PRIVATE PLACEMENT
SUBSCRIPTION AGREEMENT

THIS AGREEMENT dated for reference this 13th day of March, 2002

BETWEEN

| | R.E. Gordon Davis 5555 Newton Wynd Vancouver, B.C. V6G 1H6
| | ----------------------------------------------------------

(the
Purchaser);

AND

| | CANPLATS RESOURCES CORPORATION,Suite 1180, 
         999 West Hastings Street, Vancouver, British Columbia, V6C 2W2
| | -------------------------------------------------------------------------------------------------------------------

(the Issuer).

Subject and pursuant to the terms set
out in Appendix III attached hereto, the Purchaser hereby irrevocably subscribes for,
and on Closing will purchase from the Issuer, the following securities at the following
price:

| | 75,000      Common Shares;
             $0.15        per Common Share for a total purchase price of $11,250.
| | ------------------------------------------------------------------------------------------------------------

NUMBER OF SECURITIES IN THE ISSUER
HELD EITHER DIRECTLY OR INDIRECTLY:

621,500
common shares ._____________________________________________________________

The Purchaser hereby directs the Issuer to issue, register and deliver the
certificates representing the Common Shares as follows:

|                                 | 
|-------------------------------- | 
|                                
|Registration Instructions:       | 
|__________________________       | 
|Name to appear on certificate    | 
|                                
|R.E. Gordon Davis                | 
|__________________________       | 
|Account reference, if applicable | 
|                                
|__________________________       | 
|Address                          | 
|5555 Newton Wynd                 | 
|Vancouver, B.C     V6G 1H6       | 
|__________________________       | 
|                                 | 
|                                

EXECUTED by the Purchaser this
5th day of April, 2002.

|                           | 
|-------------------------- | 
|                          
|WITNESS:                   | 
|                          
|"Linda J. Sue"             | 
|__________________________ | 
|Signature of Witness       | 
|__________________________ | 
|Name of Witness            | 
|__________________________ | 
|Address of Witness         | 
|__________________________ | 
|                           | 
|                           | 
|                           | 
|                           | 
|                          

ACCEPTED this 9th day of April, 2002. 
CANPLATS RESOURCES CORPORATION
Per:"R.A. Mitchell"
_______________________________
Authorized Signatory

---

APPENDIX 1 (A)

FORM 4D1

CORPORATE PLACEE
REGISTRATION FORM

Where subscribers to a private
placement are not individuals, the following information about the placee must be
provided. This Form will remain on file with the Exchange. The corporation, trust,
portfolio manager or other entity (the Placee) need only file it once, and it
will be referenced for all subsequent private placements in which it participates. If any
of the information provided in this Form changes, the Placee must notify the Exchange
prior to participating in further placements with Exchange listed companies.

1.    
          Name of Placee:

---

2.    
          Address of Placees Head Office:

---

3.    
          Jurisdiction of Incorporation or Creation:

---

|4. | If the Placee will be purchasing securities as principal, but not as a portfolio
manager, please check the box and include the names and addresses of persons
having a greater than 10% beneficial interest in the Placee: 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|5. | The undersigned acknowledges that it is bound by the provisions of applicable
          Securities Law, including provisions concerning the filing of insider reports
          and reports of acquisitions (See for example, sections 87 and 111 of the
          Securities Act (British Columbia) and sections 141 and 147 of the Securities Act
          (Alberta).
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | For Placees which are portfolio managers or trusts purchasing pursuant to an
exemption from the prospectus requirements prescribed by British Columbia
Securities Law and are required pursuant to the applicable exemption to be
purchasing as agent for accounts that are fully managed by it, please check the
box and complete the Additional Undertaking and Certification in Form 4D2.  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Dated at ______________________
  on _________________________________.

_________________________________________

(Name of Purchaser  please print)

_________________________________________

(Authorized Signature)

_________________________________________

(Official Capacity  please print)

_________________________________________

| | (please print name of individual whose signature appears above, if different from name of
purchaser printed above)
| | ------------------------------------------------------------------------------------------------------------------

THIS IS A PUBLIC
DOCUMENT

---

APPENDIX 1 (B)

FORM 4D2

Portfolio Manager:

Additional Undertaking
and Certification

If the undersigned is a portfolio
manager purchasing as agent for accounts that are fully managed by it, pursuant to an
exemption from the prospectus requirements prescribed by British Columbia Securities Law,
the undersigned acknowledges that it is bound by the provisions of the Securities Act
(British Columbia) (the Act), and undertakes to comply with all provisions of
the Act relating to ownership of, and trading in, securities including, without
limitation, the filing of insider reports and reports pursuant to Section 111 of the Act.
If any of the information provided in this Form changes, the portfolio manager undertakes
to notify the Exchange prior to participating in further private placements with Exchange
listed companies.

If the undersigned carries on
business as a portfolio manager in a jurisdiction outside of Canada, the undersigned
certifies that:

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

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

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

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

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

Dated at________________________on ____________________________.

_________________________________________

(Name of Purchaser  please print)

_________________________________________

(Authorized Signature)

_________________________________________

(Official Capacity  please print)

_________________________________________

| | (please print name of individual whose signature appears above, if different from name of
purchaser printed above)
| | ------------------------------------------------------------------------------------------------------------------

---

APPENDIX II A

This is the form required under
section 135 of the Securities Rules or, where required, under an order issued under
section 76 of the Securities Act.

