity of another                person or company if |
|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (i) | it                is controlled by, |
|--------|-----|-------------------------------------|

|   | (A) | that                other, or |
|--------|-----|-------------------------------|

|   | (B) | that                other and one or more persons or companies each of which is controlled                by                that other, or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | two                or more persons or companies, each of which is controlled by that                other;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

| (d) | it                is a subsidiary entity of a person or company that is the other's                subsidiary entity. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

----

**If      any such representations shall not be true and accurate prior to the Closing      Date, the Subscriber shall give immediate notice to the Corporation and      Agent.**

**EXECUTED      **

| **If                a corporation, partnership or other entity:** |   | **If                an individual:**       |
|-------------------------------------------------------------------|--------|--------------------------------------------|
|                                                              |   |                                       |
|                                                              |   |                                       |
| *Print                Name of Subscriber*                         |   | *Print                Name*                |
|                                                              |   |                                       |
|                                                              |   |                                       |
| *Signature                of Authorized Signatory*                |   | *Signature*                                |
|                                                              |   |                                       |
|                                                              |   |                                       |
| *Name                and Position of Authorized Signatory*        |   | *Jurisdiction                of Residence* |
|                                                              |   |                                       |
|                                                              |   |                                       |
| *Jurisdiction                of Residence*                        |   | *Print                Name of Witness*     |
|                                                              |   |                                       |
|                                                              |   |                                       |
|                                                              |   | *Signature                of Witness*      |
|                                                              |   |                                       |

----

**SCHEDULE      "B"**

**ACCREDITED      INVESTOR CERTIFICATE UNDER MULTILATERAL INSTRUMENT 45-103**

**the      Subscriber hereby represents, warrants and certifies to the Corporation and      the      Agent that the Subscriber (and, if applicable, each beneficial purchaser for      whom it is acting) is an "accredited investor" as defined in Section 1.1 of      Multilateral Instrument 45-103 (Capital Raising Exemptions), by virtue of      being:**

**[Check      appropriate item]**

| o | (a)  | a                Canadian financial institution, or an authorized foreign bank listed                in                Schedule III of *the                Bank Act*(Canada);                                                                                                                                                                                                                                                                                     |
|---|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o | (b)  | the                Business Development Bank of Canada incorporated under the *Business                Development Bank of Canada Act*(Canada);                                                                                                                                                                                                                                                                                                                   |
| o | (c)  | an                association under the *Cooperative                Credit Associations Act*(Canada)                located in Canada or a central cooperative credit society for which                an                order has been made under subsection 473(1) of that                Act;                                                                                                                                                                  |
| o | (d)  | a                subsidiary of any person or company referred to in paragraphs (a)                to (c),                if the person or company owns all of the voting securities of the                subsidiary, except the voting securities required by law to be owned                by                directors of that subsidiary;                                                                                                                     |
| o | (e)  | a                person or company registered under the securities legislation of                a                jurisdiction of Canada, as an adviser or dealer, other than a limited                market dealer registered under the *Securities                Act*(Ontario)                or the *Securities                Act*(Newfoundland                and Labrador);                                                                               |
| o | (f)  | an                individual registered or formerly registered under the securities                legislation of a jurisdiction of Canada, as a representative of a                person                or company referred to in paragraph (e);                                                                                                                                                                                                                |
| o | (g)  | the                government of Canada or a jurisdiction of Canada, or any crown                corporation, agency or wholly owned entity of the government of Canada                or                a jurisdiction of Canada;                                                                                                                                                                                                                                |
| o | (h)  | a                municipality, public board or commission in Canada;                                                                                                                                                                                                                                                                                                                                                                                              |
| o | (i)  | any                national, federal, state, provincial, territorial or municipal government                of or in any foreign jurisdiction, or any agency of that                government;                                                                                                                                                                                                                                                                   |
| o | (j)  | a                pension fund that is regulated by either the Office of the Superintendent                of Financial Institutions (Canada) or a pension commission or similar                regulatory authority of a jurisdiction of Canada;                                                                                                                                                                                                                  |
| o | (k)  | an                individual who, either alone or with a spouse, beneficially owns,                directly                or indirectly, financial assets having an aggregate realizable value                that                before taxes, but net of any related liabilities, exceeds                $1,000,000;                                                                                                                                           |
| o | (l)  | an                individual whose net income before taxes exceeded $200,000 in each                of the                two most recent years or whose net income before taxes combined with                that                of a spouse exceeded $300,000 in each of the two most recent years                and                who, in either case, reasonably expects to exceed that net income                level in                the current year; |

