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                                                                    EXHIBIT 10.2


                          REGISTRATION RIGHTS AGREEMENT


         THIS REGISTRATION RIGHTS AGREEMENT ("AGREEMENT") is entered into as of
February 5, 2001 between Sunshine Mining and Refining Company, a Delaware
corporation, with offices at 817 West Main Street, Suite 600, Boise, Idaho 83702
(the "COMPANY") and each of the entities listed under "INVESTORS" on the
signature page hereto (each an "INVESTOR" and collectively the "INVESTORS"),
each with offices at the address listed under such Investor's name on Schedule I
hereto.

                                   WITNESSETH:

         WHEREAS, pursuant to a Plan of Reorganization, dated as of August 23,
2000 filed by the Company, as subsequently amended and which became effective on
February 5, 2001, certain affiliates of the Company and the Investors with the
federal bankruptcy court in Delaware (the "PLAN OF REORGANIZATION"); and

         WHEREAS, the Company and the investors desire that all shares of the
Company's common stock, par value $0.01 per share ("Common Stock") issued to the
Investors pursuant to the Plan of Reorganization (the "Reorganization Shares")
be subject to the registration rights contained herein;

         NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in and this
Agreement, the Company and the Investors agrees as follows:

         1. Certain Definitions. Capitalized terms used herein and not otherwise
defined shall have the meaning ascribed thereto in the Plan of Reorganization.
As used in this Agreement, the following terms shall have the following
respective meanings:

         "Approved Market" shall mean the New York Stock Exchange, the American
Stock Exchange, the NASDAQ National Market, the NASDAQ Small Cap Market or the
NASDAQ OTC Bulletin Board.

         "Closing Date" shall refer to the Effective Date of the Plan of
Reorganization.

         "Commission" or "SEC" shall mean the Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.

         "Common Stock" shall have the meaning set forth in the preamble.

         "Default Payment" shall have the meaning set forth in Section 2(b)(i).

         "Deficiency" shall have the meaning set forth in Section 2(b)(iv).

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         "Holder" and "Holders" shall mean the Investor or the Investors,
respectively, and any transferee of the Registrable Securities which have not
been sold to the public to whom the registration rights conferred by this
Agreement have been transferred in compliance with this Agreement.

         "Indemnified Party" shall have the meaning set forth in Section 6(c).

         "Indemnifying Party" shall have the meaning set forth in Section 6(c).

          "Interfering Events" shall have the meaning set forth in Section 2(b).

         "Listing Period" shall have the meaning set forth in Section
2(b)(ii)(A).

         "Market Price"" shall mean the price of one share of Common Stock
determined as follows:

                  (i)      if the Common Stock is listed on the New York Stock
                           Exchange or the American Stock Exchange, the closing
                           price on such exchange on the date of valuation;

                  (ii)     if (i) does not apply and the Common Stock is listed
                           on the NASDAQ National Market System, the NASDAQ
                           Small-Cap Market or the NASDAQ OTC Bulletin Board,
                           the last reported bid price on the date of valuation;

                  (iii)    If neither (i) nor (ii) apply but the Common Stock is
                           quoted in the over-the-counter market, another
                           recognized exchange or on the pink sheets, the last
                           reported bid price on the date of valuation; and

                  (iv)     If neither clause (i), (ii) or (iii) above applies,
                           the good faith determination of the Board of
                           Directors, with the concurrence and participation of
                           an investment banking firm acceptable to the Holders.

         "Mandatory Repurchase Price" shall have the meaning set forth in
Section 2(b)(i)(B).

         "Put Notice" shall have the meaning set forth in Section 2(b)(i)(B).

         "Registrable Securities" shall mean (i) the Reorganization Shares; (ii)
any securities of the Company issued or issuable to the Investors or their
permitted transferees upon any stock split, stock dividend, recapitalization or
similar event with respect to the aforementioned securities; and (iii) any
securities of the Company issued as a dividend or other distribution with
respect to, conversion or exchange of, or in replacement of, Registrable
Securities.


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         The terms "register", "registered" and "registration" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement.

         "Registration Expenses" shall mean all expenses to be incurred by the
Company in connection with each Holder's registration rights under this
Agreement, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, "Blue Sky"
fees and expenses, reasonable fees and disbursements of counsel to Holders
(using a single counsel selected by a majority in interest of the Holders) for a
"due diligence" examination of the Company and review of the Registration
Statement and related documents, and the expense of any special audits incident
to or required by any such registration (but excluding the compensation of
regular employees of the Company, which shall be paid in any event by the
Company).

         "Registration Statement" shall have the meaning set forth in Section
2(a) herein.

         "Regulation D" shall mean Regulation D as promulgated pursuant to the
Securities Act, and as subsequently amended.

