Document:

alo-ex45_50.htm

EXHIBIT 4.5

 

SUPPLEMENTAL WARRANT INDENTURE

THIS SUPPLEMENTAL WARRANT INDENTURE dated as of the 25th day of May, 2018.

BETWEEN:

ALIO GOLD INC., a corporation incorporated under the laws of the Province of British Columbia 

(“Alio”)

AND:

COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company incorporated under the federal laws of Canada 

(the “Warrant Agent”)

WHEREAS Rye Patch Gold Corp. (“Rye Patch”) and the Warrant Agent entered into a warrant indenture dated as of January 31, 2018 (the “Warrant Indenture”) for the issuance of a maximum of 15,384,700 warrants (the “Rye Patch Warrants”) of Rye Patch;

AND WHEREAS on March 18, 2018, Alio and Rye Patch entered into an arrangement agreement (the “Arrangement”) whereby the parties agreed to implement a plan of arrangement under the provisions of the Business Corporations Act (British Columbia) whereby Alio acquired 100% of the outstanding common shares of Rye Patch (the “Rye Patch Shares”). Under the Arrangement, Rye Patch shareholders received 0.48 of an Alio common share (each whole share, an “Alio Share”) and $0.001 for each Rye Patch Share (the “Cash Consideration”);

AND WHEREAS upon and from the completion of the Arrangement on May 25, 2018 (the “Effective Date”), the number of Rye Patch Warrants held by a holder are deemed to have been exchanged without any further action by the holders of the Rye Patch Warrants for share purchase warrants (the “Adjusted Warrants”) of the Company on the basis of one Adjusted Warrant for every one Rye Patch Warrant, with each Adjusted Warrant being exercisable into 0.48 Alio Shares at an exercise price of $1.649 per Adjusted Warrant (being the exercise price of $1.65 per Rye Patch Warrant, minus the Cash Consideration);

AND WHEREAS Alio has agreed to execute and deliver this Supplemental Warrant Indenture to, among other things, evidence its agreement to assume the Warrants and deliver, upon valid exercise by a holder of the Warrants, the Alio Shares.

AND WHEREAS section 8.1 of the Warrant Indenture provides for the creation of a supplemental indenture to the Warrant Indenture in connection with, among other things, any adjustments resulting from the application of the provisions of Article 4 of the Warrant Indenture;

AND WHEREAS the parties hereto are therefore desirous of executing and delivering this supplemental warrant indenture which is a supplemental warrant indenture for the purposes of the Warrant Indenture (this “Supplemental Warrant Indenture”);

AND WHEREAS the 2nd, 3rd and 4th recital above are made as representations and statements of fact by Alio and not by the Warrant Agent.

NOW THEREFORE THIS SUPPLEMENTAL WARRANT INDENTURE WITNESSES that for good and valuable consideration mutually given and received, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed and declared as follows:

1.This Supplemental Warrant Indenture is supplemental to the Warrant Indenture and the Warrant Indenture shall henceforth be read in conjunction with this Supplemental Warrant Indenture and all the provisions of the Warrant Indenture, except only insofar as the same may be inconsistent with the express provisions hereof, shall apply and have the same effect as if all the provisions of the Warrant Indenture and of this Supplemental Warrant Indenture were contained in one instrument and the expressions used herein shall have the same meaning as is ascribed to the corresponding expressions in the Warrant Indenture.

2.On and after the date hereof, each reference to “the Warrant Indenture, as amended by this Supplemental Warrant Indenture”, “this Warrant Indenture”, “this Indenture”, “herein”, “hereby”, and similar references, and each reference to “the Warrant Indenture” in any other agreement, certificate, document or instrument relating thereto, shall mean and refer to the Warrant Indenture as amended hereby.  Except as is necessary to give effect to the terms of this Supplemental Warrant Indenture, all other terms and conditions of the Warrant Indenture shall remain in full force and unchanged. 

3.All references to “Rye Patch Gold Corp.” are replaced with “Alio Gold Inc.” 

4.All references to “TSX Venture Exchange” or “TSX-V” are replaced with “Toronto Stock Exchange” or “TSX”, as applicable. 

5.The second recital of the Warrant Indenture is deleted in its entirety and replaced with the following: 

“AND WHEREAS pursuant to this Indenture, each Warrant shall, subject to adjustment, entitle the holder thereof to acquire 0.48 of a Common Share (each whole Common Share, a “Warrant Share”) upon payment of the Exercise Price prior to the Expiry Time upon the terms and conditions herein set forth;”

6.Notwithstanding the provisions of Section 4.1(g) of the Warrant Indenture, the definition of “Exercise Price” in Section 1.1 of the Warrant Indenture is deleted in its entirety and replaced with the following:

““Exercise Price” at any time means the price at which 0.48 of a Warrant Share may be acquired by the exercise of a whole Warrant, which is initially $1.649 per Warrant, payable in immediately available Canadian funds, subject to adjustment in accordance with the provisions of Section 4.1;”

7.The reference to “up to 15,384,700 Common Shares” in the definition of “Warrants” in Section 1.1 of the Warrant Indenture is replaced with “up to 7,384,656 Common Shares”. 

8.The references to “one Warrant Share” in Sections 2.2(1) and 3.1 of the Warrant Indenture are replaced with “0.48 of a Warrant Share”. 

9.Section 9.14 of the Warrant Indenture is deleted in its entirety. 

10.The parties hereto agree that, upon and from 12:01 a.m. on the Effective Date (the “Effective Time”) of the Arrangement, each former holder of Rye Patch Warrants is deemed to be 

- 2 -

the holder of an equal number of Adjusted Warrants and is entitled to receive upon exercise of its Adjusted Warrants in lieu of each Rye Patch Share to which the holder would have been entitled upon such exercise prior to the Effective Time, for the same aggregate consideration payable therefor (less the Cash Consideration), 0.48 of an Alio Share for every Adjusted Warrant, subject to any further adjustments in accordance with the terms of the Warrant Indenture, and Alio hereby authorizes the Warrant Agent to deliver such Alio Shares on exercise of the Adjusted Warrants. The Adjusted Warrants shall otherwise continue to be governed by and subject to the terms of the Warrant Indenture.

11.Schedules “A”, “B” and “C” of the Warrant Indenture are deleted in their entirety and replaced with Schedules “A”, “B” and “C”, respectively, to this Supplemental Warrant Indenture. 

12.Alio hereby covenants, acknowledges and agrees that, as and from the date hereof, pursuant to section 8.2 of the Warrant Indenture, it shall be bound by the provisions of the Warrant Indenture as amended by this Supplemental Warrant Indenture and shall become liable for the due and punctual performance and observance of each and every covenant and condition contained in the Warrant Indenture to be performed and observed by Rye Patch.

13.Any noticed to be delivered to Rye Patch pursuant to the terms of the Warrant Indenture shall be delivered to Alio in accordance with procedures set out in Section 10.1 of the Warrant Indenture as follows:

To:

Alio Gold Inc. 

Suite 507, 700 West Pender St. 

Vancouver, British Columbia V6C 1G8

 

Attention: Greg McCunn

Email:Greg.McCunn@aliogold.com

With a copy to: 

Blake, Cassels & Graydon LLP

595 Burrard Street, P.O. Box 49314

Suite 2600, Three Bentall Centre 

Vancouver, British Columbia V7X 1L3

 

Attention:  Andrew McLeod

Email: Andrew.McLeod@blakes.com

 

14.The Warrant Indenture shall be and continue in full force and effect, unamended, except as provided herein, and Alio hereby confirms the Warrant Indenture in all other respects.

15.This Supplemental Warrant Indenture shall be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein and shall be binding upon the parties hereto and their respective successors and assigns; and

16.This Supplemental Warrant Indenture may be simultaneously executed in several counterparts, each of which when so executed shall be deemed to be and original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of execution shall be deemed to be dated as of the date first written above. 

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[Signature Page Follows]

Signature Page – Supplemental Warrant Indenture (Rye Patch Warrants)

IN WITNESS WHEREOF the parties hereto have executed this Supplemental Warrant Indenture.

 

ALIO GOLD INC.

By:“Colette Rustad”

Authorized Signatory

COMPUTERSHARE TRUST COMPANY OF CANADA

By:“Jill Dunn”

Authorized Signatory

By:“Ellis Amabel”

Authorized Signatory

Signature Page – Supplemental Warrant Indenture (Rye Patch Warrants)

SCHEDULE “A”

FORM OF WARRANT

THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE AT OR BEFORE 4:30 PM (TORONTO, ONTARIO TIME) ON JANUARY 31, 2020 (THE “EXPIRY DATE”), SUBJECT TO EARLIER EXPIRY TIME AS PROVIDED FOR HEREIN, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.

For all Warrants sold outside the United States and registered in the name of the Depository, also include the following legend:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO ALIO GOLD INC. (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.

For Warrants sold in the United States to non-QIB Purchasers or to or for the account or benefit of U.S. Persons or persons in the United States who are not QIB Purchasers, also include the following legends:

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR U.S. STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF ALIO GOLD INC. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY: (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH (1) RULE 144A OF THE U.S. SECURITIES ACT, IF AVAILABLE, TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”, AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT (“QUALIFIED INSTITUTIONAL BUYER”), THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE OFFER, SALE OR TRANSFER IS BEING MADE IN RELIANCE OF RULE 144A UNDER THE U.S. SECURITIES ACT, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (D) ABOVE OR AS MAY BE REQUIRED BY COMPUTERSHARE TRUST COMPANY OF CANADA (THE “WARRANT AGENT”), A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION AND THE WARRANT AGENT MUST FIRST BE PROVIDED TO SUCH EFFECT. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

 

THIS SECURITY MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON OR PERSON IN THE UNITED STATES AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY NOT BE DELIVERED TO AN ADDRESS IN THE UNITED STATES UNLESS THIS SECURITY AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT.

 

WARRANT 
To acquire Common Shares of 
ALIO GOLD INC. 
(existing under the laws of British Columbia, Canada)

		
	
Warrant

Certificate No. •
	
Certificate for • Warrants, each entitling the holder to acquire 0.48 of a Common Share (subject to adjustment as provided for in the Warrant Indenture (as defined below))

CUSIP 01627X132
ISIN CA01627X1327

 

THIS IS TO CERTIFY THAT, for value received,

	
	
 

(the “Warrantholder”) is the registered holder of the number of common share purchase warrants (the “Warrants”) of Alio Gold Inc. (the “Corporation”) specified above, and is entitled, on exercise of these Warrants upon and subject to the terms and conditions set forth herein and in the Warrant Indenture, to purchase at any time before the Expiry Time (as defined below) on January 31, 2020 (the “Expiry Date”) 0.48 of a fully paid and non-assessable common share without par value in the capital of the Corporation as constituted on the date hereof (each whole share, a “Common Share”) for each Warrant, subject to adjustment in accordance with the terms of the Warrant Indenture (as hereinafter defined). “Expiry Time” means 4:30 p.m. (Toronto, Ontario time) on the Expiry Date, provided that, if the Warrants are held by the Depository, such earlier time on the Expiry Date as may be required by the Depository pursuant to the Depository’s internal procedures.

The right to purchase Common Shares may only be exercised by the Warrantholder within the time set forth above by:

(a)duly completing and executing the exercise form (the “Exercise Form”) attached hereto; and

(b)surrendering this warrant certificate (the “Warrant Certificate”), with the Exercise Form to the Warrant Agent at the principal office of the Warrant Agent, in Vancouver, British Columbia, together with a certified cheque, bank draft or money order in the lawful money of Canada payable to or to the order of the Corporation in an amount equal to the purchase price of the Common Shares so subscribed for.

The surrender of this Warrant Certificate, the duly completed Exercise Form and payment as provided above will be deemed to have been effected only on personal delivery thereof to, or if sent by mail or other means of transmission on actual receipt thereof by, the Warrant Agent at its principal office as set out above.

Subject to adjustment thereof in the events and in the manner set forth in the Warrant Indenture hereinafter referred to, the exercise price payable for 0.48 of a Common Share upon the exercise of a Warrant shall be $1.649 (the “Exercise Price”).

Certificates for the Common Shares subscribed for will be mailed to the persons specified in the Exercise Form at their respective addresses specified therein or, if so specified in the Exercise Form, delivered to such persons at the office where this Warrant Certificate is surrendered.  If fewer Common Shares are purchased than the number that can be purchased pursuant to this Warrant Certificate, the holder hereof will be entitled 

 

to receive without charge a new Warrant Certificate in respect of the balance of the Common Shares not so purchased.  No fractional Common Shares will be issued upon exercise of any Warrant.

This Warrant Certificate evidences Warrants of the Corporation issued or issuable under the provisions of a warrant indenture (which indenture together with all other instruments supplemental or ancillary thereto is herein referred to as the “Warrant Indenture”) dated as of January 31, 2018 between the Corporation and Computershare Trust Company of Canada, as Warrant Agent, to which Warrant Indenture reference is hereby made for particulars of the rights of the holders of Warrants, the Corporation and the Warrant Agent in respect thereof and the terms and conditions on which the Warrants are issued and held, all to the same effect as if the provisions of the Warrant Indenture were herein set forth, to all of which the holder, by acceptance hereof, assents. Any capitalized term in this Warrant Certificate that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture. The Corporation will furnish to the holder, on request and without charge, a copy of the Warrant Indenture.

On presentation at the principal office of the Warrant Agent as set out above, subject to the provisions of the Warrant Indenture and on compliance with the reasonable requirements of the Warrant Agent, one or more Warrant Certificates may be exchanged for one or more Warrant Certificates entitling the holder thereof to purchase in the aggregate an equal number of Common Shares as is purchasable under the Warrant Certificate(s) so exchanged.

The Warrant Indenture contains provisions for the adjustment of the Exercise Price payable for each Common Share upon the exercise of Warrants and the number of Common Shares issuable upon the exercise of Warrants in the events and in the manner set forth therein.