----

| o | (m)  | a                person or company, other than a mutual fund or non-redeemable investment                fund, that, either alone or with a spouse, has net assets of at least                $5,000,000, and unless the person or company is an individual, that                amount                is shown on its most recently prepared financial                statements;                                                                                                                                                                               |
|---|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o | (n)  | a                mutual fund or non-redeemable investment fund that, in the local                jurisdiction, distributes its securities only to persons or companies                that                are accredited investors;                                                                                                                                                                                                                                                                                                                              |
| o | (o)  | a                mutual fund or non-redeemable investment fund that, in the local                jurisdiction, is distributing or has distributed its securities under                one                or more prospectuses for which the regulator has issued                receipts;                                                                                                                                                                                                                                                                        |
| o | (p)  | a                trust company or trust corporation registered or authorized to carry                on                business under the *Trust**and                Loan Companies**Act*(Canada)                or under comparable legislation in a jurisdiction of Canada or a                foreign                jurisdiction, trading as a trustee or agent on behalf of a fully                managed                account;                                                                                                                          |
| o | (q)  | a                person or company trading as agent on behalf of a fully managed account                if                that person or company is registered or authorized to carry on business                under the securities legislation of a jurisdiction of Canada or a                foreign                jurisdiction as a portfolio manager or under an equivalent category                of                adviser or is exempt from registration as a portfolio manager or                the                equivalent category or adviser; |
| o | (r)  | a                registered charity under the *Income                Tax**Act*(Canada)                that, in regard to the trade, has obtained advice from an eligibility                adviser or other advisor registered to provide advice on the security                being traded;                                                                                                                                                                                                                                                                    |
| o | (s)  | an                entity organized in a foreign jurisdiction that is analogous to any                of the                entities referred to in paragraphs (a) through (e) and paragraph                (j) in                form and function; or                                                                                                                                                                                                                                                                                                           |
| o | (t)  | a                person or company in respect of which all of the owners of interests,                direct or indirect, legal or beneficial, except the voting securities                required by law to be owned by directors, are persons or companies                that                are accredited investors.                                                                                                                                                                                                                                       |

**"financial      **

**related      liabilities**

----

**If      any such representations shall not be true and accurate prior to the Closing      Date, the Subscriber shall give immediate notice to the Corporation and the      Agent.**

**EXECUTED      **

| If                a corporation, partnership or other entity:  |   | If                an individual:           |
|----------------------------------------------------------------|--------|--------------------------------------------|
|                                                           |   |                                            |
| Print                Name of Subscriber                   |   | Print                Name                  |
|                                                           |   |                                       |
| Signature                of Authorized Signatory          |   | Signature                                  |
|                                                           |   |                                       |
| Name                and Position of Authorized Signatory  |   | Jurisdiction                of Residence   |
|                                                           |   |                                       |
| Jurisdiction                of Residence                       |   | Print                Name of Witness  |
|                                                           |   |                                       |
|                                                           |   | Signature                of Witness        |