         "Securities Act" or "Act" shall mean the Securities Act of 1933, as
amended.

         "Selling Expenses" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities and all fees and
disbursements of counsel for Holders not included within "Registration
Expenses".

         "Suspension Grace Period" shall have the meaning set forth in Section
2(b)(iii).

         2. Registration Requirements. The Company shall use its best efforts to
effect the registration of the Investors' Registrable Securities (including
without limitation the execution of an undertaking to file post-effective
amendments, appropriate qualification under applicable "Blue Sky" or other state
securities laws and appropriate compliance with applicable regulations issued
under the Securities Act) as would permit or facilitate the sale or distribution
of all the Registrable Securities in the manner (including manner of sale)
designated by the Holder and in all U.S. jurisdictions. Such best efforts by the
Company shall include the following:

                  (a) The Company shall, as expeditiously as reasonably possible
after the Effective Date (as defined in the Plan of Reorganization) (the
"CLOSING DATE"):

                           (i) But in any event by March 20, 2001 (THE "FILING
                  DATE") prepare and file a registration statement with the
                  Commission pursuant to Rule 415 under the Securities Act on
                  Form S-3 under the Securities Act (or in the event that the
                  Company is ineligible to use such form, such other form as the
                  Company is eligible to use under the Securities Act) covering
                  the Registrable Securities (such registration statement,
                  including any amendments or supplements thereto and
                  prospectuses contained therein, is


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         referred to herein as the "REGISTRATION STATEMENT"), which Registration
         Statement, to the extent allowable under the Securities Act and the
         rules promulgated thereunder (including Rule 416), shall state that
         such Registration Statement also covers such number of additional
         shares of Common Stock as may become issuable to prevent dilution
         resulting from stock splits, stock dividends or similar events. The
         number of shares of Common Stock initially included in such
         Registration Statement shall be no less than the number of shares of
         Common Stock that are as of the date of this Agreement issued or
         issuable to the Investors. Thereafter, the Company shall use its best
         efforts to cause such Registration Statement to be declared effective
         as soon as practicable, and in any event prior to 60 days following the
         Filing Date. The Company shall provide Holders and their legal counsel
         reasonable opportunity to review any such Registration Statement or
         amendment or supplement thereto prior to filing.

                  (ii) Prepare and file with the SEC such amendments and
         supplements to such Registration Statement and the prospectus used in
         connection with such Registration Statement as may be necessary to
         comply with the provisions of the Act with respect to the disposition
         of all securities covered by such Registration Statement in accordance
         with the intended methods of disposition by the seller thereof as set
         forth in the Registration Statement and notify the Holders of the
         filing and effectiveness of such Registration Statement and any
         amendments or supplements.

                  (iii) Furnish to each Holder such numbers of copies of a
         current prospectus conforming with the requirements of the Act, copies
         of the Registration Statement, any amendment or supplement thereto and
         any documents incorporated by reference therein and such other
         documents as such Holder may reasonably require in order to facilitate
         the disposition of Registrable Securities owned by such Holder.

                  (iv) Register and qualify the securities covered by such
         Registration Statement under the securities or "Blue Sky" laws of all
         U.S. jurisdictions; provided that the Company shall not be required in
         connection therewith or as a condition thereto to qualify to do
         business or to file a general consent to service of process in any such
         states or jurisdictions.

                  (v) Notify each Holder immediately of the happening of any
         event as a result of which the prospectus (including any supplements
         thereto or thereof and any information incorporated or deemed to be
         incorporated by reference therein) included in such Registration
         Statement, as then in effect, includes an untrue statement of material
         fact or omits to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading in light of the
         circumstances then existing, and use its best efforts to promptly
         update and/or correct such prospectus.


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                  (vi) Notify each Holder immediately of the issuance by the
         Commission or any state securities commission or agency of any stop
         order suspending the effectiveness of the Registration Statement or the
         initiation of any proceedings for that purpose. The Company shall use
         its best efforts to prevent the issuance of any stop order and, if any
         stop order is issued, to obtain the lifting thereof at the earliest
         possible time.

                  (vii) Permit the Holders of the Registrable Securities
         included in the Registration Statement to review the Registration
         Statement and all amendments and supplements thereto within a
         reasonable period of time prior to each filing, and shall not file any
         document in a form to which such counsel reasonably objects.

                  (viii) List the Registrable Securities covered by such
         Registration Statement with all securities exchange(s) and/or markets
         on which the Common Stock is then listed and prepare and file any
         required filings with the New York Stock Exchange, the National
         Association of Securities Dealers, Inc. or any exchange or market where
         the Common Stock is then traded.

