Document:

Agency Agreement dated March 18, 2004

 Exhibit 10.6 
  
 March 18, 2004 
  
 Peru Copper Syndicate, Ltd. 
 Suite 1600 – 777 Dunsmuir Street 
 Vancouver, BC Canada 
 V7Y 1K4 
  
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 Peru Copper Inc. 
 Suite 1600 – 777 Dunsmuir Street 
 Vancouver, BC Canada 
 V7Y 1K4 
  
 Attention: Catherine McLeod-Seltzer 
  
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 The Selling Shareholders (as defined herein) 
  
 Attention: Catherine
McLeod-Seltzer 
  
 Dear Sirs/Mesdames: 
  
 Re:    Private Placement of Units and Convertible Notes of Peru
Copper Inc. 
  
 BMO Nesbitt Burns Inc. and Haywood Securities Inc. (“BMO
Nesbitt Burns” and “Haywood”, respectively, and together the “Agents”) understand that Peru Copper Inc. (the “Corporation”) is prepared to issue and sell up to 8,571,429 Units (as defined below) of the Corporation
at a price of US$1.40 per Unit for gross proceeds of US$12 million on the terms and subject to the conditions contained hereinafter (the “Treasury Offering”). 
  
 Each Unit will consist of one non-interest bearing unsecured convertible note (“Note”) of the Corporation plus one-half of a
special share purchase warrant (“Special Warrant”). 
  
 Each Note is
convertible on a one-for-one basis into a Common Share of the Company at any time and will automatically be converted into a Common Share upon completion of an IPO (as defined below). 
  
 Each one-half of a Special Warrant is convertible into one-half of a share purchase warrant (“Warrant”) of the Company at any time
and will automatically be converted into one-half of a Warrant upon completion of an IPO. Each whole Warrant will entitle the holder to acquire one additional Common Share at a price of US$2.00 per Common Share for a period of 24 months after the
First Closing Date. 
  
 The Agents also understand that certain of the Peru Copper
Shareholders (as defined below) wish to sell up to an additional 3,000,000 Notes at a price of US$1.40 per Note (the “Secondary Offering”). 
  
 Each person who purchases Offered Securities (as defined below) will purchase a proportionate interest in the securities offered under each of the Treasury Offering and
the Secondary Offering. 

 The purchase of the Treasury Offering component of the Offering will occur on the First Closing and the purchase of the
Secondary Offering component of the Offering will occur on the Second Closing. 
  
 Based upon the understanding of the Agents set out above and upon the terms and subject to the conditions contained hereinafter, upon the acceptance hereof by the Corporation and the Selling Shareholders, the Corporation and the Selling
Shareholders hereby appoint the Agents to act as the exclusive agents of the Corporation and the Selling Shareholders to solicit, on a best efforts basis, offers to purchase the Units to be issued under the Treasury Offering and the Notes to be sold
under the Secondary Offering (together, the “Offered Securities”) by way of private placement, and the Agents hereby agree to act as such agents. It is understood and agreed that the Agents are under no obligation to purchase any of the
Offered Securities, although the Agents may subscribe for and purchase Offered Securities if they so desire. 
  
 In consideration for its services hereunder, the Agents shall be entitled to the fees provided for in paragraph 7 of this Agreement. 
  
 The terms and conditions of this Agreement are as follows: 
  

	1.	Definitions, Interpretation and Schedules 

  

	 	(a)	Definitions: Whenever used in this Agreement: 

  

	 	1.	“Additional Units” means the additional Units described in subsection 9(d) hereof and issued to the Subscribers under this Offering in the circumstances described in that
subsection; 

  

	 	2.	“Agents” has the meaning ascribed thereto on the first page of this Agreement; 

  

	 	3.	“Agreement” means this agreement including the Schedules attached hereto, as amended or supplemented from time to time; 

  

	 	4.	“Ancillary Documents” means all agreements, indentures, certificates and other documents executed and delivered, or to be executed and delivered, by the Corporation and
the Selling Shareholders in connection with the transactions contemplated by this Agreement or the Subscription Agreements and includes the Subscription Agreements; 

  

	 	5.	“BMO Nesbitt Burns” has the meaning ascribed thereto on the first page of this Agreement; 

  

	 	6.	“Board of Directors” means the board of directors of the Corporation; 

  

	 	7.	“Broker Options” means the broker options to be issued in exchange for the Broker Warrants; 

  

	 	8.	“Broker Option Certificate” means the certificate representing the Broker Options; 

  

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	 	9.	“Broker Shares” means the Common Shares which are issuable upon the exercise from time to time of the Broker Options; 

  

	 	10.	“Broker Warrants” means the broker warrants, equal in number to 5% of the number of Units sold in respect of the Treasury Offering (other than up to 785,714 Units included
in the Treasury Offering that are sold to persons designated by the Peru Copper Shareholders and other than any Additional Units) which will be exchanged for Broker Options, which in turn will entitle the Agents to purchase up to an equal number of
Broker Shares; 

  

	 	11.	“Broker Warrant Certificate” means the certificate representing the Broker Warrants; 

  

	 	12.	“Business Day” means a day which is not a Saturday, Sunday or a statutory or civic holiday in the City of Vancouver, Province of British Columbia or in the City of
Toronto, Province of Ontario; 

  

	 	13.	“Closing Date or Closing Dates”, as the context requires, means one or both of the First Closing Date or the Second Closing Date; 

  

	 	14.	“Closing Time” means 11:00 a.m. (Vancouver time) on the Closing Dates or such other time on the Closing Date as the Corporation and the Agents may mutually agree upon;

  

	 	15.	“Common Shares” means common shares in the capital of the Corporation; 

  

	 	16.	“Corporation” means Peru Copper Inc., a corporation existing under the Canada Business Corporations Act; 

  

	 	17.	“Directed Selling Efforts” means “directed selling efforts” as defined in Regulation S; 

  

	 	18.	“Distribution” means distribution or distribution to the public, as the case may be, as those terms are defined in the Securities Laws of the Qualifying Jurisdictions;

  

	 	19.	“Expenses” has the meaning given in Section 15; 

  

	 	20.	“Financial Statements” means the audited consolidated financial statements of Peru Copper for the year ended December 31, 2003; 

  

	 	21.	“First Closing” means the closing of the purchase and sale of the Treasury Offering subscribed for by the Subscribers pursuant to the Subscription Agreements;

  

	 	22.	“First Closing Date” means March 18, 2004 or such other date as the Corporation and BMO Nesbitt Burns may mutually agree upon; 

  

	 	23.	“Foreign Issuer” means “foreign issuer” as defined in Regulation S; 

  

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	 	24.	“General Solicitation or General Advertising” means “general solicitation or general advertising” as used in Rule 502(c) of Regulation D;

  

	 	25.	“Haywood” has the meaning ascribed thereto on the first page of this Agreement; 

  

	 	26.	“Information” means all information regarding the Corporation prepared by the Corporation and provided to the Agents; 

  

	 	27.	“Investment” means the subscription by the Corporation for the Investment Shares; 

  

	 	28.	“Investment Shares” means the 8,571,429 shares in the capital of Peru Copper to be issued to the Corporation pursuant to the Investment; 

  

	 	29.	“IPO” means either a Qualified IPO or a Non-qualified IPO; 

  

	 	30.	“Minera Peru” means Minera Peru Copper Syndicate S.A., a company governed by the laws of Peru; 

  

	 	31.	“Non-qualified IPO” means (i) an initial public offering of Common Shares of the Corporation with an offering amount of less than US$25 million, or a reverse-take over
transaction, pursuant to which the Common Shares of the Corporation (in the case of an initial public offering) or common shares of the acquiring company (in the case of a reverse take-over) are listed on the TSX or another internationally
recognized stock exchange, provided that the prospectus (the “Prospectus”) with respect to the Non-Qualified IPO qualifies the Underlying Shares and the Warrants or the common shares of the acquiring company issued on the conversion of the
Notes and in a reverse take-over transaction such that those securities are freely tradable; or (ii) a merger, amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an arm’s length third party acquires
voting control of the Corporation, provided that such transaction is accepted by holders of not less than 66 2/3%
of the Notes and 66 2/3% of the Common Shares and further provided that the holders of 66 2/3% of the Common Shares and 66 2/3% of the Notes receive either cash and/or freely tradeable equity securities that are listed on an internationally recognized stock exchange in connection with such transaction;

  

	 	32.	“Notes” means the non-interest bearing unsecured convertible notes of the Corporation issued pursuant to a note indenture and having the attributes listed in Schedule C to
this Agreement; 

  

	 	33.	“Offered Securities” means up to 8,571,429 Units to be issued under the Treasury Offering and up to 3,000,000 Units to be sold under the Secondary Offering and
“Offered Security” means any one of such Units or Notes; 

  

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	 	34.	“Offering” means the offering for sale by the Corporation and the Selling Shareholders on a private placement basis only of the Offered Securities;

  

	 	35.	“Offering Jurisdictions” means the Provinces of British Columbia and Ontario, the United States and such other jurisdictions outside of Canada which are agreed to by the
Corporation and the Agents; 

  

	 	36.	“Option Agreement” means the Option Contract for the Transfer of Mining Concessions and related agreements between Empresa Minera Del Centro Del Peru S.A., Minera Peru
Copper Syndicate S.A., La Agencia de Promocion de la Inversion - Proinversion dated June 10, 2003 in respect of the Toromocho Mining Project in Peru; 

  

	 	37.	“Person” means an individual, a firm, a corporation, a syndicate, a partnership, a trust, an association, an unincorporated organization, a joint venture, an investment
club, a government or an agency or political subdivision thereof and every other form of legal or business entity of any nature or kind whatsoever; 

  

	 	38.	“Peru Copper” means Peru Copper Syndicate, Ltd., a company governed by the laws of the Cayman Islands; 

  

	 	39.	“Peru Copper Shareholders” means all of the holders of shares of Peru Copper, being Catherine McLeod-Seltzer (as to 10%), Ranchu Copper Investments Limited (as to 25%),
Fisherking Holdings Ltd. (as to 15%), Lowell Mineral Exploration, LLC (as to 25%), Sunbeam Opportunities Limited (as to 8.33%), Campania Holding, Inc. (as to 8.33%) and Tangent International Limited (as to 8.33%); 

  

	 	40.	“Properties” means the mineral concessions, surface rights, and all other assets comprising the Toromocho Copper Project in Peru which Minera Peru has an option to
acquire, subject to the terms and conditions of the Option Agreement; 

  

	 	41.	“Qualified IPO” means (i) an initial public offering of Common Shares of the Corporation with a minimum offering amount of US$25 million, or a reverse-take over
transaction, pursuant to which the Common Shares of the Corporation (in the case of an initial public offering) or common shares of the acquiring company (in the case of a reverse take-over) are listed on the TSX or another internationally
recognized stock exchange, provided that the prospectus (the “Prospectus”) with respect to the Qualified IPO qualifies the Underlying Shares and the Warrants or the common shares of the acquiring company issuable upon the conversion of the
Notes and the Warrants in a reverse take-over transaction such that those securities are freely tradable; or (ii) a merger, amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an arm’s length third
party acquires voting control of the Corporation, provided that such transaction is accepted by holders of not less than 66 2/3% of the Notes and 66 2/3% of the Common Shares and further provided that the holders of 66 2/3% of the Common Shares and 66 2/3% of the Notes receive either cash and/or freely tradeable equity securities that are listed on an internationally recognized stock exchange in connection with such transaction;

  

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	 	42.	“Regulation D” means Regulation D under the 1933 Act; 

  

	 	43.	“Regulation S” means Regulation S under the 1933 Act; 

  

	 	44.	“Second Closing” means the closing of the purchase and sale of the Secondary Offering subscribed for by the Subscribers pursuant to the Subscription Agreements;

  

	 	45.	“Second Closing Date” means April 30, 2004 or such other date as the Corporation and BMO Nesbitt Burns may mutually agree upon; 

  

	 	46.	“Secondary Offering” means up to 3,000,000 Notes of the Corporation to be sold by the Selling Shareholders pursuant to this Offering; 

  

	 	47.	“Securities Commissions” means the securities regulatory authorities of the Offering Jurisdictions; 

  

	 	48.	“Securities Laws” means, in respect of each and every offer or sale of Offered Securities, the applicable securities legislation and the regulations thereunder, together
with the instruments (including National Instruments and Multilateral Instruments enforce), policies, rules, orders, codes, notices and published interpretation notes of each of the Offering Jurisdictions, as amended, supplemented or replaced from
time to time; 

  

	 	49.	“Selling Shareholders” means those Peru Copper Shareholders who have elected to sell Notes under the Secondary Offering; 

  

	 	50.	“Shareholders’ Agreement” has the meaning given in Section 6(b)(iii); 

  

	 	51.	“Special Warrant” means the fully-paid special share purchase warrant issued as part of each Unit; 

  

	 	52.	“Stock Options” means incentive stock options granted to, or reserved for granting to, current or future directors and officers of the Corporation permitting the holders
thereof to acquire upon exercise up to an aggregate of 1,500,000 Common Shares at an exercise price of not less than US$1.40 per share; 

  

	 	53.	“Subscribers” collectively means the subscribers of the Offered Securities pursuant to the Subscription Agreements; 

  

	 	54.	“Subscription Agreements” means the subscription agreements to be entered into between the Corporation and the Selling Shareholders, on the one hand, and each of the
Subscribers on the other hand; 

  

	 	55.	“Subscription Price” means the price to be paid by the Subscribers for each Offered Security under the Offering, being US$1.40 per Offered Security;

  

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	 	56.	“Subsidiaries” means the companies that are, or will on or before the Closing Time be, the direct and indirect material subsidiaries of the Corporation, including for the
purpose of this definition, Peru Copper and Minera Peru, as more particularly set forth in Schedule “A” ; 

  

	 	57.	“Substantial U.S. Market Interest” means “substantial U.S. market interest” as defined in Regulation S; 

  

	 	58.	“Treasury Offering” means up to 8,571,429 Units to be issued by the Corporation, each Unit consisting of one Note and one-half of a Special Warrant;

  

	 	59.	“TSX” means the Toronto Stock Exchange; 

  

	 	60.	“Underlying Shares” means the Common Shares issuable upon the conversion or automatic conversion of the Notes; 

  

	 	61.	“Unit” means the units issued under the Treasury Offering and consisting of one Note and one-half-of-one Special Warrant; 

  

	 	62.	“United States” means the United States of America as that term is defined in Regulation S; 

  

	 	63.	“U.S. Accredited Investor” means an “accredited investor” as defined in Rule 501(a) of Regulation D; 

  

	 	64.	“U.S. Affiliate” means BMO Nesbitt Burns Corp. and Haywood Securities (USA) Inc., the United States registered broker-dealer affiliate of the Agents;

  

	 	65.	“U.S. Person” means a “U.S. Person” as that term is defined in Regulation S; 

  

	 	66.	“Warrant” means a share purchase warrant issued upon the exercise or deemed exercise of a Special Warrant and one whole Warrant will entitle the holder to acquire one
Common Share; 

  

	 	67.	“Warrant Shares” means the Common Shares issuable upon due exercise of the Warrants; 

  

	 	68.	“1933 Act” means the United States Securities Act of 1933, as amended; and 

  

	 	69.	“1934 Act” means the United States Securities Exchange Act of 1934, as amended. 

  

	 	(b)	Other Defined Terms: Whenever used in this Agreement, the words and terms “affiliate”, “associate”, “material fact”, “material
change”, “misrepresentation”, “senior officer” and “subsidiary” shall have the meanings given to such words or terms in the Applicable Securities Laws unless specifically provided otherwise herein.

  

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	 	(c)	Plural and Gender: Whenever used in this Agreement, words importing the singular number only shall include the plural and vice versa and words importing the masculine
gender shall include the feminine gender and neuter. 

  

	 	(d)	Currency: All references to monetary amounts in this Agreement are to lawful money of the United States of America. 

  

	 	(e)	Schedules: The following schedules are attached to this Agreement and are deemed to be a part of and incorporated in this Agreement: 

  

			
	 Schedule

	  	 Title

	A	  	Material Subsidiaries and Corporate Structure
	B	  	Attributes of the Notes
	C	  	Officers’ Certificate
	D	  	Agents’s Certificate
	E	  	Material Transactions since date of Financial
	 	  	Statements

  

	2.	The Offered Securities  

  

	 	(a)	Treasury Offering: The Treasury Offering consists of up to 8,571,429 Units at a price of US$1.40 per Unit. Each Unit consists of one Note and one-half of one Special Warrant.
The value attributed to the Note included in each Unit is US$1.33 and the value attributed to the one-half of one Special Warrant in each Unit is US$0.07. While not binding on the Canada Revenue Agency, the Corporation believes that this is a
reasonable allocation reflective of the fair value of the Special Warrant and the Note. Each Note is convertible at any time and from time to time at the option of the holder into one Common Share for no additional consideration, provided that upon
completion of an IPO the Notes shall automatically convert into Common Shares without any further action on the part of the holders of Notes. Each one-half-of-one Special Warrant is exercisable from time to time, and will automatically be exercised
upon completion of an IPO, without payment of further consideration, into one-half-of-one Warrant. Each whole Warrant will entitle the holder to acquire one Common Share at a price of US$2.00 per share for a period of 24 months after the First
Closing Date. 

  

	 	(b)	Secondary Offering: Up to an additional 3,000,000 Notes may be sold by Peru Copper Shareholders at a price of US$1.40 per Note. Peru Copper Shareholders wishing to sell
pursuant to the Secondary Offering will sell shares of Peru Copper owned by them for an equal number of Notes of the Corporation and sell those Notes pursuant to the Offering. 

  

	3.	The Offering 

  

	 	(a)	Sale on Exempt Basis: The Agents (BMO Nesbitt Burns as to 85% of the Offering and Haywood as to 15% of the Offering) will use their commercially reasonable best efforts to
arrange for Subscribers of Offered Securities in the Offering Jurisdictions. The Agents shall offer for sale on behalf of the Corporation the Offered Securities in the Offering Jurisdictions in compliance 

  

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 with the Securities Laws of the Offering Jurisdictions and only to such Persons and in such manner so
that, pursuant to the provisions of the Securities Laws of the Offering Jurisdictions, no prospectus or offering memorandum or other similar document need be filed with, or delivered to, any Securities Commission in connection therewith. In respect
of the foregoing, the Agents shall only offer the Offered Securities for sale on behalf of the Corporation in the United States only through their U.S. Affiliates pursuant to an exemption from the registration requirements of the 1933 Act, in
compliance with applicable state securities laws and in accordance with Section 12 hereof. 
  

	 	(b)	Appointment of Co-Agents and Sub-Agents: The Corporation and the Selling Shareholders agree that the Agents have the right to invite one or more investment dealers to form an
agency group to participate in the soliciting of offers to purchase the Offered Securities. The Agents shall have the exclusive right to control all compensation arrangements between the members of the underwriting group and all remuneration paid to
such additional co-agents or sub-agents shall be paid by the Agents from their compensation hereunder. The Corporation and the Selling Shareholders grant all of the rights and benefits of this Agreement to any investment dealers so appointed by the
Agents and appoints BMO Nesbitt Burns as trustee of such rights and benefits for such investment dealers, and BMO Nesbitt Burns hereby accepts such trust and agrees to hold such rights and benefits for and on behalf of such investment dealers. The
Agents shall ensure that any investment dealers appointed pursuant to the provisions of this Section 3(b) or with whom the Agents have a contractual relationship with respect to the Offering, if any, agree with the Agents to comply with the
covenants and obligations given by the Agents herein. 

  

	 	(c)	Covenants of the Agents: The Agents covenant with the Corporation that (i) they will comply with all Securities Laws of the Offering Jurisdictions in which they solicit or
procure subscriptions for Offered Securities, (ii) they will not solicit or procure subscriptions for Offered Securities so as to require the registration thereof or the filing of a prospectus, an offering memorandum or a similar offering document
with respect thereto under the laws of any jurisdiction, (iii) they will obtain from each Subscriber an executed Subscription Agreement in a form reasonably acceptable to the Corporation, the Selling Shareholders and BMO Nesbitt Burns. The Agents
represent and warrant that they are qualified to so act in the Offering Jurisdictions (other than the United States) in which they solicit or procure subscriptions for the Offered Securities and their US Affiliates are qualified to act in the United
States in respect of the solicitation and procurement of subscriptions for the Offered Securities. 

  

	 	(d)	Filings: The Corporation undertakes to file or cause to be filed all forms and undertakings required to be filed thereby in connection with the Offering so that the
distribution of the Offered Securities may lawfully occur (including, without limitation, the filing of a Form D pursuant to the 1933 Act) in the Offering Jurisdictions, without the necessity of filing a prospectus, a registration statement or an
offering memorandum in Canada or the United States. As between the Corporation and the Agents, all fees payable in connection with such filings shall be at the sole expense of the Corporation. The Agents undertake to use commercially reasonable best
efforts to cause the Subscribers of the Offered Securities to complete (and it shall be a condition of closing in favour of the 

  

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 Corporation that the Subscribers complete and deliver to the Corporation) any forms and undertakings
required by the Securities Laws of the Offering Jurisdictions. 
  

	 	(e)	No Offering Memorandum: Neither the Corporation nor the Agents shall (i) provide prospective Subscribers with any document or other material that would constitute an offering
memorandum within the meaning of the Securities Laws, (ii) engage in any form of General Solicitation or General Advertising in connection with the offer and sale of the Offered Securities, including but not limited to causing the sale of the
Offered Securities to be advertised or published in any newspaper, magazine, printed public media, printed media or similar medium of general and regular paid circulation, broadcast over radio, television or telecommunications, including electronic
display or the Internet, or otherwise. 

  

	4.	Due Diligence 

  
 The Corporation shall allow the Agents and their advisors to conduct all due diligence investigations, including meeting with senior management, technical advisors, legal counsel and the auditors (if any) of the
Corporation and the Subsidiaries, as the Agents shall consider appropriate in connection with the Offering on a timely basis and prior to the Closing Time. 
  

	5.	Deliveries 

  

	 	(a)	Advance Deliveries: The Agents shall deliver to the Corporation on or prior to the date hereof the Subscription Agreements which, together with the applicable schedules
thereto, shall have been completed and executed by the Subscribers. 

  

	 	(b)	Deliveries: By the Closing Time on the Closing Dates: 

  

	 	(i)	all actions required to be taken by or on behalf of the Corporation and the Selling Shareholders including, without limitation, the passing of all required resolutions of the
directors, including committees of the directors, and shareholders of the Corporation, shall have occurred in order to complete the transactions contemplated by this Agreement and the Subscription Agreements, including, without limitation, to create
and issue the Units, for the Selling Shareholders to sell their shares of Peru Copper for Notes of the Corporation, and for the Corporation to issue the Broker Warrants, and to allot and reserve for issue the Underlying Shares, the Warrants and the
Broker Options, the Warrant Shares and the Broker Shares, and a certified copy of all such resolutions shall have been delivered by the Corporation to the Agents; 

  

	 	(ii)	all actions required to be taken by or on behalf of Peru Copper including, without limitation, the passing of all required resolutions of the directors, including committees of the
directors, and shareholders of Peru Copper, shall have occurred in order to complete the transactions contemplated by this Agreement, including, without limitation, to create and issue the Investment Shares and to complete the Investment in Peru
Copper, and a certified copy of all such resolutions shall have been delivered by Peru Copper to the Agents; 

  

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	 	(iii)	the Corporation and Peru Copper shall have delivered or caused to be delivered to the Agents: 

  

	 	A.	a favourable legal opinion of Canadian counsel to the Corporation and Peru Copper, Cassels Brock & Blackwell LLP, and local counsel in the Province of British Columbia
acceptable to the Agents, addressed to Corporation, the Agents, legal counsel to the Agents and the Subscribers, and addressing such matters, as the Agents or its legal counsel may reasonably request; 

  

	 	B.	a favourable legal opinion of U.S. counsel to the Corporation and Peru Copper addressed to the Corporation, the Agents, legal counsel to the Agents and the Subscribers, addressing
such matters as the Agents or its legal counsel may reasonably request; 

  

	 	C.	favourable legal opinions of Cayman Islands legal counsel and Peruvian legal counsel to the Corporation and the Subsidiaries addressed to the Agents, legal counsel to the Agents and
the Subscribers with respect to the corporate structure and ownership of the Subsidiaries (including as to the due issuance of the Investment Shares) and also in respect of the due approval and execution, and binding nature of, the Option Agreement,
and Minera Peru’s right and interest in the Properties, and to be in form and substance, acceptable in all reasonable respects to the Agents’s counsel, and addressing such other matters as the Agents or its legal counsel may reasonably
request; 

  

	 	D.	certificates dated the Closing Date signed by appropriate officers of the Corporation and of Peru Copper and addressed to, among others, the Agents and the Subscribers with respect
to the articles and by-laws of the Corporation and of Peru Copper, the resolutions of the directors and shareholders, if any, of the Corporation and of Peru Copper and any other corporate action taken relating to this Agreement, the Ancillary
Documents and the Investment and with respect to such other matters as the Agents or its legal counsel may reasonably request and including specimen signatures of the signing officers of the Corporation and Peru Copper; 

  

	 	E.	a certificate dated the Closing Date addressed to, among others, the Agents and the Subscribers signed by the President and any one other senior officers of the Corporation, and
signed by an officer of Peru Copper, acceptable to the Agents substantially in the form of the certificate attached hereto as Schedule “D” and also addressing such additional matters as the Agents or its counsel may reasonably request;

  

	 	F.	a Subscription Agreement from each Purchaser accepted and signed by the Corporation; 

  

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	 	G.	on the First Closing Date definitive certificates representing the Notes and Special Warrants comprising the Units and on the Second Closing Date definitive certificates
representing the Notes, in each case registered in the names of the Subscribers or in such other names as the Subscribers may have directed pursuant to the Subscription Agreements; 

  

	 	H.	on the First Closing Date definitive certificates representing the Investment Shares registered in the name of the Corporation; 

  

	 	I.	a fully executed copy of the Shareholders Agreement; and 

  

	 	J.	such further documents as may be contemplated by this Agreement or as the Agents or their legal counsel may reasonably require; 

  
 all in form and substance satisfactory to the Agents, acting reasonably;

  

	 	(iv)	the Corporation shall have delivered or caused to be delivered to the Agents on the First Closing Date definitive certificates representing the Broker Warrants to be issued by the
Corporation to the Agents as provided in Section 7(b) of this Agreement against the delivery from the Agents to the Corporation of receipts for such certificate; 

  

	 	(v)	on the First Closing Date the Agents shall have delivered or caused to be delivered to the Corporation, one or more cheques or bank drafts made payable to the Corporation in an
amount equal to the aggregate Subscription Price for the Treasury Offering, less an amount equal to the amount of the commission of the Agents (payable in respect of the sale of the Units issued on the First Closing Date) and the Expenses incurred
by the Agents in respect of the First Closing; 

  

	 	(vi)	on the Second Closing Date the Agents shall have delivered or caused to be delivered to the Selling Shareholders, one or more cheques or bank drafts made payable to the Selling
Shareholders in an amount equal to the aggregate Subscription Price for the Secondary Offering, less an amount equal to the amount of the commission of the Agents (payable in respect of the Notes issued on the Second Closing Date) and the Expenses
incurred since the First Closing Date; 

  

	 	(vii)	the Agents shall have delivered or caused to be delivered to the Corporation and the Selling Shareholders: 

  

	 	A.	an executed certificate in the form set forth in Schedule “D” attached hereto regarding the nature of offers and sales of Offered Securities in the United States to, or
for the account or benefit of, U.S. Persons; and 

  

	 	B.	such further documents as may be contemplated by this Agreement or as the Corporation, the Selling Shareholders or their legal counsel may reasonably require;

  

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 all in form and substance satisfactory to the Corporation, acting reasonably. 
  

