Document:

Filed by Avantafile.com - Homeland Resources Ltd. - Exhibit 10.2

CONVERTIBLE PROMISSORY NOTE 

	Effective Date: January 22, 2015	U.S.
$70,000.00

FOR VALUE RECEIVED, Homeland Resources Ltd., a Nevada corporation (“Borrower”),
promises to pay to Typenex Co-Investment,
LLC, a Utah limited liability company, or its successors or assigns (“Lender”),
$70,000.00 and any interest, fees, charges, and late fees on the date that is ten (10) months after the Purchase Price Date (as defined below) (the “Maturity
Date”) in accordance with the terms set forth
herein and to pay interest on the Outstanding Balance
(as defined below) at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in
full. This Convertible Promissory Note (this “Note”)
is issued and made effective as of January 22, 2015 (the “Effective Date”).
For purposes hereof, the “Outstanding Balance” of this Note means, as of
any date of determination, the Purchase Price (as defined below), as reduced or
increased, as the case may be, pursuant to the terms hereof for redemption,
conversion, offset, or otherwise, plus any original issue discount (“OID”),
the Transaction Expense Amount (as defined below), accrued but unpaid interest,
collection and enforcements costs (including attorneys’ fees) incurred by
Lender, transfer, stamp, issuance and similar taxes and fees related to
Conversions (as defined below), and any other fees or charges (including
without limitation late charges) incurred under this Note. This Note is issued
pursuant to that certain Securities Purchase Agreement dated January 22, 2015,
as the same may be amended from time to time (the “Purchase Agreement”),
by and between Borrower and Lender. All interest calculations hereunder shall
be computed on the basis of a 360-day year comprised of twelve (12) thirty
(30) day months, shall compound daily and shall be payable in accordance
with the terms of this Note. Certain capitalized terms used herein but not
otherwise defined shall have the meaning ascribed thereto in the Purchase
Agreement. Certain other capitalized terms used herein are defined in Attachment
1 attached hereto and incorporated herein by this reference.

This Note carries an OID of $6,000.00. In addition, Borrower agrees to pay $4,000.00 to
Lender to cover Lender’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase
and sale of this Note (the “Transaction Expense Amount”), all of which
amount is included in the initial principal balance of this Note. The purchase
price for this Note and the Warrant (as defined in the Purchase Agreement)
shall be $60,000.00 (the “Purchase Price”), computed as follows:
$70,000.00 original principal balance, less the OID, less the Transaction
Expense Amount. The Purchase Price shall be payable by Lender by wire transfer
of immediately available funds. For purposes hereof, the term “Purchase
Price Date” means the date the Purchase Price is delivered by Lender to
Borrower 

1.                 
Payment; Prepayment. Provided there is an Outstanding Balance, on each Installment Date
(as defined below), Borrower shall pay to Lender an amount equal to the
Installment Amount (as defined below) due on such Installment Date in
accordance with Section 8. All payments
owing hereunder shall be in lawful money of the United States of America or
Conversion Shares (as defined below), as provided for herein, and delivered to
Lender at the address furnished to Borrower for that purpose. All payments
shall be applied first to (a) costs of collection, if any, then to (b) fees and
charges, if any, then to (c) accrued and unpaid interest, and thereafter, to
(d) principal. Notwithstanding the foregoing, so long as Borrower has not
received a Lender Conversion Notice (as defined below) or an Installment Notice
(as defined below) from Lender where the applicable Conversion Shares have not
yet been delivered and so long as no Event of Default has occurred since the
Effective Date (whether declared by Lender or undeclared), then Borrower shall
have the right, exercisable on not less than five (5) Trading Days prior
written notice to Lender to prepay the Outstanding Balance of this Note, in
full, in accordance with this Section 1. Any notice of prepayment hereunder (an “Optional
Prepayment Notice”) shall be delivered to Lender at its registered address
and shall state: (y) that Borrower is exercising its right to prepay this Note,
and (z) the date of prepayment, which shall be not less than five (5) Trading
Days from the date of the Optional Prepayment Notice. On the date fixed for
prepayment (the “Optional Prepayment Date”), Borrower shall make payment
of the Optional Prepayment Amount (as 

defined below) to or upon the order of
Lender as may be specified by Lender in writing to Borrower. If Borrower
exercises its right to prepay this Note, Borrower shall make payment to Lender
of an amount in cash (the “Optional Prepayment Amount”) equal to 125%
multiplied by the then Outstanding Balance of this Note. In the event Borrower
delivers the Optional Prepayment Amount to Lender prior to the Optional
Prepayment Date or without delivering an Optional Prepayment Notice to Lender
as set forth herein without Lender’s prior written consent, the Optional
Prepayment Amount shall not be deemed to have been paid to Lender until the
Optional Prepayment Date. Moreover, in such event the Optional Prepayment
Liquidated Damages Amount will automatically be added to the Outstanding
Balance of this Note on the day Borrower delivers the Optional Prepayment
Amount to Lender. In the event Borrower delivers the Optional Prepayment Amount
without an Optional Prepayment Notice, then the Optional Prepayment Date will
be deemed to be the date that is five (5) Trading Days from the date that the
Optional Prepayment Amount was delivered to Lender. In addition, if Borrower
delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment
Amount due to Lender within two (2) Trading Days following the Optional
Prepayment Date, Borrower shall forever forfeit its right to prepay this Note. 

2.                 
Security. This Note is unsecured.

3.                 
Lender Optional Conversion.

3.1.           
Lender Conversion Price. Subject to adjustment as set forth in this Note, the conversion
price for each Lender Conversion (as defined below) shall be $0.30 (the “Lender
Conversion Price”). However, in the event the Market Capitalization of the
Common Stock falls below $1,600,000.00 at any time, then in such event (i) the
Lender Conversion Price for all Lender Conversions occurring after the date of
such occurrence shall equal the lower of the Lender Conversion Price applicable
to any Lender Conversion and the Market Price as of any applicable date of
Conversion, and (ii) the true-up provisions of Section 11 below shall apply to all Lender
Conversions that occur after the first date the Market Capitalization of the
Common Stock falls below $1,600,000.00, provided that all references to the
“Installment Notice” in Section 11 shall be replaced with references to a
“Lender Conversion Notice” for purposes of this Section 3.1, all references to “Installment
Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares” for
purposes of this Section 3.1,
and all references to the “Installment Conversion Price” in Section 11 shall be replaced with references to the
“Lender Conversion Price” for purposes of this Section 3.1.

3.2.           
Lender Conversions. Lender has the right at any time after the Purchase Price Date
until the Outstanding Balance has been paid in full, including without
limitation (i) until any Optional Prepayment Date (even if Lender has received
an Optional Prepayment Notice) or at any time thereafter with respect to any
amount that is not prepaid, and (ii) during or after any Fundamental Default
Measuring Period, at its election, to convert (each instance of conversion is
referred to herein as a “Lender Conversion”) all or any part of the
Outstanding Balance into shares (“Lender Conversion Shares”) of fully
paid and non-assessable common stock, $0.0001 par value per share (“Common
Stock”), of Borrower as per the following conversion formula: the number of
Lender Conversion Shares equals the amount being converted (the “Conversion
Amount”) divided by the Lender Conversion Price. Conversion notices in the
form attached hereto as Exhibit A (each, a “Lender Conversion Notice”)
may be effectively delivered to Borrower by any method of Lender’s choice
(including but not limited to facsimile, email, mail, overnight courier, or
personal delivery), and all Lender Conversions shall be cashless and not
require further payment from Lender. Borrower shall deliver the Lender
Conversion Shares from any Lender Conversion to Lender in accordance with
Section 9 below within
three (3) Trading Days of Lender’s delivery of the Lender Conversion Notice to
Borrower. 

3.3.           
Application to Installments. Notwithstanding anything to the contrary herein, including without
limitation Section 8
hereof, Lender may, in its sole discretion, apply all or any portion of any
Lender Conversion toward any Installment Conversion (as defined below), even if
such 

2

Installment Conversion is pending, as determined in Lender’s sole
discretion, by delivering written notice of such election (which notice may be
included as part of the applicable Lender Conversion Notice) to Borrower at any
date on or prior to the applicable Installment Date. In such event, Borrower
may not elect to allocate such portion of the Installment Amount being paid
pursuant to this Section 3.3 in
the manner prescribed in Section 8.3; rather, Borrower must reduce the
applicable Installment Amount by the Conversion Amount described in this
Section 3.3. 

4.                 
Defaults and Remedies.

4.1.           
Defaults. The
following are events of default under this Note (each, an “Event of Default”):
(i) Borrower shall fail to pay any principal, interest, fees, charges, or any
other amount when due and payable hereunder; or (ii) Borrower shall fail to
deliver any Lender Conversion Shares in accordance with the terms hereof; or
(iii) Borrower shall fail to deliver any Installment Conversion Shares (as
defined below) or True-Up Shares (as defined below) in accordance with the
terms hereof; or (iv) a receiver, trustee or other similar official shall be
appointed over Borrower or a material part of its assets and such appointment
shall remain uncontested for twenty (20) days or shall not be dismissed or
discharged within sixty (60) days; or (v) Borrower shall become insolvent or
generally fails to pay, or admits in writing its inability to pay, its debts as
they become due, subject to applicable grace periods, if any; or (vi) Borrower
shall make a general assignment for the benefit of creditors; or (vii) Borrower
shall file a petition for relief under any bankruptcy, insolvency or similar
law (domestic or foreign); or (viii) an involuntary proceeding shall be
commenced or filed against Borrower; or (ix) Borrower shall default or
otherwise fail to observe or perform any covenant, obligation, condition or
agreement of Borrower contained herein or in any other Transaction Document,
other than those specifically set forth in this Section 4.1; or (x) Borrower shall become delinquent
in its filing requirements as a fully-reporting issuer registered with the SEC
or shall fail to timely file all required quarterly and annual reports and any
other filings that are necessary to enable Lender to sell Conversion Shares or
True-Up Shares pursuant to Rule 144; or (xi) any representation, warranty or
other statement made or furnished by or on behalf of Borrower to Lender herein,
in any Transaction Document, or otherwise in connection with the issuance of
this Note shall be false, incorrect, incomplete or misleading in any material
respect when made or furnished; or (xii) the occurrence of a Fundamental
Transaction without Lender’s prior written consent; or (xiii) Borrower shall
fail to maintain the Share Reserve as required under the Purchase Agreement; or
(xiv) Borrower effectuates a reverse split of its Common Stock without twenty (20)
Trading Days prior written notice to Lender; or (xv) any money judgment, writ
or similar process shall be entered or filed against Borrower or any subsidiary
of Borrower or any of its property or other assets for more than $100,000, and
shall remain unvacated, unbonded or unstayed for a period of twenty (20)
calendar days unless otherwise consented to by Lender; or (xvi) Borrower shall
fail to deliver to Lender original signature pages to all Transaction Documents
within five (5) Trading Days of the Purchase Price Date; or (xvii) Borrower
shall fail to be DWAC Eligible.

