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THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
TO THE PROVISIONS OF A MINERAL PROPERTY PURCHASE AGREEMENT ENTERED INTO BY
FINSBURY EXPLORATION LTD. AND BEARCLAW CAPITAL CORP. ON OCTOBER 4, 2011, AS
AMENDED FROM TIME TO TIME, (THE PURCHASE AGREEMENT)AND SUCH SECURITIES
ARE NOT TRANSFERABLE ON THE BOOKS OF QUARTZ MOUNTAIN RESOURCES LTD. EXCEPT IN
ACCORDANCE AND COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS CERTIFICATE AND
OF THE PURCHASE AGREEMENT.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A
DAY AFTER THE DATE OF ISSUE HEREOF.

|PRINCIPAL SUM: | $ 650,000 Canadian Funds
|-------------- | ------------------------
|               |                         
|DATE OF ISSUE: | August 20, 2012         
|               |                         
|MATURITY DATE: | October 31, 2013        

|1. | FOR VALUE RECEIVED, QUARTZ MOUNTAIN RESOURCES LTD. (the
      Company) promises to pay on the Maturity Date to the order of
      BEARCLAW CAPITAL CORP. (Bearclaw) the Principal Sum under this
      convertible debenture (the Debenture) plus all accrued and unpaid
      Interest as hereinafter set forth.                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2. | The Principal Sum outstanding on the Debenture will bear
      interest (Interest) from August 1, 2012 at a rate of 8% per annum
      calculated and payable in cash quarterly in arrears on or before each
      Interest Payment Date (which shall mean the 1st day of each of
      January, April, July and October in each calendar year, and for any
      particular period for which Interest is payable, the Interest Payment Date
      shall be the date falling on the 1st day of the next January, April, July
      or October) until the earlier of:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|3. | The first Interest Payment Date is October 1,
  2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|4. | Bearclaw acknowledges and agrees that, prior to the
      Maturity Date (as defined below), it may not demand from the Company the
      payment of the Principal Sum, the Interest (except as described in Section
      2) or any outstanding portion thereof.                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|5. | The issuance of the Debenture will not restrict or
      prevent the Company from obtaining any other financing, or from issuing
      additional securities or rights subsequent to issuance of the
      Debenture.                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|6. | The Debenture shall not entitle Bearclaw to any rights as
      a shareholder of the Company, including without limitation, voting
      rights.                                                                                                                                                                                                                                                                                                                                                                                                                        

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|7. | At any time after the Date of Issue and before the
      Maturity Date, Bearclaw may, from time to time in a series of conversions
      or pursuant to a single conversion for the whole of the Principal Sum, at
      its option, upon 10 days written notice (the Conversion Notice)
      to the Company, convert all or any part of the outstanding Principal Sum
      under the Debenture, plus all accrued and unpaid Interest thereon up to,
      but excluding, the day that is the 10th day (or the next business day
      thereafter) from the date of receipt by the Company of the Conversion
      Notice (each such date, a Conversion Date), into common shares in
      the capital of the Company (the Shares) as follows:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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|8.  | No fractional Shares shall be issued and if any
      conversion provided for herein would result in Bearclaw being entitled to
      receive a fraction of a Share, the Company shall instead issue upon such
      conversion the next lesser whole number of Shares and Bearclaw shall not
      be entitled to any cash payment in respect of any fractional
    interest.                                                                                                                                  
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|9.  | The Company shall, on October 31, 2013 (the Maturity
      Date), redeem the Debenture in whole plus all accrued and unpaid
      Interest on any outstanding Principal Sum to the extent that the Debenture
      has not been converted or redeemed as of the Maturity Date and any such
      outstanding Principal Sum and all accrued and unpaid Interest thereon will
      be payable by the Company to Bearclaw on the Maturity Date.                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|10. | The Debenture will remain convertible, in accordance with
      Section 7, by Bearclaw into Shares until 4:00pm (Vancouver time) on the
      date prior to the Maturity Date, provided that a Conversion Notice has
      been delivered to the Company at least 10 days prior to the Conversion
      Date.                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|11. | Subject to Section 10:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|12. | The Company hereby covenants and agrees with Bearclaw
      that if this Debenture becomes mutilated, lost, destroyed or stolen, the
      Company shall, upon receipt of a declaration of loss from Bearclaw in a
      form satisfactory to the Company, issue and deliver to Bearclaw a new
      Debenture of like date and tenor as the one mutilated, lost, destroyed or
      stolen, in exchange for and in place of and upon cancellation of such
      mutilated, lost, destroyed or stolen Debenture.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13. | This Debenture is not transferable or assignable by
      Bearclaw without the prior written consent of the
  Company.                                                                                                                                                                                                                                                                                                                                                                                          

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|14. | Failure of Bearclaw to enforce any of its rights or
      remedies under this Debenture will not constitute a waiver of the rights
      of Bearclaw to enforce such rights and remedies thereafter.                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|15. | Any capitalized terms in this Debenture that are not
      otherwise defined herein shall bear the meanings associated with such
      terms in the Purchase Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|16. | This Debenture (and any transactions, documents,
      instruments or other agreements contemplated in this Debenture) shall be
      construed and governed exclusively by the laws in force in British
      Columbia and the laws of Canada applicable therein, and the courts of
      British Columbia (and Supreme Court of Canada, if necessary) shall have
      exclusive jurisdiction to hear and determine all disputes arising
      hereunder. The undersigned irrevocably attorns to the jurisdiction of said
      courts and consents to the commencement of proceedings in such
    courts.

IN WITNESS WHEREOF the Company has caused its duly authorized
signatory to execute and deliver this Debenture to Bearclaw as of the day and
year first above written.



QUARTZ MOUNTAIN RESOURCES LTD.



Per:   
__________________________________          
Authorized Signatory

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