---

SECOND AMENDMENTTO STOCK OPTION PURCHASE
AGREEMENT

This Second Amendment to Stock Option Purchase Agreement
(Second Amendment) is made as of August 10, 2001, by and between Madge W.
Wolff, Stephen G. Wegmann, Michael L. Wegmann, John G. Hodgson, Virginia L.
Sigl, individually and as successor in interest to the Trust of Grace W. Meehl,
Patrick L. Wolff, George P. Wolff, John G. Meehl, as successor in interest to
the Trust of Grace W. Meehl and Mary Ann Godfrey, as successor in interest to
the Trust of Grace W. Meehl (collectively referred to herein as Optionor and
also now collectively referred to herein as the Wegmann Shareholders ) and
Golden Queen Mining Company, Inc., a California corporation (Golden
Queen).

RECITALS

|A. | On or about April 1, 1995, the Wegmann Shareholders and
      Golden Queen entered into that certain Stock Option Purchase Agreement
      (the Agreement), pursuant to which the Wegmann Shareholders granted to
      Golden Queen the exclusive right to purchase all of the issued and
      outstanding stock of Karman Wegmann Corporation (Company). Terms not
      otherwise defined herein shall have the meaning ascribed in the
      Agreement.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|B. | On or about June 6, 1999, Golden Queen and the Wegmann
      Shareholders entered into that certain First Amendment to Stock Option
      Purchase Agreement. (First Amendment).                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|C. | Golden Queen desires to again amend the Agreement, the
      Wegmann Shareholders have agreed to again amend the Agreement, and the
      parties hereby do amend the Agreement a hereinafter
  provided.                                                                                                                                                                                                                                                       

OPERATIVE PROVISIONS

Now therefore, in consideration of the foregoing recitals,
which are hereby incorporated herein by reference, and of the terms and
conditions herein contained the parties hereto agree as follows:

|A. | All terms and obligations of Golden Queen to make
      payments of money to the Wegmann shareholders as set forth in the
      Agreement, as amended by the First Amendment, are suspended, conditioned
      upon and in accordance with the following terms:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                
|   | 1.                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                
|   | 2.                                                                                                                                                                                                                                                             

---

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                  | Shareholders the sum $25,000.00, without interest, for
      an additional period of four (4) succeeding years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 3.                                                                                                                                                                                                                                                                                                                                                                                                                               | Upon termination of this Second Amendment by either party
      or as of July 1, 2006, whichever occurs first, all sums of money owed by
      Golden Queen to the Wegmann Shareholders pursuant to the Agreement, as
      amended by the First Amendment, and this Second Amendment, shall become
      immediately due and payable to the Wegmann Shareholders, including without
      limitation, the sum of $750,000.00 if so then owing and not previously
      paid as required. Irrespective of anything set forth in the Agreement, the
      First Amendment or this Second Amendment, GoLden Queen shall have no right
      to purchase the stock of the Company or become a Shareholder of the
      Company until it has first paid to the Wegmann Shareholders the sum of
      $750,000.00, plus all other sums which may be then owing if not previously
      paid.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|B. | After July 1, 2001, any party to this Second Amendment
      may terminate this Second Amendment by giving written notice to the other
      party no earlier than sixty (60) days or later than thirty (30) days prior
      to the respective July 1, set forth in paragraph A(2), either by United
      States mail, return receipt requested, Federal Express, or any overnight
      courier service at following address:

Golden Queen Mining Company, Inc.
c/o Mr. Ed Thompson 55 University Avenue, Suite 1210 Toronto, Ontario,
Canada M5J 2H7.

Wegmann Shareholders: c/o V. Sigl
714 Valita Street Vaneice, CA 90291.

|   | All sums of money owed by Golden Queen to the Wegmann
      Shareholders pursuant to the Agreement, as amended by the First Amendment
      and Second Amendment, as of the termination of this Second Amendment by
      either party, or by its own terms on July 1, 2006, shall survive
      termination of this Second Amendment, and shall become immediately due and
      payable by Golden Queen to the Wegmann Shareholders.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|C. | Golden Queen agrees to reimburse the Wegmann Shareholders
      for all professional fees and costs in reviewing, revising and approving
      the agreement, First Amendment and the Second Amendment, and to pay
      one-half (1/2) of all escrow costs during the term of this
    agreement.                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|D. | The terms and provisions of this Second Amendment shall
      not effect a waiver of any terms or conditions of the Agreement or first
      Amendment.                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|E. | The Agreement, as amended by the First Amendment and the
      Second Amendment, contains the entire agreement and understanding between
      the parties with respect to the subject matter thereof. There are no oral
      understandings, terms or conditions, and neither party has
  relied                                                                                                                                    

---

|   | upon any representations, express or implied not
      contained in the Agreement, the First Amendment or in the Second
      Amendment.                                                                                                                
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                         
|F. | The Agreement, the First Amendment, and this Second
      Amendment may not be changed orally, but only by agreement in writing and
      signed by the party against whom enforcement of any waiver, change,
      modification or discharge is sought.
|   |                                                                                                                                                                                                                                                         
|G. | Except as set forth in this Second Amendment, all of the
      provisions of the Agreement and First Amendment shall remain unchanged and
      in full force and effect.                                                                               
|   |                                                                                                                                                                                                                                                         
|H. | This Second Amendment may be executed in counterparts,
      each of which shall be deemed an original and together shall constitute
      one and the same agreement, with one (1) counterpart being delivered to
      each party hereto.             
|   |                                                                                                                                                                                                                                                         
|I. | This Second Amendment shall inure to the benefit of the
      Wegmann Shareholders, and shall be binding upon any successors in interest
      of Golden Queen whether by sale, purchase, assignment, merger, or any
      other means whatsoever.      

[Signatures Follow]

| |      | GOLDEN QUEEN               
| | ---- | -----------------------------
| |      | GOLDEN QUEEN MINING CO., INC.
| |      | a California Corporation     
| |      |                              
| | By:  | /s/
      H. Lutz Klingmann  
| |      |                              
| | Its: |                              

Wegmann Shareholders

/s/ Madge W. WolffMadge W. Wolff

/s/ Stephen G. WegmannStephen G. Wegmann

/s/ Michael L. WegmannMichael L. Wegmann

/s/ John G. HodgsonJohn G. Hodgson

/s/ Virginia L. SiglVirginia L. Sigl,
individually and as

---

successor in interest to the successor in interest to the Trust
of Grace W. Meehl

/s/ Patrick L. WolffPatrick L. Wolff

/s/ George P. WolffGeorge P. Wolff

/s/ John G. MeehlJohn G. Meehl, successor in
interest to the Trust of Grace W. Meehl

/s/ Mary Ann GodfreyMary Ann Godfrey,
successor in interest to the Trust of Grace W. Meehl

---