                  (ix) If applicable, take all steps necessary to enable Holders
         to avail themselves of the prospectus delivery mechanism set forth in
         Rule 153 (or successor thereto) under the Act.

                  (x) Upon the effectiveness of the Registration Statement,
         cause any restrictive legend placed on the certificates representing
         Registrable Securities to be removed promptly.

         (b) Set forth below in this Section 2(b) are (I) events that may arise
that the Investors consider will interfere with the full enjoyment of their
rights under the Transaction Documents (the "INTERFERING EVENTS"), and (II)
certain remedies applicable in each of these events.

                  (i) Delay in Effectiveness of Registration Statement.

                           (A) In the event that the Registration Statement has
         not been declared effective within 60 calendar days from the Filing
         Date and provided that such Holder is not able to freely transfer the
         Registrable Securities pursuant to Rule 144(k) of the Act, then the
         Company shall pay to each Holder (in cash or shares of Common Stock,
         at the option of each Holder as provided in Section 2(b)(iv)), a
         default payment for each 30-day period (or portion thereof) that the
         effectiveness of the Registration Statement has not been declared
         effective or failure to issue such unlegended Registrable Securities
         persists, equal to 1% of the value of the outstanding Registrable
         Securities held by such Holder, based upon the Market Price determined
         on the last day of each such 30-day period (a "Default Payment").


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                           (B) If the Registration Statement has not been
                  declared effective within 120 days after the Filing Date and
                  provided that such Holder is not able to freely transfer the
                  Registrable Securities pursuant to Rule 144(k) of the Act,
                  then (x) the Call Options shall become immediately exercisable
                  and (y) each Holder shall have the right to sell at any time
                  after the 150th day after the Closing Date any or all of its
                  Registrable Securities and at the Mandatory Repurchase Price
                  (as defined below). Each Holder shall exercise such right by
                  providing the Company with written notice thereof (the "PUT
                  NOTICE"), which such Put Notice shall include the type and
                  amount of each security that the Holder seeks to repurchase
                  and a date at least five (5) business days from the date
                  thereof on which the Holder seeks the repurchase to occur. The
                  "MANDATORY REPURCHASE PRICE" shall be equal to, with respect
                  to the Registrable Securities to be sold in accordance with
                  this paragraph, (x) the number of such shares multiplied by
                  (y) 115% of the Market Price on the date the Holder acquires
                  the right to require the Company to repurchase the shares or
                  the date upon which the Holder received the shares.

                       (ii) No Listing; Premium Price Redemption for
                  Delisting of Class of Shares.

                           (A) In the event that the Company fails, refuses or
                  is unable to cause the Registrable Securities covered by the
                  Registration Statement to be approved for trading subject to
                  issuance with an Approved Market: (1) at all times during the
                  period ("LISTING PERIOD") commencing the earlier of the
                  effective date of the Registration Statement or the 60th
                  calendar day following the Filing Date, and continuing
                  thereafter for so long as the Call Options are outstanding,
                  then the Company shall pay in cash or Common Stock, as
                  provided in Section 2(b)(i)(A), to each Holder a Default
                  Payment for each 30-day period (or portion thereof) during the
                  Listing Period from and after such failure, refusal or
                  inability to so list the Registrable Securities until the
                  Registrable Securities are so listed and (2) within 30
                  calendar days following the Filing Date, then the Call Options
                  shall become immediately exercisable.

                           (B) In the event that shares of Common Stock of the
                  Company are delisted from, or are no longer approved for
                  trading on, the Approved Market at any time following the
                  Closing Date and remain delisted or not approved for trading
                  for 7 consecutive calendar days, then (1) the Call Options
                  shall become immediately exercisable and (2) at the option of
                  each Holder and to the extent such Holder so elects, the
                  Company shall on 2 business days notice either (x) pay in cash
                  or Common Stock (as provided in Section 2(b)(iv) to such
                  Holder a Default Payment for each 30-day period that the
                  shares are delisted or (y) require the Company to repurchase
                  the Registrable Securities held by such Holder, in whole or in
                  part, at Mandatory Repurchase Price (as defined above);
                  provided, however, that such Holder


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                  may revoke such request at any time prior to receipt of
                  payment of such Default Payments or Mandatory Repurchase
                  Price, as the case may be.

