----

|   | (a) | the      Company agrees to sell to each of the Underwriters and each of the      Underwriters agrees, severally, and not jointly, to purchase from the      Company the respective percentage of the Purchased Shares set forth      opposite the respective names of the Underwriters in Section 18, at a      purchase price of $3.05 per share for Purchased Shares (the “Offering Price”);and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      the event and to the extent that the Underwriters shall exercise the      election to purchase any or all Over-Allotment Shares (the “Over-Allotment Option”)as provided herein, the      Company agrees to sell to each of the Underwriters and each of the      Underwriters agrees, severally, and not jointly, to purchase from the      Company the respective percentage of Over-Allotment Shares set forth      opposite the name of such Underwriter in Section 18 at a purchase price      equal to the Offering Price per share for Over-Allotment      Shares. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1)  | In      this Agreement: |
|-----------|-------------------------|

----

----

----

| (2) | Headings, etc. The      division of this Agreement into sections, subsections, paragraphs and      other subdivisions and the insertion of headings are for convenience of      reference only and shall not affect the construction or interpretation of      this Agreement. Unless something in the subject matter or context is      inconsistent therewith, references herein to sections, subsections,      paragraphs and other subdivisions are to sections, subsections, paragraphs      and other subdivisions of thisAgreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Currency. Except as      otherwise indicated, all amounts expressed herein in terms of money refer      to lawful currency of Canada and all payments to be made hereunder shall      be made in such currency. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | The      Company shall, as soon as possible and not later than 12:00 noon (Toronto      time) on September 26, 2007 have prepared and filed under the Canadian      Securities Laws, and shall have obtained a receipt therefor from each of      the Qualifying Jurisdictions (in the form of a preliminary MRRS Decision      Document) by 5:00 p.m. (Toronto time) on September 26, 2007, for the      Preliminary Prospectus and other related documents relating to the      proposed distribution in Canada of theShares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Unless      otherwise agreed to in writing by WWCM and RBC on behalf of the      Underwriters, the Company shall use its reasonable commercial efforts to      satisfy all comments with respect to the Preliminary Prospectus and the      Company shall, not later than 5:00 p.m. (Toronto time) on October 5, 2007,      have made all its reasonable commercial efforts to have prepared and filed      under the Canadian Securities Laws, and shall have obtained a receipt      therefor from each of the Qualifying Jurisdictions (in the form of a final      MRRS Decision Document) by 5:00 p.m. (Toronto time) on such date, the      Final Prospectus and other related documents relating to the proposed      distribution in Canada of the Shares; and shall have taken all other steps      and proceedings that may be necessary to be taken by the Company in order      to qualify the Shares for distribution (or distribution to the public, as      the case may be) in each of the other Qualifying Jurisdictions by the      Underwriters under the Canadian Securities Laws by 5:00 p.m. (Toronto      time) on such date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Until      the date on which the distribution of the Shares is completed, the Company      will promptly take, or cause to be taken, all additional steps and      proceedings that may from time to time be required under Applicable      Securities Laws to continue to qualify the distribution of the Shares or,      in the event that the Shares have, for any reason, ceased so to qualify,      to so qualify again the Shares, as applicable, for      distribution. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | The      Company shall deliver without charge to the Underwriters, as soon as      practicable and in any event no later than September 26, 2007 in the case      of the Preliminary Prospectus and the Preliminary U.S. Private Placement      Memorandum, and no later than noon (Toronto time) on October 6, 2007 (or      other such date that is the day following the filing of the Final      Prospectus) in the case of the Final Prospectus and the Final U.S. Private      Placement Memorandum and thereafter from time to time during the      distribution of the Shares, as many commercial copies of the Preliminary      Prospectus, the Preliminary U.S. Private Placement Memorandum, the Final      Prospectus and the Final U.S. Private Placement Memorandum, as the case      may be, (and in the event of any Prospectus Amendment, such Prospectus      Amendment) as the Underwriters may reasonably request in advance for the      purposes contemplated by the relevant securities laws. The Company will      similarly cause to be delivered to the Underwriters, commercial copies of      any Supplementary Material required to be delivered to purchasers or      prospective purchasers of the Shares. Each delivery of the Preliminary      Prospectus, the Preliminary U.S. Private Placement Memorandum, the Final      Prospectus, the Final U.S. Private Placement Memorandum or any      Supplementary Material will have constituted and constitute the Company’s      consent to the use of the Preliminary Prospectus, the Preliminary U.S.      Private Placement Memorandum, the Final Prospectus, the Final U.S. Private      Placement Memorandum and any Supplementary Material by the Underwriters      for the distribution of the Shares in the Offering Jurisdictions in      compliance with the provisions of this Agreement and Applicable Securities      Laws. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Each      delivery of the Preliminary Prospectus, the Preliminary U.S. Private      Placement Memorandum, the Final Prospectus, the Final U.S. Private      Placement Memorandum and any Supplementary Material to the Underwriters by      Western in accordance with this Agreement will constitute the      representation and warranty of Western to the Underwriters that (except      for information and statements relating solely to the Underwriters and      furnished by them specifically for use in the Preliminary Prospectus, the      Preliminary U.S. Private Placement Memorandum, the Final Prospectus and      the Final U.S. Private Placement Memorandum under the heading “Plan of      Distribution”), at the respective times of  delivery: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      information and statements contained in each of the Preliminary      Prospectus, the Preliminary U.S. Private Placement Memorandum, the Final      Prospectus, the Final U.S. Private Placement Memorandum and any      Supplemental Material, together with the documents incorporated by      reference therein: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | are      true and correct in all material respects and contain no      misrepresentation; and |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (ii) | constitute      full, true and plain disclosure of all material facts relating to the      Shares, and Western and its Material Subsidiaries considered as a      whole; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | no      material fact has been omitted from any of the Offering Documents that is      required to be stated in the document or is necessary to make the      statements therein not misleading in the light of the circumstances in      which they were made; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to      the knowledge of the Company based on the advice of its legal counsel and      auditors, each of the Preliminary Prospectus, the Final Prospectus and the      Supplemental Material, as applicable, complies in all material respects      with the form requirements of Canadian Securities Laws;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to      the knowledge of the Company based on the advice of its legal counsel and      auditors, each of the Preliminary U.S. Private Placement Memorandum and      the Final U.S. Private Placement Memorandum complies in all material      respects with U.S. Securities Laws. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Western      will also deliver to the Underwriters, without charge, contemporaneously      with, or prior to the filing of, the Preliminary Prospectus and the Final      Prospectus, unless otherwiseindicated: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      copy of the Preliminary Prospectus and the Final Prospectus, each manually      signed on behalf of Western, by the persons and in the form required by      Canadian Securities Laws; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | a      copy of the Final U.S. Private Placement Memorandum in the form required      by U.S. Securities Laws; |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (c) | evidence      satisfactory to the Underwriters by the date of the Final Prospectus that      Western has applied for the approval (or conditional approval) for the      listing and posting for trading on the TSX of the Shares and received such      approval (or conditional approval) subject only to satisfaction by Western      of customary post-closing conditions imposed by the TSX in similar      circumstances (the “Standard Listing Conditions”); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | in      the case of the Final Prospectus, a “long-form” comfort letter or letters      dated the date of the Final Prospectus, in form and substance satisfactory      to the Underwriters and their counsel, acting reasonably, addressed to the      Underwriters, from the Western Auditor, and based on a review completed      not more than two (2) Business Days prior to the date of such letter, with      respect to financial and accounting information relating to Western,      included in the Offering Documents, which letter shall be in addition to      the auditor’s report contained in the Final Prospectus and any auditor’s      comfort letter addressed to the Securities Commissions and filed with or      delivered to the Securities Commissions under the Canadian Securities      Laws. Each such letter shall further statethat: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | such      auditors are independent with respect to the Company within the      meaning of Applicable SecuritiesLaws;  |
|--|-----|----------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | that      in the opinion of such auditors, the audited financial      statementsof      the Company included in the Offering Documents comply in allmaterial      respects with the applicable accounting requirements of theApplicable      Securities Laws; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | that      they have performed the procedures set forth in SAS No. 100 and      CICA      Handbook Section 7200 on the unaudited financial statements included      in the Offering Documents and nothing has come to their attention      that caused them to believe that said unaudited financial statements      did not comply in all material respects with the applicable accounting      requirements of U.S. Securities Laws and Canadian Securities      Laws; and |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | shall      address such other matters as the Underwriters shall reasonably      request. |
|--|------|------------------------------------------------------------------------------------------|

| (4) | Opinions,      comfort letters and other documents substantially similar to those      referred to in this section of this Agreement will be delivered to the      Underwriters and Western, and their respective counsel, as applicable,      with respect to any Supplementary Material, contemporaneously with, or      prior to the filing of, any Supplementary  Material. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | Western      will promptly inform the Underwriters in writing during the period prior      tothe      completion of the distribution of the Shares of the full particulars      of: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any      material change (whether actual, anticipated, threatened, contemplated, or      proposed by, to, or against) (whether financial or otherwise) in the      assets, liabilities (contingent or otherwise), business, affairs,      operations, assets, financial condition, capital or prospects of Western,      considered on a consolidated basis; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      material fact that has arisen or has been discovered and would have been      required to have been stated in any of the Offering Documents had that      fact arisen or been discovered on, or prior to, the date of the Offering      Documents, as the case may be; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      change in any material fact or any misstatement of any material fact      contained in any of the Offering Documents, or the existence of any new      material fact; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any      change in applicable laws, materially and adversely affecting, or which      would reasonably be expected to materially and adversely affect, the      condition (financial or otherwise), or the properties, business,      prospects, affairs, operations, assets or liabilities of the Company and      its subsidiaries on a consolidated basis, the Shares or the distribution      thereof, under the Final Prospectus or the Final U.S. Private Placement      Memorandum, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to      render any of the Offering Documents or any Supplementary Material, as      they exist taken together in their entirety immediately prior to such      change or new material fact, misleading or untrue in any respect or would      result in any of such documents, as they exist taken together in their      entirety immediately prior to such change or material fact, containing a      misrepresentation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | would      result in any of the Offering Documents or any Supplementary Material, as      they exist taken together in their entirety immediately prior to such      change or material fact, not complying with any Applicable Securities      Laws; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | would      reasonably be expected to have a material effect on the market price or      value of any of the Shares or constitute a Material Adverse Effect;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      Company will notify the Underwriters promptly, and confirm the notice in      writing: |
|-----|-------------------------------------------------------------------------------------------------|

