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|                                                                        |   |
|-----------------------------------------------------------------------------|--------|
| 1.     DEFINITIONS                                      | 1      |
| 2.     ASSOCIATION OF      PARTICIPANTS                 | 15     |
| 3.     INITIAL OPTION                                   | 18     |
| 4.     ADDITIONAL    OPTION                             | 18     |
| 5.     REPRESENTATIONS, WARRANTIES AND      CONDITIONS  | 19     |
| 6.     EXECUTIVE    COMMITTEE                           | 23     |
| 7.     MEETINGS OF EXECUTIVE      COMMITTEE             | 25     |
| 8.     THE OPERATOR                                     | 27     |
| 9.     EXPLORATION    PERIOD                            | 29     |
| 10.   FEASIBILITY PERIOD                                     | 30     |
| 11.   DEVELOPMENT PERIOD                                     | 31     |
| 12.   OPERATING PERIOD                                       | 33     |
| 13.   PROGRAMS AND BUDGETS                                   | 34     |
| 14.   ADJUSTMENT OFINTERESTS                                 | 37     |
| 15.   DISPOSITION OF    PRODUCTION                           | 40     |
| 16.   AUDIT                                                  | 40     |
| 17.   AREA OF COMMONINTEREST                                 | 41     |
| 18.   SHARING OF AND CONFIDENTIAL NATURE OF      INFORMATION | 42     |
| 19.   LIMITED CHARGING                                       | 42     |
| 20.   RESTRICTIONS ON    ALIENATION                          | 43     |

| 21.   LIABILITY OF THE OPERATOR AND OPERATOR’S      INDEMNITIES | 45 |
|--------------------------------------------------------------------------------------|----|
| 22.   NON-BINDING DISPUTE      RESOLUTION                             | 46 |
| 23.   ENCUMBRANCE, PARTITION AND      INDEMNIFICATION                 | 46 |
| 24.   NOTICES                                                         | 46 |
| 25.   TERMINATION                                                     | 47 |
| 26.   FORCE MAJEURE                                                   | 48 |
| 27.   DEFAULT                                                         | 50 |
| 28.   GENERAL                                                         | 51 |

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| Schedule 1.1(47)  | Fair Market Value             |
|-------------------|-------------------------------|
| Schedule 1.1(68)  | Net Smelter Royalty           |
| Schedule 1.1(86)  | Permitted Encumbrances        |
| Schedule 1.1(90)  | Description of Properties     |
| Schedule 1.1(102) | Underlying Agreements         |
| Schedule 14.7     | Dilution Formula Illustration |
| Schedule 17.1     | Area of CommonInterest        |

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| A. | Paragon      is the legal holder of an undivided 100% title and interest (subject to      the Underlying Agreements, Joint Venture Agreement and Purchase and Sale      Agreement) in the listed interests in the mining claims and associated      assets set out in Schedule 1.1(90) attached hereto (collectively, the      “Properties”); |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Paragon      wishes to grant Crosshair the exclusive right and option to acquire up to      a 70% interest in the Properties;and |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| C. | Paragon      and Crosshair wish to enter into this Agreement in connection with the      exploration and development of the Properties and other related      matters. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | DEFINITIONS |
|----|-------------|

| 1.1 | In      this Agreement and in the Schedules and the recitals hereto, unless the      context otherwise requires, the following expressions will have the      following meanings: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | “Acquiring Participant”      shall have the meaning provided in  section 17.1; |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (2) | “Additional Exploration      Costs” shall have the meaning provided in section    4.1; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (3) | “Additional Option” shall      have the meaning provided in section4.1; |
|--------|-----|-------------------------------------------------------------------------------------|

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|   | (4) | “Additional Properties”      shall have the meaning provided in section 17.2; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (5) | “Agreement” means this      Option and Joint Venture Agreement as it may be amended from time to      time; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (6) | “Applicable Law” means      any applicable domestic or foreign, federal, provincial or local law      including any statute or subordinate legislation or treaty and any      applicable rule, regulation, ordinance, requirement, order, permit,      judgment, injunction, award or decree or other binding requirement of a      Governmental Authority or arbitrator having the force of    law; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | “Area of Common Interest”      means the area on the ground outlined on Schedule 17.1 which extends      two kilometres from the boundaries of the Properties; provided that any      mining claims which would otherwise be within the Area of Common Interest      in which, on the date hereof, Crosshair or Paragon has any interest, or      any right to acquire an interest is excluded from the Area of Common      Interest; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | “Assets” mean the      Properties, Other Tenements, Product, Facilities, Supplies, Contingency      Fund the contents of the Business Account and all other assets acquired or      held by the Participants with respect to such assets or pursuant to this      Agreement as the same may exist from time to  time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | “Associated Company”      means: |
|--------|-----|----------------------------------------------|

|   | (a) | any      corporation which owns directly or through any other means not less than      50% of the outstanding capital stock of a  Participant; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      corporation of which a Participant owns directly or through any other      means not less than 50% of the outstanding capital stock; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      corporation of which either of the corporations referred to in      paragraphs (a) and (b) owns directly or through any other means not      less than 50% of the outstanding capitalstock. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | “Auditing      Participant” shall have the      meaning provided insection 16.2; |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | (11) | “Auditor” means an      independent firm of chartered accountants appointed as the auditor of the      Joint Venture by the ExecutiveCommittee; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | “Budget” means, in      respect of any Program, a detailed budget document which shall stipulate      all Costs and other estimated monthly and cumulative cash expenditures for      such Program and which is approved by the Executive Committee and such      budget document as amended and approved by the Executive Committee from      time to time; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | “Business” means the      contractual relationship of the Participants under this      Agreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------|

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|   | (14) | “Business Account” shall      have the meaning provided insection 13.10; |
|--------|------|-------------------------------------------------------------------------------------------|

|   | (15) | “Canadian GAAP” means      Canadian generally accepted accounting principles consistently applied and      shall be deemed to mean International Financial reporting Standards      (“IFRS”) to the extent that IFRS replace Canadian GAAP during the term of      this Agreement; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | “Chairman” means the      person appointed, from time to time, to be chairman of the Executive      Committee pursuant tosection 6.4; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | “Change of Control”      means, in respect of any corporation,either: |
|--------|------|-----------------------------------------------------------------------------------|

|   | (a) | a      transaction: |
|--------|-----|---------------------|

|   | (i) | the      effect of which is that a person or combination of persons acting in      concert becomes the holder of more than 50% of the shares in the capital      stock of such corporation which carry a voting right either under all      circumstances or under certain circumstances that have occurred and are      continuing; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | such      person or combination of persons did not previously hold such number of      shares; or |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | (b) | a      merger, arrangement, share exchange, take-over bid or other similar      transaction resulting in the shareholders of a corporation or other entity      holding less than 50% of such corporation’s aggregate issued and      outstanding shares which carry a voting right either under all      circumstances or under certain circumstances that have occurred and are      continuing to occur; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | “Chargee” shall have the      meaning provided insection 19.1. |
|--------|------|---------------------------------------------------------------------------------|

|   | (19) | “CIM Val” means the      Standards and Guidelines For Valuation of Mining Properties of the Special      Committee of the Canadian Institute of Mines, Metallurgy and Petroleum on      Valuation of Mineral Properties; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (20) | “Commercial Production”      means the commercial exploitation of Ore but does not include milling for      the purpose of testing or milling by a pilot plant or during the initial      tune-up period of a plant.  Commercial Production will be deemed      to have commenced: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if      a plant is located on the Properties, on the first day of the month      following the first period of 30 consecutive days during which Ore has      been processed through such plant at an average rate of not less than 60%      of the milling rate specified in the Full Feasibility Study recommending      placing the Properties into Commercial Production;  or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | if      no plant is located on the Properties, on the first day of the month      following the first period of 30 consecutive days during which Ore has      been shipped from the Properties on a commercially reasonably regular      basis for the purpose of earningrevenue; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (21) | “Contingency Fund” means      the fund which will be established by the Operator pursuant to      section 12.3, the moneys in which will be used to satisfy all legal      obligations of the Operator in connection with the permanent or temporary      shutdown in whole or in part of any of the Facilities on the Properties;      including, without limitation, posting any reclamation bonds or deposits      required by any Governmental Authority, all anticipated costs of      Environmental Compliance and dealing with any Environmental Liabilities      and Continuing Obligations, and any obligation for severance pay, pensions      and similar payments to employees and all of which obligations are to be      recognized in the accounts of theOperator; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (22) | “Continuing Obligations”      mean obligations or responsibilities that are reasonably expected to      continue or arise after Operations on a particular area of the Properties      have ceased or are suspended, such as future monitoring, stabilization, or      Environmental Compliance; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (23) | “Contributing Budget”      means any Program and Budget (including any revision or amendments      thereto) in respect of which each Participant has an obligation to fund      its Cost Share pursuant to thisAgreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (24) | “Contributing      Participant” shall have the meaning provided in      section 13.9; |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | (25) | “Cost Share” means the      respective share of Costs and other liabilities to be borne by each      Participant in respect of the Properties in accordance with the terms of      this Agreement and, except as otherwise provided herein, will be      proportionate to the respective Interests of each Participant as      determined from time to time; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (26) | “Costs” means Exploration      Costs, Feasibility Costs, Development Costs and Operating Costs, as      applicable; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

|   | (27) | “Crosshair Shares” means      common shares in the capital ofCrosshair; |
|--------|------|-------------------------------------------------------------------------------------|

|   | (28) | “Development Costs” means      the sum of adding (A) the aggregate amount of all direct costs, outlays      and expenses of whatever kind or nature spent or incurred by the      Participants in accordance with all Programs and Budgets during the      Development Period in order to prepare the Properties (or any portion      thereof) for Commercial Production; including, without limitation, all      insurance costs, all permitting costs, costs associated with      rehabilitation including, without limitation, reclamation funds and other      costs associated with compliance with Environmental Laws, all associated,      non-recoverable sales taxes, the reasonable costs incurred by      representatives of the Participants in attending meetings of the Executive      Committee during the Development Period, an amount equal to the estimated      working capital required for the two months immediately following      achievement of Commercial Production and contributions to the Contingency      Fund required by |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (29) | “Development Decision”      means a decision made by the Executive Committee, based on the Full      Feasibility Study, to proceed with the development of a mine on the      Properties or a portion thereof; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (30) | “Development Finance”      means the financing arrangements required to fund the Development      Costs; |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (31) | “Development Finance      Expense” means, for any period, in respect of each Participant, the      sum of all principal, interest, fees and other costs associated with the      Development Finance obtained by such Participant which is payable by such      Participant to the lender of such Development Finance in respect of such      period; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (32) | “Development Finance      Notice” shall have the meaning provided in      section 11.5; |
|--------|------|----------------------------------------------------------------------------------------------------------|

|   | (33) | “Development Period”      means the period commencing when a Development Decision has been made and      ending upon the commencement of Commercial  Production; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (34) | “Diluted Participant”      shall have the meaning provided in  section 14.1; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (35) | “Diluted Participant’s      Interest” shall have the meaning provided in      section 14.1; |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (36) | “Effective Date” means      April 8, 2009; |
|--------|------|--------------------------------------------------------|

|   | (37) | “Eligible Matter” means,      in respect of matters considered by the Executive Committee, those matters      that arise from a dispute between the Participants other than in respect      of one Participant being out-voted upon any motion considered by the      Executive Committee; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (38) | “Encumbrances” means all      interests, mortgages, charges, royalties, security interests, liens,      encumbrances, actions, claims, demands and equities of any nature      whatsoever or however arising and any rights or privileges capable of      becoming any of the foregoing; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (39) | “Environmental      Compliance” means actions performed during or after Operations to      comply with the requirements of all Environmental Laws or contractual      commitments related to reclamation of the Properties or other compliance      with Environmental Laws; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (40) | “Environmental Laws”      means all applicable federal, provincial, municipal and local laws,      statutes, ordinances, by-laws, regulations, orders, directives and      decisions, rendered by any Governmental Authority relating to the      protection of the environment, or the control of pollutants, contaminants,      chemicals, or industrial, toxic or hazardous wastes or      substances; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (41) | “Environmental      Liabilities” means any and all claims, actions, causes of action,      damages, losses, liabilities, obligations, penalties, judgments, amounts      paid in settlement, assessments, costs, disbursements, or expenses      (including, without limitation, attorneys’ fees and costs, experts’ fees      and costs, and consultants’ fees and costs) of any kind or of any nature      whatsoever that are asserted against any Participant, by any person or      entity other than the other Participants, alleging liability (including,      without limitation, liability for studies, testing or investigatory costs,      cleanup costs, response costs, removal costs, remediation costs,      containment costs, restoration costs, corrective action damages, business      losses, personal injuries, penalties or fines) arising out of based on or      resulting from (i) the presence, release, threatened release,      discharge or emission into the environment of any hazardous materials or      substances existing or arising on, beneath or above the Properties and/or      emanating or migrating and/or threatening to emanate or migrate from the      Properties to off-site properties; (ii) physical disturbance of the      environment; or (iii) the violation or alleged violation of any      Environmental Laws; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (42) | “Executive Committee”      means the committee formed pursuant to section 6 to supervise the      activities on the Properties; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (43) | “Expansion” means, at any      time, as the context requires either (i) an increase in excess of 10%      in the Stated Capacity of all Facilities on the Properties which, as of      such time, have entered into Commercial Production, or (ii) the      opening and equipping of any additional Facility on the      Properties; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (44) | “Exploration Costs” means      the sum of adding (A) the aggregate amount of all direct costs,      outlays and expenses of whatever kind or nature spent or incurred by the      Operator in accordance with all Programs and Budgets, in connection with      the exploration of the Properties in the Exploration Period including      without limitation, moneys expended in maintaining the Properties in good      standing and costs incurred in connection with complying with      Environmental Laws, all costs relating to the securing of good relations      with communities in the area surrounding the Properties, including,      without limitation, all costs associated with the negotiation and      implementation of any impact and benefit agreement or access agreement and      any services provided in aid of consultation between aboriginal people and      Governmental Authorities relating to Operations, all insurance costs,      moneys expended in doing and filing assessment work, expenses paid for or      incurred in connection with any program of surface or underground      prospecting, exploring, geophysical, geochemical and geological surveying,      drilling, drifting, raising and other underground work, assaying and      engineering, bulk sampling, environmental studies, data preparation and      analysis, submissions to |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (45) | “Exploration Period”      means the period commencing on the Effective Date and ending on the      Feasibility Date; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (46) | “Facilities” means all      mines and plants including, without limitation, all pits, shafts, haulage      ways and other underground workings, and all buildings, plants and other      structures, fixtures and improvements, mobile equipment, stores of a      capital and consumable nature, and all other property, whether fixed or      moveable, as the same may exist at any time, in or on the Properties or      outside the Properties if it materially benefits the      Properties; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (47) | “Fair Market Value” shall      have the meaning set out in  Schedule 1.1(47); |
|--------|------|------------------------------------------------------------------------------------------------|