	6.	Closings 

  

	 	(a)	Closings: The Closings shall be completed at the office of counsel for the Corporation at the Closing Time on the Closing Dates. 

  

	 	(b)	Conditions of Closing: The following are conditions precedent to the obligation of the Agents to complete the Closing and of the Subscribers to purchase the Offered
Securities, which conditions the Corporation and the Selling Shareholders covenant and agree to use their commercially reasonable best efforts to fulfill within the time set out herein therefor, and which conditions may be waived in writing in whole
or in part by the Agents on their behalf and on behalf of Subscribers, in the Agents’ sole discretion: 

  

	 	(i)	the completion, to the satisfaction of BMO Nesbitt Burns, of any and all technical, financial, legal and other due diligence deemed necessary by BMO Nesbitt Burns, on or prior to
the Closing Date; 

  

	 	(ii)	the Agents shall have received the documents set forth in Section 5 of this Agreement to be delivered to the Agents; 

  

	 	(iii)	each of the Corporation, Peru Copper, BMO Nesbitt Burns and the Peru Copper Shareholders shall have entered into a shareholders’ agreement (the “Shareholders’
Agreement”) in form and substance acceptable to BMO Nesbitt Burns; 

  

	 	(iv)	the Investment Shares will have been issued by Peru Copper and registered in the name of the Corporation and will represent 14.6% (19.7% if the Secondary Offering is completed in
full) of all of the issued and outstanding shares of Peru Copper on a fully diluted basis; 

  

	 	(v)	the representations and warranties of each of the Corporation and Peru Copper contained herein shall be true and correct as of the Closing Time with the same force and effect as if
made at and as of the Closing Time after giving effect to the transactions contemplated hereby; 

  

	 	(vi)	each of the Corporation and Peru Copper shall have complied in all material respects with all covenants, and satisfied all obligations, terms and conditions, contained herein to be
complied with and satisfied by each of them at or prior to the Closing Time; and 

  

	 	(vii)	the Agents shall not have previously terminated the obligations thereof pursuant to this Agreement. 

  

	7.	Fee 

  

	 	(a)	Commission and Work Fee: In consideration of the agreement of the Agents to act as Agents in respect of the Offering, and in consideration of the services performed and to be
performed by the Agents in connection therewith, including, without limitation: 

  

	 	(i)	soliciting offers to purchase the Offered Securities; 

  

 - 13 - 

	 	(ii)	participating in the preparation of the form of the Subscription Agreements and certain of the Ancillary Documents; and 

  

	 	(iii)	advising the Corporation with respect to the private placement of the Offered Securities; 

  
 the Corporation shall pay to the Agents at the First Closing Time against receipt of payment of the Subscription Price for
the Treasury Offering, a fee equal to 6% of the aggregate Subscription Price for the Units sold under the Treasury Offering and the Selling Shareholders shall pay to the Agents at the Second Closing Time against receipt of payment of the
Subscription Price for the Secondary Offering, a fee equal to 6% of the aggregate Subscription Price for the Notes sold under the Secondary Offering. 
  

	 	(b)	Broker Warrants: In addition to the commission payable to the Agents pursuant to Section 7(a) hereof, as additional consideration for the services performed and to be
performed by the Agents hereunder, the Corporation shall issue to the Agents at the Closing Time on the First Closing Date pro rata in accordance with their participating interests set forth in subsection 3(a) herein, the Broker Warrants equal in
number to 5% of the Units sold under the Treasury Offering (other than up to 785,714 Units sold to persons designated prior to Closing by the President of Peru Copper and other than any of the Additional Units). The Broker Warrants are exchangeable
at any time and will automatically be exchanged upon completion of an IPO, for Broker Options, which will entitle the Agents to purchase, at a price of US$1.40 per share, up to an equivalent number of Notes (if exercised prior to completion of an
IPO) or Common Shares (if exercised after an IPO). The Broker Warrants and the Broker Options may be exercised at any time and from time to time after the First Closing Date until the date that is three years following the First Closing Date, and
the Broker Warrant Certificate will be in form and substance satisfactory to the Agents and will be delivered to the Agents at the First Closing Time. The Broker Options will be issued and qualified under a prospectus filed in connection with an
IPO. 

  

	 	(c)	Covenants, Restrictions on Exercise and Resale: The Agents acknowledge that the Broker Warrants, the Broker Options and the Broker Shares have not been registered under the
1933 Act or the Securities Laws of any state of the United States and that the Broker Warrants may not be exercised in the United States or by or on behalf of a U.S. Person, nor may the Broker Shares be offered or sold in the United States unless an
exemption from registration under the 1933 Act and any applicable state Securities Laws is available and an opinion of counsel to such effect in form and substance to the Corporation acting reasonably has been rendered. 

  

 - 14 - 

	8.	Representations and Warranties 

  
 Each of the Corporation and Peru Copper hereby represents and warrants to the Agents and the Subscribers, and acknowledges that the Agents and the
Subscribers are relying upon each of such covenants, representations and warranties in completing the Closing, as follows: 
  

	 	(a)	The Corporation and each Subsidiary has been incorporated and organized and is a valid and subsisting corporation under the laws of its jurisdiction of incorporation set out in
Schedule A and has all requisite corporate power and authority to carry on its business as now conducted or proposed to be conducted and to own or lease and operate the Properties and assets thereof and each of them has all requisite corporate power
and authority to enter into, execute and deliver each of this Agreement, the Subscription Agreements and the Ancillary Documents to which it is a party and to carry out the obligations thereof hereunder and thereunder. 

  

	 	(b)	The Corporation and each Subsidiary is current with all filings required to be made under its jurisdiction of incorporation and all other jurisdictions in which it exists or carries
on any material business and has all necessary licences, leases, permits, authorizations and other approvals necessary to permit it to conduct its business as currently conducted, except where the absence of such power or authority or failure to
make any filing or obtain any licence, lease, permit, authorization or other approval would not have a material adverse effect on the Corporation and the Subsidiaries, taken as a whole. 

  

	 	(c)	The Corporation and each Subsidiary has conducted and is conducting the business thereof in compliance in all material respects with all applicable laws, rules, regulations,
tariffs, orders and directives of each jurisdiction in which it carries on a material portion of its business and possesses all material approvals, consents, certificates, registrations, authorizations, permits and licenses issued by the appropriate
provincial, state, municipal, federal or other regulatory agency or body necessary to carry on the business currently carried on, or contemplated to be carried on, by it, is in compliance in all material respects with the terms and conditions of all
such approvals, consents, certificates, authorizations, permits and licenses and with all laws, regulations, tariffs, rules, orders and directives material to the operations thereof, and none of the Corporation or any Subsidiary has received any
notice of the modification, revocation or cancellation of, or any intention to modify, revoke or cancel or any proceeding relating to the modification, revocation or cancellation of any such approval, consent, certificate, authorization, permit or
license which, singly or in the aggregate, if the subject of an unfavourable decision, order, ruling or finding, would materially adversely affect the conduct of the business or operations of, or the assets, liabilities (contingent or otherwise) or
condition (financial or otherwise) of, the Corporation and the Subsidiaries, taken as a whole. 

  

	 	(d)	Neither the Corporation nor any Subsidiary has committed an act of bankruptcy or is insolvent, has proposed a compromise or arrangement to its creditors generally, has had a
petition or a receiving order in bankruptcy filed against it, has made a voluntary assignment in bankruptcy, has taken any proceedings with respect to a compromise or arrangement, has taken any proceedings to have itself 

  

 - 15 - 

 declared bankrupt or wound-up, has taken any proceedings to have a receiver appointed for any of its
Properties or assets or has had any execution or distress become enforceable or become levied upon any of its Properties or assets. 
  

	 	(e)	The Corporation is authorized to issue an unlimited number of Common Shares and an unlimited number of Preferred Shares, issuable in series, of which as of the date hereof there is,
and immediately prior to the First Closing there will be, one Common Share issued and outstanding as fully paid and non-assessable. Immediately prior to the First Closing there will not be any outstanding options, rights or privileges (whether
preemptive, contractual or otherwise) to purchase any Common Shares or Preferred Shares of the Corporation except pursuant to the Stock Options or the Shareholders Agreement. Immediately prior to the Second Closing there will not be any outstanding
options, rights or privileges (whether preemptive, contractual or otherwise) to purchase any Common Shares or Preferred Shares of the Corporation other than the Underlying Shares, pursuant to the Shareholder s Agreement or pursuant to the Stock
Options, the Special Warrants or the Broker Warrants. Other than the foregoing no Person will have any agreement, option, right or privilege (whether pre-emptive, contractual or otherwise) capable of becoming an agreement for the purchase,
acquisition, subscription for or issue of any of the unissued shares or other securities of the Corporation until after the completion of an IPO. 

  

	 	(f)	Upon completion of the First Closing, the Corporation will be the registered and beneficial owner of 8,571,429 ordinary shares of Peru Copper, representing 14.6% of all of the
issued and outstanding shares and other securities of Peru Copper. Immediately upon completion of the Second Closing, the Corporation will be the registered and beneficial owner of 11,571,429 ordinary shares of Peru Copper, representing 19.7% of all
of the issued and outstanding shares and other securities of Peru Copper. No Person other than the Corporation in accordance with the terms of the Shareholders Agreement will have any right to acquire any issued or unissued shares or securities
convertible or exercisable into shares or other securities of Peru Copper; 

  

	 	(g)	Assuming all of the Offered Securities are sold under the Offering, upon completion of the Second Closing, and upon the exchange by the Peru Copper Shareholders with the Corporation
of all of their shares of Peru Copper in consideration of an equal number of Preferred Shares of the Corporation in accordance with the Shareholders Agreement: 

  

	 	(i)	the Corporation will own all of the issued and outstanding shares of Peru Copper and no Person will have any right to require Peru Copper to issue any shares or other securities;
and 

  

	 	(ii)	all of the outstanding shares of the Corporation will be owned as follows: 

  

			
	 	  	No. of Shares:

	 (Former) Peru Copper Shareholders:
	  	47,000,000
	 Subscribers:
	  	11,571,429

  

 - 16 - 

 and in addition, there will be outstanding only the following rights or options to purchase shares of the
Corporation (assuming none of the following has previously been exercised): 
  

			
	 	  	No. of Shares issuable on
conversion or exercise:

	 Stock Options:
	  	1,500,000
	 Warrants
	  	4,285,715
	 Broker Warrants
	  	389,285

  

	 	(h)	At the Closing Time Peru Copper will be the registered and beneficial owner of all of the issued and outstanding shares and other securities of Minera Peru and no other person will
have any right to acquire any issued or unissued shares or securities convertible or exercisable into shares or other securities of Minera Peru, other than one share of Minera Peru that may be held in trust by a nominee in order to comply with
Peruvian law. 

  

	 	(i)	None of the issue of the Offered Securities or the Broker Warrants will be subject to any pre-emptive right or other contractual right to purchase securities granted by the
Corporation or to which the Corporation is subject. Other than the Shareholders’ Agreement, there are no, and at the First Closing and the Second Closing there will be no, shareholders’ agreements, pooling agreements, voting trusts or
other similar agreements with respect to the ownership or voting of any of the securities of the Corporation or pursuant to which any Person may have any right or claim in connection with any existing or past equity interest in the Corporation.

  

	 	(j)	The completion of the Investment will not be subject to any pre-emptive right or other contractual right to purchase securities granted by Peru Copper or to which Peru Copper is
subject. Other than the Shareholders’ Agreement, there is no, and at the Closing Time there will be no, shareholders’ agreements, pooling agreements, voting trusts or other similar agreements with respect to the ownership or voting of any
of the securities of Peru Copper or pursuant to which any person may have any right or claim in connection with any existing or past equity interest in Peru Copper. 

  

	 	(k)	The outstanding shares of the Subsidiaries are issued and outstanding as fully paid and non-assessable shares and are legally and beneficially owned by the Corporation or a
Subsidiary as set forth in Schedule “A” and, except as set forth in Schedule “A”, no Person has any agreement, option, right or privilege (whether pre-emptive, contractual or otherwise) capable of becoming an agreement for the
purchase, acquisition, subscription for or issue of any of the unissued shares or other securities of any of the Subsidiaries or for the purchase or acquisition of any of the outstanding shares or other securities of any of the Subsidiaries.

  

	 	(l)	All necessary corporate action has been taken to authorize the issue and sale of, and the delivery of certificates representing, the Offered Securities and at the

  

 - 17 - 

 Closing Time the Notes and the Special Warrants comprising the Offered Securities will be validly issued
as fully paid and non-assessable. All necessary corporate action has been taken by the Corporation to authorize the creation and issuance of, and the delivery of the certificate representing, the Broker Warrants and, when issued in accordance with
the provisions of this Agreement, the Broker Warrants will be validly issued and outstanding. All necessary corporate action has been taken by the Corporation to reserve for issuance the Underlying Shares upon the conversion of the Notes, the
Warrants upon exercise of the Special Warrants, the Warrant Shares upon due exercise of the Warrants, the Broker Options upon exercise of the Broker Warrants and the Broker Shares upon the due exercise of the Broker Options. Upon the exercise of
Warrants and the Broker Options and payment of the requisite consideration for the Warrant Shares and Broker Shares in accordance with the provisions of the Warrants and the Broker Option Certificate, the Warrant Shares and Broker Shares will be
validly issued as fully paid and non-assessable shares. All necessary corporate action has been taken by the Corporation to authorize the issuance of, and the delivery of certificates representing, the Underlying Shares upon the conversion of the
Notes. 
  

	 	(m)	All necessary corporate action has been taken to authorize the issue and sale of, and the delivery of certificates representing, the Investment Shares and at the First Closing Time
the Investment Shares will be validly issued as fully-paid and non-assessable shares of Peru Copper. The Investment Shares will represent 14.6% (19.7% if the Secondary Offering is completed in full) of all outstanding shares of Peru Copper.

  

	 	(n)	None of the Investment, the offering and sale of the Offered Securities, the execution and delivery of this Agreement and the Ancillary Documents, the compliance by the Corporation
and Peru Copper with the provisions of this Agreement and the Ancillary Documents or the consummation of the transactions contemplated herein and therein including, without limitation, the issue of the Offered Securities, the Lowell Units, the
Broker Warrants and the Investment Shares for the consideration and upon the terms and conditions set forth herein, the issuance of the Underlying Shares, the Warrants, the Warrant Shares, the Broker Options or the Broker Shares for the
consideration and upon the terms and conditions set forth in the Notes, the Special Warrants or Broker Warrant Certificate do or will (i) require the consent, approval, or authorization, order or agreement of, or registration or qualification with,
any governmental agency, body or authority, court, stock exchange, securities regulatory authority or other Person, except (A) such as have been obtained, or (B) such as may be required under applicable Securities Laws of the Offering Jurisdictions
and will be obtained by the Closing Time, or (ii) conflict with or result in any breach or violation of any of the provisions of, or constitute a default under, any indenture, mortgage, deed of trust, lease or other agreement or instrument to which
the Corporation or any Subsidiary is a party or by which any of them or any of the Properties or assets thereof is bound, or the articles or by-laws or any other constating document of the Corporation or any Subsidiary or any resolution passed by
the directors (or any committee thereof) or shareholders of the Corporation or any Subsidiary, or any statute or any judgment, decree, order, rule, policy or regulation of any court, governmental authority, arbitrator, stock exchange or securities
regulatory authority applicable to the Corporation or any 

  

 - 18 - 

 Subsidiary or any of the Properties or assets thereof, which could have a material adverse effect on the
condition (financial or otherwise), business, Properties or results of operations of the Corporation and the Subsidiaries, taken as a whole. 
  

	 	(o)	The Corporation has all requisite corporate power and capacity to enter into this Agreement and the Ancillary Documents and to do all acts and things and execute and deliver all
documents as are required hereunder and thereunder to be done, observed, performed or executed and delivered by it in accordance with the terms hereof and thereunder, and the Corporation has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement and the Ancillary Documents and to observe and perform the provisions of this Agreement and the Ancillary Documents in accordance with the provisions hereof and thereunder including, without
limitation, the issue of the Offered Securities, the Lowell Units and the Broker Warrants for the consideration and upon the terms and conditions set forth herein, the completion of the Investment concurrently with the completion of the Offering,
and the issue of the Underlying Shares, the Warrants, the Warrant Shares, the Broker Options and the Broker Shares for the consideration and upon the terms and conditions set forth in the Notes, the Special Warrants and the Broker Warrant
Certificate, respectively. 

  

	 	(p)	Peru Copper has all requisite corporate power and capacity to enter into this Agreement and the Ancillary Documents and to do all acts and things and execute and deliver all
documents as are required hereunder and thereunder to be done, observed, performed or executed and delivered by it in accordance with the terms hereof and thereunder, and Peru Copper has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement and the Ancillary Documents and to observe and perform the provisions of this Agreement and the Ancillary Documents in accordance with the provisions hereof and thereunder including, without
limitation, the issue of the Investment Shares for the consideration and upon the terms and conditions set forth herein. 

  

	 	(q)	This Agreement has been authorized, executed and delivered by each of the Corporation and Peru Copper and constitutes a valid and legally binding obligation of each of them
enforceable against each of them in accordance with the terms thereof and upon being executed and delivered the Ancillary Documents (including, without limitation, the Broker Warrant Certificate and the Special Warrants) to which it is a party will
constitute valid and legally binding obligations of each of them enforceable against each of them in accordance with the terms thereof, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws
relating to or affecting the rights of creditors generally and except as limited by the application of equitable principles when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the ability to
sever unenforceable terms, may be limited by applicable law. 

  

	 	(r)	The Information does 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. There is no fact known to the Corporation or Peru Copper which the Corporation or Peru Copper has not disclosed to the Agents which materially 

  

 - 19 - 

 adversely affects the assets, liabilities (contingent or otherwise), capital, affairs, business,
operations or condition (financial or otherwise) of the Corporation or Peru Copper or the ability of the Corporation or Peru Copper to perform its obligations under this Agreement or the Ancillary Documents or which would otherwise reasonably be
considered to be material to any Person intending to make an equity investment in the Corporation. 
  

	 	(s)	There has not occurred any material adverse change in the assets, liabilities (contingent or otherwise), Properties, capital, affairs, business, operations or condition (financial
or otherwise) of the Corporation or any Subsidiary which has not been disclosed to the Agents and the Corporation agrees to forthwith notify the Agents in writing prior to the Closing if any of the foregoing occurs prior to, or is reasonably
anticipated by the Corporation to occur prior to or within 10 days after, the Closing Date. 

  

	 	(t)	No order preventing, ceasing or suspending trading in any securities of the Corporation or Peru Copper or prohibiting the issue and sale of securities by the Corporation or Peru
Copper has been issued and no proceedings for either of such purposes have been instituted or, to the best of the knowledge of the Corporation and Peru Copper, are pending, contemplated or threatened. 

  

	 	(u)	The Financial Statements together with the auditors’ report thereon and the notes thereto have been prepared in accordance with generally accepted accounting principles
applicable in Canada applied on a basis consistent with prior periods (except as disclosed in such Financial Statements), are substantially correct in every particular and present fairly the financial condition and position of Peru Copper as at the
dates thereof; 

  

	 	(v)	Since the date of the Financial Statements, other than as contemplated in this Agreement or as set forth in Schedule “E”, none of: 

  

	 	(i)	the Corporation or any Subsidiary has paid or declared any dividend or incurred any material capital expenditure or made any commitment therefor; 

  

	 	(ii)	the Corporation or any Subsidiary has incurred any obligation or liability, direct or indirect, contingent or otherwise, except in the ordinary course of business and which is not,
and which in the aggregate are not, material; and 

  

	 	(iii)	the Corporation or any Subsidiary has entered into any material transaction. 

  

	 	(w)	Other than (i) pursuant to the Investment, (ii) pursuant to the Shareholders’ Agreement, and (iii) as contemplated by this Agreement, none of the Corporation or any Subsidiary
has approved, is contemplating, has entered into any agreement in respect of, or has any knowledge of: 

  

	 	(i)	the purchase of any property or asset or any interest therein or the sale, transfer or other disposition of any property or asset or any interest therein currently owned, directly
or indirectly, by the Corporation or any Subsidiary whether by asset sale, transfer of shares or otherwise; 

  

 - 20 - 

	 	(ii)	the change of control (by sale or transfer of shares or sale of all or substantially all of the property and assets of the Corporation or any Subsidiary or otherwise) of the
Corporation or any Subsidiary; or 

  

	 	(iii)	a proposed or planned disposition of shares by any shareholder who owns, directly or indirectly, 10% or more of the outstanding shares of any Subsidiary. 

 

	 	(x)	The Corporation and each Subsidiary has filed in a timely manner all necessary tax returns and notices and has paid all applicable taxes of whatsoever nature for all tax years prior
to the date hereof to the extent that such taxes have become due or have been alleged to be due and none of the Corporation or any Subsidiary is aware of any tax deficiencies or interest or penalties accrued or accruing, or alleged to be accrued or
accruing, thereon where, in any of the above cases, it might reasonably be expected to result in any material adverse change in the condition (financial or otherwise), or in the earnings, business or affairs of the Corporation or any Subsidiary and
there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by any of them or the payment of any material tax, governmental charge, penalty, interest or fine against any of
them. There are no material actions, suits, proceedings, investigations or claims now threatened or pending against the Corporation or any Subsidiary which could result in a material liability in respect of taxes, charges or levies of any
governmental authority, penalties, interest, fines, assessments or reassessments or any matters under discussion with any governmental authority relating to taxes, governmental charges, penalties, interest, fines, assessments or reassessments
asserted by any such authority and the Corporation and each Subsidiary has withheld (where applicable) from each payment to each of the present and former officers, directors, employees and consultants thereof the amount of all taxes and other
amounts, including, but not limited to, income tax and other deductions, required to be withheld therefrom, and has paid the same or will pay the same when due to the proper tax or other receiving authority within the time required under applicable
tax legislation. 

  

	 	(y)	Neither the Corporation nor any Subsidiary is in violation of any term of the articles or by-laws or any constating document thereof. Neither the Corporation nor any Subsidiary is
in violation of any term or provision of any material agreement, indenture or other instrument applicable to it which would result in any material adverse effect on the business, condition (financial or otherwise), capital, affairs or operations of
the Corporation or any Subsidiary. Neither the Corporation nor any Subsidiary is in default in the payment of any obligation owed which is now due and there is no action, suit, proceeding or investigation commenced, pending or, to the knowledge of
the Corporation and Peru Copper, threatened which, in the aggregate, might result in any material adverse effect on the business, condition (financial or otherwise), capital, affairs or operations of the Corporation or any Subsidiary or in any of
the material Properties or assets thereof or in any material liability on the part of the Corporation or any Subsidiary or which places, or could place, in question the validity or 

  

 - 21 - 

 enforceability of this Agreement, the Ancillary Documents or any document or instrument delivered, or to
be delivered, by the Corporation pursuant hereto or thereto. 
  

	 	(z)	Minera Peru has been granted the sole and exclusive option to acquire the Properties pursuant to the Option Agreement. The Option Agreement is in force and in good standing and none
of the parties thereto are in breach of any of the terms thereof. The Option Agreement is a legal, valid and binding obligation enforceable against each of the parties thereto. Upon exercise of the option under the Option Agreement, Minera Peru will
acquire the Properties on the terms set out in the Option Agreement subject only to the royalties set forth therein. Minera Peru has not granted any person any right to acquire any interest under the Option Agreement nor has it assigned any of its
rights thereunder. 

  

	 	(aa)	The Option Agreement grants Minera Peru the sole and exclusive right to explore for minerals on the Properties that are subject to the Option Agreement, subject to compliance with
applicable laws. Minera Peru has acquired or been granted all necessary surface rights, access rights and other necessary rights and interests relating to the Properties to permit it to explore for minerals, ores and metals and, upon due exercise of
the option in accordance with the Option Agreement, Minera Peru will have the right to exploit the resources of minerals on the Properties and develop a mine thereon. 

  

	 	(bb)	The Properties are in good standing under the applicable statutes and regulations of the jurisdictions in which they are situated. All leases, licences, permits and claims pursuant
to which the Corporation or any Subsidiary derive the interests thereof in such Property and assets are in good standing and, to the knowledge of the Corporation and Peru Copper, after due inquiry, there has been no material default under any such
lease, licence, permit or claim. All taxes, concession or lease payments required to be paid with respect to such Properties to the date hereof have been paid 

  

	 	(cc)	None of the Corporation or any Subsidiary is in default of any material term, covenant or condition under or in respect of any judgement, order, agreement or instrument to which it
is a party or to which it or any of the Property or assets thereof are or may be subject, and no event has occurred and is continuing, and no circumstance exists which has not been waived, which constitutes a default in respect of any commitment,
agreement, document or other instrument to which the Corporation or any Subsidiary is a party or by which it is otherwise bound entitling any other party thereto to accelerate the maturity of any amount owing thereunder or which would have a
material adverse effect upon the condition (financial or otherwise), capital, Properties, assets, operations or business of the Corporation or any Subsidiary. 