----

|   | (a) | when      any supplement to the Offering Documents or any Supplementary Material      shall have been filed; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (b) | of      any request by any Securities Commission to amend or supplement the      Preliminary Prospectus or the Final Prospectus or for additional      information; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | of      the issuance by any Securities Commission or any Exchange of any order      having the effect of ceasing or suspending the distribution of the Shares      or the trading in any securities of the Company, or of the institution or,      to the knowledge of the Company, threatening of any proceedings for any      such purpose. The Company will use reasonable commercial efforts to      prevent the issuance of any such stop order or of any order preventing or      suspending such use or such order ceasing or suspending the distribution      of the Shares or the trading in the shares of the Company and, if any such      order is issued, to obtain the lifting thereof at the earliest possible      time. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Western      shall comply with section 57 of the Securities Act (Ontario) and with the      comparable provisions of U.S. Securities Laws, and Western will prepare      and will file promptly at the request of the Underwriters, any      Supplementary Material, which, in the opinion of the Underwriters and      their counsel, acting reasonably, may be necessary or desirable, and will,      until the distribution of the Shares is complete, otherwise comply with      all applicable filing and other requirements under Applicable Securities      Laws arising as a result of such fact or change necessary to continue to      qualify the Shares for distribution in each of the Offering      Jurisdictions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The      Company and the Underwriters acknowledge that the Company is required by      Canadian Securities Laws to prepare and file a Prospectus Amendment, if at      any time prior to the completion of the distribution of the Shares, the      Final Prospectus (as then amended) contains a misrepresentation. The      Company will promptly prepare and file with the securities authorities in      the Qualifying Jurisdictions any amendment or supplement thereto which in      the opinion of the Underwriters and the Company, each acting reasonably,      may be necessary or advisable to correct such      misrepresentation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | In      addition, if, during the period from the date hereof to the later of the      Closing Date and the date of the completion of the distribution of the      Shares, it shall be necessary to file a Prospectus Amendment to comply      with any Applicable Securities Laws, the Company shall, in co-operation      with the Underwriters and their counsel, make any such filing as soon as      reasonably possible. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | In      addition to the provisions of Subsections 4(1) and 4(2), Western will, in      good faith, discuss with the Underwriters any change, event, development      or fact, contemplated, anticipated, threatened, or proposed in Subsections      4(1) and 4(2) that is of such a nature that there may be reasonable doubt      as to whether written notice should be given to the Underwriters under      Section 4 of this Agreement and will consult with the Underwriters with      respect to the form and content of any Supplementary Material proposed to      be filed by Western, it being understood and agreed that no such      Supplementary Material will be filed with any Securities Commission until      the Underwriters and their legal counsel have been given a reasonable      opportunity to review and approve such material, acting      reasonably. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | Canadian Legal Opinions.      The Underwriters receiving at the Time of Closing favourable legal      opinions from Cassels Brock & Blackwell LLP, Canadian counsel to      Western, as to the qualification of the Shares for sale to the public and      as to other matters governed by the laws of Ontario (with separate legal      opinions provided by local counsel in other Canadian provinces) and may      rely as to matters of fact on certificates of officers, public and      exchange officials or of the auditor or transfer agent of Western), to the      effect set forth below: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Western      having been incorporated and existing under the laws of the Province of      Ontario; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | Western      having the corporate capacity and power to own and lease its properties      and assets and to conduct its business as described in the Final      Prospectus and to execute and deliver this Agreement and to carry out the      transactions contemplated hereby under the laws of the Province of      Ontario; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | the      authorized share capital of Western being as described in the Final      Prospectus; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (d) | all      necessary corporate action having been taken by Western to authorize the      execution and delivery of this Agreement and the performance of its      obligations hereunder; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | this      Agreement having been duly executed and delivered by Western and      constituting a legal, valid and binding obligation of, and is enforceable      against Western, in accordance with its terms (subject to bankruptcy,      insolvency or other laws affecting the rights of creditors generally,      general equitable principles including the availability of equitable      remedies and the qualification that no opinion need be expressed as to      rights to indemnity, orcontribution); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the      execution and delivery by Western of this Agreement, the fulfilment of the      terms hereof by Western, and the issue, sale and delivery on the Closing      Date of the Purchased Shares (and subsequently the Over-Allotment Shares,      if issued) to the Underwriters as contemplated herein, not constituting or      result in a breach of or a default under, and do not creating a state of      facts which, after notice or lapse of time or both, will constitute or      result in a breach of, and will not conflict with, any of the terms,      conditions or provisions of the articles or by-laws of      Western; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | all      necessary corporate action having been taken by Western to authorize the      creation, execution, issuance and delivery of the  Shares; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | all      documents required to be filed by Western and all proceedings required to      be taken by Western under Canadian Securities Laws having been filed and      taken in order to qualify the distribution of the Shares in each of the      Qualifying Jurisdictions through investment dealers or brokers registered      under the applicable laws thereof who have complied with the relevant      provisions thereof and no other documents will be required to be filed,      proceedings taken, or approvals, permits, consents or authorizations      obtained under Canadian Securities Laws to permit the trading in the      Qualifying Jurisdictions of the Shares, through registrants registered      under Canadian Securities Laws or in circumstances in which there is an      exemption from the registration requirements of such applicable      laws; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the      attributes of the Shares conforming in all respects to the description      thereof      in the Final Prospectus; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (j) | the      Shares having been conditionally approved for listing on the TSX subject      only to the Standard ListingConditions; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

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|   | (k) | the      Purchased Shares (and subsequently the Over-Allotment Shares, if issued)      having been validly issued by Western and being fully-paid and      non-assessable shares in the capital ofWestern; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | the      Company being a reporting issuer (or equivalent) under the securities laws      of British Columbia, Alberta, Manitoba and Ontario, and not being included      on a list of defaulting reporting issuers maintained by the securities      regulators of British Columbia, Alberta, Manitoba and    Ontario; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | the      statements under the headings “Eligibility for Investment” in the Final      Prospectus being true and correct; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (2) | U.S. Legal Opinion. At      the Closing Time, the Underwriters shall have received the favourable      opinion, dated the Closing Date, of United States counsel for the Company,      in form and substance satisfactory to United States counsel for the      Underwriters (acting reasonably), as to the tax disclosure included in the      Final Prospectus and to the effect that it is not necessary in connection      with the offer and sale of the Shares in the United States to register the      Shares under the U.S. SecuritiesAct. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Title Opinion. At the      Closing Time, the Underwriters shall have received the favourable opinion,      dated the Closing Date, of United States counsel for the Company, in form      and substance satisfactory to United States counsel for the Underwriters      (acting reasonably), as to the title and ownership interest in the      Company’s material properties; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Canadian Local Counsel      Opinion. The Underwriters receiving at the Time of Closing,      favourable legal opinions of local Canadian counsel as to the      qualification of the Shares for sale to the public and as to other matters      governed by the laws of the jurisdictions in Canada which Cassels Brock      & Blackwell LLP is not qualified to practice, in each case in a form      acceptable in all reasonable respects to counsel to the Underwriters,      Stikeman Elliott LLP; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Secretary Certificates.      The Underwriters having received certificates dated the Closing      Date signed by the Corporate Secretary of Western or another officer      acceptable to the Underwriters, acting reasonably, in form and content      satisfactory to the Underwriters, acting reasonably, with respect      to: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a)  | the      constating documents of Western; |
|--|-----------|-------------------------------------------|

|   | (b) | the      resolutions of the directors of Western relevant to the Offering,      allotment, issue (or reservation for issue) and sale of the Shares and, as      applicable, the authorization of this Agreement, and the other agreements      and transactions contemplated by this Agreement;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c)  | the      incumbency and signatures of signing officers of  Western; |
|--|-----------|---------------------------------------------------------------------|

