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GREAT BASIN GOLD LTD.(the “Company”)

2005 SHARE OPTION PLAN

Dated for Reference July 5, 2005

ARTICLE 1PURPOSE AND INTERPRETATION

Purpose

|1.1 |  | The purpose of this Plan will be to advance the interests
        of the Company by encouraging equity participation in the Company through
        the acquisition of Common Shares of the Company. It is the intention of
        the Company that this Plan will at all times be in compliance with the
        rules and policies of The Toronto Stock Exchange (or “TSX”)
        (the “TSX Policies”) and any inconsistencies between this
        Plan and the TSX Policies whether due to inadvertence or changes in TSX
        Policies will be resolved in favour of the latter.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Definitions

|1.2 |                                                                                                                                                          | In this Plan
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------
|   
|    | Affiliatemeans a company that
        is a parent or subsidiary of the Company, or that is controlled by the
        same entity as the Company;        
|   
|    | Associatehas the meaning assigned
        by the Securities Act;                                                                                        
|   
|    | Boardmeans the board of directors
        of the Company or any committee thereof duly empowered or authorized to
        grant options under this Plan;
|   
|    | Change of Controlincludes situations
        where after giving effect to the contemplated transaction and as a result
        of such transaction:     

| |                                                                                                                                                                                               | (i)  | any one Person holds a sufficient number of voting
        shares of the Company or resulting company to affect materially the control
        of the Company or resulting company, or,                                                                                                        
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                               |      |                                                                                                                                                                                                                                                                                                
| |                                                                                                                                                                                               | (ii) | any combination of Persons, acting in concert by
        virtue of an agreement, arrangement, commitment or understanding, hold
        in total a sufficient number of voting shares of the Company or its successor
        to affect materially the control of the Company or its successor,
| |                                                                                                                                                                                               |      |                                                                                                                                                                                                                                                                                                
| | where such Person or combination
        of Persons did not previously hold a sufficient number of voting shares
        to affect materially control of the Company or its successor. In the

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| | absence of evidence to the contrary, any Person or
        combination of Persons acting in concert by virtue of an agreement, arrangement,
        commitment or understanding, holding more than 20% of the voting shares
        of the Company or its successor is deemed to materially affect the control
        of the Company or its successor;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                        
| | Common Shares means common shares without
        par value in the capital of the Company providing such class is listed
        on the TSX;                                                                                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                                                                        
| | Company means the Corporation named at the
        top hereof and includes, unless the context otherwise requires, all of
        its subsidiaries or affiliates and successors according to law;                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                        
| | Consultant means a Person or Consultant Company,
        other than an Employee, Officer or Director that:                                                                                                                                                                                                                                             

| |  | (i)   | provides on an ongoing bona fide basis, consulting,
        technical, managerial or like services to the Company or an Affiliate
        of the Company, other than services provided in relation to a Distribution;
| |  | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |       |                                                                                                                                                                                                                      
| |  | (ii)  | provides the services under a written contract between
        the Company or an Affiliate and the Person or the Consultant Company;                                                                                 
| |  |       |                                                                                                                                                                                                                      
| |  | (iii) | in the reasonable opinion of the Company, spends
        or will spend a significant amount of time and attention on the business
        and affairs of the Company or an Affiliate of the Company; and             
| |  |       |                                                                                                                                                                                                                      
| |  | (iv)  | has a relationship with the Company or an Affiliate
        that enables the Person or Consultant Company to be knowledgeable about
        the business and affairs of the Company;                                 

| | Consultant Company means for a Person consultant,
        a company or partnership of which the Person is an employee, shareholder
        or partner;                                                                                                                                  
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                         
| | Directors means the directors of the Company
        as may be elected from time to time;                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                         
| | Disinterested Shareholder Approval means approval
        by a majority of the votes cast by all the Company’s shareholders
        at a duly constituted shareholders’ meeting, excluding votes attached
        to shares beneficially owned by Service Providers or their Associates;
| |                                                                                                                                                                                                                                                                                         
| | Distribution has the meaning assigned by the
        Securities Act, and generally refers to a distribution of securities by
        the Company from treasury;                                                                                                                         
| |                                                                                                                                                                                                                                                                                         
| | Effective Date for an Option means the date
        of grant thereof by the Board;                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                         
| | Employee means:                                                                                                                                                                                                                                                                         