|   | (48) | “Feasibility Costs” means      the sum of adding (A) the aggregate amount of all direct costs, outlays      and expenses of whatever kind or nature spent or incurred by the Operator      in accordance with all Programs and Budgets in connection with the      production of a Full Feasibility Study including, without limitation, all      costs, outlays and expenses of whatever kind or nature spent or incurred      in preparation of the Full Feasibility Study during the Feasibility      Period, and (B) an amount in respect of Indirect Costs equal to 8% of all      direct Feasibility Costs which are incurred by the Operator during the      Feasibility Period; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (49) | “Feasibility Date” means      the date the Executive Committee determines to commence the preparation of      the Full Feasibility Study in accordance with    section 6; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (50) | “Feasibility Period”      means the period commencing on the Feasibility Date and ending on the date      on which the Executive Committee make a Development    Decision; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (51) | “Fiscal Year” means the      period commencing on May 1 of each year and ending on the next succeeding      April 30; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (52) | “Full Feasibility Study”      means a comprehensive study approved by the Executive Committee in      accordance with this Agreement that covers all material aspects of a      proposed Program and Budget to investigate the technical and economic      viability of commencing Commercial Production on the Properties,      or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | is      sufficiently detailed in content and presented in a form that would be      normally acceptable to a provider of development finance as a basis for      providing the Development Finance on commercially reasonable      terms; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | is      based on work conducted in accordance with the Program and      Budget; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (c) | is      based on appropriate sampling programmes and provides estimates of the      tonnes and grade of proven and probable Ore reserves and resources      expressed on both a mineable and recoverable  basis; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | provides      details of all technical or other work and analysis on which the study is      based including but not limited to geological, geotechnical, hydrological,      metallurgical, processing, mining, survey, waste disposal, power and water      requirements; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | includes      studies of environmental, archaeological, social, cultural, community and      aboriginal title and treaty impacts of sufficient detail to be acceptable      to the relevant authorities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | sets      out the details of and analyses the security and adequacy of tenure and      ownership; |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (g) | includes      a study and analysis of relevant infrastructure, infrastructure access,      ore beneficiation, waste disposal, product price forecasting and financial      aspects; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | includes      sufficient details of official arrangements for the purchase of all      Product as to be acceptable to a provider of Development      Finance; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | plans      for and provides a Budget for the implementation of Commercial Production      and includes but is not limited to a schedule  of: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | relevant      government, statutory and any other approval necessary;  and |
|--------|-----|----------------------------------------------------------------------------|

|   | (ii) | activities,      resources personnel, equipment, materials etc. and      expenditures; |
|--------|------|----------------------------------------------------------------------------------------|

|   | (j) | includes      estimates of both capital and operating costs likely to be incurred in      establishing and conducting development and operations, including costs to      be incurred in development, construction, pre-production, mining, crushing      and treatment or other beneficiation, as the case may be, and all working      capital requirements; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (k) | analyses      how to proceed with development and operations to economically and      commercially maximize the return on funds invested on the assumption that      the Properties will be funded solely on an equity  basis; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | includes      a financial model for, and states the commercial viability, including risk      and sensitivity analysis of the proposed development and operations on the      assumption that the Properties will be funded solely on an equity      basis; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | is      of such detail and scope as to be acceptable to any Governmental Authority      to which reports must be provided or applications must be      made; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | contemplates      and identifies additional resources, any potential further project      expansion and/or exploration potential (if  applicable); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | includes      estimates of further exploration costs for ongoing exploration of the      Properties both during the Feasibility Period and Development Period and      after the commencement of Commercial Production within and outside the      boundaries of the Subject Area; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | includes      a description of that part of the Properties to be covered by the proposed      mine contemplated in the Full FeasibilityStudy; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | is      prepared or independently reviewed by an internationally recognized and      mutually agreed to engineeringfirm; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (r) | includes      estimates of all ongoing capital costs such as the purchase and      replacement of equipment, tailings dam replacements and items of a similar      nature; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (53) | “Governmental Authority”      means any domestic or foreign, federal, provincial, municipal or local      legislative, executive, judicial or administrative body or person having      jurisdiction in the relevantcircumstances; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (54) | “Gross Revenue” in      respect of any period shall mean the sum of adding (A) gross receipts      from sale of Product, less any charges for sampling, assaying, or      penalties for such period; (B) gross receipts from the sale or other      disposition of Assets for such period; (C) insurance proceeds for      such period; (D) compensation for expropriation of Assets for such      period; and (E) judgment proceeds for such  period. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (55) | “Independent Valuator”      has the meaning provided in  Schedule 1.1(47); |
|--------|------|---------------------------------------------------------------------------------------------|

|   | (56) | “Indirect Costs” means      all costs incurred by the Operator associated with secretarial support,      offices and facilities, selected field support equipment, accounting      services, computers, administration, health and safety, legal      support, |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (57) | “Indemnified Participant”      has the meaning set out insection 5.4; |
|--------|------|----------------------------------------------------------------------------------------|

|   | (58) | “Indemnifying      Participant” has the meaning set out in      section 5.4; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (59) | “Initial Deemed      Investment” means the sum of      $2.3 Million; |
|--------|------|---------------------------------------------------------------------------------------|

|   | (60) | “Initial Exploration      Costs” has the meaning set out in section  3.3; |
|--------|------|---------------------------------------------------------------------------------------|

|   | (61) | “Initial Option” has the      meaning set out in section 3.2; |
|--------|------|---------------------------------------------------------------------------|

|   | (62) | “Interest” means, at any      time, the undivided beneficial percentage interest representing the      ownership interest of a Participant in the Assets, at such time and all      other rights and obligations arising under this Agreement, as such      interest may from time to time be adjusted      hereunder.  Participating Interests shall be calculated to three      decimal places and rounded to two decimal places as      follows:  Decimals of .005 or more shall be rounded up (e.g.,      1.519% to 1.52%); decimals of less than .005 shall be rounded down (e.g.,      1,514% rounded to 1.51%). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (63) | “Intervening Event” shall      have the meaning provided insection 26.1; |
|--------|------|-------------------------------------------------------------------------------------------|

|   | (64) | “Joint Venture” means the      joint venture created pursuant to this  Agreement; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (65) | “Joint Venture Agreement”      means the May 1, 2006 Golden Promise Property Agreement between Rubicon      Minerals Corporation and Crosshair, as amended on April 18, 2008, as      assigned from Rubicon Minerals Corporation to Paragon effective December      8, 2006; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (66) | “Material Loss” has the      meaning set out insection 5.4; |
|--------|------|------------------------------------------------------------------------------|

|   | (67) | “Net Cash Flow” for any      period means the sum of adding: |
|--------|------|--------------------------------------------------------------------------|

|   | (a) | cash      and cash equivalents of the Joint Venture (which for the avoidance of      doubt includes any overdrafts) at the beginning of such period;      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      difference resulting from thesubtracting: |
|--------|-----|----------------------------------------------------|

|   | (i) | Operating      Costs paid during such period, from |
|--------|-----|----------------------------------------------------|

|   | (ii) | Gross      Revenue received during suchperiod; |
|--------|------|------------------------------------------------|

|   | (68) | “Net Smelter Royalty”      shall have the meaning set out in Schedule 1.1(68) attached      hereto; |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (69) | “Non-Acquiring      Participant” shall have the meaning provided in      section 17.1; |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | (70) | “Non-Approving      Participant” shall have the meaning provided in      section 6.9; |
|--------|------|--------------------------------------------------------------------------------------------------------|

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|   | (71) | “Non-Contributing      Participant” shall have the meaning provided in      section 13.9; |
|--------|------|------------------------------------------------------------------------------------------------------------|

|   | (72) | “Offer” shall have the      meaning provided insection 20.4; |
|--------|------|-------------------------------------------------------------------------------|

|   | (73) | “Offeror” shall have the      meaning provided insection 20.3; |
|--------|------|---------------------------------------------------------------------------------|

|   | (74) | “Offeree” shall have the      meaning provided insection 20.3; |
|--------|------|---------------------------------------------------------------------------------|

|   | (75) | “Operations” means the      activities carried out under thisAgreement; |
|--------|------|-------------------------------------------------------------------------------------|

|   | (76) | “Operating Costs” means,      for any period after commencement of Commercial Production, the result of      subtracting the sum of (a) and the sum of (b) from the sum of      (c): |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all      direct costs, outlays and expenses of whatsoever kind or nature actually      incurred or chargeable directly by the Operator in connection with the      operation of the Properties as a mine during such period, which costs,      expenses, obligations, liabilities and charges include, without      duplication and without limitation, the  following: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | all      costs of or related to the mining and processing of the Ore and the      operation of the Facilities and all costs of or related to the Product,      including marketing, transportation, commissions and/or discounts at rates      which are normal and customary in theindustry; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | all      costs and expenses of replacing, expanding, modifying, altering or      changing from time to time the Facilities.  Costs and expenses      of improvements (such as haulage ways or mill facilities) that are also      used in connection with workings other than the Properties shall be      charged to the Properties only in the proportion that their use in      connection with the Properties bears to their total  use; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | such      amount of cash for working capital as is required for the operation of the      Properties as a mine pursuant to  section 13.11; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | all      costs of or related to operating employee facilities, including      housing; |
|--------|------|----------------------------------------------------------------------------------------|

|   | (v) | all      duties, charges, levies, royalties, interests, taxes (excluding taxes      levied on the income of the Participants) applicable to mining of the      Properties, including, without limitation, all provincial mining taxes,      non-recoverable sales taxes, severance taxes, licence fees and      governmental levies of a similar nature, and other payments imposed by any      Governmental Authority upon or in connection with operating the Properties      as a mine or which are paid or payable to any local groups including as      benefits to be |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (vi) | fees,      wages, salaries, travelling expenses and fringe benefits (whether or not      required by law) of all persons directly engaged in respect of and for the      benefit of the Properties and all costs involved in paying for the food,      lodging and other reasonable needs of such  persons; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | all      costs of consulting, legal, accounting, insurance and other services      incurred by the Operator and directly related to the operation of the      Facilities; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | all      approved exploration expenditures incurred with respect to the Properties      after commencement of Commercial Production from a mine on the Properties      including both exploration within the area of such mine and outside the      area of such mine; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | all      annual capital costs for the normal efficient operation of the Properties      as a mine including, without limitation, all costs of construction,      equipment and mine development including maintenance, repairs and      replacements and all costs, including capital costs, associated with an      Expansion; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | all      costs in connection with or as a result of Environmental Laws incurred by      the Operator; |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (xi) | any      costs or expenses incurred by the Operator relating to the termination of      the operation of the Properties as a mine, including all contributions to      the Contingency Fund pursuant to  section 12.3; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | the      reasonable costs incurred by the representatives of the Participants      attending meetings of the ExecutiveCommittee; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | allowance      for overhead; |
|--------|--------|------------------------------|

|   | (xiv) | all      amounts payable to the Participants during  mining; |
|--------|-------|--------------------------------------------------------------|

|   | (xv) | interest      on monies borrowed or advanced for costs and expenses, but in no event in      excess of the maximum permitted bylaw; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (xvi) | costs      of funding the Contingency Fund as provided in section 12.3;      and |
|--------|-------|---------------------------------------------------------------------------------------|

|   | (xvii) | rental,      royalty, production, and purchasepayments. |
|--------|--------|---------------------------------------------------------|

----

|   | (b) | an      amount in respect of Indirect Costs equal to 2.5% of all direct Operating      Costs which are incurred by the Operator during the Operating      Period. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      amount of all insurance recoveries and settlements received during such      period to the extent such recoveries and settlements were not deducted in      any previous period; provided that, except where specific provision is      made otherwise, all Operating Costs will be determined in accordance with      Canadian GAAP but such costs shall not include any amount in respect of      amortization of Costs, depletion or  depreciation; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (77) | “Operating Period” means      the period commencing on the date on which Commercial Production is      commenced on the Properties or a portion thereof and terminating upon the      termination of such CommercialProduction; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (78) | “Operator” means the      Participant acting as Operator with respect to the Properties pursuant to      this Agreement and the “Non-Operator” means any      Participant that is not the Operator at any given  time; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (79) | “Ore” means all minerals      from the Properties, the nature and composition of which provides economic      justification for mining or removing from place and shipping and selling      such material, or delivering such material to a plant for further      processing; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (80) | “Other Tenements” means      all surface rights of and to any lands within or outside the Properties      including surface rights held in fee or under lease, licence, easement,      right of way or other rights of any kind (and all renewals, extensions and      amendments thereof or substitutions therefor) acquired by or on behalf of      the Participants with respect to theProperties; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (81) | “Overruns” means, in      respect of any Budget, all Costs which exceed those estimated under such      Budget; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (82) | “Participant” means      either of Crosshair or Paragon and their successors and permitted assigns      and any other entity which becomes a party to this Agreement pursuant to      section 20 and the successors and permitted assigns thereof that may      own an Interest from time to time, as the case may be, and “Participants” means      together Crosshair, Paragon, any such additional Participant and their      successors and permitted assigns, as the case may  be; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (83) | “Participants’ Net Cash      Flow” has the meaning provided in    section 12.4(6); |
|--------|------|-----------------------------------------------------------------------------------------------------------|

|   | (84) | “Parties” means Crosshair      and Paragon; |
|--------|------|---------------------------------------------------------|

|   | (85) | “Periods” means      collectively the Exploration Period, the Development Period and the      Feasibility Period; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------|

----

|   | (86) | “Permitted Encumbrances”      means the Encumbrances described on Schedule  1.1(86); |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | (87) | “Product” means Ore at      its highest stage of processing as effected by or on behalf of the Joint      Venture constituted with respect to the  Properties; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (88) | “Program” means a      document approved by the Executive Committee outlining the work proposed      to be carried out during a given period oftime; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (89) | “Program/Budget Phase”      shall have the meaning provided in  section 13.1; |
|--------|------|------------------------------------------------------------------------------------------------|

|   | (90) | “Properties” means,      collectively, the mining claims described in      Schedule 1.1(90); |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | (91) | “Purchase and Sale      Agreement” means the Purchase and Sale Agreement between Gemini      Metals Corp., Crosshair and Paragon dated June 4th,  2008; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (92) | “Recommendation” means      the recommendation of Crosshair to the Executive Committee based on the      results of and delivered with a Full Feasibility Study  to: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | proceed      to develop a mine on a SubjectArea; |
|--------|-----|--------------------------------------------------|

|   | (b) | postpone,      delay or abandon development of such a mine;or |
|--------|-----|---------------------------------------------------------------|

|   | (c) | undertake      or continue further work to provide further information as a basis for the      Full Feasibility Study; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (93) | “Remaining Participant”      shall have the meaning provided in  section 14.1; |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | (94) | “Revenue” means cash      received from the sale of theProduct; |
|--------|------|-----------------------------------------------------------------------------|

|   | (95) | “Rights” shall have the      meaning provided insection 20.1; |
|--------|------|--------------------------------------------------------------------------------|

|   | (96) | “Stated Capacity” shall      have the meaning provided in the Full Feasibility  Study; |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | (97) | “Subject Area” means the      portion of the Properties covered by a Full Feasibility Study which shall      include sufficient area for all Facilities and rights of access and which      for the avoidance of doubt will have boundaries in three dimensions      including boundaries indicating the depth of such portion of the      Properties; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (98) | “Supplies” means all      tangible personal property of a non-capital nature (other than Product or      Facilities) acquired or held by the Participants with respect to a      Properties; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (99) | “Transfer” shall have the      meaning provided insection 20.1; |
|--------|------|----------------------------------------------------------------------------------|

|   | (100) | “Transferee” shall have      the meaning provided in  section 20.2; |
|--------|-------|--------------------------------------------------------------------------------------|

|   | (101) | “Transferor” shall have      the meaning provided in  section 20.1; |
|--------|-------|--------------------------------------------------------------------------------------|