----

| (6) | Certificates of Status.      Western having delivered to the Underwriters, at the Time of      Closing, certificates of status and/or compliance, where issuable under      applicable law, for each of the Material Subsidiaries and Western, each      dated within two (2) days of the ClosingDate; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Closing Certificates.      Western having delivered to the Underwriters, at the Time of      Closing, a certificate dated the Closing Date addressed to the      Underwriters and signed by the Chief Executive Officer and Chief Financial      Officer of Western (or such other senior officers as acceptable to the      Underwriters), certifying for and on behalf of Western, and not in their      personal capacities, after having made due inquiries, with respect to the      following matters: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Western      having complied with all the covenants and satisfied all the terms and      conditions of this Agreement on its part to be complied with and satisfied      at or prior to the Time of Closing; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | no      order, ruling or determination (including any stop order) having the      effect of ceasing or suspending trading in any securities of the Company      or prohibiting the sale of the Shares or any of the Company’s issued      securities having been issued and no proceeding for such purpose being      pending or, to the knowledge of such officers, threatened by any      securities regulatory authority or stock exchange in Canada or the United      States; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | subsequent      to the respective dates as at which information is given in the Final      Prospectus, there having not occurred a Material Adverse Effect, or any      change or development involving a prospective Material Adverse Effect, or      the coming into existence of a new material fact, other than as disclosed      in the Final Prospectus or any Supplementary Material, as the case may      be; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      Company being a “reporting issuer” or its equivalent under the securities      laws of each of the Qualifying Jurisdictions, being eligible in accordance      with the provisions of NI 44-101 to file a short form prospectus with the      Canadian Securities Administrators and no material change relating to the      Company on a consolidated basis having occurred since the date hereof with      respect to which the requisite material change report has not been filed      and no such disclosure having been made on a confidential basis that      remains subject to confidentiality;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      representations and warranties of Western contained in this Agreement and      in any certificates of Western delivered pursuant to or in connection with      this Agreement, being true and correct as at the Time of Closing, with the      same force and effect as if made on and as at the Time of Closing, after      giving effect to the transactions contemplated by this      Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Certificate of Transfer Agent.      Western having delivered to the Underwriters at the Time of      Closing, a certificate of Computershare Investor Services Inc., as      registrar and transfer agent of the common shares, which certifies the      number of common shares issued and outstanding on the date prior to the      Closing Date; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (9) | Bring Down Auditor Comfort      Letters. Western having caused the Western Auditor to deliver to      the Underwriters at the Time of Closing a comfort letter, dated the      Closing Date, in form and substance satisfactory to the Underwriters,      acting reasonably, bringing forward to the date which is two (2) Business      Days prior to the Closing Date, the information contained in the comfort      letter referred to in Subsection Section      3(3)(d); |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | No Termination. The      Underwriters not having exercised any rights of termination set forth in      Section 14; |
|------|--------------------------------------------------------------------------------------------------------------------|

| (11) | Adverse Proceedings. At      the Closing Time, no order, ruling or determination having the effect of      ceasing or suspending trading in any securities of the Company or      prohibiting the sale of the Shares or any of the Company’s issued      securities being issued and no proceeding for such purpose being pending      or, to the knowledge of the Company, threatened by any securities      regulatory authority or stock exchange in Canada or the United      States; |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Exchange. At the      Closing Time, the Shares having been listed, or conditionally listed, for      trading on the TSX; and |
|------|------------------------------------------------------------------------------------------------------------------------------|

| (13) | Other Documentation.      The Underwriters having received at the Time of Closing such      further certificates, opinions of counsel and other documentation from      Western as may be contemplated herein or as the Underwriters or their      counsel may reasonably require, provided, however, that the Underwriters      or their counsel shall request any such certificate or document within a      reasonable period prior to the Time of Closing that is sufficient for      Western to obtain and deliver such certificate, opinion or document, and      in any event, at least two (2) Business Days prior to the Time of      Closing. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Western      hereby represents and warrants to the Underwriters, intending that the      same may be relied upon by the Underwriters  that: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Good Standing of Western.      Western has been duly incorporated or organized and is validly      existing under the laws of Ontario, and has all requisite corporate power      and authority to carry on its business, as now conducted and as presently      proposed to be conducted by it, and to own, lease and operate its      properties and assets and to carry out the transactions contemplated by      this Agreement; and that the Company is duly qualified as an      extra-provincial corporation to transact business and is in good standing      (in respect of the filing of annual returns where required or other      information filings under applicable corporations information legislation)      in each jurisdiction in which such qualification is required, whether by      reason of the ownership or leasing of property or the conduct of business,      except where the failure to so qualify or to be in good standing would not      reasonably be expected to result in a Material Adverse    Effect. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Good Standing of Subsidiaries.      At the Time of Closing, Western’s only subsidiaries will be the      Material Subsidiaries. At the Time of Closing, each Material Subsidiary      will be a corporation or company incorporated or established, organized      and existing under the laws of the jurisdiction of its incorporation, will      be current and up-to-date with all material filings required to be made      under the laws of its jurisdiction of incorporation and will have the      requisite corporate power and capacity to own, lease and operate its      properties and to conduct its business as now carried on by it, and will      be duly qualified to transact business and will be in good standing in      each jurisdiction in which such qualification is required, whether by      reason of the ownership or leasing of property or the conduct of business,      except where the failure to be so would not reasonably be expected to      result in a Material Adverse Effect. At the Time of Closing, all of the      issued and outstanding shares in the capital of each Material Subsidiary      will have been duly authorized and validly issued, will be fully paid and      non-assessable and will be directly or indirectly beneficially owned by      Western, free and clear of any Lien (except pursuant to any security      interest pursuant to its amended and restated credit facility originally      dated March 30, 2007 as amended and restated May 31, 2007 (the “Credit Facility”));and none of the outstanding      shares of the capital stock of any Material Subsidiary was issued in      violation of pre-emptive or similar rights of any security holder of such      subsidiary. Other than as disclosed in the Final Prospectus, there exist      no options, warrants, purchase rights, or other contracts or commitments      that could require Western to sell, transfer or otherwise dispose of any      capital stock of any Material Subsidiary. No act or proceeding has been      taken by or against the Material Subsidiaries in connection with their      liquidation, winding-up orbankruptcy. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Compliance with Prospectus and      Registration Requirements. The Company meets the general      eligibility requirements for use of a short form prospectus under National      Instrument 44-101. No order suspending the distribution of the Shares has      been issued by the Securities Commissions under Canadian Securities Laws      and no proceedings for that purpose have been instituted or are pending      or, to the knowledge of the Company, are contemplated by any Securities      Commissions, and any request on the part of any Securities Commissions for      additional information has been compliedwith. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Final Prospectus complied and will comply in all material respects with      Canadian Securities Laws as interpreted and applied by the Securities      Commissions; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | none      of the Offering Documents nor any amendment or supplement thereto      contained or will contain an untrue statement of a material fact or omit      to state a material fact required to be stated therein, or necessary to      make the statements therein, in light of the circumstances in which they      were made, not misleading; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iii)  | each      of the Offering Documents, and any Supplementary Material or any amendment      or supplement thereto constituted and will constitute full, true and plain      disclosure of all material facts relating to the Company and its Material      Subsidiaries, considered as one enterprise, and the Shares, and did not      and will not include an untrue statement of a material fact or omit to      state a material fact necessary in order to make the statements therein,      in the light of the circumstances under which they were made, not      misleading, except that the representations and warranties contained in      paragraph (ii) above and this paragraph (iii) do not apply to statements      relating solely to the Underwriters or furnished by the Underwriters      concerning the Underwriters under the section “Plan of Distribution”      contained in the Offering Documents, any Prospectus Amendment or      Supplementary Material. |
|--|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Share Capital of Western.      The share capital of Western described under the heading      “Description of Securities Distributed” in the Final Prospectus is true      and correct. At the Time of Closing, but prior to giving effect to the      issuance of any Shares, the issued share capital of Western will consist      only of common shares, and no other equity or voting    shares. |
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|   | (e) | Authorization and Description      of Shares. The Shares have been duly authorized for issuance and      sale to the Underwriters pursuant to this Agreement and when issued and      delivered by Western pursuant to this Agreement, against payment of the      consideration set forth herein, will be validly issued as fully paid and      non-assessable shares. The Shares conform and will conform to all      statements relating thereto contained in the Offering Documents and such      description conforms to the rights set forth in the instruments defining      the same. The issuance of the Shares is not subject to the pre-emptive      rights of any shareholder of Western (or such rights have been irrevocably      waived), and all corporate action required to be taken by Western for the      authorization, issuance, sale and delivery of the Shares has been validly      taken at the date hereof. |
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|   | (f) | Absence of Rights. No      person has any right, agreement or option, present or future, contingent      or absolute, or any right capable of becoming a right, agreement or      option, for the issue or allotment of any unissued shares of Western or      any other agreement or option, for the issue or allotment of any unissued      shares of Western or any other security convertible into or exchangeable      for any such shares or to require Western to purchase, redeem or otherwise      acquire any of the issued and outstanding shares of Western except as      otherwise disclosed in the OfferingDocuments. |
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|   | (g) | Financial Statements      The Financial Information incorporated by reference in the Offering      Documents and the notesthereto, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  (i) | present      fairly, in all material respects, the financial position of Western and      its subsidiaries, and the statements of operations, retained earnings,      cash flow from operations and changes in financial  information      of Western and its subsidiaries for the periods specified in such      Financial Information; |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | have      been prepared in conformity with generally accepted accounting principles      in the United States of America (“U.S. GAAP”)in accordance with and to the      full extent required by applicable U.S. Securities Laws;    and |
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|   | (iii) | as      it relates to the audited financial statements of Western for the      financial years ended 2006, 2005 and 2004, do not contain any untrue      statement of a material fact or omit to state a material fact required to      be stated or that is necessary to make a statement not misleading in light      of the circumstances under which it was made, with respect to the period      covered by the FinancialInformation. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Liabilities. Neither      Western nor its subsidiaries, have any liabilities, obligations,      indebtedness or commitments, whether accrued, absolute, contingent or      otherwise, which are not disclosed or referred to in the Financial      Information or referred to or disclosed herein, other than liabilities,      obligations, or indebtedness or commitments (i) incurred in the normal      course of business, or (ii) which would not have a Material Adverse      Effect. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | No Default. The Company      is not in default or breach or violation of, and the execution and      delivery of, and the performance of, and compliance with, the terms of      this Agreement do not and will not: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | result      in any breach of, or constitute a default under, and do not and will not      create a state of facts which, after notice or lapse of time or both,      would result in a breach of or constitute a default under, any term or      provision of the constating documents, or resolutions of the Company, any      applicable laws, mortgage, note, contract, agreement (written or oral),      instrument, lease or other document to which the Company is a party or by      which it is bound, or any judgment, decree, order, statute, rule or      regulation applicable to the Company or any subsidiaries, which default or      breach might reasonably be expected to have a Material Adverse Effect;      or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | create      a right for any other party to terminate, accelerate or in any way alter      any other rights existing under any indenture, mortgage, note, contract,      agreement (written or oral), instrument, lease or other document to which      the Company or any subsidiary is a party or by which it is bound which,      upon exercise of such right, might reasonably be expected to have a      Material Adverse Effect; |
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----