  

	 	(dd)	The Corporation and each Subsidiary is in compliance with all laws and regulations respecting employment and employment practices, terms and conditions of employment, and has not
and is not engaged in any unfair labour practice. There is no labour strike, dispute, slowdown, stoppage, complaint or grievance pending or, to the best of the knowledge of the Corporation and Peru Copper, threatened against the Corporation or any
Subsidiary. No union representation question exists respecting the employees of the Corporation or any 

  

 - 22 - 

 Subsidiary and no collective bargaining agreement is in place or currently being negotiated by the
Corporation or any Subsidiary. Neither the Corporation nor any Subsidiary has received any notice of any unresolved matter and there are no outstanding orders under any employment or human rights legislation in any jurisdiction in which the
Corporation or any Subsidiary carries on business or has employees. No employee has any agreement as to the length of notice required to terminate his or her employment with the Corporation or any Subsidiary in excess of twelve months or equivalent
compensation and all benefit and pension plans of the Corporation or any Subsidiary are funded in accordance with applicable laws and no past service funding liability exist thereunder. 
  

	 	(ee)	The Corporation and the Subsidiaries: 

  

	 	(i)	and the Properties, assets and operations thereof comply in all material respects with all applicable “Environmental Laws” (which term means and includes, without
limitation, any and all applicable international, federal, provincial, state, municipal or local laws, statutes, regulations, treaties, orders, judgments, decrees, ordinances, official directives and all authorizations relating to the environment,
occupational health and safety, or any “Environmental Activity” (which term includes, without limitation, any past, present or future activity, event or circumstance in respect of a “Contaminant” (which term includes, without
limitation, any pollutants, dangerous substances, liquid wastes, hazardous wastes, hazardous materials, hazardous substances or contaminants), including, without limitation, the storage, use, holding, collection, purchase, accumulation, assessment,
generation, manufacture, construction, processing, treatment, stabilization, disposition, handling or transportation thereof, or the release, escape, leaching, dispersal or migration thereof into the natural environment, including the movement
through or in the air, soil, surface water or groundwater)); 

  

	 	(ii)	do not have any knowledge of, and have not received any notice of, any material claim, judicial or administrative proceeding, pending or threatened against, or which may affect,
either the Corporation or any Subsidiary or any of the Properties, assets or operations thereof, relating to, or alleging any violation of any Environmental Laws, the Corporation is not aware of any facts which could give rise to any such claim or
judicial or administrative proceeding and, to the knowledge of the Corporation and Peru Copper, after due inquiry, neither the Corporation nor any Subsidiary nor any of the Properties, assets or operations thereof is the subject of any
investigation, evaluation, audit or review by any “Governmental Authority” (which term includes, without limitation, any national, federal government, province, state, municipality or other political subdivision of any of the foregoing,
any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the
foregoing) to determine whether any violation of any Environmental Laws has occurred or is occurring or whether any remedial action is needed in connection with a release of any Contaminant into the environment, except for compliance investigations
conducted in the normal course by any Governmental Authority; 

  

 - 23 - 

	 	(iii)	have not given or filed any notice under any federal, state, provincial or local law with respect to any Environmental Activity, the Corporation and the Subsidiaries do not have any
liability (whether contingent or otherwise) in connection with any Environmental Activity and the Corporation is not aware of any notice being given under any federal, state, provincial or local law or of any liability (whether contingent or
otherwise) with respect to any Environmental Activity relating to or affecting the Corporation or any Subsidiary or the Properties, assets, business or operations thereof; 

  

	 	(iv)	do not store any Contaminant on the Property and have not disposed of any hazardous or toxic waste, in each case in a manner contrary to any Environmental Laws, and there are no
Contaminants on any of the premises or Properties at which the Corporation or any Subsidiary carries on business, in each case other than in compliance with Environmental Laws; and 

  

	 	(v)	to the knowledge of the Corporation, Peru Copper and Minera Peru, are not subject to any contingent or other liability relating to the restoration or rehabilitation of land, water
or any other part of the environment (except for those derived from normal exploration activities) or non-compliance with Environmental Law. 

  

	 	(ff)	There are no actions, suits, proceedings, inquiries or investigations existing, pending or, to the knowledge of the Corporation, Peru Copper and Minera Peru, threatened against or
which materially adversely affect the Corporation or any Subsidiary or to which any of the Property or assets thereof is subject, at law or equity, or before or by any court, federal, provincial, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, which may in any way materially adversely affect the condition (financial or otherwise), capital, Properties, assets, operations or business of the Corporation or any
Subsidiary or the ability of any of them to perform the obligations thereof and none of the Corporation or any Subsidiary is subject to any judgement, order, writ, injunction, decree, award, rule, policy or regulation of any Governmental Authority,
which in the aggregate, would result in a material adverse effect on the condition (financial or otherwise), capital, Properties, assets, operations or business of the Corporation or any Subsidiary or the ability of the Corporation to perform its
obligations under this Agreement or the Ancillary Documents. 

  

	 	(gg)	The Corporation has not withheld from the Agents any facts relating to the Corporation, the Subsidiaries, the Properties or the Offering that would be material to Subscribers.

  

	 	(hh)	The Corporation is not a reporting issuer (or the equivalent) in any Offering Jurisdiction. 

  

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	9.	Covenants of the Corporation 

  

	 	(a)	Consents and Approvals: Immediately following the acceptance by the Corporation hereof and prior to the Closing Time, the Corporation covenants and agrees with the Agents and
the Subscribers that the Corporation will: 

  

	 	(i)	use the best efforts thereof to obtain, to the extent not already obtained, any necessary regulatory consents from the Securities Commissions of the Offering Jurisdictions for the
Offering on such terms as are mutually acceptable; and 

  

	 	(ii)	make all necessary filings and use the best efforts thereof to obtain all other necessary regulatory and other consents and approvals required in connection with the transactions
contemplated by this Agreement. 

  

	 	(b)	Compliance with Law: The Corporation hereby covenants and agrees with the Agents and the Subscribers that the Corporation will: 

  

	 	(i)	fulfill all legal requirements to permit the creation, issue, offering and sale of the Offered Securities and the Lowell Units, the creation and issue of the Warrants, the Broker
Warrants and the Broker Options and the reservation and issue of the Underlying Shares, the Warrant Shares and the Broker Shares as contemplated in this Agreement including, without limitation, in compliance with the Securities Laws of the Offering
Jurisdictions to enable the Offered Securities to be offered for sale and sold to the Subscribers, the Lowell Units to be issued to the Person entitled thereto and the Broker Warrants to be issued to the Agents, and to enable the Underlying Shares,
the Warrants, the Warrant Shares, the Broker Options and the Broker Shares to be issued, without the necessity of filing a prospectus in the Offering Jurisdictions; 

  

	 	(ii)	the Corporation shall deliver to the Agents a copy of all press releases made and other documents filed with any regulatory authority forthwith upon such press release being made or
other document being filed until a period of 30 days after the Second Closing; and 

  

	 	(iii)	within the applicable time periods after each Closing Date the Corporation shall file such documents as may be required under the Securities Laws of the Offering Jurisdictions
relating to the offering of the Offered Securities, the Lowell Units and the issue of the Broker Warrants. 

  

	 	(c)	Prospectus Filing: The Corporation hereby covenants and agrees with the Agents and the Subscribers that the Corporation will use its commercially reasonable best efforts to
prepare and file the Prospectus in respect of a Qualified IPO in each of the Offering Jurisdictions, as soon as possible, and in any event within six months, after the First Closing Date. The Corporation will ensure that at all relevant times the
Prospectus will fully comply with the requirements of the Securities Laws of the Jurisdictions where it is filed and will not contain any misrepresentation and that the information and statements contained therein will be true and correct in all
material respects and will provide full, true and plain 

  

 - 25 - 

 disclosure of all material facts relating to the Offering, the Corporation, the Subsidiaries, the
Properties (including the Option Agreement), the Warrants, the Broker Options and the Underlying Shares. 
  

	 	(d)	Additional Units: If the Corporation does not complete a Qualified IPO within six months after the First Closing Date, the Corporation will issue to Subscribers additional
Units (“Additional Units”) equal to 10% of the number of Units and Notes purchased by them under this Offering for no additional consideration. If the Corporation does not complete an IPO within six months after the First Closing Date, the
Corporation will issue to Subscribers each month thereafter that an IPO has not been completed Additional Units equal to 1% of the number of Units and Notes purchased by them under this Offering for no additional consideration until the Corporation
completes an IPO. The maximum number of Additional Units to be issued as a result of the Corporation’s failure to complete an IPO will be 20% of the total number of Units issued and Notes sold under the Treasury Offering and the Secondary
Offering. As an alternative to the issuance of Additional Units, the Corporation, with the prior approval of BMO Nesbitt Burns, may increase the number of Underlying Shares to be issued upon the conversion of the Notes, provided that the net effect
of doing so will result in the Subscribers having the same percentage equity interest in the Corporation after the change in the conversion rate as if the Additional Units had been issued. 

  

	 	(e)	Liquidity Event: If the Corporation has not completed an IPO within 12 months following the First Closing Date then, upon it being requested to do so by a Subscriber, the
Corporation will use its commercially reasonable best efforts to facilitate a secondary offering of any Notes, or Common Shares acquired on the conversion of Notes, or Warrant Shares, held by Subscribers under this Offering (i) within a period of 30
days following the first anniversary of the First Closing Date or (ii) at any time thereafter so long as the Subscriber is requesting the sale of at least 500,000 Notes, Common Shares and, or Warrant Shares. 

  

	 	(f)	Material Changes: During the period from the date hereof to and including the Second Closing Date, the Corporation shall notify the Agents in writing of:

  

	 	(i)	the full particulars of any material change (actual, anticipated, contemplated or threatened, financial or otherwise) in the business, Properties, affairs, operations, assets,
liabilities (contingent or otherwise), capital or control of the Corporation or any Subsidiary; 

  

	 	(ii)	any material fact in relation to the Corporation, any Subsidiary, or any Property or with respect to the Offered Securities, Broker Warrants or Broker Shares, which has arisen or
been discovered; and 

  

	 	(iii)	any change in any material fact (which for the purposes of this Agreement shall be deemed to include the disclosure of any previously undisclosed material fact) in relation to the
Corporation, any Subsidiary, or any Property or with respect to the Offered Securities, Broker Warrants or Broker Shares, which has arisen or been discovered which fact or change is, or may be, of such a nature as to materially and adversely affect
the Corporation, any Subsidiary, any Property or the value of the Offered Securities, Broker Warrants or Broker Shares. 

  

 - 26 - 

 The Corporation shall in good faith discuss with the Agents any fact or change in circumstances (actual
or anticipated) which is of such a nature that there is reasonable doubt whether written notice need be given under this Section 9(f), it being understood and agreed that the Corporation in consultation with the Agents shall be entitled to determine
whether a material change, material fact or change in a material fact has occurred. 
  

	 	(g)	Use of Proceeds: The Corporation will use the proceeds of the Offered Securities to pay the commission, fees and Expenses of the Agents and the Corporation in connection with
this Offering and to purchase the Investment Shares. Peru Copper, through Minera Peru, will use the proceeds so received by it as follows: 

  

	 	(i)	to replace the sum of US$2.0 million that was provided by Lowell Mineral Exploration LLC on behalf of Minera Peru under a letter of credit or other guarantee in favour of Centromin
Peru at the time Minera Peru signed the Option Agreement, plus interest in the amount of US$150,000 on the said US$2.0 million; 

  

	 	(ii)	to fulfil its first year expenditure commitments under the terms of the Option Agreement by conducting the first stage drilling and metallurgical testing on the Property as
recommended in the technical report prepared for Minera Peru Copper Syndicate S.A. by Independent Mining Consultants, Inc. dated February 13, 2004; and 

  

	 	(iii)	for general corporate purposes. 

  

	 	(h)	Issues of Further Securities: Other than the issuance of: 

  

	 	(i)	the Offered Securities (including the Notes and Special Warrants comprising the Units and the Notes sold pursuant to the Secondary Offering); 

  

	 	(ii)	the Stock Options and the Common Shares issued upon exercise of the Stock Options; 

  

	 	(iii)	the Underlying Shares issued upon conversion of the Notes; 

  

	 	(iv)	the Warrants upon exercise of the Special Warrants and the Warrant Shares issued upon due exercise of the Warrants; 

  

	 	(v)	the Broker Options upon exercise of the Broker Warrants and the Broker Shares issuable upon exercise of the Broker Options; 

  

	 	(vi)	the Notes or Common Shares issued to the Peru Copper Shareholders upon the exchange of their shares of Peru Copper; or 

  

	 	(vii)	securities issued pursuant an IPO, 

  
 the Corporation shall not directly or indirectly, offer, issue or sell, grant any option for the sale of, or enter into any derivative transaction
relating to or otherwise dispose of (or announce any intention do any of the foregoing), any Notes, Preferred Shares, Common Shares or other equity securities, or securities 
  

 - 27 - 

 convertible, exchangeable or exercisable for any Notes, Preferred Shares, Common Shares or equity
securities of the Corporation, for a period from the First Closing until six months following the closing of an IPO without the prior written consent of BMO Nesbitt Burns, which consent shall not be unreasonably withheld. 
  

	 	(i)	Engagement of Agent: If the Corporation decides to pursue an IPO, BMO Nesbitt Burns will be offered the opportunity to act as the exclusive financial advisor and lead manager
(whether as underwriter, agent or otherwise) and sole bookrunner in respect of the IPO of the Corporation such that BMO Nesbitt Burns shall be entitled to a minimum syndicate participation of 55%. 

  
 The terms of any engagement contemplated by this Section 9(i) shall be on
reasonable, customary and market competitive terms and the Corporation and BMO Nesbitt Burns shall enter into an agreement setting forth the terms of such engagement 
  

	 	(j)	Insurance: Promptly following the First Closing the Corporation and each Subsidiary will obtain policies of insurance that adequately cover all 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.

  

	 	(k)	Pre-emptive Right: Subscribers will have the right to maintain their pro rata interest in the Corporation under any subsequent offering of securities by the Corporation up to
and including an IPO (the “Pre-Emptive Right”) in accordance with the terms and conditions of the Shareholders’ Agreement. Any securities issued pursuant to the Pre-Emptive Right will be subject to the payment of a commission to any
agent or underwriter that acted in connection with such offering and the Pre-Emptive Right must be exercised or waived by the Subscriber prior to the commencement of marketing of any such offering. 

  

	10.	Representations and Warranties of the Selling Shareholders 

  

	 	(a)	Representations and Warranties of the Selling Shareholders: Each of the Selling Shareholders hereby jointly and not jointly and severally represents and warrants to the
Agents as follows, acknowledges that the Agents are relying upon such representations and warranties in entering into this Agreement and that the Subscribers shall, pursuant to their Subscription Agreements, obtain the benefit of such
representations and warranties (which are incorporated by reference in such Subscription Agreements) and may rely thereon in entering into such Subscription Agreements: 

  

	 	(i)	all of the Notes to be sold by each of the Selling Shareholders under the Secondary Offering at the Second Closing Date will be legally and beneficially owned by the Selling
Shareholders free and clear of any encumbrances; 

  

	 	(ii)	this Agreement has been duly authorized, executed and delivered on behalf of each of the Selling Shareholders and is a legal, valid and binding obligation of each of the Selling
Shareholders enforceable in accordance with its terms; 

  

 - 28 - 

	 	(iii)	each of the Notes to be sold by the Selling Shareholders under the Secondary Offering will be sold in compliance with all securities laws applicable to each Selling Shareholder
provided that the representations and warranties of each of the Subscribers in their respective Subscription Agreement is true and correct as at the Closing Time; 

  

	 	(iv)	there are no actions, suits, proceedings or investigations pending or, to the knowledge of each Selling Shareholder, threatened against or affecting the Selling Shareholders at law
or in equity which would prevent the Selling Shareholders from delivering the Preferred Shares and fulfilling their obligations hereunder; and 

  

	 	(v)	there is no Person acting for the Selling Shareholder entitled to any brokerage or finder’s fee in connection with this Agreement or any of the transactions contemplated
hereunder, except as provided herein. 

  

	11.	Covenants of the Selling Shareholders 

  

	 	(a)	Covenants of the Selling Shareholders: Each Selling Shareholder, severally and not jointly, covenants and agrees with the Agents (and acknowledges that the Subscribers,
pursuant to the terms of their respective Subscription Agreements, obtain the benefit of these covenants which are incorporated by reference in such Subscription Agreements) that each Selling Shareholder: 

  

	 	(i)	hereby appoints David De Witt as their agent on behalf of all Selling Shareholders to execute all Subscription Agreements and execute such other documents and take such other steps
as may be required on behalf of all Selling Shareholders to give effect to the provisions of this Agreement, the Subscription Agreements, the Shareholders’ Agreement and the Ancillary Documents; 

  

	 	(ii)	will enter into the Shareholders Agreement and take all steps that may be required to give effect to its terms; 

  

	 	(iii)	agrees that for a period from the First Closing Date until six months after completion of an IPO they will not sell any shares of the Corporation owned by them without the prior
written consent of BMO Nesbitt Burns, such consent not to be unreasonably withheld; and 

  

	 	(iv)	fulfill all legal requirements to permit the offering and sale of the Notes owned by them under the Secondary Offering as contemplated in this Agreement and perform all obligations
to be performed by them under the Subscription Agreement. 

  

	12.	U.S. Provisions 

  

	 	(a)	Representations and Warranties of the Agents: The Agents hereby represents and warrant to the Corporation, and the Agents hereby represent and warrant on

  

 - 29 - 

 behalf of the U.S. Affiliate, that, in connection with sales of Offered Securities in the United States
or to, or for the account or benefit of, a U.S. Person: 
  

	 	(i)	It has offered and sold, and will offer and sell, Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person only to U.S. Accredited Investors
and only as provided in Sections 12(a) and 12(b) hereof. 

  

	 	(ii)	Other than any banking and selling group agreement, it has not entered, and will not enter, into any contractual arrangement with respect to the distribution of the Offered
Securities in the United States, except with the U.S. Affiliate without the prior written consent of the Corporation. To the extent any selling group member intends to offer and sell Offered Securities in the United States or to, or for the account
or benefit of, a U.S. Person, the Agents shall require the selling group member to agree in writing, for the benefit of the Corporation, to comply with the same provisions of this Section 12 as apply to the Agents as if such provisions applied to
such selling group member. 

  

	 	(iii)	Immediately prior to soliciting such offerees, it had reasonable grounds to believe and did believe that each Person in the United States to whom, or for the account or benefit of
whom, a sale, offer or solicitation of an offer to purchase Offered Securities was made was and is a U.S. Accredited Investor. 

  

	 	(iv)	Neither it nor any of its affiliates nor any Person acting on its behalf (except as permitted in Section 12(a) and 12(b) hereof) has made or will make (i) any offer to sell or any
solicitation of an offer to purchase Offered Securities to any Person in the United States; (ii) any sale of Offered Securities to any Person unless (A) at the time the buy order was or will have been originated, the Purchaser was outside the United
States and not a U.S. Person or (B) the Agents, affiliate or Person acting on its behalf reasonably believed that such Purchaser was outside the United States and not a U.S. Person; or (iii) any Directed Selling Efforts in the United States with
respect to the Offered Securities. 

  

	 	(b)	Acknowledgements and Covenants of the Agents: The Agents hereby: 

  

	 	(i)	covenant with the Corporation that 

  

	 	A.	all offers and sales of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person will be effected through the Agents, through the U.S.
Affiliate, in transactions exempt from registration under the 1933 Act and any applicable state Securities Laws and in accordance with all applicable U.S. federal and state broker-dealer requirements, 

  

	 	B.	no written material will be used in connection with the offer or sale of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person, other than a
subscription agreement in a form agreed to between the Corporation and the Agents, 

  

 - 30 - 

	 	C.	offers and sales of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person, shall not be made (i) by any form of General Solicitation or
General Advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, Internet or television, or any seminar or meeting whose attendees have been
invited by general solicitation or general advertising by the Agents, its affiliates or any Person acting on its behalf, or (ii) in any manner involving a public offering (within the meaning of Section 4(2) of the 1933 Act),

  

	 	D.	prior to the completion of any sale of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person, the U.S. Affiliate shall cause each purchaser
thereof (a “U.S. Purchaser”) to execute and deliver to the Corporation a subscription agreement in a form agreed to between the Corporation and the Agents and at the Closing, the Agents, together with the U.S. Affiliate, will provide an
executed certificate in the form attached to this Agreement as Schedule “G” relating to the manner of the solicitation of offers to purchase, the offer and sale of Offered Securities in the United States or to, or for the account or
benefit of, a U.S. Person or written confirmation that it did not sell any Offered Securities in the United States or to or for the account or benefit of a U.S. Person, and 

  

	 	(ii)	acknowledges that the Offered Securities have not been, and will not be, registered under the 1933 Act or the Securities Laws of any state of the United States and may not be
offered or sold within the United States or to, or for the account or benefit of, a U.S. Person, except pursuant to an exemption from the registration requirements of the 1933 Act and the Securities Laws of the applicable states of the United
States. 

  

	 	(c)	Representations and Warranties of the Corporation: The Corporation hereby represents and warrants to the Agents that: 

  

	 	(i)	None of the Corporation, the affiliates thereof nor any Person acting on behalf of any of them has engaged or will engage in any form of General Solicitation or General Advertising
or has acted or will act in any manner involving a public offering within the meaning of Section 4(2) of the 1933 Act, in either case, in connection with the solicitation of offers to purchase, offer or sale of Offered Securities in the United
States or to, or for the account or benefit of, a U.S. Person. 

  

	 	(ii)	Except with respect to Offered Securities offered and sold in the United States or to, or for the account or benefit of, a U.S. Accredited Investor in reliance upon an exemption
from registration under Rule 506 of 

  

 - 31 - 

 Regulation D, neither the Corporation nor any of the affiliates thereof, nor any Person acting on behalf
of any of them (other than the Agents, the affiliates thereof or any Person acting on behalf of any of them, in respect of which no representation is made), has made, or will make: (A) any, offer to sell, or any solicitation of an offer to buy, any
Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person; (B) any sale of Offered Securities unless, at the time the buy order was or will have been made, the purchaser is (i) outside the United States or (ii)
the Corporation, its affiliates and any Person acting on behalf of any of them reasonably believe that the purchaser is outside the United States and not a U.S. Person; or (C) any Directed Selling Efforts in the United States with respect to the
Offered Securities. 
  

	 	(iii)	During the period in which the Offered Securities are offered for sale, neither the Corporation nor any of the affiliates thereof, nor any Person acting on behalf of any of them,
has taken, or will take, any action that would cause the exemptions afforded by Regulation D to be unavailable for offers and sales of Offered Securities. 

  

	 	(iv)	The Corporation is not, and as a result of the sale of the Offered Securities contemplated hereby will not be, an “investment company” as defined in the United States
Investment Company Act of 1940, as amended. 

  

	 	(v)	Except with respect to the offer and sale of Offered Securities, the Corporation has not, for a period of six months prior to the date hereof, sold, offered for sale or solicited
any offer to buy any securities thereof in the United States or to, or for the account or benefit of, a U.S. Person in a manner that would be integrated with the offer and sale of the Offered Securities and would cause the exemption from
registration under the 1933 Act set forth in Rule 506 of Regulation D to become unavailable with respect to the offer and sale of the Offered Securities. 

  

	 	(vi)	During the period in which the Offered Securities are offered for sale, neither the Corporation nor any of the affiliates thereof, nor any Person acting on behalf of any of them
(other than the Agents, the affiliates thereof or any Person acting on behalf of any of them, in respect of which no representation is made) has taken or will take any action that would cause the exemption afforded by Rule 506 of Regulation D to be
unavailable for offers and sales of Offered Securities in the United States in accordance with this Agreement or the exclusion from registration under the 1933 Act afforded by Rule 903 of Regulation S to be unavailable for offers and sales of the
Offered Securities outside the United States in accordance with this Agreement. 

  

	 	(vii)	The Corporation is a Foreign Issuer and there is no Substantial U.S. Market Interest in the Offered Securities. 

  

	 	(d)	Covenants of the Corporation: The Corporation hereby covenants with: 

  

	 	(i)	the Agents that within 15 days after the first sale of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person pursuant to Rule 506 of
Regulation D, the Corporation will prepare and file with the United States Securities and Exchange Commission a notice on Form D and all other notices required to be filed with any regulatory authority in the United States with respect to Offered
Securities offered in the United States or to, or for the account or benefit of, a U.S. Person; and 

  

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	 	(ii)	the Agents and the Subscribers that the Corporation will remain a Foreign Issuer for a period of two years after the Closing Date. 

  

	13.	Termination  

  

	 	(a)	Right of Termination: The Agents shall be entitled, at their sole option, to terminate and cancel, without any liability on the part of the Agents, all of the obligations
thereof under this Agreement and the obligations of any Person who has executed a Subscription Agreement, by notice in writing to that effect delivered to the Corporation and the Selling Shareholders prior to or at the Closing Time if:

  

	 	(i)	the Agents are not satisfied in their sole discretion with the results of the due diligence review and investigation of the Corporation, the Subsidiaries, the Properties, and the
Option Agreement and all related matters conducted by the Agents; 

  

	 	(ii)	there is in the sole opinion of the Agents, acting reasonably, a material change or change in a material fact or new material fact or an undisclosed material fact or material change
which has had or could reasonably be expected to have an adverse effect on the condition (financial or otherwise), capital, Properties, assets, operations, business, affairs or profitability of the Corporation, any Subsidiary or the Properties or on
the value of the Offered Securities or any other securities of the Corporation; 

  

	 	(iii)	there should develop, occur or come into effect any occurrence of national or international consequence, or any action, event, law or regulation, inquiry, major financial occurrence
or other occurrence of any nature whatsoever which, in the sole opinion of the Agents, acting reasonably, seriously affects, or could be expected to seriously affect, the national or international financial markets or the business of the
Corporation, any Subsidiary or the Properties or the value of the Offered Securities or any other securities of the Corporation; 

  

	 	(iv)	the state of the financial markets in Canada, the United States or elsewhere where it is planned to market the Offered Securities is such that in the sole opinion of the Agents the
Offered Securities cannot profitably be offered for sale; 

  

	 	(v)	there is any inquiry, action, suit, proceeding or investigation (whether formal or informal, instituted or announced or threatened) in relation to 

  

 - 33 - 

 the Corporation, any Subsidiary or the Properties or any of the directors, officers or principal
shareholders of the Corporation or any Subsidiary which, in the sole opinion of the Agents, acting reasonably, may materially adversely affect the Corporation, any Subsidiary or the Properties; 
  

	 	(vi)	any order or ruling is made by any international, federal, provincial or governmental authority to cease, restrict or suspend trading in any securities of the Corporation is made,
threatened or announced by any securities regulatory authority; or 

  

	 	(vii)	the Corporation or its Subsidiary is in breach of any material term, condition, covenant or agreement contained in this Agreement or in any Subscription Agreement or Ancillary
Document; it being acknowledged and agreed to by the Corporation that all such terms, conditions, covenants and agreements to be fulfilled at or prior to Closing Time shall be construed as conditions and complied with so far as the same relate to
acts to be performed or caused to be performed by it or its Subsidiaries, that it will use its commercially reasonable best efforts to cause such conditions to be complied with, and any breach or failure by the Corporation or any of its Subsidiaries
to comply with any of such conditions shall entitle the Agents, at its option, to terminate its obligations under this Agreement (and the obligations of the Subscribers arranged by it to purchase Offered Securities); it being further understood and
agreed that the Agents may waive in whole or in part, or extend the time for compliance with, any of such terms, conditions, covenants and agreements without prejudice to its rights in respect of any other such terms, conditions, covenants and
agreements or any other subsequent breach or non-compliance, provided that to be binding on the Agents, any such waiver or extension must be in writing; or 

  

	 	(viii)	any representation or warranty given by the Corporation or its Subsidiaries in this Agreement or in any Subscription Agreement or Ancillary Document is or becomes untrue, false or
misleading in any material respect. 