4.2.           
Remedies. Upon
the occurrence of any Event of Default, Borrower shall within one (1) Trading
Day deliver written notice thereof via facsimile, email or reputable overnight
courier (with next day delivery specified) (an “Event of Default Notice”)
to Lender. At any time and from time to time after the earlier of Lender’s
receipt of an Event of Default Notice and Lender becoming aware of the
occurrence of any Event of Default, Lender may accelerate this Note by written
notice to Borrower, with the Outstanding Balance becoming immediately due and
payable in cash at the Mandatory Default Amount (as defined hereafter).
Notwithstanding the foregoing, at any time following the occurrence of any Event
of Default, Lender may, at its option, elect to increase the Outstanding
Balance by applying the Default Effect (as defined below) (subject to the
limitation set forth below) via written notice to Borrower without accelerating
the Outstanding Balance, in which event the Outstanding Balance shall be
increased as of the date of the occurrence of the applicable Event of Default
pursuant to the Default Effect, but the Outstanding Balance shall not be
immediately due and payable unless so declared by Lender (for the avoidance of
doubt, if Lender elects to apply the Default Effect pursuant to this sentence,
it shall reserve the right to declare the Outstanding Balance immediately due
and payable at any time and no such 

3

election by Lender shall be deemed to be a
waiver of its right to declare the Outstanding Balance immediately due and
payable as set forth herein unless otherwise agreed to by Lender in writing).
For purposes hereof, the “Default Effect” is calculated by multiplying
the Outstanding Balance as of the date the applicable Event of Default occurred
by (i) 15% for each occurrence of any Major Default, or (ii) 5% for each
occurrence of any Minor Default, and then adding the resulting product to the
Outstanding Balance as of the date the applicable Event of Default occurred,
with the sum of the foregoing then becoming the Outstanding Balance under this
Note as of the date the applicable Event of Default occurred; provided that the
Default Effect may only be applied three (3) times hereunder with respect to Major
Defaults and three (3) times hereunder with respect to Minor Defaults; and
provided further that the Default Effect shall not apply to any Event of
Default pursuant to Section 4.1(ii) hereof. Notwithstanding the
foregoing, upon the occurrence of any Event of Default described in clauses
(iv), (v), (vi), (vii) or (viii) of Section 4.1, the Outstanding Balance as of the date
of acceleration shall become immediately and automatically due and payable in
cash at the Mandatory Default Amount, without any written notice required by
Lender. The “Mandatory Default Amount” means the greater of (i) the
Outstanding Balance divided by the Installment Conversion Price (as defined
below) on the date the Mandatory Default Amount is demanded, multiplied by the
volume weighted average price (the “VWAP”) on the date the Mandatory
Default Amount is demanded, or (ii) the Outstanding Balance following the
application of the Default Effect. At any time following the occurrence of any
Event of Default, upon written notice given by Lender to Borrower, interest
shall accrue on the Outstanding Balance beginning on the date the applicable
Event of Default occurred at an interest rate equal to the lesser of 22% per
annum or the maximum rate permitted under applicable law (“Default Interest”);
provided, however, that no Default Interest shall accrue during the
Fundamental Default Measuring Period (as defined below). Additionally,
following the occurrence of any Event of Default, Borrower may, at its option,
pay any Lender Conversion in cash instead of Lender Conversion Shares by paying
to Lender on or before the applicable Delivery Date (as defined below) a cash
amount equal to the number of Lender Conversion Shares set forth in the
applicable Lender Conversion Notice multiplied by the highest intra-day trading
price of the Common Stock that occurs during the period beginning on the date
the applicable Event of Default occurred and ending on the date of the
applicable Lender Conversion Notice. In connection with acceleration described
herein, Lender need not provide, and Borrower hereby waives, any presentment,
demand, protest or other notice of any kind, and Lender may immediately and
without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law.
Such acceleration may be rescinded and annulled by Lender at any time prior to
payment hereunder and Lender shall have all rights as a holder of the Note
until such time, if any, as Lender receives full payment pursuant to this
Section 4.2. No such rescission
or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon. Nothing herein shall limit Lender’s right to pursue any
other remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to Borrower’s failure to timely deliver Conversion Shares upon
Conversion of the Notes as required pursuant to the terms hereof.

4.3.           
Fundamental Default Remedies. Notwithstanding anything to the contrary herein, in addition to
all other remedies set forth herein, the Fundamental Liquidated Damages Amount
shall be added to the Outstanding Balance upon Lender’s delivery to Borrower of
a notice (which notice Lender may deliver to Borrower at any time following the
occurrence of a Fundamental Default) setting forth its election to declare a
Fundamental Default and the Fundamental Liquidated Damages Amount that will be
added to the Outstanding Balance.

4.4.           
Certain Additional Rights. Notwithstanding anything to the contrary herein, in the event
Borrower fails to make any payment or otherwise to deliver any Conversion
Shares as and when required under this Note, then (i) the Lender Conversion
Price for all Lender Conversions occurring after the date of such failure to
pay shall equal the lower of the Lender Conversion Price applicable to any
Lender Conversion and the Market Price as of any applicable date of Conversion,
and (ii) the true-up provisions of Section 11 below shall apply to all Lender
Conversions that occur after the date of such

4

failure to pay, provided that all
references to the “Installment Notice” in Section 11 shall be replaced with references to a
“Lender Conversion Notice” for purposes of this Section 4.4, all references to “Installment
Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares” for
purposes of this Section 4.4,
and all references to the “Installment Conversion Price” in Section 11 shall be replaced with references to the
“Lender Conversion Price” for purposes of this Section 4.4.

4.5.           
Cross Default. A
breach or default by Borrower of any covenant or other term or condition
contained in any Other Agreements (as defined below) shall, at the option of
Lender, be considered an Event of Default under this Note, in which event
Lender shall be entitled (but in no event required) to apply all rights and
remedies of Lender under the terms of this Note. “Other Agreements”
means, collectively, (a) all existing and future agreements and instruments
between, among or by Borrower (or an affiliate), on the one hand, and Lender
(or an affiliate), on the other hand, and (b) any financing agreement or a
material agreement that affects Borrower’s ongoing business operations. For the
avoidance of doubt, all existing and future loan transactions between Borrower
and Lender and their respective affiliates will be cross-defaulted with each
other loan transaction and with all other existing and future debt of Borrower
to Lender.

5.                 
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid,
binding and enforceable obligation of Borrower not subject to offset, deduction
or counterclaim of any kind. Borrower hereby waives any rights of offset it now
has or may have hereafter against Lender, its successors and assigns, and
agrees to make the payments or Conversions called for herein in accordance with
the terms of this Note.

6.                 
Waiver. No waiver
of any provision of this Note shall be effective unless it is in the form of a
writing signed by the party granting the waiver. No waiver of any provision or
consent to any prohibited action shall constitute a waiver of any other
provision or consent to any other prohibited action, whether or not similar. No
waiver or consent shall constitute a continuing waiver or consent or commit a
party to provide a waiver or consent in the future except to the extent
specifically set forth in writing. 

7.                 
Rights Upon Issuance of Securities. 

7.1.           
Subsequent Equity Sales. Except with respect to Excluded
Securities, if Borrower or any subsidiary thereof, as applicable, at any time
this Note is outstanding, shall sell or issue any Common Stock to Lender or any
third party for a price that is less than the then effective Lender Conversion
Price, then such Lender Conversion Price shall be automatically reduced and
only reduced to equal such lower issuance price. Except with respect to
Excluded Securities, if Borrower or any subsidiary thereof, as applicable, at
any time this Note is outstanding, shall sell or grant any option to any party
to purchase, or sell or grant any right to reprice, or issue any Common Stock,
preferred shares convertible into Common Stock, or debt, warrants, options or
other instruments or securities to Lender or any third party which are
convertible into or exercisable for shares of Common Stock (together herein
referred to as “Equity Securities”), including without limitation any
Deemed Issuance (as defined herein), at an effective price per share less than
the then effective Lender Conversion Price (such issuance, together with any
sale of Common Stock, is referred to herein as a “Dilutive Issuance”),
then, the Lender Conversion Price shall be automatically reduced and only
reduced to equal such lower effective price per share. If the holder of any
Equity Securities so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange
prices or otherwise, or due to warrants, options, or rights per share which are
issued in connection with such Dilutive Issuance, be entitled to receive shares
of Common Stock at an effective price per share that is less than the Lender
Conversion Price, such issuance shall be deemed to have occurred for less than
the Lender Conversion Price on the date of such Dilutive Issuance, and the then
effective Lender Conversion Price shall be reduced and only reduced to equal
such lower effective price per share. Such adjustments described above to the
Lender Conversion Price shall be permanent (subject to additional adjustments

5

under this section), and shall be made whenever such Common Stock or Equity
Securities are issued. Borrower shall notify Lender, in writing, no later than
the Trading Day following the issuance of any Common Stock or Equity Securities
subject to this Section 7.1,
indicating therein the applicable issuance price, or applicable reset price,
exchange price, conversion price, or other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not
Borrower provides a Dilutive Issuance Notice pursuant to this Section 7.1, upon the occurrence of any Dilutive
Issuance, on the date of such Dilutive Issuance the Lender Conversion Price
shall be lowered to equal the applicable effective price per share regardless
of whether Borrower or Lender accurately refers to such lower effective price
per share in any Installment Notice or Lender Conversion Notice.

7.2.           
Adjustment of Lender Conversion Price upon
Subdivision or Combination of Common Stock. Without
limiting any provision hereof, if Borrower at any time on or after the
Effective Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Lender Conversion Price in effect
immediately prior to such subdivision will be proportionately reduced. Without
limiting any provision hereof, if Borrower at any time on or after the
Effective Date combines (by combination, reverse stock split or otherwise) one
or more classes of its outstanding shares of Common Stock into a smaller number
of shares, the Lender Conversion Price in effect immediately prior to such
combination will be proportionately increased. Any adjustment pursuant to this
Section 7.2 shall become
effective immediately after the effective date of such subdivision or
combination. If any event requiring an adjustment under this Section 7.2 occurs during the period that a Lender
Conversion Price is calculated hereunder, then the calculation of such Lender
Conversion Price shall be adjusted appropriately to reflect such event.