BCF #45-903F1

(formerly, Form 20A(IP))

Securities Act

ACKNOWLEDGMENT OF
INDIVIDUAL PURCHASER

|1. | I have agreed to purchase from CANPLATS RESOURCES CORPORATION(the
Issuer) 75,000 common shares (the Securities) of the
Issuer.
|-- | ----------------------------------------------------------------------------------------------------------------------------------

|2. | I am purchasing the Securities as principal and, on closing of the agreement of
          purchase and sale, I will be the beneficial owner of the Securities.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | I [circle one]have/have not received an offering memorandum describing the
Issuer and the Securities.
|-- | -----------------------------------------------------------------------------------------------------

|4. | I acknowledge that:
|-- | -------------------

|(a) |  | no securities commission or similar regulatory authority has reviewed or passed
on the merits of the Securities, AND
|--- |  | --------------------------------------------------------------------------------------------------------------------

|(b) |  | there is no government or other insurance covering the Securities, AND
|--- |  | ----------------------------------------------------------------------

|(c) |  | I may lose all of my investment, AND
|--- |  | ------------------------------------

|(d) |  | there are restrictions on my ability to resell the Securities and it is my
responsibility to find out what those restrictions are and to comply with them
before selling the Securities, AND
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | I will not receive a prospectus that the British Columbia Securities Act (the
Act) would otherwise require to be given to me because the Issuer
has advised me that it is relying on a prospectus exemption, AND
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | because I am not purchasing the Securities under a prospectus, I will not have
the civil remedies that would otherwise be available to me, AND
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | the Issuer has advised me that it is using an exemption from the requirement to
          sell through a dealer registered under the Act, except purchases referred to in
          paragraph 5(g), and as a result I do not have the benefit of any protection that
          might have been available to me by having a dealer act on my behalf.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.    
I also acknowledge that: [circle one]

|(a) |  | I am purchasing Securities that have an aggregate acquisition cost of $97,000 or
more, OR
|--- |  | -----------------------------------------------------------------------------------------

|(b) |  | my net worth, or my net worth jointly with my spouse at the date of the
agreement of purchase and sale of the security, is not less than $400,000, OR
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | my annual net income before tax is not less than $75,000, or my annual net
income before tax jointly with my spouse is not less than $125,000, in each of
the two most recent calendar years, and I reasonably expect to have annual net
income before tax of not less than $75,000 or annual net income before tax
jointly with my spouse of not less than $125,000 in the current calendar year,
OR
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | I am registered under the Act, OR
|--- |  | ---------------------------------

|(e) |  | I am a spouse, parent, brother, sister or child of a senior officer or director
of the Issuer, or of an affiliate of the Issuer, OR
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------

|(f) |  | I am a close personal friend of a senior officer or director of the Issuer, or
of an affiliate of the Issuer, OR
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(g) |  | I am purchasing securities under section 128(c) ($25,000  registrant
required) of the Rules, and I have spoken to a person_____________________________ [Name of Registered
Person] (the Registered Person)who has advised me that the
Registered Person is registered to trade or advisein the Securities and that
the purchase of the Securities is a suitable investment for me.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | If I am an individual referred to in paragraph 5(b), 5(c), or 5(d), I
acknowledge that, on the basis of information about the Securities furnished by
the Issuer, I am able to evaluate the risks and merits of the Securities
because: [circle one]
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | of my financial, business or investment experience, OR
|--- |  | ------------------------------------------------------

|(b) |  | I have received advice from a person ______________________________ [Name of adviser]
(the Adviser)who has advised me that the Adviser is:
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | registered to advise, or exempted from the requirement to be registered to
               advise, in respect of the Securities, and
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | not an insider of, or in a special relationship with, the Issuer.
|---- |  | -----------------------------------------------------------------

The statements made in this report
are true.

DATED the_______________________day of April, 2002.

| |                         
| | ------------------------
| |                         
| | Signature of Purchaser  
|
| | R.E. Gordon Davis       
| |                         
| | Name of Purchaser       
|
| | 5555 Newton Wynd        
| | Vancouver, B.C   V6G 1H6
| |                         
| | Address of Purchaser    

---

APPENDIX II B

This is the form required under
section 135 of the Rules and, if applicable, by an order issued under section 76 of the
Securities Act.

BCF 45-903F2

(Formerly, Form 20A
(NIP))

Securities Act

Acknowledgment of
Purchaser that is not an individual

1.    
I have agreed to purchase from CANPLATS RESOURCES CORPORATION(the
Issuer) __________________________________ common shares (the  "Securities")  of
the Issuer.

|2. | The Purchaser is purchasing the Securities as principal, or is a trust Issuer,
          insurer or portfolio manager acting on behalf of fully managed accounts and is
          deemed to be purchasing as principal under section 74(1) of the British Columbia
          Securities Act (the Act).
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | On closing of the agreement of purchase and sale, the Purchaser will be the
          beneficial owner of the Securities, except where the Purchaser is a trust
          Issuer, insurer or portfolio manager acting on behalf of fully managed accounts
          under section 74(1) of the Act.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Purchaser [circle one]has/has not received an offering memorandum
describing the Issuer and the Securities.
|-- | ---------------------------------------------------------------------------------------------------------------

|5. | The Purchaser acknowledges that:
|-- | --------------------------------

|(a) |  | no securities commission or similar regulatory authority has reviewed or passed
on the merits of the Securities, AND
|--- |  | --------------------------------------------------------------------------------------------------------------------

|(b) |  | there is no government or other insurance covering the Securities, AND
|--- |  | ----------------------------------------------------------------------

|(c) |  | the Purchaser may lose all of its investment, AND
|--- |  | -------------------------------------------------