| |  | (a) | a Person who is considered an employee under the
        Income Tax Act (i.e. for whom income tax, employment insurance and CPP
        deductions must be made at source);
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | (b) | a Person who works full-time for the Company or its
        subsidiary providing services normally provided by an employee and who
        is subject to the same control and direction by the Company over the details
        and methods of work as an employee of the Company, but for whom income
        tax deductions are not made at source; or                                                                       
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | (c) | a Person who works for the Company or its subsidiary
        on a continuing and regular basis for a minimum amount of time per week
        providing services normally provided by an employee and who is subject
        to the same control and direction by the Company over the details and
        methods of work as an employee of the Company, but for whom income tax
        deductions need not be made at source;

| | Exercise Price means the amount payable per
        Common Share on the exercise of an Option, as determined in accordance
        with the terms hereof;       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                 
| | Expiry Date means the day on which an Option
        lapses as specified in the Option Commitment therefor or in accordance
        with the terms of this Plan;
| |                                                                                                                                                                 
| | Insider means                                                                                                                                                   

| |  | (i)  | an insider as defined in the TSX Policies or as defined
        in securities legislation applicable to the Company;
| |  | ---- | --------------------------------------------------------------------------------------------------------------------
| |  |      |                                                                                                                     
| |  | (ii) | an Associate of any person who is an Insider by virtue
        of §(i) above;                                       

| | Investor Relations Activities means generally
        any activities or communications that can reasonably be seen to be intended
        to or be primarily intended to promote the merits or awareness of or the
        purchase or sale of securities of the Company;                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Listed Shares means the number of issued and
        outstanding shares of the Company that have been accepted for listing
        on the TSX, but excluding dilutive securities not yet converted into Listed
        Shares;                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Management Company Employee means a Person
        employed by another Person or a corporation providing management services
        to the Company which are required for the ongoing successful operation
        of the business enterprise of the Company, but excluding a corporation
        or Person engaged primarily in Investor Relations Activities;
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Market Price means the 5-day volume weighted
        average price as calculated by the rules of the TSX company manual;                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Officer means a duly appointed senior officer
        of the Company;                                                                                                                                                                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Option means the right to purchase Common
        Shares granted hereunder to a Service Provider;                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                 
| | Option Commitment means the notice of grant
        of an Option delivered by the Company hereunder to a Service Provider
        and substantially in the form of Schedule A hereto;                                                                                                                                                                           

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| | Optioned Shares means Common Shares that may
        be issued in the future to a Service Provider upon the exercise of an
        Option;                                                                                                                                                                                     
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                
| | Optionee means the recipient of an Option
        hereunder;                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                
| | Outstanding Shares means at the relevant time,
        the number of outstanding Common Shares of the Company from time to time;                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                
| | Participant means a Service Provider that
        becomes an Optionee;                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                
| | Person means a company or an individual;                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                
| | Plan means this Share Option Plan, the terms
        of which are set out herein or as may be amended;                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                
| | Plan Shares means the total number of Common
        Shares which may be reserved for issuance as Optioned Shares under the
        Plan as provided in §2.2;                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                
| | Regulatory Approval means the approval of
        the TSX and any other securities regulatory authority that may have lawful
        jurisdiction over the Plan and any Options issued hereunder;                                                                                                                              
| |                                                                                                                                                                                                                                                                                                                                
| | Securities Act means the Securities Act,
        R.S.B.C. 1996, c. 418, as amended from time to time;                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                
| | Service Provider means a Person who is a bona
        fide Director, Officer, Employee, Management Company Employee or Consultant,
        and also includes a company, of which 100% of the share capital is beneficially
        owned by one or more Person Service Providers;                                              
| |                                                                                                                                                                                                                                                                                                                                
| | Share Compensation Arrangement means any Option
        under this Plan but also includes any other stock option, stock option
        plan, employee stock purchase plan or any other compensation or incentive
        mechanism involving the issuance or potential issuance of Common Shares
        to a Service Provider;
| |                                                                                                                                                                                                                                                                                                                                
| | Shareholder Approval means approval by a majority
        of the votes cast by eligible shareholders at a duly constituted shareholders’
        meeting;                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                
| | TSXmeans The Toronto Stock Exchange and any
        successor thereto; and                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                
| | TSX Policies means the rules and policies
        of the TSX as amended from time to time.                                                                                                                                                                                                                                     