                           (iii) Blackout Periods. In the event any Holder is
                  unable to sell Registrable Securities under the Registration
                  Statement for more than (A) ten (10) consecutive days or (B)
                  an aggregate of thirty (30) days in any 365 day period
                  ("SUSPENSION GRACE PERIOD") including without limitation by
                  reason of a suspension of trading of the Common Stock on the
                  Approved Market, any suspension or stop order with respect to
                  the Registration Statement or the fact that an event has
                  occurred as a result of which the prospectus (including any
                  supplements thereto) included in such Registration Statement
                  then in effect includes an untrue statement of material fact
                  or omits to state a material fact required to be stated
                  therein or necessary to make the statements therein not
                  misleading in light of the circumstances then existing, or the
                  number of shares of Common Stock covered by the Registration
                  Statement is insufficient at such time to make such sales,
                  then the Call Options shall become immediately exercisable. In
                  addition, the Company shall pay in cash or Common Stock (as
                  provided in Section 2(b)(iv)) to each Holder a Default Payment
                  for each 30-day period (or portion thereof) from and after the
                  expiration of the Suspension Grace Period or, in the
                  alternative, at any time following the expiration of the
                  Suspension Grace Period, a Holder shall have the right but not
                  the obligation to have the Company repurchase its Registrable
                  Securities at the price and on the terms set forth in Section
                  2(b)(i)(B) above.

                           (iv) Default Payment Terms; Status of Unpaid Default
                  Payments. All Default Payments (which payments shall be pro
                  rata on a per diem basis for any period of less than 30 days)
                  required to be made in connection with the above provisions
                  shall be paid at any time upon demand, and whether or not a
                  demand is made, by the tenth (10th) day of each calendar month
                  for each partial or full 30-day period occurring prior to that
                  date. Such Default Payments shall be payable in cash or Common
                  Stock, as determined by each Holder in its sole discretion. If
                  the Holder elects to be paid in Common Stock, the Holder shall
                  be entitled to that number of shares of Common Stock, as shall
                  equal to the amount of such Default Payment multiplied by a
                  fraction, the numerator of which is one and the denominator of
                  which is equal to the average of the Market Price for the
                  three (3) business days prior to, but not including, the date
                  upon which such payments are due. Unless the Company shall
                  receive written notice to the contrary from the respective
                  Holder, the Default Payments shall be in cash.

                           (v) Mandatory Repurchase Price for Default. In the
                  event that the Company fails or refuses to pay any Default
                  Payment provided for in the foregoing paragraphs (i) through
                  (iv) when due, (A) the Call Options shall become immediately
                  exercisable and (B) at any Holder's request and option the
                  Company shall purchase all or a portion of the Registrable
                  Securities held


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         by such Holder (with Default Payments accruing through the date of such
         purchase), within five (5) days of such request, at a purchase price
         equal to the Mandatory Repurchase Price; provided that such Holder may
         revoke such request at any time prior to receipt of such payment of
         such purchase price.

                  (vi) Cumulative Remedies. Each Default Payment triggered by an
         Interfering Event provided for in the foregoing paragraphs (i) through
         (iii) shall be in addition to each other Default Payment triggered by
         another Interfering Event; provided, however, that in no event shall
         the Company be obligated to pay to any Holder Default Payments in an
         aggregate amount greater than 1% of the value of the outstanding
         Registrable Securities based upon the Market Price for any 30-day
         period (or portion thereof). The Default Payments, mandatory
         repurchases and the triggering of the ability of the Holders to
         exercise Call Options provided for above are in addition to and not in
         lieu or limitation of any other rights the Holders may have at law, in
         equity or under the terms of the Transaction Documents, including
         without limitation the right to specific performance. Each Holder shall
         be entitled to specific performance of any and all obligations of the
         Company in connection with the registration rights of the Holders
         hereunder.

                  (vii) Certain Acknowledgments. The Company acknowledges that
         any failure, refusal or inability by the Company described in the
         foregoing paragraphs (i) through (iii) and paragraph (v) will cause the
         Holders to suffer damages in an amount that will be difficult to
         ascertain, including without limitation damages resulting from the loss
         of liquidity in the Registrable Securities and the additional
         investment risk in holding the Registrable Securities. Accordingly, the
         parties agree that it is appropriate to include in this Agreement the
         foregoing provisions for Default Payments, mandatory repurchases and
         the triggering of the ability of the Holders to exercise the Call
         Options in order to compensate the Holders for such damages. The
         parties acknowledge and agree that the Default Payments, mandatory
         repurchases and the triggering of ability of the Holders to exercise of
         the Call Options set forth above represent the parties' good faith
         effort to quantify such damages and, as such, agree that the form and
         amount of such Default Payments and mandatory repurchases and the
         triggering of the ability of the Holders to exercise of the Call
         Options are reasonable and will not constitute a penalty. The parties
         agree that the provisions of this clause (vii) consist of certain
         acknowledgments and agreements concerning the remedies of the Holders
         set forth in clauses (i) through (iii) and paragraph (v) of this
         paragraph; nothing in this clause (vii) imposes any additional default
         payments and mandatory repurchases for violations under this Agreement.