----

|   | (102) | “Underlying Agreements”      means the agreements with various optionors relating to Crosshair and      Paragon’s interests in the Properties described in Schedule 1.1(102);      and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (103) | “Vesting Time” means the date on      which Crosshair earns a 60% Interest pursuant to      section 3.2. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Interpretation      in this Agreement, unless something in the subject matter or context is      inconsistent therewith: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (1) | “this Agreement” means      this agreement as it may from time to time be supplemented or amended and      in effect and includes the scheduleshereto; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | all      references in this Agreement to “Articles”, “sections” and other      subdivisions or Schedules are to the designated articles, sections or      other subdivisions or Schedules of or attached to this      Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | the      words “herein”,      “hereof” and      “hereunder” and      other words of similar import refer to this Agreement as a whole and not      to any particular section or othersubdivision; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | the      headings are for convenience only and do not form part of this Agreement      and are not intended to interpret, define or limit the scope, extent or      intent of this Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | the      singular of any term includes the plural, and vice versa, the use of any      term is equally applicable to any gender and, where applicable, a body      corporate, the word “or” is not exclusive and      the word “including” is not      limiting (whether or not non-limiting language is used with reference      thereto); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | the      words “written” or      “in writing”      include printing, typewriting or any electronic means of communication      capable of being visibly reproduced at the point of reception including      telex, telegraph or telecopy; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | any      reference to a statute is a reference to the applicable statute and to any      regulations made pursuant thereto and includes all amendments made thereto      and in force from time to time and any statute or regulation that has the      effect of supplementing or superseding such statute or      regulation; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | all      accounting terms not defined in this Agreement have those meanings      generally ascribed to them in accordance with Canadian GAAP;      and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | a      “day” shall refer      to a calendar day and in calculating all time periods the first day of a      period is not included and the last day is included and references to a      “business day”      shall refer to days on which banks are ordinarily open for business in      Vancouver, British Columbia, but if a period ends on a day on which the      banks are not open for business in Vancouver, British Columbia, the      period |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | ASSOCIATION OF      PARTICIPANTS |
|----|----------------------------------|

| 2.1 | Paragon      hereby grants to Crosshair the exclusive right and option to acquire up to      70% Interest (which Interest may be adjusted to a lesser or greater      Interest as set out in this Agreement) in the Assets, free and clear of      all Encumbrances other than the Permitted Encumbrances, in accordance with      the terms of this Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      participants are hereby associated for the following limited functions and      purposes: |
|-----|----------------------------------------------------------------------------------------------------|

|   | (1) | to      explore and, if deemed warranted as herein provided, to develop the      Properties and develop all or any part thereof for Commercial      Production; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | to      operate the Properties as one or more mines;and |
|--------|-----|---------------------------------------------------------|

|   | (3) | to      engage in such other activities as may be considered by the Participants      to be necessary or desirable in connection with the    foregoing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | All      transactions, contracts, employments, purchases, operations, negotiations      with any person and any other matter or act undertaken on behalf of the      Participants in connection with the Assets will be done, transacted,      undertaken or performed in the name of the Operator only and no      Participant will do, transact, perform or undertake anything in the name      of the Operator or any other Participant or in the joint names of the      Participants except as expressly stipulated in this    Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Except      as otherwise expressly stipulated in this Agreement, the rights and      obligations of the Participants will be, in each case, several, and will      not be or be construed to be either joint or joint and      several.  Nothing contained in this Agreement will, except to      the extent specifically authorized hereunder, be deemed to constitute a      Participant a partner, an agent or legal representative of the other      Participants.  It is intended that this Agreement will not      create the relationship of a partnership among the Participants and that      no act done by any Participant pursuant to the provisions hereof will      operate to create such arelationship. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Each      of the Participants will devote such efforts and resources as maybe      required to fulfil any obligation assumed by them      hereunder.  Except as specifically provided      hereunder: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | each      Participant will be at liberty to engage, for its own account and without      duty to account to the other Participants, in any other business or      activity outside the subject matter of this Agreement, including, without      limitation, the ownership and operation of any other mining permits,      licences, claims and leases wherever located except in the Properties or      the Area of Common Interest; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | no      Participant will be under any fiduciary or other duty or obligation to the      other Participant which will prevent or impede such Participant from      participating in, or enjoying the benefits of competing endeavours of a      nature similar to the Business |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | the      legal doctrines of “corporate opportunity”      or “business      opportunity” sometimes applied to persons occupying a relationship      similar to that of the Participants as contemplated in this Agreement will      not apply to any business activities or endeavours of one of the      Participants carried on with respect to lands located outside of the      Properties and the Area of Common Interest, and that does not relate to      the Joint Venture, and, without limitation, a Participant will not be      accountable to the other Participants for participation in any such      business activity or endeavour outside the subject matter of this      Agreement which is in direct competition with the business activities or      endeavours undertaken by the JointVenture. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6 | Any  rebate      of taxes, fees or other payments by a Governmental Authority and any      credits granted by any Governmental Authority in respect of such taxes,      fees or other payments, shall be entirely to the credit of Crosshair at      any time that Crosshair is self-funding the Operations but shall be shared      to the credit of Crosshair and Paragon in accordance with their respective      Interests at any time that the Participants are sharing funding of the      Operations; provided that such Interests shall be calculated for purposes      of determination of the allocation of such rebates, credits, or proceeds      at any time that the Participants are sharing funding of the Operations      after any change in such Interests which results from one Participant not      funding its share of any Budget after such change of    Interest. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.7 | Each      Participant shall, from time to time, take all necessary actions,      including execution of appropriate agreements, to pledge and subordinate      its Interest, any hypothecs, liens or security interests it may hold which      are created under this Agreement, and any other right or interest it holds      with respect to the Assets (other than any statutory lien of the Operator)      to any secured borrowings for Operations approved by the Executive      Committee. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.8 | Subject      to Section 2.6, each Participant, in proportion to its Interest, from time      to time: |
|-----|-------------------------------------------------------------------------------------------------------|

|   | (1) | will      own its share of all Product to be disposed of pursuant to      section 15; and |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (2) | will      severally bear all expenditures, debts, losses (including capital losses),      obligations and liabilities of the Joint  Venture. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9 | Each      Participant expressly waives every right which it may have to call for the      partition or transfer of any of theAssets. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| 2.10 | Paragon      shall be the registered holder of the Properties until the Vesting Time.      At the Vesting Time, Paragon will cause the Properties to be recorded in      Crosshair’s name in trust for the Participants in proportion to their      respective Interests. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.11 | Except      as otherwise provided in this Agreement, the Assets are owned by the      Participants in undivided shares as tenants in common in proportion to      their respective Interests. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.12 | If,      at any time, any of the Assets are not owned by the Participants in      proportion to their respective Interests but are owned by one of the      Participants, the Participant that owns those Assets must hold those      respective Assets for the use and benefit of the Participants in      proportion to their Interests and, if determined by the Executive      Committee, must (at the expense of the Participants in proportion to their      respective Interests) take all such steps as may be necessary to vest      those Assets in the Participants in proportion to their respective      Interests. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.13 | All      property (real or personal) held, developed, constructed or acquired under      this Agreement by or on behalf of the Operator for or on behalf of the      Participants, or any of them, will be Assets.  The Operator will      not have any interest in any of the Assets or in any money collected by      the Operator for the Participants except as the trustee of the      Participants. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.14 | Assets      other than the Properties may be held by the Operator as nominee for the      Participants as tenants in common in proportion to their respective      Interests. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.15 | As      far as reasonably practical, all contracts entered into by the Operator      with third parties in respect of the Joint Venture shall specify that the      Operator is acting as agent for the Participants involved in an      unincorporated joint venture comprising the Participants the liabilities      of which are several in proportion to their respective      Interests. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.16 | Upon      the Effective Date of this Agreement, the Joint Venture Agreement and      Purchase and Sale Agreement shall be terminated.  Crosshair      shall cause Gemini Metals Corp. to execute and deliver to Paragon, an      acknowledgement that the Purchase and Sale Agreement is terminated as of      the Effective Date. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | INITIAL OPTION |
|----|----------------|

| 3.1 | The      Participants will each have such Interest as is determined from time to      time in accordance with thisAgreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | In      order for Crosshair to acquire a 60% Interest (the “Initial Option”) it      shall, within 30 days of the Effective Date issue 2,655,000 Crosshair      Shares to Paragon and upon issuance of such Crosshair Shares, Crosshair      shall earn a 60% Interest and Paragon shall have its Interest reduced to      40% and the Joint Venture between Paragon and Crosshair will be      formed. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Crosshair      shall use its commercially reasonable efforts to incur a minimum of      $2,000,000 in Exploration Costs (the “Initial Exploration      Costs”) on or before the date that is 48 months after the Vesting      Time. Crosshair shall also be responsible for all Costs required in order      to maintain the Properties in good standing during this      period.  During this period, Paragon’s Interest shall be a      carried Interest and accordingly Paragon shall not be required to      contribute its Cost Share of any Programs and  Budgets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.4 | If      Crosshair has not incurred the Initial Exploration Costs on or before the      date that is 48 months after the Vesting Time, then Crosshair shall issue      250,000 Crosshair Shares to Paragon and shall then have an additional 12      months to incur the Initial Exploration Costs.  If Crosshair has      not completed the Initial Exploration Costs after the 12 month extension,      the Additional Option automaticallyexpires. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | ADDITIONAL      OPTION |
|----|------------------------|

| 4.1 | Crosshair      has an option to earn an additional 10% Interest (the “Additional Option”) and      in order to obtain such additional 10% Interest it  must: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | exercise      the Initial Option; |
|--------|-----|-----------------------------------|

|   | (2) | incur      the Initial Exploration Costs; |
|--------|-----|-------------------------------------------|

|   | (3) | if      required by section 3.4, issue 250,000 Crosshair Shares to      Paragon; |
|--------|-----|----------------------------------------------------------------------------------|

|   | (4) | provide      notice to Paragon within 90 days of Crosshair’s incurrence of the Initial      Exploration Costs that it desires to earn the additional 10%      Interest; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | incur      a minimum of $1,000,000 in additional Exploration Costs (the “Additional Exploration      Costs”); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | if      Crosshair has not incurred the Additional Exploration Costs on or before      the date that is 24 months after the date it gives notice to Paragon in      accordance with section 4.1(4), Crosshair shall be required to issue      100,000 Crosshair Shares to Paragon and      shall  then  have a further 12 months to incur the      Additional Exploration Costs.  If Crosshair has not fully      incurred the Additional Exploration Costs, after the 12 month extension,      it, may purchase the additional 10% Interest by (i) paying in cash to      Paragon the difference between the $1,000,000 in Additional Exploration      Costs and actual Additional Exploration Costs incurred by Crosshair, and      (ii) issuing 50,000 Crosshair Shares to Paragon.  If Crosshair      does not elect to purchase the additional 10% Interest in accordance with      this Section 4.1(6), the Additional Option shall  expire. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Crosshair      shall also be responsible for all Costs required in order to maintain the      Properties in good standing during this period.  During this      period, Paragon’s Interest shall be a carried Interest and accordingly      Paragon shall not be required to contribute its Cost Share of any Programs      and Budgets. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | REPRESENTATIONS,      WARRANTIES ANDCONDITIONS |
|----|------------------------------------------------|

| 5.1 | Crosshair      represents and warrants to Paragon that, as of the date of this      Agreement: |
|-----|------------------------------------------------------------------------------------------------|

|   | (1) | it      is a valid and subsisting corporation duly existing under the laws of the      Province of British Columbia; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

----

|   | (2) | it      has full corporate power and authority to execute and deliver this      Agreement any agreement or instrument referred to or contemplated in this      Agreement and to carry out and perform its covenants and obligations      hereunder; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | it      has taken all necessary corporate proceedings and obtained all necessary      approvals in respect thereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (4) | upon      execution and delivery of this Agreement by Crosshair, this Agreement will      constitute a legal, valid and binding obligation of Crosshair enforceable      against Crosshair in accordance with its terms except  that: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | enforceability      may be limited by bankruptcy, insolvency or other laws affecting      creditors’ rights generally; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | equitable      remedies, including the remedies of specific performance and injunctive      relief are available only in the discretion of the applicable      court; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      court may stay proceedings before them by virtue of equitable or statutory      powers; and |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (d) | rights      of indemnity and contribution hereunder may be limited under applicable      law; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (5) | execution,      delivery and performance of this Agreement does not and will not conflict      with, accelerate the performance required by, result in any breach or      contravention of, constitute a default under or result in the creation of      any encumbrance, lien or charge under or pursuant to the provisions of      (i) its constating documents of any resolutions of its shareholders      or directors, or any indenture, agreement or other instrument whatsoever      to which it is a party, by which it is bound or to which it may be subject      or (ii) any Applicable Laws;and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | no      representation or warranty made by it in this Agreement or any statement,      schedule, certificate or other document delivered by it pursuant to or in      connection with this Agreement or in connection with any transaction      contemplated hereby contains any untrue statement of a material fact or      omits to state a material fact required to be stated herein or therein or      necessary to make the statements contained herein or therein not      misleading. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Paragon      represents and warrants to Crosshair that, as of the date of this      Agreement: |
|-----|------------------------------------------------------------------------------------------------|