|   | (j) | Independent Accountants.      The accountants who reported on and certified the Financial      Information, are independent public accountants as required by the U.S.      Securities Act and the rules and regulations thereunder, and are      independent with respect to the Company within the meaning of the Canadian      Institute of Chartered AccountantsHandbook. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Accounting Controls.      Western and each of its Material Subsidiaries maintains, and will      maintain, at all times prior to the Closing Date a system of internal      accounting controls sufficient to provide reasonable assurance that (i)      transactions are executed in accordance with management’s general or      specific authorizations, (ii) transactions are recorded as necessary to      permit preparation of financial statements in conformity with U.S. GAAP      and to maintain asset accountability, (iii) access to assets is permitted      only in accordance with management’s general or specific authorization,      and (iv) the recorded accountability for assets is compared with the      existing assets at reasonable intervals and appropriate action is taken      with respect to any differences. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Title to Real Property.      At the Time of Closing, all of the leases, subleases and agreements      in real property (other than mining claims, mineral or exploration      concessions and other mineral property rights) material to the business of      Western and the Material Subsidiaries, considered as one enterprise, and      under which Western or any of the Material Subsidiaries has an interest as      described in the Offering Documents, are in full force and effect, and      neither Western nor any Material Subsidiary has received any notice of any      material claim of any sort that has been asserted by anyone adverse to the      rights of Western or any Material Subsidiary under any of the lease or      subleases mentioned above, or affecting or questioning the rights of      Western or such Material Subsidiary to the continued possession of the      property under any such lease, sublease, or agreement, except as disclosed      in the Offering Documents. |
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|   | (m) | Mining Claims. The      material mining licenses claims, concessions, exploration, extraction and      other mineral property rights that are set forth in the title opinion (the      “January Title Opinion”)provided to WWCM pursuant to      the Company’s most recent equity financing completed in January 2007      (collectively, the “Mining Claims”)is, in all material respects      (but subject to non-material variations since the date of the January      Title Opinion), a complete and accurate list of all such rights held by      Western and the Material Subsidiaries. All Mining Claims of Western and      the Material Subsidiaries that are held by Western or the Material      Subsidiaries, are in good standing, are valid and enforceable, are free      and clear of any material Liens or charges (except pursuant to security      interests granted under the Credit Facility) and no material royalty is      payable in respect of any of them, except as set out in the Offering      Documents. Except as set out in the Offering Documents, no other property      rights are necessary for the conduct of Western’s or the Material      Subsidiaries’ business as it is currently being conducted; and there are      no material restrictions on the ability of Western or the Material      Subsidiaries to use, transfer or otherwise exploit any such property      rights except as required by applicable law. Except as disclosed in the      Offering Documents, the Material Subsidiaries are the owners of Mining      Claims necessary to carry on their current and proposed mining and      exploration activities as disclosed in the Offering Documents. Except as      disclosed in the Offering Documents, Mining Claims held by Western or the      Material Subsidiaries cover the properties required by Western for such      purposes as contemplated by the Technical  Report. |
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|   | (n) | Mineral Information.      The information set forth in the Offering Documents relating to the      estimates by Western and the Material Subsidiaries of the mineral      resources and mineral reserves have been reviewed and verified by the      qualified persons described under the heading “Interests of Experts” and,      in all cases, the resource information has been prepared in accordance      with Canadian industry standards set forth in National Instrument 43-101      -“Standards of Disclosure for Mineral Projects”, and the information upon      which the estimates of resources and reserves were based, was, at the time      of delivery thereof, complete and accurate in all material respects and      there have been no material adverse changes to such information since the      date of delivery or preparation thereof. The Technical Report is a      “current” technical report for the purposes of National Instrument 43-101      “Standards of Disclosure for MineralProjects”. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Environmental Laws.      Except as described in the Offering Documents, (a) neither Western      nor any of the Material Subsidiaries is in violation of any federal,      provincial, state, local, municipal or foreign statute, law, rule,      regulation, ordinance, code, policy or any judicial or administrative      interpretation thereof, including any judicial or administrative order,      consent decree or judgment, relating to pollution or protection of human      health, the environment (including, without limitation, ambient air,      surface water, groundwater, land surface or subsurface strata) or      wildlife, including, without limitation, laws and regulations relating to      the release or threatened release of chemicals, pollutants, contaminants,      wastes, toxic substances, hazardous substances, petroleum or petroleum      products (collectively, “Hazardous Materials”)or to the manufacture,      processing, distribution, use, treatment, storage, disposal, transport or      handling of Hazardous Materials (collectively, “Environmental Laws”)except where such violations      would not be reasonably expected, on an individual or aggregate basis, to      have a Material Adverse Effect, (b) Western and the Material Subsidiaries      have all permits, authorizations and approvals required under any      applicable Environmental Laws and are each in compliance with their      requirements, except where the failure to have such permits,      authorizations and approvals would not reasonably be expected, on an      individual or aggregate basis, to have a Material Adverse Effect, and (c)      there are no pending or threatened administrative, regulatory or judicial      actions, suits, demands, demand letters, claims, liens, notices of      non-compliance or violation, investigation or proceedings relating to any      Environmental Laws against Western or any of the Material Subsidiaries,      which if determined adversely, would reasonably be expected to have a      Material Adverse Effect. |
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|   | (p) | Possession of Licenses and      Permits. Western and the Material Subsidiaries possess such      permits, certificates, licenses, approvals, consents and other      authorizations (collectively, “Governmental Licenses”)issued by the appropriate      federal, provincial, state, local or foreign regulatory agencies or bodies      necessary to own, lease, stake or maintain the Mining Claims and other      property interests and to conduct the business now operated, including to      conduct mining and processing operations on the Mesquite Project, except      where the failure to possess such permits, certificates, licenses,      approvals, consents or authorizations would not reasonably be expected to      have a Material Adverse Effect or where such failure has been disclosed or      referred to in the Offering Documents. Western and the Material      Subsidiaries are in compliance, in all material respects, with the terms      and conditions of all such Governmental Licenses. All of the Governmental      Licenses are valid and in full force and effect. Neither Western nor any      of the Material Subsidiaries have received any notice of proceedings      relating to the revocation or material modification of any such      Governmental Licenses. |
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|   | (q) | Insurance. Western and      each Material Subsidiary maintains policies of insurance in force as at      the date hereof that adequately cover all those risks reasonably and      prudently foreseeable in the current operation and conduct of their      respective businesses which, having regard to the nature of such risk and      the relative costs of obtaining insurance, it is reasonable to seek rather      than to provide for self-insurance. |
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|   | (r) | Executive Compensation.      The directors and officers of Western and their compensation      arrangements with Western, whether as directors, officers or employees of      Western are as disclosed in the Offering  Documents. |
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|   | (s) | Material Contracts. All      of the material contracts and agreements of Western and of the Material      Subsidiaries not made in the ordinary course of business (collectively the      “Material Contracts”)have been disclosed in the      Offering Documents and if required under the Applicable Securities Laws      have been filed with the applicable Securities Commissions. Neither      Western nor any Material Subsidiary has received notification from any      party claiming that Western is in material breach or default under any      Material Contract. |
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|   | (t) | No Material Adverse Effect.      Since June 30, 2006, (a) there has been no change in the condition      (financial or otherwise), or in the properties, capital, affairs,      prospects, operations, assets or liabilities of Western and the Material      Subsidiaries considered on a consolidated basis, whether or not arising in      the ordinary course of business which would give rise to a Material      Adverse Effect, and (b) there have been no transactions entered into by      Western or any of the Material Subsidiaries, other than those in the      ordinary course of business, which are material with respect to Western      and the Material Subsidiaries considered as one enterprise, in each case,      except as disclosed in the OfferingDocuments. |
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|   | (u) | Absence of Proceedings.      There is no action, suit, proceeding, inquiry or investigation      before or brought by any court or governmental agency, governmental      instrumentality or body, domestic or foreign, now pending or, to the      knowledge of Western, threatened against or affecting Western or any      Material Subsidiary, which is required to be disclosed in the Offering      Documents and which is not so disclosed, or which if determined adversely,      would have a Material Adverse Effect, or which if determined adversely      would materially and adversely affect the consummation of the transactions      contemplated in this Agreement or the performance by Western of its      obligations hereunder. |
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|   | (v) | Transfer Agent. Each of      Computershare Investor Services Inc., at its offices in Toronto, Ontario,      and Computershare Trust Company, Inc., at its offices in Golden, Colorado,      has been duly appointed as transfer agent and registrar for the Common      Shares. |
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|   | (w) | Absence of Further      Requirements. No filing with, or authorization, approval, consent,      license, order, registration, qualification or decree of any court or      governmental authority or agency is necessary or required for the      performance by the Company of its obligations hereunder, in connection      with the proposed distribution, issuance or sale of the Shares hereunder,      or the consummation of the transactions contemplated by this Agreement,      except (a) such as have been already obtained or as may be required under      the U.S. Securities Laws, and (b) such as have been obtained, or as may be      required, under Canadian SecuritiesLaws. |
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|   | (x) | Unlawful Payment.      Neither Western nor any of its Material Subsidiaries nor, any      employee or agent of Western or any Material Subsidiary, has made any      unlawful contribution or other payment to any official of, or candidate      for, any federal, state, provincial or foreign office, or failed to      disclose fully any contribution, in violation of any law, or made any      payment to any foreign, Canadian, United States or provincial or state      governmental officer or official, or other person charged with similar      public or quasi-public duties, other than payments required or permitted      by applicable laws. |
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|   | (y) | Brokerage Fees. Other      than the Underwriters, there is no person, firm or corporation acting or,      to the knowledge of Western, purporting to act at the request of Western,      who is entitled to any brokerage or finder’s fees in connection with the      Offering contemplated herein. |
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|   | (z) | Agreement. This      Agreement has been duly authorized, executed and delivered by Western and      is a legal, valid and binding obligation of, and is enforceable against,      Western in accordance with its terms (subject to bankruptcy, insolvency or      other laws affecting the rights of creditors generally, the availability      of equitable remedies and the qualification that rights to indemnity and      waiver of contribution may be contrary to public  policy). |
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|   | (aa) | Directors and Officers.      None of the directors or officers of Western are now, or have ever      been, subject to an order or ruling of any securities regulatory authority      or stock exchange prohibiting such individual from acting as a director or      officer of a public company or of a company listed on a particular stock      exchange. |
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|   | (bb) | No Cease Trade Orders.      No securities commission or any similar regulatory authority in any      jurisdiction has issued any order which is currently outstanding      preventing or suspending trading in any securities of the Company, no such      proceeding is, to the knowledge of the Company, pending, contemplated or      threatened, and the Company is not in default of any requirement of      Canadian Securities Laws which would have a Material Adverse Effect on the      Offering or the Company. |
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|   | (cc) | Reporting Issuer Status.      The Company is a “reporting issuer” in the provinces of British      Columbia, Alberta, Ontario andManitoba. |
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|   | (dd) | Short Form Eligibility.      Western is eligible to file a prospectus in the form of a short      form prospectus under National Instrument 44-101 of the Canadian      Securities Administrators. |
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|   | (ee) | Disclosure. Western has      filed all documents or information required to be filed by it with the      Securities Commissions or the SEC under Applicable Securities Laws. Each      such document or item of information filed by Western, as of its date, did      not contain any untrue statement of a material fact or omit to state a      material fact required to be stated therein or necessary to make the      statements therein, in light of the circumstances under which they were      made, not misleading at the time at which it was filed with applicable      securities regulators, including, without limitation, the Securities      Commissions and the SEC. The Company has not filed any confidential      material change report with any securities regulatory authority or      regulator or any Exchange or any document for confidential treatment with      the SEC that at the date hereof remains  confidential. |
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|   | (ff) | Passive Foreign Investment      Company. Western was not a passive foreign investment company (a      “PFIC”) within the meaning of section 1297 of the Code for its taxable      year ended December 31, 2006 and expects that it will not constitute a      PFIC for its current taxable year ending December 31,  2007. |
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|   | (gg) | Labour Practices.      Neither Western no any Material Subsidiary is engaged in any unfair      labour practice; except for matters which would not, individually or in      the aggregate, have a Material Adverse Affect and that, to the Company’s      knowledge: |
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|   | (i) | there      is no unfair labour practice complaint pending or threatened against      the Company or a Material Subsidiary and no grievance or arbitration      proceeding arising out of or under collective bargaining agreements is      pending or threatened; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | no      strike, labour dispute, slowdown or stoppage is pending or threatened      against the Company or a Material  Subsidiary; |
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|   | (iii) | there      is no union representation dispute currently existing concerning       the      employees of the Company or a Material  Subsidiary; |
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|   | (iv) | there      are no union organizing activities currently taking place concerning      employees of the Company or a Material Subsidiary;    and |
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|   | (v) | there      has been no violation of any federal, state, provincial, local or foreign      law relating to discrimination in the hiring, promotion or pay of      employees, and applicable wage or hour laws or any provision of the      Employee Retirement Income Security Act of 1974 or the rules and      regulations promulgated thereunder concerning the Company or a Material      Subsidiary. |
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|   | (hh) | Forward Looking Statements.      Each “forward looking statement” contained or incorporated by      reference in the Offering Documents, if any, has been made or reaffirmed      with a reasonable basis and in goodfaith. |
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|   | (ii) | Trading in Securities.      Neither the Company, nor any Material Subsidiary nor to the      Company’s knowledge any of their respective directors, officers or      controlling persons has taken, directly or indirectly, any action      designed, or which has constituted or might reasonably be expected to      cause or result in the stabilization or manipulation of the price of any      security of the Company to facilitate the sale or resale of the      Shares. |
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| Section      8  | Representations      and Warranties of the Underwriters |
|----------------------|---------------------------------------------------------|