|(d) |  | there are restrictions on the Purchasers ability to resell the Securities
and it is the responsibility of the Purchaser to find out what those
restrictions are and to comply with them before selling the Securities, AND
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | the Purchaser will not receive a prospectus that the Act would otherwise require
be given to the Purchaser because the Issuer has advised the Purchaser that the
Issuer is relying on a prospectus exemption, AND
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | because the Purchaser is not purchasing the Securities under a prospectus, the
Purchaser will not have the civil remedies that would otherwise be available to
the Purchaser, AND
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | the Issuer has advised the Purchaser that the Issuer is using an exemption from
          the requirement to sell through a dealer registered under the Act, except
          purchases referred to in paragraph 6(b), and as a result the Purchaser does not
          have the benefit of any protection that might have been available to the
          Purchaser by having a dealer act on the Purchasers behalf.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.    
          The Purchaser acknowledges that:

|(a) |  | it is a sophisticated purchaser as described in paragraph 2 in the
attached Appendix A [circle the applicable subparagraph in paragraph 2 in
Appendix A]; OR
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | the Securities were purchased under section 128(c) ($25,000  registrant
required) of the Rules and an authorized signatory of the Purchaser has spoken
to a person [Name of Registered Person] (the Registered Person)who
has advised the authorized signatory that the Registered Person is registered to
trade or advise in the Securities and that the purchase of the Securities is a
suitable investment for the Purchaser; OR
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | the Purchaser is a corporation, all the voting securities of which are
          beneficially owned by one or more of:
|--- |  | ----------------------------------------------------------------------------------------------------------------------

| | (i) | a close personal friend of a senior officer or director of the Issuer, or of an
affiliate of the Issuer, OR
| | --- | -----------------------------------------------------------------------------------------------------------

| | (ii) | a senior officer or director of the Issuer, or of an affiliate of the Issuer ,
OR
| | ---- | ---------------------------------------------------------------------------------

| | (iii) | a spouse, parent, brother, sister, or child of a senior officer or director of
               the Issuer, or of an affiliate of the Issuer.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------

|7. | If the Purchaser is referred to in paragraph 6(a), the Purchaser acknowledges
that, on the basis of information about the Securities furnished by the Issuer,
the Purchaser is able to evaluate the risks and merits of the Securities
because: [circle one]
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | of the financial, business or investment experience of the Purchaser, OR
|--- |  | ------------------------------------------------------------------------

|(b) |  | the Purchaser has received advice from a person [Name of adviser](the
Adviser)who has advised the Purchaser that the Adviser is:
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------

| | (i) | registered to advise, or exempted from the requirement to be registered to
advise, in respect of the Securities, AND
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (ii) | not an insider of, or in a special relationship with, the Issuer.
| | ---- | -----------------------------------------------------------------

The statements made in this report
are true.

DATED the ________________ day of
 ____________________________, 2002.

| |                                                     
| | ----------------------------------------------------
| |                                                     
| | Signature of Authorized Signatory of Purchaser      
|
| |                                                     
| | Name and Office of Authorized Signatory of Purchaser
|
| |                                                     
| | Name of Purchaser                                   
|
| |                                                     
| | Address of Purchaser                                

Please turn to Appendix A, which is
attached to and forms a part of this BCF #45-903F2.

---

APPENDIX A TO BCF
#45-903F2

[Circle the applicable subparagraph
in paragraph 2.]

Sophisticated purchaser means
a purchaser that, in connection with a distribution, gives an acknowledgment under section
135 of the Rules to the Issuer, where the Issuer does not believe, and has no reasonable
grounds to believe, that the acknowledgment is false, acknowledging both that:

|1. | the purchaser is able, on the basis of information about the investment
          furnished by the Issuer, to evaluate the risks and merits of the prospective
          investment because of:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the purchasers financial, business or investment experience, OR
|--- |  | ----------------------------------------------------------------

|(b) |  | advice the purchaser receives from a person who is registered to advise, or is
exempted from the requirement to be registered to advise, in respect of the
security that is the subject of the trade (the Security) and who is
not an insider of, or in a special relationship with, the Issuer of the
Security; AND
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.    
the purchaser is one of the following [circle one]:

(a)       
a person registered under the Securities Act, OR

(b)       
          an individual who:

| | (i) | has a net worth, or net worth jointly with the individuals spouse, at the
date of the agreement of purchase and sale of the Security, of not less than
$400,000, OR
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | has had in each of the 2 most recent calendar years, and reasonably expects to
               have in the current calendar year:
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

| | - | annual net income before tax of not less than $75,000, OR
| | - | ---------------------------------------------------------

| | - | annual net income before tax, jointly with the individual's spouse, of not less than $125,000; OR
| | - | -------------------------------------------------------------------------------------------------

(c)       
          a corporation, partnership or trust that:

| | (i) | has net assets of not less than $400,000, OR
| | --- | --------------------------------------------

| | (ii); | has had in each of the 2 most recent calendar years, and reasonably expects to
have in the current calendar year, net income before tax of not less than
$125,000, OR
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | a corporation in which all of the voting shares are beneficially owned by
sophisticated purchasers or of which the majority of the directors are
sophisticated purchasers, OR
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | a general partnership in which all of the partners are sophisticated purchasers,
OR
|--- |  | -----------------------------------------------------------------------------------

|(f) |  | a limited partnership in which a majority of the general partners are
sophisticated purchasers, OR
|--- |  | --------------------------------------------------------------------------------------------------

|(g) |  | a trust in which all of the beneficiaries are sophisticated purchasers or the
          majority of the trustees are sophisticated purchasers.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------

---

APPENDIX III

THE PARTIES to this Agreement
therefore agree:

1.    
PURCHASE AND SALE OF COMMON SHARES

On the Closing, the Purchaser will
purchase from the Issuer 75,000 common shares at a price of $0.15 per common share and the
Issuer will deliver to the Purchaser certificates representing the common shares.

