----

| No.                       | Principal      Amount US      $1,100,000 |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|

| 1.1 | Definitions.  In      this Debenture, including the preamble, unless there is something in the      subject matter or context inconsistent therewith, the following      expressions shall have the following meanings  namely: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | "Business Day" means any      day other than a Saturday, Sunday, legal holiday or a day on which banking      institutions are closed in Toronto,Ontario; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (b) | "Common Shares" means the      common shares of the Corporation as such shares are constituted on the      date hereof; |
|--------------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (c) | "Corporation" means      Firstgold Corp., a Delaware corporation, and its successors and      assigns; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (d)   | "Conversion Notice" has      the meaning ascribed to that term in Section 4.1  hereof; |
|--------|-----------------|----------------------------------------------------------------------------------------|

|   | (e) | "Conversion Price" means the price      per Debenture Share at which the Principal Sum outstanding under this      Debenture shall from time to time be convertible into Common Shares      pursuant to a Holder Conversion, being US$0.80 per Debenture Share,      subject to adjustment; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | "Debenture Shares" means      the Common Shares issuable upon the due conversion of      Debentures; |
|--------|-----|------------------------------------------------------------------------------------------------------|

----

|   | (g) | "this Debenture", the      "Debenture",      "herein", "hereby", "hereof", "hereto", "hereunder" and similar      expressions mean or refer to this convertible, subordinated, unsecured      debenture and any debenture, deed or instrument supplemental or ancillary      thereto and any schedules hereto or thereto and not to any particular      article, section, subsection, clause, subclause or other portion hereof;      the "Debentures"      means this Debenture together with all others, being part of a series of      like debentures except as to principal amount  thereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | "Event of      Default" means any of the events specified in Section 5.1      hereof; |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (i) | "Holder" or "Debentureholder" has the      meaning ascribed hereto in Section 2.1hereof; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (j) | "Maturity Date" means      January ●,      2010; |
|--------|-----|--------------------------------------------------------|

|   | (k) | "person" means an      individual, corporation, partnership, unincorporated syndicate,      unincorporated organization, trust, trustee, executor, administrator, or      other legal representative, or any group or combination      thereof; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l)   | "Principal Sum" means $US      1.1 million; |
|--------|-----------------|---------------------------------------------|

|   | (m) | "Redemption Amount" has      the meaning ascribed to that term in Section 2.2  hereof; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (n) | "Redemption Date" has the      meaning ascribed to that term in Section 2.2  hereof. |
|--------|-----|--------------------------------------------------------------------------------------|