|   | (1) | it      is a valid and subsisting corporation duly existing under the federal laws      of Canada; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (2) | it      has full corporate power and authority to execute and deliver this      Agreement and any agreement or instrument referred to or contemplated in      this Agreement and to carry out and perform its covenants and obligations      hereunder; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | it      has taken all necessary corporate proceedings and obtained all necessary      approvals in respect thereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (4) | upon      execution and delivery of this Agreement by it, this Agreement will      constitute a legal, valid and binding obligation of it enforceable against      it in accordance with its terms exceptthat: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | enforceability      may be limited by bankruptcy, insolvency or other laws affecting      creditors’ rights generally; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | equitable      remedies, including the remedies of specific performance and injunctive      relief; are available only in the discretion of the applicable      court; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      court may stay proceedings before them by virtue of equitable or statutory      proceedings; and |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (d) | rights      of indemnity and contribution hereunder may be limited under applicable      law; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (5) | execution,      delivery and performance of this Agreement does not and will not conflict      with, accelerate the performance required by, result in any breach or      contravention of, constitute a default under or result in the creation of      any encumbrance, lien or charge under or pursuant to the provisions of      (i) its constating documents or any resolutions of its shareholders      or directors, or any indenture, agreement or other instrument whatsoever      to which it is a party, by which it is bound or to which it may be subject      or (ii) any Applicable Laws; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Schedule      1.1(90) accurately sets out all the lands, mineral claims and other      interests that comprise theProperties; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | it      is lawfully authorized to hold mineral claims in the Province of      Newfoundland & Labrador; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (8) | all      the mineral claims constituting the Properties have been duly and properly      staked and recorded, and have been and are validly held in accordance with      the laws of Newfoundland &Labrador; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | except      as set out in the Underlying Agreements, Joint Venture Agreement and      Purchase and Sale Agreement, Paragon is the beneficial and registered      owner of a 100% undivided interest in the Properties which      are  in good standing under the laws of Newfoundland &      Labrador up to and including the date hereof and are free and clear of all      liens, charges, encumbrances or other rights of third parties, except for      Permitted Encumbrances; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | the      parties hereto may enter the Properties for all purposes of this Agreement      without making any payment or accounting to, or obtaining the permission      of, any other person; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (11) | other      than as disclosed to Crosshair, there is no adverse claim or challenge by      any person against or to the ownership of or entitlement to the Properties      and no basis therefor, and there are no outstanding agreements or options      to acquire or purchase the Properties and no other person has any royalty      or other interest whatsoever in production or profits      therefrom; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | full      and complete copies of all exploration information and data, including all      geological, geophysical and geochemical information and data (including      all drill, sample and assay results and all maps) concerning the      Properties in its possession or control have been provided to      Crosshair; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | there      are no actions, suits or proceedings pending or to its knowledge,      threatened, against or adversely affecting or which could adversely affect      the Properties before any federal, provincial, municipal or other      Governmental Authority, court, department, commission, board, bureau,      agency or instrumentality, domestic or foreign, whether or not insured,      and which might involve the possibility of any judgement or liability      against the Properties; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | all      work carried out on the Properties by it and, to its knowledge, by any      person has been carried out in compliance with all Applicable Laws,      including Environmental Laws, and neither it, nor to its knowledge any      person, has received any notice of any breach of any such law and it has      no knowledge of any facts which would lead a well informed operator in the      mining industry to believe there are any Environmental Liabilities      associated with the Properties and, to its knowledge, there are no      environmental audits, evaluations or studies relating to    it; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | no      consent or approval is required to permit the execution and delivery of      this Agreement by it or the performance of its obligations      hereunder; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | it      has all material permits, authorizations, licences, registrations and      certificates necessary to carry on its business as currently conducted and      as contemplated by this agreement; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | no      representation or warranty made by it in this Agreement or any statement,      schedule, certificate or other document delivered by it pursuant to or in      connection with this Agreement or in connection with any transaction      contemplated hereby contains any untrue statement of a material fact or      omits to state a material fact required to be stated herein or therein or      necessary to make the statements contained herein or therein not      misleading; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | there      is no claim, complaint or other proceeding initiated by or on behalf of      any aboriginal group or to which any aboriginal group is legally a      necessary party pending or, to the knowledge of Paragon, threatened by any      aboriginal group with respect to Paragon’s exploration of the Properties      and the Other Tenements or the proposed Operations and Paragon has not      engaged in any negotiations with any aboriginal group in respect of the      Properties and the Other Tenements orentered |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (19) | Paragon      has made full disclosure to Crosshair of all material facts of which      Paragon has knowledge relating to the Assets and all relevant information      that Paragon possesses which relates to the Assets which could have any      effect upon Crosshair determining whether it shall enter into this      Agreement and this Agreement does not contain any untrue statement by      Paragon of a material fact of which Paragon has knowledge and Paragon has      not omitted to state in this Agreement a material fact necessary in order      to make the statements contained herein not  misleading. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | The      representations, warranties and covenants hereinbefore set out are      conditions on which the Participants have relied in entering into this      Agreement and each of the Participants will indemnify and save the other      harmless from all loss, damage, costs, actions and suits arising out of or      in connection with any breach of any representation, warranty, covenant,      agreement or condition made by it and contained in this      Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | (1) | Each      Participant shall indemnify the other Participants, their respective      directors, officers, employees, agents and representatives (collectively      “Indemnified      Participant”) from and against the entire amount of any Material      Loss.  A “Material Loss” shall      mean all costs, expenses, damages or liabilities, including lawyers’ fees      and other costs of litigation (either threatened or pending) arising out      of or based on a breach by a Participant (“Indemnifying      Participant”) of any representation, warranty or covenant contained      in this Agreement, including withoutlimitation: |
|-----|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | failure      of a Participant or its Affiliates to comply with the Area of Interest      provisions of section 17; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (b) | failure      of a Participant or its Affiliates to comply with the restrictions on      alienation under section 20. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (2) | If      any claim or demand is asserted against an Indemnified Participant in      respect of which such Indemnified Participant may be entitled to      indemnification under this Agreement, written notice of such claim or      demand shall promptly be given to the Indemnifying      Participant.  The Indemnifying Participant shall have the right,      but not the obligation, by notifying the Indemnified Participant within 30      days after its receipt of the notice of the claim or demand, to assume the      entire control of (subject to the right of the Indemnified Participant to      participate, at the Indemnified Participant’s expense and with counsel of      the Indemnified Participant’s choice), the defence, compromise, or      settlement of the matter, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | Any      damages to the assets or business of the Indemnified Participant caused by      a failure by the Indemnifying Participant to defend, compromise, or settle      a claim or demand in a reasonable and expeditious manner requested by the      Indemnified participant, after the Indemnifying Participant has given      notice that it will assume control of the defence, compromise, or      settlement of the matter, shall be included in the damages for which the      Indemnifying Participant shall be obligated to indemnify the Indemnified      Participant. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Any      settlement or compromise of a matter by the Indemnifying Participant shall      include a full release of claims against the Indemnified Participant which      has arisen out of the indemnified claim or  demand. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | EXECUTIVE      COMMITTEE  |
|----|--------------------------------|

| 6.1 | The      Executive Committee will supervise the activity pursuant to this Agreement      of the Joint Venture.  At anytime that Crosshair shall have an      Interest of at least 50%, the Executive Committee shall consist of two      members appointed by Crosshair and one member appointed by      Paragon.  At anytime that Crosshair does not have an Interest of      at least 50%, the Executive Committee shall consist of two members      appointed by Paragon and one member appointed by Crosshair.  The      voting rights of the members will be as set out by this      section 6. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Except      as otherwise stipulated in this Agreement, all resolutions of the      Executive Committee shall be passed if approved by a simple majority of      the members of the Executive Committee or their alternates present at the      meeting at which the motion in respect of such resolution is moved,      considered and voted on.  Subject to section 6.6, if, at      any time, the members of the Executive Committee become deadlocked in      their consideration of a matter being considered by them as evidenced by a      vote upon a motion which results in an equal number of votes for and      against such motion, the Chairman shall have a second, additional or      casting vote. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Prior      to the Vesting Time, the Participants’ nominees shall have an equal number      of votes (i.e. the nominees of Crosshair shall have in the aggregate 50%      of the votes and the nominee of Paragon shall have 50% of the      votes).  Subsequent to the Vesting Time, the Participants’      nominees shall have a number of votes pro rata to the Participants’      respective Interests at such time. (i.e. immediately after the Vesting      Time, the nominees of Crosshair shall have in the aggregate 60% of the      votes and the nominee of Paragon shall have 40% of the    votes). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | Prior      to the Vesting Time, one of the Crosshair representatives shall serve as      the Chairman of the Executive Committee.  Subsequent to the      Vesting Time, the Chairman will be a representative of Crosshair at any      time that Crosshair shall have an Interest of at least 50% but if, at any      time, Crosshair does not have an Interest of at least 50%, a      representative of Paragon shall be theChairman. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.5 | The      Executive Committee shall, without limiting any of its powers as specified      elsewhere in this Agreement, have the obligation and the exclusive right,      power and authority to: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | ensure      that all work is carried out in accordance with sound industry practice      and in adherence to a safety, health and environmental policy which is      approved by the Executive Committee and in adherence to applicable      law; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | approve,      modify, or reject or request the revision of, any Program and Budget, as      maybe amended from time to time; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | approve      a form of accounting procedure; |
|--------|-----|----------------------------------------------|

|   | (4) | consider      those items specified insection 6.6; |
|--------|-----|---------------------------------------------------------|

|   | (5) | commence      a scoping study, pre-feasibility study and the Full Feasibility      Study; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (6) | make      the Development Decision; and |
|--------|-----|-----------------------------------------|

|   | (7) | subject      to the limitations contained in section 8.5(12), prosecute or defend      all litigation arising out of operations conducted hereunder, or settle      any lawsuit, claim or demand. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6 | Notwithstanding      anything else in this Agreement except sections 6.7 and 6.8, the      following decisions of the Executive Committee shall require the approval      of 100% of the votes cast by the Participants’ representatives on such      Executive Committee: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | any      additional program of capital expenditures during a period that is at      least 20% above the capital expenditures previously approved as part of      the Program in respect of such period and in the Budget for such      period; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | any      cessation of Operations in respect of any mine developed on the Properties      for a period exceeding 20 business days other than as a result of an      Intervening Event; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | any      re-commencement of Operations of any mine developed on the Properties      after a cessation of Operations described in      section 6.6(2); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | incurring      any Overruns which exceed more than 10% of any Contributing      Budget; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (5) | the      disposition of any Assets or obligations not in the ordinary course of      business which have a value in excess of $5 million;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | any      Expansion. |
|--------|-----|---------------------|

| 6.7 | If      a matter referred to in sections 6.6(1) to (3), inclusive, receives      the approval of less than 100% of the votes cast but more than 0% of the      votes cast, the members of the Executive Committee shall use good faith      efforts for 20 days to reach a consensus onthe |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.8 | If      a matter referred to in sections 6.6(4) or (5) receives the approval      of less than 100% of the votes cast but more than 0% of the votes cast,      the matter shall be referred to the consideration of the Chief Executive      Officers of the Parties who shall use good faith efforts to reach a      consensus on the matter for a period of 20 days. If such good faith      efforts are not successful, the resolution approving of such matter shall      be deemed to be passed. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.9 | If      a matter referred to in sections 6.6(1) or (5), inclusive, is deemed      to be passed pursuant to either of sections 6.7 or 6.8, the      Participant, the representatives of which are not approving such matter      (the “Non-Approving      Participant”), shall have the option during a period of 180 days      following such 20-day period to require the other Participant, by written      notice, to purchase the Non-Approving Participant’s Interest for the Fair      Market Value of such Interest.  Upon the exercise of that      option, the other Participant shall complete the purchase of the Interest      of the Non-Approving Participant within 180 days of receipt of notice of      the exercise of such option.  Upon the closing of such      transaction of purchase and sale, the Non-Approving Participant will      execute and deliver to the other participant all such documents as may      reasonably be necessary to transfer to the other Participant all the      interest of the Non-Approving Participant and the other Participant shall      deliver to the Non-Approving Participant the cash amount in immediately      available funds determined in accordance with      Schedule 1.1(47). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | MEETINGS OF      EXECUTIVE COMMITTEE  |
|----|--------------------------------------------|

| 7.1 | Either      Participant may, from time to time, revoke in writing the appointment of      its nominees to the Executive Committee and appoint in writing others in      their place.  Either Participant may, from time to time, in      writing appoint an alternate member who may attend as an alternate for a      member of the Executive Committee previously appointed by such      Participant.  Representatives or agents of the Participants may      attend meetings of the Executive Committee but shall have no voting      rights.  Alternate members may attend meetings of the Executive      Committee, and in the absence of a member, the alternate of such member of      the Executive Committee may vote and otherwise act in the stead and place      of such member of the Executive Committee.  Whenever any such      member or such alternate member votes or acts, his votes or actions will      for all purposes of this Agreement be considered the actions of the      Participant whom he represents.  The Participants will give      written notice to each other, from time to time, as to names, addresses      and telephone numbers of their respective members and alternates on the      Executive Committee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Meetings      of the Executive Committee will be held as required but in any event not      less frequently than every three months.  A meeting of the      Executive Committee may take place by means of conference telephones or      other communication facilities by which means the members or their      alternates participating in the meeting can hear each      other.  The persons participating in a meeting in accordance      with this section 7 will bedeemed |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.3 | Voting      by the Executive Committee may be conducted by verbal, written, electronic      or facsimile ballot.  A resolution in writing approving a matter      to be acted upon by the Executive Committee, signed by all the members of      the Executive Committee or their alternates, is as valid as if it had been      passed at a meeting of the Executive Committee.  Electronic and      facsimile signatures evidencing consent to any such written resolution      shall be accepted to be as valid as original signatures in such      documents. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | A      quorum of any meeting of the Executive Committee will consist of not less      than one member from Crosshair and one member from Paragon.  If      a quorum is not present within 120 minutes after the time fixed for      holding any such meeting, such meeting will be adjourned to the next      following business day at the same time and place.  At the      adjourned meeting, the members or alternate members present (which may be      only one person) will form a quorum and may transact the business for      which the meeting was originallyconvened. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Meetings      of the Executive Committee may be called by any Participant by giving ten      business days’ written notice to the other Participant.  The      Participants may unanimously agree to abridge this notice period and any      member of the Executive Committee attending a meeting called with less      than ten business days’ notice shall be deemed to have waived the notice      requirement unless such member states that his sole purpose for attending      such meeting is to object to the lack of adequate notice.  All      meetings will be held in Vancouver, British Columbia, Canada unless      otherwise unanimously agreed to by both      Participants.   There will be included with a notice of      meeting such material and data as may be reasonably required to enable the      members of the Executive Committee to determine the position they should      take in respect of any matter to be discussed or determined at such      meeting.  Any member of the Executive Committee may request, at      any time prior to a meeting, such additional information from the Operator      as is reasonably required for the purposes of the meeting and such      information shall be provided by the Operator to all member’s of the      Executive Committee. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | The      Operator will have the responsibility of preparing and distributing      notices and agendas of meetings and keeping records of the proceedings at      such meetings and distributing such records to the      Non-Operator.  The Operator shall have the responsibility of      keeping records of the proceedings.  Draft minutes of meetings      of the Executive Committee shall be distributed within five business days      after any meeting.  If a member of the Executive Committee has      any material comments on, or proposed material revisions to, the draft      minutes they shall be sent to the Operator within five business days of      the receipt of the draft minutes.  The Operator shall circulate      revised minutes within five business days thereafter.  If a      member of the Executive Committee does not provide material comments on      draft minutes or revised minutes within five business days then such      member shall be deemed to have approved such  minutes. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | THE OPERATOR |
|----|--------------|

| 8.1 | Subject      to section 8.2, Crosshair shall be the  Operator: |
|-----|---------------------------------------------------------------------|

|   | (1) | during      the Exploration Period (provided that Crosshair earns the Initial Option      pursuant to section 3.2 and continues to have an Interest of at least      50%); and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | at      any time in any other Period during which Crosshair has an Interest of at      least 50%; |
|--------|-----|---------------------------------------------------------------------------------------------------|

| 8.2 | If      Crosshair transfers its Interest to a person that is not an Associated      Company pursuant to section 20, Crosshair may resign as the Operator      upon not less than 60 days’ prior written notice to the Non-Operator, in      which case the successor Operator shall be appointed by a simple majority      vote at a subsequently called meeting of the Executive      Committee. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | The      Operator shall be responsible for the preparation for submission to the      Executive Committee, and, for the execution of each Program and Budget to      be considered and, if so determined by the Executive Committee, approved      by the Executive Committee |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | The      Operator shall consult freely with the Non-Operator and keep it advised of      all material developments andresults. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Subject      to the control and direction of the Executive Committee, the Operator      shall have full authority as agent acting for and on behalf of the      Participants to do everything necessary or desirable in accordance with      good practice in connection with the exploration, development or      operations of the Properties.  Without limitation, the Operator      shall have the authority and the obligationto: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | implement      the Programs and Budgets approved by the Executive Committee in accordance      with this Agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (2) | provide      all information regarding operations necessary to allow the Participants      to meet their continuous disclosure obligations under applicable      law; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | proceed      with the testing, assaying and analysis of all samples in an expeditious      manner; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (4) | employ      and engage such employees, agents, and independent contractors as the      Operator may consider necessary or advisable to carry out his duties and      obligations hereunder; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | manage,      direct and control all exploration, development and production operations      in, on and under the Properties in a prudent and workmanlike manner, and      in compliance with all applicable laws, rules, orders, regulations and      policies; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | prepare      and deliver to each of the members of the Executive    Committee: |
|--------|-----|--------------------------------------------------------------------------------|