  

	 	(b)	Rights on Termination: Any termination by the Agents pursuant to Section 13(a) hereof shall be effected by notice in writing delivered by the Agents to the Corporation and to
Selling Shareholders the address thereof as set out in Section 16 hereof. The right of the Agents to so terminate the obligations thereof under this Agreement is in addition to such other remedies as the Agents may have in respect of any default,
act or failure to act of the Corporation or the Selling Shareholders in respect of any of the matters contemplated by this Agreement or otherwise. In the event of a termination by the Agents pursuant to Section 13(a) hereof there shall be no further
liability on the part of the Agents to the Corporation and the Selling Shareholders or of the Corporation and the Selling Shareholders to the Agents except any liability which may have arisen or may thereafter arise under either Sections 14 or 15.

  

 - 34 - 

	14.	Indemnity and Contribution  

  

	 	(a)	Indemnity: The Corporation and Peru Copper (individually an “Indemnifier” and collectively the “Indemnifiers”), jointly and severally, hereby covenant and
agree to fully protect, indemnify and save harmless the Agents, the U.S. Affiliates, each of the associates and affiliates of, and the directors, officers, employees, shareholders, partners, counsel, advisors and agents of the Agents, the U.S.
Affiliate, (in this Section 14 each an “Indemnified Person” and collectively the “Indemnified Persons”) from and against all losses (other than a loss of profits), claims, damages, liabilities, suits, proceedings, costs and
expenses (including the amount paid in settlement of any claim, action, suit or proceeding and the fees and expenses of legal counsel), joint or several, of whatsoever nature or kind to which an Indemnified Person may become subject or otherwise
involved in any capacity under statute or common law or otherwise caused or incurred by reason of or in any way arising, directly or indirectly, from, by virtue of, or related to, or in consequence of, enforcing the provisions of this Agreement or
any Subscription Agreement, or: 

  

	 	(i)	any misrepresentation or alleged misrepresentation in respect of any statement contained herein or in the Information, in connection with the issuance and sale by the Corporation of
the Offered Securities (other than a statement relating solely to the Agents); 

  

	 	(ii)	the omission or alleged omission to state in the prospectus filed in connection with an IPO, or any certificate of the Corporation or Peru Copper delivered hereunder or pursuant
hereto any material fact required to be stated therein or necessary to make any statement therein not misleading in light of the circumstances under which it was made; 

  

	 	(iii)	any order made or inquiry, investigation or proceeding commenced or threatened by any Securities Commission or authority or any other competent authority, not based upon the
activities or the alleged activities of the Agents or any member of any agency group formed by the Agents in connection with the Offering, based upon any untrue, false or misleading statement or omission or alleged untrue, false or misleading
statement or omission or any misrepresentation or alleged misrepresentation in this Agreement, the Information or the prospectus filed in connection with an IPO which prevents or restricts trading in or the sale or Distribution of the Offered
Securities, Underlying Shares, Broker Warrants or Broker Shares in any of the Offering Jurisdictions; 

  

	 	(iv)	the non-compliance or alleged non-compliance by the Corporation or Peru Copper with any of the Securities Laws or any other applicable law in connection with the transactions
contemplated herein; 

  

	 	(v)	any negligence or wilful misconduct by the Corporation or Peru Copper relating to or connected with the sale by the Corporation of the Offered Securities; or

  

	 	(vi)	the breach of, or default under, any term, condition, covenant, agreement or obligation of the Corporation or Peru Copper made or contained herein or in any other document of the
Corporation or Peru Copper delivered pursuant hereto or made by the Corporation or Peru Copper in 

  

 - 35 - 

 connection with the sale of the Offered Securities or any representation or warranty of the Corporation
or Peru Copper made or contained herein or in any other document delivered pursuant hereto or in connection with the sale of the Offered Securities being or being alleged to be untrue, false or misleading; 
  
 provided, however, that this indemnity shall not apply in respect of an
Indemnified Person to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall have determined that (A) the Indemnified Person has been negligent or dishonest or has committed any fraudulent act in
the course of such performance, and (B) the losses, claims, damages, liabilities, costs or expenses as to which indemnification is claimed was directly and primarily caused by the negligence, dishonesty or fraud referred to in (A) above (provided
that if such losses, claims, damages, liabilities costs or expenses were caused only in part by such negligence, dishonesty or fraud, the indemnity shall apply only in respect of the proportion of such losses, claims, damages, liabilities costs or
expenses which were not so caused). If any matter or thing contemplated by this Section 14 shall be asserted against any Indemnified Person in respect of which indemnification is or might reasonably be considered to be provided hereunder (any such
thing or matter being referred to as a “Claim”), such Indemnified Person shall notify the Indemnifiers as soon as possible of the nature of such Claim (provided that any failure to so notify an Indemnifier in respect of any potential Claim
shall not affect the liability or obligations of such Indemnifier hereunder except to the extent that the Indemnifier is prejudiced by such failure) 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 the Indemnified Person and that no settlement of any such Claim may be made by the Indemnifiers or the Indemnified Person without the
prior written consent of the other (acting reasonably) and the Indemnifiers shall not be liable for any settlement of any such Claim unless they have consented in writing to such settlement. 
  

	 	(b)	Selling Shareholder Indemnity: Each of the Selling Shareholders, severally and not jointly, (individually an “Indemnifier” and collectively the
“Indemnifiers”), hereby covenants and agrees to fully protect, indemnify and save harmless the Indemnified Persons from and against all losses (other than a loss of profits), claims, damages, liabilities, suits, proceedings, costs and
expenses (including the amount paid in settlement of any claim, action, suit or proceeding and the fees and expenses of legal counsel), of whatsoever nature or kind to a maximum of the aggregate price received by such Selling Shareholder on the sale
of Additional Preferred Shares pursuant to the Secondary Offering to which an Indemnified Person may become subject or otherwise involved in any capacity under statute or common law or otherwise caused or incurred by reason of or in any way arising,
directly or indirectly, from, by virtue of, or related to, or in consequence of, enforcing the provisions of this Agreement or any Subscription Agreement, or: 

  

	 	(i)	any misrepresentation or alleged misrepresentation in respect of any statement contained herein or made by the Selling Shareholder, in connection with the sale by the Selling
Shareholder of the Notes pursuant to the Secondary Offering (other than a statement relating solely to the Agents); 

  

 - 36 - 

	 	(ii)	the omission or alleged omission to state in the prospectus filed in connection with an IPO, or any certificate of the Selling Shareholder delivered hereunder or pursuant hereto any
material fact relating to the Selling Shareholder required to be stated therein or necessary to make any statement therein not misleading in light of the circumstances under which it was made; 

  

	 	(iii)	any order made or inquiry, investigation or proceeding commenced or threatened by any Securities Commission or authority or any other competent authority, not based upon the
activities or the alleged activities of the Agents or any member of any agency group formed by the Agents in connection with the Offering, based upon any untrue, false or misleading statement or omission or alleged untrue, false or misleading
statement or omission or any misrepresentation or alleged misrepresentation by the Selling Shareholder in this Agreement or the prospectus filed in connection with an IPO which prevents or restricts trading in or the sale or Distribution of the
Offered Securities, Underlying Shares, Warrant Shares, Broker Warrants or Broker Shares in any of the Offering Jurisdictions; 

  

	 	(iv)	the non-compliance or alleged non-compliance by the Selling Shareholder with any of the Securities Laws or any other applicable law in connection with the transactions contemplated
herein; 

  

	 	(v)	any negligence or wilful misconduct by the Selling Shareholder relating to or connected with the sale by the Corporation of the Notes by the Selling Shareholder pursuant to the
Secondary Offering; or 

  

	 	(vi)	the breach of, or default under, any term, condition, covenant, agreement or obligation of the Selling Shareholders made or contained herein or in any other document of the Selling
Shareholders delivered pursuant hereto or made by Selling Shareholder in connection with their sale of the Notes pursuant to the Secondary Offering or any representation or warranty of the Selling Shareholder made or contained herein or in any other
document delivered pursuant hereto or in connection with their sale of the Notes being or being alleged to be untrue, false or misleading; 

  
 provided, however, that this indemnity shall not apply in respect of an Indemnified Person to the extent that a court of competent jurisdiction in a final
judgment that has become non-appealable shall have determined that (A) the Indemnified Person has been negligent or dishonest or has committed any fraudulent act in the course of such performance, and (B) the losses, claims, damages, liabilities,
costs or expenses as to which indemnification is claimed was directly and primarily caused by the negligence, dishonesty or fraud referred to in (A) above (provided that if such losses, claims, damages, liabilities costs or expenses were caused only
in part by such negligence, dishonesty or fraud, the indemnity shall apply only in respect of the proportion of such losses, claims, damages, liabilities costs or expenses which were not so caused). If any matter 
  

 - 37 - 

 or thing contemplated by this Section 14 shall be asserted against any Indemnified Person in respect of
which indemnification is or might reasonably be considered to be provided hereunder (any such thing or matter being referred to as a “Claim”), such Indemnified Person shall notify the Indemnifiers as soon as possible of the nature of such
Claim (provided that any failure to so notify an Indemnifier in respect of any potential Claim shall not affect the liability or obligations of such Indemnifier hereunder except to the extent that the Indemnifier is prejudiced by such failure) 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 the Indemnified Person and that no
settlement of any such Claim may be made by the Indemnifiers or the Indemnified Person without the prior written consent of the other (acting reasonably) and the Indemnifiers shall not be liable for any settlement of any such Claim unless they have
consented in writing to such settlement. 
  

	 	(c)	Counsel: In any Claim referred to in Section 14 hereof, the Indemnified Person shall have the right to retain separate legal counsel to act on behalf of such Indemnified
Person and participate in the defense thereof provided that the fees and disbursements of such separate legal counsel shall be paid by the Indemnified Person unless: 

  

	 	(i)	the Indemnifiers fail to assume the defence of such Claim on behalf of the Indemnified Person within ten days of receiving notice of such Claim; 

  

	 	(ii)	an Indemnifier and the Indemnified Person shall have mutually agreed to the retention of such separate legal counsel; or 

  

	 	(iii)	the named parties to such Claim (including any added, third or impleaded parties) include both an Indemnifier and the Indemnified Person and such Indemnified Person has been advised
by legal counsel that representation of both such Indemnifier and the Indemnified Person by the same legal counsel would be inappropriate due to actual or potential differing or conflicting interests between them; 

  
 in which event or events the Indemnifiers shall not have the right to assume
the defense of such Claim on behalf of the Indemnified Person and the fees and disbursements of such separate legal counsel shall be paid by the Indemnifiers, subject as hereinafter provided. Where more than one Indemnified Person is entitled to
retain separate counsel in the circumstances described in this Section 14(c), all Indemnified Persons shall be represented by one separate legal counsel and the fees and disbursements of only one separate legal counsel for all Indemnified Persons
shall be paid by the Indemnifiers, unless: 
  

	 	(i)	an Indemnifier and the Indemnified Persons have mutually agreed to the retention of more than one legal counsel for the Indemnified Persons; or 

  

	 	(ii)	the Indemnified Persons have or any of them has been advised in writing by legal counsel that representation of all of the Indemnified Persons by the same legal counsel would be
inappropriate due to actual or potential differing interests between them. 

  

 - 38 - 

	 	(d)	Waiver of Right: The Indemnifiers hereby waive their right to recover contribution from the Agents and the other Indemnified Persons with respect to any liability of the
Indemnifiers by reason of or arising out of the indemnity provided by the Indemnifiers in this Section 14; provided, however, that such waiver shall not apply in respect of the Agent for any liability directly caused or caused by reason or arising
out of any information or statements relating to, and provided by, the Indemnified Persons or any failure by the Indemnified Persons in connection with this Offering to provide to the Subscribers any document that the Corporation is required by law
to provide to the Subscribers and that the Corporation has duly provided or made available to the Indemnified Persons to forward to the Subscribers. 

  

	 	(e)	Contribution: 

  

	 	(i)	In order to provide for just and equitable contribution in circumstances in which the indemnity contained in this Section 14 is, for any reason of policy or otherwise, held to be
unenforceable or unavailable, in whole or in part, to an Indemnified Person other than in accordance with the provisions of this Section 14, the Indemnifiers shall contribute to the aggregate losses (other than a loss of profit), claims, damages,
liabilities, costs and expenses of the nature contemplated by the said indemnity incurred or paid by the Indemnifiers and the Indemnified Person, in such proportion as is appropriate to reflect not only the relative benefits received by the
Indemnifiers on the one hand and the Indemnified Person on the other hand but also the relative fault of the Indemnifiers and the Indemnified Person, as well as any relevant equitable considerations; provided that in any event the Indemnifiers shall
be responsible for any amount in excess of the cash fee actually received from the Indemnifiers under this Agreement by the Agents; and provided further, however, that no Person guilty of fraudulent misrepresentation shall be entitled to
contribution from any Person who is not guilty of such fraudulent misrepresentation. 

  

	 	(ii)	In the event that an Indemnifier is held to be entitled to contribution from the Agents under the provisions of any statute or law, the Indemnifier shall be limited to such
contribution in an amount not exceeding the lesser of: 

  

	 	A.	the portion of the amount of the loss or liability giving rise to such contribution for which the Agents is responsible as determined in accordance with Section 14(e)(i) above; and

  

	 	B.	the amount of the commission (excluding the Broker Warrants, Broker Options and Broker Shares) actually received under this Agreement by the Agents. 

  

	 	(iii)	For purposes of this Section 14(e), each party hereto shall give prompt notice to the other parties hereto of any Claim, action, suit or proceeding threatened or commenced in
respect of which a Claim for contribution may be made under this Section 14(e). 

  

 - 39 - 

	 	(f)	Held in Trust: To the extent that the indemnity contained in Section 14 hereof is given in favour of a Person who is not a party to this Agreement, the Indemnifiers hereby
constitute the Agents as trustee for such Person for such indemnity and the covenants given by the Indemnifiers to such Person in this Agreement. The Agents hereby accepts such trust and hold such indemnity and covenants for the benefit of such
Persons. The benefit of such indemnity and covenants shall be held by the Agents in trust for the Persons in favour of whom such indemnities and covenants are given and may be enforced directly by such Persons. 

  

	 	(g)	The rights to indemnity and contribution provided in this Section 14 shall be in addition to and not in derogation of any other right to indemnify and/or contribution which the
Agents or the Indemnifiers may have by statute or otherwise at law. 

  

	15.	Expenses  

  
 Whether or not the purchase and sale of the Offered Securities is completed, all costs and expenses incurred in connection with the Offering by the Corporation shall be borne by the Corporation and Peru Copper,
including, without limitation, all expenses of or incidental to the sale and distribution of Offered Securities and the Broker Warrants, the fees and expenses (including applicable taxes) of counsel to, and the auditors and transfer agents of, the
Corporation and all filing and regulatory fees. In addition to the foregoing, all reasonably incurred costs and expenses (including applicable taxes) of the Agents and counsel and advisors to the Agents (including the reasonable out-of-pocket
expenses (including applicable taxes) of the Agents) (the “Expenses”) and which, to the extent that they are then determinable, shall be paid to the Agents from the proceeds of the Offering by way of deduction from the net proceeds at
Closing. 
  

	16.	Agent’s Authority  

  
 The Corporation and the Selling Shareholders shall be entitled to, and shall act on any notice, request, direction, consent, waiver, extension and other communication
given or agreement entered into by or on behalf of the Agents by BMO Nesbitt Burns, who shall represent the Agents and have the authority to bind the Agents except in respect of a notice of termination pursuant to Section 13 hereof or the exercise
of the indemnity rights set out in Section 14 hereof, which shall require the action of each Agent. Each of the Agents agrees that BMO Nesbitt Burns has been authorized in such regard, as evidenced by their execution of this Agreement. 

 

 - 40 - 

	17.	Notices 

  
 Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be personally delivered or sent by telecopier to the following addresses: 
  
 in the case of the Corporation, Peru Copper or the agent of the Selling
Shareholders: 
  

			
	Peru Copper Syndicate, Ltd.
	Suite 1600 – 777 Dunsmuir Street
	Vancouver, B.C. V7Y 1K4
		
	Attention:	  	David De Witt
	Telecopier:	  	604.688.0094
	
	with a copy to:
	
	Cassels Brock & Blackwell LLP
	Suite 2100, 40 King Street West
	Toronto, ON M5H 3C2
		
	Attention:	  	Paul M. Stein
	Telecopier:	  	416.350.6949
	
	in the case of the Agents:
	
	BMO Nesbitt Burns Inc.
	1 First Canadian Place
	4th Floor, P.O. Box 150
	Toronto, ON M5X 1H3
		
	Attention:	  	Jamie Rogers
	Telecopier:	  	604-443-1491
	
	with a copy to:
	
	Blake, Cassels & Graydon LLP
	Suite 2600 595 Burrard Street
	Vancouver, B.C. V7X 1L3
		
	Attention:	  	Peter J. O’Callaghan
	Telecopier:	  	604.631.3309

  
 The Corporation, the
Selling Shareholders or the Agents may change its address for notice by notice given in the manner aforesaid. Any such notice or other communication shall be in writing, and unless delivered to a responsible officer of the addressee, shall be given
by telecopier, and shall be deemed to have been given on the day on which it was delivered or sent by telecopier. 
  

	18.	Miscellaneous  

  

	 	(a)	Governing Law: This Agreement shall be governed by and be interpreted in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein
and the parties hereto irrevocably attorn to the jurisdiction of the courts of such province. 

  

 - 41 - 

	 	(b)	Time of Essence: Time shall be of the essence of this Agreement. 

  

	 	(c)	Survival: All representations, warranties, covenants and agreements of the Corporation, Peru Copper and the Selling Shareholders herein contained or contained in any
documents contemplated by, or delivered pursuant to, this Agreement or in connection with the purchase and sale of the Offered Securities shall survive the purchase and sale of the Offered Securities and the termination of this Agreement and shall
continue in full force and effect for the benefit of the Agents and the Subscribers for a period of two (2) years thereafter, regardless of any subsequent disposition of Offered Securities, the Broker Warrants or the Broker Shares or any
investigation by or on behalf of the Agents with respect thereto. 

  

	 	(d)	Counterparts: This Agreement may be executed by any one or more of the parties to this Agreement by facsimile or in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. 

  

	 	(e)	Entire Agreement: This Agreement constitutes the entire agreement between the Corporation, Peru Copper, the Selling Shareholders and the Agents in connection with the issue
and sale of the Offered Securities by the Corporation and the Selling Shareholders and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, including, but not limited to, any engagement agreement or
term sheet relating to the Offering between the Corporation, Peru Copper, the Selling Shareholders and the Agents. 

  

 - 42 - 

	 	(f)	Severability: If any provision of this Agreement is determined to be void or unenforceable in whole or in part, it shall be deemed not to affect or impair the validity of any
other provision of this Agreement and such void or unenforceable provision shall be severed from this Agreement. 

  
 Would you kindly confirm the agreement of the Corporation and its Subsidiaries to the foregoing by executing and returning this Agreement. We ask that you then execute
six duplicate copies of this Agreement and return four such executed copies to BMO Nesbitt Burns Inc. 
  
 Yours truly, 
  

							
	BMO NESBITT BURNS INC.	 	HAYWOOD SECURITIES INC.
	By:	 	By:
		
	 “Jamie Rogers”

	 	 “Keith L. Peck”

	Name:	 	Jamie Rogers	 	Name:	 	Keith L. Peck
	Title:	 	Vice President, Investment and Corporate Banking	 	Title:	 	Vice President and Director

  
 The undersigned hereby accepts and
agrees to the foregoing as of the 18th day of March, 2004. 
  

							
	PERU COPPER INC.	 	PERU COPPER SYNDICATE, LTD.
				
	By:	 	 “David E. DeWitt”

	 	By:	 	 “David E. DeWitt”

	Name:	 	David E. DeWitt	 	Name:	 	David E. DeWitt
	Title:	 	Director	 	Title:	 	Director
			
	FISHERKING HOLDINGS LTD.	 	 	 	 
				
	By:	 	 “David E. DeWitt”

	 	 	 	 
	Name:	 	David E. DeWitt	 	 	 	 
	Title	 	Director	 	 	 	 

  

 - 43 - 

							
	RANCHU COPPER INVESTMENTS LTD.	 	TANGENT INTERNATIONAL LIMITED
				
	By:	 	 “Luis Baertl”

	 	By:	 	 “W. Mueller”

	Name:	 	Luis Baertl	 	Name:	 	Werner Mueller
	Title:	 	Director	 	Title:	 	Director
		
	LOWELL MINERAL EXPLORATION, LLC	 	SUNBEAM OPPORTUNITIES LIMITED
				
	By:	 	 “David Lowell”

	 	By:	 	 “Greg Hogan”

	Name:	 	David Lowell	 	Name:	 	Greg Hogan
	Title:	 	Director	 	Title:	 	Authorized Signatory
			
	CAMPANIA HOLDING, INC.	 	 	 	 
				
	By:	 	 “Authorized Signatory”

	 	 	 	 
	Name:	 	Authorized Signatory	 	 	 	 
	Title:	 	Authorized Signatory	 	 	 	 
			
	 “Catherine McLeod-Seltzer”

	 	 	 	 
	Catherine McLeod-Seltzer	 	 	 	 
			
	 “Tracy Grobk”

	 	 	 	 
	Witness	 	 	 	 
	Name:	 	Tracy Grobk	 	 	 	 
			
	  

	 	 	 	 

  

 - 44 - 

 Schedule “A” 
  
 Material Subsidiaries and Corporate Structure 
 Peru Copper Syndicate Ltd. 
 

 
  

 Schedule “B 
  
 Attributes of the Notes 
  
 The Notes have the following attributes: 
  

	 	(a)	issued under a note indenture; 

  

	 	(b)	unsecured obligations of the Company; 

  

	 	(c)	non-interest bearing; 

  

	 	(d)	convertible in full at the option of the holder at any time, and automatically converted upon completion of an IPO, into common shares of the Company (“Common Shares”) on
the basis of one Common Share for each Note; 

  

	 	(e)	the Notes are repayable on demand by the holder, provided that the Company may repay the Notes by the issuance of Common Shares on the basis of one Common Share for each Note;

  

	 	(f)	holders of Notes are entitled to vote on all matters in conjunction with the holders of Common Shares and are entitled to one vote per Common Share into which each Note is
convertible; 

  

	 	(g)	in the event any dividend is declared on the Common Shares, the holders of Notes shall be entitled to participate rateably in such dividend, by way of the payment of interest on the
Notes in the amount of the dividend, based on the number of Common Shares into which the Notes are then convertible, and the holder of Notes shall receive payment in priority to the holders of Common Shares; 

  

	 	(h)	in the event of any liquidation, dissolution or winding-up of the Company, the holders of Notes shall be entitled to receive, in cash, in preference to holders of Common Shares of
the Company, an amount equal to the original purchase price, plus any declared but unpaid dividends; and 

  

	 	(i)	the Notes will contain standard anti-dilution provisions in the event that any change is made to the Common Shares. 

 Schedule “C” 
  
 Officers’ Certificate 
  

			
	TO:	  	BMO NESBITT BURNS INC.
		
	AND TO:	  	THE SUBSCRIBERS OF COMMON SHARES OF PERU COPPER INC.

  
 CERTIFICATE

  
 The undersigned, <*>, the President of Peru Copper Inc. (the
“Corporation”), and <*>, the • of the Corporation, and the undersigned <*>, President of Peru Copper Syndicate, Ltd. (“Peru Copper”), hereby certify, for and on behalf of the Corporation and Peru Copper,
respectively, in their capacity as respective officers of the Corporation and Peru Copper, and not in their personal capacity, after having made due inquiry, that the following facts, matters and information are true and accurate and not misleading
in any material respect: 
  

	1.	The Corporation and Peru Copper have complied with all covenants and agreements contained in, and have satisfied all of the terms and conditions of, the Agency Agreement to be
complied with and satisfied by the Corporation and Peru Copper, respectively, at or prior to the Closing Time. 

  

	2.	The representations and warranties of the Corporation and Peru Copper contained in the Agency Agreement are true and correct as of the Closing Time with the same force and effect as
if made at and as of the Closing Time after giving effect to the transactions contemplated thereby. 

  

	3.	The Investment has been duly completed and the Corporation is the legal and beneficial owner of • shares of Peru Copper. 

  

	4.	Since •, there has been no material adverse change (whether actual, anticipated, proposed, prospective, contemplated or threatened, whether financial or otherwise) in the
financial condition, assets, liabilities (contingent or otherwise), business, capital (other than the Reorganization) affairs, operations or prospects of the Corporation, any of the Subsidiaries or any of the Properties or in the capital of the
Corporation or any of the Subsidiaries. 

  

	5.	This certificate is being made and delivered pursuant to Section • of the Agency Agreement dated as of • between the Corporation, Peru Copper and the Selling
Shareholders and the Agents (the “Agency Agreement”) and we acknowledge that the addressees hereof will be relying on this certificate. 

  

Unless otherwise defined herein, all words and terms with the initial letter or letters thereof capitalized in this certificate and not defined herein but defined in
the Agency Agreement shall have the meanings given to such capitalized words and terms in the Agency Agreement. The undersigned acknowledge that they are familiar with the definitions given to the capitalized words and terms in the Agency Agreement
and such definitions are hereby incorporated by reference. 

 IN WITNESS WHEREOF the undersigned have executed this certificate as of the
             day of             , 2004. 
  

	
	  

	<*>
	President,
	Peru Copper Inc.
	  