| 1.2 | Gender.  Whenever      used in this Debenture, words importing the singular number only shall      include the plural, and vice versa, and words importing the masculine      gender shall include the femininegender. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Numbering      of Articles, etc.  Unless otherwise stated, a reference      herein to a numbered or lettered article, section, subsection, clause,      subclause or schedule refers to the article, section, subsection, clause,      subclause or schedule bearing that number or letter in this      Debenture. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Day      not a Business Day.  In the event that any day on or      before which any action is required to be taken hereunder is not a      Business Day, then such action shall be required to be taken on or before      the requisite time on the next succeeding day that is a Business      Day.  If the payment of any amount is deferred for any period,      then such period shall be included for purposes of the computation of any      interest payable hereunder. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Computation      of Time Period.  Except to the extent otherwise provided      herein, in the computation of a period of time from a specified date to a      later specified date, the word "from" means "from and including" and the      words "to" and "until" each mean "to but  excluding". |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.1 | Indebtedness.  The      Corporation, for value received, and in consideration of the premises      hereby acknowledges itself indebted and promises and covenants to pay to      _____________________, the registered holder hereof for the time being      (the "Holder"): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Early      Redemption.  After six (6) months from the Closing Date,      this Debenture may be prepaid in whole prior to the Maturity Date at the      Corporation’s option by providing the Holder with at least five (5) days      prior written notice, for an amount equal to the sum of the following: (i)      the Principal Sum then outstanding, and (ii) accrued and unpaid interest      to the date fixed for early redemption (the "Redemption Date"); and      (iii) a premium of 10% of the Principal Sum (the “Redemption Premium”)      (the sum of (i), (ii) and (iii) (being the "Redemption      Amount"). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1 | Calculation      and Payment of Interest, etc.  The Corporation shall pay      interest on the Principal Sum at the rate of 10.00% per annum, calculated      and payable monthly in arrears (less any tax required by law to be      deducted or withheld).  Contemporaneous with the delivery of      this Debenture to the Holder duly executed by the Corporation (the “Closing Date”), the      Corporation shall prepay an amount equal to the aggregate interest payable      (without compounding interest) for a period of six (6)      months.  Subsequent interest payments shall commence on the      first business day of the eighth (8th)      month following the calendar month in which the Closing Date occurs and      shall continue on the first business day of each subsequent month while      any Principal Amount remains outstanding  hereunder |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Overdue      Interest.  All interest payable hereunder on becoming      overdue shall be forthwith treated, as to the payment of interest thereon,      as principal and thereafter shall bear interest calculated at the same      rate and in the same manner as if it were principal.  Overdue      interest shall be payable forthwith without demand by the      Holder.  Any interest amount added to the Principal Sum by      operation of this section may only be converted into Common Shares upon      receipt of all required regulatory approvals which approvals may or may      not be granted and if not granted, such additional interest amount will      only be payable in cash. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | No      Merger In Judgement.  The covenant of the Corporation to      pay interest at the rate provided herein shall not merge in any judgement      in respect of any obligation of the Corporation hereunder and such      judgement shall bear interest in the manner set out in this Article III      and be payable on the same days when interest (whether hereunder or      otherwise) is payable hereunder. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.1 | Conversion.  The      Holder may, at its election, upon surrender (either in person, by mail      (postage prepaid) or other means of delivery) of this Debenture along with      a completed notice of conversion (the "Conversion Notice") in      the form attached hereto as Schedule "A"      at the principal office of the Corporation in the Cameron Park, California      at any time prior to the close of business on the earlier of (a) the      Redemption Date; and (b) January ●, 2010, convert      that portion of the Principal Sum so surrendered into Debenture Shares      (without adjustment for interest accrued but unpaid hereon or for      dividends on Common Shares issuable upon conversion) ("Holder      Conversion").  Debentures may be converted on or prior to      the Maturity Date or the Redemption Date, as the case may be, at a      conversion price equal to the Conversion Price per Debenture Share;      provided, however, that the Holder shall not be entitled to a Holder      Conversion if, upon issuance of the Debenture Shares, the Holder would      own, either directly or beneficially, in excess of 4.99% of the      outstanding Common Shares of the Corporation.  The delivery of      the Conversion Notice duly executed by the Holder and the surrender of the      Debenture shall be deemed to constitute a contract between the Holder and      the Corporation whereby (i) the Holder subscribes for the number of      Debenture Shares which he shall be entitled to receive upon such Holder      Conversion, (ii) the Holder releases the Corporation from all      liability thereon or from all liability with respect to the portion of the      Principal Sum thereof to be converted, as the case may be, and      (iii) the Corporation agrees that the surrender of the Debenture for      Holder Conversion constitutes full payment of the subscription price for      the Debenture Shares issuable on such Holder Conversion and that the      Debenture Shares will be issued as fully paid and non-assessable Common      Shares in the capital of theCorporation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.2 | Adjustment. |
|-----|-------------|