2.    
DEFINITIONS

2.1     In this Agreement, which includes
the cover page and all of the Appendices, the following words have the following meanings
unless otherwise indicated:

|(a) |  | 1933 Act means the Securities Act of 1933 (United States of America), as
    amended;                                                                                                                                                                                                                   
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Alberta Act means the Securities Act, (Alberta) S.A. 1981, c. S-6.1, as
    amended;                                                                                                                                                                                                                    
|(c) |  | Alberta Commission means the Alberta Securities Commission;                                                                                                                                                                                                                                             
|(d) |  | Alberta Rules means the rules made under the Alberta Act;                                                                                                                                                                                                                                               
|(e) |  | Applicable Legislation means the B.C. Act and the Alberta Act, together with
    the regulations and rules made and promulgated thereunder and all administrative policy statements, blanket orders and rulings, notices,
    and other administrative directions issued by the Commissions;            
|(f) |  | B.C. Act means the Securities Act, (British Columbia) R.S.B.C. 1996,
          as amended; (g) (h) B.C. Rules means the rules made under the
          B.C. Act;                                                                                                                                      
|(g) |  | B. C. Commission means the British Columbia
          Securities Commission;                                                                                                                                                                                                                            
|(h) |  | B.C. Rules means the rules made under the
          B.C. Act;                                                                                                                                                                                                                                           
|(i) |  | Closing means the closing of the purchase and sale of the Shares
          under this Subscription Agreement;                                                                                                                                                                                           
|(j) |  | Closing Date means the day the Shares are issued to the Purchaser;                                                                                                                                                                                                                                      
|(k) |  | Commissions means the B.C. Commission and Alberta Commission;                                                                                                                                                                                                                                           
|(l) |  | Exchange means the Canadian Venture Exchange Inc.;                                                                                                                                                                                                                                                      
|(m) |  | Exemptions means the exemptions from the prospectus requirements
          under sections 74(2)(4) and 74(2)(9) of the B.C. Act, section 128(h) of the
          B.C. Rules, British Columbia Instrument #72-503 and sections 107(1)(d) and (z)
          of the Alberta Act;                           
|(n) |  | Private Placement means the offering of the Shares;                                                                                                                                                                                                                                                     
|(o) |  | Purchaser means the person named as Purchaser in this
          Subscription Agreement and wherever Purchaser is used in the plural, it shall
          connote all persons who are a Purchaser under this form of
          Subscription agreement and who subscribe for Shares under the Offering;
|(p) |  | Purchasers Subscription Funds means the amount subscribed for
          by the Purchaser under the Offering;                                                                                                                                                                                           
|(q) |  | Regulation S means Regulation S promulgated under the 1933 Act;
           and                                                                                                                                                                                                                          
|(r) |  | (r) Shares means the common shares in the share capital of the Issuer, as presently
          constituted, to be issued under the Offering.                                                                                                                                                             

2.2    In this Agreement,  the following terms have the meanings  defined in  Regulation "S":  "Directed  Selling  Efforts",
"Foreign Issuer", "Substantial U.S. Market Interest", "U.S. Person" and "United States".

3.    
PURCHASE AND SALE OF COMMON SHARES

3.1     The Purchaser, as principal,
hereby subscribes for and agrees to purchase that number of Shares indicated on the
Agreement to which this Appendix III is attached at a price of $0.15 (Cdn.) per Share, for
that aggregate purchase price indicated on the Agreement to which this Appendix III is
attached (the Subscription Funds).

3.2     The Purchaser shall pay the
Subscription Funds to the Issuer on the date of execution of this Agreement (the
Payment Date).

3.3     This Agreement, when executed by
the Purchaser and delivered to the Issuer, will constitute a subscription for the Shares
which will not be binding on the Issuer until accepted by the Issuer by executing the
Agreement in the space provided above.

3.4     Within 15 business days of
receipt by the Issuer of final approval by the Exchange of the Private Placement, the
Private Placement shall close (the Closing) by the issuance of certificates
for the Shares 3.5     The issue of the Shares will not restrict or prevent the Issuer from
obtaining any other financing or from issuing additional securities or rights.

3.5     The issue of the Shares will not restrict or prevent the Issuer from
obtaining any other financing or from issuing additional securities or rights.

4.    
WARRANTIES AND DISCLAIMER

4.1     The Purchaser acknowledges,
represents, warrants and covenants to and with the Issuer that, as at the date given above
and at the Closing:

|(a) |  | no prospectus has been filed by the Issuer with the Commission in connection
          with the issuance of the Shares, the issuance is exempted from the prospectus
          requirements of the Applicable Legislation and that:
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Purchaser is restricted from using most of the civil remedies available
               under the Applicable Legislation;
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (ii) | the Purchaser may not receive information that would otherwise be required to be
               provided to him under the Applicable Legislation; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the Issuer is relieved from certain obligations that would otherwise apply under
               the Applicable Legislation;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------

|(b) |  | the Purchaser, wherever resident, is:
|--- |  | -------------------------------------