	<*>
	•
	Peru Copper Inc.
	  

	<*>
	President,
	Peru Copper Syndicate, Ltd.

  

 - 2 - 

 Schedule “D” 
  
 Agents’ Certificate 
  
 In connection with the private placement of common shares (the “Offered Securities”), Peru Copper Inc. (the
“Corporation”) with U.S. “accredited investors” (the “U.S. Private Placees”) pursuant to subscription agreements accepted as of • by the Corporation and BMO Nesbitt Burns Inc. referred to in the Agency Agreement
dated as of March 18, 2004 between BMO Nesbitt Burns Inc. and Haywood Securities Inc. (the “Agents”) and the Corporation, Peru Copper Syndicate, Ltd. and certain shareholders of Peru Copper Syndicate, Ltd. (the “Agency
Agreement”), BMO Nesbitt Burns Corp. and Haywood Securities (USA) Inc., in their capacities as placement Agents in the United States for the agents (the “U.S. Affiliates”), do hereby certify on a several basis and in respect of
themselves only and only to the extent applicable that: 
  

	1.	the Offered Securities have been offered and sold in the United States only by the U.S. Affiliates, which was on the dates of such offers and sales a registered broker or dealer
with the National Association of Securities Dealers, Inc. (the “NASD”), the United States Securities and Exchange Commission (the “SEC”) pursuant to Section 15(b) of the United States Securities Exchange Act of 1934, as
amended, and under the state securities laws of all states where offers and sales of the Offered Securities were made (unless exempted from the respective state’s broker-dealer registration requirements) and is in good standing with the NASD,
the SEC and such states on the date hereof; 

  

	2.	all offers and sales of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person have been effected in accordance with all applicable U.S.
federal and state broker-dealer laws and regulations governing the registration and conduct of securities brokers and dealers; 

  

	3.	no written material was used in connection with the offer or sale of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person, other than a
subscription agreement in the form agreed to by the Corporation and the Agents; 

  

	4.	based on the assumption that the representations and warranties of the U.S. Private Placees contained in the subscription agreements from the U.S. Private Placees are true and
accurate, we have reasonable grounds to believe and do believe that each offeree was an “accredited investor” as defined in Rule 501(a) under the United States Securities Act of 1933, as amended (the “1933 Act”), and, on
the date hereof, we continue to believe that each U.S. Private Placee is an accredited investor within the meaning of Regulation D under the 1933 Act (“Regulation D”); 

  

	5.	offers and sales of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person were not made (i) by any form of “general solicitation”
or “general advertising” (as those terms are used in Regulation D), including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, Internet or television,
or any seminar or meeting whose attendees had been invited by general solicitation or general advertising, or (ii) in any manner involving a public offering (within the meaning of Section 4(2) of the 1933 Act); 

	6.	prior to the completion of any sale of Offered Securities in the United States or to, or for the account or benefit of, a U.S. Person, we caused each U.S. Private Placee to sign a
subscription agreement in a form acceptable to the Corporation; and 

  

	7.	the offering has been conducted in accordance with the Underwriting Agreement. 

  

Words and terms with the initial letter or letters thereof capitalized in this certificate and defined in the Underwriting Agreement shall have the meanings given to
such capitalized words and terms in the Underwriting Agreement unless otherwise defined herein. 
  
 Dated this <*> day of <*>, 2004. 
  

							
	BMO NESBITT BURNS CORP.	 	HAYWOOD SECURITIES (USA) INC.
	By:	 	 	 	By:	 	 
	 	 	
	 	 	 	

	Name:	 	 	 	Name:	 	 
	Title:	 	 	 	Title:	 	 

  

 - 2 - 

 Schedule “E” 
  
 Material Transactions since date of Financial Statements 
  

	A.	Offer of Employment to Charles Preble dated February 7, 2004. 

  

	B.	Offer of Employment to Tom Findlay dated February 18, 2004. 

  

 - 3 -Underwriting Agreement dated September 22, 2004

  
 Exhibit 10.7

  
 UNDERWRITING AGREEMENT 
  
 September 22, 2004 
  
 Peru Copper Inc. 
 Suite 1600 
 777 Dunsmuir Street 
 Vancouver, BC V7Y 1K4 
  
 Attention: J. David Lowell 
  
 BMO Nesbitt Burns Inc., GMP Securities Ltd., Haywood Securities Inc., National Bank Financial Inc., Canaccord Capital
Corporation, Salman Partners Inc. and Sprott Securities Inc. (collectively, the “Underwriters”), understand that Peru Copper Inc. (the “Company”) proposes to issue an aggregate of 29,000,000 units in the capital of
the Company (each an “Offered Unit” and, together with the Pre-Emptive Units and the Additional Units, defined below, the “ Units”) at a price of $1.65 per Offered Unit (the “Offering Price”). Each
Unit consists of one common share (each a “Unit Share”) and one-half of one common share purchase warrant of the Company (each one whole warrant a “Warrant”) and each whole Warrant will entitle the holder thereof to
purchase one common share of the Company (each an “Underlying Share”) at a price of US$2.00 per share at any time before 5:00 p.m. (Toronto time) on March 18, 2006. The Units will be distributed (the “Offering”) in
each of the provinces of Canada pursuant to the Final Prospectus (defined below) and to Accredited Investors (defined below) in the United States on a private placement basis pursuant to the U.S. Placement Memorandum (defined below). Subject to
applicable law and the terms of this Agreement, the Units may also be distributed outside Canada and the United States, where they may lawfully be sold. 
  
 Subject to the terms and conditions hereof, the Underwriters severally, and not jointly, nor jointly and severally, in their respective percentages set
out in Section 17 of this Agreement, agree to purchase from the Company, and by acceptance of this Agreement, the Company agrees to sell to the Underwriters, at the Closing Time, all but not less than all of the Offered Units for the aggregate
purchase price of $47,850,000. 
  
 By its acceptance hereof, the
Company grants to the Underwriters an option (the “Pre-Emptive Option”) to purchase severally, and not jointly, nor jointly and severally, up to that number of Additional Units (“Pre-Emptive Units”) as is equal to
the number of Units in respect of which Pre-Emptive Rights have been exercised, if any, at the Offering Price per Subscribers’ Unit upon the terms and conditions set forth herein for the purchase and sale of Offered Units. The Pre-Emptive
Option shall be exercisable, in whole or in part, on written notice (a “Pre-Emptive Rights Notice”) by BMO Nesbitt Burns Inc., on behalf of the Underwriters, to the Company not later than 9:00 a.m. (Toronto time) on the day before
the Closing Date (as defined below), specifying the aggregate number of Pre-Emptive Units to be purchased on the Closing Date. The Pre-Emptive Units shall be purchased by the Underwriters from the Company in their respective percentages set out in
Section 17 of this Agreement. Pursuant to such Pre-Emptive Rights Notice, on the Closing Date the Underwriters shall purchase severally, and not jointly, nor jointly and severally, and the Company shall sell the 

  

 
number of Pre-Emptive Units indicated in such Pre-Emptive Rights Notice, all upon the same terms and conditions set forth herein for the purchase and sale of
the Offered Units. The Pre-Emptive Units shall have attributes identical to the Offered Units. 
  
 By its acceptance hereof, the Company also grants to the Underwriters an option (the “Over-Allotment Option”) to purchase severally, and not jointly, nor jointly and severally, up to that number of
Units (the “Additional Units”) as is equal to 15% of the number of Offered Units and Pre-Emptive Units sold pursuant to the Offering to cover over-allotments, if any, at the Offering Price per Additional Unit upon the terms and
conditions set forth herein for the purchase and sale of Offered Units. The Over-Allotment Option shall be exercisable, in whole or in part, on written notice (each an “Exercise Notice”) by BMO Nesbitt Burns Inc., on behalf of the
Underwriters, to the Company not later than 5:00 p.m. (Vancouver time) on the 30th day following the Closing Date
(as defined below), specifying the aggregate number of Additional Units to be purchased on the Over-Allotment Closing Date (as defined below). The Additional Units shall be purchased by the Underwriters from the Company in their respective
percentages set out in Section 17 of this Agreement. Pursuant to such Exercise Notice, on the Over-Allotment Closing Date the Underwriters shall purchase severally, and not jointly, nor jointly and severally, and the Company shall sell the number of
Additional Units indicated in such Exercise Notice, all upon the same terms and conditions set forth herein for the purchase and sale of the Offered Units. The Additional Units shall have attributes identical to the Offered Units. 
  
 In consideration for their services hereunder, the Underwriters shall be
entitled to the fees provided for in Section 8 hereof and to that number of Brokers’ Warrants (as defined below) as is equal to 5% of the number of Units sold pursuant to the Offering (including without limitation those sold pursuant to the
exercise of the Pre-Emptive Option and the Over-Allotment Option). The Underwriters may, in their sole discretion, engage any sub-agents and offer to them any part of, but no more than, such fees. 
  
 All sales of Units in the United States will be made to persons the
Underwriters or the U.S. Affiliates (as defined below) designate to purchase Units directly from the Company as substituted purchasers (the “Substituted Purchasers”), and to the extent that Substituted Purchasers purchase at the
Closing Time, the obligations of the Underwriters to do so will be reduced by the number of Units purchased from the Company by Substituted Purchasers. Any reference in this Agreement to “the purchasers” shall be taken to be a reference to
the Underwriters, as the initial committed purchasers, and to the Substituted Purchasers, if any. 
  
 This offer is subject to the additional terms and conditions set forth below. 
  
 DEFINITIONS 
  
 In this Agreement: 
  
 “1933 Act” means the United States Securities Act of 1933, as amended; 
  
 “1934 Act” means the United States Securities Exchange Act of 1934, as amended; 
  
 “Accredited Investor” means an “accredited investor” as defined in Rule 501(a) of Regulation D under the 1933
Act; 
  

 - 2 - 

 “Additional Units” has the meaning given to it above; 
  
 “affiliate”, “distribution”, “material change”,
“material fact”, “misrepresentation”, and “subsidiary” have the respective meanings given to them in the Securities Act (British Columbia), unless the context suggests otherwise; 
  
 “Agreement” means the agreement resulting from the acceptance by the Company
of the offer made by the Underwriters by this letter;  
  
 “Applicable Securities Laws” means the Canadian Securities Laws and the U.S. Securities Laws; 
  
 “BCSC” means the British Columbia Securities Commission; 
  
 “Beneficiaries” has the meaning given to it in subsection 14(e); 
  

“Brokers’ Warrants” means in the aggregate that number of non-transferable common share purchase warrants of the Company (in form and substance
satisfactory to the Underwriters and their counsel) as is equal in number to 5% of the number of Units sold pursuant to the Offering, including pursuant to the exercise of the Pre-Emptive Option and the Over-Allotment Option, each such warrant
entitling the holder to purchase, at an exercise price equal to the Offering Price, one Common Share in the capital of the Company for a period of one year following the Closing Date; 
  
 “Business Day” means a day which is not a Saturday, a Sunday or a statutory or civic holiday in Toronto or Vancouver;

  
 “Canadian Securities Laws” means all applicable securities
laws in each of the Qualifying Provinces and the respective regulations and rules under such laws together with applicable published policy statements and instruments of the securities regulatory authorities in the Qualifying Provinces; 

 
 “Canadian Securities Regulators” means the Canadian securities regulatory
authority in each of the Qualifying Provinces;  
  
 “Claim”
has the meaning given to it in subsection 13(b);  
  
 “Closing
Date” means October 6, 2004 or such other date as the Company and the Underwriters may agree upon in writing;  
  
 “Closing Time” means, in respect of the purchase and sale of the Offered Units and the Pre-Emptive Units and the issuance of the Brokers’ Warrants
in connection with the sale of the Offered Units and the Pre-Emptive Units, 5:30 a.m. (Vancouver time) or such other time on the Closing Date as the Company and the Underwriters may agree, and in respect of the purchase and sale of the Additional
Units and the issuance of the Brokers’ Warrants in connection with the sale of the Additional Units, 5:30 a.m. (Vancouver time) or such other time on each Over-Allotment Closing Date as the Company and the Underwriters may agree; 

  
 “Closing” means the completion of the issuance and sale
by the Company of Units pursuant to this Agreement; 
  
 “Common
Shares” means the common shares without par value in the capital of the Company;  
  
 “Company” means Peru Copper Inc.; 
  

 - 3 - 

 “Environmental Laws” has the meaning given to it in subsection 10(cc);  
  
 “Exercise Notice” has the meaning given to it above; 
  
 “Final Prospectus” means the long form (final) prospectus of the Company
relating to the distribution of the Units in the Qualifying Provinces; 
  
 “Financial Statements” means the financial statements attached to and incorporated in the Prospectus, including without limitation the audited consolidated financial statements of the Company for the period from April 24,
2003 (incorporation of PCS) to December 31, 2003, the unaudited consolidated financial statements of the Company for the six month period ending June 30, 2004 and the unaudited pro forma consolidated statement of operations for the six month period
ending June 30, 2004;  
  
 “Foreign Private Issuer” means
“foreign private issuer” as that term is defined in Rule 405 under the 1933 Act. Without limiting the foregoing, but for greater clarity, it means any issuer which is a corporation or other organization incorporated or organized under the
laws of any country other than the United States, except an issuer meeting the following conditions: (1) more than 50 percent of the outstanding voting securities of such issuer are directly or indirectly owned of record by residents of the United
States; and (2) any of the following: (i) the majority of the executive officers or directors are United States citizens or residents, (ii) more than 50 percent of the assets of the issuer are located in the United States, or (iii) the business of
the issuer is administered principally in the United States; 
  
 “Indemnified Party” has the meaning given to it in subsection 13(b);  
  
 “Indemnifier” has the meaning given to it in subsection 14(a); 
  
 “Material Contracts” means all material agreements and instruments to which the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound or to which any of the property or assets of the Company or any Subsidiary is subject, and “Material Contract” means any of them;  
  
 “MPCS” means Minera Peru Copper Syndicate S.A., a company governed by the laws of Peru;  
  
 “MRRS” means the mutual reliance review system procedures provided for under
National Policy 43-201, Mutual Reliance Review System for Prospectuses and Annual Information Forms of the Canadian Securities Regulators; 
  
 “notice” has the meaning given to it in Section 24;  
  
 “Offered Unit” has the meaning given to it above; 
  
 “Offering Documents” means the Preliminary Prospectus, the Final Prospectus and the U.S. Placement Memorandum; 
  
 “Offering Jurisdictions” means the United States and the Qualifying
Provinces; 
  
 “Offering Price” has the meaning given to it
above;  
  
 “Offering” has the meaning given to it above;

  
 “Over-Allotment Closing Date” means in respect of that number
of Additional Units set out in an Exercise Notice, the date specified in such Exercise Notice, or if no such date is specified, the 

  

 - 4 - 

 
date which is two Business Days after the date such Exercise Notice is delivered to the Company; 
  
 “Over-Allotment Purchase Price” means the aggregate purchase price for the
Additional Units; 
  
 “PCS” means Peru Copper Syndicate, Ltd., a
company governed by the laws of the Cayman Islands;  
  
 “Pre-Emptive Option” has the meaning given to it above ; 
  
 “Pre-Emptive Rights” means the right of subscribers under the Treasury Private Placement and the Secondary Private Placement to maintain their pro rata interest in the Company pursuant to the Agency Agreement to the extent
such subscribers are not maintaining their pro rata interest by purchasing Offered Units;  
  
 “Pre-Emptive Rights Notice” has the meaning given to it above; 
  
 “Pre-Emptive Units” has the meaning given to it above; 
  
 “Preliminary Prospectus” means the amended and restated preliminary prospectus of the Company dated August 27, 2004, relating to the distribution of the
Units in the Qualifying Provinces;  
  
 “Prospectus” means
the Preliminary Prospectus until such time as the Final Prospectus is filed and a receipt issued therefor, after which it means the Final Prospectus;  
  
 “Purchase Price” means in respect of the Offered Units and the Pre-Emptive Units, the aggregate purchase price for the Offered Units and the Pre-Emptive
Units, and in respect of the Additional Units, the aggregate purchase price for the Additional Units;  
  
 “Qualifying Provinces” means all of the provinces of Canada; 
  
 “SEC” means the United States Securities and Exchange Commission; 
  
 “Securities” means the Unit Shares and Warrants comprising the Units, the Over-Allotment Option and the Brokers’ Warrants;  
  
 “Selling Firms” means the Underwriters together with such other investment
dealers and brokers through which the Underwriters may sell Units under the terms of this Agreement, together with any U.S. Affiliates;  
  
 “Shareholders” means Catherine E. McLeod-Seltzer, Ranchu Copper Investments Limited, Fisherking Holdings Ltd., J. David Lowell, Lowell Mineral
Exploration, LLC, Lowell Family Trust UA, Sunbeam Opportunities Limited, Campania Holding, Inc. and Tangent International Limited; 
  
 “Subsidiaries” means 
  

					
	 Name

	  	 Jurisdiction

	  	 Ownership (%)

	 PCS
	  	Cayman Islands	  	100%
			
	 MPCS
	  	Peru	  	99.9%

  

 - 5 - 

 “Substituted Purchasers” has the meaning given to it above; 
  
 “Supplemental Warrant Indenture” means the supplemental warrant indenture
dated on or about September 21, 2004 between the Company and the Transfer Agent and supplementing the Warrant Indenture; 
  
 “Supplementary Material” has the meaning ascribed thereto in Section 3;  
  
 “Toromocho Project” has the meaning given to it in the Prospectus ; 
  
 “Transfer Agent” means Computershare Trust Company of Canada, at its
principal office in the city of Toronto;  
  
 “TSX” means
the Toronto Stock Exchange; 
  
 “U.S. Affiliate” means the U.S.
registered broker-dealer affiliate of an Underwriter that is named in the U.S. Placement Memorandum;  
  
 “U.S. Placement Memorandum” means the U.S. private placement memorandum, the preliminary version of which will be attached to a copy of the Preliminary Prospectus and the final version of which will
be attached to the Final Prospectus, to be delivered to offerees and purchasers of the Units in the United States in accordance with Schedule “A” hereto;  
  
 “U.S. Securities Laws” means all applicable securities legislation in the United States, including without limitation the
1933 Act and the 1934 Act and the rules and regulations promulgated thereunder and any applicable state securities laws;  
  
 “Underlying Share” has the meaning given to it above; 
  
 “Underwriters” has the meaning given to it above; 
  
 “Underwriting Fee” has the meaning given to it in Section 8; and  
  
 “Unit Share” has the meaning given to it above; 
  
 “Units” has the meaning given to it above; 
  
 “Warrant Indenture” means the warrant indenture dated March 18, 2004 between the Company and the Transfer Agent and
relating to the Placement Warrants issued in connection with a previous private placement by the Company;  
  
 “Warrant Shares” means the Common Shares issuable on exercise of the Brokers’ Warrants; and  
  
 “Warrants” has the meaning given to it above. 
  
 Terms with an initial capital used in this Agreement and not otherwise
defined herein shall have the meanings given in the Prospectus. Unless otherwise expressly provided in this Agreement, words imparting only the singular number include the plural and vice versa and words imparting gender include all genders.
References to “Sections”, “subsections” and “clauses” are to the appropriate Section, subsection or clause of this Agreement. Unless the context otherwise requires, any reference to a statute shall be deemed to include
regulations made pursuant thereto, all amendments in force from time to time, and any statute or regulation 

  

 - 6 - 

 
that may be passed which has the effect of supplementing or superseding the statute or regulation referred to. 
  
 TERMS AND CONDITIONS 
  

	1.	Qualification of Units 

  
 The Company shall fulfil and comply with the Canadian Securities Laws required to be fulfilled or complied with by the Company to qualify the Units for
distribution in the Qualifying Provinces through the Underwriters or any other investment dealers or brokers who comply with Canadian Securities Laws. Without limiting the generality of the foregoing, the Company has filed the Preliminary Prospectus
in each of the Qualifying Provinces and obtained a preliminary MRRS decision document issued by the BCSC, in its capacity as principal regulator pursuant to the MRRS. The Company shall, as soon as possible after the execution of this Agreement and,
in any event, no later than September 24, 2004, or such other date as the Company and the Underwriters may agree, file the Final Prospectus in each of the Qualifying Provinces and obtain a final MRRS decision document issued by the BCSC, in its
capacity as principal regulator pursuant to the MRRS on behalf of each of the Qualifying Provinces in respect of the Final Prospectus other than any Qualifying Province which has opted out of MRRS (in which case the Company shall obtain a receipt
for the Final Prospectus in any Qualifying Province which has opted out of the MRRS and shall provide the Final Prospectus in compliance with Section 4. 
  

	2.	Documents to be Delivered 

  

	 	(a)	Preliminary Prospectus 

  
 Concurrently with the execution and delivery of this Agreement and to the extent not previously delivered, the Company shall deliver to each of the
Underwriters: 
  

	 	(i)	a copy of the Preliminary Prospectus in the English and French languages signed and certified; 

  

	 	(ii)	an opinion dated the date of the Preliminary Prospectus, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters, Underwriters’
counsel, the Company and the Company’s counsel, from Desjardins Ducharme Stein Monast of Montreal, Quebec, to the effect that the French language version of the Preliminary Prospectus except for the Financial Statements and the sections in the
Prospectus entitled “Prospectus Summary – Selected Consolidated Financial Information of Peru Copper”, “Selected Financial Information”, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations”, “Consolidated Capitalization” and “Auditors’ Consent” (collectively, the “Financial Information”) is to the extent required to be translated under Canadian Securities Laws, in all material
respects, a complete and accurate translation of the English language version thereof, and that the English and French language versions are not susceptible of any materially different interpretation with respect to any matter contained therein; and

  

 - 7 - 

	 	(iii)	a copy of any other document required to be filed by the Company concurrently with the Preliminary Prospectus under the laws of each of the Qualifying Provinces in compliance with
the Canadian Securities Laws. 

  

	 	(b)	Final Prospectus 

  
 Concurrently with the filing of the Final Prospectus, the Company shall deliver to each of the Underwriters: 
  

	 	(i)	a copy of the Final Prospectus in the English and French language signed and certified; 

  

	 	(ii)	a copy of the certificates of authentication for the Company in respect of the Final Prospectus signed and certified as required by the Canadian Securities Laws;

  

	 	(iii)	an opinion dated the date of the Final Prospectus, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters, Underwriters’
counsel, the Company and the Company’s counsel, from Desjardins Ducharme Stein Monast of Montreal, Quebec, to the effect that the French language version of the Final Prospectus except the Financial Information is, in all material respects, a
complete and accurate translation of the English language version thereof, and that the English and French language versions are not susceptible of any materially different interpretation with respect to any matter contained therein;

  

	 	(iv)	an opinion dated the date of the Final Prospectus, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters, Underwriters’
counsel, the Company and the Company’s counsel, from PricewaterhouseCoopers LLP to the effect that the Financial Information contained in the French language version of the Final Prospectus is, in all material respects, a complete and accurate
translation of the English language version thereof, and that the English and French language versions are not susceptible of any materially different interpretation with respect to any matter contained therein; 

  

	 	(v)	a copy of any other document required to be filed by the Company with the Final Prospectus under the laws of each of the Qualifying Provinces in compliance with the Canadian
Securities Laws; and 

  

	 	(vi)	a “long-form” comfort letter dated the date of the Final Prospectus, in form and substance satisfactory to the Underwriters, addressed to the Underwriters and the Company
from the auditors of the Company and based on a review completed not more than two Business Days prior to the date of the letter, with respect to the financial information relating to the Company in the Final Prospectus and any Supplementary
Material, which letter shall be in addition to the auditors’ report contained in the Final Prospectus and any auditors’ comfort letter addressed to the securities regulatory authorities in the Qualifying Provinces.

  

 - 8 - 

	3.	Supplementary Material 

  
 The Company shall deliver to the Underwriters duly signed copies of all amendments or supplements or any other supplemental documents to the Offering
Documents, as the case may be, required to be prepared by the Company under Applicable Securities Laws (collectively, the “Supplementary Material”) or other documents required to be filed under Section 5. The Supplementary Material
shall be in form and substance satisfactory to the Underwriters. Prior to the filing of any Supplementary Material, the Company shall deliver to the Underwriters with respect to such Supplementary Material, opinions, comfort letters and other
documents similar to those referred to in Section 2(b), as applicable. 
  

	4.	Commercial Copies 

  
 The Company shall cause commercial copies of the Offering Documents to be delivered to the Underwriters without charge in such numbers and in such cities
in the Offering Jurisdictions as the Underwriters may reasonably request on oral or written instruction from BMO Nesbitt Burns Inc. (on behalf of the Underwriters) to the Company or the printer of such documents given on or about the dates the
Preliminary Prospectus and the Final Prospectus are filed in each of the Qualifying Provinces. Such delivery shall be effected as soon as possible after the MRRS decision document has been issued by the BCSC in respect thereof and, in any event as
soon as reasonably practicable on the day following issuance of a receipt for the Final Prospectus in respect of the Final Prospectus. The Company shall similarly cause to be delivered commercial copies of the Supplementary Material required to be
delivered, on request or otherwise, to the Underwriters. The commercial copies of any such materials shall be identical in content to the electronically transmitted versions thereof filed with Canadian securities regulatory authorities pursuant to
the System for Electronic Document Analysis and Retrieval. 
  

	5.	Material Changes 

  

	 	(a)	Commencing on the date hereof and until the Underwriters notify the Company of the completion of the distribution, the Company shall promptly notify the Underwriters in writing of:

  

	 	(i)	any change (actual, anticipated, contemplated or threatened, financial or otherwise) in the business, affairs, operations, assets, liabilities (contingent or otherwise), prospects
or capital of the Company and any of its Subsidiaries, that would be material to the Company and its Subsidiaries (considered as a whole); 

  

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

  

	 	(iii)	any change in any material fact in any of the Offering Documents or Supplementary Material, or the existence of any new material fact, 

  
 which change or new material fact is, or may be, of such a nature as: 
  

	 	(iv)	 to render any of the Offering Documents or any Supplementary Material, as they exist taken together in their entirety immediately prior to such 

  

 - 9 - 

	 	 
change or new material fact, misleading or untrue 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 (as defined by Applicable Securities Laws); 

  

	 	(v)	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; 

  

	 	(vi)	would reasonably be expected to have a material effect on the market price or value of any of the Unit Shares and Warrants; or 

  

	 	(vii)	would be material to a prospective purchaser of the Units. 