|   | (a) | If      and whenever the Corporation shall (i) subdivide or redivide the      outstanding Common Shares into a greater number of Common Shares;      (ii) reduce, combine or consolidate the outstanding Common Shares      into a smaller number of Common Shares; (iii) issue any Common Shares      to the holders of all or substantially all of the outstanding Common      Shares by way of a stock dividend, the number of Common Shares which may      be acquired pursuant to this Article 4 on and at any time after the      effective date of such subdivision, redivision, reduction, combination or      consolidation or on the record date for such issue of Common Shares by way      of a stock dividend, as the case may be, shall be increased, in the case      of the events referred to in (i) and (iii) above, in the proportion which      the number of Common Shares outstanding before such subdivision,      redivision or dividend bears to the number of Common Shares outstanding      after such subdivision, redivision or dividend, or shall be decreased, in      the case of the events referred to in (ii) above, in the proportion which      the number of Common Shares outstanding before such reduction,      combination, or consolidation bears to the number of Common Shares      outstanding after such reduction, combination or consolidation and in each      case the price at which the Holder Conversion shall occur will be adjusted      to reflect the change in the number of Common Shares that become issuable      under this Article 4.  Any such issue of Common Shares by way of      a stock dividend shall be deemed to have been made on the record date      fixed for such stock dividend for the purpose of calculating the number of      outstanding Common Shares under this Section 4.2(a) or Section      4.2(c). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (b) | In      the case of any reclassification of, or other change in, the outstanding      Common Shares other than a subdivision, redivision, reduction, combination      or consolidation, subject to the approval of the Toronto Stock Exchange      (if applicable), the Holder shall be entitled to receive upon conversion      pursuant to Article IV, and shall accept in lieu of the number of Common      Shares to which it was theretofore entitled upon such conversion, the kind      and amount of shares and other securities or property which the Holder      would have been entitled to receive as a result of such reclassification      if, on the effective date thereof, it had been the registered holder of      the number of Common Shares to which it was theretofore entitled upon      conversion.  If necessary, appropriate adjustments shall be made      in the application of the provisions set forth in this Article IV      with respect to the rights and interests thereafter of the Holder to the      end that the provisions set forth in this Article IV shall thereafter      correspondingly be made applicable as nearly as may be possible in      relation to any shares or other securities or property thereafter      deliverable upon the conversion of any Debenture.  Any such      adjustments shall be made by and set forth in a supplemental certificate      approved by the directors of the Corporation and shall for all purposes be      conclusively deemed to be an appropriate adjustment, after reasonable      consultation with the Holder. |
|--------------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | If      and whenever the Corporation shall issue or distribute to all or      substantially all the holders of Common Shares (i) shares of the      Corporation of any class; (ii) rights, options or warrants (that      shall not have expired unexercised, unconverted or unexchanged at the time      a Holder converts any Debenture, in whole or in part);      (iii) evidences of indebtedness; or (iv) any other assets or      securities and if such issuance or distribution does not result in an      adjustment as provided for in Section 4.2(a) or Section 4.2(b), subject to      the approval of the Toronto Stock Exchange (if applicable), the price at      which the Principal Amount may be converted into Common Shares pursuant to      Article IV shall be adjusted effective immediately before the record date      at which the holders of Common Shares are determined for purposes of any      such issuance or distribution as aforesaid in such manner as the directors      of the Corporation determine to be appropriate on a basis consistent with      this Section 4.3. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (d) | If,      at any time, the Holder exercises its conversion rights before the record      date and before the occurrence of an event, for which this Section 4.2      requires that an adjustment shall become effective immediately before the      record date for such event, the Corporation may defer issuing to the      Holder the additional Common Shares issuable upon such conversion, by      reason of the adjustment required by such event, until the occurrence of      such event.  In the event of such an adjustment, the Corporation      shall deliver to the Holder an appropriate instrument evidencing the      Holder's right to receive such additional Common Shares upon the      occurrence of the event requiring such adjustment and the right to receive      any distributions made on such additional Common Shares declared in favour      of the holders of Common Shares on and before the date of conversion or      such later date as such holder would, but for the provisions of this      Section 4.2, have become the holder of record of such additional Common      Shares. |
|--------------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If      a dispute shall at any time arise with respect to adjustments of the      Conversion Price or the number of Common Shares issuable upon the      conversion of this Debenture, such disputes shall be conclusively      determined by the auditors of the Corporation or if they are unable or      unwilling to act, by such other firm of independent chartered accountants      accredited by the United States Public Company Accounting Oversight Board      as may be selected by the directors and any such determination shall be      conclusive evidence of the correctness of any adjustment made pursuant to      this Section 4.2 hereof and shall be binding upon the Corporation and the      Holder. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | No      Fractional Common Shares.  Notwithstanding anything      herein contained, the Corporation shall in no case be required to issue      fractional Common Shares or to pay any cash adjustment in lieu of any      fractional Common Share upon the conversion of the      Debenture.  Any fractions will be rounded to the nearest whole      number with fractions of one-half or greater being rounded to the next      higher whole number and fractions of less than one-half being rounded to      the next lower whole number. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Reservation      of Common Shares.  The Corporation shall at all times      while the Debenture remains convertible into Debenture Shares as herein      provided, reserve and keep available out of its authorized but unissued      share capital, for the purpose of effecting the conversion of the      Debenture, such number of Common Shares as shall from time to time be      sufficient to effect the conversion of the Debenture.  In the      event that the Corporation does not have available such number of Common      Shares required to satisfy full conversion of this Debenture into      Debenture Shares, the Corporation agrees to hold a special meeting of      shareholders in order to increases the number of Common Shares authorized      and reserved in order to meet its obligations  hereunder. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1 | Acceleration      of Maturity on Default.  Upon the happening of any one or      more of the following events (herein sometimes called "Events of Default")      namely: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if      the Corporation does not pay on the Maturity Date any principal, interest      or other amount payable by it under the Debenture at the place and in the      currency in which such amount is expressed to be  payable; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      the Corporation makes a general assignment for the benefit of creditors;      or any proceeding is instituted by it seeking relief as debtor, or to      adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up,      reorganization, arrangement, adjustment or composition of it or its debts      or for an order for similar relief under any law relating to bankruptcy,      insolvency, reorganization or relief of debtors (including under any      statutes relating to the incorporation of companies) or seeking      appointment of a receiver or trustee, or other similar official for it or      for any substantial part of its properties or assets; or any corporate or      partnership action is taken to authorize any of the actions referred to in      this Section 5.1(b); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if      any proceedings are instituted against the Corporation seeking to      adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up,      reorganization, arrangement, adjustment or composition of it or its debts      or an order for similar relief under any law relating to bankruptcy,      insolvency, reorganization or relief of debtors (including under any      statutes relating to the incorporation of companies) or seeking      appointment of a receiver, trustee or other similar official for it or for      any substantial part of its properties or assets and such proceeding is      not dismissed within sixty (60) days of its service on the      Corporation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | (d) | if      the Corporation takes any corporate proceedings for its dissolution,      liquidation or if the corporate existence of the Corporation shall be      terminated by expiration, forfeiture or otherwise, or if the Corporation      ceases or threatens to cease, to carry on all or a substantial part of its      business; |
|--------------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (e) | the      date the Holder intends to convert this Debenture into Debenture Shares in      accordance with the terms set out herein, the Corporation fails to have      available out of its authorized but unissued share capital, for the      purpose of effecting the conversion of this Debenture, such number of      Common Shares as shall from time to time be sufficient to effect the      conversion of this Debenture; and |
|--------------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | if      the Corporation is in material breach of the listing requirements of the      Toronto Stock Exchange |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