|   | (a) | within      ten business days of the end of each calendar month, written monthly      progress reports of the work undertaken in the prior calendar month and      results obtained in a form acceptable to the Executive Committee, which      form shall require a comparison, and analysis of any material variance      between actual and cumulative progress relative to the Program and      Budget; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an      annual summary on or before the day which is 60 business days following      the end of the Fiscal Year describing the Operations of the results      obtained during the Fiscal Year immediately preceding, accompanied by such      copies of data, reports and other information on or with respect to the      Properties as are acceptable to the Executive Committee;    and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | during      periods of active field work, timely information on any material matters,      results obtained, accompanied by copies of relevant data, reports and      other information concerning such results; provided that the Non- Operator      shall have the right at any time, upon at least 24 hours’ written notice      to the Operator to attend upon the offices of the Operator in order to      review and take copies of all relevant data, reports and other information      concerning the Operations; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | account      to the Participants for all contributions to  Costs; |
|--------|-----|-------------------------------------------------------------------|

|   | (8) | maintain,      in accordance with Canadian GAAP consistently applied, true and correct      books, accounts and records of operations hereunder and such other      information as a Participant may reasonably request in order to allow it      to prepare its financial statements in accordance with its regulatory      requirements and to cause to be prepared and delivered to the relevant      Executive Committee, as applicable, audited financial statements of the      Joint Venture on or before 45 business days following the end of each      Fiscal Year; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | permit      each Participant or its professional advisors upon reasonable notice, at      its own expense, access to the Properties and the Facilities to inspect,      take abstracts from or audit any or all of the records and accounts during      normal business hours; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | keep      the Properties in good standing free and clear of all Encumbrances except      Permitted Encumbrances arising from operations  hereunder; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | obtain      and maintain, or cause any contractor or consultant engaged hereunder to      obtain and maintain, adequate insurance coverage with respect to      activities on or with respect to the Properties, and to provide proof of      such insurance coverage to |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (12) | after      giving notice to the Participants, prosecute or defend all litigation      arising out of operations conducted hereunder, but the Operator will not      incur legal expenses in excess of $100,000 without the approval of the      Non-Operator; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | permit      each Participant or its representatives duly appointed in writing, at its      own expense and risk, access to all data derived from carrying out work      hereunder; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | arrange      for and maintain workers’ compensation or equivalent coverage for all      eligible employees engaged by the Operator on behalf of the Participants      in accordance with local statutory requirements;  and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | perform      its duties and obligations in a manner consistent with good exploration      and mining industry practices. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------|

| 8.6 | Notwithstanding      the foregoing, the Operator shall have full authority to take such action      as it in its professional judgement deems necessary or advisable in order      to safeguard and protect the environment, life or the    Assets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7 | The      Operator may only engage an Associated Company of itself to provide      services, supplies, equipment or machinery hereunder with the prior      written approval of the Non- Operator, such approval not to be      unreasonably withheld.  For the avoidance of doubt, the      Non-Operator shall not withhold its approval if the Operator demonstrates      that the Associated Company has been engaged on terms no more favourable      to the Associated Company than those that could be obtained from a      participant dealing at arm’s length to the Operator and with substantially      the same experience and expertise as the Associated    Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | EXPLORATION      PERIOD   |
|----|-------------------------------------|

| 9.1 | Exploration      Costs will only be incurred under and pursuant to a Program and Budget      approved by the Executive Committee in accordance with section 6;      provided,      however,      that the Initial Exploration Costs and Additional Exploration Costs will      be incurred as determined by Crosshair in its sole    discretion. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Crosshair      will provide Paragon with details of its plan for the Initial Exploration      Costs and Additional Exploration Costs in a form similar to a Program and      Budget and Paragon may provide its comments on the proposed Initial      Exploration Costs and Additional Exploration Costs within 15 business days      of being received by Paragon. It is in Crosshair’s sole discretion, acting      reasonably, as to whether it makes any modifications to its proposed      Initial Exploration Costs and Additional Exploration Costs based on      Paragon’s comments. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Crosshair      shall be solely responsible for funding the Initial Exploration Costs and      the Additional Exploration Costs and Crosshair and Paragon shall be      jointly responsible to |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.4 | During      the period that Crosshair is required to incur the Initial Exploration      Costs, and if it makes the election pursuant to section 4.1, the      Additional Exploration Costs, Crosshair shall be solely responsible for      making any royalty or other payments required under the Underlying      Agreements and such payments shall be included in the Initial Exploration      Costs and Additional Exploration Costs, as  applicable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | FEASIBILITY      PERIOD |
|-----|-------------------------|

| 10.1 | The      Feasibility Period will comprise the following  stages: |
|------|------------------------------------------------------------------|

|   | (1) | preparation      of such scoping and pre-feasibility studies and the undertaking of such      further exploration as the Executive Committee may deem      advisable; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | preparation      and delivery of a Full Feasibility Study;and |
|--------|-----|---------------------------------------------------------------|

|   | (3) | making      the Development Decision. |
|--------|-----|---------------------------------------|

| 10.2 | Feasibility      Costs will only be incurred pursuant to a Program and Budget approved by      the Executive Committee in accordance with section 6.  Each      Participant shall be responsible for its Cost Share of all Feasibility      Costs. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Crosshair      may deliver a Full Feasibility Study to the Executive Committee at any      time.  Crosshair shall also deliver with such Full Feasibility      Study its Recommendation to the Executive Committee based on the results      of the Full Feasibility Study.  A meeting of the Executive      Committee will be held 10 days following the delivery to Paragon of the      Full Feasibility Study to consider the  Recommendation. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | DEVELOPMENT      PERIOD |
|-----|-------------------------|

| 11.1 | Development      Costs will only be incurred pursuant to a Program and Budget approved by      the Executive Committee in accordance with section 6.  Each      Participant shall be responsible for its Cost Share of all Development      Costs. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Upon      a Development Decision, Paragon may elect either  to: |
|------|-----------------------------------------------------------------|

|   | (1) | obtain      its own Development Finance; or |
|--------|-----|---------------------------------------------|

|   | (2) | request      Crosshair to use commercially reasonable endeavours to arrange Development      Finance for Paragon’s Cost Share of Development Costs.  Such      Development Finance will be at a level which is consistent with finance      coverage, ratios and maturities prevailing in the market at that time for      a conventional mining project finance funding similar for the project      being contemplated.  Crosshair shall have satisfied its      obligation to use reasonable endeavours to arrange Development Finance if      Crosshair: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | provides      the applicable Full Feasibility Study to not less than three financial      institutions who are in the business of providing project finance for      projects similar to the project being  contemplated; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | provides      such financial institutions details of the planned construction, operation      and other technical information regarding the project in sufficient detail      to enable the financial institutions to make a decision as to whether it      will provide financing for Paragon’s Cost Share of Development      Costs; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | assists      in the negotiation of term sheets and if applicable, definitive      agreements, between Paragon and the financial  institutions; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | assists      in meetings between Paragon and those financial institutions who are      interested in providing project finance in order to provide information      regarding the project which the financial institutions may reasonably      require; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | assists      Paragon in arranging due diligence site visits requested by financial      institutions, including providing access to key Crosshair personnel, and      to field data including drill logs and drill  core. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | For      the avoidance of doubt, if Crosshair is requested by Paragon to use      reasonable endeavours to arrange Development Finance for Paragon,      Crosshair shall not be obligated, without limitation,  to: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | provide      any guarantees, including performance or completion      guarantees; |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (2) | enter      into forward sales, hedging contracts, puts, calls or similar derivative      contracts for any reason including in order to obtain Development Finance;      or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | provide      price support, political risk insurance or title  insurance. |
|--------|-----|---------------------------------------------------------------------------|

| 11.4 | The      Participants agree to use reasonable endeavours to ensure that the terms      of any Development Finance shall allow for 10% of Net Cash Flow to be      available for distribution to the Participants pro rata to their      respective Interests. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | Within      60 days of receiving notice from Paragon of any election it makes to      request Crosshair to use reasonable endeavours to arrange Development      Finance for Paragon under section 11.2, Crosshair shall send a notice      to Paragon stating whether it has been able to obtain Development Finance      for Paragon’s Cost Share of all Development Costs and, if it has, the      notice shall contain a description of the terms of such Development      Finance in sufficient detail to enable Paragon to decide whether it shall      accept the Development Finance (the “Development Finance      Notice”). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | If,      having used reasonable endeavours to obtain Development Finance for      Paragon in response to any request made by Paragon pursuant to      section 11.2 during the 60 days before Crosshair is required to send      the notice to Paragon pursuant to  section 11.5, |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.7 | Within      30 days of Paragon receiving the Development Finance Notice in a form that      describes Development Finance that Crosshair has found to be obtainable      for Paragon, Paragon shall send a written notice to Crosshair electing      to: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | accept      the terms of any Development Finance described in the Development Finance      Notice; or |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (2) | arrange      its own Development Finance; or |
|--------|-----|----------------------------------------------|

|   | (3) | not      fund its Cost Share of Development Costs and be diluted in accordance with      the terms of section 14. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

| 11.8 | Each      Participant must have raised its Cost Share of the Development Costs, and      provided the other Participant with evidence of such, within 180 days of      the Development Decision.  If a Participant has not raised its      Cost Share of Development Costs, and provided the other Participant with      evidence of such within such period, it shall lose its right to contribute      to the Development Costs and shall be diluted in accordance with      section 14. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.9 | Subject      to section 19, any Development Finance may be secured by one or more      Encumbrances on the Properties, provided that the extent of the security      interest of the lender of Development Finance over the Properties to any      Participant shall be limited to the pro rata Interest of      such Participant. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.10 | Any      Development Finance obtained by Paragon, whether it is found by Crosshair      or by Paragon, shall be entirely with recourse to Paragon and entirely      without recourse to Crosshair. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.11 | Any      Development Finance obtained by Crosshair, whether it is found by      Crosshair or by Paragon, shall be entirely with recourse to Crosshair and      entirely without recourse toParagon. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.12 | The      Participants shall inform the Operator of their respective Development      Finance Expenses as soon as they can be ascertained and promptly      thereafter upon any change thereof. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12. | OPERATING PERIOD |
|-----|------------------|

| 12.1 | Operating      Costs will only be incurred pursuant to a Program and Budget approved by      the Executive Committee in accordance with section 6.  Each      Participant shall be responsible for its Cost Share of all Operating      Costs. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Each      Program and Budget in the operating Period will  contain: |
|------|---------------------------------------------------------------------|

|   | (1) | a      plan of Proposed Operations; |
|--------|-----|-------------------------------------|

|   | (2) | an      estimate of the quantity of Product to be produced and available for      sale; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (3) | a      detailed estimate of all monthly Revenue and monthly Operating Costs plus      a reasonable allowance forcontingencies; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | such      other facts and figures as may be necessary to give the Non-Operator a      reasonably complete picture of the results the Operator plans to achieve,      and the Operator will promptly supply to the Non-Operator any additional      or supplemental information which the Non-Operator may reasonably require      in respect of the Program andBudget; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | a      forecast for the results of the current Fiscal Year;  and |
|--------|-----|------------------------------------------------------------------|

|   | (6) | an      indicative forecast of the annual Revenue and, annual Operating Costs and      results for the next two FiscalYears. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | The      Operator will establish and administer a Contingency Fund to which the      Participants will be obligated to contribute in accordance with their      respective Interests and as specified in the approved Programs.      Contingency Fund moneys, if any, will be invested and re-invested by the      Operator in such liquid investments as the Executive Committee may, from      time to time, authorize.  To the extent possible under then      existing tax laws, the Contingency Fund wilt be set up and administered in      such a manner as to provide the most beneficial tax treatment to the      Participants. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | If      the Net Cash Flow for any month is positive, such Net Cash Flow will be      dedicated in accordance with the respective Interests of the Parties as      follows: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | to      make the required payments of the sum of the Development Finance      Expenses; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (2) | to      make any payments in arrears in connection with      section 12.5; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (3) | to      satisfy each Participant’s obligations under section 13.9 for the      next month; |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (4) | with      respect to a Participant’s pro rata share of the Net Cash Flow, to satisfy      that Participant’s obligations to the other Participant under this      Agreement including, without limitation, the Cost Share of Paragon in      respect of all other amounts funded by Crosshair hereunder on behalf of      Paragon; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | to      satisfy the Business Account set out in section 13.11;      and |
|--------|-----|------------------------------------------------------------------------------|

|   | (6) | to      be distributed to the Participants pro rata to the respective Interests of      the Participants, (the amounts available for distribution pursuant to this      section 12.4(6) are collectively referred to as the “Participants’ Net Cash      Flow”). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | If      the Net Cash Flow for any month is negative, each Participant must      contribute its Cost Share of such shortfall together with its Cost Share      of any required payments of interest, fees and other costs associated with      the Development Finance.  If a Participant fails to make such a      contribution within 30 days, it will be diluted in accordance with      section 14. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | PROGRAMS AND      BUDGETS |
|-----|---------------------------|