----

**SCHEDULE      "C" **
**CERTIFICATE**

**ADDITIONAL      REPRESENTATIONS, WARRANTIES AND COVENANTS**

**FOR      NON-CANADIAN SUBSCRIBERS**

**(OTHER      THAN U.S. SUBSCRIBERS)**

|  | (a) | the                Subscriber is, and (if applicable) any other purchaser for whom it                is                acting hereunder, is: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a                purchaser that is recognized by the securities regulatory authority                in the                jurisdiction in which it is, and (if applicable) any other purchaser                for                whom it is acting hereunder is resident or otherwise subject to the                securities laws of such jurisdiction, as an exempt purchaser and                is                purchasing the Units as principal for its, or (if applicable) each                such                other pm-chaser's, own account, and not for the benefit of any other                person, for investment only and not with a view to resale or distribution;                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a                purchaser which is purchasing Units pursuant to an exemption from                any                prospectus or securities registration requirements (particulars of                which                are enclosed herewith) available to the Corporation, the Agent, the                Subscriber and any such other purchaser under applicable securities                laws                of their jurisdiction of residence or to which the Subscriber and                any such                other purchaser are otherwise subject to, and the Subscriber and                any such                other purchaser shall deliver to the Corporation and the Agent such                further particulars of the exemption and their qualification thereunder                as                the Corporation or the Agent may reasonably                request; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                purchase of Units by the Subscriber, and (if applicable) each such                other                purchaser, does not contravene any of the applicable securities laws                in                such jurisdiction and does not trigger: (i) any obligation of the                Corporation to prepare and file a prospectus, an offering memorandum                or                similar document, or (ii) any obligation of the Corporation to make                any                filings with or seek any approvals of any kind from any regulatory                body in                such jurisdiction or any other ongoing reporting requirements with                respect                to such purchase or otherwise; or (iii) any registration or other                obligation on the part of the Corporation or the                Agent; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the                Subscriber is knowledgeable of, and has been independently advised                as to,                the securities laws of such jurisdiction as applicable to this Agreement;                and |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | the                Subscriber, and (if applicable) any other purchaser for whom it is                acting                hereunder will not sell or otherwise dispose of any Units or any                Common                Shares, Warrants and Warrant Shares underlying the Units (the **"Underlying**Securities"),                except in accordance with applicable Canadian securities laws and                in                accordance with the rules and regulations of the TSXV, and if the                Subscriber, or (if applicable) such beneficial purchaser sell or                otherwise                dispose of any Units or Underlying Securities to a person other than                a                resident of Canada, the Subscriber, and (if applicable) such beneficial                purchaser, will obtain from such purchaser representations, warranties                and                covenants in the same form as provided in this Schedule "C" and shall                comply with such other requirements as the Corporation may reasonably                require. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | _______________________________________Name                of SubscriberBy:                ____________________________________Signature_______________________________________Title |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      "D"**

**FORM      4C**

**CORPORATE      PLACEE REGISTRATION FORM**

| 1. | Placee                Information: |
|----|------------------------------------|

|  | (a) | Name:                _________________________________________________________________________________ |
|--|-----|--------------------------------------------------------------------------------------------------------|

|  | (b) | Complete                Address:                _______________________________________________________________________ |
|--|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Jurisdiction                of Incorporation or Creation:                _______________________________________________________ |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------|

| 2. | (a) | Is                the Placee purchasing securities as a portfolio manager (Yes/No)?                __________________________________ |
|----|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Is                the Placee carrying on business as a portfolio manager outside of                Canada                (Yes/No)?_______________________________________________________________________________________ |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | If                the answer to 2(b) above was "Yes", the undersigned certifies                that: |
|----|------------------------------------------------------------------------------------------------------|

|   | (a) | It                is purchasing securities of an Issuer on behalf of managed accounts                for                which it is making the investment decision to purchase the securities                and                has full discretion to purchase or sell securities for such accounts                without requiring the client's express consent to a                transaction; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | it                carries on the business of managing the investment portfolios of                clients                through discretionary authority granted by those clients (a "portfolio                manager" business) in __________________ [jurisdiction], and it is                permitted by law to carry on a portfolio manager business in that                jurisdiction; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | it                was not created solely or primarily for the purpose of purchasing                securities of the Issuer; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | the                total asset value of the investment portfolios it manages on behalf                of                clients is not less than $20,000,000;                and |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | it                has no reasonable grounds to believe, that any of the directors,                senior                officers and other insiders of the Issuer, and the persons that carry                on                investor relations activities for the Issuer has a beneficial interest                in                any of the managed accounts for which it is                purchasing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | If                the answer to 2(a). above was "No", please provide the names and                addresses                of control persons of the Placee: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Name** | **City** | **Province** **or****State** | **Country** |
|----------|----------|-----------------------------------|-------------|
|     |     |                              |        |
|     |     |                              |        |
|     |     |                              |        |
|     |     |                              |        |