| (1)  | Each      Underwriter hereby severally, and not jointly, represents and warrants      that: |
|-----------|---------------------------------------------------------------------------------------------|

|   | (a) | it      is, and will remain so, until the completion of the Offering,      appropriately registered under Applicable Securities Laws so as to permit      it to lawfully fulfil its obligations hereunder;  and |
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|   | (b) | it      has all requisite corporate power and authority to enter into this      Agreement and to carry out the transactions contemplated under this      Agreement on the terms and conditions set forth  herein. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Any      offer or sale of the Shares in the United States or to U.S. person will be      made in accordance      with Schedule “A” which forms part of this    Agreement. |
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| (3) | The      representations and warranties of each of the Underwriters contained in      this Agreement shall be true at the Time of Closing as though they were      made at the Time of Closing and they shall not survive the completion of      the transactions contemplated under this Agreement but shall terminate on      the completion of the distribution of the  Shares. |
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| Section      9  | Additional      Covenants of Western |
|----------------------|--------------------------------------|

|   | (a) | Stock Exchange Listings.      Western will file or cause to be filed with the TSX all necessary      documents and will take, or cause to be taken, all necessary steps to      ensure that the Shares have been approved (or conditionally approved) for      listing and for trading on the TSX, prior to the filing of the Final      Prospectus with the Securities Commissions, subject only to satisfaction      by Western of the Standard Listing Conditions, and Western shall      thereafter, fulfill the Standard Listing Conditions within the time period      prescribed by the TSX; |
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|   | (b) | Other Filings. Western      will make all necessary filings, obtain all necessary regulatory consents      and approvals (if any) and Western will pay all filing fees required to be      paid in connection with the transactions contemplated in this      Agreement; |
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|   | (c) | Press Releases. Subject      to compliance with applicable law, any press release of Western relating      to the Offering will be provided in advance to WWCM and RBC on behalf of      the Underwriters, and Western will use its reasonable commercial efforts      to agree to the form and content thereof with WWCM and RBC on behalf of      the Underwriters, prior to the releasethereof; |
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|   | (d) | Use of Proceeds.      Western confirms its intention to use the net proceeds from the      purchase and sale of the Shares in accordance with the descriptions set      forth under the heading “Use of Proceeds” in the Final Prospectus. The      Underwriters acknowledge that there may be circumstances where, for sound      business reasons, a re-allocation of funds may be necessary or advisable;      and |
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|   | (e) | Blackout Period.      Western agrees that neither Western, nor any of its subsidiaries      nor officers nor directors shall, directly or indirectly, offer, sell or      issue for sale or resale any Shares or financial instruments or securities      convertible into or exercisable or exchangeable for Shares, or agree to or      announce any such offer, sale or issuance, except for (i) the issuance of      securities pursuant to an exercise of already issued convertible      securities or existing agreements, (ii) grant of such options or other      securities under the Issuer’s incentive plans, and (iii) issuance of      securities in connection with strategic merger and acquisition      transactions, for a period of 90 days from Closing Date without the prior      written consent of WWCM and RBC, such consent not to be unreasonably      withheld. Western shall use its commercially reasonable best efforts to      cause each of its directors and officers to enter into lock-up agreements      in form and substance satisfactory to WWCM and RBC evidencing their      agreement to be bound by the terms of this Subsection  9(e); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Section      10  | Covenants      of the Underwriters |
|-----------------------|------------------------------------|

| (1) | The      Underwriters hereby severally, and not jointly, covenant and agree with      Western      the following: |
|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (a) | Offering Jurisdictions and      Offering Price. During the period of distribution of the Shares by      or through the Underwriters, the Underwriters will offer and sell Shares      to the public only in the Offering Jurisdictions or where they may      lawfully be offered for sale or sold, at an offering price not exceeding      the offering price set forth on the cover page of the Final Prospectus.      For the purposes of this Subsection 10(1)(a) the Underwriters shall be      entitled to assume that the Shares are qualified for distribution in any      Qualifying Jurisdiction where an MRRS Decision Document for the Final      Prospectus shall have been obtained from the applicable Securities      Commission following the filing of the Final  Prospectus. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Compliance with Securities      Laws. The Underwriters will comply with and shall require any other      person participating in offer or sell activities to comply with Applicable      Securities Laws in connection with the offer to sell and the distribution      of the Shares, and all such selling persons will be registered (or have      such exemptions from registration requirements) under the Applicable      Securities Laws as may be required. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Completion of Distribution.      The Underwriters will use their reasonable commercial efforts to      complete the distribution of the Shares as promptly as possible after the      Time of Closing and all parties agree that the distribution of the Shares      shall be deemed to have been completed at 5:00 p.m. (Toronto time) on the      Over-Allotment Closing Date. The Underwriters will notify Western when, in      the Underwriters’ opinion, the Underwriters have ceased the distribution      of the Shares, and, within 30 days after completion of the distribution,      will provide Western, in writing, with a breakdown of the number of Shares      distributed in each of the Offering Jurisdictions where that breakdown is      required by a Securities Commission or the SEC, as the case may be, for      the purpose of calculating fees payable to, or making filings with, that      Securities Commission or SEC, as the case may  be. |
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| (2) | Liability on Default.      No Underwriter shall be liable to Western under this Section 10      with      respect to a default by any of the other    Underwriters. |
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| Section      11  | Closing |
|-----------------------|---------|