  

	 	(b)	The Company shall promptly, and in any event within any applicable time limitation, comply with all applicable filing and other requirements under Applicable Securities Laws arising
as a result of such fact or change; provided that the Company shall not file any Supplementary Material or other document without first consulting with the Underwriters as to the form and content thereof. The Company shall, in good faith, discuss
with the Underwriters any fact or change (actual, anticipated, contemplated or threatened, financial or otherwise) which is of such a nature that there is any doubt as to whether notice in writing need be given to the Underwriters pursuant to this
Section 5. 

  

	 	(c)	If during the period of distribution of the Units in Canada or the offering of the Units in the United States and in such other jurisdictions mutually agreed to between the Company
and the Underwriters, there is any change in any Applicable Securities Laws which results in a requirement to file Supplementary Material, the Company shall, to the reasonable satisfaction of the Underwriters’ counsel in the applicable
jurisdictions, make any such filing required to be made by it as soon as practicable. 

  

	6.	Covenants of the Underwriters 

  
 The Underwriters shall (and shall require any selling firm to agree with such Underwriters, for the benefit of the Company, to): 
  

	 	(a)	offer the Units for sale to the public only as permitted by Applicable Securities Laws, any other applicable law and this Agreement; 

  

	 	(b)	 not solicit offers to purchase Units from, or sell Units to, any person resident in any jurisdiction other than the Qualifying Provinces and the United States,
except in jurisdictions where the Units may be lawfully sold and in a manner which is exempt from registration and prospectus requirements under applicable securities laws of such jurisdictions and which does not require the Company to register any
of its securities or comply with ongoing filing or disclosure requirements or other similar requirements and further provided that in connection therewith, the Company shall not be required to amend its constating documents or to qualify as a
foreign corporation or to file a general consent to service of process in any 

  

 - 10 - 

	 	 
jurisdiction or subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject;

  

	 	(c)	not make use of any “green sheet” or information memorandum in respect of the Company or the distribution of the Units in Canada or the United States that has not first
been approved by the Company; 

  

	 	(d)	not advertise the proposed offering or sale of the Units in printed public media, radio, television or telecommunications, including electronic display; and

  

	 	(e)	offer and sell the Units in the United States only through the U.S. Affiliates. Any offers and sales of Units in the United States shall be made in accordance with the terms and
conditions set out in Schedule “A” to this Agreement. The terms and conditions and the representations, warranties and covenants of the parties contained in Schedule “A” are hereby incorporated by reference.

  

	7.	Covenants of the Company 

  
 The Company covenants and agrees with the Underwriters and undertakes that: 
  

	 	(a)	during the period from the date hereof to the time that the Over-Allotment Option has expired, the Company will promptly provide to the Underwriters for review by the Underwriters
and the Underwriters’ counsel, prior to filing or issuance: 

  

	 	(i)	any financial statement of the Company; and 

  

	 	(ii)	any press release (subject to the Company’s obligations under Applicable Securities Laws to make timely disclosure of material information); 

  

	 	(b)	the Company will provide to the Underwriters and its counsel and consultants reasonable access to the Company’s properties, senior management personnel, technical consultants
and corporate, financial, technical and other records for the purposes of conducting such due diligence reviews, before each Closing Time, as they consider necessary or appropriate and, without limiting the generality of the foregoing, the Company
shall permit the Underwriters and their counsel to conduct all due diligence that they may, in their sole discretion, require in order to fulfill their obligations under Applicable Securities Laws; 

  

	 	(c)	the Company will allow the Underwriters and the Underwriters’ counsel to participate fully in the preparation of the Offering Documents and the Company acknowledges and agrees
that it shall be a condition precedent to the Underwriters’ execution of any certificate in any prospectus relating to the Offering that the Underwriters be satisfied, acting reasonably, as to the results of their due diligence investigations
and as to the form and content of any prospectus; 

  

	 	(d)	the Company will make available its senior management persons to meet with potential investors before each Closing Time if so requested by the Underwriters;

  

	 	(e)	 the Company will obtain all necessary approvals of the TSX for the listing and posting of the Unit Shares, the Warrants, the Underlying Shares and the Warrant
Shares for trading on the TSX, subject only to the filing of customarily required 

  

 - 11 - 

	 	 
documents which cannot reasonably be filed until after the Closing Time, and the Company thereafter shall file all required documents within the time periods
required by the TSX; 

  

	 	(f)	the Company will use its best efforts to maintain the listing of the Common Shares and, subject to the TSX’s requirements that a minimum number of Warrants be outstanding to be
listed and to the expiry date of the Warrants, the Warrants on the TSX or another stock exchange acceptable to the Underwriters in their sole discretion for a period of two years after the date of this Agreement; 

  

	 	(g)	the Company will use its best efforts to do and perform all things required or necessary to be done and performed under this Agreement by the Company prior to the Closing Time and
to satisfy all conditions precedent to the delivery of the Units; 

  

	 	(h)	the Company will use the net proceeds received by it from the sale of the Units pursuant to this Agreement for the purposes described under “Use of Proceeds” in the Final
Prospectus, subject to the conditions described thereunder; 

  

	 	(i)	the Company will not take directly or indirectly, any action which is designed to or which has constituted or which might reasonably be expected to cause or result in stabilization
or manipulation of the price of the Common Shares or the Warrants; 

  

	 	(j)	the Company will promptly complete all filings and pay all fees as may be necessary or desirable or as may be requested by the Underwriters, acting reasonably, in connection with
the Offering; 

  

	 	(k)	the Company will use its reasonable best efforts to remain a reporting issuer in the Qualifying Provinces, not in default of any requirement under the Canadian Securities Laws which
would reasonably be expected to affect trading in the Company’s securities, for a period of two years after the date of this Agreement; 

  

	 	(l)	the Company shall: 

  

	 	(i)	use its best efforts to remain a corporation validly subsisting under the laws of its jurisdiction of incorporation, licensed, registered or qualified as an extra-provincial or
foreign corporation in all jurisdictions where the character of its properties owned or leased or the nature of the activities conducted by it make such licensing, registration or qualification necessary; and 

  

	 	(ii)	carry on its business in compliance in all material respects with all applicable laws, rules and regulations of each such jurisdiction, 

  
 except where the failure to do so would not, individually or in aggregate,
materially adversely affect the Company and its Subsidiaries (taken as a whole); and 
  

	 	(m)	 the Company shall ensure that at each Closing, the Units, and each Unit Share and Warrant comprising a Unit, do not constitute “foreign property” within
the 

  

 - 12 - 

	 	 
meaning of the Income Tax Act (Canada) or any amendments thereto publicly announced by the Minister of Finance from time to time.

  

	8.	Services Provided by Underwriters and Underwriting Fee 

  
 In return for the Underwriters’ services including but not limited to acting as financial advisors to the Company with respect to the Offering,
assisting in the preparation of the Offering Documents, and performing administrative work in connection with the sales of the Units the Company will pay to the Underwriters a fee of 6% of the Purchase Price in respect of the Units (including the
Offered Units, the Pre-Emptive Units and the Additional Units) except in respect of up to an aggregate of 5,470,000 Units purchased by Shareholders who have entered into a founder’s waiver and indemnity agreement in form and substance
acceptable to the Underwriters (collectively, the “Underwriting Fee”). The Underwriting Fee shall be payable by way of set-off of the amount of the Underwriting Fee against, and deduction of the Underwriting Fee from, the Purchase
Price at the Closing Time. 
  

	9.	Delivery of Purchase Price, Underwriting Fee and Certificates 

  
 At the Closing Time on the Closing Date, the Company shall deliver to the Underwriters one or more definitive share certificate(s) and one or more
definitive warrant certificate(s) in global form, representing in the aggregate the Unit Shares and Warrants comprising the Offered Units and the Pre-Emptive Units and at the Closing Time on each Over-Allotment Closing Date, representing Unit Shares
and Warrants comprising the Additional Units, for deposit in the book-based system administered by The Canadian Depositary for Securities Limited, and, if requested by the Underwriters, certificates in registered form for delivery to specified
purchasers, against payment by the Underwriters to the Company of the applicable Purchase Price, less the fees payable pursuant to Section 8, by wire transfer, electronic transfer of funds, certified cheque or bank draft. For further clarity, all
share and warrant certificates issued to Substituted Purchasers shall be in registered, and not global, form. 
  

	10.	Representations, Warranties and Covenants of the Company 

  
 The Company covenants, represents and warrants to each of the Underwriters as of the date hereof and as of each Closing Time, that, and acknowledges that
each of the Underwriters is relying upon such covenants, representations and warranties in connection with its execution, delivery and performance of this Agreement: 
  

	 	(a)	none of the Canadian Securities Regulators, any stock exchange in Canada or any court has issued an order preventing or suspending the distribution of any of the Securities,
Underlying Shares or Warrant Shares or instituted proceedings for that purpose; 

  

	 	(b)	 each of the Company and the Subsidiaries has been duly incorporated and organized and is validly existing under its jurisdiction of incorporation, has all requisite
power and capacity and all necessary authorizations, approvals, consents, orders, licenses, certificates and permits of and from all governmental 

  

 - 13 - 

	 	 
bodies or any other person or entity to carry on its business as now conducted and as described in the Prospectus and to own, lease and operate its
properties and assets, and all of the foregoing are in full force and effect, except where the failure to obtain or maintain such authorizations, approvals, consents, orders, licenses, certificates and permits would not have a material adverse
effect on the assets or properties, business, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole. Each of the Company and the Subsidiaries is current with all material filings required
to be made in all jurisdictions in which it exists or carries on any material business, except where the failure to make such filings would not have a material adverse effect on the assets or properties, business results of operations or conditions
(financial or otherwise) of the Company and the Subsidiaries, and the Company has all requisite power and capacity to enter into, deliver and carry out its obligations under this Agreement and to issue, sell and deliver the Securities, the
Underlying Shares and the Warrant Shares, in accordance with the provisions of this Agreement. The Subsidiaries constitute the only material subsidiaries of the Company; 

  

	 	(c)	the authorized and issued capital of the Company as at the date of this Agreement is as set forth below: 

  

					
	 Class

	  	Authorized

	  	Issued

	 Common Shares
	  	Unlimited	  	47,000,000
	 Preference Shares
	  	Unlimited	  	Nil

  
 All of the
outstanding shares in the capital of the Company have been duly authorized and validly issued and are fully paid and non-assessable; except as disclosed in the Prospectus, none of the outstanding shares is subject to the pre-emptive rights of any
shareholder of the Company; and none of the outstanding shares was issued in violation of the pre-emptive rights of any shareholder of the Company; 
  

	 	(d)	except, in each case, as disclosed in the Prospectus, as at the Closing Date, no person will have any agreement, option, right or privilege (whether pre-emptive or contractual)
capable of becoming an agreement for the purchase, subscription or issuance of any securities of the Company or its Subsidiaries from or by the Company or its Subsidiaries and no rights, warrants or options to acquire, or instruments convertible
into or exchangeable for, any securities of the Company or its Subsidiaries, will be outstanding; 

  

	 	(e)	the Offering has been duly and properly approved by the directors of the Company, the Securities, the Underlying Shares and the Warrant Shares have been (or will be prior to the
Closing Time) duly and properly authorized for issuance, and, when issued, the Unit Shares, the Underlying Shares and the Warrant Shares will be duly and validly issued as fully paid and non-assessable; 

  

 - 14 - 

	 	(f)	prior to the Closing Time, the Company shall have reserved and allotted for issuance the Unit Shares issuable at Closing, the Underlying Shares issuable on exercise of the Warrants
and the Warrant Shares issuable upon exercise of the Brokers’ Warrants; 

  

	 	(g)	the Company owns, directly or indirectly, the issued and outstanding shares or quotas in the capital of each of the Subsidiaries set out below, 

  

					
	 Name

	  	 Jurisdiction

	  	 Ownership (%)

	 MPCS
	  	Peru	  	99.9%
			
	 PCS
	  	Cayman Islands	  	100%

  
 and J. David Lowell
holds the remaining one share of the paid-in capital of MPCS representing the remaining 0.1% ownership in trust for the Company in order to comply with Peruvian corporate law, 
  
 in each case free and clear of any pledge, lien, security interest, charge, claim or encumbrance of any kind ; 

 

	 	(h)	this Agreement, the Warrants, the Over-Allotment Option, the Brokers’ Warrants, the Warrant Indenture and the Supplemental Warrant Indenture have been (or will be prior to the
Closing Time) duly authorized, executed and delivered by the Company and each constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency and other
laws affecting the rights of creditors generally and the qualifications that (i) equitable remedies may be granted only in the discretion of a court of competent jurisdiction, (ii) rights to indemnity and contribution may be limited by applicable
law, and (iii) the enforceability of the provision contained in Section 15, which purports to sever from this Agreement certain provisions if prohibited or unenforceable under applicable law without affecting the enforceability of the remainder of
this Agreement, would be determined only in the discretion of a court; 

  

	 	(i)	 (i) at the respective times of filing and at all times subsequent to the filing thereof during the distribution, the Preliminary Prospectus, the Final Prospectus
and any Supplementary Material will comply with the requirements of Canadian Securities Laws, and the Preliminary Prospectus and the Final Prospectus will provide full, true and plain disclosure of all material facts relating to the Company and to
the Securities as required by Canadian Securities Laws and the Preliminary Prospectus and the Final Prospectus will not contain any misrepresentation (provided that the foregoing representation and warranty of the Company shall not apply, in each
case, to the facts or information relating solely to the Underwriters or which have been provided by the Underwriters or which are modified or superseded by facts or information contained in the Preliminary Prospectus, the Final Prospectus or any
Supplementary Material); and (ii) at the 

  

 - 15 - 

	 	 
respective times of delivery and at all times subsequent to the delivery thereof until completion of the initial sale of the Units in the United States, the
U.S. Placement Memorandum and any amendment or supplement thereto will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; 

  

	 	(j)	delivery by the Company to the Underwriters of commercial copies of the Offering Documents and any Supplementary Material shall constitute the consent of the Company to use each of
such documents in connection with the distribution of the Units in the Qualifying Provinces and the sale of the Units in the United States and in such other jurisdictions mutually agreed to between the Company and the Underwriters, subject to the
provisions of all Applicable Securities Laws; 

  

	 	(k)	the Company will not have filed any confidential material change reports since the date it became a reporting issuer or the equivalent in any jurisdiction; 

 

	 	(l)	no authorization, approval, consent, license, permit, order or filing of or with any government, governmental instrumentality or court of (i) any of the Qualifying Provinces, (ii)
the federal government of Canada, (iii) the federal government of the United States, or (iv) the United States or any political subdivisions thereof (other than those which have already been obtained or will be obtained prior to the Closing Time and
except as may be required under Blue Sky laws of the various states of the United States, and post-closing filings to be made with the TSX) is required for the valid issue, sale and delivery of the Securities, the Underlying Shares and Warrant
Shares or for the execution, delivery or performance of this Agreement; 

  

	 	(m)	the execution and delivery of this Agreement by the Company, the fulfilment of the terms of this Agreement and the consummation of the transactions contemplated by this Agreement do
not, and will not, conflict with or result in a breach of (i) any statute, rule or regulation of Canada applicable to the Company including, without limitation, Applicable Securities Laws and the by-laws, rules and regulations of the TSX; (ii) the
articles and by-laws of the Company or resolutions of the directors or shareholders of the Company which are in effect at the date of this Agreement; (iii) any mortgage, note, indenture, contract, agreement, instrument, lease or other document to
which the Company or any of its Subsidiaries is a party or by which it or they are bound except where the breach of such document would not have a material adverse effect on the assets, liabilities (contingent or otherwise), business, financial
condition or capital of the Company and the Subsidiaries, taken as a whole; or (iv) any judgment, decree or order binding the Company or any of the Subsidiaries or the property or assets of the Company or any of the Subsidiaries;

  

	 	(n)	 at each Closing Time, the Company will be in compliance in all material respects with timely disclosure obligations under Applicable Securities Laws and, without

  

 - 16 - 

	 	 
limiting the generality of the foregoing, there will not have occurred any material adverse change in the affairs of the Company since the end of the
Company’s most recently completed financial year (for which audited financial statements are available), which has not been publicly disclosed; 

  

	 	(o)	PricewaterhouseCoopers LLP, who have reported upon the audited consolidated financial statements of the Company included in the Prospectus are, and during the periods covered by
their reports were, auditors of the Company and to the best of the knowledge of the Company, independent with respect to the Company within the meaning of the Canadian Securities Laws; 

  

	 	(p)	the Transfer Agent has been duly appointed as the registrar and transfer agent for the Common Shares and the warrant agent for the Warrants; 

  

	 	(q)	the Company will be, as of each Closing Time, a reporting issuer in good standing and not in default in all of the provinces of Canada; 

  

	 	(r)	to the knowledge of the Company, no insider of the Company has a present intention to sell any securities of the Company held by it, other than as disclosed to the Underwriters;

  

	 	(s)	the Financial Statements of the Company (including all notes thereto) present fairly the financial position, the results of operations and cash flows of the Company and the
Subsidiaries consolidated (if applicable) at the respective dates and for the respective periods to which they apply; and such Financial Statements have been prepared in conformity with generally accepted accounting principles in Canada,
consistently applied throughout the periods involved, and all adjustments necessary for a fair presentation of the results for such periods have been made; 

  

	 	(t)	the Company has good title to the items of real and personal property which are reflected in the Financial Statements which are referred to in subsection (s) above as being owned by
them or which are referred to in the Prospectus as being owned by them and have valid and enforceable leasehold interests, in each of the items of real and personal property which are referred to in the Prospectus as being leased by them, in each
case free and clear of all liens, encumbrances, claims, security interests and defects; except where the loss of good title, loss of a valid and enforceable leasehold interest or the existence of a lien, encumbrance, claim, security interest or
defect does not have a material adverse effect on the assets or properties, business, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole; 

  

	 	(u)	except as disclosed in the Prospectus: 

  

	 	(i)	 there is no litigation or governmental or other proceeding or investigation at law or in equity before any court or before or by any federal, provincial, 

  

 - 17 - 

	 	 
state, municipal or other governmental or public department, commission, board, agency or body, domestic or foreign, pending or, to the best of the
Company’s knowledge, threatened (and the Company does not know of any basis therefor) against, or involving this Offering or the assets, properties or business of, the Company or any of the Subsidiaries; 

  

	 	(ii)	nor are there any matters under discussion with any governmental authority relating to taxes, governmental charges or assessments asserted by any such authority,

  
 which would materially adversely affect the
assets or properties, the business, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, and there is no litigation or other proceeding which has been threatened or commenced or, to the
knowledge of the Company, is contemplated, whether or not the litigation or other proceeding is material to the Company or its business, arising out of or in respect of this Offering and the proposed issuances of securities contemplated thereby;

  

	 	(v)	except as disclosed in the Prospectus, (i) there has not been any material change or a change in material fact (actual, proposed, threatened or contemplated) in the business,
affairs, operations, business prospects, assets, liabilities or obligations, contingent or otherwise, or capital of the Company or the Subsidiaries, and (ii) there has been no transaction entered into by the Company or the Subsidiaries, other than
those in the ordinary course of business, which is material to the Company; 

  

	 	(w)	except as disclosed in the Prospectus, (i) there has not been any material adverse change or any development involving a prospective material adverse change in the condition
(financial or otherwise) or in the results of operations or business of the Company and the Subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business; (ii) neither the Company nor any of the
Subsidiaries has sustained any material loss or interference with its assets, businesses or properties (whether owned or leased) from fire, explosion, earthquake, flood or other calamity, or from any labour dispute or any court or legislative or
other governmental action, order or decree; and (iii) since June 30, 2004, neither the Company nor any of the Subsidiaries has (A) issued any debt, shares of capital stock or securities convertible into or exchangeable for capital stock except under
any stock option plan or as a share bonus to officers and employees of the Company and the Subsidiaries or incurred any liabilities or obligation, direct or contingent, for borrowed money, except liabilities or obligations incurred in the ordinary
course of business, (B) entered into any transaction not in the ordinary course of business which is material to the Company and the Subsidiaries, taken as a whole or (C) declared or paid any dividend or made any distribution on any shares of its
capital stock or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or otherwise acquire any shares of its capital stock; 

  

 - 18 - 

	 	(x)	neither the Company nor any of the Subsidiaries is in default in the observance or performance of any term or obligation to be performed by it under any agreement, lease, contract,
mortgage, loan agreement, note, indenture or other instrument or obligation to which the Company or any of the Subsidiaries is a party or by which the Company or any of the Subsidiaries or any of their respective properties is bound and which breach
or default, singly or in the aggregate, if not cured or otherwise corrected within the respective period specified for such cure or correction, would have a material adverse effect on the assets or properties, business, results of operations or
condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, and no event as it relates to the Company or any of the Subsidiaries, and to the Company’s knowledge no event as it relates to any other party, has
occurred which with notice or lapse of time, or both, would constitute such a default, in any such case which default or event would have a material adverse effect on the assets or properties, business, results of operations or condition (financial
or otherwise) of the Company and the Subsidiaries, taken as a whole; 

  

	 	(y)	neither the Company nor any of the Subsidiaries is involved in any dispute relating to aboriginal claims or rights nor, to the knowledge of the Company, is any such dispute
threatened, which dispute has or would have a material adverse effect on the assets or properties (including, for this purpose, the Toromocho Project), business, results of operations or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole; 

  

	 	(z)	the Company has filed all tax returns which are required to be filed with any federal, or provincial or other governmental authority through the date thereof, or has received
extensions thereof, and has paid all taxes shown on such returns and all assessments received by it to the extent that the same are material and have become due or is disputing on a valid basis the payment of such taxes or assessments and except
where the failure to file such returns or pay such taxes would not have a material adverse effect on the business, results of operation or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole;

  

	 	(aa)	neither the Company nor any of its Subsidiaries has received notice from any governmental or regulatory authority of any jurisdiction in which it carries on a material part of its
business, or owns, leases or has an interest in any material property, of any restriction on its ability to or of a requirement for it to qualify to, nor are the Company or any of its Subsidiaries otherwise aware of any restriction on their
respective abilities to or of a requirement for them to qualify to, conduct their businesses as described in the Prospectus in such jurisdiction, except such qualifications as have been satisfied or where such restrictions or the absence of such
qualifications would not have a material adverse effect on the assets or properties, business, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole; 

  

 - 19 - 

	 	(bb)	the Company and the Subsidiaries are in compliance with each license held by them and are not in violation of, or in default in any respect under, the applicable statutes,
ordinances, rules, regulations, orders or decrees (including, without limitation, “Environmental Laws” as defined below) of any governmental entities, regulatory agencies or bodies having, asserting or claiming jurisdiction over them or
over any part of their respective operations or assets, except for such violations and defaults which, singly or in the aggregate, would not have a material adverse effect on the assets or properties, business, results of operations or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole; 

  

	 	(cc)	except as disclosed in the Prospectus, the Company and the Subsidiaries (i) are in compliance in all material respects with any and all applicable foreign, federal, provincial,
state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all
permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance in all material respects with all terms and conditions of any such permit, license or
approval, except where such non-compliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in
the aggregate, have a material adverse effect on the assets or properties, business, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole; 

  

	 	(dd)	all of the Material Contracts are described in the Prospectus and remain in full force and effect; 

  

	 	(ee)	other than pursuant to this Agreement, the Company is not a party to any contract, agreement or understanding with any person that would give rise to a valid claim against the
Company or the Underwriters for a brokerage commission, finder’s fee or like payment in connection with the Offering; 

  

	 	(ff)	there are no contracts, agreements or understandings between the Company and any person granting such person the right to require the Company to file a registration statement under
the 1933 Act with respect to any securities of the Company; 

  

	 	(gg)	other than in connection with the Treasury Private Placement and the Secondary Private Placement, there is no contract, agreement or understanding between the Company any other
person pursuant to which the Company has agreed, nor does the Company intend, to file a prospectus qualifying the issuance of any of the securities of the Company; 

  

 - 20 - 

	 	(hh)	there has never been a reportable disagreement (within the meaning of National Policy No. 31 - Change of Auditor of a Reporting Issuer) with the present or former auditors of
the Company or any of the Subsidiaries; 

  

	 	(ii)	the Company made available to each of IMC prior to the issuance of the Technical Report, MAG prior to the issuance of the Preliminary Assessment and the Underwriters and their
representatives all information requested by each of them, which information, to the knowledge of the Company, did not contain any misrepresentation at its date. The Company has no knowledge of a material adverse change in any information provided
to each of IMC, MAG the Underwriters or their representatives since the date that such information was so provided. The Company believes that the Technical Report, subject to the assumptions and limitations contained in the Technical Report,
reasonably presented the quantity and grade of resources of the Toromocho Project as at the date of the Technical Report based upon information available at the time the Technical Report was prepared and that the Preliminary Assessment, subject to
the assumptions and limitations contained in the Preliminary Assessment, reasonably presented the preliminary economic assessment and net present value of the Toromocho Project as at the date of the Preliminary Assessment based upon information
available at the time the Preliminary Assessment was prepared; 

  

	 	(jj)	the Units, and each Unit Share and Warrant comprising a Unit, are not “foreign property” as defined in the Income Tax Act (Canada); 

  

	 	(kk)	the minute books for the Company made available to counsel for the Underwriters in connection with its due diligence review contain full, true and correct copies of the constating
documents of the Company and contain copies of all minutes of all meetings and all consent resolutions of the directors, committees of the directors and members of the Company or to the extent not yet finalized, drafts of all such minutes or
resolutions have been made available to counsel for the Underwriters, and all such meetings were duly called, properly held and all such consent resolutions were properly adopted; and 

  

	 	(ll)	the directors of the Company have been duly and properly elected or appointed in accordance with applicable law and the Company’s articles and by-laws.