         (c) If the Holder(s) intend to distribute the Registrable Securities by
means of an underwriting, the Holder(s) shall so advise the Company. Any such
underwriting may only be administered by investment bankers reasonably
satisfactory to the Company.


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         (d) The Company shall enter into such customary agreements for
secondary offerings (including a customary underwriting agreement with the
underwriter or underwriters, if any) and take all such other reasonable actions
reasonably requested by the Holders in connection therewith in order to expedite
or facilitate the disposition of such Registrable Securities. In the event that
the offering in which the Registrable Securities are to be sold is deemed to be
an underwritten offering or an Investor selling Registrable Securities is deemed
to be an underwriter, the Company shall:

                  (i) make such representations and warranties to the Holders
         and the underwriter or underwriters, if any, in form, substance and
         scope as are customarily made by issuers to underwriters in secondary
         offerings;

                  (ii) cause to be delivered to the sellers of Registrable
         Securities and the underwriter or underwriters, if any, opinions of
         independent counsel to the Company, on and dated as of the effective
         day (or in the case of an underwritten offering, dated the date of
         delivery of any Registrable Securities sold pursuant thereto) of the
         Registration Statement, and within ninety (90) days following the end
         of each fiscal year thereafter, which counsel and opinions (in form,
         scope and substance) shall be reasonably satisfactory to the Holders
         and the underwriter(s), if any, and their counsel and covering, without
         limitation, such matters as the due authorization and issuance of the
         securities being registered and compliance with securities laws by the
         Company in connection with the authorization, issuance and registration
         thereof and other matters that are customarily given to underwriters in
         underwritten offerings, addressed to the Holders and each underwriter,
         if any.

                  (iii) cause to be delivered, immediately prior to the
         effectiveness of the Registration Statement (and, in the case of an
         underwritten offering, at the time of delivery of any Registrable
         Securities sold pursuant thereto), and at the beginning of each fiscal
         year following a year during which the Company's independent certified
         public accountants shall have reviewed any of the Company's books or
         records, a "comfort" letter from the Company's independent certified
         public accountants addressed to the Holders and each underwriter, if
         any, stating that such accountants are independent public accountants
         within the meaning of the Securities Act and the applicable published
         rules and regulations thereunder, and otherwise in customary form and
         covering such financial and accounting matters as are customarily
         covered by letters of the independent certified public accountants
         delivered in connection with secondary offerings; such accountants
         shall have undertaken in each such letter to update the same during
         each such fiscal year in which such books or records are being reviewed
         so that each such letter shall remain current, correct and complete
         throughout such fiscal year; and each such letter and update thereof,
         if any, shall be reasonably satisfactory to the Holders.


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                  (iv) if an underwriting agreement is entered into, the same
         shall include customary indemnification and contribution provisions to
         and from the underwriters and procedures for secondary underwritten
         offerings;

                  (v) deliver such documents and certificates as may be
         reasonably requested by the Holders of the Registrable Securities being
         sold or the managing underwriter or underwriters, if any, to evidence
         compliance with clause (i) above and with any customary conditions
         contained in the underwriting agreement, if any; and

                  (vi) deliver to the Holders on the effective day (or in the
         case of an underwritten offering, dated the date of delivery of any
         Registrable Securities sold pursuant thereto) of the Registration
         Statement, and at the beginning of each fiscal quarter thereafter, a
         certificate in form and substance as shall be reasonably satisfactory
         to the Holders, executed by an executive officer of the Company and to
         the effect that all the representations and warranties of the Company
         contained in the Purchase Agreement are still true and correct except
         as disclosed in such certificate; the Company shall, as to each such
         certificate delivered at the beginning of each fiscal quarter, update
         or cause to be updated each such certificate during such quarter so
         that it shall remain current, complete and correct throughout such
         quarter; and such updates received by the Holders during such quarter,
         if any, shall have been reasonably satisfactory to the Holders.

         (e) The Company shall make available for inspection by the Holders,
representative(s) of all the Holders together, any underwriter participating in
any disposition pursuant to a Registration Statement, and any attorney or
accountant retained by any Holder or underwriter, all financial and other
records customary for purposes of the Holders' due diligence examination of the
Company and review of any Registration Statement, all SEC Documents (as defined
in the Purchase Agreement) filed subsequent to the Closing, pertinent corporate
documents and properties of the Company, and cause the Company's officers,
directors and employees to supply all information reasonably requested by any
such representative, underwriter, attorney or accountant in connection with such
Registration Statement, provided that such parties agree to keep such
information confidential.