7.3.           
Other Events. In the event that Borrower (or any subsidiary)
shall take any action to which the provisions hereof are not strictly
applicable, or, if applicable, would not operate to protect Lender from dilution or if any event occurs of the
type contemplated by the provisions of this Section 7 but
not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then Borrower’s board of directors shall in good faith
determine and implement an appropriate adjustment in the Lender Conversion
Price so as to protect the rights of Lender, provided that no such adjustment
pursuant to this Section 7.3
will increase the Lender Conversion Price as otherwise determined pursuant to
this Section 7,
provided further that if Lender does not accept such adjustments as
appropriately protecting its interests hereunder against such dilution, then
Borrower’s board of directors and Lender shall agree, in good faith, upon an
independent investment bank of nationally recognized standing to make such
appropriate adjustments, whose determination shall be final and binding and
whose fees and expenses shall be borne by Borrower.

8.                 
Borrower Installments.

8.1.           
Installment Conversion Price. Subject to the adjustments set forth herein, the conversion price
for each Installment Conversion (the “Installment Conversion Price”)
shall be the lesser of (i) the Lender Conversion Price, and (ii) the Market
Price.   

8.2.           
Installment Conversions. Beginning on the date that is six (6) months after the Purchase
Price Date and on the same day of each month thereafter until the Maturity Date
(each, an “Installment Date”), Borrower shall pay to Lender the
applicable Installment Amount due on such date, subject to the provisions of
this Section 8. Payments of
each Installment Amount may be made (a) in cash, or (b) by converting such
Installment Amount into shares of Common Stock (“Installment Conversion
Shares”, and together with the Lender Conversion Shares, the “Conversion
Shares”) in accordance with this Section 8 (each an “Installment Conversion”,
and together with Lender Conversions, a “Conversion”) per the following
formula: the number of Installment Conversion Shares equals the portion of the
applicable Installment Amount being converted divided by the Installment
Conversion Price, or (c) by any combination of the foregoing, so long as the
cash is delivered to Lender 

6

on the applicable Installment Date and the
Installment Conversion Shares are delivered to Lender on or before the
applicable Delivery Date. Notwithstanding the foregoing, Borrower will not be
entitled to elect an Installment Conversion with respect to any portion of any
applicable Installment Amount and shall be required to pay the entire amount of
such Installment Amount in cash if on the applicable Installment Notice Due
Date (defined below) there is an Equity Conditions Failure, and such failure is
not waived in writing by Lender. Moreover, in the event Borrower desires to pay
all or any portion of any Installment Amount in cash, it must notify Lender in
writing of such election and the portion of the applicable Installment Amount
it elects to pay in cash not more than twenty-five (25) or less than fifteen
(15) Trading Days prior to the applicable Installment Date. If Borrower fails
to so notify Lender, it shall not be permitted to elect to pay any portion of
such Installment Amount in cash unless otherwise agreed to by Lender in writing
or proposed by Lender in an Installment Notice delivered by Lender to Borrower. Notwithstanding that failure to repay this Note in full by the
Maturity Date is an Event of Default, the Installment Dates shall continue
after the Maturity Date pursuant to this Section 8 until the Outstanding Balance is repaid in
full, provided that Lender shall, in Lender’s sole discretion, determine the
Installment Amount for each Installment Date after the Maturity Date.

8.3.           
Allocation of Installment Amounts. Subject to Section 8.2 regarding an Equity Conditions Failure,
for each Installment Date (each, an “Installment Notice Due Date”),
Borrower may elect to allocate the amount of the applicable Installment Amount
between cash and via an Installment Conversion, by email or fax delivery of a
notice to Lender substantially in the form attached hereto as Exhibit B
(each, an “Installment Notice”), provided, that to be effective, each
applicable Installment Notice must be received by Lender not more than
twenty-five (25) or less than fifteen (15) Trading Days prior to the applicable
Installment Notice Due Date. If Lender has not received an Installment Notice
within such time period, then Lender may prepare the Installment Notice and
deliver the same to Borrower by fax or email. Following its receipt of such
Installment Notice, Borrower may either ratify Lender’s proposed allocation in
the applicable Installment Notice or elect to change the allocation by written
notice to Lender by email or fax on or before 12:00 p.m. New York time on the
applicable Installment Date, so long as the sum of the cash payments and the
amount of Installment Conversions equal the applicable Installment Amount,
provided that Lender must approve any increase to the portion of the
Installment Amount payable in cash. If Borrower fails to notify Lender of its
election to change the allocation prior to the deadline set forth in the
previous sentence (and seek approval to increase the amount payable in cash),
it shall be deemed to have ratified and accepted the allocation set forth in the
applicable Installment Notice prepared by Lender. If neither Borrower nor
Lender prepare and deliver to the other party an Installment Notice as outlined
above, then Borrower shall be deemed to have elected that the entire
Installment Amount be converted via an Installment Conversion. Borrower acknowledges and agrees that regardless of which party
prepares the applicable Installment Notice, the amounts and calculations set
forth thereon are subject to correction or adjustment because of error,
mistake, or any adjustment resulting from an Event of Default or other
adjustment permitted under the Transaction Documents (an “Adjustment”).
Furthermore, no error or mistake in the preparation of
such notices, or failure to apply any Adjustment that could have been applied
prior to the preparation of an Installment Notice may be deemed a waiver of
Lender’s right to enforce the terms of any Note, even if such error, mistake,
or failure to include an Adjustment arises from Lender’s own calculation.
Borrower shall deliver the Installment Conversion Shares from any Installment
Conversion to Lender in accordance with Section 9 below on or before each applicable Delivery Date.

9.                 
Method of Conversion Share Delivery. On or before the close of business on the third (3rd)
Trading Day following the Installment Date or the third (3rd)
Trading Day following the date of delivery of a Lender Conversion Notice, as
applicable (the “Delivery Date”), Borrower shall, provided it is DWAC
Eligible at such time, deliver or cause its transfer agent to deliver the
applicable Conversion Shares electronically via DWAC to the account designated
by Lender in the applicable Lender Conversion Notice or Installment Notice. If
Borrower is not DWAC Eligible, it shall deliver to Lender or its broker (as
designated in the Lender Conversion Notice or Installment Notice, as
applicable), via reputable overnight courier, a certificate representing the
number of shares of Common Stock equal to the 

7

number of Conversion Shares to
which Lender shall be entitled, registered in the name of Lender or its
designee. For the avoidance of doubt, Borrower has not met its obligation to
deliver Conversion Shares by the Delivery Date unless Lender or its broker, as
applicable, has actually received the certificate representing the applicable
Conversion Shares no later than the close of business on the relevant Delivery
Date pursuant to the terms set forth above.

10.             
Conversion Delays.
If Borrower fails to deliver Conversion Shares or True-Up Shares in accordance
with the timeframes stated in Sections 3, 8, 9, or 11, as applicable, Lender, at any time prior
to selling all of those Conversion Shares or True-Up Shares, as applicable, may
rescind in whole or in part that particular Conversion attributable to the
unsold Conversion Shares or True-Up Shares, with a corresponding increase to
the Outstanding Balance (any returned Conversion Amount will tack back to the
Purchase Price Date for purposes of determining the holding period under Rule
144). In addition, for each Lender Conversion, in the event that Lender
Conversion Shares are not delivered by the fourth Trading Day (inclusive of the
day of the Lender Conversion), a late fee equal to the greater of (a) $500.00
per day and (b) 2% of the applicable Lender Conversion Share Value rounded to
the nearest multiple of $100.00 (but in any event the cumulative amount of such
late fees for each Lender Conversion shall not exceed 200% of the applicable
Lender Conversion Share Value) will be assessed for each day after the third
Trading Day (inclusive of the day of the Lender Conversion) until Lender
Conversion Share delivery is made; and such late fee will be added to the
Outstanding Balance (such fees, the “Conversion Delay Late Fees”). For
illustration purposes only, if Lender delivers a Lender Conversion Notice to
Borrower pursuant to which Borrower is required to deliver 100,000 Lender
Conversion Shares to Lender and on the Delivery Date such Lender Conversion
Shares have a Lender Conversion Share Value of $20,000.00 (assuming a Closing
Trade Price on the Delivery Date of $0.20 per share of Common Stock), then in
such event a Conversion Delay Late Fee in the amount of $500.00 per day (the
greater of $500.00 per day and $20,000.00 multiplied by 2%, which is $400.00)
would be added to the Outstanding Balance of the Note until such Lender
Conversion Shares are delivered to Lender. For purposes of this example, if the
Lender Conversion Shares are delivered to Lender twenty (20) days after the
applicable Delivery Date, the total Conversion Delay Late Fees that would be
added to the Outstanding Balance would be $10,000.00 (20 days multiplied by
$500.00 per day). If the Lender Conversion Shares are delivered to Lender one
hundred (100) days after the applicable Delivery Date, the total Conversion
Delay Late Fees that would be added to the Outstanding Balance would be
$40,000.00 (100 days multiplied by $500.00 per day, but capped at 200% of the
Lender Conversion Share Value).

11.             
True-Up. On the date
that is twenty (20) Trading Days (a “True-Up Date”) from each date
Borrower delivers Free Trading (as defined below) Installment Conversion Shares
to Lender, there shall be a true-up where Borrower shall deliver to Lender
additional Installment Conversion Shares (“True-Up Shares”) if the
Installment Conversion Price as of the True-Up Date is less than the
Installment Conversion Price used in the applicable Installment Notice. In such
event, Borrower shall deliver to Lender within three (3) Trading Days of the
True-Up Date (the “True-Up Share Delivery Date”) a number of True-Up
Shares equal to the difference between the number of Installment Conversion
Shares that would have been delivered to Lender on the True-Up Date based on
the Installment Conversion Price as of the True-Up Date and the number of
Installment Conversion Shares originally delivered to Lender pursuant to the
applicable Installment Notice. For the avoidance of doubt, if the Installment
Conversion Price as of the True-Up Date is higher than the Installment
Conversion Price set forth in the applicable Installment Notice, then Borrower
shall have no obligation to deliver True-Up Shares to Lender, nor shall Lender
have any obligation to return any excess Installment Conversion Shares to Borrower
under any circumstance. For the convenience of
Borrower only, Lender may, in its sole discretion, deliver to Borrower a notice
(pursuant to a form of notice substantially in the form attached hereto as Exhibit
C) informing Borrower of the number of True-Up Shares it is obligated to
deliver to Lender as of any given True-Up Date, provided that if Lender does
not deliver any such notice, Borrower shall not be relieved of its obligation
to deliver True-Up Shares pursuant to this Section 11. Notwithstanding the foregoing, if
Borrower fails to deliver any required True-Up Shares on or before any
applicable True-Up Share Delivery Date, then in such event the Outstanding Balance
of this Note will 

8

automatically increase (under Lender’s and Borrower’s
expectations that any such increase will tack back to the Purchase Price Date
for purposes of determining the holding period under Rule 144) by a sum equal
to the number of True-Up Shares deliverable as of the applicable True-Up Date
multiplied by the Market Price for the Common Stock as of the applicable
True-Up Date.