  

	11.	Conditions 

  
 The Underwriters’ obligation to purchase the Units at the Closing Time shall be subject to the following conditions being fulfilled at or prior to
the Closing, which conditions may be waived in writing in whole or in part by the Underwriters: 
  

	 	(a)	 no cease trade or similar order suspending the sale or distribution of the Securities, the Underlying Shares or the Warrant Shares in Canada or in the United States
or any order directed to the Offering Documents shall have been issued and remain in effect and no proceeding for that purpose shall be pending 

  

 - 21 - 

	 	 
or, to the knowledge of the Company or the Underwriters, threatened by any Canadian Securities Regulator; 

  

	 	(b)	all actions required to be taken by or on behalf of the Company, including the passing of all requisite resolutions of directors, of the Company approving this Agreement and the
Offering Documents, the issuance of the Securities, the Underlying Shares or the Warrant Shares, and all other matters required under this Agreement or relating to the foregoing, will have been taken so as to validly offer, sell and deliver the
Securities in the Qualifying Provinces and the United States and to issue, sell and deliver the Underlying Shares on exercise of the Warrants and the Warrant Shares on exercise of the Brokers’ Warrants, subject to the terms hereof;

  

	 	(c)	the Underwriters shall have received at the Closing Time an opinion addressed to the Underwriters and Blake, Cassels & Graydon LLP from Cassels, Brock & Blackwell LLP, dated
the Closing Date or Over-Allotment Closing Date, as applicable, in form and substance satisfactory to the Underwriters and their counsel, with respect to such matters related to the transactions contemplated hereby reasonably requested by the
Underwriters. In providing such opinion, Cassels, Brock & Blackwell LLP may rely upon the opinions of local counsel where they deem such reliance proper as to the laws other than those of Canada and Ontario and as to matters of fact, on
certificates of the Company’s registrar and transfer agent, auditors, public and stock exchange officials and officers of the Company. Without limiting the generality of the foregoing, such legal opinion shall address, among other things, the
following matters: 

  

	 	(i)	as to the incorporation or creation and existence of the Company under the laws of its governing jurisdiction, the corporate power and authority of the Company to carry on its
business as described in the Prospectus, to enter into and to carry out its obligations under this Agreement, and to issue the Securities, the Underlying Shares and the Warrant Shares as contemplated by this Agreement; 

  

	 	(ii)	as to the authorized capital of the Company; 

  

	 	(iii)	that all necessary action has been taken by and on behalf of the Company to duly approve the Offering and the creation and issuance of the securities contemplated thereby;

  

	 	(iv)	that the attributes of the Unit Shares, the Warrants and the Brokers’ Warrants are consistent in all material respects with the descriptions in the Prospectus;

  

	 	(v)	that the securities issued pursuant to the Prospectus have been qualified for distribution; 

  

 - 22 - 

	 	(vi)	that the execution and delivery of this Agreement, the Warrant Indenture, the Supplemental Warrant Indenture, the Warrants and the Brokers’ Warrants, the issue and sale of the
Units, and the consummation of the transactions contemplated by such agreements, do not and will not result in a breach (whether after notice or lapse of time or both) of any of the terms, conditions or provisions of the constating documents of the
Company, or resolutions of the directors of the Company in effect as of the Closing Time; 

  

	 	(vii)	that each of this Agreement, the Warrant Indenture, the Supplemental Warrant Indenture, the Warrants and the Brokers’ Warrants have been duly authorized and executed by the
Company and constitute a legal, valid and binding obligation of the Company enforceable against it in accordance with their terms, except as enforcement of such agreements may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the rights of creditors generally and except as limited by the application of equitable principles when equitable remedies are sought and by the fact that rights to indemnity, contribution and waiver, and the ability to sever
unenforceable terms, may be limited by applicable law; 

  

	 	(viii)	that the Warrants and the Unit Shares if, as and when the Warrants and the Common Shares are listed on a prescribed stock exchange will be qualified investments under the Tax
Act for trusts governed by registered retirement savings plans, registered retirement income funds, deferred profit sharing plans and registered education savings plans; 

  

	 	(ix)	that all necessary documents have been filed and all requisite proceedings have been taken and all necessary approvals, permits, consents and authorizations of the appropriate
regulatory authorities under the Canadian Securities Laws have been obtained by the Company to qualify the Securities for distribution in each of the Qualifying Provinces through investment dealers or brokers registered under the applicable laws of
the Qualifying Provinces who have complied with the relevant provisions of such applicable legislation; 

  

	 	(x)	no other authorization from any regulatory board or agency having jurisdiction over the Company or their properties (other than approvals, permits or orders that have been obtained)
is necessary to authorize the sale of the Securities; 

  

	 	(xi)	that the Unit Shares and Warrants comprising the Units have been duly authorized and validly issued by the Company and the Unit Shares are, and the Underlying Shares when issued on
exercise of the Warrants will be, outstanding as fully paid and non-assessable shares in the capital of the Company; 

  

 - 23 - 

	 	(xii)	that the form and terms of the certificates representing the Securities comply with the requirements of the Canada Business Corporations Act and conform in all material respects
with the rules of the TSX and have been duly approved by the Company; 

  

	 	(xiii)	that the Transfer Agent at its offices in Toronto has been duly appointed as the transfer agent and registrar for the Common Shares and warrant agent for the Warrants;

  

	 	(xiv)	that the Unit Shares, the Warrants, the Underlying Shares and the Warrant Shares have been conditionally approved for listing by the TSX on or before the Closing Time;

  

	 	(xv)	that the Underlying Shares and Warrant Shares will not be subject to a restricted period or statutory hold period under the applicable Canadian Securities Laws, or to any resale
restrictions under the policies of the TSX; 

  

	 	(xvi)	when issued, the Underlying Shares and the Warrant Shares will not be “foreign property” as defined in the Income Tax Act (Canada); 

  

	 	(xvii)	as to all other legal matters reasonably requested by counsel to the Underwriters relating to the distribution of the Units and the Offering; 

  

	 	(d)	the Underwriters shall have received at each Closing Time an opinion of U.S. counsel to the Company, Dorsey & Whitney LLP, in form and substance satisfactory to the Underwriters
and their counsel, acting reasonably, to the effect that no registration of Unit Shares and Warrants comprising the Units is required under the 1933 Act, provided that, in each case, the sale is made in accordance with Schedule “A” of this
Agreement, it being understood that such counsel need not express its opinion with respect to any subsequent resales of any of the Unit Shares and Warrants comprising the Units; 

  

	 	(e)	the Underwriters shall have received at each Closing Time an opinion of Peruvian and Cayman Islands counsel to the Company addressed to the Underwriters and Blake, Cassels &
Graydon LLP, dated the Closing Date or Over-Allotment Closing Date, as applicable, in form and substance satisfactory to the Underwriters and their counsel, with respect to such matters reasonably requested by the Underwriters. Without limiting the
generality of the foregoing, such legal opinions shall address, among other things, the incorporation or creation and existence of MPCS and PCS under the laws of their respective governing jurisdictions, each of their respective ownership and due
qualification to carry on its business as described in the Prospectus, the ownership of the Toromocho Project and such other matters related to the transactions contemplated hereby reasonably requested by the Underwriters; 

 

 - 24 - 

	 	(f)	the Underwriters shall have received at the Closing Time an opinion addressed to the Underwriters from their Canadian legal counsel, Blake, Cassels & Graydon LLP, dated the
Closing Date, in form and substance satisfactory to the Underwriters, with respect to such matters related to the transactions contemplated hereby reasonably requested by the Underwriters; 

  

	 	(g)	the Underwriters shall have received at the Closing Time a certificate dated the Closing Date or Over-Allotment Closing Date, as applicable, signed by an appropriate officer of the
Company addressed to the Underwriters and their counsel, with respect to the articles and by-laws of the Company, all resolutions of the board of directors of the Company relating to this Agreement, the incumbency and specimen signatures of signing
officers and with respect to such other matters as the Underwriters may reasonably request; 

  

	 	(h)	the Underwriters shall have received at each Closing Time a certificate dated the Closing Date or Over-Allotment Closing Date, as applicable, and signed on behalf of the Company by
the Chief Executive Officer of the Company or such other officer of the Company acceptable to the Underwriters, acting reasonably, addressed to the Underwriters and their counsel certifying for and on behalf of the Company, and not in their personal
capacity, after having made due enquiry that: 

  

	 	(i)	except as disclosed in the Prospectus, (A) there has been no material change (actual, anticipated, contemplated or threatened, whether financial or otherwise) in the business,
financial condition, affairs, operations, business prospects, assets, liabilities or obligations (contingent or otherwise) or capital of the Company and the Subsidiaries on a consolidated basis, and (B) no transaction has been entered into by any of
the Company or the Subsidiaries which is material to the Company and the Subsidiaries on a consolidated basis; 

  

	 	(ii)	except as disclosed in the Prospectus, there are no contingent liabilities affecting the Company or the Subsidiaries which are material to the Company and the Subsidiaries on a
consolidated basis; 

  

	 	(iii)	no order, ruling or determination having the effect of suspending the sale or ceasing the trading of the Common Shares or any other securities of the Company has been issued by any
regulatory authority and is continuing in effect and no proceedings for that purpose have been instituted or are pending or, to the knowledge of such officers, contemplated or threatened under any of the Canadian Securities Laws or by any other
regulatory authority; 

  

	 	(iv)	the Company has duly complied with and satisfied in all material respects all the covenants, terms and conditions of this Agreement on its part to be complied with up to the Closing
Time; 

  

 - 25 - 

	 	(v)	the representations and warranties of the Company contained in this Agreement are true and correct in all material respects as of the Closing Time with the same force and effect as
if made at and as of the Closing Time; and 

  

	 	(vi)	such other matters as the Underwriters may reasonably request; 

  

	 	(i)	the Underwriters shall have received at the Closing Time an agreement in the form attached as Schedule “B” hereto, executed by each of the Shareholders in which each of
them agrees not to directly or indirectly, issue, sell, offer, grant an option or right in respect of, or otherwise dispose of, or agree to, or announce any intention to, issue, sell, offer, grant an option or right in respect of, or otherwise
dispose of, any Common Shares or any securities convertible or exchangeable into Common Shares of the Company, other than (i) the exercise or conversion of any stock option or convertible security outstanding on the Closing Date, (ii) tendering of
Common Shares to a bona fide formal take-over bid from a third party acting at arm’s length to the Shareholders for 100% of the Common Shares of the Company; or (iii) Securities purchased by such persons under the Offering, for a period of two
years from the Closing Date, without the prior written consent of BMO Nesbitt Burns Inc., such consent not to be unreasonably withheld ; 

  

	 	(j)	the Company shall have entered into a registration rights agreement with each of the Substituted Purchasers on substantially the terms set out in Schedule “A”;

  

	 	(k)	as of the Closing Time, there are no reports or information that in accordance with the requirements of the Canadian Securities Regulators must be made publicly available in
connection with the sale of the Units that have not been made publicly available as required; there are no contracts, documents or other materials required to be filed with the SEC or with the Canadian Securities Regulators in connection with the
Final Prospectus that have not been filed as required and delivered to the Underwriters; there are no contracts, documents or other materials required to be described or referred to in the Final Prospectus or the final U.S. Placement Memorandum that
are not described or referred to as required and delivered to the Underwriters; 

  

	 	(l)	the Underwriters shall have received at each Closing Time a letter from the Transfer Agent dated the Closing Date or the Over-Allotment Closing Date, as applicable, and signed by an
authorized officer of such transfer agent, confirming the issued capital of the Company; 

  

	 	(m)	 the Final Prospectus shall have been filed with the BCSC, as principal regulator and an MRRS decision document shall have been issued in respect of the Final
Prospectus; no order of any securities commission, securities regulatory authority or stock exchange in Canada or the United States to cease distribution of any of the Securities under the Final Prospectus as amended or supplemented shall have been
issued, and no proceedings for such purpose shall have been instituted or, to 

  

 - 26 - 

	 	 
the knowledge of the Company, threatened; and all requests for additional information on the part of the SEC or the Reviewing Authority shall have been
complied with; 

  

	 	(n)	the Unit Shares, the Warrants, the Underlying Shares and the Warrant Shares shall be listed on the TSX immediately following Closing; 

  

	 	(o)	the Underwriters not having exercised any rights of termination set forth in Section 12; 

  

	 	(p)	the Underwriters having received at the Closing Time such further certificates, opinions of counsel and other documentation from the Company as may be contemplated in this Agreement
or as the Underwriters or their counsel may reasonably require; and 

  

	 	(q)	there not having occurred, prior to the Closing Time, any material change (actual, anticipated, contemplated or, to the knowledge of the Company, threatened, whether financial or
otherwise) in the business, affairs, operations, assets, liabilities (contingent or otherwise) or capital of the Company and the subsidiaries on a consolidated basis. 

  

	12.	Termination Rights 

  
 In addition to any other rights or remedies which may be available to the Underwriters: 
  

	 	(a)	if, prior to the Closing Time, any enquiry, action, suit, investigation or other proceeding whether formal or informal is instituted, threatened or announced or any order is made by
any federal, provincial or other governmental authority in relation to the Company, a Subsidiary or the Offering, which, in the reasonable opinion of any Underwriter, operates to prevent or restrict the distribution or trading of any of the Unit
Shares and Warrants comprising the Units, or materially and adversely affects, or could reasonably be expected to materially and adversely affect, the marketability of the Units, such Underwriter shall be entitled, at its sole option and in
accordance with subsection 12(f) to terminate its obligations under this Agreement by notice to that effect given to the Company and the other Underwriters at any time prior to the Closing Time; 

  

	 	(b)	 if, prior to the Closing Time, there should develop, occur or come into effect or existence any event, action, state, law, regulation, condition or occurrence of
national or international consequence whatsoever which, in the opinion of any Underwriter, seriously adversely affects or could reasonably be expected to seriously adversely affect the Canadian, United States or international financial markets or
the business, operations or affairs of the Company and its Subsidiaries, taken as a whole, then, in any one or more of the foregoing cases, such Underwriter shall be entitled, at its sole option, in accordance with subsection 

  

 - 27 - 

	 	 
12(f), to terminate its obligations under this Agreement by written notice to that effect given to the Company and the other Underwriters at any time prior
to the Closing Time; 

  

	 	(c)	if, prior to the Closing Time, there should occur or be announced by the Company any material change or a change in any material fact which, in the reasonable opinion of any
Underwriter, could reasonably be expected to have a significant adverse effect on the market price or value of any of the Securities, such Underwriter shall be entitled, at its sole option, in accordance with subsection 12(f), to terminate its
obligations under this Agreement by written notice to that effect given to the Company and the other Underwriters at any time prior to the Closing Time; 

  

	 	(d)	if, prior to the Closing Time, the state of the financial markets in Canada or elsewhere is such that, in the reasonable judgment of any of the Underwriters, the Units cannot be
marketed profitably, any Underwriter shall be entitled, at its sole option, in accordance with subsection 12(f), to terminate its obligations under this Agreement by written notice to that effect given to the Company and the other Underwriters at
any time prior to the Closing Time; 

  

	 	(e)	the Company agrees that all terms and conditions of this Agreement shall be construed as conditions and complied with so far as they relate to acts to be performed or caused to be
performed by it, that it will use its best efforts to cause such conditions to be complied with, and that any breach or failure by the Company to comply with any such conditions shall entitle any Underwriter, in accordance with subsection 12(f), to
terminate its obligations to purchase the Units by notice to that effect given to the Company at or prior to the Closing Time, unless otherwise expressly provided in this Agreement. An Underwriter may waive, in whole or in part, or extend the time
for compliance with, any terms and conditions without prejudice to its rights in respect of any other of such terms and conditions or any other or subsequent breach or non-compliance, provided that any such waiver or extension shall be binding upon
such Underwriter only if such waiver or extension is in writing and signed by such Underwriter; 

  

	 	(f)	the rights of termination contained in subsections 12(a), 12(b), 12(c), 12(d) and 12(e) may be exercised by any Underwriter and are in addition to any other rights or remedies the
Underwriters may have in respect of any default, act or failure to act or non-compliance by the Company in respect of any of the matters contemplated by this Agreement or otherwise. In the event of any such termination, there shall be no further
liability on the part of the terminating Underwriter to the Company or on the part of the Company to the terminating Underwriter except in respect of any liability which may have arisen or may arise after such termination under Sections 13, 14 and
16. 

  

 - 28 - 

	13.	Indemnity 

  

	 	(a)	The Company agrees to indemnify and save harmless each of the Underwriters and each of their subsidiaries and affiliates, and each of their respective directors, officers,
shareholders, employees and agents and each other person, if any, who directly or indirectly controls any Underwriter or any of its subsidiaries, and the successors and assigns of any of the foregoing persons (each an “Indemnified Party”),
from and against all liabilities, claims, losses (other than loss of profits), reasonable costs, fees, actions (including shareholder actions, derivative actions or otherwise), damages, reasonable expenses (including without limitation any legal
fees or other expenses reasonably incurred by the Underwriters (including for time spent by the Indemnified Party’s employees or agents) in connection with advising with respect to or defending or investigating any actual or threatened such
action, claim, suits, investigations or proceedings) and obligations, whether joint or several, in any way caused by, or arising directly or indirectly from, or to which an Indemnified Party may become subject or otherwise involved in any capacity
under any statute or common law, or otherwise insofar as such may arise out of or be based, directly or indirectly, or in consequence of: 

  

	 	(i)	any information or statement (except any statement relating solely to the Underwriters and provided by the Underwriters expressly for use therein) contained in the Prospectus or in
any certificate or other document filed or delivered pursuant to this Agreement which, at the time and in the light of the circumstances under which it was made, contains or is alleged to contain a misrepresentation; 

  

	 	(ii)	any omission or alleged omission in the Prospectus or in any certificate or other document filed or delivered pursuant to this Agreement, regarding any fact (except facts relating
solely to the Underwriters and provided by the Underwriters expressly for use therein), required to be stated therein or that is necessary to make any statement therein not misleading in light of the circumstances in which it was made;

  

	 	(iii)	any order made or enquiry, investigation or proceedings commenced or threatened by any securities commission or other competent authority based upon any untrue statement or omission
or alleged untrue statement or alleged omission or any misrepresentation or alleged misrepresentation (except a statement or omission or alleged statement or omission regarding facts relating solely to the Underwriters and provided by the
Underwriters expressly for use therein) in the Prospectus or in any certificate or other document filed or delivered pursuant to this Agreement or based upon any failure to comply with the Applicable Securities Laws (other than any failure or
alleged failure to comply by the Underwriters), preventing or restricting the trading in or the sale or distribution of the Units in any of the Qualifying Provinces; 

  

 - 29 - 

	 	(iv)	the non-compliance or alleged non-compliance by the Company with any of the Applicable Securities Laws; including the Company’s non-compliance with any statutory requirement to
make any document available for inspection; or 

  

	 	(v)	the breach or alleged breach by the Company of any representation or warranty set forth herein or the failure or alleged failure of the Company to comply with any of its obligations
hereunder. 

  
 Notification of Claims

  

	 	(b)	If any matter or thing contemplated by subsection 13(a) (any such matter or thing being referred to as a “Claim”) is 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 Company as soon as possible of the nature of such Claim (but the omission so to notify the Company of any potential Claim
shall not relieve the Company from any liability which it may have to any Indemnified Party and any omission so to notify the Company of any actual Claim shall affect the Company’s liability only to the extent that it is materially prejudiced
by that failure). The Company shall be entitled to participate in and, to the extent that it shall wish, to assume the defense of any suit brought to enforce such Claim; provided, however, that the defense shall be conducted through legal counsel
acceptable to the Indemnified Party, acting reasonably, that no settlement of any such Claim or admission of liability may be made by the Company or the Indemnified Party without the prior written consent of the other parties hereto, acting
reasonably, and the Company shall not be liable for any settlement of any such Claim unless it has consented in writing to such settlement (such consent not to be unreasonably withheld) or unless such settlement, compromise or judgment (i) includes
an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Indemnified Party
or the Company. 

  
 Retaining Counsel

  

	 	(c)	 In any such Claim, the Indemnified Party shall have the right to retain other counsel to act on its behalf, provided that the reasonable fees and disbursements of
such counsel shall be paid by the Indemnified Party unless: (i) the Company fails to assume the defense of such suit on behalf of the Indemnified Party within 10 days of receiving written notice of such suit; (ii) the Company and the Indemnified
Party shall have mutually agreed to the retention of the other counsel; or (iii) the named parties to any such Claim (including any added, third or impleaded party) include the Indemnified Party and the Company, and the Company and the Indemnified
Party shall have been advised by counsel to the Indemnified Party that the representation of all parties by the same counsel would be inappropriate due to the actual or potential differing interests between them. In 

  

 - 30 - 

	 	 
no event shall the Company be required to pay the reasonable fees and expenses of more than one set of counsel in any one jurisdiction for all Indemnified
Parties in respect of any particular Claim or related set of Claims. 

  

	14.	Contribution 

  

	 	(a)	In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in Section 13 is unavailable, in whole or in part, for any reason
to an Indemnified Party in respect of any Claim or part thereof, the Company (the “Indemnifier”) and the Underwriters shall contribute to the amount paid or payable (or, if such indemnity is unavailable only in respect of a portion
of the amount so paid or payable, such portion of the amount so paid or payable) by the Company as a result of such Claim in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the
Underwriters on the other hand from the offering of the Units; or if this allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to above but also the relative fault of
the Company on the one hand and the Underwriters on the other hand in connection with the information, statement, omission, misrepresentation, order, inquiry, investigation or other matter or thing referred to in Section 13 which resulted in such
Claims, as well as any other relevant equitable considerations. The Indemnifier shall in any event be liable to contribute to the amount paid or payable by an Indemnified Party as a result of a Claim, any amounts in excess of the Underwriting Fee or
any portion of such fee actually received by the Indemnified Party. 

  
 The relative benefits received by the Company on the one hand and the Underwriters on the other hand shall be deemed to be in the same proportion as the total proceeds from the Offering (net of the Underwriting Fee)
received by the Company is to the Underwriting Fee received by the Underwriters. The relative fault of the Company on the one hand and of the Underwriters on the other shall be determined by reference to, among other things, whether the information,
statement, omission, misrepresentation, order, inquiry, investigation or other matter or thing referred to in Section 13 which resulted in such Claims relates to information supplied by or steps or actions taken or done by or on behalf of the
Company or to information supplied by or steps or actions taken or done by or on behalf of the Underwriters and the relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission, misrepresentation,
order, inquiry, investigation or other matter or thing referred to in Section 13. The amount paid or payable by an Indemnified Party as a result of the Claims referred to above shall include any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending any such Claims, whether or not resulting in any such action, suit, proceeding or claim. The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 14 were determined by any 

  

 - 31 - 

 
method of allocation which does not take into account the equitable considerations referred to immediately above. 
  
 A person who is engaged in any fraud, fraudulent misrepresentation or gross
negligence shall not, to the extent that the claims, expenses, liabilities and losses were caused directly by that activity, be entitled to claim contributions therefor from any person who is not engaged in that fraud, fraudulent misrepresentation
or gross negligence. 
  
 Right of Contribution in Addition to
Other Rights 
  

	 	(b)	The rights to contribution provided in this Section 14 shall be in addition to and not in derogation of any other right to contribution which the Underwriters may have by statute or
otherwise at law. 

  
 Calculation of Contribution

  

	 	(c)	In the event that an Indemnifier may be held to be entitled to contribution from the Underwriters under the provisions of any statute or at law, the Indemnifier shall be limited to
contribution in an amount not exceeding the lesser of: 

  

	 	(i)	the portion of the full amount of the loss or liability giving rise to such contribution for which the Underwriters are responsible, as determined in subsection 14(a), and

  

	 	(ii)	the amount of the Underwriting Fee actually received by the Underwriters from the Company under this Agreement. 

  
 Notice of Claim for Contribution 
  

	 	(d)	Notification to the Company of a Claim pursuant to subsection 13(b) shall be deemed to also constitute notice to the Company that a claim for contribution by the Underwriters may
arise and omission to so notify shall have similar effect. 

  
 Right of Contribution in Favour of Others 
  

	 	(e)	The Company hereby acknowledges and agrees that, with respect to Sections 13 and 14 hereof, the Underwriters are contracting on their behalf and as agent for the other Indemnified
Parties (collectively, the “Beneficiaries”). In this regard the Underwriters shall act as trustee for the Beneficiaries of the Company’s covenants under Sections 13 and 14 hereof with respect to the Beneficiaries and accepts
these trusts and shall hold and enforce the covenants on behalf of the Beneficiaries. 

  

 - 32 - 

	15.	Severability 

  
 If any provision of Section 13 or 14 is determined to be void or unenforceable in whole or in part, it shall be deemed not to affect or impair the
validity of any other provision of this Agreement and such void or unenforceable provision shall be severable from this Agreement. 
  

	16.	Expenses 

  
 Whether or not the Offering is completed, the Company shall be responsible for and shall pay all of the Underwriters’ reasonable expenses incurred in
connection with the Offering (including, without limitation, all expenses related to the road shows, the underwriters’ and their consultants’ and representatives’ travel costs, hotel accommodations, meals, fees and disbursements of
advisors and technical consultants, marketing costs, out-of pocket expenses and printing costs) plus up to a maximum of $150,000 for all fees and disbursements of Underwriters’ Canadian and U.S. legal counsel (collectively, the “
Underwriting Expenses”). The Company shall be responsible for and shall pay, or reimburse if paid by or on behalf of the Underwriters, whether or not the transactions contemplated hereby are consummated or this Agreement is terminated,
all costs and expenses incidental to the Offering and the performance of the obligations of the Company under this Agreement, including, but not limited to, costs and expenses relating to: (i) the fees, disbursements and expenses of the
Company’s Canadian, United States, local, provincial and other foreign counsel, if any, technical consultants and the accountants in connection with the issuance of the Units; (ii) the preparation and delivery of any certificates for the
Securities to the Underwriters; (iii) all transfer taxes, if any, with respect to the sale and delivery of the Units by the Underwriters; (iv) the costs and expenses incidental to listing the Unit Shares and Warrants comprising the Units and
Additional Units on the TSX; (v) the costs and charges of any transfer agent, registrar and/or depositary; (vi) prospectus filing fees; (vii) printing costs; and (viii) all other costs and expenses incidental to the performance of the obligations of
the Company hereunder for which provision is not otherwise made in this Section. 
  

 - 33 - 

	17.	Underwriting Percentages 

  
 The obligation of the Underwriters to purchase or arrange for Substituted Purchasers of the Offered Units and the Pre-Emptive Units at the Closing Time
and the Additional Units at the Over-Allotment Closing Time shall be several (but not joint) and shall be limited to the percentages of the aggregate number of Offered Units and Pre-Emptive Units and of Additional Units set forth opposite the name
of the Underwriters below: 
  

				
	 BMO Nesbitt Burns Inc.
	  	40.0	%
	 GMP Securities Ltd.
	  	20.0	%
	 Haywood Securities Inc.
	  	12.5	%
	 National Bank Financial Inc.
	  	10.0	%
	 Canaccord Capital Corporation
	  	7.5	%
	 Salman Partners Inc.
	  	5.0	%
	 Sprott Securities Inc.
	  	5.0	%
	 	  	
	

	 	  	100	%
	 	  	
	

  
 In the event that any
Underwriter shall fail to purchase its applicable percentage of the Offered Units and Pre-Emptive Units at the Closing Time or of the Additional Units at the Over-Allotment Closing Time, the others shall have the right, but shall not be obligated,
to purchase all of the percentage of the Offered Units and Pre-Emptive Units or the Additional Units which would otherwise have been purchased by that one of the Underwriters which is in default. In the event that such right is not exercised, the
Underwriters which are not in default shall be relieved of all obligations to the Company and there shall be no further liability on the part of such Underwriters to the Company. Nothing in this section shall oblige the Company to sell to the
Underwriters less than all of the Offered Units and Pre-Emptive Units or relieve from liability to the Company any Underwriter which shall be so in default. In the event of a termination by the Company of its obligations under this Agreement under
this subsection, there shall be no further liability on the part of the Company to the Underwriters except in respect of any liability which may have arisen or may thereafter arise under Sections 13, 14 and 16. 
  