| (1) | Location of Closing.      The Offering of the Purchased Shares will be completed at the      offices of Cassels Brock & Blackwell LLP in Toronto, Ontario at the      Time of Closing on the ClosingDate. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | Certificates. At the      Time of Closing, subject to the terms and conditions contained in this      Agreement, Western shall deliver to the Underwriters a certificate or      certificates representing the Shares against payment of the purchase price      by certified cheque, bank draft or wire transfer dated the Closing Date      payable to Western. Western will, at the Time of Closing and upon such      payment of the aggregate Offer Price to Western, make payment in full of      the Underwriting Fee and such amounts as are due pursuant to Section 17      (the “Expenses”)which shall be made by      Western directing WWCM to withhold the Underwriting Fee and the Expenses      from the payment of the aggregate Offer Price. Certificates shall be      registered in such names as the Underwriters may  request. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      12  | Over      Allotment Option Closing |
|-----------------------|------------------------------------|

| (1) | Closing. In the event      that the Over-Allotment Option is exercised by the Underwriters and any of      the Over-Allotment Shares are purchased by the Underwriters, payment of      the purchase price for, and delivery of certificates for, such      Over-Allotment Shares shall be made at the offices mentioned in Section 11      above, or at such other place as shall be agreed upon by the Underwriters      and the Company, on the Over-Allotment Closing Date as specified in the      written notice from the Underwriters to the Company giving notice of the      exercise of the Over-AllotmentOption. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Payments and Certificates.      At the Time of Closing, if any, for the exercise of the      Over-Allotment Option, subject to the terms and conditions contained in      this Agreement, the Company shall deliver to the Underwriters a      certificate or certificates representing the Over-Allotment Shares against      payment of the purchase price by certified cheque, bank draft or wire      transfer dated the Over-Allotment Closing Date payable to the Company. The      Company will, at the time of the Over-Allotment Closing Date and upon such      payment of the purchase price to the Company, make payment in full of the      Underwriting Fee in respect of the Over-Allotment Shares by directing WWCM      to withhold the Underwriting Fee and the Expenses from the payment of the      aggregate Over-Allotment Share purchase price. Certificates shall be      registered in such names as the Underwriters may  request. |
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| Section      13  | Compensation      of the Underwriters |
|-----------------------|---------------------------------------|

| (1) | Underwriting Fee on Shares.      Western shall pay to the Underwriters at the Time of Closing a fee      (the “Underwriting Fee”)equal to $0.1525 per Share      sold pursuant to the terms of this Agreement (being 5% of the aggregate      gross cash proceeds received from the sale of each of the Shares) in      consideration of the services to be rendered by the Underwriters in      connection with the Offering. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Underwriting Fee on      Over-Allotment Shares. Western shall pay to the Underwriters at the      closing of the exercise of the Over-Allotment Option, if any, the      Underwriting Fee per Over-Allotment Shares  purchased. |
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| Section      14  | Termination      Rights |
|-----------------------|-------------------------|

| (1) | All      terms and conditions set out in this Agreement shall be construed as      conditions and any breach or failure by Western to comply with any such      conditions in favour of the Underwriters shall entitle the Underwriters to      terminate their obligation to purchase the Shares by written notice to      that effect given to Western prior to the Time of Closing on the Closing      Date. Western shall use its reasonable commercial efforts to cause all      conditions in this Agreement to be satisfied. It is understood that the      Underwriters may waive in whole or in part, or extend the time for      compliance with, any of such terms and conditions without prejudice to      their rights in respect of any subsequent breach or non-compliance,      provided that to be binding on the Underwriters, any such waiver or      extension must be in writing. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In      addition to any other remedies which may be available to the Underwriters      in respect of any default, act or failure to act, or non-compliance with      the terms of this Agreement by Western, the Underwriters shall be      entitled, at their option, to terminate and cancel, without any liability      on the part of the Underwriters, their obligations under this Agreement to      purchase the Shares by giving written notice to Western at any time at or      prior to the Time of Closing on the Closing  Date: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if,      in relation to Western, any inquiry, investigation or other proceeding      (whether formal or informal) is commenced, threatened or announced, or any      order or ruling is issued by any exchange or market, or any other      regulatory authority in Canada, or the United States, or if any law or      regulation under or pursuant to any statute of Canada or of any province      thereof, or of the United States or any state or territory thereof or, is      promulgated or changed which moratorium, inquiry, investigation,      proceeding, order, ruling, law or regulation, in the reasonable opinion of      the Underwriters (or any of them), operates to prevent or materially      restrict trading of the common shares or the distribution of the Shares or      could reasonably be expected to have a Material Adverse Effect, including      as to the market price or value of theShares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      there is, in the reasonable opinion of any of the Underwriters: (i) a      material change; (ii) a change in any material fact; or (iii) a new      material fact that has arisen, or an Underwriter become aware of any      undisclosed material change or material fact, that could reasonably be      expected to have a Material AdverseEffect; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if      there should develop, occur or come into effect or existence any event,      action, state, condition or major financial occurrence of national or      international consequence, including without limiting the generality of      the foregoing, any military conflict, civil insurrection, or any terrorist      action (whether or not in connection with such conflict or insurrection),      which, in the Underwriters’ reasonable opinion (or any one of them),      materially adversely affects or involves, or will materially adversely      affect or involve, the Canadian, or United States financial markets and/or      prevent or materially restrict the trading of the Common Shares or the      distribution of the Shares, may result in a Material Adverse      Effect; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | if      the Company fails to file the Preliminary Prospectus, or the Final      Prospectus, and obtain receipts therefore, within the time limits set      forth in this Agreement; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | if      Western is in material breach of any term, condition or covenant of this      Agreement, or any representation or warranty given by Western in this      Agreement becomes or is materiallyfalse. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | If      the obligations of the Underwriters are terminated under this Agreement      pursuant to these termination rights, the liability of Western to the      Underwriters shall be limited to the obligations under Sections 15, 16 and      17. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      15  | Indemnity |
|-----------------------|-----------|

| (1) | Western      (for the purposes of this Section 15, the “Indemnifiers”)covenants and agrees to      protect, indemnify, and save harmless, each of the Underwriters and their      respective U.S. broker-dealer affiliates, and each of their respective      directors, officers, employees, affiliates and agents and each person, if      any, who controls any Underwriter or its U.S. broker-dealer affiliates      within the meaning of section 15 of the U.S. Securities Act or section 20      of the U.S. Exchange Act (individually, an “Indemnified Party”and collectively, the “Indemnified Parties”),against all losses (other      than loss of profits), claims, damages, suits, liabilities, costs,      damages, or expenses caused or incurred, whether directly or indirectly,      by reason of: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any      statement (except for statements relating solely to the Underwriters and      furnished by them specifically for use in any of the Offering Documents)      contained in the Offering Documents (including in any documents      incorporated by reference therein), which at the time and in the light of      the circumstances under which it was made contains or is alleged to      contain a misrepresentation (as such term is defined in the Securities Act      (Ontario)) or any misstatement of a material  fact; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      omission or alleged omission to state in the Offering Documents (including      in any documents incorporated by reference therein), or any certificate of      Western delivered hereunder or pursuant hereto, any material fact (other      than a material fact relating solely to the Underwriters) required to be      stated therein or necessary to make any statement therein not      misleading; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      order made, or inquiry, investigation or proceeding commenced by any      securities regulatory authority or other competent authority based upon      any misrepresentation, untrue statement or omission or alleged untrue      statement or omission in the Offering Documents (including in any      documents incorporated by reference therein), (except for information and      statements relating solely to the Underwriters and furnished by them      specifically for use in the Offering Documents) that prevents or restricts      the trading in any of Western’s securities or the distribution or      distribution to the public, as the case may be, of any of the Shares in      any of the OfferingJurisdictions; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Western      not complying with any requirement of Applicable Securities Laws or stock      exchange requirements in connection with the transactions herein      contemplated including Western’s non-compliance with any statutory      requirement to make any document available for inspection;    or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any      breach of a representation or warranty of Western contained in this      Agreement or the failure of Western to comply with any of its obligations      hereunder. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Notwithstanding      Section 15(1), the indemnification in Section 15(1) does not and shall not      apply to the extent that a court of competent jurisdiction in a final      judgment that has become non-appealable shall determine that such losses,      claims, liabilities, damages or expenses were caused or incurred solely by      negligence, dishonesty, fraud or wilful misconduct of the      Underwriters. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | If      any matter or thing contemplated by this section shall be asserted against      any Indemnified Party in respect of which indemnification is or might      reasonably be considered to be provided, such Indemnified Party will      notify the Indemnifiers as soon as possible of the nature of such claim      (provided that omission to so notify the Indemnifiers will not relieve the      Indemnifiers of any liability that it may otherwise have to the      Indemnified Party hereunder, except to the extent the Indemnifiers are      materially prejudiced by such omission) and the Indemnifiers shall be      entitled (but not required) to assume the defence of any suit brought to      enforce such claim; provided, however, that the defence shall be through      legal counsel reasonably acceptable to such Indemnified Party and that no      settlement may be made by the Indemnifiers or such Indemnified Party      without the prior written consent of the other, such consent not to be      unreasonably withheld. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | In      any such claim, such Indemnified Party shall have the right to retain      other legal counsel to act on such Indemnified Party’s behalf, provided      that the fees and disbursements of such other legal counsel shall be paid      by such Indemnified Party, unless: (i) the Indemnifiers and such      Indemnified Party mutually agree to retain other legal counsel; or (ii)      the representation of the Indemnifiers and such Indemnified Party by the      same legal counsel would, in the opinion of such counsel, be inappropriate      due to actual or potential differing interests, in which event such fees      and disbursements shall be paid by the Indemnifiers to the extent that      they have been reasonably incurred, provided that in no circumstances will      the Indemnifiers be required to pay the fees and expenses of more than one      set of legal counsel for all Indemnified  Parties. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | To      the extent that any Indemnified Party is not a party to this Agreement,      the Underwriters shall obtain and hold the right and benefit of this      section in trust for and on behalf of such Indemnified    Party. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The      Indemnifiers hereby consents to personal jurisdiction in any court in      which any claim that is subject to indemnification hereunder is brought      against the Underwriters or any Indemnified Party and to the assignment of      the benefit of this section to any Indemnified Party for the purpose of      enforcement provided that nothing herein shall limit Western’s right or      ability to contest the appropriate jurisdiction or forum for the      determination of any suchclaims. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (7) | The      rights of the Indemnifiers contained in this section shall not enure to      the benefit of any Indemnified Party if the Underwriters were provided      with a copy of any amendment or supplement to the Offering Documents which      corrects any untrue statement or omission or alleged omission that is the      basis of a claim by a party against such Indemnified Party and that is      required, under the applicable securities legislation or regulations, to      be delivered to such party by theUnderwriters. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | The      rights of the Indemnifiers contained in this section shall not enure to      the benefit of any Indemnified Party to the extent that any such loss,      claim, damage, or liability arises out of or is based upon any untrue      statement or alleged untrue statement or omission or alleged omission made      in any Offering Document in reliance upon and in conformity with written      information concerning the Underwriters furnished to Western by the      Underwriters in writing specifically for use therein under the heading      “Plan of Distribution” contained in the Offering  Documents. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Western      shall not be liable under this section for any settlement of any claim or      action effected without its prior written consent, which shall not be      unreasonably withheld. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      16  | Contribution |
|-----------------------|--------------|