12.             
Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or
the other Transaction Documents, if at any time Lender shall or would be issued
shares of Common Stock under any of the Transaction Documents, but such
issuance would cause Lender (together with its affiliates) to beneficially own
a number of shares exceeding 4.99% of the number of shares of Common Stock
outstanding on such date (including for such purpose the shares of Common Stock
issuable upon such issuance) (the “Maximum Percentage”), then Borrower
must not issue to Lender shares of the Common Stock which would exceed the Maximum
Percentage. For purposes of this section, beneficial ownership of Common Stock
will be determined pursuant to Section 13(d) of the 1934 Act. The shares of
Common Stock issuable to Lender that would cause the Maximum Percentage to be
exceeded are referred to herein as the “Ownership Limitation Shares”.
Borrower will reserve the Ownership Limitation Shares for the exclusive benefit
of Lender. From time to time, Lender may notify Borrower in writing of the
number of the Ownership Limitation Shares that may be issued to Lender without
causing Lender to exceed the Maximum Percentage. Upon receipt of such notice,
Borrower shall be unconditionally obligated to immediately issue such
designated shares to Lender, with a corresponding reduction in the number of the
Ownership Limitation Shares. Notwithstanding the forgoing, the term “4.99%”
above shall be replaced with “9.99%” at such time as the Market Capitalization
of the Common Stock is less than $10,000,000.00. Notwithstanding any other
provision contained herein, if the term “4.99%” is replaced with “9.99%”
pursuant to the preceding sentence, such increase to “9.99%” shall remain at
9.99% until increased, decreased or waived by Lender as set forth below. By written notice to Borrower, Lender may increase, decrease or
waive the Maximum Percentage as to itself but any such waiver will not be
effective until the 61st day after delivery thereof. The foregoing 61-day
notice requirement is enforceable, unconditional and non-waivable and shall
apply to all affiliates and assigns of Lender.

13.             
Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection
or enforcement prior to commencing arbitration or
legal proceedings, or is collected or enforced through any arbitration
or legal proceeding, or Lender otherwise takes action to collect amounts due
under this Note or to enforce the provisions of this Note, then Borrower shall
pay the costs incurred by Lender for such collection, enforcement or action
including, without limitation, attorneys’ fees and disbursements. Borrower also
agrees to pay for any costs, fees or charges of its transfer agent that are
charged to Lender pursuant to any Conversion or issuance of shares pursuant to
this Note.

14.             
Opinion of Counsel. In the event that an opinion of counsel is needed for any matter
related to this Note, Lender has the right to have any such opinion provided by
its counsel. Lender also has the right to have any such opinion provided by
Borrower’s counsel.

15.             
Governing Law. This Note shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation
and performance of this Note shall be governed by, the internal laws of the
State of Utah, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Utah or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than
the State of Utah. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes are
incorporated herein by this reference.

16.             
Resolution of Disputes. 

16.1.       
Arbitration of Disputes. By its acceptance of this Note, each
party agrees to be bound by the Arbitration Provisions set forth as an exhibit
to the Purchase Agreement.

9

16.2.       
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculations (as defined
in the Purchase Agreement), such dispute will be resolved in the manner
set forth in the Purchase Agreement.

17.             
Cancellation. After repayment or conversion of the entire
Outstanding Balance (including
without limitation delivery of True-Up Shares pursuant to the payment of the
final Installment Amount, if applicable), this Note shall be deemed paid in
full, shall automatically be deemed canceled, and shall not be reissued.

18.             
Amendments. The prior written consent of both parties hereto shall be
required for any change or amendment to this Note.

19.             
Assignments.
Borrower may not assign this Note without the prior written consent of Lender.
This Note and any shares of Common Stock issued upon conversion of this Note
may be offered, sold, assigned or transferred by Lender without the consent of
Borrower.

20.             
Time of the Essence. Time is expressly made of the essence with respect to each and
every provision of this Note and the documents and instruments entered into in
connection herewith.

21.             
Notices. Whenever
notice is required to be given under this Note, unless otherwise provided
herein, such notice shall be given in accordance with the subsection of the
Purchase Agreement titled “Notices.”

22.             
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to
comply with any of the terms or provisions of this Note, Lender’s damages would
be uncertain and difficult (if not impossible) to accurately estimate because
of the parties’ inability to predict future interest rates, future share
prices, future trading volumes and other relevant factors. Accordingly, Lender
and Borrower agree that any fees, balance adjustments, Default Interest or
other charges assessed under this Note are not penalties but instead are
intended by the parties to be, and shall be deemed, liquidated damages (under
Lender’s and Borrower’s expectations that any such liquidated damages will tack
back to the Closing Date for purposes of determining the holding period under
Rule 144).

[Remainder of page intentionally left
blank; signature page follows]

10

IN WITNESS WHEREOF, Borrower has caused this
Note to be duly executed as of the Effective Date. 

	 	BORROWER: 

    HOMELAND RESOURCES LTD. 

                     /s/ David St. James

      By: _______________________ 

    Name: David St. James                       

    Title: Treasurer & Secretary             

    

ACKNOWLEDGED,
ACCEPTED AND AGREED:

LENDER:

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs
Investments, Inc., its Manager

            /s/ John M. Fife

      By:                                                             

            John M. Fife, President

[Signature Page to Convertible Promissory Note]

ATTACHMENT 1
DEFINITIONS

For purposes of this Note, the
following terms shall have the following meanings: 

A1.              
“Adjusted Outstanding Balance” means the Outstanding
Balance of this Note as of the date the applicable Fundamental Default occurred
less any Conversion Delay Late Fees included in such Outstanding Balance.

A2.              
“Approved Stock Plan” means any stock
option plan which has been approved by the board of directors of Borrower,
pursuant to which Borrower’s securities may be issued to any employee, officer
or director for services provided to Borrower.

A3.              
“Closing Bid Price” and “Closing Trade
Price” means the last closing bid price and last closing trade price,
respectively, for the Common Stock on its principal market, as reported by
Bloomberg, or, if its principal market begins to operate on an extended hours
basis and does not designate the closing bid price or the closing trade price
(as the case may be) then the last bid price or last trade price, respectively,
of the Common Stock prior to 4:00:00 p.m., New York time, as reported by
Bloomberg, or, if its principal market is not the principal securities exchange
or trading market for the Common Stock, the last closing bid price or last
trade price, respectively, of the Common Stock on the principal securities
exchange or trading market where the Common Stock is listed or traded as
reported by Bloomberg, or if the foregoing do not apply, the last closing bid price
or last trade price, respectively, of the Common Stock in the over-the-counter
market on the electronic bulletin board for the Common Stock as reported by
Bloomberg, or, if no closing bid price or last trade price, respectively, is
reported for the Common Stock by Bloomberg, the average of the bid prices, or
the ask prices, respectively, of any market makers for the Common Stock as
reported by OTC Markets Group, Inc., and any successor thereto. If the Closing
Bid Price or the Closing Trade Price cannot be calculated for the Common Stock
on a particular date on any of the foregoing bases, the Closing Bid Price or
the Closing Trade Price (as the case may be) of the Common Stock on such date
shall be the fair market value as mutually determined by Lender and Borrower.
If Lender and Borrower are unable to agree upon the fair market value of the
Common Stock, then such dispute shall be resolved in accordance with the
procedures in Section 16.2.
All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during such period.

A4.              
“Conversion Factor” means 61%, subject to
the following adjustments. If at any time the average of the three (3) lowest
Closing Bid Prices in the twenty (20) Trading Days immediately preceding any
date of measurement is below $0.05, then in such event the then-current
Conversion Factor shall be reduced by 5% for all future Conversions (subject to
other reductions set forth in this section). Additionally, if at any time after
the Effective Date, Borrower is not DWAC Eligible, then the then-current
Conversion Factor will automatically be reduced by 5% for all future Conversions.
If at any time after the Effective Date, the Conversion Shares are not DTC
Eligible, then the then-current Conversion Factor will automatically be reduced
by an additional 5% for all future Conversions. Finally, in addition to the
Default Effect, if any Major Default occurs after the Effective Date, the
Conversion Factor shall automatically be reduced for all future Conversions by
an additional 5% for each of the first three (3) Major Defaults that occur
after the Effective Date (for the avoidance of doubt, each occurrence of any
Major Default shall be deemed to be a separate occurrence for purposes of the
foregoing reductions in Conversion Factor, even if the same Major Default
occurs three (3) separate times). For example, the first time Borrower is not
DWAC Eligible, the Conversion Factor for future Conversions thereafter will be
reduced from 61% to 56% for purposes of this example. Following such event, the
first time the Conversion Shares are no longer DTC Eligible, the Conversion
Factor for future Conversions thereafter will be reduced from 56% to 51% for
purposes of this example. If, thereafter, there are three (3) separate
occurrences of a Major Default pursuant to Section 4.1(iii), then for purposes of this example
the Conversion Factor would be reduced by 5% for the first such occurrence, and
so on for each of the second and third occurrences of such Major Default. 

A5.              
“Deemed Issuance” means an issuance of Common
Stock that shall be deemed to have occurred on the latest possible permitted
date pursuant to the terms hereof or any applicable Warrant in the event
Borrower fails to deliver Conversion Shares as and when required pursuant to
Sections 3 or 8 of the Note or Warrant Shares (as defined
in the Purchase Agreement) as and when required pursuant to the Warrant. For
the avoidance of doubt, if Borrower has elected or is deemed under Section 8.3 to have elected to pay an Installment
Amount in Installment Conversion Shares and fails to deliver such Installment
Conversion Shares, such failure shall be considered a Deemed Issuance hereunder
even if an Equity Conditions Failure exists at that time or other relevant date
of determination.