|(i) |  | purchasing sufficient Shares so that the aggregate acquisition cost of the
               Shares to the Purchaser is not less than $97,000, the Purchaser is not a
               corporation, partnership, trust, fund, association, or any other organized group
               of persons created solely, or used primarily, to permit the purchase of the
               Shares (or other similar purchases) by a group of individuals whose individual
               share of the aggregate acquisition cost of the Shares is less than $97,000, and
               the Purchaser is either:
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (A) | purchasing the Shares as principal and no other person, corporation, firm or
          other organization will have a beneficial interest in the Shares; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (B) | if not purchasing the Shares as principal, is
| | --- | ---------------------------------------------

| | (I) | duly authorized to enter into this subscription and to execute all
          documentation in connection with the purchase on behalf of each beneficial
          purchaser, it being acknowledged that the Issuer may in the future be required
          by law to disclose on a confidential basis to securities regulatory authorities
          the identity of each beneficial purchaser of Shares for whom the Purchaser may
          be acting; and is
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | a trust company, insurance company or financial institution that has been
          authorized to do business under the Financial Institutions Act (British
          Columbia);
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | an adviser who manages the investment portfolio of clients through
          discretionary authority granted by one or more clients and who is registered as
          a portfolio manager under the B.C. Act or is exempt from such registration;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | a trust company or insurer, authorized under the laws of a province or
          territory of Canada other than British Columbia to carry on business in such
          province or territory; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | a portfolio manager registered or exempt from registration under the laws of a
          province or territory of Canada, other than British Columbia, or a jurisdiction
          other than Canada and has provided the Issuer with an additional undertaking and
          certification in the form set out in Appendix I(B);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | and it is purchasing the Shares as an agent or trustee for accounts that are fully managed by
it, and the aggregate acquisition cost of the Shares purchased for all the accounts
managed by it is not less than $97,000; or
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(II) |  | is acting as agent for one or more disclosed principals, each of which
               principals is purchasing as a principal for its own account, not for the benefit
               of any other person, and not with a view to the resale or distribution of all or
               any of the Shares and each of which principals complies with
               subsection 4.1(b)(i) hereof; and
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | and if the Purchaser is an individual, the Purchaser has executed, prior to the execution of
this Agreement, and delivered to the Issuer, a BCF #45-903F1 attached hereto as Appendix
II(A);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OR

(ii)       
          purchasing as principal and the Purchaser is:

|(A) |  | an employee, senior officer or director of the Issuer or of an affiliate of the
               Issuer and the Purchaser has not been induced to make this subscription by
               expectation of employment or continued employment; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) |  | a trustee on behalf of a person referred to in subparagraph (ii)(A) above; or
|--- |  | -----------------------------------------------------------------------------

|(C) |  | an issuer all the voting securities of which are beneficially owned by one or
               more of the persons referred to in subparagraph (ii)(A) above;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

OR

(iii)       
          purchasing as principal and the Purchaser:

|(A) |  | is a spouse, parent, brother, sister, child or close personal friend of a senior
               officer or director of the Issuer, or of an affiliate of the Issuer; or
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) |  | is a company, all the voting securities of which are beneficially owned by one
               or more of a senior officer or director of the Issuer, or of an affiliate of the
               Issuer, or a spouse, parent, brother, sister, child or close personal friend of
               a senior officer or director of the Issuer, or of an affiliate of the Issuer;
               and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(C) |  | the Purchaser has executed, prior to the execution of this Agreement, and
               delivered to the Issuer a BCF #45-903F1 or BCF #45-903F2, as applicable,
               attached hereto as Appendix II(A) (if the Purchaser is an individual) or
               Appendix II(B) (if the Purchaser is not an individual), respectively; or
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OR

|(iv) |  | purchasing Shares under British Columbia Instrument #72-503 and the Purchaser
               has executed and delivered to the Issuer, the additional acknowledgements,
               representations and warranties set out in Exhibit I to this Appendix III; or
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OR

|(v) |  | the Purchaser is the Business Development Bank of Canada, a bank, credit union,
               trust company or extra-provincial trust corporation authorized to carry on
               business under the Financial Institutions Act (British Columbia), a corporation
               that is a subsidiary of a bank and to which the Loan Companies Act (Canada)
               applies, the B.C. Community Financial Services Corporation established
               under the Community Financial Services Act (British Columbia), and insurance
               company or an extra-provincial insurance corporation licensed to do business
               under the Financial Institutions Act (British Columbia), a subsidiary wholly
               owned (except for voting securities required by law to be owned by directors of
               that subsidiary) of any of the foregoing, the government of Canada or a
               province, or a municipal corporation, public board or commission in Canada;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OR

|(vi) |  | the Purchaser is purchasing as principal, is not an individual and is designated
               as an exempt purchaser in an order made by the Executive Director of the B.C.
               Commission.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(c)       
          the Purchaser, if resident in Alberta, is:

|(i) |  | purchasing as principal sufficient Shares so that the aggregate acquisition cost
               of the Shares to the Purchaser is not less than $97,000, the Purchaser is not a
               corporation, partnership, trust, fund, association, or any other organized group
               of persons created solely, or used primarily, to permit the purchase of the
               Shares (or other similar purchases) by a group of individuals whose individual
               share of the aggregate acquisition cost of the Shares is less than $97,000; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | is purchasing as principal and is:
|---- |  | ----------------------------------

|(A) |  | a senior officer or director of the
               Issuer; or
|--- |  | -------------------------------------------------------------

|(B) |  | a senior officer or director of an affiliate of the Issuer; or
|--- |  | --------------------------------------------------------------

|(C) |  | a spouse, parent, brother, sister or child of a senior officer or director of
               the Issuer, or of an affiliate of the Issuer; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------

|(D) |  | a company, all the voting securities of which are beneficially owned by one or
               more of a senior officer or director of the Issuer, or of an affiliate of the
               Issuer, or a spouse, parent, brother, sister or child of a senior officer or
               director of the Issuer, or of an affiliate of the Issuer; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(E) |  | a close friend or business associate of a promoter of the Issuer, or a company
               all the voting securities of which are beneficially owned by a single close
               friend or single business associate of a promoter of the Issuer;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(d)       
          the Purchaser has not received a copy of an offering memorandum;