| 13.1 | The      Operator shall: |
|------|--------------------------|

|   | (1) | on      or before 75 days prior to the end of each Fiscal Year, prepare and submit      to the Executive Committee all Programs and Budgets (other than that for      the Initial Exploration Costs and Additional Exploration Costs) after      consultation with the members of the Executive Committee, for the      immediately following Fiscal Year; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | notwithstanding      anything else in this Agreement, call a meeting of the Executive Committee      to be held on or before 45 days prior to the end of each Fiscal Year;      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | present      for consideration at such meeting the Program and Budget for the      immediately following Fiscal Year, the forecast for the then current      Fiscal Year and an indicative forecast for the immediately following      Fiscal Year; provided that any Program and its associated Budget may be      prepared on the basis of two or more distinct phases, the commencement and      termination of which shall be stipulated by the Operator (each, a “Program/Budget      Phase”). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | All      Programs and Budgets commencing on the first day of each Fiscal Year shall      be approved by the 30th      day prior to the end of the immediately preceding Fiscal    Year. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Each      Participant must elect whether to fund its Cost Share of any approved      Program and Budget in which it is required by this Agreement to share the      Costs by the 15th      day prior to the end of the Fiscal Year immediately preceding that to      which such Program and Budget shall apply and a failure to make such      election shall be deemed to be an election not to fund such Cost Share of      such Budget. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | With      respect to the Program and Budget for the Development Period and the first      Program and Budget for the Operating Period, the Operator will submit the      Programs and Budgets sufficiently in advance of the anticipated      commencement of, respectively, the Development Period and the Operating      Period to provide each of the Participants a reasonable amount of time to      consider the same and raise its Cost Share of anticipated      Costs. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.5 | Each      Participant will have 15 business days after receipt of a proposed Program      and Budget to consider it, following which a meeting of the Executive      Committee will be held to address any objections to such Program and      Budget or alternative proposals. A Participant that objects to a Program      or Budget must specify the reasons for its objections and promptly provide      the suggested amendments or modifications in writing to the Operator and      Executive Committee.  The Executive Committee will instruct the      Operator to make any amendments and resubmit the proposed Program and      Budget.  The Operator shall immediately notify the Participants      and call a meeting of the Executive Committee pursuant to section 7.5      to consider such amendment.  Such amendment may also be agreed      to in writing by the members of the Executive Committee pursuant to      section 7.3. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | If      a Participant elects not to participate in a Program in which the other      Participants may participate as contemplated in this Agreement by the      deadline described in section 13.3, the other Participant may elect      within l5 business days to bear that Participant’s Cost Share to be funded      by the Participant which chose not to fund its Cost Share, in which event      such Participant will have its Interest diluted pursuant to      section 14.  A Program which is not fully subscribed shall      not proceed.  If a Program does not proceed on that basis, the      Participants shall remain responsible for the costs of the care and      maintenance of the Properties and the Assets in accordance with the terms      of this Agreement.  Failure to give notice pursuant to this      section within such 15 business day period will be deemed to be an      election by a Participant not to contribute its Cost Share of such      Contributing Budget. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7 | An      election to fund a Contributing Budget will make a Participant liable to      pay its Cost Share of all of the Costs actually incurred under or pursuant      to such Contributing Budget, including Overruns.  The Operator      may not incur Overruns exceeding 10% of the applicable Contributing Budget      unless such Overruns are approved by the Executive Committee in accordance      with section 6.6. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8 | Based      upon the projection to implement an approved Program and Budget submitted      to and approved by the Executive Committee as the same may be revised from      time to time, the Operator will submit to the Non-Operator on or before      the 15th day of each month an estimate of the cash requirements for the      next month which will show: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | separately,      the estimated cash disbursements which the Participants will be required      to make for Costs and any other approved  expenditures; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | the      extent, if any, to which such disbursements will be satisfied out of cash      in the Operating Fund after allowing for the cash balance to be maintained      in the Operating Fund; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | the      amounts, if any, which were credited to each Participant in the      immediately preceding month; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (4) | the      Cost Share of the Costs which each Participant will be required to furnish      for such disbursements,  or to be advanced by the Operator on      behalf of the Non- Operators; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | the      account into which the required funds are to be  deposited. |
|--------|-----|----------------------------------------------------------------------|

| 13.9 | Within      10 days after the receipt of each such cash estimate, the Participants      will each remit their respective Cost Share and if one Participant fails      to pay all or any part of its Cost Share (the “Non-Contributing      Participant”) the other Participant (the “Contributing      Participant”), will be entitled to pay the unpaid Cost Share of      that Non- Contributing Participant.  If the Contributing      Participant pays such unpaid share, the Non-Contributing Participant will      be diluted in accordance withsection 14. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.10 | Prior      to incurring any Costs pursuant to a Contributing Budget hereunder or as      soon as reasonably practicable thereafter, the Operator will open an      account or accounts with bank(s) approved by the Executive Committee for      the purpose of establishing and maintaining therein at all times a cash      fund (the “Business      Account) from which Costs will be paid by the Operator or from      which the Operator may be reimbursed for Costs spent by  it. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11 | All      money contributed by the Participants will be deposited in the Business      Account.  The total amount of deposits in the Business Account,      regardless of the source thereof will be equal to the estimated gross      Costs of the Operator for the then current and next succeeding month as      estimated in the Program and Budget then in  effect. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.12 | If      a Participant has elected not to contribute its Cost Share of a      Contributing Budget pursuant to section 13.1 and 13.6 then within 90      days after the conclusion of the period covered by the Program and Budget,      the Operator shall report the total amount of Costs incurred for such      Program and Budget.  If less than 80% of the Costs specified in      a Program and Budget were expended, the Participant who elected not to      contribute its Cost Share may notify in writing the other Participant      within 15 days of receipt of the notification of the total amount of the      Operating Costs incurred of its election to reimburse the other      Participant for 120% of its own Cost Share of the Costs expended in order      to maintain the Interest it had in the Properties prior to being diluted      as a result of its failure to contribute its Cost Share of such Program      and Budget. All recalculations under this section 13.12 shall be      effective as of the first day of the applicable Program and      Budget.  The Operator on behalf of the Participants shall make      such reimbursements, reallocations, contributions and other adjustments as      are necessary so that each Participant will be placed in the same position      had it originally paid its Cost Share of the applicable Program and      Budget.  For the purposes of future calculations under      section 14, each participant will be deemed to have contributed its      Cost Share (and only its Cost Share) of the relevant Program and      Budget. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.13 | The      Operator shall promptly submit to the Executive Committee monthly      statements of account reflecting in reasonable detail the charges and      credits to the Business Account during the preceding  month. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14 | The      Operator shall record all funds received pursuant to section 13.9 in      the Business Account.  All funds in excess of immediate cash      requirements shall be invested by the Operator for the benefit of the      Business in cash management accounts and  investments |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14. | ADJUSTMENT OF      INTERESTS |
|-----|------------------------------|

| 14.1 | The      level of the respective Interests of the Participants in the Properties      will be as determined by section 3.1 of this Agreement so long as each      Participant contributes its Cost Share of every Contributing      Budget.  At any time and from time to time after a participant      (the “Diluted      Participant”) has elected or is deemed to have elected not to      contribute its Cost Share of a Contributing Budget pursuant to      section 13.3, 13.6 and 13.9 or, if a Participant fails to remit its      Cost Share of the monthly cash requirements of a Contributing Budget in      which it elected to participate in accordance with section 13.7, the      percentage level of such Participant’s Interest in the Properties (the      “Diluted Participant’s      Interest”) will be calculated in accordance with the following      formula: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1)    | DPI    | =      | A + B + C       x100   |
|--------|--------|--------|--------|---------------------------------------|
|   |   |   |   |        D +      E + F            |

|   |   | Where:  |   |                                                                                                                                                                                                                                                                            |
|--------|--------|--------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | DPI          | =      | Diluted      Participant’s Interest in the Properties after each calculation expressed      as a percentage.                                                                                                                                                         |
|   |   | A            | =      | The      expenditures deemed to be incurred by the Diluted Participant in respect      of the Initial Deemed Investment, Exploration Costs and Feasibility Costs      expended on the Properties;                                                                          |
|   |   | B            | =      | The      expenditures incurred by the Diluted Participant in connection with the      Properties in funding all Contributing Budgets other than the current      contributing Budget under which the Non-Contributing Participant’s      Interest is being diluted.  |
|   |   | C            | =      | The      expenditures incurred by the Diluted Participant in connection with the      Properties in funding the current Contributing Budget under which the      Diluted Participant’s Interest is being diluted.                                                    |
|   |   | D            | =      | The      total Initial Deemed Investment, Exploration Costs, Feasibility Costs      incurred by all the Participants in connection with the      Properties.                                                                                                               |
|   |   | E            | =      | The      total expenditures incurred by all the Participants in connection with the      Properties in funding all Contributing Budgets other than the current      contributing Budget under which                                                                             |

----

|   |   |   |  the      Diluted Participant’s Interest is being diluted.                                                                                                                                                |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | F      | =      | The      total expenditures incurred by all the Participants in connection with the      Properties in funding the current contributing Budget under which the      Diluted Participant’s Interest is beingdiluted; |

|   | (2) | The      Participant that is not the Diluted Participant (the “Remaining Participant”)      shall have its Interest in the Properties increased by the transfer to it      of that part of the Diluted Participant’s Interest equal to the percentage      by which the Diluted Participant’s Interest is decreased by virtue of this      section 14.1. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | For      the purposes of thissection 14.1, |
|--------|-----|-------------------------------------------------|

|   | (a) | if      Crosshair exercises the Initial Option, it will be deemed to have incurred      60% of the Initial Deemed Investment and Paragon shall be deemed to have      incurred 40% of the Initial Deemed Investment;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      Crosshair exercises the Additional Option, it will be deemed to have      incurred 70% of the Initial Deemed Investment and Paragon shall be deemed      to have incurred 30% of the Initial Deemed  Investment. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | For      the purposes of this section 14.1, the amount of the Initial      Exploration Costs and Additional Exploration Costs shall not be included      in the amount of Exploration Costs. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Following      a recalculation of Participants’ Interests under this Article 14, the      Properties and any other Assets the legal title to which is held by the      Participants as tenants in common, shall forthwith be transferred among      the Participants as tenants in common in accordance with their revised      Interests. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | The      consideration for any transfer referred to in section 14.2 is, for      each Participant to which such transfer occurs, the advances made by such      Participant under sections 13.3, 13.6 or  13.9. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | If      as a result of an adjustment pursuant to section 14.1, the Interest      of the Diluted Participant is reduced to 10% or less, the Diluted      Participant will transfer its Interest to the Remaining Participant in      consideration for, at the Diluted Participant’s election provided      forthwith, either: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | the      Net Smelter Royalty; or |
|--------|-----|----------------------------------|

|   | (2) | the      fair market value of the Net Smelter Royalty on the day the Diluted      Participant had its Interest reduced to 10%, as determined definitively by      an Independent Valuator selected by the Participants acting unanimously      or, failing agreement within 10 days, by the President of the Canadian      Institute of Mining, Metallurgy andPetroleum. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.5 | Any      reduction or elimination of a Diluted Participant’s Interest pursuant to      this Agreement shall not relieve that Diluted Participant of its share of      any liability, including, without limitation, Continuing Obligations,      Environmental Liabilities and Environmental Compliance, whether arising,      before or after such reduction or elimination, out of acts or omissions      occurring or conditions existing prior to the Effective Date or out of      Operations conducted during the term of this Agreement but prior to such      reduction or elimination, regardless of when any funds may be expended to      satisfy such liability.  For purposes of this section 14.5,      such Diluted Participant’s share of such liability shall be equal to its      Interest at the time the act or omission giving rise to the liability      occurred, after first taking into account any reduction, readjustment and      restoration of Interests under this Agreement (or, as to such liability      arising out of acts or omissions occurring or conditions existing prior to      the Effective Date, equal to such Diluted Participant’s initial      Interest).  Should the cumulative cost of satisfying Continuing      Obligations be in excess of cumulative amounts accrued or otherwise      charged to the Contingency Fund, each of the Participants shall be liable      for its proportionate share (i.e., Interest at the time of the act or      omission giving rise to such liability occurred), after first taking into      account any reduction, readjustment and restoration of Participating      Interests under this Agreement, of the cost of satisfying such Continuing      Obligations, notwithstanding that any Participant has previously withdrawn      from the Business or that its Interest has been reduced or converted to      the Net Smelter Royalty. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | An      adjustment to an Interest need not be evidenced during the term of this      Agreement by the execution and recording of appropriate instruments, but      each Participant’s Interest will be shown in the books of the      Operator.  However, any Participant, at any time upon the      request of another Participant, will execute and acknowledge instruments      necessary to evidence such adjustment in form sufficient for recording in      the jurisdiction where the Property islocated. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | The      operation of the formula contained in section 14.1 is demonstrated in      Schedule 14.7. |
|------|--------------------------------------------------------------------------------------------------------------|

| 15. | DISPOSITION OF      PRODUCTION |
|-----|--------------------------------|

| 15.1 | Crosshair      shall, as agent and for the account and at the expense and risk of the      Participants, sell all Product from the Properties in accordance with      section 15.2, to Crosshair and/or other persons, or, in accordance      with section 15.3, to Crosshair and/or other persons and      Paragon.  In that capacity, the Operator shall calculate Net      Cash Flow for each calendar month and distribute such Net Cash Flow in      accordance with section 12.4 including, without limitation,      distribution of the Participants’ Net Cash Flow for such calendar month,      if any, within 10 days of the end of such calendar  month. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.2 | Subject      to section 15.3, Crosshair shall have the right to purchase all or      any portion of the Product sold under section 15.1 on terms no more      favourable to Crosshair than terms available from third      Parties. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | Notwithstanding      anything else in this Agreement, the provisions of sections 15.1 will      not apply and each Participant shall have the right to purchase Product in      proportion to its Interest on terms no more favourable to it than terms      available from third parties in the following    circumstances: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Crosshair      or its permitted assigns and successors cease to be a Participant;      or |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (2) | there      is a Change of Control of Paragon;or |
|--------|-----|-------------------------------------------------|

|   | (3) | Paragon      sells its Interest in the Subject Area to a third party within 120 days of      the Development Decision with respect to such Subject  Area. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | AUDIT |
|-----|-------|

| 16.1 | The      Operator’s records relating to the Joint Venture will be audited in      accordance with Canadian GAAP annually at the end of the Fiscal Year by      the Auditor and upon completion of suchaudit: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | any      adjustments required by such audit will be made  forthwith; |
|--------|-----|----------------------------------------------------------------------|

|   | (2) | a      copy of the audited statements will be delivered to the Participants      within 45 business days of the end of the Fiscal Year, and all such      accounts and records will be deemed to be correct and accurate unless      questioned by a Participant within 45 days following the delivery of such      audited statements; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | all      information required by any Participant to this Agreement in order for      such Participant to prepare its financial actuarials in accordance with      Applicable Law shall be provided to such Participant at the expense of      such Participant. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Each      Participant that is a Non-Operator (the “Auditing Participant”),      at reasonable times and upon not less than seven days’ written notice to      the other Participant, will have the right to inspect, audit and copy the      Operator’s accounts and records relating to the Joint Venture for any      Fiscal Year within 15 days from the receipt of the audited financial      statements for such Fiscal Year at its own expense.  The      Auditing Participant will make all reasonable efforts to conduct audits in      a manner which will result in a minimum of inconvenience to the      Operator.  If the audit by an Auditing Participant is concluded      within two months from the end of the Fiscal Year in question and      indicates a difference of more than 2% of Costs prior to Commercial      Production or 2% of Net Cash Flow after commencement of Commercial      Production, before interest and tax from the amount determined by the      Auditor, then the accounts will be re-audited by a third independent firm      of chartered accountants, the decision of which will be      final.  If the results of the third audit indicate a difference      of more than 2% of Costs prior to Commercial production or 2% of Net Cash      Flow after commencement of Commercial Production, before interest and tax      from the amount determined by the Auditor, then  appropriate |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17. | AREA OF COMMON      INTEREST |
|-----|------------------------------|

| 17.1 | If      any Participant, directly or indirectly, has the opportunity to stake or      otherwise acquires any mineral interest or right of any nature whatsoever,      located wholly or in part in the Area of Common Interest, the Participant      who has such opportunity (the “Acquiring Participant”)      shall promptly notify the other Participant (the “Non- Acquiring      Participant”) in writing of that opportunity, including the terms      on which such interest or right is able to be acquired and an assessment      of the likely benefits to the Joint Venture.  An Acquiring      Participant may stake or otherwise acquire such interest or right in its      own name if the Acquiring Participant believes it is necessary to do so in      order to preserve the opportunity to acquire such interest or      right.  In such event, the Acquiring Participant will be staking      or acquiring such interest or right subject to the rights of the      Participant who is not the Acquiring Participant under this section and if      a favourable decision is made pursuant to section 17.2, such interest      or right shall become subject to this Agreement and form part of the      Properties on the basis contemplated by  section 17.2. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | The      Non-Acquiring Participant shall, within 20 days from the date that the      notice is given by the Acquiring Participant pursuant to      section 17.1, decide whether such interest or right should become      subject to the terms of this Agreement.  If a favourable      decision is made, the Participants shall use reasonable endeavours to      acquire or stake such interest or right which shall become subject to this      Agreement and form part of the Properties (the “Additional      Properties”).  If it is determined to stake or otherwise      acquire such interest or right, the costs associated with staking or      acquiring the Additional Properties shall be costs of the Joint Venture      which shall be Exploration Costs if the acquisition occurs during the      Exploration Period, Feasibility Costs if the acquisition occurs during the      Feasibility Period, Development Costs if the acquisition occurs during the      Development Period and Operating Costs if the acquisition occurs during      the Operating Period. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | If      the members of the Executive Committee who are nominees of the      Non-Acquiring Participant decide not to participate in the acquisition or      staking of such right or interest pursuant to section 17.2, the      Acquiring Participant may itself acquire or stake such interest or right      on terms not more favourable to the Acquiring Participant than those      specified in the notice referred to in section 17.1 within 90 days of      the giving of such notice. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | The      provisions of this section 17 shall continue to be binding on each      Participant for a period of six months following the date on which this      Agreement terminates. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 18. | SHARING OF AND      CONFIDENTIAL NATURE OFINFORMATION |
|-----|-------------------------------------------------------|