Attachment 1 to Convertible Promissory Note, Page 1

A6.              
“DTC” means the Depository Trust Company.

A7.              
“DTC Eligible” means, with respect to the
Common Stock, that such Common Stock is eligible to be deposited in certificate
form at the DTC, cleared and converted into electronic shares by the DTC and
held in the name of the clearing firm servicing Lender’s brokerage firm for the
benefit of Lender.

A8.              
“DTC/FAST Program” means the DTC’s Fast
Automated Securities Transfer service.

A9.              
“DWAC” means the DTC’s Deposit and Withdrawal
at Custodian service.

A10.          
“DWAC Eligible” means that (i) Borrower’s
Common Stock is eligible at DTC for full services pursuant to DTC’s operational
arrangements, including without limitation transfer through DTC’s DWAC system,
(ii) Borrower has been approved (without revocation) by the DTC’s underwriting
department, (iii) Borrower’s transfer agent is approved as an agent in the
DTC/FAST Program, (iv) the Conversion Shares are otherwise eligible for
delivery via DWAC; (v) Borrower has previously delivered all Conversion Shares
to Lender via DWAC; and (vi) Borrower’s transfer agent does not have a policy
prohibiting or limiting delivery of the Conversion Shares via DWAC.

A11.          
“Equity Conditions Failure” means that
any of the following conditions has not been satisfied during any applicable
Equity Conditions Measuring Period (as defined below): (i) with respect to
the applicable date of determination all of the Conversion Shares are freely
tradable under Rule 144 or without the need for registration under any
applicable federal or state securities laws (in each case, disregarding any
limitation on conversion of this Note); (ii) on each day during the period
beginning one month prior to the applicable date of determination and ending on
and including the applicable date of determination (the “Equity Conditions
Measuring Period”), the Common Stock is listed or designated for quotation
(as applicable) on any of The New York Stock Exchange, NYSE MKT, the Nasdaq
Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC
Bulletin Board, the OTCQX, the OTCQB or the OTC Pink Current (each, an “Eligible
Market”) and shall not have been suspended from trading on any such
Eligible Market (other than suspensions of not more than two (2) Trading
Days and occurring prior to the applicable date of determination due to
business announcements by Borrower); (iii) on each day during the Equity
Conditions Measuring Period, Borrower shall have delivered all shares of Common
Stock issuable upon conversion of this Note on a timely basis as set forth in
Section 9 hereof and all
other shares of capital stock required to be delivered by Borrower on a timely
basis as set forth in the other Transaction Documents; (iv) any shares of
Common Stock to be issued in connection with the event requiring determination
may be issued in full without violating Section 12 hereof (Lender acknowledges that Borrower
shall be entitled to assume that this condition has been met for all purposes
hereunder absent written notice from Lender); (v) any shares of Common
Stock to be issued in connection with the event requiring determination may be
issued in full without violating the rules or regulations of the Eligible
Market on which the Common Stock is then listed or designated for quotation (as
applicable); (vi) on each day during the Equity Conditions Measuring
Period, no public announcement of a pending, proposed or intended Fundamental
Transaction shall have occurred which has not been abandoned, terminated or
consummated; (vii) Borrower shall have no knowledge of any fact that would
reasonably be expected to cause any of the Conversion Shares to not be freely
tradable without the need for registration under any applicable state
securities laws (in each case, disregarding any limitation on conversion of
this Note); (viii) on each day during the Equity Conditions Measuring
Period, Borrower otherwise shall have been in material compliance with each,
and shall not have breached any, term, provision, covenant, representation or
warranty of any Transaction Document; (ix) without limiting clause (viii)
above, on each day during the Equity Conditions Measuring Period, there shall
not have occurred an Event of Default or an event that with the passage of time
or giving of notice would constitute an Event of Default; (x) on each
Installment Notice Due Date and each Installment Date, the average and median
daily dollar volume of the Common Stock on its principal market for the
previous twenty (20) Trading Days shall be greater than $5,000.00; (xi) the ten
(10) day average VWAP of the Common Stock is greater than $0.05, and (xii) the
Common Stock shall be DWAC Eligible as of each applicable Installment Notice
Due Date, Installment Date or other date of determination.

A12.          
“Excluded Securities” means any shares of
Common Stock, options, or convertible securities issued or issuable in
connection with any Approved Stock Plan; provided that the option term,
exercise price or similar provisions of any issuances pursuant to such Approved
Stock Plan are not amended, modified or changed on or after the Purchase Price
Date.

A13.          
“Free Trading” means that (a) the shares
or certificate(s) representing the applicable shares of Common Stock have been
cleared and approved for public resale by the compliance departments of
Lender’s brokerage firm and the clearing firm servicing such brokerage, and (b)
such shares are held in the name of the 

Attachment 1 to Convertible Promissory Note, Page 2

clearing firm servicing Lender’s
brokerage firm and have been deposited into such clearing firm’s account for
the benefit of Lender.

A14.          
“Fundamental Default” means that Borrower
either fails to pay the entire Outstanding Balance to Lender on or before the
Maturity Date or fails to pay the Mandatory Default Amount within three (3)
Trading Days of the date Lender delivers any notice of acceleration to Borrower
pursuant to Section 4.2 of this Note.

A15.          
“Fundamental Default Conversion Value”
means the Adjusted Outstanding Balance multiplied by the highest Fundamental
Default Ratio that occurs during the Fundamental Default Measuring Period.

A16.          
“Fundamental Default Measuring Period”
means a number of months equal to the Outstanding Balance as of the date the
Fundamental Default occurred divided by the Installment Amount, with such
number being rounded up to the next whole month; provided, however, that
if Borrower repays the entire Outstanding Balance prior to the conclusion of
the Fundamental Default Measuring Period, the Fundamental Default Measuring
Period shall end on the date of repayment. For illustration purposes only, if
the Outstanding Balance were equal to $125,000 as of the date a Fundamental
Default occurred and if the Installment Amount were $28,500, then the
Fundamental Default Measuring Period would equal five (5) months calculated as
follows: $125,000/$28,500 equals 4.386, rounded up to five (5).

A17.          
“Fundamental Default Ratio” means a ratio
that will be calculated on each Trading Day during the Fundamental Default
Measuring Period by dividing the Closing Trade Price for the Common Stock on a
given Trading Day by the Lender Conversion Price (as adjusted pursuant to the
terms hereof) in effect for such Trading Day.

A18.          
“Fundamental Liquidated Damages Amount”
means the greater of (i) (a) the quotient of the Outstanding Balance on the
date the Fundamental Default occurred divided by the then-current Conversion
Factor, minus (b) the Outstanding Balance on the date the Fundamental Default
occurred, or (ii) the Fundamental Default Conversion Value.

A19.          
“Fundamental Transaction” means that (i)
(a) Borrower or any of its subsidiaries shall, directly or indirectly, in
one or more related transactions, consolidate or merge with or into (whether or
not Borrower or any of its subsidiaries is the surviving corporation) any other
person or entity, or (b) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, sell, lease,
license, assign, transfer, convey or otherwise dispose of all or substantially
all of its respective properties or assets to any other person or entity, or (c) Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more
related transactions, allow any other person or entity to make a purchase,
tender or exchange offer that is accepted by the holders of more than 50% of
the outstanding shares of voting stock of Borrower (not including any shares of
voting stock of Borrower held by the person or persons making or party to, or
associated or affiliated with the persons or entities making or party to, such
purchase, tender or exchange offer), or (d) Borrower or any of its
subsidiaries shall, directly or indirectly, in one or more related
transactions, consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with any other person or entity whereby such
other person or entity acquires more than 50% of the outstanding shares of
voting stock of Borrower (not including any shares of voting stock of Borrower
held by the other persons or entities making or party to, or associated or
affiliated with the other persons or entities making or party to, such stock or
share purchase agreement or other business combination), or (e) Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more
related transactions, reorganize, recapitalize or reclassify the Common Stock,
other than an increase in the number of authorized shares of Borrower’s Common
Stock, or (ii) any “person” or “group” (as these terms are used for
purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and
regulations promulgated thereunder) is or shall become the “beneficial owner”
(as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued and
outstanding voting stock of Borrower.

A20.          
“Installment Amount” means the greater of
(i) $14,000.00 ($70,000.00 ÷ 5), plus the sum of any accrued and unpaid
interest as of the applicable Installment Date and accrued, and unpaid late
charges, if any, under this Note as of the applicable Installment Date, and any
other amounts accruing or owing to Lender under this Note as of such
Installment Date, and (ii) the then Outstanding Balance divided by the number
of Installment Dates remaining prior to the Maturity Date.

A21.          
“Lender Conversion Share Value” means the
product of the number of Lender Conversion Shares deliverable pursuant to any
Lender Conversion multiplied by the Closing Trade Price of the Common Stock on
the Delivery Date for such Lender Conversion.

Attachment 1 to Convertible Promissory Note, Page 3

A22.          
“Major Default” means any Event of
Default occurring under Sections 4.1(i), (iii), (x), or (xiii) of this Note.

A23.          
“Market Capitalization of the Common Stock”
shall mean the product equal to (a) the average VWAP of the Common Stock for
the immediately preceding fifteen (15) Trading Days, multiplied by (b) the
aggregate number of outstanding shares of Common Stock as reported on
Borrower’s most recently filed Form 10-Q or Form 10-K.

A24.          
“Market Price” means the Conversion
Factor multiplied by the average of the three (3) lowest Closing Bid Prices in
the twenty (20) Trading Days immediately preceding the applicable date of
measurement.

A25.          
“Minor Default” means any Event of
Default that is not a Major Default or a Fundamental Default.

A26.          
“Optional Prepayment Liquidated Damages
Amount” means an amount equal to the difference between (a) the product of
(i) the number of shares of Common Stock obtained by dividing (1) the
applicable Optional Prepayment Amount by (2) the Lender Conversion Price as of
the date Borrower delivered the applicable Optional Prepayment Amount to
Lender, multiplied by (ii) the Closing Trade Price of the Common Stock on the
date Borrower delivered the applicable Optional Prepayment Amount to Lender,
and (b) the applicable Optional Prepayment Amount paid by Borrower to Lender.
For illustration purposes only, if the applicable Optional Prepayment Amount
were $50,000.00, the Lender Conversion Price as of the date the Optional
Prepayment Amount was paid to Lender was equal to $0.75 per share of Common
Stock, and the Closing Trade Price of a share of Common Stock as of such date
was equal to $1.00, then the Optional Prepayment Liquidated Damages Amount
would equal $16,666.67 computed as follows: (a) $66,666.67 (calculated as (i) (1)
$50,000.00 divided by (2) $0.75 multiplied by (ii) $1.00) minus (b) $50,000.00.