The Warrant Indenture also contains provisions making binding on all holders of Warrants outstanding thereunder resolutions passed at meetings of holders of Warrants held in accordance with the provisions of the Warrant Indenture and instruments in writing signed by Warrantholders of Warrants entitled to purchase a specific majority of the Common Shares that can be purchased pursuant to such Warrants.  

Nothing contained in this Warrant Certificate, the Warrant Indenture or elsewhere shall be construed as conferring upon the holder hereof any right or interest whatsoever as a holder of Common Shares or any other right or interest except as herein and in the Warrant Indenture expressly provided.  In the event of any discrepancy between anything contained in this Warrant Certificate and the terms and conditions of the Warrant Indenture, the terms and conditions of the Warrant Indenture shall govern.

Warrants may only be transferred in compliance with the conditions of the Warrant Indenture on the register to be kept by the Warrant Agent in Vancouver, British Columbia, or such other registrar as the Corporation, with the approval of the Warrant Agent, may appoint at such other place or places, if any, as may be designated, upon surrender of this Warrant Certificate to the Warrant Agent or other registrar accompanied by a written instrument of transfer in form and execution satisfactory to the Warrant Agent or other registrar and upon compliance with the conditions prescribed in the Warrant Indenture and with such reasonable requirements as the Warrant Agent or other registrar may prescribe and upon the transfer being duly noted thereon by the Warrant Agent or other registrar.

The Warrants represented by this Warrant Certificate and the Common Shares issuable upon exercise hereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any applicable securities laws of any state of the United States.  The Warrants may not be exercised by, on behalf of, or for the account or benefit of, U.S. persons or persons in the United States and the Common Shares may not be delivered to an address in the United States, except pursuant to an exemption from the registration requirements of the U.S. Securities Act and in accordance with any applicable securities laws of any state of the United States after providing to the Corporation and the Warrant Agent such documentation as may be requested, including, if requested, a legal opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and the Warrant Agent to such effect; provided however, that holders that are either (i) “qualified institutional buyers” as defined 

 

under Rule 144A under the U.S. Securities Act or (ii) “accredited investors” as defined in Rule 501(a) of Regulation D under the U.S. Securities Act may exercise the Warrants by providing to the Corporation and the Warrant Agent an executed letter substantially in the form attached as Schedule ”C” to the Warrant Indenture. 

Time is of the essence hereof.

This Warrant Certificate will not be valid for any purpose until it has been countersigned by or on behalf of the Warrant Agent from time to time under the Warrant Indenture.

The parties hereto have declared that they have required that these presents and all other documents related hereto be in the English language.  Les parties aux présentes déclarent qu’elles ont exigé que la présente convention, de même que tous les documents s’y rapportant, soient rédigés en anglais.

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be duly executed as of _____________________________.

		
	
 

 

 

Countersigned and Registered by:

COMPUTERSHARE TRUST COMPANY OF CANADA

 

By:  _______________________

           Authorized Signatory

 

Date:  _______________________
	
ALIO GOLD INC.

 

By:_______________________

Authorized Signatory

 

FORM OF TRANSFER

TO:Computershare Trust Company of Canada

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to ____________________________________________________________________________________________________________________________________________________________(print name and address) a total of ____________________ Warrants represented by this Warrant Certificate and hereby irrevocably constitutes and appoints ____________________ as its attorney with full power of substitution to transfer the said securities on the appropriate register of the  Warrant Agent.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

☐the transfer is being made to the Corporation;

	
☐
	
a declaration to the effect set forth in Schedule “B” to the Warrant Indenture is being delivered to the Warrant Agent concurrently with this Transfer Form;

	
☐
	
the transfer is being made pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) to a person who the seller reasonably believes is a “qualified institutional buyer”, as defined in Rule 144A under the U.S. Securities Act (“Qualified Institutional Buyer”), that is purchasing for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance of Rule 144A under the U.S. Securities Act and such transfer is in compliance with any applicable securities laws of any state of the United States; or

	
☐
	
the holder has delivered to the Corporation and the Warrant Agent, an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and the Warrant Agent that the transfer is in compliance with the U.S. Securities Act and any applicable securities laws of any state of the United States.

In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and any applicable state securities laws, in which case the undersigned has furnished to the Corporation and the Warrant Agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and the Warrant Agent to such effect. 

☐If transfer is to a U.S. Person or person in the United States, check this box.

DATED this ____ day of_________________, 20____.

 

			
	
SPACE FOR GUARANTEES OF SIGNATURES (BELOW)
	
)
	
 

	
 
	
)

)

)
	
 

__________________________________

Signature of Transferor

	
_________________________________

Guarantor’s Signature/Stamp 
	
)

)
	
__________________________________

Name of Transferor

 

 

REASON FOR TRANSFER – For US Residents only (where the individual(s) or corporation receiving the securities is a US resident).  Please select only one (see instructions below). 

 ☐Gift                      ☐Estate               ☐Private Sale              ☐Other (or no change in ownership)

Date of Event (Date of gift, death or sale):               Value per Warrant on the date of event:

                 ☐CAD OR  ☐ USD

 

CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever.  All securityholders or a legally authorized representative must sign this form.  The signature(s) on this form must be guaranteed in accordance with the transfer agent’s then current guidelines and requirements at the time of transfer.  Notarized or witnessed signatures are not acceptable as guaranteed signatures.  As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards):

	
 
	
•
	
Canada and the USA:  A Medallion Signature Guarantee obtained from a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP).  Many commercial banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee Program.  The Guarantor must affix a stamp bearing the actual words “Medallion Guaranteed”, with the correct prefix covering the face value of the certificate.

	
 
	
•
	
Canada:  A Signature Guarantee obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust.  The Guarantor must affix a stamp bearing the actual words “Signature Guaranteed”, sign and print their full name and alpha numeric signing number.  Signature Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse Populaires unless they are members of a Medallion Signature Guarantee Program. For corporate holders, corporate signing resolutions, including certificate of incumbency, are also required to accompany the transfer, unless there is a “Signature & Authority to Sign Guarantee” Stamp affixed to the transfer (as opposed to a “Signature Guaranteed” Stamp) obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a Medallion Signature Guarantee with the correct prefix covering the face value of the certificate.  

	
 
	
•
	
Outside North America:  For holders located outside North America, present the certificates(s) and/or document(s) that require a guarantee to a local financial institution that has a corresponding Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee Program.  The corresponding affiliate will arrange for the signature to be over-guaranteed.

OR

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever.  The 

 

signature(s) on this form must be guaranteed by an authorized officer of Royal Bank of Canada, Scotia Bank or TD Canada Trust whose sample signature(s) are on file with the transfer agent, or by a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP).  Notarized or witnessed signatures are not acceptable as guaranteed signatures.  The Guarantor must affix a stamp bearing the actual words: “SIGNATURE GUARANTEED”, “MEDALLION GUARANTEED” OR “SIGNATURE & AUTHORITY TO SIGN GUARANTEE”, all in accordance with the transfer agent’s then current guidelines and requirements at the time of transfer.  For corporate holders, corporate signing resolutions, including certificate of incumbency, will also be required to accompany the transfer unless there is a “SIGNATURE & AUTHORITY TO SIGN GUARANTEE” Stamp affixed to the Form of Transfer obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a “MEDALLION GUARANTEED” Stamp affixed to the Form of Transfer, with the correct prefix covering the face value of the certificate.

REASON FOR TRANSFER – FOR US RESIDENTS ONLY

Consistent with US IRS regulations, Computershare is required to request cost basis information from US securityholders.  Please indicate the reason for requesting the transfer as well as the date of event relating to the reason.  The event date is not the day in which the transfer is finalized, but rather the date of the event which led to the transfer request (i.e. date of gift, date of death of the securityholder, or the date the private sale took place). 

 

EXERCISE FORM

TO:ALIO GOLD INC.

 

AND TO:Computershare Trust Company of Canada

 

The undersigned holder of the Warrants evidenced by this Warrant Certificate hereby exercises ______________ (A) Warrants for the right to acquire ______________ (B) Common Shares ((A) multiplied by 0.48, rounded down to the nearest whole Common Share and subject to adjustment) of Alio Gold Inc.

 

Total Exercise Price Payable: _______________________________________________
((A) multiplied by $1.649, computed to the nearest whole cent, subject to adjustment)

The undersigned hereby exercises the right of such holder to be issued, and hereby subscribes for, Common Shares that are issuable pursuant to the exercise of such Warrants on the terms specified in such Warrant Certificate and in the Warrant Indenture.

The undersigned hereby acknowledges that the undersigned is aware that the Common Shares received on exercise may be subject to restrictions on resale under applicable securities legislation.

Any capitalized term herein that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.

As at the time of exercise hereunder, the undersigned represents, warrants and certifies as follows:

 

	
☐
	
(A)The undersigned holder (i) at the time of exercise of the Warrants and execution and delivery of this Exercise Form is not in the United States (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)); (ii) is not a U.S. person (as defined in Regulation S under the U.S. Securities Act), (iii) is not exercising the Warrants for the account or benefit of a U.S. person or person in the United States; and (iv) the delivery of the underlying Warrant Shares will not be to an address in the United States; OR

 

	
☐
	
(B)The undersigned holder is a QIB Purchaser and is a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act and has previously executed and delivered  the Qualified Institutional Buyer Letter to the Corporation in connection with the original issuance of the Warrants ; OR

 

	
☐
	
(C)The undersigned holder is a Qualified Institutional Buyer or is an “accredited investor” as defined in Rule 501(a) of Regulation D under the U.S. Securities Act and is providing concurrently with this Exercise Form an executed letter substantially in the form attached as Schedule ”C” to the Warrant Indenture (a copy of which may be obtained by contacting the Warrant Agent); OR

 

	
☐
	
(D)The undersigned holder has delivered to the Corporation and the Warrant Agent an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing and in form and substance reasonably satisfactory to the Corporation and the Warrant Agent) to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States is available.

 

 

The undersigned holder understands that unless boxes (A) or (B) above is checked the certificate representing the Common Shares will bear a legend restricting transfer under the U.S. Securities Act and applicable securities laws of any state of the United States unless an exemption from registration requirements is available.

It is understood that the Corporation and Computershare Trust Company of Canada may require evidence to verify the foregoing representation. 

The undersigned hereby irrevocably directs that the said Common Shares be issued, registered and delivered as follows:

					
	
Name(s) in Full and Social Insurance Number(s) (if applicable)
	
 
	
Address(es)
	
 
	
Number of Common Shares

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

 

Please print full name in which certificates representing the Common Shares are to be issued.  If any Common Shares are to be issued to a person or persons other than the registered holder, the registered holder must pay to the Warrant Agent all exigible transfer taxes or other government charges, if any, and the Form of Transfer must be duly executed.

Once completed and executed, this Exercise Form must be mailed or delivered to Computershare Trust Company of Canada, c/o General Manager, Corporate Trust.

DATED this ____day of _____, 20__.

			
	
 
	
)
	
 

	
 
	
)
	
 

	
Witness
	
)
	
 (Signature of Warrantholder, to be the same as

  appears on the face of this Warrant Certificate)

	
 
	
)
	
 

	
 
	
)
	
 Name of Registered Warrantholder

☐Please check if the certificates representing the Common Shares are to be delivered at the office where this Warrant Certificate is surrendered, failing which such certificates will be mailed to the address set out above.  Certificates will be delivered or mailed as soon as practicable after the surrender of this Warrant Certificate to the Warrant Agent.

 

 

SCHEDULE “B”

FORM OF DECLARATION FOR REMOVAL OF LEGEND

TO:Computershare Trust Company of Canada
Computershare Investor Services Ltd.

as registrar and transfer agent for the Warrants and Common Shares issuable upon exercise of the Warrants of Alio Gold Inc.

 

The undersigned (a) acknowledges that the sale of the securities of Alio Gold Inc. (the “Corporation”) to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and (b) certifies that (1) the undersigned is not an affiliate of the Corporation as that term is defined in the U.S. Securities Act, (2) the offer of such securities was not made to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (B) the transaction was executed in, on or through the facilities of the Toronto Stock Exchange or any other designated offshore securities market as defined in Regulation S under the U.S. Securities Act and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States, (3) neither the seller nor any affiliate of the seller nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, (4) the sale is bona fide and not for the purpose of “washing off” the resale restrictions imposed because the securities are “restricted securities” (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act.  Terms used herein have the meanings given to them by Regulation S.

 

DATED this ____day of _____, 20__.

					
	
 
	
 
	
 
	
(Name of Seller)

	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
Title: 

 

Affirmation by Seller’s Broker-Dealer
(required for sales under (b)2(B) above)

 

We have read the foregoing representations of our customer, _________________________________ (the “Seller”) dated _______________________, with regard to our sale, for such Seller’s account, of the _________________ securities, represented by certificate number ______________ (the “Securities”), of Alio Gold Inc. and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange or other designated offshore securities market and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities.  Terms used herein have the meanings given to them by Regulation S.

 

____________________________________________________

Name of Firm

 

By:________________________________________________

Authorized officer

Date:_______________________________________________

 

 

SCHEDULE “C”

FORM OF U.S. PURCHASER CERTIFICATION UPON EXERCISE OF WARRANTS

Alio Gold Inc.

 

- and to –

 

Computershare Trust Company of Canada, as Warrant Agent

 

Dear Sirs:

 

The undersigned is delivering this letter in connection with the purchase of common shares (the “Common Shares”) of Alio Gold Inc., a corporation existing under the laws of British Columbia (the “Corporation”) upon the exercise of warrants of the Corporation (“Warrants”), issued under the warrant indenture dated as of January 31, 2018, as amended, between the Corporation and Computershare Trust Company of Canada.

 

The undersigned hereby confirms that:

	
 
	
(a)
	
it is either (check one):

	
 
	
□
	
an “accredited investor” as defined in  Rule 501 (a) of Regulation D under the United States Securities Act of 1933 (the “U.S. Securities Act”); or

	
 
	
□
	
a qualified institutional buyer as defined in Rule 144A under the U.S. Securities Act (“Qualified Institutional Buyer”).