(e)       
          to the best of the Purchasers knowledge, the Shares were not advertised;

(f)       
          no person has made to the Purchaser any written or oral representations:

(i)       
          that any person will resell or repurchase the Shares;

(ii)       
          that any person will refund the purchase price of the Shares;

(iii)       
          as to the future price or value of any of the Shares;

(g)       
          this subscription has not been solicited in any other manner contrary to the
          Applicable Legislation or the 1933 Act;

|(h) |  | the Purchaser is not a control person of the Issuer as defined in
          the Applicable Legislation, will not become a control person by
          virtue of this purchase of any of the Shares, and does not intend to act in
          concert with any other person to form a control group of the Issuer;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the offer was not made to the Purchaser when he was in the United States and at
          the time the Purchasers buy order was made, the Purchaser was outside the
          United States;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) |  | the Purchaser is at arms length with the Issuer, unless the Issuer is
          advised to the contrary prior to the Closing;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(k) |  | the Purchaser acknowledges that the Shares have not been registered under the
          1933 Act and may not be offered or sold in the United States unless
          registered under the 1933 Act and the securities laws of all applicable
          states of the United States or an exemption from such registration requirements
          is available, and that the Issuer has no obligation or present intention of
          filing a registration statement under the 1933 Act in respect of the Shares;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) |  | the Purchaser is not a U.S. Person;
|--- |  | -----------------------------------

|(m) |  | the Purchaser is not and will not be purchasing Shares for the account or
          benefit of any U.S. Person;
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(n) |  | the Purchaser (or others for whom it is contracting hereunder) has been advised
          to consult its own legal and tax advisors with respect to applicable resale
          restrictions and tax considerations, and it (or others for whom it is
          contracting hereunder) is solely responsible for compliance with applicable
          resale restrictions and applicable tax legislation;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(o) |  | the Purchaser has no knowledge of a material fact or material
          change (as those terms are defined in the Applicable Legislation) in the
          affairs of the Issuer that has not been generally disclosed to the public, save
          knowledge of this particular transaction;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) |  | the offer made by this subscription is irrevocable (subject to the
          Purchasers right to withdraw his subscription and to terminate his
          obligations as set out in this Agreement) and requires acceptance by the Issuer;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(q) |  | the Purchaser has the legal capacity and competence to enter into and execute
          this Agreement and to take all actions required pursuant hereto and, if the
          Purchaser is a corporation it is duly incorporated and validly subsisting under
          the laws of its jurisdiction of incorporation and all necessary approvals by its
          directors, shareholders and others have been given to authorize execution of
          this Agreement on behalf of the Purchaser;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(r) |  | the entering into of this Agreement and the transactions contemplated hereby
          will not result in the violation of any of the terms and provisions of any law
          applicable to, or the constating documents of, the Purchaser or of any
          agreement, written or oral, to which the Purchaser may be a part or by which he
          is or may be bound;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(s) |  | this Agreement has been duly executed and delivered by the Purchaser and
          constitutes a legal, valid and binding agreement of the Purchaser enforceable
          against the Purchaser;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(t) |  | the Purchaser has been independently advised as to the applicable hold period
          imposed in respect of the Shares by securities legislation in the jurisdiction
          in which the Purchaser resides and confirms that no representation has been made
          respecting the applicable hold periods for the Shares and is aware of the risks
          and other characteristics of the Shares and of the fact that the Purchaser may
          not be able to resell the Shares except in accordance with the applicable
          securities legislation and regulatory policies;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(u) |  | the Purchaser, and any beneficial purchaser for whom the Purchaser is acting, is
          resident in the province or jurisdiction set out on the cover page of this
          Agreement;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) |  | the Purchaser is capable of assessing the proposed investment as a result of the
          Purchasers financial experience or as a result of advice received from a
          registered person other than the Issuer or any affiliates thereof;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(w) |  | if required by applicable securities legislation, policy or order or by any
          securities commission, stock exchange or other regulatory authority, the
          Purchaser will execute, deliver, file and otherwise assist the Issuer in filing,
          such reports, undertakings and other documents with respect to the issue of the
          Shares as may be required;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(x) |  | the Purchaser acknowledges that the offering of securities under this Private
          Placement is restricted to purchasers in Canada that are resident in British
          Columbia and Alberta only, and in such other jurisdictions outside of Canada and
          the United States, where such securities may be lawfully offered for sale; and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(y) |  | the Purchaser agrees that the above representations, warranties and covenants in
          this subsection will be true and correct both as of the execution of this
          subscription and as of the Closing Date.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.2 The foregoing representations,
warranties and covenants are made by the Purchaser with the intent that they be relied
upon by the Issuer in determining its suitability as a purchaser of Shares, and the
Purchaser hereby agrees to indemnify the Issuer against all losses, claims, costs,
expenses and damages or liabilities which any of them may suffer or incur as a result of
reliance thereon. The Purchaser undertakes to notify the Issuer immediately of any change
in any representation, warranty or other information relating to the Purchaser set forth
herein which takes place prior to the Closing.