*Securities      Act *
*Securities      Act *

**Acknowledgement      - Personal Information**

| (a) | the                disclosure of Personal Information by the undersigned to the Exchange                (as                defined in Appendix 6B) pursuant to this Form;                and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the                collection, use and disclosure of Personal Information by the Exchange                for                the purposes described in Appendix 6B or as otherwise identified                by the                Exchange, fiorn time to time. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | _____________________________________________(Name                of Purchaser - please print)_____________________________________________(Authorized                Signatory)_____________________________________________(Official                Capacity - please print)_____________________________________________(please                print name of individual whose signature appears                above) |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SCHEDULE      "E"**

**TERM      SHEET**

**POLYMET      MINING      CORP.**

**PRIVATE      PLACEMENT OF      UNITS**

| **Issuer:**                                  | Polymet                Mining Corp. (the **"Corporation")**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Offering:**                                | Up                to $7,750,000 in the aggregate for the Units (as hereinafter defined)                by                way of private placement exemptions from prospectus requirements,                subject                to the receipt of necessary regulatory approvals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Issue:**                                   | Units                of the Corporation (the **"Units")**are                offered at a price of $0.90                per                Unit. Each Unit consists of one common share in the capital of the                Corporation (a **"Common                Share")**and                one-half of one Common Share purchase warrant (each whole warrant,                a                **"Warrant").**Each                (whole) Warrant entitles the holder to subscribe for one Common Share                for                a period of thirty (30) months following the Closing Date (as hereinafter                defined), at a price of $1.25; provided that, if at any time the                closing                trading price of the Common Shares for any 20 consecutive trading                days                exceeds $2.50, the Corporation may accelerate the expiry date of                the                Warrants by giving notice to the holders thereof and in such case                the                Warrants will expire on the 30th                calendar day after the date on which such notice is deemed to have                been                received by such holders. |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Minimum                Subscription:**     | A                $5,000 minimum subscription will apply to subscribers resident in                the                Canadian Offering Jurisdictions (as hereinafter                defined).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| **Expenses:**                                | The                Corporation will be responsible for certain reasonable expenses of                the                Offering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Type                of Transaction:**      | Best                efforts, private placement, subject to a formal agency                agreement. No                offering memorandum or other offering document will be furnished                to                subscribers of Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Qualifying                Jurisdictions:** | The                Offering will be marketed to qualified investors in the provinces                of                Ontario, Alberta and British Columbia and in such other provinces                as                agreed by the Corporation and the Agent (the **"Canadian                Offering Jurisdictions").**The                Offering may also be marketed to investors in the United States pursuant                to available exemptions from U.S. federal and state prospectus                requirements and to investors in offshore                jurisdictions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Commission:**                              | 7%                of the aggregate gross proceeds, payable in cash upon the closing                of the                Offering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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| **Compensation                Options:** | The                Corporation shall issue to the Agent on the closing of the Offering,                options **(the                "Compensation Options")**equal                in number to 10% of the number of Units sold pursuant to the Offering.                Each Compensation Option will entitle the Agent to purchase one Common                Share at $1.25 for a period of twenty-four (24) months following                the                Closing Date, provided that if at any time the closing trading price                of                the Common Shares for any 20 consecutive trading days exceeds $2.50,                the                Corporation may accelerate the expiry date of the Compensation Option                by                giving notice to the Agent and in such case the Compensation Option                will                expire on the 30t'1                calendar                day after the date on which such notice is deemed to be received                by the                Agent. |
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|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **Closing                Date:**         | August                29, 2005 or such other date as may be agreed upon by the Corporation                and                the Agent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **Agent:**                               | Research                Capital Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **Use                of Proceeds:**      | For                working capital purposes and to advance the technical program with                respect                to NorthMet property and the Cliffs Erie facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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