	
 
	
(b)
	
if an institution, we are authorized to consummate the purchase of the Common Shares;

	
 
	
(c)
	
it is purchasing the Common Shares for its own account;

	
 
	
(d)
	
it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of purchasing the Common Shares;

	
 
	
(e)
	
it is not acquiring the Common Shares with a view to any resale, distribution or other disposition of the Common Shares in violation of United States federal or state securities laws;

	
 
	
(f)
	
it acknowledges that it has had access to such financial and other information as it deems necessary in connection with its decision to exercise the Warrants and purchase the Common Shares; 

	
 
	
(g)
	
it acknowledges that it has not purchased the Warrants and is not purchasing the Common Shares as a result of any “general solicitation” or “general advertising” (as such terms are used in Regulation D under the U.S. Securities Act), including, but not limited to, advertisements, articles, notices or other communications published on the internet or in any newspaper, magazine or similar media, or broadcast over radio, television or the internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising or as a result of any public offering within the meaning of Section 4(2) of the U.S. Securities Act;

 

	
 
	
(h)
	
it understands that the Common Shares are being offered in a transaction not involving any public offering within the United States within the meaning of the U.S. Securities Act, that Warrants have not been and the Common Shares have not been and will not be registered under the U.S. Securities Act and that the offer and sale of the Common Shares is being made in reliance upon exemptions from the registration requirements of the U.S. Securities Act and similar exemptions from all applicable state securities laws;

	
 
	
(i)
	
it understands that any Common Shares acquired by it will be in the form of definitive physical certificates (unless it is a Qualified Institutional Buyer) and that such certificates will bear a legend as set forth in Section 3.3(3) of the Warrant Indenture reflecting the fact that we will not offer, sell, pledge or otherwise transfer, directly or indirectly, any of the Common Shares unless (i) the sale is to the Corporation; (ii) the sale is made outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act and in accordance with local laws and regulations, (C) in compliance with (i) Rule 144A, if available to the seller, to a person who the seller reasonably believes is Qualified Institutional Buyer that is purchasing for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance of Rule 144A, or (D) in another transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws of the United States and in the case of (D), the seller furnishes to the Corporation and its transfer agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and its transfer agent to such effect;

	
 
	
(j)
	
it consents to the Corporation making a notation on its records or giving instructions to any transfer agent of the Common Shares in order to implement the restrictions on transfer set out and described above;

	
 
	
(k)
	
it understands and acknowledges that the Corporation is not obligated to file and has no present intention of filing with the United States Securities and Exchange Commission or with any state securities administrator any registration statement in respect of resales of the Common Shares in the United States;

	
 
	
(l)
	
it understands and agrees that (i) there may be material tax consequences related to an acquisition, holding, disposition or exercise of any of the Common Shares; (ii) it is the sole responsibility of the purchaser to determine and assess such tax consequences as may apply to the purchaser’s particular circumstances; and (iii) the Corporation gives no opinion and makes no representation with respect to the tax consequences under United States federal, state, local or Canadian Federal or Provincial or other tax laws of an acquisition, holding or disposition of the Common Shares, including the tax consequences of the Corporation likely being classified a “passive foreign investment company,” as such term is defined under the United States Internal Revenue Code of 1986, as amended (the “Code”);

	
 
	
(m)
	
it understands and acknowledges that the Corporation (i) is not obligated to remain a “foreign issuer” within the meaning of Regulation S under the U.S. Securities Act, (ii) may not, at the time the Common Shares are resold by the undersigned or at any other time, be a foreign issuer, and (iii) may engage in one or more transactions which could cause the Corporation not to be a foreign issuer and if the Corporation is not a foreign issuer at the time of any sale or other transfer of such Common Shares pursuant to Rule 904 of Regulation S under the U.S. Securities Act, the certificates representing such Common Shares may continue to bear the legend described above;

 

	
 
	
(n)
	
it understands and acknowledges that (i) if the Corporation is deemed to have been at any time previously an issuer with no or nominal operations and no or nominal assets other than cash and cash equivalents, Rule 144 under the U.S. Securities Act may not be available for resales of the Common Shares and (ii) the Corporation is not obligated to make Rule 144 under the U.S. Securities Act available for resales of the Common Shares; and

	
 
	
(o)
	
it represents and warrants that the funds representing the aggregate exercise price which will be advanced by it to the Corporation upon exercise of the Warrants will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) and it acknowledges that the Corporation may in the future be required by law to disclose its name and other information relating to the subscription agreement and the its subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act.

We acknowledge that you will rely upon our confirmations, acknowledgements and agreements set forth herein, and we agree to notify you promptly in writing if any of our representations or warranties herein ceases to be accurate or complete.

DATED this ____day of _____, 20__.

				
	
 
	
 
	
(Name of U.S. Purchaser)

	
By:
	
 

	
 
	
Name:

	
 
	
Title: 

	
 
	
Address:alo-ex46_49.htm

 

EXHIBIT 4.6

 

CREDIT AGREEMENT

 

DATED AS OF NOVEMBER 13, 2019

 

Between:

 

ALIO GOLD INC.
as Borrower

 

- and -

ALIO GOLD (US) INC.,
RYE PATCH MINING US INC., and

FLORIDA CANYON MINING INC. 

as Guarantors

 

- and -

 

SPROTT PRIVATE RESOURCE LENDING II (COLLECTOR), LP
as Lender

 

 

 

 

 

 

 

 

CAN: 31475467.16

i

TABLE OF CONTENTS

 

		
	
Article 1 INTERPRETATION
	
- 1 -

	
Definitions
	
- 1 -

	
Interpretation Not Affected by Headings
	
- 14 -

	
Statute References
	
- 14 -

	
Permitted Encumbrance
	
- 14 -

	
Currency
	
- 14 -

	
Use of the Words “Best Knowledge”, "continuing" and "indebtedness"
	
- 14 -

	
Non-Business Days
	
- 15 -

	
Governing Law
	
- 15 -

	
Paramountcy
	
- 15 -

	
Enurement
	
- 15 -

	
Interpretation
	
- 15 -

	
Time of Essence
	
- 15 -

	
Accounting Terms
	
- 15 -

	
Schedules
	
- 16 -

	
Article 2 THE FACILITY
	
- 16 -

	
The Facility
	
- 16 -

	
Non-Revolving
	
- 16 -

	
Term
	
- 16 -

	
Use of Proceeds
	
- 16 -

	
Interest
	
- 16 -

	
Minimum Interest
	
- 17 -

	
Computations
	
- 17 -

	
No Set-off
	
- 17 -

	
Time and Place of Payments
	
- 17 -

	
Record of Payments
	
- 18 -

	
Article 3 SHARE PURCHASE RIGHT
	
- 18 -

	
Partner Alignment Shares
	
- 18 -

	
Article 4 prePayment
	
- 18 -

	
Principal Repayments
	
- 18 -

	
Voluntary Prepayment
	
- 18 -

	
Mandatory Prepayments of the Facility
	
- 19 -

	
Article 5 SECURITY
	
- 19 -

	
Security Documents
	
- 19 -

	
Registration of the Security
	
- 19 -

	
After Acquired Property and Further Assurances
	
- 20 -

	
Article 6 CONDITIONS precedent to advance
	
- 20 -

	
Conditions Precedent to Advance
	
- 20 -

	
Waiver
	
- 22 -

	
Article 7 REPRESENTATIONS AND WARRANTIES
	
- 22 -

	
Representations and Warranties of the Credit Parties
	
- 22 -

	
Acknowledgement
	
- 29 -

	
Survival and Inclusion
	
- 29 -

	
Article 8 COVENANTS OF THE CREDIT PARTIES
	
- 29 -

	
General Covenants
	
- 29 -

	
Negative Covenants of the Credit Parties
	
- 33 -

	
Continued Listing
	
- 34 -

	
To Pay Lender’s Fees and Expenses
	
- 34 -

	
Comply with Continuous Disclosure Obligations
	
- 35 -

	
To Pay Additional Amounts
	
- 35 -

	
Further Assurances
	
- 35 -

	
Lender May Perform Covenants
	
- 35 -

	
Article 9 DEFAULT AND ENFORCEMENT
	
- 36 -

CAN: 31475467.16

ii

		
	
Events of Default
	
- 36 -

	
Acceleration on Default
	
- 38 -

	
Waiver of Default
	
- 38 -

	
Enforcement by the Lender
	
- 38 -

	
Application of Moneys
	
- 39 -

	
Persons Dealing with Lender
	
- 39 -

	
Lender Appointed Attorney
	
- 39 -

	
Remedies Cumulative
	
- 39 -

	
Set-Off
	
- 39 -

	
Article 10 NOTICES
	
- 40 -

	
Notice to the Borrower
	
- 40 -

	
Notice to the Lender
	
- 40 -

	
Waiver of Notice
	
- 40 -

	
Article 11 indemnities
	
- 40 -

	
General Indemnity
	
- 40 -

	
Environmental Indemnity
	
- 41 -

	
Action by Lender to Protect Interests
	
- 41 -

	
Article 12 miscellaneous
	
- 42 -

	
Amendments and Waivers
	
- 42 -

	
No Waiver; Remedies Cumulative
	
- 42 -

	
Survival
	
- 42 -

	
Benefits of Agreement
	
- 42 -

	
Binding Effect; Assignment; Syndication
	
- 42 -

	
Maximum Return
	
- 43 -

	
Judgment Currency
	
- 44 -

	
Entire Agreement
	
- 44 -

	
Joint and Several
	
- 44 -

	
Payments Set Aside
	
- 44 -

	
Severability
	
- 44 -

	
Counterparts and facsimile
	
- 45 -

Schedule A  Project

Schedule B  Security Documents

Schedule C  Shares and ownership interests

Schedule D  Material contracts

Schedule E  Authorizations to be obtained on or prior to the Closing Date

Schedule F  Compliance Certificate

Schedule G  Royalty Obligations 

Schedule H  Hall Lease Consent

CAN: 31475467.16

 

CREDIT AGREEMENT

THIS AGREEMENT made as of the 13th day of November, 2019

BETWEEN:

alio gold inc., a company organized and existing under the laws of the Province of British Columbia

(hereinafter referred to as the “Borrower”)

AND:

ALIO GOLD (US) INC., a company organized and existing under the laws of the Province of British Columbia

RYE PATCH MINING US INC., a company organized and existing under the laws of the State of Nevada

FLORIDA CANYON MINING INC., a company organized and existing under the laws of the State of Delaware

 (hereinafter referred to as the “Guarantors”)

AND:

SPROTT PRIVATE RESOURCE LENDING II (COLLECTOR), LP, a limited partnership organized and existing under the laws of the Province of Ontario

(hereinafter referred to as the “Lender”)

WHEREAS the Borrower has requested, and the Lender has agreed, to establish a $15,000,000 principal amount senior secured credit facility on and subject to the terms and conditions herein set forth.

NOW THEREFORE THIS CREDIT AGREEMENT WITNESSES that for good and valuable consideration, the receipt and sufficiency of which are acknowledged by each of the parties, the parties agree as follows:

Article 1
INTERPRETATION

Definitions

	
 
	
1.1
	
In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

“1999 Muller Royalty” has the meaning attributed to such term in Subsection (d) of the definition of Royalty Obligations;

“Able & York Royalty” has the meaning attributed to such term in Subsection (a) of the definition of Royalty Obligations;

“Advance” means the advance of the Facility to be made hereunder;

“Affiliate” has the meaning given thereto in the Securities Act;

CAN: 31475467.16

“Agreement”, “this Agreement”, “hereto”, “hereby”, “hereunder”, “hereof”, “herein” and similar expressions refer to this credit agreement, as amended, modified, supplemented, restated or replaced from time to time, and not to any particular Article, section, subsection, paragraph, clause, subdivision or other portion hereof, and include any and every supplemental agreement; and the expressions “Article”, “Section”, “subsection” and “paragraph” followed by a number mean and refer to the specified Article, section, subsection or paragraph of this Agreement;

“Amount” or “Amount Payable” includes the principal amount advanced or deemed to be advanced and any other amount payable hereunder or under any of the Facility Documents;

“Applicable Law” means, at any time, with respect to any Person, property, transaction, event or other matter, as applicable, all laws, rules, statutes, regulations, treaties, orders, judgments and decrees, and all official requests, directives, rules, guidelines, orders, policies, practices and other requirements of any Governmental Authority relating or applicable at such time to such Person, property, transaction, event or other matter, and also includes any interpretation thereof by any Person having jurisdiction over it or charged with its administration or interpretation; 

“Applicable Securities Legislation” means all applicable securities laws of each of the Reporting Jurisdictions and the respective rules and regulations under such laws together with applicable published fee schedules, prescribed forms, policy statements, national or multilateral instruments, orders, blanket rulings and other applicable regulatory instruments of the securities regulatory authorities in any of the Reporting Jurisdictions;

“Authorization” means any authorization, consent, approval, resolution, licence, permit, concession, exemption, filing, notarization or registration;

“Borrower” means Alio Gold Inc., a company organized and existing under the laws of the Province of British Columbia, and its successors and permitted assigns;

“Borrower’s Auditors” means, at any time, a firm of chartered accountants duly appointed as auditors of the Borrower; 

“Business Day” means any day other than Saturday, Sunday or a statutory holiday when banks are not open in Toronto, Ontario or Vancouver, British Columbia;

“Capital Lease” means, with respect to a Person, a lease or other arrangement in respect of personal property that is required to be classified and accounted for as a capital lease obligation on a balance sheet of the Person in accordance with IFRS;

“Capital Lease Obligation” means, with respect to a Person, the obligation of the Person to pay rent or other amounts under a Capital Lease and for the purposes of this definition, the amount of such obligation at any date shall be the capitalized amount of such obligation at such date as determined in accordance with IFRS;

“Caterpillar Consent” means a consent to assignment executed by Caterpillar Financial Services Corporation in connection with the master services agreement dated as of October 2, 2019 between Caterpillar Financial Services Corporation and Florida Canyon Mining, Inc. in form and substance satisfactory to the Lender; 