ARTICLE 2
  SHARE OPTION PLAN

Establishment of Share Option Plan

|2.1 |  | There is hereby established a Share Option Plan to
        recognize contributions made by Service Providers and to create an incentive
        for their continuing assistance to the Company and its Affiliates.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Maximum Plan Shares

|2.2 |  | The maximum aggregate number of Plan Shares that
        may be reserved for issuance under the Plan at any point in time is 12.5%
        of the Outstanding Shares at the time the Plan Shares are reserved for
        issuance as a result of the grant of an Option, less any Common Shares
        reserved for issuance under share options granted under Share Compensation
        Arrangements other than this Plan, unless this Plan is amended pursuant
        to the requirements of the TSX Policies.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Eligibility

|2.3 |  | Options to purchase Common Shares may be granted
        hereunder to Service Providers from time to time by the Board. Service
        Providers that are corporate entities will be required to undertake in
        writing not to effect or permit any transfer of ownership or option of
        any of its shares, nor issue more of its shares (so as to indirectly transfer
        the benefits of an Option), as long as such Option remains outstanding,
        unless the written permission of the TSX and the Company is obtained.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Options Granted Under the Plan

|2.4 |  | All Options granted under the Plan will be evidenced
        by an Option Commitment in the form attached as Schedule A, showing the
        number of Optioned Shares, the term of the Option, a reference to vesting
        terms, if any, and the Exercise Price.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  |                                                                                                                                                                                                                                                                      
|2.5 |  | Subject to specific variations approved by the Board,
        all terms and conditions set out herein will be deemed to be incorporated
        into and form part of an Option Commitment made hereunder.                                                           

Options Not Exercised

|2.6 |  | In the event an Option granted under the Plan expires
        unexercised or is terminated by reason of dismissal of the Optionee for
        cause or is otherwise lawfully cancelled prior to exercise of the Option,
        the Optioned Shares that were issuable thereunder will be returned to
        the Plan and will be eligible for re-issue. For greater certainty options
        which are exercised thereupon increase the number available to the Plan
        by the relevant percentage of outstanding shares as provided hereunder.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Powers of the Board

|2.7 |  | The Board will be responsible for the general administration
        of the Plan and the proper execution of its provisions, the interpretation
        of the Plan and the determination of all questions arising hereunder.
        Without limiting the generality of the foregoing, the Board has the power
        to
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | allot Common Shares for issuance in connection with
        the exercise of Options;
| | --- | ------------------------------------------------------------------------------------
|
| | (b) | grant Options hereunder;                                                            

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- 6 -

| | (c) | subject to Regulatory Approval, amend, suspend, terminate
        or discontinue the Plan, or revoke or alter any action taken in connection
        therewith, except that no general amendment or suspension of the Plan
        will, without the written consent of all Optionees, alter or impair any
        Option previously granted under the Plan unless as a result of a change
        in TSX Policies;               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (d) | delegate all or such portion of its powers hereunder
        as it may determine to one or more committees of the Board, either indefinitely
        or for such period of time as it may specify, and thereafter each such
        committee may exercise the powers and discharge the duties of the Board
        in respect of the Plan so delegated to the same extent as the Board is
        hereby authorized so to do; and
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (e) | in its sole discretion amend this Plan (except for
        previously granted and outstanding Options) to reduce the benefits that
        may be granted to Service Providers (before a particular Option is granted)
        subject to the other terms hereof.                                                                                                                                                                 

