# Employment
Agreement

THIS
AGREEMENT made effective the 6th day of May, 2002

## AMONG:

| | Doug W. Cannaday, an individual with a residence in Calgary Alberta with
an address for delivery at #685, 440 - 10816 McLeod Trail, South, Calgary
Alberta T2J 5N8
(Cannaday)
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

## AND:

| | Uranium Power Corporation, a corporation under the laws of the State of
Colorado with an office at Suite 206, 475 Howe Street, Vancouver British
Columbia V6C 2B3
(URMP)
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

## WHEREAS:

|A. | Uranium Power Corporation (URMP), a publicly traded corporation, is
desirous of retaining personal services of Doug W. Cannaday
(Cannaday) to provide leadership and other management services and
potentially to hold the offices of Director and/or President of URMP or related
corporations such as API;
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|B. | Cannaday has expressed his availability, willingness and interest to hold those
important positions within URMP and where appropriate, related
corporations;
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

THEREFORE Cannaday
and URMP, in consideration of the mutual covenants and agreements hereinafter
contained and for other good and valuable consideration (the receipt and
sufficiency of which is hereby acknowledged), the parties hereto covenant and
agree with the others as follows:

# ARTICLE I

# INTERPRETATION

|1.1 | Included Words. This Agreement shall be read with such changes in
gender or number as the context shall require.
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|1.2 | Headings. The headings to the articles, sections, subsections,
paragraphs, parts or clauses of this Agreement are inserted for convenience only
and shall not affect the construction hereof.
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|1.3 | References. Unless otherwise stated, a reference herein to a
numbered or lettered article, section, subsection, paragraph, clause or schedule
refers to the article, section, subsection, paragraph, clause or schedule
bearing that number or letter in this Agreement. A reference to this
article, section, subsection, paragraph, clause or schedule means the article,
section, subsection, paragraph, clause or schedule in which the reference
appears. A reference to this Agreement, hereof,
hereunder, herein or words of similar meaning, means
this agreement including any amendments thereof.
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# ARTICLE II

# TERMS

|2.1 | Commencement. Commencing May 6th, 2002 Cannaday
shall provide leadership and management services to URMP, as specified and
directed by its Board of Directors including to conduct:
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| | (a) | administrative and other corporate matters in cooperation with George Orr;
and,
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| | (b) | road show presentations pursuant to the direction of Thornton
Donaldson, Tim Brock, Bruce Lazier, Tony Clements or others as directed by the
URMP Board of Directors.
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2.2 Monthly
Remuneration. In return for the personal services of Cannaday, URMP
shall pay compensation to Cannaday or Cannadays designee, at the rate of
$6,000 (Cdn.) monthly, payable to Cannaday at the end of each calendar
month.

2.3 Reimburse
Expenses. URMP shall reimburse Cannaday for reasonable expenses
incurred during the course of Cannaday performing services for URMP. Cannaday
shall accumulate and accrue the various expenses and submit a summary at the end
of each calendar month following which URMP shall pay to Cannaday the amount of
those expenses no later than the 10th day of the following month in
which the expenses were incurred.

2.4 Stock
Options. In consideration of Cannadays agreement to enter this
employment agreement, URMP does hereby grant a stock option to Cannaday or
Cannadays designee as follows:

| |  | An
option to purchase 400,000 shares for a period of three years at an exercise
price equal to the market price (May 6th, 2002) less maximum allowable discount.
These 400,000 shares may be qualified for resale by way of an S-8
registration.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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2.5
Renegotiation. At the latter of 3 months from the effective
date of this agreement or at such time as the outcome (completion/abandonment)
for the AOC 7-32-89-10 W4M well is known, URMP and Cannaday shall renegotiate
the remuneration payable to Cannaday.

2.6
$5,000.00. In order for Cannaday to perform his services to
URMP, URMP shall deliver to Cannaday the sum of $5,000 Cdn. to purchase a
computer system and printer together with other necessities such as working
capital in order to effect work on behalf of URMP; including to establish a
Calgary office.