         (f) The Company shall file a Registration Statement with respect to any
newly authorized and/or reserved shares within thirty (30) business days of the
authorization or reservation of same and shall use its best efforts to cause
such Registration Statement to become effective within ninety (90) days of such
filing. If the Holders become entitled, pursuant to an event described in clause
(ii) or (iii) of the definition of Registrable Securities, to receive any
securities in respect of Registrable Securities that were already included in a
Registration Statement, subsequent to the date such Registration Statement is
declared effective, and the Company is unable under the securities laws to add
such securities to the then effective Registration Statement, the Company shall
promptly file, in accordance with the procedures set forth herein, an additional
Registration Statement with


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respect to such newly Registrable Securities. The Company shall use its best
efforts to (i) cause any such additional Registration Statement, when filed, to
become effective under the Securities Act, and (ii) keep such additional
Registration Statement effective during the period described in Section 5 below.
All of the registration rights and remedies under this Agreement shall apply to
the registration of such newly reserved shares and such new Registrable
Securities, including without limitation the provisions providing for Default
Payments contained herein.

         3. Expenses of Registration. All Registration Expenses incurred in
connection with any registration, qualification or compliance with registration
pursuant to this Agreement shall be borne by the Company, and all Selling
Expenses of a Holder shall be borne by such Holder.

         4. Registration on Form S-3; Other Forms. If eligible to use Form S-3
or comparable or successor form, the Company shall use such form to register the
Registrable Securities. In the event that the Company is ineligible to use such
form, the Company will use such form as the Company is eligible to use under the
Securities Act.

         5. Registration Period. In the case of the registration effected by the
Company pursuant to this Agreement, the Company will use its best efforts to
keep such registration effective until the earlier to occur of (i) sales are
permitted of all Registrable Securities without registration under Rule 144(k)
or (ii) all Registrable Securities shall have been sold pursuant to such
registration.

         6. Indemnification.

                  (a) The Company Indemnity. The Company will indemnify each
Holder, each of its officers, directors and partners, and each person
controlling each Holder, within the meaning of Section 15 of the Securities Act
and the rules and regulations thereunder with respect to which registration,
qualification or compliance has been effected pursuant to this Agreement, and
each underwriter, if any, and each person who controls, within the meaning of
Section 15 of the Securities Act and the rules and regulations thereunder, any
underwriter, against all claims, losses, damages and liabilities (or actions in
respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any prospectus, offering
circular or other document (including any related registration statement,
notification or the like) incident to any such registration, qualification or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by the Company of the Securities Act or
any state securities law or in either case, any rule or regulation thereunder
applicable to the Company and relating to action or inaction required of the
Company in connection with any such registration, qualification or compliance,
and will reimburse each Holder, each of its officers, directors and partners,
and each person controlling such Holder, each such underwriter and each person
who controls any such underwriter, for any legal and any other expenses
reasonably incurred in connection with investigating and defending any such
claim, loss, damage, liability or action, provided that the Company will not be
liable in any such case to a Holder to the


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extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission based upon written information
furnished to the Company by such Holder or the underwriter (if any) therefor and
stated to be specifically for use therein. The indemnity agreement contained in
this Section 6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent will not be unreasonably withheld).

                  (b) Holder Indemnity. Each Holder will, severally and not
jointly, if Registrable Securities held by it are included in the securities as
to which such registration, qualification or compliance is being effected,
indemnify the Company, each of its directors, officers, partners, and each
underwriter, if any, of the Company's securities covered by such a registration
statement, each person who controls the Company or such underwriter within the
meaning of Section 15 of the Securities Act and the rules and regulations
thereunder, each other Holder (if any), and each of their officers, directors
and partners, and each person controlling such other Holder(s), against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statement therein not misleading, and will reimburse the Company and such other
Holder(s) and their directors, officers and partners, underwriters or control
persons for any legal or any other expenses reasonably incurred in connection
with investigating and defending any such claim, loss, damage, liability or
action, in each case to the extent, but only to the extent, that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is
made in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with written information furnished
to the Company by such Holder and stated to be specifically for use therein, and
provided that the maximum amount for which such Holder shall be liable under
this indemnity shall not exceed the net proceeds received by such Holder from
the sale of the Registrable Securities. The indemnity agreement contained in
this Section 6(b) shall not apply to amounts paid in settlement of any such
claims, losses, damages or liabilities if such settlement is effected without
the consent of such Holder (which consent shall not be unreasonably withheld).

                  (c) Procedure. Each party entitled to indemnification under
this Section 6 (the "INDEMNIFIED PARTY") shall give notice to the party required
to provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim in any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld), and the Indemnified Party
may participate in such defense at such party's expense, and provided further
that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its obligations under this Article
except to the extent that the Indemnifying Party is materially and adversely
affected by such failure to provide notice. No Indemnifying Party, in the
defense of any such claim or litigation, shall, except with the consent of each


                                       12
<PAGE>   13

Indemnified Party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in
connection with the defense of such claim and litigation resulting therefrom.