A27.          
“Trading Day” shall mean any day on which
the Common Stock is traded or tradable for any period on the Common Stock’s
principal market, or on the principal securities exchange or other securities
market on which the Common Stock is then being traded.

Attachment 1 to Convertible Promissory Note, Page 4

EXHIBIT A

TYPENEX CO-INVESTMENT, LLC

303 East Wacker Drive, Suite 1040

Chicago, Illinois 60601

	Homeland Resources Ltd.

    Attn: Thomas Campbell, CEO 

    9120 Double Diamond Parkway, H#269 

    Reno, Nevada 89521	 Date:
__________________ 

LENDER
CONVERSION NOTICE

The
above-captioned Lender hereby gives notice to Homeland
Resources Ltd., a Nevada corporation (the “Borrower”),
pursuant to that certain Convertible Promissory Note made by Borrower in favor
of Lender on January 22, 2015 (the “Note”), that Lender elects to
convert the portion of the Note balance set forth below into fully paid and
non-assessable shares of Common Stock of Borrower as of the date of conversion
specified below. Said conversion shall be based on the Lender Conversion Price
set forth below. In the event of a conflict between this Lender Conversion
Notice and the Note, the Note shall govern, or, in the alternative, at the
election of Lender in its sole discretion, Lender may provide a new form of
Lender Conversion Notice to conform to the Note. Capitalized terms used in this
notice without definition shall have the meanings given to them in the Note.

	 	A.

	Date of Conversion:    ____________

	 	B.

	Lender Conversion #:   ____________

	 	C.

	Conversion Amount:    ____________

	 	D.

	Lender Conversion Price:  _______________

	 	E.

	Lender Conversion Shares:  _______________ (C divided by D)

	 	F.

	Remaining Outstanding Balance of Note:  ____________*

* Subject to adjustments for corrections, defaults, interest and other
adjustments permitted by the Transaction Documents (as defined in the Purchase
Agreement), the terms of which shall control in the event of any dispute
between the terms of this Lender Conversion Notice and such Transaction
Documents.

$_________________
of the Conversion Amount converted hereunder shall be deducted from the
Installment Amount(s) relating to the following Installment Date(s):
__________________________________________.

	Please transfer the Lender Conversion
Shares electronically (via DWAC) to the following account:
	Broker:                                                

    DTC#:                                                  

    Account #:                                            

    Account Name:                                    	 Address:                                                         

                                                                               

                                                                               

To the extent
the Lender Conversion Shares are not able to be delivered to Lender
electronically via the DWAC system, deliver all such
certificated shares to Lender via reputable overnight
courier after receipt of this Lender Conversion Notice (by facsimile
transmission or otherwise) to:

                        _____________________________________

                        _____________________________________

                        _____________________________________

Exhibit A to Convertible Promissory Note, Page 1

Sincerely,

Lender:            

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs
Investments, Inc., its Manager

      By:                                                            

            John M. Fife, President

Exhibit A to Convertible Promissory Note, Page 2

EXHIBIT B

Homeland
Resources Ltd.

9120 Double Diamond Parkway, H#269

Reno, Nevada 89521

	Typenex Co-Investment, LLC  

    Attn: John Fife 

    303 East Wacker Dr., Suite 1040 

    Chicago, Illinois 60601	Date:
_____________

INSTALLMENT NOTICE

The
above-captioned Borrower hereby gives notice to Typenex Co-Investment, LLC, a Utah limited liability company (the “Lender”),
pursuant to that certain Convertible Promissory Note made by Borrower in favor
of Lender on January 22, 2015 (the
“Note”), of certain Borrower elections and certifications related to
payment of the Installment Amount of $_________________ due on ___________,
201_ (the “Installment Date”). In the event of a conflict between this
Installment Notice and the Note, the Note shall govern, or, in the alternative,
at the election of Lender in its sole discretion, Lender may provide a new form
of Installment Notice to conform to the Note. Capitalized terms used in this
notice without definition shall have the meanings given to them in the Note.

INSTALLMENT CONVERSION AND CERTIFICATIONS

AS OF THE INSTALLMENT DATE

	
A. 

	
INSTALLMENT CONVERSION

	 	A.

	Installment Date: ____________, 201_

	 	B.

	Installment Amount:     ____________

	 	C.

	Portion of Installment Amount Borrower elected to pay in cash: ____________

	 	D.

	Portion of Installment Amount to be converted into Common Stock: ____________ (B minus C)

	 	E.

	Installment Conversion Price:  _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of Installment Date)

	 	F.

	Installment Conversion Shares:  _______________ (D divided by E)

	 	G.

	Remaining Outstanding Balance of Note:  ____________ *

* Subject to adjustments for corrections, defaults, interest and other
adjustments permitted by the Transaction Documents (as defined in the Purchase
Agreement), the terms of which shall control in the event of any dispute
between the terms of this Installment Notice and such Transaction Documents.

	
B. 

	
EQUITY CONDITIONS CERTIFICATION

	1.

	Market Capitalization of the Common Stock:________________

(Check One)

	2.

	_________ Borrower herby certifies that no Equity Conditions Failure exists as of the Installment Date.

	3.

	_________ Borrower hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect thereto. The Equity Conditions Failure is as follows:

Exhibit B to Convertible Promissory Note, Page 1 

	 
	 
	 
	 

Sincerely,

Borrower:

HOMELAND RESOURCES LTD.

By:                                                       

  Name:                                                  

Title:                                                    

Exhibit B to Convertible Promissory Note, Page 2 

EXHIBIT C

Typenex
Co-Investment, LLC

303 East Wacker Drive, Suite 1040

Chicago, Illinois 60601

	Homeland Resources Ltd.  

    Attn: Thomas Campbell, CEO 

    9120 Double Diamond Parkway, H#269 

    Reno, Nevada 89521	Date:
__________________

TRUE-UP NOTICE

The
above-captioned Lender hereby gives notice to Homeland
Resources Ltd., a Nevada corporation (the “Borrower”), pursuant to that certain Convertible Promissory Note made by
Borrower in favor of Lender on January 22, 2015 (the “Note”), of True-Up Conversion Shares related to _____________, 201_ (the “Installment
Date”). In the event of a conflict between this True-Up Notice and the
Note, the Note shall govern, or, in the alternative, at the election of Lender
in its sole discretion, Lender may provide a new form of True-Up Notice to
conform to the Note. Capitalized terms used in this notice without definition
shall have the meanings given to them in the Note.

TRUE-UP CONVERSION SHARES AND CERTIFICATIONS

AS OF THE TRUE-UP DATE

	
1. 

	
TRUE-UP CONVERSION SHARES

	 	A.

	Installment Date: ____________, 201_

	 	B.

	True-Up Date: ____________, 201_

	 	C.

	Portion of Installment Amount Converted into Common Stock:            _____________

	 	D.

	True-Up Conversion Price:  _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of True-Up Date)

	 	E.

	True-Up Conversion Shares:  _______________ (C divided by D)

	 	F.

	Installment Conversion Shares Delivered: ________________

	 	G.

	True-Up Conversion Shares to be Delivered: ________________ (only applicable if E minus F is greater than zero)

	
2. 

	
EQUITY CONDITIONS CERTIFICATION (Section to be completed by Borrower)

	 	A.

	Market Capitalization of the Common Stock:________________

	 	(Check One)

	 	B.

	_________ Borrower herby certifies that no Equity Conditions Failure exists as of the applicable True-Up Date.

	 	C.

	_________ Borrower hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect thereto. The Equity Conditions Failure is as follows:

Exhibit C to Convertible Promissory Note, Page 1

	 
	 
	 
	 

Sincerely,

Lender:             

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs Investments,
Inc., its Manager

	 	      By:                                                      

	 	            John M. Fife, President

ACKNOWLEDGED
AND CERTIFIED BY:

Borrower:

HOMELAND RESOURCES LTD.

By:                                                       

Name:                                                  

Title:                                                    

Exhibit C to Convertible Promissory Note, Page 2Filed by Avantafile.com - Homeland Resources Ltd. - Exhibit 10.3

THIS WARRANT AND THE COMMON STOCK ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO HOMELAND RESOURCES LTD. THAT SUCH REGISTRATION IS NOT
REQUIRED.

HOMELAND RESOURCES LTD.

WARRANT TO PURCHASE SHARES OF COMMON STOCK

1.                 
Issuance. In
consideration of good and valuable consideration as set forth in the Purchase
Agreement (defined below), including without limitation the Purchase Price (as
defined in the Purchase Agreement), the receipt and sufficiency of which are
hereby acknowledged by HOMELAND
RESOURCES LTD., A NEVADA CORPORATION (“Company”); TYPENEX CO-INVESTMENT, LLC, A UTAH
LIMITED LIABILITY COMPANY, ITS SUCCESSORS AND/OR REGISTERED ASSIGNS (“Investor”),
is hereby granted the right to purchase at any time on or after the Issue Date
(as defined below) until the date which is the last calendar day of the month
in which the fifth anniversary of the Issue Date occurs (the “Expiration
Date”), 175,000 shares of fully paid and non-assessable shares (the “Warrant
Shares”) of Company’s common stock, par value $0.0001 per share (the “Common
Stock”), as such number may be adjusted from time to time pursuant to the
terms and conditions of this Warrant to Purchase Shares of Common Stock (this “Warrant”). 
This Warrant is being issued pursuant to the terms of that certain Securities
Purchase Agreement dated January 22, 2015, to which Company and Investor are
parties (as the same may be amended from time to time, the “Purchase
Agreement”).

Unless otherwise indicated herein, capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Purchase Agreement.

This Warrant was issued to Investor on January
22, 2015 (the “Issue Date”). For the avoidance of doubt, the Purchase Price constitutes payment
in full for this Warrant.