----

| Section      17  | Expenses |
|-----------------------|----------|

| Section      18  | Liability      of the Underwriters |
|-----------------------|------------------------------------|

| (1) | The      obligation of the Underwriters to purchase the Purchased Shares (or the      Over-Allotment Shares, if the Over-Allotment Option is exercised) in      connection with the Offering at the Time of Closing on the Closing Date      shall be several, and not joint, nor joint and several, and shall be as to      the following percentages of the Purchased Shares to be purchased at any      such time: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Wellington West Capital Markets    Inc. |   |   | 40 | % |
|-----------------------------------------|--------|--------|----|---|
| RBC      Dominion Securities Inc.       |   |   | 40 | % |
| Scotia      Capital Inc.                |   |   | 20 | % |

| (2) | If      one of the Underwriters fails to purchase its applicable percentages of      the aggregate amount of the Purchased Shares (or the Over-Allotment      Shares, if the Over-Allotment Option is exercised) at the Time of Closing,      the other Underwriters shall have the right, but shall not be obligated,      to purchase, all but not less than all, of the applicable Shares which      would otherwise have been purchased by the Underwriter that failed to      purchase. If, with respect to the Shares, any non-defaulting Underwriter      elects not to exercise such right so as to assume the entire obligation of      the defaulting Underwriter (the Shares in respect of which the defaulting      Underwriter(s) fail to purchase and the non-defaulting Underwriters do not      elect to purchase being hereinafter called the “Default Securities”),      Western shall have the right to either (i) proceed with the sale of      the Shares (less the Default Securities) to the non-defaulting      Underwriters, or (ii) terminate its obligations hereunder without      liability to the non-defaulting Underwriters except under Sections 15, 16      and 17. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Section      19  | Action      by Underwriters |
|-----------------------|-----------------------------|

| Section      20  | Governing      Law |
|-----------------------|--------------------|

| Section      21  | Survival      of Warranties, Representations, Covenants and  Agreements |
|-----------------------|-------------------------------------------------------------------------|

| Section      22  | Notices |
|-----------------------|---------|

----

----

----

| Yours      very truly,                                                                                                                                                                                     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                       |
| WELLINGTON      WEST CAPITAL MARKETS INC.                                                                                                                                                                  |
|                                                                                                                                                                                                       |
|                                                                                                                                                                                                       |
| (Signed)      BILL WASHINGTON Managing      Director RBC DOMINION SECURITIES      INC.                                                                                                                     |
|                                                                                                                                                                                                       |
|                                                                                                                                                                                                       |
| (Signed)      MAX      WEIS                     Vice      President           |
| SCOTIA      CAPITAL      INC.                                                                |
|                                                                                                                                                                                                       |
|                                                                                                                                                                                                       |
| (Signed)      JEFF RICHMOND                                                                                                                                                                                |
| Managing      Director                                                                                                                                                                                     |

----

| WESTERN      GOLDFIELDS INC.                          |
|-------------------------------------------------------|
|                                                  |
|                                                  |
| (Signed)      Brian Penny Chief      FinancialOfficer |

----

----

| 1. | Each      Underwriter represents and warrants to the Company  that: |
|----|---------------------------------------------------------------------|

|   | (a) | It      acknowledges that the Shares have not been and will not be registered      under the U.S. Securities Act and may not be offered or sold within the      United States or to, or for the account or benefit of, U.S. persons,      except in accordance with Regulation S or pursuant to an exemption from      the registration requirements of the U.S. Securities Act. It has not      offered and sold and will not offer and sell the Shares (i) as part of its      distribution at any time and (ii) otherwise until 40 days after the later      of the commencement of the offering and the closing date, except in      accordance with Rule 903 of Regulation S or as provided in paragraphs 2 or      3 below. It agrees that, at or prior to confirmation of the sale of the      Shares, it will have sent to each distributor, dealer or person receiving      a selling concession, fee or other remuneration that purchases Shares from      it during the restricted period a confirmation or notice to substantially      the following effect: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | It      has not entered and will not enter into any contractual arrangement with      respect to the distribution of the Shares, except with its affiliates, any      Selling Dealer Group members or with the prior written consent of the      Company; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | It      shall require each Selling Dealer Group member to agree, for the benefit      of the Company, to comply with, and shall use its best efforts to ensure      that each Selling Dealer Group member complies with, the applicable      provisions of this Schedule “A” as if such provisions applied to such      Selling Dealer Group member. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Each      Underwriter covenants to and agrees with the Company  that: |
|----|-----------------------------------------------------------------------|

|   | (a) | All      offers and sales of the Shares in the United States will be effected      through one or more United States affiliates of an Underwriter (each, a      “U.S. Placement Agent”) in accordance with all applicable U.S.      broker-dealer requirements; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each      U.S. Placement Agent is a Qualified Institutional Buyer, is a duly      registered broker-dealer with the SEC, and is a member of, and in good      standing with, the National Association of Securities Dealers, Inc. on the      date such representation ismade; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | It      will not, either directly or through a U.S. Placement Agent, solicit      offers for, or offer to sell, the Shares in the United States by means of      any form of General Solicitation or General Advertising and neither it nor      its affiliate(s), nor any persons acting on its or their behalf have      engaged or will engage in any Directed Selling Efforts with respect to the      Shares; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | It      will solicit, and will cause each U.S. Placement Agent to solicit, offers      for the Shares in the United States only from, and will offer the Shares      only to, persons it reasonably believes to be Qualified Institutional      Buyers in accordance with Rule 144A. It also agrees that it will solicit      offers for the Shares only from, and will offer the Shares only to,      persons that in purchasing such Shares will be deemed to have represented      and agreed as provided in paragraphs (3)(a) through (l)    below; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | It      will inform, and cause each U.S. Placement Agent to inform, all purchasers      of the Shares in the United States that the Shares have not been and will      not be registered under the U.S. Securities Act and are being sold to them      without registration under the U.S. Securities Act in reliance upon Rule      144A; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | It      will deliver, through a U.S. Placement Agent, a copy of a Final U.S.      Private Placement Memorandum which shall include the Final Prospectus      (together, the “U.S. Offering Documents”) to each person in the United      States purchasing Shares from it; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | It      shall cause each U.S. Placement Agent to agree, for the benefit of the      Company, to the same provisions as are contained in paragraphs (1) and (2)      of this Schedule “A”; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | At      least one business day prior to closing, it shall cause each U.S.      Placement Agent to provide Computershare Investor Services Inc.      (“Computershare”) with a list of all purchasers of the Shares in the      United States; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | If      it or its United States affiliates have offered or sold Shares in the      United States, at closing it, together with each such U.S. Placement      Agent, will provide a certificate, substantially in the form of Exhibit 1      to this Schedule “A”, relating to the manner of the offer and sale of the      Shares in the United States. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | It      is understood and agreed by the Underwriters that the Shares may be      offered and resold by the Underwriters and members of the Selling Dealer      Group in the United States pursuant to the provisions of Rule 144A to      persons who are, or are reasonably believed by them to be, Qualified      Institutional Buyers in transactions meeting the requirements of Rule 144A      and in compliance with any applicable state securities laws of the United      States, provided that prior to any such sale each purchaser shall have      been provided with the U.S. Offering Documents and by purchasing Shares,      each purchaser shall be deemed to have represented and warranted for the      benefit of the Company and the Underwriters  that: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | It      is authorized to consummate the purchase of the  Shares; |
|--------|-----|------------------------------------------------------------------|