2.7 Calgary
Office. It is recognized by URMP that Cannaday has a long time
personal relationship with Robert McPherson Ph.D, P.Geol., President of
Hazelwood Energy Ltd. and other corporations, and who is involved in the
petroleum and natural gas business and placer gold mining operations. Mr.
McPherson has agreed to permit Cannaday on a temporary basis, to conduct the
business of URMP from the offices of Mr. McPherson or his corporations. At some
point in time URMP is obliged to pay Mr. McPherson for office related
provisions, including use of a fully equipped office, telephone, facsimile and
Internet services and other related services such as use of a copy machine
together with reimbursement for actual telephone or facsimile transmission
expenses.

# ARTICLE III

# NOTICE

3.1
Notice. Any notice or other writing required or permitted
to be given hereunder or for the purposes hereof shall be sufficiently given if
delivered or telecopied to the party to whom it is given at:

(a)     
      if to Cannaday:

| | Doug W. Cannaday
#685, 440 - 10816 McLeod Tr. S.,
Calgary, Alberta T2J 5N8
Telecopier no. (403) 201-8971
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(b)     
      if to URMP:

| | Uranium Power Corporation
Suite 206, 475 Howe Street
Vancouver, B.C. V6C 2B3
Attention:        Thornton J. Donaldson
Telecopier no. (604) 687-8789
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| | Any
notice given as aforesaid shall be deemed to have been given or made on, if
delivered, the date on which it was delivered or, if telecopied, on the next
business day after it was telecopied. Any party hereto may change its address
for notice from time to time by notice given to the other parties hereto in
accordance with the foregoing.
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# ARTICLE IV

# GENERAL
PROVISIONS

|4.1 | Entire Agreement. This Agreement constitutes the entire agreement
between the parties and replaces and supersedes all prior agreements, memoranda,
correspondence, communications, negotiations and representations, whether oral
or written, express or implied, statutory or otherwise between the parties with
respect to the subject matter herein. This Agreement may not be amended or
modified except by an instrument in writing signed by each of the parties
hereto.
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|4.2 | Waiver. No consent or waiver, express or implied, by any party to
or of any breach or default by any other party of any or all of its obligations
under this Agreement will:
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| | (a) | be valid unless it is in writing and stated to be a consent or waiver
hereunder;
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| | (b) | be relied upon as a consent or waiver to or of any other breach or default of
the same or any other obligation;
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| | (c) | constitute a general waiver under this Agreement; or
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| | (d) | eliminate or modify the need for a specific consent or waiver in any other or
subsequent instance.
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|4.3 | Further Assurances. The parties will execute such further and
other documents and do such further and other things as may be necessary or
convenient to carry out and give effect to the intent of this
Agreement.
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|4.4 | Time of the Essence. Time shall be of the essence in the
performance of this Agreement.
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|4.5 | Enurement. This Agreement shall enure to the benefit of and be
binding upon the parties hereto and their respective successors and
assigns.
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|4.6 | Dispute Resolution - In the event of any dispute of matters
involving this agreement by any of the parties, the parties agree such dispute
shall be resolved by arbitration conducted in the City of Vancouver, Province of
British Columbia. Provided the dispute directly involves Cannaday and URMP, the
cost of such arbitration shall be born equally by URMP and Cannaday,
alternatively, as determined by the Arbitrator. Any Arbitration proceeding shall
determine, with finality, any dispute.
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|4.1 | Governing Law. Except as provided for in paragraph 4.6 above, this
Agreement shall be governed by and construed in accordance with the laws of the
Province of Alberta and the laws of Canada applicable therein.
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|4.8 | Fax and Counterpart. This Agreement may be executed by fax and in
counterparts.
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IN WITNESS WHEREOF
the parties hereto have executed this Agreement as of the day and year first
above written.

|Doug W. Cannaday | Witness (as to Doug W. Cannaday)
|---------------- | --------------------------------

|Uranium Power Corporation
|-------------------------

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