2.                 
Exercise of Warrant.

2.1.           
General.

(a)               
This Warrant is exercisable in whole or in part
at any time and from time to time commencing on the Issue Date and ending on
the Expiration Date. Such exercise shall be effectuated by submitting to
Company (either by delivery to Company or by email or facsimile transmission) a
completed and duly executed Notice of Exercise substantially in the form
attached to this Warrant as Exhibit A (the “Notice of Exercise”).
The date such Notice of Exercise is either faxed, emailed or delivered to
Company shall be the “Exercise Date,” provided that, if such exercise
represents the full exercise of the outstanding balance of the Warrant, Investor
shall tender this Warrant to Company within five (5) Trading Days thereafter,
but only if the Warrant Shares to be delivered pursuant to the Notice of
Exercise have been delivered to Investor as of such date.  The Notice of
Exercise shall be executed by Investor and shall indicate (i) the number of Warrant
Shares to be issued pursuant to such exercise, and (ii) if applicable (as
provided below), whether the exercise is a cashless exercise.

1

For purposes of this Warrant, the term “Trading
Day” means any day during which the principal market on which the Common
Stock is traded (the “Principal Market”) shall be open for business.

(b)              
Notwithstanding any other provision contained
herein or in any other Transaction Document  to the contrary, at any time prior
to the Expiration Date, Investor may elect a “cashless” exercise of this
Warrant for any Warrant Shares, in which event the Company shall issue to
Investor a number of Shares computed using the following formula:

X = Y (A‐B)

      A

	 	Where	X =	the number of Warrant Shares to be issued to Investor.
	 	 	 	 
	 	 	Y =	the number of Warrant Shares that the Investor elects to purchase under this Warrant (at the date of such calculation). 
	 	 	 	 
	 	 	A =	the Closing Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B =	Exercise Price (as adjusted to the date of such calculation).

For the purposes of this Warrant, the
following terms shall have the following meanings:

 “Closing Price” shall mean the 4:00
P.M. last sale price of the Common Stock on the Principal Market on the relevant Trading Day(s), as
reported by Bloomberg LP (or if that service is not then reporting the relevant
information regarding the Common Stock, a comparable reporting service of
national reputation selected by Investor and reasonably acceptable to Company)
for the relevant date.  

 “Exercise Price” shall mean $0.20 per share of Common Stock,
as the same may be adjusted from time to time pursuant to the terms and
conditions of this Warrant. 

 “Note” shall mean that certain Convertible Promissory Note issued by Company to Investor pursuant
to the Purchase Agreement, as the same may be amended from time to time, and including any promissory note(s) that replace or are exchanged
for such referenced promissory note.

 “Transaction Documents” or “Transaction
Document” shall have the meaning set forth in the Purchase Agreement.

“VWAP” shall mean the volume-weighted average price of the Common Stock on the
Principal Market for a particular Trading Day or set of Trading Days, as the
case may be, as reported by Bloomberg LP.

(c)               
If the Notice of Exercise form elects a “cash”
exercise (or if the cashless exercise referred to in the immediately preceding
subsection (b) is not available in accordance with the terms hereof), the
Exercise Price per share of Common Stock for the Warrant Shares shall be
payable, at the election of Investor, in cash or by certified or official bank
check or by wire transfer in accordance with instructions provided by Company
at the request of Investor.

(d)              
Upon the appropriate payment to Company, if any,
of the Exercise Price for the Warrant Shares, Company shall promptly, but in no
case later than the date that is three (3) Trading Days following the date the
Exercise Price is paid to Company (or with respect to a cashless exercise, the
date that is three 

2

(3) Trading Days following the Exercise Date) (the “Delivery
Date”), deliver or cause Company’s Transfer Agent to deliver the applicable
Warrant Shares electronically via the Deposit/Withdrawal at Custodian (“DWAC”)
system to the account designated by Investor on the Notice of Exercise.  If for
any reason Company is not able to so deliver the Warrant Shares via the DWAC
system, notwithstanding its best efforts to do so, such shall constitute a
breach of this Warrant (and thus an Event of Default under the Note), and
Company shall instead, on or before the applicable date set forth above in this
subsection, issue and deliver to Investor or its broker (as designated in the
Notice of Exercise), via reputable overnight courier, a certificate, registered
in the name of Investor or its designee, representing the applicable number of Warrant
Shares. For the avoidance of doubt, Company has not met its obligation to
deliver Warrant Shares within the required timeframe set forth above unless
Investor or its broker, as applicable, has actually received the Warrant Shares
(whether electronically or in certificated form) no later than the close of
business on the latest possible delivery date pursuant to the terms set forth
above.

(e)               
If Warrant Shares are delivered later than as
required under subsection (d) immediately above, Company agrees to pay, in
addition to all other remedies available to Investor in the Transaction
Documents, a late charge equal to the greater of (i) $500.00 and (ii) 2% of the
product of (1) the sum of the number of shares of Common Stock not issued
to Investor on a timely basis and to which Investor is entitled multiplied by
(2) the closing bid price of the Common Stock on the Trading Day immediately
preceding the last possible date which Company could have issued such shares of
Common Stock to Investor without violating this Warrant, per Trading Day until
such Warrant Shares are delivered (the “Late Fees”). Company shall pay
any Late Fees incurred under this subsection in immediately available funds
upon demand; provided, however, that, at the option of Investor (without
notice to Company), such amount owed may be added to the principal amount of
the Note.  Furthermore, in addition to any other remedies which may be
available to Investor, in the event that Company fails for any reason to effect
delivery of the Warrant Shares as required under subsection (d) immediately
above, Investor may revoke all or part of the relevant Warrant exercise by
delivery of a notice to such effect to Company, whereupon Company and Investor
shall each be restored to their respective positions immediately prior to the
exercise of the relevant portion of this Warrant, except that the Late Fees
described above shall be payable through the date notice of revocation or
rescission is given to Company. Finally, as liquidated damages in the event
Company fails to deliver any Warrant Shares to Investor for a period of ninety
(90) days from the Delivery Date, Investor may elect, in its sole discretion,
to stop the accumulation of the Late Fees as of such date and require Company
to pay to Investor a cash amount equal to (i) the total amount of all Late Fees
that have accumulated prior to the date of Investor’s election, plus (ii) the
product of the number of Warrant Shares deliverable to Investor on such date if
it were to exercise this Warrant with respect to the remaining number of Warrant
Shares as of such date multiplied by the Closing Price of the Common Stock on
the Delivery Date (the “Cash Settlement Amount”). At such time that
Investor makes an election to require Company to pay to it the Cash Settlement
Amount, such obligation of Company shall be a valid and binding obligation of
Company and shall for all purposes be deemed to be a debt obligation of Company
owed to Investor as of the date it makes such election. Upon Company’s payment
of the Cash Settlement Amount to Investor, the Warrant shall be deemed to have
been satisfied and Investor shall return the original Warrant to Company for cancellation.
In addition, and for the avoidance of doubt, even if Company could not deliver
the number of Warrant Shares deliverable to Investor if it were to exercise
this Warrant with respect to the remaining number of Warrant Shares on the date
of repayment due to the provisions of Section 2.2, the provisions of Section 2.2 will not apply with respect to Company’s
payment of the Cash Settlement Amount.

(f)               
Investor shall be deemed to be the holder of the
Warrant Shares issuable to it in accordance with the provisions of this Section
2.1 on the Exercise Date.

3

2.2.           
Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant
or the other Transaction Documents, if at any time Investor shall or would be
issued shares of Common Stock under any of the Transaction Documents, but such
issuance would cause Investor (together with its affiliates) to own a number of
shares exceeding 4.99% of the number of shares of Common Stock outstanding on
such date (the “Maximum Percentage”), Company must not issue to Investor
shares of the Common Stock which would exceed the Maximum Percentage. The
shares of Common Stock issuable to Investor that would cause the Maximum
Percentage to be exceeded are referred to herein as the “Ownership Limitation
Shares”. Company will reserve the Ownership Limitation Shares for the
exclusive benefit of Investor. From time to time, Investor may notify Company
in writing of the number of the Ownership Limitation Shares that may be issued
to Investor without causing Investor to exceed the Maximum Percentage. Upon
receipt of such notice, Company shall be unconditionally obligated to
immediately issue such designated shares to Investor, with a corresponding
reduction in the number of the Ownership Limitation Shares. Notwithstanding the
forgoing, the term “4.99%” above shall be replaced with “9.99%” at such time as
the Market Capitalization of the Common Stock is less than $10,000,000.00.
Notwithstanding any other provision contained herein, if the term “4.99%” is
replaced with “9.99%” pursuant to the preceding sentence, such change to
“9.99%” shall be permanent. For purposes of this Warrant, the term “Market
Capitalization of the Common Stock” shall mean the product equal to (A) the
average VWAP of the Common Stock for the immediately preceding fifteen (15)
Trading Days, multiplied by (B) the aggregate number of outstanding shares of
Common Stock as reported on Company’s most recently filed Form 10-Q or Form
10-K.  By written notice to Company, Investor may increase, decrease or waive
the Maximum Percentage as to itself but any such waiver will not be effective
until the 61st day after delivery thereof. The foregoing 61-day notice
requirement is enforceable, unconditional and non-waivable and shall apply to
all affiliates and assigns of Investor. 

3.                 
Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this
Warrant, Company will execute and deliver to Investor a new Warrant of like
tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall
thereupon become void.

4.                 
Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled
to any rights of a stockholder in Company, either at law or in equity, and the
rights of Investor with respect to or arising under this Warrant are limited to
those expressed in this Warrant and are not enforceable against Company except
to the extent set forth herein.

5.                 
Certain Adjustments.

5.1.           
Capital Adjustments.  If Company shall at any time prior to the expiration of this
Warrant subdivide the Common Stock, by split-up or stock split, or
otherwise, or combine its Common Stock, or issue additional shares of its
Common Stock as a dividend, the number of Warrant Shares issuable upon the
exercise of this Warrant shall forthwith be automatically increased
proportionately in the case of a subdivision, split or stock dividend, or
proportionately decreased in the case of a combination.  Appropriate
adjustments shall also be made to the Exercise Price and other applicable
amounts, but the aggregate purchase price payable for the total number of
Warrant Shares purchasable under this Warrant (as adjusted) shall remain the
same. Any adjustment under this Section 5.1 shall become effective
automatically at the close of business on the date the subdivision or
combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such dividend.