“Certificate of the Borrower” means an instrument signed in the name of the Borrower and without personal liability by any Director or senior officer of the Borrower, certifying the matters specified therein;

“Change of Control” means the occurrence of any of the following events:

CAN: 31475467.16

	
 
	
(a)
	
there is a report filed with any securities commission or securities regulatory authority in Canada, disclosing that any offeror (as such term is defined in section 1.1 of Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids) has acquired beneficial ownership (within the meaning of the Securities Act) of, or the power to exercise control or direction over, or securities convertible into, any Voting Shares, that together with the offeror’s securities (as such term is defined in section 1.1 of Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids) in relation to any Voting Shares, would constitute Voting Shares representing more than 50% of the total voting power attached to all Voting Shares then outstanding; 

	
 
	
(b)
	
there is consummated any amalgamation, consolidation, statutory arrangement (involving a business combination) or merger of the Borrower (1) in which the Borrower is not the continuing or surviving corporation or (2) pursuant to which any Voting Shares would be reclassified, changed or converted into or exchanged for cash, securities or other property, other than (in each case) an amalgamation, consolidation, statutory arrangement or merger of the Borrower in which the holders of the Voting Shares immediately prior to the amalgamation, consolidation, statutory arrangement or merger have, directly or indirectly, more than 50% of the Voting Shares of the continuing or surviving corporation immediately after such transaction; or

	
 
	
(c)
	
any Person or group of Persons shall succeed in having a sufficient number of its nominees elected as Directors of the Borrower such that such nominees, when added to any existing Directors after such election who were nominees of or Affiliates or related Persons of such Person or group of Persons, will constitute a majority of the Directors;

“Closing Date” means November 13, 2019, or such other date as the Lender and the Borrower may agree in writing;

“Code” means the Internal Revenue Code of 1986;

“Commitment” means the aggregate principal amount of up to $15,000,000, which the Lender has agreed to make available to the Borrower in accordance with and subject to the terms of this Agreement;

“Common Shares” means common shares in the capital of the Borrower as such shares exist at the close of business on the date of execution and delivery of this Agreement;

“Compliance Certificate” means a certificate in the form attached as Schedule F;

“Constating Documents” means (i) with respect to a corporation, its articles of incorporation, amalgamation or continuance, notice of articles (if applicable), constitution, or other similar documents by which it is established under its governing corporate legislation as a corporation, and its by-laws, if any, and (ii) with respect to any other Person which is an artificial body other than a corporation, the organization and governance documents of such Person; in each case as amended and supplemented from time to time;

“Contingent Liabilities” means, with respect to a Person, any agreement, undertaking or arrangement by which the Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in a debtor, or otherwise to assure a creditor against loss) the obligation, debt or other liability of any other Person or guarantees the payment of dividends or other distributions upon the shares of any Person.  The amount of any Contingent Liability will, subject to any limitation contained therein, be deemed to be the outstanding principal amount (or maximum principal amount, if larger) of the obligation, debt or other liability to which the Contingent Liability is related;

CAN: 31475467.16

“Control” of any Person means:

	
 
	
(a)
	
the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

	
 
	
(i)
	
cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of such Person; or

	
 
	
(ii)
	
appoint or remove all, or the majority, of the directors or other equivalent officers of such Person; or

	
 
	
(iii)
	
give directions with respect to the operating and financial policies of such Person with which the directors or other equivalent officers of such Person are obliged to comply; and/or

	
 
	
(b)
	
the holding beneficially of more than 50% of the issued share capital of such Person;

“Credit Parties” means collectively, the Borrower and the Guarantors, and “Credit Party” means any one of them;

“Current Assets” means, at any time, all current assets on the consolidated balance sheet of the Borrower, determined as of such time in accordance with IFRS, except that the value of all gold inventories contained on leach pads will be fixed at 80% of the value of such gold inventories shown on the consolidated balance sheet of the Borrower;

“Current Liabilities” means, at any time, all current liabilities on the consolidated balance sheet of the Borrower, less the current portion of the outstanding Facility Indebtedness classified as current liabilities on the Borrower’s balance sheet, determined as of such time in accordance with IFRS;

“Default” means an Event of Default or any event or circumstance specified in Section 9.1 which would (with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing) be an Event of Default;

“Director” means a director of the Borrower for the time being and “Directors” means the board of directors of the Borrower or, whenever duly empowered, a committee of the board of directors of the Borrower, and reference to action by the Directors means action by the directors as a board or action by such a committee of the board as a committee;

“Disclosure Letter” means the disclosure letter dated as of the date of this Agreement and issued by the Borrower to the Lender concurrently with the execution and delivery of this Agreement, making certain disclosures and providing certain assurances to the Lender in connection with this Agreement;

“Disclosure Record” means all information circulars, prospectuses (including preliminary prospectuses), annual information forms, offering memoranda, financial statements, material change reports and news releases filed by the Borrower with the Exchanges and all securities regulatory authorities in each Reporting Jurisdiction during the 12 months preceding the date hereof;

“Distribution” includes with respect to any Credit Party (i) any dividend or other distribution on issued shares or any other Equity Interest of such Credit Party, (ii) any purchase, redemption or retirement of any issued share, warrant or other Equity Interest or any other option or right to acquire any share or other Equity Interest of such Credit Party or (iii) any payment whether as consulting fees, management fees or otherwise to any Related Party of such Credit Party;

CAN: 31475467.16

“Encumbrance” means, with respect to any Person, any mortgage, debenture, pledge, hypothec, lien, charge, claim, deed of trust, royalty, assignment by way of security, hypothecation, security interest, conditional sales agreement, lease or title retention agreement, financing statement or other registration or recording in any public registry system affecting any of such Person’s property or other encumbrance, granted or permitted by such Person or arising by operation of law, in respect of any of such Person’s property, or any consignment by way of security or capital lease of property by such Person or consignee or lessee, as the case may be, or any other security agreement, trust or arrangement having the effect of security for the payment of any debt, liability or other obligation, and “Encumbrances”, “Encumbrancer”, “Encumber” and “Encumbered” have corresponding meanings;

“Environmental Laws” means all federal, provincial, state, municipal, national, county, local and other laws, statutes, codes, ordinances, by-laws, rules, regulations, policies, guidelines, certificates, approvals, permits, consents, directions, standards, judgments, orders and other Authorizations, as well as common law, civil law and other jurisprudence or authority, in each case, domestic or foreign, having the force of law at any time relating in whole or in part to any Environmental Matters and any permit, order, direction, certificate, approval, consent, registration, licence or other Authorization of any kind held or required to be held in connection with any Environmental Matters;

“Environmental Matters” means:

	
 
	
(a)
	
any condition or circumstance relating to: (i) the generation, storage, discharge, or emission of any pollution, noise, odour, hazardous materials, or contaminants; (ii) the preservation, protection, or alteration of any environmental media, including but not limited to air, water, and land; the protection of human health, plants, animals, other living organisms and cultural resources; and

	
 
	
(b)
	
the presence of any waste, toxic or hazardous substance, contaminant or dangerous good or the deposit, release or discharge of any thereof into environmental media;

“Equity Interests” means, with respect to any Person, shares in the capital of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or acquisition from such Person of shares in the capital of (or other ownership or profit interests in) such Person, securities convertible into or exchangeable for shares in the capital of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or non-voting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination;

“ERISA” means the Employee Retirement Income Security Act of 1974;

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of section 414(b) or (c) of the Code (and sections 414(m) and (o) of the Code for purposes of provisions relating to section 412 of the Code);

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; (f) any event or condition which constitutes grounds under section 4042 of ERISA 

CAN: 31475467.16

for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of sections 430, 431 and 432 of the Code or sections 303, 304 and 305 of ERISA; (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under section 4007 of ERISA, upon the Borrower or any ERISA Affiliate; or (i) a failure by the Borrower or any ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules in respect of a Pension Plan, whether or not waived, or the failure by the Borrower or any ERISA Affiliate to make any required contribution to a Multiemployer Plan;

“Event of Default” has the meaning attributed to such term in Section 9.1;

“Exchanges” means the TSX and the NYSE American and each of their respective successors thereto, and “Exchange” means either of them, as applicable;

“Existing Caterpillar Indebtedness” means all Capital Lease Obligations outstanding pursuant to any equipment lease existing as of the date hereof between the Borrower and Caterpillar Financial Services Corporation;

“Facility” has the meaning attributed to such term in Section 2.1;

“Facility Documents” means this Agreement, the Security Documents, the Guarantees, the Disclosure Letter and all other agreements, certificates, instruments, notices and documents delivered or to be delivered by the Credit Parties hereunder or thereunder, each as amended, modified, supplemented, restated or replaced from time to time;

“Facility Indebtedness” means all present and future debts, liabilities and obligations of the Borrower and the Guarantors to the Lender under and in connection with this Agreement and all other Facility Documents, including all Amounts Payable and all fees and other money payable or owing from time to time pursuant to the terms of this Agreement or any of the other Facility Documents;

“Facility Repayment Test” has the meaning attributed to such term in Section 8.1(r);

“Financial Assistance” means, with respect to any Person, any loan, guarantee, indemnity, assurance, acceptance, extension of credit, loan purchase, share purchase, equity or capital contribution, investment or other form of direct or indirect financial assistance or support of any other Person or any obligation (contingent or otherwise);

“Financial Instrument Obligations” means, with respect to any Person, obligations arising under: 

	
 
	
(a)
	
interest rate swap agreements, forward rate agreements, floor, cap or collar agreements, futures or options, insurance or other similar agreements or arrangements, or any combination thereof, entered into or guaranteed by the Person where the subject matter thereof is interest rates or the price, value or amount payable thereunder is dependent or based upon interest rates or fluctuations in interest rates in effect from time to time (but excluding non-speculative conventional floating rate indebtedness);

	
 
	
(b)
	
currency swap agreements, cross-currency agreements, forward agreements, floor, cap or collar agreements, futures or options, insurance or other similar agreements or arrangements, or any combination thereof, entered into or guaranteed by the Person where the subject matter thereof is currency exchange rates or the price, value or amount payable thereunder is dependent or based upon currency exchange rates or fluctuations in currency exchange rates in effect from time to time; and 

	
 
	
(c)
	
any agreement for the making or taking of any commodity (including gold, coal, natural gas, oil and electricity), swap agreement, floor, cap or collar agreement or commodity 

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future or option or other similar agreement or arrangement, or any combination thereof, entered into or guaranteed by the Person where the subject matter thereof is any commodity or the price, value or amount payable thereunder is dependent or based upon the price or fluctuations in the price of any commodity; 

or any other similar transaction, including any option to enter into any of the foregoing, or any combination of the foregoing, in each case to the extent of the net amount due or accruing due by the Person under the obligations determined by marking the obligations to market in accordance with their terms; 

“Fiscal Quarter” means a fiscal quarter of the Borrower;

“Foreign Government Scheme or Arrangement” has the meaning attributed to such term in Section 7.1(dd);

“Foreign Plan” has the meaning attributed to such term in Section 7.1(dd);

“Florida Canyon” means Florida Canyon Mining Inc., a corporation incorporated and existing under the laws of the State of Delaware, USA;

“Governmental Authority” means each national, state, provincial, county, municipal or other such governmental or public authority, including their authorized administrative bodies, courts, tribunals, commissions and agents, which have legal jurisdiction over a Person or a matter relevant to this Agreement;

“Guarantees” means the guarantees to be provided by the Guarantors in connection with the Facility, as amended, modified, supplemented, restated or replaced from time to time;

“Guarantors” means, collectively, Alio Gold (US) Inc., Rye Patch Mining US Inc. and Florida Canyon,‎ and their respective successors and permitted assigns, and “Guarantor” means either one of them;

“Hazardous Materials” has the meaning attributed to such term in Section 7.1(qq);

“Hall Lease Consent” means the lessor’s consent in the form attached as Schedule H;

“IFRS” means international financial reporting standards, approved by the International Accounting Standards Board or any successor thereto (“IASB”), as at the date on which any calculation or determination is required to be made, provided that, in accordance with such international financial reporting standards, where the IASB includes a recommendation concerning the treatment of any accounting matter, such recommendation shall be regarded as the only international financing reporting standard;

“Indebtedness” means, with respect to a Person, without duplication:

	
 
	
(a)
	
all obligations of the Person for borrowed money, including debentures, notes or similar instruments and other financial instruments and obligations with respect to bankers’ acceptances and contingent reimbursement obligations relating to letters of credit;

	
 
	
(b)
	
all Financial Instrument Obligations of the Person;

	
 
	
(c)
	
all Capital Lease Obligations and Purchase Money Obligations of the Person;

	
 
	
(d)
	
all obligations to pay the deferred and unpaid purchase price of property or services, which purchase price is due and payable more than six months after the date of placing such property or service or taking delivery at the completion of such services; 

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(e)
	
all indebtedness of any other Person secured by an Encumbrance on any asset of the Person;

	
 
	
(f)
	
all obligations to repurchase, redeem or repay any shares of such Person that fall due prior to the Maturity Date; and

	
 
	
(g)
	
all Contingent Liabilities of the Person with respect to obligations of another Person if such obligations are of the type referred to in paragraphs (a) to (f) above; 

“Indemnified Parties” has the meaning attributed to such term in Section 11.1;

“Interest Period” means, initially, the calendar month of November, 2019 and thereafter each successive calendar month; provided that any Interest Period which would otherwise end on a day which is not a London Banking Day shall be extended to end on the next London Banking Day, unless that next London Banking Day falls in the next calendar month, in which case that Interest Period shall be shortened to end on the preceding London Banking Day; 

“Lender” means Sprott Private Resource Lending II (Collector), LP, an Ontario limited partnership, and every successor Person thereto and assignee;

“Lender’s Counsel” means DLA Piper (Canada) LLP and, at any time, any other legal counsel retained by the Lender in the relevant jurisdiction to the matter in question;