	18.	Black-out Period 

  
 The Company shall not, directly or indirectly, without the prior written consent of BMO Nesbitt Burns Inc., which consent shall not be unreasonably
withheld, issue, sell, transfer, offer for sale or otherwise dispose of any Common Shares or securities or other financial instruments convertible into or exchangeable for Common Shares or any right to acquire Common Shares or securities convertible
or exchangeable for Common Shares, or agree to do so, or announce publicly its intention to do so for a period of 180 days from Closing Date, other than (i) the grant or exercise of stock options or other similar issuances issued pursuant to the
Company’s existing stock option plans or similar share compensation arrangements in place prior to the Closing Date and described in the Prospectus; and (ii) as a result of the exercise of Notes, Warrants, the Over-Allotment Option, the
Brokers’ Warrants or any other convertible securities, share purchase warrants or options which are outstanding on the Closing Date and disclosed in the Prospectus or issued pursuant to (i) above or issued as part of this Offering. The
provisions of this Section shall apply mutatis mutandi to securities of the Subsidiaries. 
  

	19.	Survival of Representations and Warranties 

  
 The representations, warranties, obligations and agreements of the Company contained in this Agreement and in any certificate delivered pursuant to this
Agreement or in connection with the Offering shall survive the purchase or issuance of the Units and shall continue in full force and effect unaffected by any subsequent disposition of the Securities by the Underwriters or the termination of the
Underwriters’ obligations and shall not be limited or 

  

 - 34 - 

 
prejudiced by any investigation made by or on behalf of the Underwriters in connection with the distribution and sale of the Units for a period of two years
from the date hereof. 
  

	20.	Time of the Essence 

  
 Time shall be of the essence of this Agreement. 
  

	21.	Governing Law 

  
 This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable in Ontario.

  

	22.	Funds 

  
 All funds referred to in this Agreement shall be in Canadian dollars unless otherwise indicated. 
  

	23.	Authorization 

  
 BMO Nesbitt Burns Inc. is hereby authorized by each of the other Underwriters to act on its behalf and the Company shall be entitled to and shall act on
any notice given in accordance with this Section or agreement entered into by or on behalf of the Underwriters by BMO Nesbitt Burns Inc. which represents and warrants that it has irrevocable authority to bind the Underwriters, except as expressly
contemplated in this Agreement or in respect of any consent to a settlement pursuant to Section 13 or a notice of termination pursuant to Section 12, which notice may be given by any of the Underwriters. BMO Nesbitt Burns Inc. shall consult with the
other Underwriters concerning any matter in respect of which it acts as representative of the Underwriters. 
  

	24.	Notice 

  
 Unless otherwise expressly provided in this Agreement, any notice or other communication to be given under this Agreement (a “notice”)
shall be in writing addressed to: 
  

	 	(i)	the Company at: 

  
 Peru Copper Inc. 
 Suite 1650 – 777
Dunsmuir Street 
 Vancouver, BC V7Y 1K4 
  
 Attention:    Mr. David DeWitt 
 Fax:            (604) 688-0094 
  
 and a copy, not constituting notice, to: 
  
 Cassels, Brock & Blackwell LLP 
 Scotia
Plaza, Suite 2100 
 40 King Street West 
 Toronto, ON M5H 3C2 
  
 Attention:    Paul Stein 
 Fax:            (416)
350-6949 
  

 - 35 - 

	 	(ii)	the Underwriters at: 

  
 BMO Nesbitt Burns Inc. 
 Suite 1800, 885 West
Georgia Street 
 Vancouver, BC V6C 3E8 
  
 Attention:    Mr. Jamie Rogers 
 Fax:            (604) 443-1408 
  
 and to: 
  
 GMP Securities Ltd. 
 Suite 1100 – 145
King Street West 
 Toronto, ON M5H 1J8 
  
 Attention:    Mark Wellings 
 Fax:            (416) 367-8164 
  
 and to: 
  
 Haywood Securities Inc. 
 Commerce Place

 Suite 2000, 400 Burrard Street 
 Vancouver, BC V6C 3A6 
  
 Attention:    Keith L. Peck 
 Fax:            (604)
697-7482 
  
 and to: 
  
 National Bank Financial Inc. 
 Suite 3200 – 130 King Street West 
 Toronto, ON M5X 1J9 
  
 Attention:
    Gordon J. Bogden 
 Fax:             (416) 869-8595

  
 and to: 
  
 Canaccord Capital Corporation 
 Suite 2200 – 609 Granville Street 
 Vancouver, BC V7Y 1H2 
  
 Attention:    Jamie Brown 
 Fax:            (604)
643-7733 
  
 and to: 
  
 Salman Partners Inc. 
 2230 – 885 West Georgia Street 
 Vancouver, BC V6C 3E8 
  
 Attention:    Alan C. Herrington 
 Fax:            (604) 685-2471 
  

 - 36 - 

 and to: 
  
 Sprott Securities Inc. 
 Royal Bank Plaza, PO
Box 63 
 South Tower, Suite 2750 
 Toronto, ON M5J 2J2 
  
 Attention:         W. Jeff Kennedy 
 Fax:
                    (416) 943-6499 
  
 and a copy, not constituting notice, to: 
  
 Blake, Cassels & Graydon LLP 
 Suite 2600,
Three Bentall Centre 
 P. O. Box 49314 
 595 Burrard Street 
 Vancouver, BC V7X 1L3 
  

Attention:         Peter J. O’Callaghan 
 Fax:                     (604) 631-3309 
  
 or to such other address as any of the parties may designate by notice given to the others.

  
 Each notice shall be personally delivered to the addressee or
sent by fax to the addressee and (i) a notice which is personally delivered shall, if delivered on a Business Day, be deemed to be given and received on that day and, in any other case, be deemed to be given and received on the first Business Day
following the day on which it is delivered; and (ii) a notice which is sent by fax shall be deemed to be given and received on the first Business Day following the day on which it is sent. 
  

	25.	Press Releases 

  
 The Company shall provide BMO Nesbitt Burns Inc. with a copy of all press releases to be issued by the Company concerning the Offering prior to the
issuance thereof, and shall give BMO Nesbitt Burns Inc. an opportunity to provide comments on any such press release. 
  

	26.	Counterparts 

  
 This Agreement may be executed by any one or more of the parties to this Agreement in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same instrument. Delivery of such counterparts by facsimile shall constitute good delivery. 
  

 - 37 - 

	27.	Entire Agreement 

  
 This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof. 
  
 If the foregoing is in accordance with your understanding and is agreed to by
you, please signify your acceptance by executing the enclosed copies of this letter where indicated below and returning them to BMO Nesbitt Burns Inc. upon which this letter as so accepted shall constitute an Agreement among us. 
  
 Yours very truly, 
  

			
	BMO NESBITT BURNS INC.
		
	By:	 	 “Jamie Rogers”

	 	 	 Authorized Signatory

  

			
	GMP SECURITIES LTD.
		
	By:	 	 “Mark Wellings”

	 	 	 Authorized Signatory

  

 - 38 - 

			
	HAYWOOD SECURITIES INC.
		
	By:	 	 “Keith L. Peck”

	 	 	 Authorized Signatory

  

			
	NATIONAL BANK FINANCIAL INC.
		
	By:	 	 “Gordon J. Bogden”

	 	 	 Authorized Signatory

  

			
	CANACCORD CAPITAL CORPORATION
		
	By:	 	 “Jamie Brown”

	 	 	 Authorized Signatory

  

			
	SALMAN PARTNERS INC.
		
	By:	 	 “Alan C. Herrington”

	 	 	 Authorized Signatory

  

			
	SPROTT SECURITIES INC.
		
	By:	 	 “W. Jeff Kennedy”

	 	 	 Authorized Signatory

  

 - 39 - 

 The foregoing is accepted and agreed to as of the date first above written. 
  

			
	PERU COPPER INC.
		
	By:	 	 “Thomas J. Findley”

	 	 	 Authorized Signatory

  

 - 40 - 

  
 SCHEDULE “A”

  
 UNITED STATES OFFERS AND SALES 
  
 As used in this Schedule “A”, capitalized terms used herein and not
defined herein shall have the meanings ascribed thereto in the Underwriting Agreement to which this Schedule is annexed and the following terms shall have the meanings indicated: 
  

	 	(a)	“Accredited Investor” means “accredited investor” as that term is defined in Rule 501(a) of Regulation D; 

  

	 	(b)	“affiliate” means “affiliate” as that term is defined in Rule 405 under the 1933 Act; 

  

	 	(c)	“Directed Selling Efforts” means “directed selling efforts” as that term is defined in Regulation S. Without limiting the foregoing, but for greater clarity in
this Schedule, it means, subject to the exclusions from the definition of directed selling efforts contained in Regulation S, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the
market in the United States for any of the Units and includes the placement of any advertisement in a publication with a general circulation in the United States that refers to the offering of the Units; 

  

	 	(d)	“General Solicitation” or “General Advertising” means “general solicitation or general advertising”, as used under Rule 502(c) of Regulation D. Without
limiting the foregoing, but for greater clarity, general solicitation or general advertising includes, but is not limited to, any advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or
broadcast over radio, internet or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising; 

  

	 	(e)	“Person” means an individual, a firm, a corporation, a syndicate, a partnership, a trust, an association, an unincorporated organization, a joint venture, an investment
club, a government or an agency or political subdivision thereof and every other form of legal or business entity of any nature or kind whatsoever; 

  

	 	(f)	“Registrable Securities” shall mean the Unit Shares, the Underlying Shares and the Unit Shares and the Underlying Shares underlying the Additional Units and any other
securities issued or issuable with respect to or in exchange for Registrable Securities; 

  

	 	(g)	 “Registration Statement” shall mean a registration statement on Form F-1 or, if Form F-1 is not then available to the Company, on such form of
registration statement as is then available to effect registration for resale of the Registered Securities that the Company filed under the 1933 Act that covers the resale of the 

  

	 	 
Registrable Securities pursuant to subsections 10 through 13 of the representations, warranties and covenants of the Company in this Schedule “A”;

  

	 	(h)	“Regulation D” means Regulation D adopted by the SEC under the 1933 Act; 

  

	 	(i)	“Regulation S” means Regulation S adopted by the SEC under the 1933 Act; 

  

	 	(j)	“SEC” means the United States Securities and Exchange Commission; 

  

	 	(k)	“Substantial U.S. Market Interest” means “substantial U.S. market interest” as that term is defined in Regulation S; 

  

	 	(l)	“U.S. Affiliate” of any Underwriter means the U.S. registered broker-dealer affiliate of such Underwriter; 

  

	 	(m)	“U.S. Person” means “U.S. Person” as that term is defined in Regulation S; 

  

	 	(n)	“U.S. Subscription Agreement” means the form of subscription agreement agreed to be entered into between the Company and purchasers in the United States;

  

	 	(o)	“United States” means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia;

  

	 	(p)	“1933 Act” means the United States Securities Act of 1933, as amended; and 

  

	 	(q)	“1934 Act” means the United States Securities Exchange Act of 1934, as amended. 

  
 Representations, Warranties and Covenants of the Underwriters 
  
 Each Underwriter acknowledges that the Units, the Unit Shares, the Warrants and the Underlying Shares (in this Schedule “A”
collectively, the “Securities”) have not been registered under the 1933 Act or the securities laws of any state and may be offered and sold only in transactions exempt from or not subject to the registration requirements of the 1933 Act
and any applicable state securities laws. Accordingly, each Underwriter represents, warrants and covenants to the Company that: 
  

	1.	 It has not offered and sold, and will not offer and sell, any Securities as part of its allotment or otherwise as part of its distribution except (a) in an offshore
transaction in accordance with Rule 903 of Regulation S or (b) Units offered or sold on behalf of the Company to Substituted Purchasers in the United States in accordance with Rule 506 of Regulation D and as provided in Sections 2 through 10 below.
Accordingly, neither the Underwriter nor any of its affiliates nor any persons acting on its or their behalf, has made or will make (except as permitted in Sections 2 through 10 below) (i) any offer to sell or any solicitation of an offer to buy,
any Units to any Person in the United States or U.S. Person, (ii) any sale of Securities to any purchaser unless, at the time the buy order was or will have been originated, the purchaser was outside the United States, or such 

  

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Underwriter, affiliate or Person acting on its or their behalf reasonably believed that such purchaser was outside the United States, or (iii) any Directed
Selling Efforts in the United States with respect to any of the Units. 

  

	2.	It has not entered and will not enter into any contractual arrangement with respect to the distribution of Units except with its U.S. Affiliates, any selling group member or with
the prior written consent of the Company. 

  

	3.	All offers and sales of Units in the United States have been and will be made through the Underwriter’s U.S. Affiliate and all sales of the Units in the United States shall be
made pursuant to Rule 506 of Regulation D, by the Company to Accredited Investors designated by one of the Underwriters’ U.S. Affiliates. 

  

	4.	It and its affiliates have not, either directly or through a person acting on its or their behalf, solicited and will not solicit offers for, and have not offered to sell and will
not offer to sell, any of the Securities in the United States by any form of General Solicitation or General Advertising or in any manner involving a public offering within the meaning of Section 4(2) of the 1933 Act. 

  

	5.	Any offer, sale or solicitation of an offer to buy Units that has been made or will be made in the United States was or will be made only to Accredited Investors in transactions
that are exempt from registration under the 1933 Act and any applicable state securities laws and in accordance with any applicable U.S. federal or state laws or regulations governing the registration or conduct of securities brokers or dealers,
through the U.S. Affiliates of the Underwriters, each of which was on the dates of such offers and sales a duly registered broker or dealer pursuant to Section 15(b) of the 1934 Act and under the securities laws of each state in which such offers
and sales were made (unless exempted from the respective state’s broker-dealer registration requirements) and was and is a member in good standing with the National Association of Securities Dealers, Inc. 

  

	6.	Immediately prior to soliciting such offerees, the Underwriter, its affiliates, and any person acting on its or their behalf had reasonable grounds to believe and did believe that
each offeree in the United States was and is an Accredited Investor, and at the time of completion of each sale to a person in the United States or a U.S. Person, the Underwriter, its affiliates, and any person acting on its or their behalf will
have reasonable grounds to believe and will believe, that each purchaser designated by such Underwriter or its U.S. Affiliate to purchase Units from the Company is an Accredited Investor. 

  

	7.	Prior to completion of any sale of Units in the United States, it shall cause each U.S. purchaser thereof to execute and deliver a U.S. Subscription Agreement.

  

	8.	Each offeree that is in the United States shall be provided, prior to time of purchase of any Units with a copy of the U.S. Placement Memorandum attached to a copy of the Final
Prospectus. 

  

 - 3 - 

	9.	At least one business day prior to the time of delivery, the Company and its transfer agent will be provided with a list of all purchasers of the Units in the United States.

  

	10.	At Closing, each Underwriter together with its U.S. Affiliate, will provide a certificate, substantially in the form of Appendix I, relating to the manner of the offer and sale of
the Units in the United States or a written confirmation that it did not offer or sell any Units in the United States or to any purchasers in the United States or to U.S. Persons. 

  
 Representations, Warranties and Covenants of the Company 
  
 The Company represents, warrants, covenants and agrees that: 
  

	1.	The Company is, and at the Closing will be, a Foreign Private Issuer with no Substantial U.S. Market Interest in any of the Unit Shares or Warrants comprising the Units.

  

	2.	The Company is not, and as a result of the sale of the Units contemplated hereby will not be, an “investment company” as defined in the United States Investment Company
Act of 1940, as amended. 

  

	3.	Except with respect to offers and sales in the United States or to, or for the account or benefit of, Accredited Investors in reliance upon an exemption from registration available
under Rule 506 of Regulation D, neither the Company nor any of its affiliates, nor any person acting on its or their behalf (other than the Underwriters, their respective affiliates or any person acting on their behalf, in respect of which no
representation is made), has made or will make: (A) any offer to sell, or any solicitation of an offer to buy, any Securities in the United States or to, or for the account or benefit of, a person in the United States or to a U.S. Person; (B) any
sale of Securities unless, at the time the buy order was or will have been originated, the purchaser is (i) outside the United States or (ii) the Company, its affiliates, and any person acting on their behalf reasonably believe that the purchaser is
outside the United States and is not a U.S. Person or (iii) any Directed Selling Efforts in the United States with respect to any of the Securities. 

  

	4.	During the period in which the Securities are offered for sale, neither it nor any of its affiliates, nor any person acting on its or their behalf (other than the Underwriters,
their respective affiliates or any person acting on their behalf, in respect of which no representation is made) has engaged in or will engage in any Directed Selling Efforts with respect to the Securities in the United States, or has taken or will
take any action that would cause the exemption afforded by Rule 506 of Regulation D to be unavailable for offers and sales of Securities in the United States in accordance with this Schedule “A”, or the exclusion from registration afforded
by Rule 903 of Regulation S to be unavailable for offers and sales of the Securities outside the United States in accordance with the Underwriting Agreement. 

  

	5.	 None of the Company, any of its affiliates or any person acting on its or their behalf (other than the Underwriters, their respective affiliates or any person
acting on their behalf, in respect of which no representation is made) has offered or will offer to sell, or 

  

 - 4 - 

	 	 
has solicited or will solicit offers to buy, any of the Securities in the United States by means of any form of General Solicitation or General Advertising
or in any manner involving a public offering within the meaning of Section 4(2) of the 1933 Act. 

  

	6.	Except with respect to the offer and sale of the Units offered hereby, the Company has not, for a period of six months prior to the commencement of the offering of Units sold,
offered for sale or solicited any offer to buy any of its Units in the United States, or to, or for the account of a person in the United States, in a manner that would be integrated with the offer and sale of the Units and would cause the exemption
from registration set forth in Rule 506 of Regulation D to become unavailable with respect to the offer and sale of the Units. 

  

	7.	Neither the Company nor any of its predecessors or affiliates has been subject to any order, judgement, or decree of any court of competent jurisdiction temporarily, preliminarily
or permanently enjoining such person for failure to comply with Rule 503 of Regulation D. 

  

	8.	The Company will not take any action which could cause the Company not to be a Foreign Issuer for a period of 24 months after the Closing Date. 

  

	9.	If required by the registrar and transfer agent of the Company, subject to applicable law, the Company will use its best efforts to deliver an opinion or memorandum of U.S. counsel,
or such other document as may be required by such registrar and transfer agent to permit the removal of resale restrictions in connection with the resale of any of the Securities by investors in the United States through the facilities of the TSX or
another designated offshore securities market (as such term is defined in Regulation S) in reliance upon Rule 904 of Regulation S under the 1933 Act. 

  

	10.	Within 90 days after the Closing Date, the Company will have filed a Registration Statement with the SEC to permit resales of the Registrable Securities in the United States by the
holder of Registrable Securities or their assigns. 

  

	11.	The Company will use its best efforts to cause the SEC to declare the Registration Statement effective within 180 days after the Closing Date. 

  

	12.	 If the Company fails to file a Registration Statement with the SEC within 90 days after the Closing Date or fails to use its best efforts to cause the SEC to
declare the Registration Statement effective within 180 days of the Closing Date, the Company will pay to the holder of each Restricted Security (as defined herein) in either cash or common shares, at the option of the Company, valued at the then
current market price, an amount equal to 1% of the Offering Price of such Restricted Securities, attributable to that portion of the Restricted Securities not resold pursuant to Regulation S, for every 30 day period or portion thereof following the
date by which the Registration Statement should have been filed with the SEC or should have been declared effective, as applicable. For the purposes of this Section a “Restricted Security” is a Registrable Security held by purchasers of
Units issued by the Company in the Offering, their successors, assigns and 

  

 - 5 - 

	 	 
transferees, to the extent that such securities were purchased either directly from the Company in the Offering, or from another holder pursuant to a
exemption from the registration provisions of the 1933 Act, other than purchases pursuant to the exemption provided by Rule 904 of Regulation S under the 1933 Act 

  

	13.	The Company will use its best efforts to cause all Registrable Securities to be listed on either the Nasdaq National Market or the American Stock Exchange. 

 

	14.	In connection with the Registration Statement, the Company will indemnify each holder of Registrable Securities and agree to contribution in terms customary to those transactions.

  

	15.	The Company will use its best efforts to cause the Registration Statement to become effective and to remain continuously effective for a period that will terminate upon the earlier
of (i) the date on which all Registrable Securities covered by such Registration Statement, as amended from time to time, have been sold and (ii) the date on which all Registrable Securities covered by such Registration Statement may be sold
pursuant to Rule 144(k). 

  

	16.	The Company and BMO Nesbitt Burns Inc. will share equally (50%) in the payment of all expenses associated with the registration, including filing and printing fees, counsel and
accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities laws, fees and expenses of one counsel to the holders of the Registrable Securities and the reasonable expenses of
such holders of Registrable Securities in connection with the registration, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Registrable
Securities being sold; provided, however, that such payments by BMO Nesbitt Burns Inc. shall not exceed an aggregate amount of Cdn$250,000. 

  

 - 6 - 

  
 APPENDIX I 

TO SCHEDULE “A” 
  
 UNDERWRITERS’ CERTIFICATE 
  
 In connection with the private placement in the United States of common shares and warrants (the “Units”) of Peru Copper Inc. (the
“Company”) pursuant to the Underwriting Agreement dated September 20, 2004, among the Company and the Underwriters named therein (the “Underwriting Agreement”), the undersigned does hereby certify as follows: 
  

	 	(i)	the Units have been offered and sold in the United States only through our U.S. Affiliate(s), each of which was on the dates of such offers and sales, and is on the date hereof, a
duly registered broker or dealer pursuant to Section 15(b) of the 1934 Act and under the securities laws of each state in which such offers and sales were made (unless exempted from the respective state’s broker-dealer registration
requirements) and was and is a member in good standing with the National Association of Securities Dealers, Inc. 

  

	 	(ii)	all offers and sales of Units in the United States have been effected through our U.S. Affiliate(s) in accordance with all applicable federal and states laws and regulations
governing the registration and conduct of securities brokers and dealers; 

  

	 	(iii)	immediately prior to transmitting the U.S. Placement Memorandum to such offerees, we had reasonable grounds to believe and did believe that each offeree was an Accredited Investor
and, on the date hereof, we have reasonable grounds to believe and do believe that each person in the United States that we have arranged to purchase Units from the Company is an Accredited Investor; 

  

	 	(iv)	no form of General Solicitation or General Advertising was used by us, including any advertisements, articles, notices or other communications published in any newspaper, magazine
or similar media or broadcast over radio or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising, in connection with the offer or sale of the Units in the United States;

  

	 	(v)	the offering of the Units has been conducted in accordance with the terms of the Underwriting Agreement, including Schedule “A” thereto; and 

  

	 	(vi)	prior to any sale of Units in the United States we delivered a copy of the final U.S. Placement Memorandum and the Final Prospectus, each dated September
    , 2004 to the purchaser and caused the purchaser to execute a U.S. Subscription Agreement. 

  

 Terms used in this certificate have the meanings given to them in the Underwriting Agreement (including
Schedule “A” thereto) unless otherwise defined herein. 
  
 Dated this
         day of September, 2004. 
  

									
	[UNDERWRITER]	 	 	 	[BROKER-DEALER AFFILIATE]
					
	 By:
	 	 	 	 	 	 By:
	 	 
	 	 	 Name:
	 	 	 	 	 	 Name:

	 	 	 Title:
	 	 	 	 	 	 Title:

  

 - 2 - 

  
 SCHEDULE “B”

  
 LOCK-UP AGREEMENT 
  
 WHEREAS: 
  
 A. BMO Nesbitt Burns Inc., GMP Securities Ltd., Haywood Securities Inc., National Bank Financial Inc., Canaccord Capital Corporation, Salman
Partners Inc. and Sprott Securities Inc. (collectively the “Underwriters”) and Peru Copper Inc. (the “Company” ) have entered into an underwriting agreement dated September     , 2004 (the
“Underwriting Agreement” ) in respect of a prospectus offering by the Company; 
  
 B. Capitalized terms used but not defined herein shall have the meanings set forth in the Underwriting Agreement; 
  
 C. It is a condition to the Underwriters purchasing the Units at the Closing Time that the undersigned enter into this Agreement; 
  
 D. BMO Nesbitt Burns Inc. is authorized pursuant to the Underwriting Agreement to enter into
this Agreement on behalf of the Underwriters. 
  
 NOW
THEREFORE, to induce the Underwriters to complete the purchase and sale of the Units, in consideration of their completing the purchase and sale of the Units and of the premises contained herein and the sum of $10.00 now paid by each party unto
the other, the Underwriters and the undersigned, intending to be legally bound hereby, agree as follows: 
  

	1.	The undersigned acknowledges and agrees that the undersigned has received good, valuable and sufficient consideration for entering into this agreement. 

  

	2.	The undersigned agrees not to directly or indirectly, issue, sell, offer, grant an option or right in respect of, or otherwise dispose of, or agree to, or announce any intention to,
issue, sell, offer, grant an option or right in respect of, or otherwise dispose of, any Common Shares or any securities convertible or exchangeable into Common Shares of the Company, other than (i) the exercise or conversion of any stock option or
convertible security outstanding on the Closing Date, (ii) tendering of Common Shares to a bona fide formal take-over bid from a third party acting at arm’s length to the Shareholders for 100% of the Common Shares of the Company; or (iii)
Securities purchased by such persons under the Offering, for a period of two years from the Closing Date, without the prior written consent of BMO Nesbitt Burns Inc., such consent not to be unreasonably withheld. 

  

	3.	This Agreement may be executed in any number of counterparts and by facsimile, each of which shall be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument. 

  
 Dated September
    , 2004. 
  

									
	BMO NESBITT BURNS INC., on behalf of itself and on behalf of the Underwriters	 	 	 	[NAME]
					
	 By:
	 	 	 	 	 	 By:
	 	 
	 	 	 Authorized Signatory
	 	 	 	 	 	 Authorized Signatory

  

 - 2 -

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