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Altair Ventures Incorporated (Altair) and Minera
Altair, S.A. de C.V. (Altair Sub) (together, the Altair
Companies) c/o 404-999 Canada Place, Vancouver, BC V6C 3E2

Effective February 1, 2010

Great Panther Silver Limited (Great Panther) Suite
2100, 1177 West Hastings Street Vancouver, British Columbia 
  V6E 2K3

-and-

Minera Mexicana El Rosario, S.A. de C.V. (Great Panther
Sub) Camino del Amanecer 409 
  Durango, Dgo. 34100

(together, the Great Panther Companies)

Dear Sirs/Mesdames:

Re:      Option Termination and
Shares-for-Debt Settlement Transaction

WHEREAS:

A.         the Altair
Companies and the Great Panther Companies wish to terminate the February 2, 2007
option agreement between Altair Sub, a wholly-owned subsidiary of Altair and
Great Panther Sub, a wholly-owned subsidiary of Great Panther, (the Option
Agreement) pursuant to which Altair Sub has an option to earn a 70%
interest in Great Panther Subs Mexican mining claims named La Chiripa, Iran,
Santo Niño and San Antonio located in the municipality of Guadalupe y Calvo,
Chihuahua, Mexico (the Property);

B.         
coincident with the termination of the Option Agreement, the Altair Companies
and the Great Panther Companies wish to settle all of the outstanding debts
owing from the Altair Companies to the Great Panther Companies (the
Indebtedness); and

C.          
the Indebtedness totals CAD $167,680.

In consideration of the covenants and agreements set out
herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Altair Companies and the Great Panther
Companies hereby agree as follows:

|1. | Shares for Debt.The Great Panther Companies
      hereby agree to accept 1,117,866 fully paid and non-assessable Common
      shares in the capital stock of Altair (the Shares) issued to and
      registered in the name of Great Panther Silver Limited at a deemed issue
      price of $0.15 per share as full payment and satisfaction of the
      Indebtedness and any and all any and all rights, claims, actions, causes
      of action, suits, judgments, debts, dues, accounts, bonds, covenants,
      contracts, claims, demands, damages, legal
costs,
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|   | interest, expenses or compensation of whatever kind,
      whether known or unknown, suspected or unsuspected, arising in law or in
      equity, which either or both of Great Panther and Great Panther Sub, or
      their respective, administrators, agents, successors and assigns, or any
      of them, has had, now has or may hereafter have arising out of or in any
      way resulting or arising from or connected with the Option Agreement and
      the Property (the Transaction).                                                                                                                                                            
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|2. | Hold Periods.The Great Panther Companies
      acknowledge and agree that the Shares will be subject to a hold period
      during which they may not be traded except pursuant to available
      exemptions from prospectus and registration requirements of the applicable
      securities laws.                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|3. | Termination of the Option Agreement.Upon the
      acceptance for filing of this Agreement by the TSXV Venture Exchange and
      the issuance of the Shares, the Transaction will be deemed to be effective
      and the Option Agreement will be deemed to be terminated and of no further
      force or effect, without any need for further notice to or action by any
      of the parties hereto, the Altair Companies will be deemed to have
      irrevocably relinquished any and all rights to or in the Property, and the
      Great Panther Companies will be entitled to retake, for all purposes, the
      exclusive possession of the Property.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|4. | TSX Approval.The Transaction and the termination
      of the Option Agreement are conditional upon the acceptance for filing of
      this Agreement with the TSX Venture Exchange.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|5. | Exchange Requirements.The Great Panther Companies
      will execute any and all documentation as may be required by the TSX
      Venture Exchange respecting the Transaction and the issuance of the
      Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|6. | Governing Law.This Agreement will be governed by
      the construed in accordance with the laws of the Province of British
      Columbia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

[NTD: Fayyaz, regarding governing law, the Option Agreement
is governed by Mexican law. Altair should check with its Mexican counsel as to
any actions that might be required under Mexican law in order to ensure that
this Agreement will be effective.]

|7. | Entire Agreement.This Agreement constitutes the
      entire agreement between the parties hereto and supersedes any and every
      prior agreement of understanding between the parties hereto, whether oral
      or written or partly oral and partly written.                                                                                             
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                
|8. | No Amendments.No modification of this Agreement
      will be valid unless in writing and signed by the Parties
hereto.                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                
|9. | Further Assurances.Each party will make, execute
      and do so cause to be make, executed or done all necessary agreements,
      deeds and acts which may be necessary to protect, secure or otherwise
      ensure compliance by them with the terms of this Agreement, including,
      without limitation, any such matters as are reasonably
  necessary

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|    | to cancel any public registrations of the Option
      Agreement on the public records relating to the Property.                                                                                                                                                                                                                                                                                                                                                                   
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|10. | Successors and Assigns.This Agreement will be
      binding upon and will enure to the benefit of the Altair Companies and
      Great Panther Companies and their respective successors and permitted
      assigns; provided that this Agreement will not be assigned, in whole or in
      part, by any of the Altair Companies and Great Panther Companies to any
      other person, firm or corporation, without the prior written consent of
      the other parties hereto.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|11. | No Waiver.No waiver of any breach of any term of
      this Agreement will be effective unless that waiver is in writing and
      signed by the party against whom that waiver is claimed. No waiver of any
      breach will be or be deemed to be a waiver of any other or subsequent
      breach.                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|12. | Severability.Each provision of this Agreement is
      declared to constitute a separate and distinct covenant and to be
      severable from all other such separate and distinct
  covenants.                                                                                                                                                                                                                                                                                    

If you agree that this letter sets out the terms and conditions
of our Agreement, and notwithstanding the date of execution and delivery, this
Agreement will be effective as between the Altair Companies and the Great
Panther Companies as of February 1, 2010, then please sign and return to me a
copy of this letter signed by authorized signatories of the Great Panther
Companies where indicated below.

Yours Truly,

|Altair Ventures Incorporated                             | Minera Altair, S.A. de C.V.                                   
|-------------------------------------------------------- | --------------------------------------------------------------
|                                                         |                                                               
|                                                         |                                                               
|                                                         |                                                               
|                                                         |                                                               
|Per: ___________________________________________________ | Per:
      ___________________________________________________
|Authorized Signatory                                     | Authorized Signatory                                          

Accepted and agreed to by the undersigned, to be effective as
between the Altair Companies and the Great Panther Companies as of February 1,
2010.

|Great Panther Silver Limited                             | Minera Mexicana El Rosario, S.A. de C.V.                      
|-------------------------------------------------------- | --------------------------------------------------------------
|                                                         |                                                               
|                                                         |                                                               
|                                                         |                                                               
|                                                         |                                                               
|Per: ___________________________________________________ | Per:
      ___________________________________________________
|Authorized Signatory                                     | Authorized Signatory                                          

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