Terms or Amendments Requiring Disinterested Shareholder
  Approval

|2.8 |  | None of the following actions will become effective
        without first obtaining Disinterested Shareholder Approval:
|--- |  | -----------------------------------------------------------------------------------------------------------------------

| | (a) | Common Shares being issuable to Insiders under this
        Plan, when combined with all of the Company’s other Share Compensation
        Arrangements, exceeding 10% of the Outstanding Shares;                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                     
| | (b) | Common Shares being issuable to Insiders under this
        Plan, when combined with all of the Company’s other Share Compensation
        Arrangements, exceeding 10% of the Outstanding Shares in any 12 month
        period; and
| |     |                                                                                                                                                                                                                                     
| | (c) | a reduction in the exercise price of an Option granted
        hereunder to an Insider or an extension of the term of an Option granted
        hereunder benefiting an Insider.                                                    

ARTICLE 3TERMS AND CONDITIONS OF OPTIONS

Exercise Price

|3.1 |  | The Exercise Price of an Option will be set by the
        Board at the time such Option is allocated under the Plan, and cannot
        be less than the Market Price.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Term of Option

|3.2 |  | An Option can be exercisable for a maximum of 10
        years from the Effective Date.
|--- |  | ---------------------------------------------------------------------------------------

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Vesting of Options

|3.3 |     | Vesting of Options is at the discretion of the Board,
        and will generally be subject to:                                                                                                                                                                                                                                                                                                                                      
|--- | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (a) | the Service Provider remaining employed by or continuing
        to provide services to the Company or any of its subsidiaries and Affiliates
        as well as, at the discretion of the Board, achieving certain milestones
        which may be defined by the Board from time to time or receiving a satisfactory
        performance review by the Company or its subsidiary or affiliate during
        the vesting period; or
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (b) | remaining as a Director of the Company or any of
        its subsidiaries or Affiliates during the vesting period.                                                                                                                                                                                                                                                                                                                   

Optionee Ceasing to be Director, Employee or Service Provider

|3.4 |     | No Option may be exercised after the Service Provider
        has left the employ/office or has been advised his services are no longer
        required or his service contract has expired, except as follows:                                                                                                                                                                                                                
|--- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a) | in the case of the death of an Optionee, any vested
        Option held by him at the date of death will become exercisable by the
        Optionee’s lawful personal representatives, heirs or executors until
        the earlier of one year after the date of death of such Optionee and the
        date of expiration of the term otherwise applicable to such Option;                                                    
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b) | subject to the other provisions of this §3.4,
        vested Options shall expire 90 days after the date the Optionee ceases
        to be employed by, provide services to, or be a director or officer of,
        the Company, and all unvested Options shall immediately terminate without
        right to exercise same;                                                                                                  
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (c) | in the case of an Optionee being dismissed from employment
        or service for cause, such Optionee’s Options, whether or not vested
        at the date of dismissal will immediately terminate without right to exercise
        same;                                                                                                                                                                                     
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (d) | in the event of a Change of Control occurring, Options
        granted to Directors and Officers which are subject to vesting provisions
        shall be deemed to have immediately vested upon the occurrence of the
        Change of Control; and                                                                                                                                                                           
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (e) | in the event of a Director not being nominated for
        re election as a Director of the Company, although consenting to act and
        being under no legal incapacity which would prevent the Director from
        being a member of the Board, Options granted which are subject to a vesting
        provision shall be deemed to have vested on the date of Meeting upon which
        the Director is not re elected.