| 18.1 | Subject      to section 18.2, each Participant agrees that all information      obtained or generated hereunder and the terms of this Agreement will be      the exclusive property of the Participants and will not be publicly      disclosed and this Agreement will not be provided to any third parties or      used other than for the activities contemplated hereunder except as      required by law or by the rules and regulations of any regulatory      authority or stock exchange having jurisdiction (in which case the      Participant being compelled to disclose such information shall give the      other Participant reasonable notice), or with the written consent of the      other Participant, such consent not to be unreasonably      withheld. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Consent      to disclosure of information pursuant to section 18.1 will not be      unreasonably withheld where a Participant wishes to disclose any such      information to a third party for the purpose of arranging financing for      its contributions hereunder or for the purpose of selling its Interest or      its rights as contemplated in this Agreement, provided that such third      party first enters into a written agreement with the disclosing      Participant that any such information not theretofore publicly disclosed      will be kept confidential and not disclosed to  others. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | LIMITED      CHARGING |
|-----|-----------------------|

| 19.1 | Notwithstanding      the provisions of section 20, but solely following the commencement      of the Development Period, a Participant may, at any time, hypothec,      mortgage, charge or otherwise encumber the whole or any part of its      Interest but only upon the condition that the holder of such Encumbrance      (the “Chargee”),      first enters into a written agreement with the other Participant in a form      satisfactory to counsel for such other Participant, binding upon the      Chargee, as set out in sections 19.2 and  19.3. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | If      the Chargee is not engaged, directly or indirectly, in metal mining or      exploration: |
|------|--------------------------------------------------------------------------------------------------|

|   | (1) | the      Chargee may take possession of the encumbering Participant’s Interest      subject to the terms of this Agreement;and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | any      disposition by the Chargee of the encumbering Participant’s Interest will      be conducted in accordance withsection 20. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | If      the Chargee is engaged, directly or indirectly, in metal mining or      exploration: |
|------|----------------------------------------------------------------------------------------------|

|   | (1) | the      Chargee will not enter into possession or institute any proceedings for      foreclosure or partition of the encumbering Participant’s Interest unless      the Chargee’s Encumbrance has become subject to the provisions of this      Agreement; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | the      Chargee’s remedies under such Encumbrance will be limited to the sale of      the whole (but only of the whole) of the encumbering Participant’s      Interest to the other Participant in accordance with section 20, or      failing such disposition, at a public auction to be held after 90 days      prior notice to the other Participant, such sale to be subject to the      purchaser entering into a written agreement with the  other |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20. | RESTRICTIONS ON      ALIENATION |
|-----|---------------------------------|

| 20.1 | No      Participant (the “Transferor”) will,      directly or indirectly, transfer, convey, assign, hypothec, mortgage or      grant an option in respect of or grant a right to purchase or in any      manner transfer or alienate or agree to transfer or alienate (a “Transfer”) any or all of      its Interest or its rights under this Agreement or in the Properties      (collectively, the “Rights”) except as      provided in this section 20. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | No      Transfer of Rights will be effective unless the Transferor has given      notice of the Transfer as required by this section 20, is not in      default of any term or provision of this Agreement at the time of Transfer      and until any proposed assignee, transferee, purchaser, grantee or      encumbrancer of such Interest or rights under this Agreement (“Transferee”) has      executed and delivered, in the case of the Transfer of all of a      Participant’s Interest or rights under this Agreement, to the remaining      Participant: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | An      agreement in form and substance satisfactory to counsel for the remaining      Participants, related to this Agreement, as applicable,      containing: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      covenant by such Transferee with the remaining Participants to perform all      of the obligations of the Transferor to be performed under this Agreement,      as applicable, in respect of the Interest or rights under this Agreement      as applicable, to be received by theTransferee; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a      provision subjecting any further Transfer of such Interest or rights under      this Agreement, as applicable, to the provisions of this section 20;      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | unless      consented to by the remaining Participants (such consent can include      reasonable conditions for the protection of the remaining Participants),      the Transferor will remain liable for the performance of all obligations      assumed by the Transferee in default of the performance thereof by the      Transferee.  For greater certainty, any transfer of one      Participant’s Interest must include an acknowledgement that the other      Participants have an Interest and other rights under this      Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | No      transfer permitted by this section 20 will relieve the Transferor of      any liability, whether accruing before or after such Transfer, which      arises out of operations conducted prior to such  Transfer. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Any      Participant (the “Offeror”) intending to      Transfer its Rights will first give notice to the other Participant (the      “Offeree”) of such      intention together with the terms and conditions on which the Offeror is      willing to Transfer its Rights; provided that the disposition of all of      the issued and outstanding shares in the capital stock of either      Participant to one or more third parties shall not constitute a Transfer      subject to the right of first refusal contemplated in this section      20.3. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.4 | Any      communication of an intention to sell pursuant to section 20 (the      “Offer”) will be      delivered in accordance with section 24 and will set out fully and      clearly all of the terms and conditions of any intended      Transfer. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5 | Any      Offer made as contemplated in section 20.4 will be open for      acceptance by the Offeree for a period of 50 days from the date of receipt      of the Offer by the Offeree. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.6 | If      the Offeree accepts the Offer within the required time, such acceptance      will constitute a binding agreement between the Offeror and the Offeree to      Transfer the Rights on the terms and conditions set out in such      Offer. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.7 | If      the Offeree does not accept the Offer within the required time, the      Offeror may complete a Transfer of Rights on terms and conditions no more      beneficial to the transferee thereof than those set out in the      Offer.  The Transfer must be completed within 90 days from the      expiration of the right of the Offeree to accept such Offer or the Offeror      must again comply with the provisions of this    section 20. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.8 | While      any Offer is outstanding, no other Offer may be made until the first      mentioned Offer is disposed of and any sale resulting therefrom completed      in accordance with the provisions of this  section 20. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.9 | If      the Transfer is the grant of a security interest by hypothec, mortgage,      deed of trust, pledge, lien or other encumbrance of the Interest of a      Participant to secure a loan or other indebtedness, such security interest      shall be expressly subordinate to the terms of this Agreement and the      rights and interests of the other Participants hereunder in that the      transferee pursuant to such Transfer shall covenant with the other      Participants in the document evidencing such transfer or in a separate      document ancillary thereto that upon any foreclosure or other enforcement      of rights in the security interest, such transferee shall be deemed to      have assumed the position of the encumbering Participant with respect to      this Agreement and the other Participants, and such transferee shall      comply with and be bound by the terms and conditions of this      Agreement. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.10 | Each      Participant agrees that its failure to comply with the restrictions set      out in this section 20 would constitute an injury and damage to the      other Participants impossible to measure monetarily and, in the event of      any such failure the other Participants will, in addition and without      prejudice to any other rights and remedies at law or in equity, be      entitled to injunctive relief restraining or enjoining any Transfer of its      Rights save in accordance with the provisions of this section 20, and      a Participant intending to make a Transfer or making a Transfer contrary      to the provisions of this section 20 hereby waives any defence it      might have in law to such injunctiverelief. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.11 | Notwithstanding      anything else in this Agreement, a Participant may Transfer its Rights, or      part thereof, to an Associated Company without the consent of the other      Participants but otherwise in compliance with this section 20      provided that the Transferor and the Transferee are jointly and severally      liable for the obligations of the Associated Company under this      Agreement. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.12 | In      the event that Crosshair undergoes a Change of Control, the surviving or      acquiring corporation or entity shall be responsible for and assume      Crosshair’s obligation to issue Crosshair Shares under sections 3.4 and      4.1, and, Paragon shall be entitled to receive, and shall accept, in lieu      of the number of Crosshair Shares to which Paragon was theretofore      entitled under sections 3.4 and 4.1, the kind and amount of shares and      other securities or property which Paragon would have been entitled to      receive as a result of such Change of Control if, on the effective date      thereof, Paragon had been the registered holder of the number of Crosshair      Shares to which Paragon was theretofore entitled under sections 3.4 and      4.1. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.13 | Notwithstanding      anything else in this section 20, nothing in this Agreement shall      prevent or restrict a Change of Control in either Participant or prevent      either Participant from issuing securities and there will be no      consequence to a Participant who issues securities or undergoes a Change      of Control. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21. | LIABILITY OF THE      OPERATOR AND OPERATOR’SINDEMNITIES |
|-----|----------------------------------------------------------------|

| 21.1 | The      Operator will indemnify and save the other Participant harmless from and      against any loss, cost, liability, claim, demand, damage, expense, injury      and death (including, without limitation, legal fees and disbursements)      resulting from fraud, negligence or wilful misconduct of the Operator or      its directors, officers, employees, contractors or agents in conducting      operations pursuant to thisAgreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2 | The      Operator will be indemnified by the Participants in accordance with their      respective Interests, as part of the Costs, from the acts and omissions of      the Operator and its directors, officers, contractors and agents provided      that an Operator will not be indemnified nor held harmless by the other      Participants from, and will be liable to the other Participants only for,      any loss, cost, liability, claim, demand, damage, expense, injury or death      (including, without limitation, legal fees and disbursements) resulting      from fraud, negligence or wilful misconduct of the Operator or its      directors, officers, employees, contractors or  agents. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | An      act or omission of the Operator or its directors, officers, employees,      contractors or agents done or omitted to be  done: |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | at      the unanimous direction, or within the scope of the unanimous direction,      of the relevant Executive Committee;or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | with      the unanimous concurrence of the relevant Executive Committee;      or |
|--------|-----|----------------------------------------------------------------------------------|

|   | (3) | unilaterally      and in good faith by the Operator to protect life or property, will be      deemed not to be negligent or resulting from wilful      misconduct. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | The      obligations of the Operator to indemnify and save harmless the other      Participant pursuant to this section 21 will be in proportion to such      other Participant’s Interest as at the date that the loss, cost,      liability, claim, demand, damage, expense, injury or death occurred or      arose. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 22. | NON-BINDING DISPUTE      RESOLUTION |
|-----|-------------------------------------|

| 22.1 | If      any Eligible Matter is referred to the provisions of this section 22,      such Eligible Matter shall be referred to an executive of each Participant      that has been appointed by their respective chief executive officers and      such appointed executives shall use their best efforts to resolve the      dispute within 20 business days of such appointment.  If such      appointed executives cannot resolve the dispute within that period, the      chief executive officer of each Participant shall use their reasonable      best efforts to resolve the matter amicably within 30 business days after      commencement of such chief executive officer’s resolution      efforts.  All time periods contemplated will be suspended during      the time that this non-binding dispute mechanism is    invoked. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23. | ENCUMBRANCE, PARTITION AND      INDEMNIFICATION |
|-----|-------------------------------------------------|

| 23.1 | Except      as otherwise provided in this Agreement, a Participant will not encumber      or permit or suffer to exist any hypothec, lien, charge or other      encumbrance on its Interest. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2 | No      Participant will partition or seek partition, whether through order of any      court or otherwise, of theProperties. |
|------|-------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | A      Participant will not have authority to act for or assume any obligations      or liabilities on behalf of the other Participants except such as are      specifically authorized pursuant to and in accordance with the terms of      this Agreement, and each Participant will defend, indemnify and hold      harmless the other Participants, and their directors, officers, employees,      contractors and agents, from and against any and all losses, expenses,      claims, damages, suits and demands whatsoever arising out of any act or      any assumption of any obligations by it done or undertaken on behalf of      the other Participants other than as provided  herein. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | Each      Participant indemnifies each other Participant from and against any loss,      damage, claim or expense which such other Participant may suffer or incur      as a result of any negligence of, or material breach of this Agreement by,      the first mentioned Participant, in connection with the Joint      Venture.  This indemnity will continue after the expiry or      termination of this Agreement for anyreason. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24. | NOTICES |
|-----|---------|

| 24.1 | Any      notice, direction or other instrument required or permitted to be given      under this agreement will be in writing and may be given by the delivery      of the same or by mailing the same by prepaid registered or certified mail      or by sending the same by telegram, telex, telecommunication, facsimile or      other similar form of communication, in each case addressed as      follows: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | If      to Paragon at: |
|--------|-----|------------------------|

----

|   | (2) | If      to Crosshair at: |
|--------|-----|--------------------------|

| 24.2 | Any      notice, direction or other instrumentwill: |
|------|-----------------------------------------------------|

|   | (1) | if      delivered, be deemed to have been given and received on the day it was      delivered; and |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (2) | if      sent by telecommunication, facsimile or other similar form of      communication, be deemed to have been given and received on the business      day following the day it was sosent. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | A      Participant may at any time give to the other Participant notice in      writing of any change of address of the Participant giving such notice and      from and after the giving of such notice the address or addresses therein      specified will be deemed to be the address of such Participant for the      purposes of giving noticehereunder. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25. | TERMINATION |
|-----|-------------|

| 25.1 | Other      than sections  17, 18, 21, 24 and 28.7 which provisions explicitly      survive termination according to their terms, this Agreement will      terminate in any of the followingcircumstances: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | the      written agreement by the Participants to  terminate; |
|--------|-----|---------------------------------------------------------------|

|   | (2) | pursuant      to section 27.1; |
|--------|-----|--------------------------------|

|   | (3) | if      Crosshair does not earn the Initial Option in accordance with section 3.2;      or |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (4) | such      time as there is only oneParticipant. |
|--------|-----|-------------------------------------------------|

| 25.2 | On      termination of this Agreement, the Participants will remain liable for      continuing obligations in respect of the Properties until final settlement      of all accounts and for any liability, whether it accrues before or after      termination, if it arises out of operations in respect of the Properties      during the term of the Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | Unless      terminated pursuant to section 25.1(2) or 26.1(4), promptly after      termination of this Agreement, the Operator will take all action necessary      to wind up the activities of the Joint Venture and all costs and expenses      incurred in connection with the termination of the Joint Venture will be      chargeable to the Joint Venture.  The Assets of the      Joint |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 25.4 | Unless      terminated pursuant to section 25.1(2) or 26.1(4), on termination of      this Agreement, the Operator will have the power and authority in respect      of the Properties, subject to control of the relevant Executive Committee,      to do all things on behalf of the Participants which are reasonably      necessary or desirable to: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | wind-up      operations of this joint venture;and |
|--------|-----|---------------------------------------------------|

|   | (2) | complete      any transaction and satisfy any obligation unfinished or unsatisfied at      the time of such termination, if the transaction or obligation arises out      of operations prior to suchtermination. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26. | FORCE      MAJEURE |
|-----|--------------------|