         7. Contribution. If the indemnification provided for in Section 6
herein is unavailable to the Indemnified Parties in respect of any losses,
claims, damages or liabilities referred to herein (other than by reason of the
exceptions provided therein), then each such Indemnifying Party, in lieu of
indemnifying each of such Indemnified Parties, shall contribute to the amount
paid or payable by each such Indemnified Party as a result of such losses,
claims, damages or liabilities as between the Company on the one hand and any
Holder on the other, in such proportion as is appropriate to reflect the
relative fault of the Company and of such Holder in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative fault of the Company on the one hand and of any Holder on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company or by such
Holder.

         In no event shall the obligation of any Indemnifying Party to
contribute under this Section 7 exceed the amount that such Indemnifying Party
would have been obligated to pay by way of indemnification if the
indemnification provided for under Section 6(a) or 6(b) hereof had been
available under the circumstances.

         The Company and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Holders or the underwriters were treated as one entity
for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraphs. The amount paid or payable by an Indemnified Party as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraphs shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this section, no Holder or underwriter shall
be required to contribute any amount in excess of the amount by which (i) in the
case of any Holder, the net proceeds received by such Holder from the sale of
Registrable Securities or (ii) in the case of an underwriter, the total price at
which the Registrable Securities purchased by it and distributed to the public
were offered to the public exceeds, in any such case, the amount of any damages
that such Holder or underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.


                                       13
<PAGE>   14

         8. Survival. The indemnity and contribution agreements contained in
Sections 6 and 7 and the representations and warranties of the Company referred
to in Section 2(d)(i) shall remain operative and in full force and effect
regardless of (i) any termination of this Agreement, or the underwriting
agreement, (ii) any investigation made by or on behalf of any Indemnified Party
or by or on behalf of the Company, and (iii) the consummation of the sale or
successive resales of the Registrable Securities.

         9. Information by Holders. Each Holder shall reasonably promptly
furnish to the Company such information regarding such Holder and the
distribution and/or sale proposed by such Holder as the Company may reasonably
request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance referred to in this Agreement. The
intended method or methods of disposition and/or sale (Plan of Distribution) of
such securities as so provided by such Investor shall be included without
alteration in the Registration Statement covering the Registrable Securities and
shall not be changed without written consent of such Holder, except that such
Holder may not require an intended method of disposition which violates
applicable securities law.

         10. Transfer or Assignment. Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The rights granted to the Investors by
the Company under this Agreement to cause the Company to register Registrable
Securities may be transferred or assigned (in whole or in part) to a transferee
or assignee of such Registrable Securities; provided that such transfer or
assignment shall be for at least .25% of the shares of Common Stock outstanding
and that the rights granted under this Agreement may not be assigned to a
transferee who has acquired the Registrable Securities from an Investor pursuant
to an effective registration statement and who is not an affiliate (as defined
in the Act) of the Company; further provided in each case that the Company must
be given written notice by the such Investor at the time of or within a
reasonable time after said transfer or assignment, stating the name and address
of said transferee or assignee and identifying the securities with respect to
which such registration rights are being transferred or assigned; and provided
further that the transferee or assignee of such rights agrees in writing to be
bound by the provisions of this Agreement.

         11. Miscellaneous.

                  (a) Remedies. The Company and the Investors acknowledge and
agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof, this being in addition to any other remedy to which
any of them may be entitled by law or equity.

                  (b) Jurisdiction. The Company and each of the Investors (i)
hereby irrevocably submits to the exclusive jurisdiction of the United States
District Court, the New York State courts and other courts of the United States
sitting in New York County, New


                                       14
<PAGE>   15

York for the purposes of any suit, action or proceeding arising out of or
relating to this Agreement and (ii) hereby waives, and agrees not to assert in
any such suit action or proceeding, any claim that it is not personally subject
to the jurisdiction of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. The Company and each of the Investors consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this paragraph shall affect or
limit any right to serve process in any other manner permitted by law.

                  (c) Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing by facsimile, mail or
personal delivery and shall be effective upon actual receipt of such notice. The
addresses for such communications shall be:

                  to the Company:

                           Sunshine Mining and Refining Company
                           5956 Sherry Lane
                           Suite 1621
                           Dallas, Texas 75225
                           Attention: William Davis
                           Facsimile: (214) 265-0324

                  with copies to:

                           Prager, Metzger & Kroemer, PLLC
                           2626 Cole Avenue
                           Suite 900
                           Dallas, Texas 75204
                           Attention: Steven C. Metzger, Esq.
                           Facsimile: (214) 523-3838

                  to the Investors:

                           To each Investor at the address and/or fax number set
                           forth on Schedule I of this Agreement

                  with copies to:

                           Kleinberg, Kaplan, Wolff & Cohen, P.C.
                           551 Fifth Avenue
                           New York, New York 10176
                           Facsimile: (212) 986-8866
                           Attention: Stephen M. Schultz, Esq.