Non Assignable

|3.5 |  | Subject to §3.4(a), all Options will be exercisable
        only by the Optionee to whom they are granted and will not be assignable
        or transferable.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

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Adjustment of the Number of Optioned Shares

|3.6 |     | The number of Common Shares subject to an Option
        will be subject to adjustment in the events and in the manner following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (a) | in the event of a subdivision of Common Shares as
        constituted on the date hereof, at any time while an Option is in effect,
        into a greater number of Common Shares, the Company will thereafter deliver
        at the time of purchase of Optioned Shares hereunder, in addition to the
        number of Optioned Shares in respect of which the right to purchase is
        then being exercised, such additional number of Common Shares as result
        from the subdivision without an Optionee making any additional payment
        or giving any other consideration therefor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (b) | in the event of a consolidation of the Common Shares
        as constituted on the date hereof, at any time while an Option is in effect,
        into a lesser number of Common Shares, the Company will thereafter deliver
        and an Optionee will accept, at the time of purchase of Optioned Shares
        hereunder, in lieu of the number of Optioned Shares in respect of which
        the right to purchase is then being exercised, the lesser number of Common
        Shares as result from the consolidation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (c) | in the event of any change of the Common Shares as
        constituted on the date hereof, at any time while an Option is in effect,
        the Company will thereafter deliver at the time of purchase of Optioned
        Shares hereunder the number of shares of the appropriate class resulting
        from the said change as an Optionee would have been entitled to receive
        in respect of the number of Common Shares so purchased had the right to
        purchase been exercised before such change;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (d) | in the event of a capital reorganization, reclassification
        or change of outstanding equity shares (other than a change in the par
        value thereof) of the Company, a consolidation, merger or amalgamation
        of the Company with or into any other company or a sale of the property
        of the Company as or substantially as an entirety at any time while an
        Option is in effect, an Optionee will thereafter have the right to purchase
        and receive, in lieu of the Optioned Shares immediately theretofore purchasable
        and receivable upon the exercise of the Option, the kind and amount of
        shares and other securities and property receivable upon such capital
        reorganization, reclassification, change, consolidation, merger, amalgamation
        or sale which the holder of a number of Common Shares equal to the number
        of Optioned Shares immediately theretofore purchasable and receivable
        upon the exercise of the Option would have received as a result thereof.
        The subdivision or consolidation of Common Shares at any time outstanding
        (whether with or without par value) will not be deemed to be a capital
        reorganization or a reclassification of the capital of the Company for
        the purposes of this §3.6(d);
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (e) | an adjustment will take effect at the time of the
        event giving rise to the adjustment, and the adjustments provided for
        in this Section are cumulative;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (f) | the Company will not be required to issue fractional
        shares in satisfaction of its obligations hereunder. Any fractional interest
        in a Common Share that would, except for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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- 9 -

| |     | the provisions of this §3.6(f), be deliverable
        upon the exercise of an Option will be cancelled and not be deliverable
        by the Company; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (g) | if any questions arise at any time with respect to
        the Exercise Price or number of Optioned Shares deliverable upon exercise
        of an Option in any of the events set out in this §3.6, such questions
        will be conclusively determined by the Company’s auditors, or, if
        they decline to so act, any other firm of Chartered Accountants, in Vancouver,
        British Columbia (or in the city of the Company’s principal executive
        office) that the Company may designate and who will have access to all
        appropriate records and such determination will be binding upon the Company
        and all Optionees.

ARTICLE 4COMMITMENT AND EXERCISE PROCEDURES

Option Commitment

|4.1 |  | Upon grant of an Option hereunder, an authorized
        officer of the Company will deliver to the Optionee an Option Commitment
        detailing the terms of such Options and upon such delivery the Optionee
        will be subject to the Plan and have the right to purchase the Optioned
        Shares at the Exercise Price set out therein subject to the terms and
        conditions hereof.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Manner of Exercise

|4.2 |     | An Optionee who wishes to exercise his Option may
        do so by delivering                                                     
|--- | --- | ----------------------------------------------------------------------------------------------------------------------------------
|    |     |                                                                                                                                   
|    | (a) | a written notice to the Company specifying the number
        of Optioned Shares being acquired pursuant to the Option; and       
|    |     |                                                                                                                                   
|    | (b) | cash or a certified cheque payable to the Company
        for the aggregate Exercise Price for the Optioned Shares being acquired.