| 5.2 | Waiver      of Corporation's Rights.  To the full extent that it may      lawfully do so, the Corporation for itself and its successors and assigns      hereby waives and disclaims any benefit of, and shall not have or assert      any right under, any statute or rule of law pertaining to the marshaling      of assets, discussion, division or other matter whatever, to defeat,      reduce or affect the rights of the Holder under the terms of this      Debenture. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.1 | Security. Payment      of the Principal Sum and of any Interest is secured by a first lien on the      assets of the Corporation and its subsidiaries, subject to permitted      encumbrances (the “Secured Interest”). To      this effect, the security interest provided to and granted in favour of      the Holder hereunder shall be documented by the relevant instrument under      the Uniform Commercial Code and be filed with all necessary regulatory      authorities, and be registered in all necessary public registers, such      that a legal, valid and enforceable security interest on the Security      Interest be created exclusively in favour of the Holder. Such Secured      Interest shall remain in full force and effect for so long as any      obligation of the Corporation hereunder remains outstanding. Without      limiting the foregoing, the Secured Interest shall include a pledge and      assignment agreement as well as a general security agreement, both of      which must be in recordable form acceptable to Holder’s counsel, acting      reasonably. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | Waiver.  The      Holder may waive any breach of any of the provisions contained in this      Debenture or any default by the Corporation in the observance or      performance of any covenant, condition or obligation required to be      observed or performed by it under the terms of this      Debenture.  No waiver, consent, act or omission by the Holder      shall extend to or be taken in any manner whatsoever to affect any other      or subsequent breach or default or the rights resulting therefrom and no      waiver or consent by the Holder shall bind the Holder unless it is in      writing.  The inspection or approval by the Holder of any      document or matter or thing done by the Corporation shall not be deemed to      be a warranty or holding out of the adequacy, effectiveness, validity or      binding effect of such document, matter or thing or a waiver of the      Corporation's obligations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1 | Rights      of Set-Off.  The Corporation acknowledges and agrees that      the Principal Sum and the other obligations hereunder shall be paid,      satisfied and discharged to the Holder without regard to such dealings as      may from time to time occur as between any one or more of the Holder, the      Corporation and any other person and without regard to such equities or      rights of set-off or counterclaim which may from time to time exist      between any one or more of the Holder, the Corporation or any other      person, and that the Principal Sum and other obligations hereof shall be      paid without regard to any equities between the Corporation and the Holder      hereof or any set-off or cross-claims and the receipt of the Holder for      the payment of the Principal Sum will be a good discharge to the      Corporation in respect thereof. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | No      Merger.  Neither the taking of any judgement nor the      exercise of any rights hereunder shall operate to extinguish the      obligation of the Corporation to pay the monies under this Debenture and      shall not operate as a merger of any covenant in this Debenture, and the      acceptance of any payment shall not constitute or create a novation, and      the taking of a judgement or judgements under a covenant herein contained      shall not operate as a merger of those covenants and affect the Holder's      right to interest under thisDebenture. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.1 | Transfer      of Debenture.  This Debenture may be transferred only by      transfer in writing in the form attached hereto as Schedule      "B", and will only be effective as regards the Corporation when      delivered at the registered office of the Corporation in Cameron Park,      California accompanied by this Debenture together with such evidence of      identity or title as the Corporation may reasonably require and upon      payment of all applicable transfer taxes.  Thereupon, the      Corporation will record such transfer on its books and issue a new      debenture to the transferee in exchange for this  Debenture. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Registered      Holders.  The person in whose name this Debenture shall      be registered shall be deemed and regarded as the owner and holder hereof      for all purposes, and the payment to and/or receipt of any Holder for any      Principal Sum or interest hereby secured shall be a good discharge of the      Corporation for the same, and the Corporation shall not be bound to enter      in the register notice of any trust or to inquire into the title of any      Holder or to recognize any trust or equity affecting the title hereof save      as ordered by some court of competent jurisdiction or as required by      statute. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Time.  Time      shall be of the essence of thisDebenture. |
|------|----------------------------------------------------------------------|