“LIBOR” means, in respect of an Interest Period, the rate of interest expressed as a percentage per annum on the basis of a 360 day year for deposits in U.S. Dollars in the London interbank market for a period equal to three (3) months that appears on the Reuters LIBOR 01 Page or the ICE Benchmark Administration (or any successor source from time to time) as of 11:00 a.m. (London time) on the first day of the relevant Interest Period; 

“London Banking Day” means a day on which dealings in U.S. Dollar deposits by and between banks may be transacted in the London interbank market; 

“Macquarie Bank UCC Registration” has the meaning attributed to such term in Section 8.1(z);

“Material Adverse Effect” means, when used with reference to any event or circumstance, any event or circumstance which has, had, or could reasonably be expected to have a material adverse effect on (or in the case of paragraph (e) below, to result in or require a material adverse change or amendment to):

	
 
	
(a)
	
the business, operations, prospects, results of operations, assets, liabilities (contingent or otherwise), capitalization, condition (financial or otherwise) or cash flows of any of the Credit Parties, including but not limited to any event or circumstance relating to or resulting from conditions affecting the mining industry as a whole, general economic, financial, currency exchange, securities, credit or commodity market conditions;

	
 
	
(b)
	
the ability of the Credit Parties or any of them to perform any of their obligations under this Agreement or any of the other Facility Documents; 

	
 
	
(c)
	
the validity or enforceability of this Agreement or any other Facility Document;

	
 
	
(d)
	
the priority or ranking of any Encumbrance granted pursuant to any of the Security Documents or any of the rights or remedies of the Lender thereunder or under any other Facility Document; or

	
 
	
(e)
	
the Model or any projections, forecasts or other information contained therein,

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in each case as determined by the Lender;

“Material Contract” means any Project Document which (i) is prudent or necessary for the continuing operation and development of the Project and (ii) contains terms and conditions which, if amended or, upon breach, termination, non-renewal or non-performance, could be expected to have a Material Adverse Effect, all as more particularly described on Schedule D hereto;

“Maturity Date” means October 31, 2022;

“Maverix” means Maverix Metals (Nevada) Inc.;

“Minimum Interest Amount” means an amount of interest equal to the sum of all interest payments calculated under Section 2.6 on the full principal amount of the Facility over a 12 month period, whether or not such principal amount has been outstanding for such duration;

“Model” means a financial model containing the Project mining plan and related financial projections, along with the Borrower’s financial forecast for all other revenues, costs and expenses to be incurred by the Borrower or any of its Subsidiaries, in a form and substance acceptable to the Lender, as delivered and accepted by the Lender on or before the Closing Date, a copy of which was provided by the Credit Parties’ Canadian counsel to the Lender’s Counsel by email on November 7, 2019, as updated from time to time as required herein;

“Multiemployer Plan” means any employee benefit plan of the type described in section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions;

“Partner Alignment Shares” has the meaning attributed to such term in Section 3.1;

“PBGC” means the Pension Benefit Guaranty Corporation;

“Pension Act” means the Pension Protection Act of 2006;

“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, section 412 of the Code and section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, section 412, 430, 431, 432 and 436 of the Code and sections 302, 303, 304 and 305 of ERISA;

“Pension Plan” means any employee pension benefit plan (other than a Multiemployer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under section 412 of the Code;

“Permitted Disposal” means any sale, lease, license, transfer or other disposal:

	
 
	
(a)
	
of inventory in the ordinary course of business;

	
 
	
(b)
	
made by a Credit Party to another Credit Party, provided that if the disposing Credit Party had granted an Encumbrance in favour of the Lender over the asset or property subject to such disposal, equivalent security over such asset or property shall be granted in favour of the Lender by the acquiring Credit Party, in each case, on terms and conditions satisfactory to the Lender;

	
 
	
(c)
	
of obsolete or redundant vehicles, plant and equipment for cash;

	
 
	
(d)
	
made with the prior written consent of the Lender;

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(e)
	
of fixed assets where the proceeds of disposal are used to purchase replacement assets comparable or superior as to type, value and quality; and

	
 
	
(f)
	
of assets (other than shares) for cash where the consideration receivable (when aggregated with the consideration receivable for any other sale, lease, license, transfer or disposal not otherwise allowed under paragraphs (a) to (e) above), does not exceed $1,000,000 in the aggregate during the term of the Facility; 

“Permitted Encumbrances” means with respect to any Credit Party:

	
 
	
(a)
	
any Encumbrance granted pursuant to the Security Documents;

	
 
	
(b)
	
any Encumbrance or deposit under workers’ compensation, social security, ERISA or similar legislation or in connection with bids, tenders, leases or contracts or to secure related public or statutory obligations, surety and appeal bonds where required by law;

	
 
	
(c)
	
any builders’, mechanics’, materialman’s, carriers’, warehousemen’s and landlords’ liens and privileges, in each case, which relate to obligations not yet due or delinquent;

	
 
	
(d)
	
any Encumbrance for Taxes, assessments, unpaid wages or governmental charges or levies for the then current year and not at the time due and delinquent;

	
 
	
(e)
	
any right reserved to or vested in any Governmental Authority by the terms of any lease, licence, franchise, grant, claim or permit held or acquired by any Credit Party, or by any statutory provision, to terminate the lease, licence, franchise, grant, claim or permit or to purchase assets used in connection therewith or to require annual or other periodic payments as a condition of the continuance thereof; 

	
 
	
(f)
	
any Encumbrance created or assumed by any Credit Party in favour of a public utility when required by the utility in connection with the operations of such Credit Party that do not in the aggregate detract from the value of any of the Secured Assets or impair their use in the operation of the business of such Credit Party;

	
 
	
(g)
	
any reservations, limitations, provisos and conditions expressed in original grants from any Governmental Authority; 

	
 
	
(h)
	
any applicable municipal and other Governmental Authority restrictions affecting the use of land or the nature of any structures which may be erected thereon, any minor encumbrance, such as easements, rights-of-way, servitudes or other similar rights in land granted to or reserved by other Persons, rights-of-way for sewers, electric lines, telegraph and telephone lines, oil and natural gas pipelines and other similar purposes, zoning or other restrictions applicable to the use of real property by any Credit Party or title defects, in each case, that do not detract from the value of the property or impair its use in the operation of the business of any Credit Party;

	
 
	
(i)
	
any Encumbrance that secures Permitted Indebtedness referred to under Subsection (c) of the definition of “Permitted Indebtedness” provided that such Encumbrance shall be subject to the inter-creditor agreement referred to in such Subsection (c);

	
 
	
(j)
	
any Encumbrance that secures Permitted Indebtedness referred to under Subsection (h) and (i) of the definition of “Permitted Indebtedness” provided that such Encumbrance is limited to the mobile equipment which was acquired with the proceeds of such Permitted Indebtedness; 

	
 
	
(k)
	
any Royalty Obligations; and 

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(l)
	
customary rights of set-off in favour of a financial institution with respect to deposits maintained by it, arising under the general terms and conditions of such deposits, provided always, that such deposit is not intended to provide collateral security to such financial institution;

“Permitted Indebtedness” means:

	
 
	
(a)
	
Indebtedness under this Agreement;

	
 
	
(b)
	
Indebtedness comprised of amounts owed to trade creditors and accruals in the ordinary course of business, which are either not overdue or, if disputed and in that case whether or not overdue, are being contested in good faith by such Credit Party by appropriate proceedings diligently conducted, and provided always that: (i) the failure to pay such Indebtedness could not be expected to result in a Material Adverse Effect and (ii) the aggregate amount of such Indebtedness does not exceed $1,000,000; 

	
 
	
(c)
	
any Indebtedness approved by the Lender and, if applicable, permitted pursuant to the terms of an inter-creditor agreement, in form and substance satisfactory to the Lender providing for the full subordination and postponement of such indebtedness and any security therefor to the Facility Indebtedness and the Encumbrances granted under the Security Documents, executed and delivered in favour of the Lender;

	
 
	
(d)
	
any unsecured inter-company Indebtedness between any Credit Parties; 

	
 
	
(e)
	
any guarantee or indemnity in respect of Permitted Indebtedness; 

	
 
	
(f)
	
any other Indebtedness which the Lender agrees in writing is Permitted Indebtedness for the purposes of this Agreement; 

	
 
	
(g)
	
any Indebtedness arising under a foreign exchange transaction for spot or forward delivery entered into in connection with protection against fluctuation in currency rates where that foreign exchange exposure (and not a foreign exchange transaction for investment or speculative purposes), which Indebtedness does not exceed $1,000,000 in the aggregate for the Credit Parties at any time; 

	
 
	
(h)
	
any Indebtedness under Capital Leases and Purchase Money Obligations (excluding permitted Existing Caterpillar Indebtedness), which Indebtedness does not exceed $25,000,000 in the aggregate for the Credit Parties at any time; 

	
 
	
(i)
	
the Existing Caterpillar Indebtedness in an aggregate amount not exceeding $4,000,000; 

	
 
	
(j)
	
any Indebtedness not permitted by the preceding paragraphs (a) to (h) and the outstanding amount of which does not exceed $1,000,000 in aggregate for the Credit Parties at any time. 

“Permitted Royalty Payments” has the meaning attributed to such term in Section 7.1(ii);

“Person” means any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, or corporation with or without share capital, body corporate, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, government or Governmental Authority or entity, however designated or constituted;

“PPSA” means the Personal Property Security Act (British Columbia);

“Project” means the Florida Canyon gold mine located in Nevada, as more particularly described on Schedule A hereto; 

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“Project Document” means any agreement, contract, license, permit, instrument, lease, easement or other document which (i) deals with or is related to the construction, operation or development of the Project, and (ii) is executed from time to time by or on behalf of or is otherwise made or issued in favour of any Credit Party;

“Purchase Money Obligation” means, with respect to a Person, Indebtedness of the Person issued, incurred or assumed to finance all or part of the cost of acquiring any mobile asset;

“Related Party” means, in respect of any Credit Party, (a) a Person which alone or in combination with others holds a number of securities or other Equity Interests, or has contractual rights, sufficient to affect the Control of such Credit Party, (b) a Person who beneficially owns, directly or indirectly, voting securities of such Credit Party or who exercises Control or direction over voting securities of such Credit Party or a combination of both carrying more than 10% of the voting rights attached to all voting securities of such Credit Party for the time being outstanding, (c) a director or senior officer of a Credit Party or Related Party of any Credit Party, or (d) an Affiliate of any of the foregoing;

“Relevant Jurisdiction” means, from time to time, any jurisdiction in which any Credit Party has any property or asset, or in which it carries on business and, for the purposes of this Agreement, includes (i) British Columbia, Canada and (ii) Nevada, USA;

“Reportable Event” means any of the events set forth in section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived;

“Reporting Jurisdictions” means all of the jurisdictions in Canada in which the Borrower is a “reporting issuer”, including as of the date hereof, the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador;

“RIFLP” means Resource Income Fund, L.P.;

“RIFLP Royalty” has the meaning attributed to such term in Subsection (b) of the definition of Royalty Obligations;

“Royalty Obligations” means, in connection with the Project: 

	
 
	
(a)
	
a 2.5% net smelter royalty held by Able & York Holdings, LLC, as evidenced by an assignment of royalty interest dated November 18, 2015 and recorded December 23, 2015 (the “Able & York Royalty”); 

	
 
	
(b)
	
a 3.25% net smelter royalty granted to RIFLP, pursuant to a net between Standard Gold Mining, Inc., Florida Canyon and RIFLP, as amended by an amendment to net smelter returns royalty agreement dated October 8, 2013, recorded October 8, 2013, as assigned by RIFLP to Maverix pursuant to an assignment agreement dated February 17, 2017 between RIFLP and Maverix, recorded on March 31, 2017 (the “RIFLP Royalty”);

	
 
	
(c)
	
a 1.0% net smelter royalty granted to Muller Investments, pursuant to a memorandum of exploration and mining lease dated February 8, 2002 and recorded December 30, 2002;

	
 
	
(d)
	
a 1.0% net smelter royalty granted to Muller Investments, pursuant to a memorandum of exploration and mining lease dated December 8, 1998 and recorded February 11, 1999 (the “1999 Muller Royalty”);

	
 
	
(e)
	
2% - 4% net profits granted to Asarco Inc., pursuant to an assignment agreement dated August 30, 1988 and recorded September 12, 1988;

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(f)
	
1% - 2% net profits granted to Asarco Inc., pursuant to an assignment agreement dated August 30, 1988 and recorded September 12, 1988;

	
 
	
(g)
	
10% net profits granted to McCullough, pursuant to a deed with reservation of mineral royalty dated May 7, 1985 and recorded May 20, 1985; and

	
 
	
(h)
	
a 2.5% net smelter royalty granted to Hannah S. Hall, pursuant to an agreement and mining lease dated May 3, 1983 and recorded May 7, 1983,

each as more particular shown on Schedule G;

“Secured Assets” means the undertaking, properties and assets now owned, leased or hereafter acquired or leased by the Credit Parties or any of them, which shall be secured by the Security Documents;

“Securities Act” means the Securities Act (British Columbia);

“Security Documents” means, collectively, the agreements, instruments and documents listed in Schedule B hereto and delivered pursuant to Article 5 of this Agreement, as amended, modified, supplemented, restated or replaced from time to time;

“SEDAR” means the System for Electronic Document Analysis and Retrieval;

“Subscription Right” has the meaning attributed to such term in Section 3.1;

“Subsidiary” means with respect to any Person (the “parent”) at any date, (i) any corporation, limited liability company, association or other business entity which the parent and/or one or more subsidiaries of the parent Controls, (ii) any partnership, (x) the sole general partner or the managing general partner of which is the parent and/or one or more subsidiaries of the parent or (y) the only general partners of which are the parent and/or one or more subsidiaries of the parent and (iii) any other Person that is otherwise Controlled by the parent and/or one or more subsidiaries of the parent;

“Taxes” means all taxes, assessments, rates, levies, royalties, imposts, deductions, withholdings, dues, duties, fees and other charges of any nature, including any interest, fines, penalties or other liabilities with respect thereto, imposed, levied, collected, withheld or assessed by any Governmental Authority (of any jurisdiction), and whether disputed or not;

“Term Sheet” means the term sheet for credit facility dated September 27, 2019 issued by the Lender to and accepted by the Borrower, as amended, modified, supplemented, restated or replaced from time to time;

“TSX” means the Toronto Stock Exchange;

“Unrestricted Cash” means, at any time, cash denominated in CAD$ or $ at a bank and credited to an account in the name of the Borrower with an account bank satisfactory to the Lender, and to which the Borrower is alone beneficially entitled, provided that:

	
 
	
(a)
	
such cash is repayable on demand;

	
 
	
(b)
	
the repayment of such cash is not contingent on the prior discharge of any Indebtedness of any Person whatsoever or on the satisfaction of any other condition; 

	
 
	
(c)
	
there is no Encumbrance over such cash or account (other than an Encumbrance in favour of the Lender pursuant to the Security Documents); and

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(d)
	
such cash is freely and immediately available to the Borrower; 

“Voting Shares” means shares of capital stock of any class of the Borrower (or a continuing or surviving corporation of the Borrower) carrying voting rights under all circumstances, provided that for the purposes of such definition, shares which only carry the right to vote conditionally on the happening of any event shall not be considered Voting Shares, whether or not such event shall have occurred, nor shall any shares be deemed to cease to be Voting Shares solely by reason of a right to vote accruing to shares of another class or classes by reason of the happening of such event; and

‎“Working Capital Ratio” means the ratio of Current Assets to Current Liabilities.‎

Interpretation Not Affected by Headings

	
 
	
1.2
	
The division of this Agreement into articles, sections, subsections and paragraphs, the provision of a table of contents and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. 