Delivery of Certificate and Hold Periods

|4.3 |  | As soon as practicable after receipt of the notice
        of exercise described in §4.2 and payment in full for the Optioned
        Shares being acquired, the Company will direct its transfer agent to issue
        a certificate to the Optionee for the appropriate number of Optioned Shares.
        Such certificate issued will bear a legend stipulating any resale restrictions
        required under applicable securities laws.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 5
  GENERAL

Employment and Services

|5.1 |  | Nothing contained in the Plan will confer upon or
        imply in favour of any Optionee any right with respect to office, employment
        or provision of services with the Company, or interfere in any way with
        the right of the Company to lawfully terminate the
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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- 10 -

| |  | Optionee’s office, employment or service at
        any time pursuant to the arrangements pertaining to same. Participation
        in the Plan by an Optionee will be voluntary.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

No Representation or Warranty

|5.2 |  | The Company makes no representation or warranty as
        to the future market value of Common Shares issued in accordance with
        the provisions of the Plan or to the effect of the Income Tax Act
        (Canada) or any other taxing statute governing the Options or the Common
        shares issuable thereunder or the tax consequences to a Service Provider.
        Compliance with applicable securities laws as to the disclosure and resale
        obligations of each Participant is the responsibility of such Participant
        and not the Company.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interpretation

|5.3 |  | The Plan will be governed and construed in accordance
        with the laws of the Province of British Columbia.
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Continuation of the Plan

|5.4 |  | This Plan will become effective from and after July
        5, 2005 and will remain effective provided that the Plan, or any amended
        version thereof, receives Shareholder Approval on or before each third
        annual general meeting of the Company.
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Amendment of the Plan

|5.5 |     | Subject to the requirements of the TSX Policies and
        the prior receipt of any necessary Regulatory Approval, the Board may
        in its absolute discretion, amend or modify the Plan or any Option granted
        as follows:
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|    |     |                                                                                                                                                                                                                                         
|    | (a) | it may make amendments which are of a “housekeeping”
        or clerical nature only;                                                                                                                                                   
|    |     |                                                                                                                                                                                                                                         
|    | (b) | it may change the vesting provisions of an Option
        granted hereunder;                                                                                                                                                            
|    |     |                                                                                                                                                                                                                                         
|    | (c) | it may change the termination provision of an Option
        granted hereunder which does not entail an extension beyond the original
        Expiry Date of such Option;                                                               
|    |     |                                                                                                                                                                                                                                         
|    | (d) | it may add a cashless exercise feature payable in
        cash or Common Shares which provides for a full deduction of the number
        of underlying Common Shares from the Shares reserved hereunder; and                           
|    |     |                                                                                                                                                                                                                                         
|    | (e) | it may make such amendments as reduce, and do not
        increase, the benefits of this Plan to Service Providers.                                                                                                                     

Termination

|5.6 |  | The Board reserves the right in its absolute discretion
        to terminate the Plan with respect to all Plan Shares in respect of Options
        which have not yet been granted hereunder.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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SCHEDULE A

SHARE OPTION PLAN

OPTION COMMITMENT

Notice is hereby given that, effective this ________ day of
  ________________ , __________ (the “Effective Date”) GREAT BASIN
  GOLD LTD. (the “Company”) has granted to _________________________________________
  (the “Service Provider”) , an Option to acquire ______________ Common
  Shares (“Optioned Shares”) up to 5:00 p.m. Vancouver Time on the
  __________ day of ____________________, __________ (the “Expiry Date”)
  at a Exercise Price of Cdn$ ____________ per share.

Optioned Shares may be acquired as follows:

____________ In accordance with the vesting provisions set out in 3.3
  of the Plan

or

____________ As follows:

The grant of the Option evidenced hereby is made subject to
  the terms and conditions of the Company’s Share Option Plan, the terms
  and conditions of which are hereby incorporated herein.

To exercise your Option, deliver a written notice specifying
  the number of Optioned Shares you wish to acquire, together with cash or a certified
  cheque payable to the Company for the aggregate Exercise Price, to the Company.
  A certificate for the Optioned Shares so acquired will be issued by the transfer
  agent as soon as practicable thereafter.

GREAT BASIN GOLD LTD.



__________________________________
  Authorized Signatory

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