4.3 The Issuer represents and warrants that, as of the date given above and at the Closing:

|(a) |  | the Issuer and its subsidiaries, if any, are valid and subsisting corporations
          duly incorporated and in good standing under the laws of the jurisdiction in
          which they are incorporated, continued or amalgamated;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | the Issuer and its subsidiaries, if any, are duly registered and licenced to
          carry on business in the jurisdictions in which they carry on business or own
          property where required under the laws of that jurisdiction;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | the authorized and issued capital of the Issuer is as disclosed to the
          Purchaser, and the outstanding shares of the Issuer are fully paid and
          non-assessable;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | the Issuer will reserve or set aside sufficient shares in its treasury to issue
          the Shares and such common shares, on receipt of full payment therefor, will be
          duly and validly issued as fully paid and non-assessable;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | except as qualified by the disclosure in all prospectuses, filing statements and
          press releases filed with the Commissions (the Disclosure Record),
          the Issuer is the beneficial owner of the properties, business and assets or the
          interests in the properties, business or assets referred to in the Disclosure
          Record, all agreements by which the Issuer holds an interest in a property,
          business or assets are in good standing according to their terms, and the
          properties are in good standing under the applicable laws of the jurisdictions
          in which they are situated;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | the Disclosure Record, subscription form and all other written or oral
          representations made by the Issuer to the Purchaser in connection with the
          Private Placement is and will be accurate in all material respects and does and
          will omit no fact, the omission of which does or will make such representations
          misleading or incorrect;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | the financial statements most recently filed with the Commissions have been
          prepared in accordance with Canadian generally accepted accounting principles,
          accurately reflect the financial position and all material liabilities (accrued,
          absolute, contingent or otherwise) of the Issuer as of the date thereof, and no
          adverse material changes in the financial position of the Issuer have taken
          place since the date thereof, save in the ordinary course of the Issuers
          business;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) |  | the Issuer has complied and will comply fully with the requirements of all
          applicable corporate and securities laws and administrative policies and
          directions, including, without limitation, the Applicable Legislation in
          relation to the issue and trading of its securities and in all matters relating
          to the Private Placement;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | there is not presently any material change, as defined in the Applicable
          Legislation, relating to the Issuer or change in any material fact, as defined
          in the Applicable Legislation, relating to any of the Shares which has not been
          or will not be fully disclosed in accordance with the requirements of the
          Applicable Legislation;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) |  | the issue and sale of the Shares by the Issuer does not and will not conflict
          with, and does not and will not result in a breach of, any of the terms of the
          Issuers incorporating documents or any agreement or instrument to which
          the Issuer is a party;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) |  | neither the Issuer nor any of its subsidiaries is a party to any actions, suits
          or proceedings which could materially affect its business or financial
          condition, and to the best of the Issuers knowledge no such actions, suits
          or proceedings are contemplated or have been threatened except as disclosed in
          the Disclosure Record;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) |  | there are no judgments against the Issuer or any of its subsidiaries, if any,
          which are unsatisfied, nor are there any consent decrees or injunctions to which
          the Issuer or any of its subsidiaries, if any, is subject;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) |  | this Agreement has been or will be by the Closing, duly authorized by all
          necessary corporate action on the part of the Issuer, and the Issuer has full
          corporate power and authority to undertake the Private Placement;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(n) |  | the Issuer is not in default of any of the requirements of the Applicable
          Legislation or any of the administrative policies or notices of the Commissions;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(o) |  | no order ceasing or suspending trading in securities of the Issuer nor
          prohibiting the sale of such securities has been issued to and is outstanding
          against the Issuer or its directors, officers or promoters or against any other
          companies that have common directors, officers or promoters and no
          investigations or proceedings for such purposes are pending or threatened;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) |  | the Issuer satisfies and will satisfy all necessary requirements under the
          Exemptions in order to permit the sale of the Shares to Purchasers who are
          qualified to purchase the Shares under the Exemptions, pursuant to this Private
          Placement; and
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(q) |  | the Issuer has not issued during the preceding 12-month period and is not
          concurrently issuing any security or securities to more than 24 purchasers,
          including the purchasers who will purchase under the Private Placement, under
          the Exemption at section 128(h) of the B.C. Rules.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.4  The representations and warranties contained in this Section will survive the Closing.

4.5 The Purchaser hereby acknowledges
that all warranties, conditions, representations or stipulations, whether express or
implied and whether arising hereunder or under prior agreement or statement or by statute
or at common law are expressly those of the Issuer. The Purchaser acknowledges that no
information or representation concerning the Issuer has been provided to the Purchaser by
the Issuer other than those contained in this Agreement and the Disclosure Record and that
the Purchaser is relying entirely upon this Agreement and the Disclosure Record.

5.    
CLOSING

5.1 The Closing will take place
within fifteen business days after receipt by the Issuer of final approval of the Private
Placement by the Exchange. The Purchaser acknowledges that, although Shares may be issued
to other purchasers under the Private Placement concurrently with the Closing, there may
be other sales of Shares under the Private Placement, some or all of which may close after
the Closing. The Purchaser further acknowledges that there is a risk that insufficient
funds may be raised on the Closing to fund the Issuers objectives and that further
closings may not take place after the Closing.

5.2 The Purchaser will deliver to the
Issuer this subscription agreement, duly executed, and payment in full for the total price
of the Shares to be purchased by the Purchaser.

5.3 At Closing, the Issuer will
deliver to the Purchaser the certificates representing the Shares purchased by the
Purchaser registered in the name of the Purchaser or its nominee.