----

|   | (b) | It      understands and acknowledges that the Shares have not been and will not be      registered under the U.S. Securities Act or the securities laws of any      state of the United States, and that the offer and sale of Shares to it      are being made in reliance upon Rule 144A and exemptions from registration      under applicable state securitieslaw; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | It      is a Qualified Institutional Buyer and is acquiring the Shares for its own      account or for the account of one or more Qualified Institutional Buyers      with respect to which it exercises sole investment discretion and not with      a view to any resale, distribution or other disposition of the Shares in      violation of United States federal or state securities    laws; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | It      acknowledges that it has not purchased the Shares as a result of any      General Solicitation or General Advertising, including advertisements,      articles, notices or other communications published in any newspaper,      magazine or similar media, or broadcast over radio, television or the      Internet or any seminar or meeting whose attendees have been invited by      general solicitation or general advertising or in any other manner      involving a public offering within the meaning of Section 4(2) of the U.S.      Securities Act; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | It      understands and acknowledges that the if it should reoffer, resell, pledge      or otherwise transfer Shares prior to the date that is the later of (x)      the date which is two years after the later of the last date of original      issuance of such Shares (which would include the issuance of      Over-Allotment Shares pursuant to the exercise of the overallotment      option) and the last date that the Company or its affiliates were owners      of such Shares (or any predecessor thereto) or such shorter period of time      as permitted by Rule 144(k) under the U.S. Securities Act or any successor      provision thereunder and (y) such later date, if any, as may be required      by applicable law, it will do so only (i) to the Company; (ii) pursuant to      an effective registration statement under the U.S. Securities Act; (iii)      to a Qualified Institutional Buyer in compliance with Rule 144A; (iv) in      an offshore transaction in compliance with Rule 904 under Regulation S; or      (v) pursuant to the exemption from registration under the U.S. Securities      Act provided by Rule 144 thereunder (if available) or any other available      exemption from registration under the U.S. Securities Act, in each case in      accordance with all applicable state securities  laws; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | It      will deliver to each person to whom it transfers any of the Shares notice      of any restrictions on transfer of suchShares; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | It      understands and acknowledges that the Shares sold in reliance on Rule 144A      as part of this offering will bear a legend substantially to the following      effect unless otherwise agreed by the Company and the holder      thereof: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | REPRESENTS      THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED      INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE 1933 ACT)      AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH      ACCOUNT; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | AGREES      FOR THE BENEFIT OF THE CORPORATION THAT IT WILL NOT OFFER, SELL, PLEDGE OR      OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN, PRIOR      TO THE DATE THAT IS THE LATER OF |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (X) | TWO      YEARS AFTER THE LATER OF THE LAST ORIGINAL ISSUE DATE HEREOF (WHICH WOULD      INCLUDE THE ISSUANCE OF SECURITIES PURSUANT TO THE EXERCISE OF THE      OVERALLOTMENT OPTION) AND THE LAST DATE ON WHICH THE CORPORATION OR ANY      AFFILIATE OF THE CORPORATION WAS THE OWNER OF THIS SECURITY (OR ANY      PREDECESSOR OF THIS SECURITY) OR SUCH SHORTER PERIOD OF TIME AS PERMITTED      BY RULE 144(K) UNDER THE 1933 ACT OR ANY SUCCESSOR PROVISION THEREUNDER,      AND |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Y) | SUCH      LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE  LAW, |
|--------|-----|----------------------------------------------------------------------|

|  | (i) | TO      THE CORPORATION; |
|--|-----|--------------------------|

|   | (ii) | PURSUANT      TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE 1933      ACT; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (iii) | TO      A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE      1933 ACT; |
|--------|-------|-----------------------------------------------------------------------------------------------|

|   | (iv) | IN      AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATIONS UNDER      THE 1933 ACT; OR |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | (v) | PURSUANT      TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY RULE 144      THEREUNDER (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE      REGISTRATION REQUIREMENTS OF THE 1933ACT, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | It      consents to the Company making a notation on its records or giving      instructions to any transfer agent of the Shares in order to implement the      restrictions on transfer set out and described in paragraph 3(e)      above; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | It      understands and acknowledges that the Company is not obligated to file and      has no present intention of filing with the SEC or with any state      securities administrator any registration statement in respect of resales      of the Shares in the United States; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | It      acknowledges that neither the Company, the Underwriters nor any person      representing the Company or the Underwriters has made any representation      to it with respect to the Company or the offering of Shares, other than      the information contained or incorporated by reference in the U.S.      Offering Documents, which has been delivered to it and upon which it is      relying in making its investment decision with respect to the Shares.      Accordingly, it acknowledges that no representation or warranty is made by      the Underwriters as to the accuracy or completeness of such materials. It      has had access to such financial and other information concerning the      Company and the Shares as it has deemed necessary in connection with its      decision to purchase the Shares, including an opportunity to ask questions      of and request information from the Company and the      Underwriters; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (k) | It      acknowledges that the Company, the Underwriters and others will rely upon      the truth and accuracy of the foregoing acknowledgements, representations,      and agreements, and agrees that if any of the acknowledgements,      representations or warranties deemed to have been made by it by its      purchase of Shares are no longer accurate, it shall promptly notify the      Company and the Underwriters. If it is acquiring any of the Shares as a      fiduciary or agent for one or more investor accounts, it represents that      it has sole investment discretion with respect to each such account and it      has full power to make the foregoing acknowledgements, representations and      agreements on behalf of each suchaccount; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | It      understands and acknowledges that the Company (i) is not obligated to      remain a Foreign Issuer, (ii) may not, at the time the Shares are resold      by it or at any other time, be a Foreign Issuer, and (iii) may engage in      one or more transactions which could cause the Company not to be a Foreign      Issuer; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | It      understands and acknowledges that it is making the representations and      warranties and agreements contained herein with the intent that they may      be relied upon by the Company, the Underwriters and the affiliates of the      Underwriters in determining its eligibility or (if applicable) the      eligibility of others on whose behalf it is contracting hereunder to      purchase the Shares. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The      Underwriters have not entered, and will not enter, into any contractual      arrangement with respect to the distribution of the Shares, except (a)      with their affiliates, (b) with members of the Selling Dealer Group in      accordance with paragraph 1(c) of this Schedule “A”, or (c) with the prior      written consent of the Company. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The      Company represents, warrants, covenants and agrees to and with the      Underwriters that: |
|----|-----------------------------------------------------------------------------------------------------|

|  | (a) | it      is a Foreign issuer; |
|--|-----|------------------------------|

|   | (b) | it      is not, and giving effect to the offering and sale of the Shares and the      application of the proceeds thereof as described in the Offering      Documents, will not be required to register as an “investment company”      pursuant to the provisions of the United States Investment Company Act of      1940, as amended; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | at      the date hereof, the Shares are not (A) part of a class listed on a      national securities exchange in the United States, (B) quoted in an      automated inter-dealer system in the United States, or (C) convertible or      exchangeable at an effective conversion premium (calculated as specified      in paragraph (a)(6) of Rule 144A under the U.S. Securities Act) of less      than ten percent for securities so listed or  quoted; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | for      so long as any of the Shares are outstanding and are “restricted      securities” within the meaning of Rule 144(a)(3) under the U.S. Securities      Act, it shall either: (A) furnish to the SEC all information required to      be furnished in accordance with Rule 12g3-2(b) under the U.S. Exchange      Act; (B) file reports and other information with the SEC under Section 13      or 15(d) of the U.S. Exchange Act; or (C) provide to any holder of Shares      and any prospective purchaser of Shares designated by such holder, upon      the request of such holder, the information required to be provided by      paragraph (d)(4), of Rule 144A; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | none      of it, its affiliates or any person acting on its or their behalf has      offered or will offer to sell the Shares by means of any form of General      Solicitation or General Advertising;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | none      of it, its affiliates or any person acting on its or their behalf has      engaged or will engage in any Directed Selling Efforts with respect to the      Shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| [Underwriter] |         | [U.S.      Broker-Dealer Affiliate  of |
|---------------|--------------|--------------------------------------------------|
|          |         | Underwriter]                                     |
|          |         |                                             |
| By:           |    |                                             | By: |    |
|          | Name:        |                                             |   | Name: |
|          | Title:       |                                             |   | Title: |

----

| TO: | Western      Goldfields Inc. |
|-----|------------------------------|

|  ̈ | acknowledges      that the sale of _______ common      shares of Western Goldfields Inc. represented by certificate No. ___ to      which this declaration relates is being made in reliance on Rule 904 of      Regulation S (“Regulation S”) under the United States Securities Act of      1933, as amended (the “U.S. Securities Act”),      and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | certifies      that: |
|--------|----------------------|

|   | 1. | it      is not an affiliate (as defined in Rule 405 under the U.S. Securities Act)      of Western Goldfields Inc.; |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | 2. | the      offer of the securities was not made to a person in the United States and      either (a) at the time the buy order was originated, the buyer was outside      the United States, or the seller and any person acting on its behalf      reasonably believe that the buyer was outside the United States, or (b)      the transaction was executed on or through the facilities of the Toronto      Stock Exchange, and neither the seller nor any person acting on its behalf      knows that the transaction has been prearranged with a buyer in the United      States; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | neither      the seller nor any affiliate of the seller nor any person acting on any of      their behalf has engaged or will engage in any “directed selling efforts”      (as such term is defined in Regulation S) in the United States in      connection with the offer and sale of the  securities; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | the      sale is bona fide and not for the purpose of “washing off” the resale      restrictions imposed because the securities are “restricted securities”      (as that term is defined in Rule 144(a)(3) under the U.S. Securities      Act); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | the      seller does not intend to replace the securities sold in reliance on Rule      904 of Regulation S with fungible unrestricted securities;    and |
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|   | 6. | the      contemplated sale is not a transaction, or part of a series of      transactions which, although in technical compliance with Regulation S, is      part of a plan or scheme to evade the registration provisions of the U.S.      Securities Act. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Dated:___________________________________ | By:    |   |
|-------------------------------------------|--------|--------|
|                                      |   | Name:  |
|                                      |   | Title  |

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