| 10.2 | Governing      Law.  This Debenture shall be governed by, and construed      in accordance with, the laws of the Province of Ontario and the laws of      Canada applicable therein but the reference to such laws shall not, by      conflict of laws rules or otherwise, require the application of the law of      any jurisdiction other than the Province of Ontario.  The      Corporation hereby irrevocably attorns to the jurisdiction of the Courts      of the Province of Ontario except that US law shall apply to UCC      matters. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Severability.  If      any one or more of the provisions or parts thereof contained in this      Debenture should be or become invalid, illegal or unenforceable, the      remaining provisions or parts thereof contained herein shall be and shall      be conclusively deemed to be, severable therefrom and the validity,      legality or enforceability of such remaining provisions or parts thereof      shall not in any way be affected or impaired by the severance of the      provisions or parts thereofsevered. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Headings.  The      headings of the articles, sections, subsections and clauses of this      Debenture have been inserted for convenience and reference only and do not      define, limit, alter or enlarge the meaning of any provision of this      Debenture. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Binding      Effect.  This Debenture and all of its provisions shall      enure to the benefit of the Holder, its successors and assigns, and shall      be binding upon the Corporation and its successors and permitted      assigns.  The expression the "Holder" as used herein shall      include the Holder's assigns whether immediate or    derivative. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.6 | Notices.  Any      notice required or permitted to be given under any of this Debenture or      any tender or delivery of documents may be given by personal delivery or      by facsimile transmission to the parties at the following      addresses: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | to      the Holder at: |
|-----------------------------------------|------------------------|

| (b)            | to      the Corporation at: |
|-----------------------------------------|-----------------------------|

| 11.1  | Arranging      Fee.  Upon Closing, the Corporation shall pay to the      Holder or as the Holder may direct the amount of US$100,000, which amount      will be netted out of the Principal Sum advanced at Closing    . |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | FIRSTGOLD      CORP. |                            |
|--------|----------------------|---------------------------------|
|   |                 |                            |   |
|   | Per:                 | /s/ Stephen      Akerfeldt |   |
|   | Name:                | Stephen      Akerfeldt          |   |
|   | Title:               | Chief      Executive Officer    |   |
|   |                 |                            |   |

----

| If      subscriber is a corporation: |   |
|--------------------------------------|--------|
|                                 | By:    |   |
|                                 | Name:  |   |
|                                 | Title: |   |

| If      subscriber is an individual: |   |                         |
|--------------------------------------|--------|------------------------------|
|                                 |   |                         |
| Witness                              |   | Signature      of Subscriber |

----

| Name:                        |             |
|------------------------------|------------------|
| Address:                     |             |
|                         |             |
| Social      Insurance Number | Postal      Code |

----

|   | IF      TRANSFEROR IS A CORPORATION: |
|--------|--------------------------------------|
|   |                                 |
|   | By:                                  |   |
|   | Name:                                |   |
|   | Title:                               |   |

| If      transferor is an individual: |   |                         |
|--------------------------------------|--------|------------------------------|
|                                 |   |                         |
| Witness                              |   | Signature      of Transferor |