                                       15
<PAGE>   16

         Any party hereto may from time to time change its address for notices
by giving at least 10 days' written notice of such changed address to the other
parties hereto.

                  (d) Indemnity. Each party shall indemnify each other party
against any loss, cost or damages (including reasonable attorney's fees)
incurred as a result of such parties' breach of any representation, warranty,
covenant or agreement in this Agreement and the enforcement of this indemnity.

                  (e) Waivers. No waiver by any party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter. The representations and warranties and
the agreements and covenants of the Company and each Investor contained herein
shall survive the Closing.

                  (f) Execution. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement, it
being understood that all parties need not sign the same counterpart.

                  (g) Publicity. The Company agrees that it will not disclose,
and will not include in any public announcement, the name of any Investor
without its express written approval, unless and until such disclosure is
required by law or applicable regulation, and then only to the extent of such
requirement. The Company agrees to deliver a copy of any public announcement
regarding the matters covered by this Agreement or any agreement or document
executed herewith to each Investor and any public announcement including the
name of an Investor to such Investor, prior to the publication of such
announcements.

                  (h) Entire Agreement. This Agreement and the agreements and
documents contemplated hereby contain the entire understanding and agreement of
the parties, and may not be modified or terminated except by a written agreement
signed by both parties.

                  (i) Governing Law. This Agreement and the validity and
performance of the terms hereof shall be governed by and construed and enforced
in accordance with the internal laws of the State of Delaware applicable to
contracts executed and to be performed entirely in such State.

                  (j) Severability. The parties acknowledge and agree that the
Investors are not agents, affiliates or partners of each other, that all
representations, warranties, covenants and agreements of the Investors hereunder
are several and not joint, that no Investor shall have any responsibility or
liability for the representations, warranties, agreements, acts or omissions of
any other Investor, and that any rights granted to "INVESTORS" hereunder shall
be enforceable by each Investor hereunder.

                  (k) Jury Trial. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL
BY JURY.


                                       16
<PAGE>   17

                  (l) Titles. The titles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

                                   Signature page follows



                                       17
<PAGE>   18

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.



                                       SUNSHINE MINING AND REFINING COMPANY


                                       By:
                                           -------------------------------------
                                            Name:
                                            Title:

                                       INVESTORS:

                                       STONEHILL INSTITUTIONAL PARTNERS, L.P.


                                       By:
                                           -------------------------------------
                                            Name:  John Motulsky
                                            Title: General Partner


                                       STONEHILL OFFSHORE PARTNERS LIMITED
                                            By:  Stonehill Advisors LLC


                                       By:
                                           -------------------------------------
                                            Name:  John Motulsky
                                            Title: Managing Member


                                       ELLIOTT INTERNATIONAL, L.P.
                                            By:  Elliott International Capital
                                                 Advisors, Inc.
                                                 Attorney-in-Fact


                                       By:
                                           -------------------------------------
                                            Name:  Paul E. Singer
                                            Title: President


                                       18
<PAGE>   19

                                       THE LIVERPOOL LIMITED PARTNERSHIP
                                           By:  Liverpool Associates, Ltd.
                                                General Partner


                                       By:
                                           -------------------------------------
                                             Name:  Paul E. Singer
                                             Title: President



             Signature page to Sunshine Mining and Refining Company
                         Registration Rights Agreement


                                       19
<PAGE>   20

                                   SCHEDULE I
                                   INVESTORS


                           Stonehill Institutional Partners, L.P.
                           Stonehill Offshore Partners Limited
                           c/o Stonehill Capital Management LLC
                           126 E. 56th Street, 9th Floor
                           New York, New York  10022
                           Attention:  John Motulsky
                           Facsimile:  (212) 838-2291

with a copy to:

                           Proskauer Rose LLP
                           1585 Broadway
                           New York, New York  10036
                           Attention:  Lawrence Budish, Esq.
                           Facsimile:  (212) 969-2900

                           The Liverpol Limited Partnership
                           Elliott International, L.P.
                           c/o Elliott Management Corporation
                           712 Fifth Avenue
                           New York, New York 10019
                           Attention:  Dan Gropper
                           Facsimile:  (212) 974-2092

with copies to:

                           Kleinberg, Kaplan, Wolff & Cohen, P.C.
                           551 Fifth Avenue, 18th Floor
                           New York, New York 10176
                           Attention:  Lawrence D. Hui, Esq.
                           Facsimile:  (212) 986-8866