Statute References

	
 
	
1.3
	
Any reference in this Agreement to a statute shall be deemed to be a reference to such statute as amended, re-enacted or replaced from time to time.

Permitted Encumbrance

	
 
	
1.4
	
Any reference in any of the Facility Documents to a Permitted Encumbrance is not intended to and shall not be interpreted as subordinating or postponing, or as any agreement to subordinate or postpone, any obligation of any Credit Party to the Lender under any of the Facility Documents, or any security therefor, to such Permitted Encumbrance.

Currency

	
 
	
1.5
	
Any reference in this Agreement to “Dollars”, “dollars” or “$” shall be deemed to be a reference to lawful money of the United States of America and any reference to any payments to be made by any Credit Party shall be deemed to be a reference to payments made in lawful money of the United States of America.  Any reference in this Agreement to “CAD$” shall be deemed to be a reference to lawful money of Canada.  Except as specifically provided in this Agreement or in any other Facility Document, the equivalent on any given date in one currency of an amount denominated in another currency is a reference to the amount of the first currency which could be purchased with the amount of the second currency at the screen rate published on Reuters or any substitute or successor of such service selected by the Lender or, if not available, the spot rate of exchange quoted to the Lender in the ordinary course of business at or about 11:00 a.m. (Toronto time) on such date for the purchase of the first currency with the second currency.

Use of the Words “Best Knowledge”, "continuing" and "indebtedness"

	
 
	
1.6
	
The words “best knowledge”, “to the best of the Borrower’s knowledge”, “to the knowledge of”, “of which they are aware”, “any knowledge of” or other similar expressions limiting the scope of any representation, warranty, acknowledgement, covenant or statement by the Borrower or the Credit Parties will be understood to be made on the basis of the actual knowledge of any of the directors and/or senior officers of the Borrower or other Credit Party, in each case, after due and diligent inquiry.

	
 
	
1.7
	
A Default (other than an Event of Default) being “continuing” means that such Default has not been remedied to the Lender’s satisfaction or waived by the Lender, and an Event of Default being “continuing” means that such Event of Default has not been waived by the Lender. 

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1.8
	
Any reference to “indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent.

Non-Business Days

	
 
	
1.9
	
Whenever any payment to be made hereunder shall be due, any period of time would begin or end, any calculation is to be made or any other action is to be taken on or as of, a day other than a Business Day, such payment shall be made, such period of time shall begin or end, such calculation shall be made and such other actions shall be taken, as the case may be, unless otherwise specifically provided for herein, on or as of the next succeeding Business Day and the Lender shall be entitled to all additional accrued interest or other applicable payment in respect of such delay.

Governing Law

	
 
	
1.10
	
This Agreement shall be governed by, construed and enforced in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein and shall be treated in all respects as a British Columbia contract.  Each Credit Party hereby irrevocably attorns to the non-exclusive jurisdiction of the Courts of the Province of British Columbia in the City of Vancouver.  Each Credit Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any Court of the Province of British Columbia.  Each Credit Party hereby irrevocably waives, to the fullest extent permitted by law, any forum non conveniens defence to the maintenance of such action or proceeding in any such court.  Each Credit Party irrevocably consents to service of process in British Columbia.  Nothing in this Agreement will affect the right of the Lender to serve process in any other manner or in any other jurisdiction permitted by law or to commence suits, actions or legal proceedings in any other jurisdictions.

Paramountcy

	
 
	
1.11
	
Notwithstanding any other provision of this Agreement or any Facility Document, in the event of a conflict or any inconsistency between the provisions of this Agreement and the provisions of any other Facility Document, the applicable provisions of this Agreement shall prevail and govern.

Enurement

	
 
	
1.12
	
The Facility Documents shall be binding upon and shall enure to the benefit of the Credit Parties and the Lender and their respective successors and permitted assigns.

Interpretation

	
 
	
1.13
	
In this Agreement, unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders.  In this Agreement the words “including” or “includes” mean “including without limitation” and “includes without limitation”, respectively.

Time of Essence

	
 
	
1.14
	
Time shall be of the essence in all respects in this Agreement.

Accounting Terms

	
 
	
1.15
	
All accounting terms not specifically defined herein shall be construed, and resulting calculations and determination made, in accordance with IFRS.

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Schedules

	
 
	
1.16
	
The Schedules listed below are incorporated into this Agreement by reference and are deemed to be an integral part thereof:

Schedule A - Project
Schedule B - Security Documents
Schedule C - Shares and Ownership Interests
Schedule D - Material Contracts
Schedule E - Authorizations to be obtained on or prior to the Closing Date
Schedule F - Compliance Certificate
Schedule G - Royalty Obligations
Schedule H - Hall Lease Consent

Article 2
THE FACILITy

The Facility

	
 
	
2.1
	
Subject to the terms and conditions hereof, the Lender hereby establishes in favour of the Borrower a senior secured term credit facility (the “Facility”) in an amount equal to the Commitment amount, which shall be made available to the Borrower, or as the Borrower may direct, by way of a single Advance made in accordance with this Agreement.

Non-Revolving

	
 
	
2.2
	
The Facility is a non-revolving facility, and any repayment or prepayment of the Facility shall not be re-borrowed.  No amount cancelled under the Facility may be subsequently reinstated.

Term

	
 
	
2.3
	
Except as otherwise provided herein, the outstanding principal amount of the Facility, together with all accrued but unpaid interest, bonus and other costs, fees, charges and other amounts payable hereunder from time to time, will be immediately due and payable by the Borrower to the Lender on the Maturity Date.

Use of Proceeds

	
 
	
2.4
	
Except with the prior written consent of the Lender, the Borrower shall use the proceeds of the Facility only as follows:

	
 
	
(a)
	
in payment of the Lender’s fees and expenses payable pursuant to Section 8.4;

	
 
	
(b)
	
as to the balance for the phase 2 leach pad expansion at the Project; and 

	
 
	
(c)
	
such other purposes as the Lender may approve in writing.

Interest

	
 
	
2.5
	
Interest shall accrue on the outstanding principal amount of the Facility from and including the date of Advance, as well as on all overdue amounts outstanding in respect of interest, costs or other fees, expenses or other amounts payable under the Facility Documents, in each case at a floating rate equal to 8.00% per annum plus the greater of (i) LIBOR and (ii) 2.00%, per annum, calculated and compounded monthly on the last day of every Interest Period, and be payable on the last Business Day of each Interest Period (each an “Interest Payment Date”) by the Borrower 

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by way of preauthorized electronic debit, net of all applicable Taxes, as well as after each of maturity, default and judgment.  If a rate of interest is not determinable at the relevant time in accordance with the definition of LIBOR, whether by virtue of any disruption, replacement or abandonment of LIBOR or otherwise, the applicable rate of interest for LIBOR as used above for the determination of the applicable rate of interest payable by the Borrower pursuant to this Section 2.5, shall be equal to: (a) if LIBOR has been succeeded by another floating rate index that has a three month interest accrual period, is commonly accepted by market participants, and which has begun to be quoted by a recognized reporting service, such alternate index rate as determined by the Lender at approximately 11:00 a.m. (London time) on the first Business Day of the relevant Interest Period, or (b) in any other case, the rate, expressed as a rate of interest per annum on the basis of a year of 360 days, at which deposits in U.S. Dollars are offered by leading prime banks in the London inter-bank market, as determined by the Lender at approximately 11:00 a.m. (London time) on the first Business Day of the relevant Interest Period.

Minimum Interest

	
 
	
2.6
	
In connection with any payment or prepayment of the principal amount of the Facility, in whole or in part, including pursuant to Section 4.2, Section 4.3, Section 4.4, Section 4.6 and after any acceleration of the Facility pursuant to Section 9.2, the Borrower shall pay to the Lender an amount equal to the Minimum Interest Amount less the actual amount of interest paid by the Borrower to the Lender pursuant to Section 2.5 to the date of such payment or prepayment of the principal amount of the Facility, provided always, that if the actual amount of interest paid by the Borrower to the Lender pursuant to Section 2.5 to the date of such payment or prepayment of the principal amount of the Facility is greater than or equal to the Minimum Interest Amount, no payment shall be due under this Section 2.6.

Computations

	
 
	
2.7
	
The rates of interest under this Agreement are nominal rates, and not effective rates or yields.  Unless otherwise stated, wherever in this Agreement reference is made to a rate of interest (or standby interest) “per annum” or a similar expression is used, such interest (or standby interest) shall be calculated on the basis of a year of 360 days for the actual number of days occurring in the period for which any such interest (or standby interest) is payable.  For the purposes of the Interest Act (Canada) and disclosure thereunder, whenever any interest to be paid hereunder or in connection herewith is to be calculated on the basis of a 360-day year, the yearly rate of interest to which the rate used in such calculation is equivalent is the rate so used multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by 360.  The parties hereto acknowledge and agree that LIBOR is used herein as a reference rate and that while such reference rate is based on the three-month LIBOR rate, such rate shall be reset to the prevailing three-month LIBOR rate as of the first day of each Interest Period. 

No Set-off

	
 
	
2.8
	
All payments required to be made by the Borrower or any other Credit Party pursuant to the provisions hereof or any other Facility Document shall be made in immediately available funds and without any set-off, deduction, withholding or counter-claim or cross-claim.

Time and Place of Payments

	
 
	
2.9
	
All payments made by the Borrower pursuant to this Agreement or pursuant to any other Facility Document shall be made before 2:00 p.m. (Toronto, Ontario time) on the day specified for payment.  Any payment received after 2:00 p.m. (Toronto, Ontario time) on the day specified for such payment shall be deemed to have been received before 2:00 p.m. (Toronto, Ontario time) on the immediately following Business Day.  All payments shall be made to the Lender to the account and office of the Lender, as specified by the Lender (and, in the case of the office, in Section 10.2), or such other account or office as the Lender may designate in writing.  If the date 

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for payment of any Amount Payable is not a Business Day at the place of payment, then payment shall be made on the next Business Day at such place.

Record of Payments

	
 
	
2.10
	
The Lender shall maintain accounts and records evidencing all payments hereunder, which accounts and records shall constitute, in the absence of manifest error, prima facie evidence thereof.

Article 3
SHARE PURCHASE RIGHT

Partner Alignment Shares

	
 
	
3.1
	
Effective as of the Closing Date, the Borrower grants to the Lender the right to subscribe for (the “Subscription Right”) and purchase ‎1,286,228‎ Common Shares issued from treasury for and at an aggregate subscription price of $10.  The Partner Alignment Shares shall be registered in the name of the Lender, or as the Lender may direct, and shall be subject to a hold period under Applicable Securities Legislation of four months and one day from their date of issue.

	
 
	
3.2
	
Prior to the issuance of the Partner Alignment Shares to the Lender, the Lender shall provide to the Borrower such certificates and additional information relating to the Lender as the Borrower may reasonably request, including without limitation a certificate regarding the Lender’s status as an “accredited investor” within the meaning of National Instrument 45-106 – Prospectus Exemptions, to permit the Borrower to issue the Partner Alignment Shares in compliance with Applicable Securities Legislation.

	
 
	
3.3
	
The Borrower shall not be required to issue fractional Common Shares upon the exercise of the Subscription Right.  If any fractional interest in a Common Share would, except for the provisions of this Section 3.3, be deliverable upon the exercise of the Subscription Right, the Borrower shall, in lieu of delivering any certificate for such fractional interest, round such fractional interest down to the nearest whole Common Share.

	
 
	
3.4
	
The Lender shall exercise the Subscription Right on or before the Closing Date, effective as of the Closing Date. In the event that the Lender does not exercise the Subscription Right as aforesaid, the Subscription Right shall be of no force or effect, effective as of the Closing Date.

Article 4
prePayment

Principal Repayments

	
 
	
4.1
	
Commencing on January 31, 2021, and thereafter on the last Business Day of each calendar quarter thereafter (on each of April 30, July 31, October 31 and January 31 of each year), the Borrower shall pay to the Lender equal repayments of the principal amount of the Facility, each in an amount equal to 1/8th of the outstanding principal amount of the Facility as at January 31, 2021.  The Borrower shall pay the outstanding principal amount of the Facility in full on the earlier of the Maturity Date and the date of any acceleration of the Facility pursuant to Section 9.2.