5.4 The Purchaser will also deliver to the Issuer, along with this Subscription Agreement:

|(a) |  | a fully executed a BCF #45-903F1 or BCF #45-903F2, attached hereto as either
          Appendix IIA (if the Purchaser is an individual) or Appendix IIB (if the
          Purchaser is not an individual), whichever is applicable to the Purchaser, if
          required under the applicable Exemption;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | if the Purchaser is not an individual, a fully executed Corporate Placee
          Registration Form (the Form) as set out in Appendix I(A), unless the
          Form is already on file with the Exchange and the Exchange has been advised of
          any changes in the information provided in the Form, prior to the Purchaser
          participating in the Private Placement;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | if the Purchaser is a portfolio manager, a fully executed additional
          undertaking and certification in the form set out in Appendix I(B); and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | if the Purchaser is relying on the exemption contained in British Columbia
          Instrument #72-503, a fully executed acknowledgement in the form attached as
          Exhibit I to this Appendix III.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.5 If the Closing does not occur
within 180 days after the date of execution of this Subscription Agreement, this
Subscription Agreement may be terminated by either party by delivering notice of
termination to the other, and the Issuer shall return the Subscription Funds to the
Purchaser. The obligation of the Issuer to repay the loan will be cancelled upon the
occurrence of the Closing and delivery by the Issuer of the certificate(s) representing
the Shares to the Purchaser.

6.    
HOLD PERIOD

6.1 The Purchaser acknowledges that
the Shares will be subject to restrictions on resale until such time as the earlier to
occur of:

(a) a period of four months has elapsed from the date of issue of the Shares; or

(b) an appropriate discretionary order is obtained pursuant to applicable securities laws.

6.2 The certificates representing the
Shares will bear a legend denoting the restrictions on transfer imposed by the Applicable
Legislation and by the policies of the Exchange. The Purchaser agrees to sell, assign or
transfer the Shares only in accordance with the requirements of applicable securities laws
and such legends.

7.    
MISCELLANEOUS

7.1 The Purchaser hereby authorizes
the Issuer to correct any minor errors in, or complete any minor information missing from
the Corporate Placee Registration Form (Appendix I(A)), Portfolio Manager: Additional
Undertaking and Certification (Appendix I(B)), BCF #45-903F1 (Appendix (IIA)) or BCF
#45-903F2 (Appendix II(B)), which has been executed by the Purchaser and delivered to the
Issuer.

7.2 The Issuer will be entitled to
rely on delivery by facsimile machine of an executed copy of this subscription, and
acceptance by the Issuer of such facsimile copy will be equally effective to create a
valid and binding agreement between the Purchaser and the Issuer in accordance with the
terms hereof.

7.3 This agreement is not assignable
or transferable by the parties hereto without the express written consent of the other
party hereto.

7.4 Time is of the essence of this
Agreement and will be calculated in accordance with the provisions of the Interpretation
Act (British Columbia).

7.5 Except as expressly provided in
this Agreement and in the agreements, instruments and other documents contemplated or
provided for herein, this Agreement contains the entire agreement between the parties with
respect to the Shares and there are no other terms, conditions, representations or
warranties whether expressed, implied, oral or written, by statute, by common law, by the
Issuer, or by anyone else.

7.6 The parties to this Agreement may amend this Agreement only in writing.

7.7 This Agreement enures to the
benefit of and is binding upon the parties to this Agreement and their successors and
permitted assigns.

7.8 A party to this Agreement will
give all notices to or other written communications with the other party to this Agreement
concerning this Agreement by hand or by registered mail addressed to the address given
above.

7.9 This Agreement is to be read with all changes in gender or number as required by the context.

7.10 This Agreement will be governed
by and construed in accordance with the laws of British Columbia, and the parties hereto
irrevocably attorn and submit to the jurisdiction of the courts of British Columbia with
respect to any dispute related to this Agreement.

END OF APPENDIX III

---

EXHIBIT I

Additional
Acknowledgements, Representations, and Warranties  of the Purchaser for use of British
Columbia Instrument #72-503 Exemption

The Purchaser acknowledges,
represents, certifies and warrants as at the date of execution of the subscription
agreement of the Purchaser and at the closing of the Offering of common shares (the
Securities) of Canplats Resources Corporation (the Issuer), that:

|(a) | no prospectus has been filed by the Issuer with the British Columbia Securities Commission in
connection with the issuance of the Securities, the issuance is exempted from the prospectus requirement of the Securities
Act (British Columbia) (the Act) or any regulations (the
Regulations) promulgated under the Act and that:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Purchaser is restricted from using most of the civil remedies available
          under the Act and Regulations;
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (ii) | the Purchaser may not receive information that would otherwise be required to be provided to the Purchaser under the Act
          and the Regulations; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the Issuer is relieved from certain obligations that would otherwise apply under
          the Act and the Regulations;
| | ----- | -----------------------------------------------------------------------------------------------------------------------

(b)     the Purchaser is not a resident of British Columbia and that:

| | (i) | no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (ii) | there is no government or other insurance covering the Securities;
| | ---- | ------------------------------------------------------------------

| | (iii) | there are risks associated with the purchase of the Securities;
| | ----- | ---------------------------------------------------------------

| | (iv) | there are restrictions on the Purchasers ability to resell the Securities and it is the
          responsibility of the Purchaser to find out what those restrictions are and to comply with them
          before selling the Securities; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | from the requirements to provide the Purchaser with a prospectus and to sell
          securities through a person registered to sell securities under the Act and, as
          a consequence of acquiring securities pursuant to this exemption, certain
          protections, rights and remedies provided by the Act, including statutory rights
          of rescission or damages, will not be available to the Purchaser;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the Purchaser is purchasing the Securities as principal and no other person,
          corporation, firm or other organization will have the beneficial interest in the
          Securities;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------