| 26.1 | The      obligations of a Participant pursuant to this Agreement shall be suspended      to the extent and for the period that performance of any obligation of      such Participant is prevented by any cause, whether foreseeable or      unforeseeable, and beyond its reasonable control, including, without      limitation: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | labour      disputes (however arising and whether or not employee demands are      reasonable or within the power of the Participant to    grant); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Acts      of God, including, without limitation, excessive cold or warm temperatures      or consistent periods of fog which prevent or render impractical the      conduct of exploration or development activity on the Properties for a      period of 30 days during any period of 90 consecutive  days; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | laws,      instructions or requests of any Governmental  Authority; |
|--------|-----|---------------------------------------------------------------------|

|   | (4) | any      litigation or administrative process which reasonably has the effect of      delaying Operations and judgments or orders of any court or      tribunal; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | inability      to obtain on reasonably acceptable terms any public or private licence,      permit or other authorisation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (6) | curtailment      or suspension of activities to remedy or avoid an actual or alleged,      present or prospective violation of Environmental  Laws; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | action      or inaction by any Governmental Authority that delays or prevents the      issuance or granting of any approval or authorization required to conduct      operations beyond the reasonable expectations of a Participant seeking      such approval or authorisation; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | acts      of war or conditions arising out of or attributable to war, whether      declared or undeclared; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (9) | riot; |
|--------|-----|-------|

|   | (10) | civil      strife, terrorism, insurrection or rebellion; including, without      limitation, any steps taken by any Governmental Authorities in response to      any such matters; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | fire,      explosion, earthquake; |
|--------|------|-----------------------------------|

|   | (12) | delay      or failure by suppliers or transporters of materials, parts, supplies,      services or equipment or by contractors’ or subcontractors’ shortage of,      or inability to obtain, labour, transportation, materials, machinery,      equipment, supplies, utilities orservices; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | accidents; |
|--------|------|------------|

|   | (14) | breakdown      of equipment, machinery orfacilities; |
|--------|------|------------------------------------------------------|

|   | (15) | inability      to obtain contractors or sub-contractors to provide materially time      critical goods and services due to shortages of competent and competitive      contractors or sub-contractors; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | actions      by aboriginal groups, native rights groups, environmental groups, or other      similar special interest groups, or any other cause whether similar or      dissimilar to the foregoing, |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | A      Participant relying on the provisions of section 26.1 will promptly      give written notice to the other Participant of the particulars of the      Intervening Event and all time limits imposed by this Agreement will be      extended from the date of delivery of such notice by a period equivalent      to the period of delay resulting from an Intervening  Event, |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.3 | Any      Participant that receives a notice of an Intervening Event pursuant to      section 26.4 shall have 30 days to dispute the validity of the      substance of Intervening Event |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26.4 | If      an Intervening Event is not disputed pursuant to section 26.3 or if      it is upheld in the processes under sections 22, then it will be      entered in a register of Intervening Events to be maintained by the      Operator which will set out all relevant details of each such Intervening      Event including the time and date of its commencement and the time and      date of its termination.  The contents of such register for each      Fiscal Year shall form part of the project record approved by the      Executive Committee after the completion of such Fiscal      Year.  The Operator shall also maintain all supporting      documentation relating to any Intervening Event until at least six years      after the date that the Development Decision is made or, if any      Intervening Event occurs after such date, for at least six years after      such Intervening Event. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.5 | A      Participant relying on the provisions of section 26.1 will take all      reasonable steps to eliminate any Intervening Event and, if possible, will      perform its obligations under this Agreement as far as commercially      practicable, but nothing herein will require such Participant to settle or      adjust any labour dispute or to question or to test the validity of any      law, rule, regulation or order of any duly constituted Governmental      Authority or to complete its obligations under this Agreement if an      Intervening Event renders completion commercially      impracticable. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.6 | A      Participant relying on the provisions of section 26.1 will give      written notice to the other Participant as soon as such Intervening Event      ceases to exist. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27. | DEFAULT |
|-----|---------|

| 27.1 | Notwithstanding      anything in this Agreement to the contrary, if any Participant (a “Defaulting Participant”)      is in default of any requirement herein set forth the Participant or      Participants affected by such default will give written notice to the      Defaulting Participant specifying the default and the Defaulting      Participant will not lose any rights under this Agreement, unless within      30 days after the giving of the first notice of default by an affected      Participant the Defaulting Participant has failed to take reasonable steps      to cure the default by the appropriate performance and if the Defaulting      Participant fails within such period to take reasonable steps to cure any      such default, the affected Participant will be entitled to seek any remedy      it may have on account of such default including terminating this      Agreement and/or seeking the remedies of specific performance, injunction      or damages. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28. | GENERAL |
|-----|---------|

| 28.1 | The      Participants 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 thisAgreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2 | All      references to moneys hereunder will be in Canadian funds and all      obligations will be in Canadian funds.  All payments to be made      to any Participant hereunder may be made by cheque or bank draft mailed or      delivered to such Participant at its address for  notice |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28.3 | Time      is of the essence in the performance of this  Agreement. |
|------|--------------------------------------------------------------------|

| 28.4 | The      headings of the sections of this agreement are for convenience only and do      not form a part of this Agreement nor are they intended to affect the      construction or meaning of anything herein contained or govern the rights      and liabilities of theParticipants. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.5 | This      Agreement will enure to the benefit of and be binding upon the      participants hereto and their respective successors and permitted assigns,      provided that any Transfer not made in accordance with this Agreement will      be null and void and of no force oreffect. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.6 | This      Agreement (including the schedules thereto) and the Underlying Agreements      constitute the entire agreement between the Participants 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 Participants with      respect to the subject matter herein. There are no implied covenants      contained in this Agreement other than those of good faith and fair      dealing. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.7 | This      Agreement will be governed by and construed according to the laws of the      Province of British Columbia and the federal laws of Canada applicable      therein and the Participants irrevocably submit to the exclusive      jurisdiction of the courts of the Province of British      Columbia. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.8 | This      Agreement may be executed by facsimile or other means of electronic      communication and in one or more counterparts, each of which will be      deemed to be an original, but all of which will constitute one and the      same instrument. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28.9 | This      Agreement may only be amended by the written agreement of all the      Participants hereto and their permitted successors and      assigns. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| CROSSHAIR      EXPLORATION & MINING CORP.  |
|-----------------------------------------------------|
|  By:                                           | “Mark      J. Morabito” |
|                                                | Mark      J. Morabito |
|                                                | President      and Chief Executive Officer    |
| PARAGON      MINERALS CORPORATION              |
|  By:                                           | “Michael      J. Vande Guchte” |
|                                                | Michael      J. Vande Guchte |
|                                                | President      and Chief ExecutiveOfficer |

----

Schedule 1.1(47)

| 1. | The      Fair Market Value of any Interest shall be calculated as the after tax net      present value of such Interest.  The calculation shall assume      the then prevailing market price of any applicable metals, and a nominal      discount rate of 10%.  The Fair Market Value shall be calculated      as of the date the notice is received by one party from the other that it      intends to exercise its rights, to sell all or any part of its Interest to      the other party under thisAgreement. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Fair      Market Value shall be calculated with reference to CIM Val as the      applicable principles of valuation by a panel of two qualified independent      valuators who are employees of an international mining consultancy or      engineering firm (each an “Independent Valuator”)      retained by the Participants, one of which shall be designated by Paragon      and the other of which shall be designated by Crosshair and each such      Independent Valuator will base its determination on the life of a mine      plan approved by a Qualified Person (as defined in National Instrument      43-101) the identity of whom shall be agreed upon by the      Participants.  If the Participant cannot agree as to the      identity of the Qualified Person within 10 days, the President of the      Canadian Institute of Mining, Metallurgy and Petroleum shall make such      selection. Such designation shall be made as soon as practicable and if a      Participant fails to appoint an Independent Valuator within 30 days of the      Appraisal Date, the one appointed by the other Participant shall determine      the Fair Market Value. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Each      Participant shall upon reasonable notice, provide to each Independent      Valuator and its representatives full access during normal business hours      to the Subject Area, the books and records of the Joint Venture that      pertain to the Subject Area and shall cause such additional financial and      operating data and other information as the Independent Valuators and      their representatives shall from time to time reasonably request to be      provided. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Each      Independent Valuator shall submit its written determination on the Fair      Market Value to each Participant within 60 days after the date of its      retention. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | If      the higher determination of the two Independent Valuators is not greater      than 110% of the lower determination, the Fair Market Value shall be the      average of such two determinations.  If the higher determination      is greater than 110% of the lower determination, then such two Independent      Valuators shall attempt in good faith to alter their determinations of      Fair Market Value so that the greater determination is within 110% of the      lower determination. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | If      the two Independent Valuators are unsuccessful they shall jointly select      within 10 days after the date on which they were informed of such      difference, a third Independent Valuator to be retained by the      Participants.  Such third Independent Valuator shall deliver its      written determination of the Fair Market Value in 30 days after its      retention and the |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7. | The      fees and expenses of such Independent Valuators shall be shared equally by      the Participants. |
|----|------------------------------------------------------------------------------------------------------------|

----

Schedule 1.1(68)

----

|   | (a) | all      smelting, minting and refining costs, and treatment charges and penalties      at the smelter or refinery including, but without being limited to,      deductions charged for metal losses and penalties for      impurities; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      costs of transporting the Products from the Properties to a smelter, mint      or refinery including, without restricting the generality of the      foregoing, any and all costs of insurance in respect    thereto; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all      sampling, assaying and representation charges in connection with sampling      and assaying carried out after the Products have left the      Properties; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | costs      and expenses of marketing the Products, if any;  and |
|--------|-----|-----------------------------------------------------------------|

|   | (e) | taxes      levied by any government on the value of Products produced or sold, but      excluding income taxes if such charges are actual costs payable out of the      proceeds received from a bona fide purchaser or are shown as deductions      therefrom. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Arm's      Length Provision |
|--------|-----|-----------------------------|

|   | (b) | Payment      of the Royalty |
|--------|-----|-----------------------------|

----

|   | (c) | Provisional      Payments |
|--------|-----|---------------------------|

|   | (d) | Adjustments |
|--------|-----|-------------|

|   | (i) | Any      adjustments to charges, costs, deductions or expenses imposed upon or      given to the Payor but not taken into account in determining previous      royalty payments; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Any      adjustments in the number of appropriate units of measurement of Products,      beneficiated by the Payor, or previously credited to the Payor by a      smelter, refiner or bona fide purchaser of Products shipped or sold by the      Payor; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Any      adjustments in Mineral Content and average percentage recovery;      and |
|--------|-------|-----------------------------------------------------------------------------------|

|   | (iv) | Any      payments that have not otherwise been credited against previous royalty      payments. |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | (e) | Annual      Final Report |
|--------|-----|--------------------------|

----

|   | (f) | Assignment      by Payor |
|--------|-----|--------------------------|

|   | (g) | Assignment      by Royalty Holder |
|--------|-----|-----------------------------------|

|   | (i) | the      amount of any royalty payable hereunder shall be settled only with the      Royalty Holder or an authorized nominee (herein collectively called the      “Nominee”) as      designated by notice to the Payor (such notice to be executed by all      parties entitled to receive any part of the Royalty), and such settlement      shall be final and binding upon all interested parties and the Payor shall      not be required to make any accounting to any person save such      Nominee; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | payment      of the royalty shall be made only to or to the order of the Nominee “In Trust” and such      payment shall constitute a full and complete discharge to the Payor and it      shall have no obligation to see to the distribution of any such      payment; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Payor may settle disputes arising hereunder with the Nominee and such      settlement shall be final and binding upon all interested      parties; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      Payor may rely upon any direction, advice or authorization signed by the      Nominee and may act thereon as if the same was signed by all interested      parties; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the      Payor shall not be required to deal with any person except the Nominee.      Each interested party shall exercise all of their respective rights only      through the Nominee and shall require each of their respective assignees      to agree in writing to be bound by the provisions  hereof. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | Records      and Provision for Audit to ResolveObjections |
|--------|-----|-----------------------------------------------------------|

|   | (i) | Royalty      Running With the Properties |
|--------|-----|------------------------------------------|

----

Schedule 1.1(86)

----

Schedule 1.1(90)

|        Property  |        Licence |        Claims |        Sq. Km |        Hectares |        NTS AREA      |        Issuance Date    |        Renewal Date     |        Report Due        |
|----------------------------|---------------------|--------------------|--------------------|----------------------|---------------------------|------------------------------|------------------------------|-------------------------------|
|        GP             |        15169M  |        256    |        64     |        6400     |        12A/16        |        June 21, 2002    |        June 21, 2012    |        August 20, 2009   |
|        GP             |        15170M  |        254    |        63.5   |        6350     |        12A/16        |        June 21, 2002    |        June 21, 2012    |        August 20, 2009   |
|        GP             |        15171M  |        256    |        64     |        6400     |        12A/16        |        June 21, 2002    |        June 21, 2012    |        August 20, 2009   |
|        GP             |        15172M  |        225    |        56.25  |        5625     |        2D/13, 12A/16 |        June 21, 2002    |        June 21, 2012    |        August 20, 2009   |
|        GP             |        11057M  |        42     |        10.5   |        1050     |        12A/16        |        October 28, 2004 |        October 28, 2009 |        December 28, 2009 |
|                       |        Totals: |        1033   |        258.25 |        25,825   |                      |                         |                         |                          |

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Schedule 1.1(102)

| 1. | May      22, 2002 Letter Agreement between William Mercer and Rubicon Minerals      Corporation on the Golden Promise Property, as amended on July 17, 2003,      July 27, 2003, and September 1,2003. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | June      14, 2004 Purchase and Royalty Letter Agreement between Stephen Courtney      and Newfoundland & Labrador Minerals Ltd. and Rubicon Minerals      Corporation on the OB Property, NL. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Schedule14.7

|        DPI = |    A + B +      C |
|-------------------|----------------------------------|
|              |    D      + E + F |

|   | (a) | Assume      that the parties maintain their respective 70% and 30% Interests and the      Initial Deemed Investment + Exploration Costs + Feasibility Cost = $30      million Crosshair will be deemed to have spent 0.7 x $30 million = $21      million |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Paragon      will be deemed to have spent 0.3 x $30 million = $9    million. |
|--------|------------------------------------------------------------------------------|

|   | (b) | Assume      development is complete and each Participant funded its pro rata share of      a $200 million budget so Crosshair contributed $140 million and Paragon      contributed $60 million. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Assume      the first budget for the Operating Period is $20 million, $20 million in      costs is incurred and Paragon elects not to  contribute. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  DPI      = |         $9 million + $60 million + 0                       |        x 100 =      27.6% =      Paragon's Interest |
|------------------|----------------------------------------------------------------------|----------------------------------------------------------|
|             |         $30 million + $200      million + $20 million |                                                     |

|   | (d) | Make      same assumptions as in (a) and (b) in Example1. |
|--------|-----|-----------------------------------------------------------|

|   | (e) | Assume      the first Budget for the Operating Period is $20 million and Paragon only      funds $3 million of its $6 million CostShare. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

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|  DPI      = | $9      million + $60 million +$3 million     |        x 100 = 28.8% = Paragon's Interest |
|------------------|-----------------------------------------------|------------------------------------------------|
|             | $30      million + $200 million + $20 million |                                           |

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Schedule 17.1

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