Voluntary Prepayment

	
 
	
4.2
	
The Borrower may prepay to the Lender the outstanding principal amount of the Facility, in whole or in part, at any time before the Maturity Date.

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Mandatory Prepayments of the Facility 

	
 
	
4.3
	
If any Credit Party (a) sells, assigns, transfers or otherwise disposes of any assets in one or more transactions or (b) receives any proceeds (including insurance proceeds other than insurance proceeds in an aggregate amount not exceeding $1,000,000 where such proceeds or any portion thereof have not been used or committed by such Credit Party to repair or replace the subject assets within 180 days of such Credit Party’s receipt thereof providing that such repairs or replacement will generate materially the same performance as prior to such insurance claim) in respect of any sale, assignment, transfer or other disposition of any assets in one or more transactions, the Credit Parties will pay or cause to be paid to the Lender (i) the proceeds of such sale, assignment, transfer or other disposition, net of reasonable out-of-pocket selling costs required to be paid by such Credit Party to any third party in connection with such sale, assignment, transfer or other disposition, if any, including insurance proceeds, if any, to be applied in repayment of the outstanding balance of the Facility.

	
 
	
4.4
	
From and after the occurrence of any Default or Event of Default, if any Affiliate of a Credit Party (a) sells, assigns, transfers or otherwise disposes of any assets in one or more transactions or (b) receives any proceeds (including insurance proceeds) in respect of any sale, assignment, transfer or other disposition of any assets in one or more transactions, the Credit Parties will pay or cause to be paid to the Lender (i) the proceeds of such sale, assignment, transfer or other disposition, net of reasonable out-of-pocket selling costs required to be paid by such Affiliate of a Credit Party to any third party in connection with such sale, assignment, transfer or other disposition, if any, including insurance proceeds, if any, to be applied in repayment of the outstanding balance of the Facility.

	
 
	
4.5
	
If any Credit Party sells or otherwise disposes of any assets in one or more transactions, to the extent that the proceeds of such transactions are not in the form of cash (or to the extent there are non-cash proceeds), such Credit Party will grant to the Lender a first ranking Encumbrance over such proceeds and provide the Lender with all such security documents, opinions and other documents as the Lender or the Lender’s Counsel may reasonably require.

	
 
	
4.6
	
From and after the occurrence of any Default or Event of Default, if any Credit Party closes one or more equity or debt (including convertible debt) financings, such Credit Party will pay or cause to be paid to the Lender the proceeds of such financing(s), net of reasonable out-of-pocket financing costs required to be paid by such Credit Party to any third party in connection with such financing(s), to be applied on account of the outstanding balance of the Facility.

Article 5
SECURITY

Security Documents

	
 
	
5.1
	
To secure the due payment of all Indebtedness of the Credit Parties to the Lender in respect of the Facility and the payment and performance of all other obligations, indebtedness and liabilities of the Credit Parties to the Lender hereunder and under the other Facility Documents, the Credit Parties shall execute and deliver or cause to be executed and delivered, as applicable, the Security Documents to the Lender.

Registration of the Security

	
 
	
5.2
	
The Lender shall, at the Borrower’s expense, register, file, record and give notice of (or cause to be registered, filed, recorded and given notice of) the Security Documents in all offices and registries where such registration, filing, recording or giving notice is necessary or desirable for the perfection of the Encumbrance constituted thereby and to ensure that such Encumbrance is first ranking, subject only to the Permitted Encumbrances.

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After Acquired Property and Further Assurances

	
 
	
5.3
	
The Credit Parties shall from time to time, promptly execute and deliver all such further documents, deeds or other instruments of conveyance, assignment, transfer, mortgage, pledge or charge as may be necessary or desirable in the opinion of the Lender or Lender’s Counsel to complete and maintain the registration and perfection of the Encumbrances created pursuant to the Security Documents and to ensure that the Secured Assets, including any after-acquired property, are subject to the Encumbrances created and perfected pursuant to the Security Documents.

Article 6
CONDITIONS precedent to advance

Conditions Precedent to Advance

	
 
	
6.1
	
The obligation of the Lender to make the Advance under this Agreement is subject to and conditional upon the following conditions precedent being satisfied, fulfilled or otherwise met to the satisfaction of the Lender and the Lender’s Counsel on or before the Closing Date:

	
 
	
(a)
	
receipt by the Lender of the following documents, each in full force and effect, and in form and substance satisfactory to the Lender and the Lender’s Counsel:

	
 
	
(i)
	
executed copies of the Facility Documents, including, without limitation, this Agreement, the Security Documents described in Schedule B and the Disclosure Letter;

	
 
	
(ii)
	
a copy of the initial Model;

	
 
	
(iii)
	
confirmation from the Borrower that (i) except for the Hall Lease Consent, the Caterpillar Consent and any other the Authorizations identified on Schedule E as not having been obtained prior to the Closing Date, all Authorizations from each Governmental Authority necessary or required to enable the Borrower to develop and operate the Project have been obtained and are valid, subsisting and in good standing, and (ii) except for those Material Contracts identified on Schedule D as not having been executed prior to the Closing Date, all Material Contracts required to construct and operate the Project have been executed and provided to, and accepted by, the Lender and (iii) each Authorization from each Governmental Authority necessary or required to enable the Borrower to develop and operate the Project, which by their nature do not need to be obtained until a future date, will be obtained prior to the time it becomes necessary or required for the then current stage of the development or operation of the Project;

	
 
	
(iv)
	
customary search reports as the Lender may require;

	
 
	
(v)
	
an up-to-date list of the properties and assets owned by the Credit Parties;

	
 
	
(vi)
	
a Compliance Certificate;

	
 
	
(vii)
	
certificates of status or other similar type of evidence of existence for each of the Credit Parties from all Relevant Jurisdictions;

	
 
	
(viii)
	
certified copies of the Constating Documents of each of the Credit Parties;

	
 
	
(ix)
	
copies of all agreements and documents evidencing all Royalty Obligations of the Credit Parties;

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(x)
	
certified copies of directors’ resolutions for each of the Credit Parties with respect to its authorization, execution and delivery of the Facility Documents to which it is a party and the performance of all its obligations thereunder;

	
 
	
(xi)
	
certificates of a director, managing partner or authorized officer, as applicable, of each of the Credit Parties, in each case providing customary certifications including certifying the names and the true signatures of the officers authorized to sign the Facility Documents to which it is a party;

	
 
	
(xii)
	
all requisite Authorizations and regulatory approvals to the transactions contemplated herein, including all required consents and approvals of the Exchanges and other third party consents and approvals listed in 0;

	
 
	
(xiii)
	
share certificates, executed blank share transfer forms and authorizing resolutions in respect of all Equity Interests pledged as at the Closing Date and the subject of any Security Document;

	
 
	
(xiv)
	
releases and discharges (in registrable form where appropriate) covering all Encumbrances affecting any of the Secured Assets secured by the Security Documents described in Schedule B which are not Permitted Encumbrances;  

	
 
	
(xv)
	
legal opinions of counsel to the Credit Parties in all of the Relevant Jurisdictions, including a title opinion in respect of the Project; and

	
 
	
(xvi)
	
an irrevocable direction to pay with respect to the Advance;

	
 
	
(b)
	
the Lender shall have completed and be satisfied with its financial, business, environmental, tax and other due diligence review of the Credit Parties, and their respective properties and assets, including without limitation, its review of all feasibility studies, mine plans, leases, licences, permits, budgets, financial forecasts, pro forma financial statements and all Material Contracts and the net realizable value of the Secured Assets;

	
 
	
(c)
	
evidence that all Encumbrances granted pursuant to the Security Documents described in Schedule B have been duly perfected and registered in all Relevant Jurisdictions and any other jurisdiction as required by the Lender and the Lender’s Counsel;

	
 
	
(d)
	
there shall be no other Encumbrances whatsoever attaching to the Secured Assets, other than Permitted Encumbrances;

	
 
	
(e)
	
all of the representations and warranties of the Credit Parties contained herein or in any other Facility Document are true and correct on and as of the Closing Date as though made on and as of such date, and the Lender has received a Certificate of the Borrower so certifying to the Lender;

	
 
	
(f)
	
all of the covenants and agreements of each of the Credit Parties contained herein or in any other Facility Document required to be fulfilled or satisfied on or before the Closing Date have been so fulfilled or satisfied, and the Lender has received a Certificate of the Borrower so certifying to the Lender;

	
 
	
(g)
	
no Default or Event of Default has occurred and is continuing, and the Lender has received a Certificate of the Borrower so certifying to the Lender; 

	
 
	
(h)
	
the Lender has received payment of all fees and all costs and expenses which are payable by the Borrower to the Lender on or prior to the Closing Date in accordance with Section 8.4;

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(i)
	
no event or circumstance shall have occurred or exist that could be expected to have a Material Adverse Effect and there shall be no pending or threatened litigation, proceedings or investigations which could be expected to have a Material Adverse Effect; 

	
 
	
(j)
	
the Lender shall have received the approval of its credit committee and other required authorizations, including the approval of its partners; and

	
 
	
(k)
	
such other conditions precedent (including the delivery of such documents, certificates, opinions and agreements) as the Lender may require based on its due diligence review,

failing which the Lender shall have no further obligation to the Borrower hereunder and the Borrower shall promptly thereafter pay to the Lender all outstanding fees and expenses, including all costs and expenses incurred by the Lender in connection with this Agreement.

Waiver

	
 
	
6.2
	
The conditions in Section 6.1 are inserted for the sole benefit of the Lender and may be waived by the Lender, in whole or in part, with or without conditions, as the Lender may determine in its sole and absolute discretion.

Article 7
REPRESENTATIONS AND WARRANTIES

Representations and Warranties of the Credit Parties

	
 
	
7.1
	
The Credit Parties hereby represent and warrant to the Lender as of the date hereof and as of the date of each Advance that:

	
 
	
(a)
	
each Credit Party has been duly incorporated and organized under the laws of its jurisdiction of incorporation and is validly existing and is current and up-to-date with all filings required to be made under the laws of its jurisdiction of incorporation to maintain its corporate existence and has all requisite corporate power to carry on its business as now conducted and to own, lease or operate its property, and no steps or proceedings have been taken by any Person, voluntary or otherwise, requiring or authorizing its dissolution or winding up;

	
 
	
(b)
	
each Credit Party and any representative signing on its behalf has full power and capacity to enter into each of the Facility Documents to which it is a party and to do all acts and things and execute and deliver all documents as are required hereunder or thereunder to be done, observed, performed or executed and delivered by it in accordance with the terms hereof and thereof, and each Credit Party has taken all necessary corporate action to duly authorize the creation, execution, delivery and performance of each of the Facility Documents to which it is a party and to observe and perform the provisions of such Facility Documents in accordance with the provisions thereof; 

	
 
	
(c)
	
upon the execution and delivery thereof, the Facility Documents will create legal, valid and binding obligations of each Credit Party that is party to them enforceable against each such Credit Party in accordance with their respective terms;

	
 
	
(d)
	
the entry into and the performance of its obligations under each Facility Document to which it is a party is in its best interests and for a proper purpose;

	
 
	
(e)
	
none of the execution and delivery of the Facility Documents, the compliance by the Credit Parties with the provisions of the Facility Documents or the consummation of the transactions contemplated herein, does or will: (i) require the consent, approval, Authorization, order or agreement of, or registration or qualification with, any Governmental 

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Authority, court, stock exchange, securities regulatory authority or other Person, except (A) those listed on Schedule E, all of which will have been obtained on or before the Closing Date and (B) necessary Exchange approvals which will be obtained on or before the Closing Date; (ii) conflict with or result in any breach or violation of any of the provisions of, or constitute a default under, any indenture, mortgage, deed of trust, lease or other agreement or instrument to which any Credit Party is a party or by which it or any of its properties or assets is bound; or (iii) conflict with or result in any breach or violation of any provisions of, or constitute a default under the Constating Documents of any Credit Party or any resolution passed by the directors (or any committee thereof) or shareholders of any Credit Party, or any statute or any judgment, decree, order, rule, policy or regulation of any court, Governmental Authority, any arbitrator, stock exchange or securities regulatory authority applicable to any Credit Party or any of the properties or assets thereof;

	
 
	
(f)
	
the Borrower is authorized to issue an unlimited number of Common Shares, of which 84,770,143 Common Shares are issued and outstanding as fully paid and non-assessable Common Shares as of November 12, 2019; 

	
 
	
(g)
	
the Common Shares are listed and posted for trading on the Exchanges;

	
 
	
(h)
	
except as set forth in Schedule C, no Credit Party owns, beneficially or of record, or exercises control or direction over, any Equity Interests of any Person;

	
 
	
(i)
	
except as disclosed in the Disclosure Letter, no Person has any agreement, option, right or privilege (whether pre-emptive, contractual or otherwise) capable of becoming an agreement, for the purchase, acquisition, subscription for or issue of any of the unissued shares or other securities of the Borrower or any other Credit Party;

	
 
	
(j)
	
no Credit Party carries on business, has an office or owns any properties or tangible assets located, outside of Canada or the United States;

	
 
	
(k)
	
none of Rye Patch Gold US Inc., RP Dirt Inc. or Standard Gold Mining, Inc. carry on business or, taken together, have any assets having an aggregate fair market value in excess of $500,000, excluding any inter-company Indebtedness between Rye Patch Gold US Inc., RP Dirt Inc. or Standard Gold Mining, Inc. and any of their Affiliates; 

	
 
	
(l)
	
each Credit Party is licensed, registered or qualified as an extra-provincial or foreign corporation in all jurisdictions where the character of any of its owned or leased properties or assets or the nature of the activities conducted by it make licensing, registration or qualification necessary and is carrying on the business thereof in compliance with all Applicable Laws of each such jurisdiction;

	
 