4

5.2.           
Reclassification, Reorganization and
Consolidation. In case of any reclassification,
capital reorganization, or change in the capital stock of Company (other than
as a result of a subdivision, combination, or stock dividend provided for in
Section 5.1 above), then Company shall make appropriate provision so that
Investor shall have the right at any time prior to the expiration of this
Warrant to purchase, at a total price equal to that payable upon the exercise
of this Warrant, the kind and amount of shares of stock and other securities
and property receivable in connection with such reclassification,
reorganization, or change by a holder of the same number of shares of Common
Stock as were purchasable by Investor immediately prior to such
reclassification, reorganization, or change.  In any such case appropriate
provisions shall be made with respect to the rights and interest of Investor so
that the provisions hereof shall thereafter be applicable with respect to any
shares of stock or other securities and property deliverable upon exercise
hereof, and appropriate adjustments shall be made to the purchase price per
Warrant Share payable hereunder, provided the aggregate purchase price shall
remain the same.

5.3.           
Notice of Adjustment. Without limiting any other provision contained herein, when any
adjustment is required to be made in the number or kind of shares purchasable
upon exercise of this Warrant, or in the Exercise Price, pursuant to the terms
hereof, Company shall promptly notify Investor of such event and of the number
of Warrant Shares or other securities or property thereafter purchasable upon
exercise of this Warrant.

6.                 
Certificate as to Adjustments. In each case of any adjustment or readjustment in the shares of
Common Stock issuable on the exercise of this Warrant, Company at its expense
will promptly cause its Chief Financial Officer or other appropriate designee
to compute such adjustment or readjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based, including a statement of the Exercise Price and the number of shares of
Common Stock to be received upon exercise of this Warrant, in effect
immediately prior to such adjustment or readjustment and as adjusted or
readjusted as provided in this Warrant. Company will forthwith mail a copy of
each such certificate to Investor and any Warrant Agent (as defined below)
appointed pursuant to Section 8 hereof.  Nothing in this Section 6 shall be
deemed to limit any other provision contained herein.

7.                 
Transfer to Comply with the Securities Act. This Warrant, and the Warrant Shares, have not been registered
under the 1933 Act. None of the Warrant Shares may be sold, transferred,
pledged or hypothecated without (a) an effective registration statement under
the 1933 Act relating to such security or (b) an opinion of counsel reasonably
satisfactory to Company that registration is not required under the 1933 Act; provided,
however, that the foregoing restrictions on transfer shall not apply to the
transfer of any security to an affiliate of Investor. Until such time as
registration has occurred under the 1933 Act, each certificate for this Warrant
and any Warrant Shares shall contain a legend, in form and substance
satisfactory to counsel for Company, setting forth the restrictions on transfer
contained in this Section 7. Any such transfer shall be accompanied by a
transferor assignment substantially in the form attached to this Warrant as Exhibit
B (the “Transferor Assignment”), executed by the transferor and the
transferee and submitted to Company. Upon receipt of the duly executed
Transferor Assignment, Company shall register the transferee thereon as the new
holder on the books and records of Company and such transferee shall be deemed
a “registered holder” or “registered assign” for all purposes hereunder, and
shall have all the rights of Investor.

8.                 
Warrant Agent.
Company may, by written notice to Investor, appoint an agent (a “Warrant
Agent”) for the purpose of issuing shares of Common Stock on the exercise
of this Warrant pursuant hereto, exchanging this Warrant 

5

pursuant hereto, and
replacing this Warrant pursuant hereto, or any of the foregoing, and thereafter
any such issuance, exchange or replacement, as the case may be, shall be made
at such office by such Warrant Agent.

9.                 
Transfer on Company’s Books. Until this Warrant is transferred on the books of Company, Company
may treat Investor as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

10.             
Notices.  Any
notice required or permitted hereunder shall be given in the manner provided in
the subsection titled “Notices” in the Purchase Agreement, the terms of which
are incorporated herein by reference.

11.             
Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument
in writing signed by the parties hereto. This Warrant, together with the
Purchase Agreement and all the other Transaction Documents, taken together,
contain the full understanding of the parties hereto with respect to the
subject matter hereof and thereof and there are no representations, warranties,
agreements or understandings with respect to the subject matter hereof and
thereof other than as expressly contained herein and therein.

12.             
Governing Law. 
This Warrant shall be governed by and interpreted in accordance with the laws
of the State of Utah, without giving effect to the principles thereof regarding
the conflict of laws. 

13.             
Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL
RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF
THE PARTIES HERETO BE TRIED BY JURY.  THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS
TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE,
LAW, RULE OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND
VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

14.             
Purchase Agreement; Arbitration of Disputes;
Calculation Disputes. This Warrant is subject to
the terms, conditions and general provisions of the Purchase Agreement and the
other Transaction Documents, including without limitation the Arbitration
Provisions set forth as an Exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculations, such
dispute will be resolved in the manner set forth in the Purchase Agreement.

15.             
Remedies.  The
remedies at law of Investor under this Warrant in the event of any default or
threatened default by Company in the performance of or compliance with any of
the terms of this Warrant are not and will not be adequate and, without limiting
any other remedies available to Investor in the Transaction Documents, at law
or equity, to the fullest extent permitted by law, such terms may be
specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms
hereof or otherwise.

16.             
Counterparts.
This Warrant may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.
Signatures delivered via facsimile or email shall be considered original
signatures for all purposes hereof.

6

17.             
Attorneys’ Fees. 
In the event of any arbitration, litigation or dispute arising from this
Warrant, the parties agree that the party who is awarded the most money shall
be deemed the prevailing party for all purposes and shall therefore be entitled
to an additional award of the full amount of the attorneys’ fees and
expenses paid by said prevailing party in connection with arbitration or
litigation without reduction or apportionment based upon the individual claims
or defenses giving rise to the fees and expenses. Nothing herein
shall restrict or impair an arbitrator’s or a court’s power to award fees and
expenses for frivolous or bad faith pleading.

18.             
Severability.
Whenever possible, each provision of this Warrant shall be interpreted in such
a manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be invalid or unenforceable in any
jurisdiction, such provision shall be modified to achieve the objective of the
parties to the fullest extent permitted and such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this
Warrant or the validity or enforceability of this Warrant in any other
jurisdiction. 

19.             
Time of the Essence. Time is expressly made of the essence with respect to each and
every provision of this Warrant.

20.             
Descriptive Headings.  Descriptive headings of the sections of this Warrant are inserted
for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

[Remainder of page intentionally left
blank; signature page follows]

7

IN WITNESS WHEREOF, Company has caused this Warrant to be duly
executed by an officer thereunto duly authorized as of the Issue Date.

	 	
COMPANY:

      HOMELAND RESOURCES LTD.

            /s/
        David St. James

        By:                                                                               

        Printed Name: David St. James

        Title:    Treasurer
  & Secretary

[Signature Page to Warrant]

EXHIBIT A

NOTICE OF EXERCISE OF WARRANT

	TO:	HOMELAND RESOURCES LTD.
ATTN: _______________
VIA FAX TO: (    )______________ EMAIL: ______________

The
undersigned hereby irrevocably elects to exercise the right, represented by the
Warrant to Purchase Shares of Common Stock dated as of January 22, 2015 (the “Warrant”),
to purchase                   shares of the common stock, $0.0001 par
value (“Common Stock”), of HOMELAND RESOURCES LTD., and tenders herewith
payment in accordance with Section 2 of the Warrant, as follows:

	_______

	CASH: $__________________________ = (Exercise Price x Warrant Shares)

	_______	Payment is being made by:
_____              enclosed check
_____              wire transfer
_____              other

	_______

	CASHLESS EXERCISE:

	 	                        Net number of Warrant Shares to be issued to Investor: ______*

* X = Y
(A‐B)

      A

	 	Where	X =	 the number of Warrant Shares to be
issued to Investor.
	 	 	 	 
	 	 	Y =	the number of Warrant Shares
that the Investor elects to purchase under this Warrant (at the date of such
calculation).
	 	 	 	 
	 	 	A =	 the
Closing Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B =	 Exercise Price (as adjusted to
the date of such calculation).

Capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to them in the Warrant.

It is the intention of Investor to comply with the provisions of
Section 2.2 of the Warrant regarding certain limits on Investor’s right to
receive shares thereunder. Investor believes this exercise complies with the
provisions of such Section 2.2. Nonetheless, to the extent that, pursuant to
the exercise effected hereby, Investor would receive more shares of Common
Stock than permitted under Section 2.2, Company shall not be obligated and
shall not issue to Investor such excess shares until such time, if ever, that
Investor could receive such excess shares without violating, and in full compliance
with, Section 2.2 of the Warrant.

As contemplated by the Warrant, this Notice of Exercise is being
sent by email or by facsimile to the fax number and officer indicated above.

  Exhibit A to Warrant, Page 1

If this Notice of Exercise represents the full exercise of the
outstanding balance of the Warrant, Investor will surrender (or cause to be
surrendered) the Warrant to Company at the address indicated above by express
courier within five (5) Trading Days after the Warrant Shares to be delivered
pursuant to this Notice of Exercise have been delivered to Investor.

To the extent the Warrant Shares are not able to be delivered to
Investor via the DWAC system, please deliver certificates representing the Warrant
Shares to Investor via reputable overnight courier after receipt of this Notice
of Exercise (by facsimile transmission or otherwise) to:

	 	                                    _____________________________________

	 	                                    _____________________________________

	 	                                    _____________________________________

Dated:  _____________________

___________________________
[Name of
Investor]

By:________________________

  Exhibit A to Warrant, Page 2

EXHIBIT B

FORM OF TRANSFEROR ENDORSEMENT
(To be signed only on transfer of the Warrant)

For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading “Transferees” the
right represented by the Warrant to Purchase Shares of Common Stock dated as of
January 22, 2015 (the “Warrant”) to purchase the percentage and number
of shares of common stock, $0.0001 par value (“Common Stock”), of
HOMELAND RESOURCES LTD. specified under the headings “Percentage Transferred”
and “Number Transferred,” respectively, opposite the name(s) of such person(s),
and appoints each such person attorney-in-fact to transfer the undersigned’s
respective right on the books of HOMELAND RESOURCES LTD. with full power of
substitution.

	Transferees	Percentage Transferred	Number Transferred

Dated:___________,
______

	 	                                                                        ______________________________

	 	[Transferor Name must conform to the name of Investor as specified on the face of the Warrant]

	 	                                                                        By: ___________________________

	 	                                                                        Name: _________________________

Signed in the
presence of:

_________________________
(Name)

ACCEPTED AND
AGREED:

_________________________
[TRANSFEREE]

By:
_______________________

Name:
_____________________

Exhibit B to Warrant, Page 1

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