	
(m)
	
each Credit Party has conducted and is conducting its business in compliance in all respects with Applicable Law and possesses all Authorizations necessary to carry on the business currently carried on by it, is in compliance in all respects with the terms and conditions of all such Authorizations, and none of the Credit Parties has received any notice of the modification, revocation or cancellation of, any intention to modify, revoke or cancel or any proceeding relating to the modification, revocation or cancellation of any such Authorization;

	
 
	
(n)
	
the Borrower is a reporting issuer or the equivalent in the Reporting Jurisdictions and is in compliance with all its obligations under the Applicable Securities Legislation of such jurisdictions and of the Exchanges in all respects and is not included in any list of defaulting reporting issuers (or similar list) maintained by the securities commission of any such jurisdiction;

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(o)
	
no order or ruling suspending the sale or ceasing the trading in any securities of the Borrower or prohibiting the sale of such securities has been issued by any securities regulatory authority to or against the Borrower or its directors, officers or promoters and no investigations or proceedings for such purposes have been threatened or are pending or contemplated;

	
 
	
(p)
	
there has been no material change, as defined in the Applicable Securities Legislation, relating to the Borrower, which has not been fully disclosed in accordance with the requirements of the Applicable Securities Legislation and the rules and policies of the Exchanges;

	
 
	
(q)
	
no Credit Party has incurred any Indebtedness or guaranteed the obligations of any Person, except for Permitted Indebtedness;

	
 
	
(r)
	
the Borrower has the corporate power and authority to create, issue and deliver the Partner Alignment Shares;

	
 
	
(s)
	
each of the Partner Alignment Shares have been authorized and reserved for issuance upon the Closing Date, and upon such issuance will be validly issued as fully-paid and non-assessable;

	
 
	
(t)
	
the Borrower has complied with all Applicable Securities Legislation in connection with reservation for the issuance of the Partner Alignment Shares, in each case including, but not limited to, receiving the consents and approvals of the Exchanges, as required, in respect of the listing of the Partner Alignment Shares on the Exchanges;

	
 
	
(u)
	
subject to compliance by the Lender with Section 3.2 hereof, the issuance of the Partner Alignment Shares will be exempt from the prospectus requirements of Applicable Securities Legislation and no document will be required to be filed and no proceeding taken or approval, permit, consent, order or Authorization obtained under any Applicable Securities Legislation in connection with the first trade of the Partner Alignment Shares (assuming that the conditions set out in Section 2.5(2) National Instrument 45-102 Resale Restrictions (“NI45-102”), as qualified by Section 2.5(3) of NI45-102, are satisfied as of the date of such first trade); 

	
 
	
(v)
	
the contracts, agreements and other documents listed in Schedule D represent all Material Contracts of the Credit Parties, each of which is in full force and effect, unamended, and true and complete copies of which have been provided to the Lender;

	
 
	
(w)
	
any and all of the agreements and other documents and instruments pursuant to which any Credit Party holds any property and/or assets (including any interest in, or right to earn an interest in, any property) are valid and subsisting agreements, documents or instruments in full force and effect, enforceable in accordance with the terms thereof.  No Credit Party is in default of any of the provisions of any such agreements, documents or instruments in any respect nor has any such default been alleged, and such properties and assets are in good standing under the Applicable Laws of the jurisdictions in which they are situated, and all leases, licenses and claims pursuant to which any Credit Party derives the interests thereof in such property and assets are in good standing and there has been no default under any such lease, licence or claim.  None of the properties or assets (or any interest in, or right to earn an interest in, any property) of any Credit Party is subject to any right of first refusal, purchase, acquisition or similar right;

	
 
	
(x)
	
Florida Canyon holds freehold title, mining leases, mining claims or other conventional property, proprietary or contractual interests or rights, recognized in the State of Nevada, in respect of the ore bodies, metals and minerals located in properties in which it has an interest as described in the Disclosure Record under valid, subsisting and enforceable title 

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documents or other recognized and enforceable agreements or instruments, sufficient to permit Florida Canyon to explore and extract the metals and minerals relating thereto as contemplated in the Model, all such property, leases or claims and all property, leases or claims in respect of the Project in which Florida Canyon has an interest or right have been validly located and recorded in accordance with Applicable Law in all respects and are valid and subsisting, Florida Canyon has all necessary surface rights, access rights and other necessary rights and interests relating to the properties in which Florida Canyon has an interest as described in the Disclosure Record in respect of the Project granting Florida Canyon the right and ability to access, explore and extract for minerals, ore and metals for development purposes as contemplated in the Model as are appropriate in view of the rights and interest therein of Florida Canyon, with only such exceptions as do not interfere with the use made by Florida Canyon of the rights or interests so held and each of the proprietary interests or rights and each of the documents, agreements and instruments and obligations relating thereto referred to above is currently in good standing in the name of Florida Canyon; 

	
 
	
(y)
	
each Credit Party has good and valid right, title and interest in and to all of its properties and assets, movable (personal) or immovable (real), free and clear of all Encumbrances, whether registered or unregistered, except Permitted Encumbrances, and no such properties or assets are subject to any earn-in right, right of first refusal, purchase, acquisition or similar right, granted in favour of any Person, except Permitted Encumbrances;

	
 
	
(z)
	
the description of the Project contained in Schedule A is a true and complete description of the Project;

	
 
	
(aa)
	
each Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state laws;

	
 
	
(bb)
	
there are no pending or, to the best knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Pension Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Pension Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect;

	
 
	
(cc)
	
no ERISA Event has occurred that has resulted or could reasonably be expected to result in a Material Adverse Effect, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan or Multiemployer Plan;

	
 
	
(dd)
	
with respect to each scheme or arrangement mandated by a government other than the United States (a “Foreign Government Scheme or Arrangement”) and with respect to each employee benefit plan maintained or contributed to by any Credit Party or any Subsidiary of any Credit Party that is not subject to United States law (a “Foreign Plan”):

	
 
	
(i)
	
any employer and employee contributions required by law or by the terms of any Foreign Government Scheme or Arrangement or any Foreign Plan have been made, or, if applicable, accrued, in accordance with normal accounting practices;

	
 
	
(ii)
	
the fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any Foreign Plan funded through insurance or the book reserve established for any Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations, as of the date hereof, with respect to all current and former participants in such Foreign Plan according to the actuarial assumptions and valuations most recently used to 

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account for such obligations in accordance with applicable generally accepted accounting principles; and

	
 
	
(iii)
	
each Foreign Plan required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities;

	
 
	
(ee)
	
each Credit Party owns or has the right to use under license, sub-license or otherwise all intellectual property used by it in its business, including copyrights, industrial designs, trademarks, trade secrets, know-how and proprietary rights, free and clear of any and all Encumbrances except Permitted Encumbrances;

	
 
	
(ff)
	
no Credit Party maintains, or has any obligation or liability in relation to, any Pension Plan;

	
 
	
(gg)
	
except for Permitted Encumbrances, there are no royalties or other similar obligations applicable to the properties of any Credit Party, including but not limited to the property interests comprising the Project;

	
 
	
(hh)
	
Schedule G correctly identifies the location of all Royalty Obligations;

	
 
	
(ii)
	
in connection with the mining activities contemplated by the Model, the Credit Parties shall not be liable for or otherwise obligated to pay any royalties or other similar obligations, except for (i) payments required pursuant to the terms of the Able & York Royalty, (ii) payments required pursuant to the terms of the RIFLP Royalty and (iii) up to an aggregate of $10,000 per year under the 1999 Muller Royalty (collectively, the “Permitted Royalty Payments”); all other Royalty Obligations fall outside of the active mining area of the Project; 

	
 
	
(jj)
	
no Credit Party has approved entering into any agreement in respect of (i) the sale of any property of such Credit Party, or assets or any interest therein or the sale, transfer or other disposition of any property of such Credit Party, or assets or any interest therein currently owned, directly or indirectly, by such Credit Party whether by asset sale, transfer of shares or otherwise other than with respect to a Permitted Disposal or (ii) any Change of Control;

	
 
	
(kk)
	
no portion of the Disclosure Record contains an untrue statement of a material fact as of the date thereof nor does it omit to state a material fact which, at the date thereof, was required to have been stated or was necessary to prevent a statement that was made from being false or misleading in the circumstances in which it was made;

	
 
	
(ll)
	
the consolidated financial statements of the Borrower contained in the Disclosure Record have been prepared in all material respects in accordance with Applicable Law, and give a true and fair view of the Borrower’s consolidated financial position as at the date thereof and comply with IFRS, and no adverse material change in the financial position in all material respects of any Credit Party has taken place since the date thereof;

	
 
	
(mm)
	
none of the Credit Parties has any liabilities, fixed or contingent, of the type required to be reflected as liabilities in financial statements prepared in accordance with IFRS, that are not reflected in the consolidated financial statements of the Borrower contained in the Disclosure Record or in the notes thereto;

	
 
	
(nn)
	
the Borrower’s Auditors are independent chartered professional accountants and have participant status with the Canadian Public Accountability Board as required under Applicable Securities Legislation and there has never been a reportable event (within the meaning of National Instrument 51-102 Continuous Disclosure Obligations) between the Borrower and the Borrower’s Auditors; 

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(oo)
	
during the 12 months proceeding the date hereof, the Borrower has in all material respects complied with all continuous disclosure obligations under Applicable Securities Legislation and the rules and regulations of the Exchanges and, without limiting the generality of the foregoing, during the 12 months proceeding the date hereof, there has not occurred an adverse material change, financial or otherwise, in the assets, liabilities (contingent or otherwise), business, financial condition, capital or prospects of the Borrower or the Subsidiaries (taken as a whole) which has not been publicly disclosed on a non-confidential basis; the Disclosure Record conformed in all material respects to Applicable Securities Legislation at the time such documents were filed on SEDAR and the Borrower has not filed any confidential material change reports which remain confidential as at the date hereof;

	
 
	
(pp)
	
all Taxes of each Credit Party have been paid and all Tax returns, declarations, remittances and filings required to be filed by any Credit Party have been filed with all appropriate Governmental Authorities and all such returns, declarations, remittances and filings were, at the time of filing, complete and accurate in all respects and no fact or facts have been omitted therefrom which could make any of them misleading. There are no issues or disputes outstanding with any Governmental Authority respecting any Taxes that have been paid, or may be payable, by any Credit Party and no examination of any Tax return of any Credit Party is currently in progress (save in respect of any issue, dispute or examination which the relevant Credit Party (or Credit Parties) is disputing in good faith and pursuant to appropriate proceedings diligently conducted);

	
 
	
(qq)
	
(i) no Credit Party is in violation of any Environmental Laws including without limitation any laws relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum by-products (collectively, “Hazardous Materials”) or the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials; (ii) each Credit Party has all Authorizations required under any applicable Environmental Laws and, each Credit Party is in compliance with such Authorizations; (iii) there are no pending or threatened administrative, regulatory or judicial actions, suits, demands, claims, liens, notices of non-compliance or violation, investigation or proceedings relating to any Environmental Laws against any Credit Party; (iv) there are no events or circumstances that could be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or Governmental Authority, against or affecting any Credit Party relating to any Environmental Laws; (v) each Credit Party has made available for review by the Lender all audits, reports, or assessments relating to Environmental Matters in their possession; 

	
 
	
(rr)
	
the Credit Parties are in compliance with all reclamation obligations applicable to the Project required under Applicable Law or pursuant to the written directive of any relevant Government Authority, have in place a mine closure plan approved by the appropriate Governmental Authorities and have posted all bonding, security and other financial commitments which is required under Applicable Law in connection therewith, pursuant to all Applicable Law;  

	
 
	
(ss)
	
each Credit Party operates its business in compliance in all respects with all Applicable Laws relating to employment and there are no legal proceedings nor any threatened legal proceedings, against any Credit Party pursuant to any Applicable Laws relating to employment.  There are no outstanding decisions, orders, judgments or settlements or pending settlements under any Applicable Laws relating to employment which place any obligation upon any Credit Party to do or refrain from doing any act.  Each Credit Party is up to date in the payment of all premiums or assessments under applicable workers compensation and profit sharing or other worker safety legislation applicable in the Relevant Jurisdictions, and no Credit Party is subject to any special assessment or penalty under any such legislation;

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(tt)
	
(i) no complaint for wrongful dismissal, constructive dismissal or any other claim, complaint, litigation or other proceeding respecting employment and employment practices, terms and conditions of employment, pay equity and wages is pending against any Credit Party or threatened against any Credit Party as of the date hereof; (ii) no grievance or arbitration arising out of or under any collective bargaining agreement is pending against any Credit Party or threatened against it; and (iii) no strike, or material labour dispute, slowdown or stoppage is pending or threatened against any Credit Party;

	
 
	
(uu)
	
none of the directors, officers or employees of any Credit Party or any Affiliate of a Credit Party had or has any interest, direct or indirect, in any transaction or any proposed transaction with any Credit Party;

	
 
	
(vv)
	
the assets of each Credit Party and their respective businesses and operations are insured against loss or damage with insurers on a basis consistent with insurance obtained by reasonably prudent participants in comparable businesses, such coverage is in full force and effect, and no Credit Party has failed to promptly give any notice of any claim thereunder.  There are no claims by any Credit Party under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights or similar clause;

	
 
	
(ww)
	
no Credit Party is in violation of any term of its Constating Documents.  No Credit Party is in violation of any term or provision of any agreement, indenture or other instrument applicable to it which could result in any Material Adverse Effect, and there is no action, suit, proceeding or investigation commenced, pending or threatened which, either in any case or in the aggregate, could result in any Material Adverse Effect or which places, or could place, in question the validity or enforceability of this Agreement, or any document or instrument delivered, or to be delivered, by any Credit Party pursuant hereto;

	
 
	
(xx)
	
no Credit Party is in default of any term, covenant or condition under or in respect of any judgment, order, agreement or instrument to which it is a party or to which it or any of the property or assets thereof are subject, and no event has occurred and is continuing, and no circumstance exists which has not been waived, which constitutes a default in respect of any commitment, agreement, document or other instrument to which any Credit Party is a party or by which it is otherwise bound entitling any other party thereto to accelerate the maturity of any amount owing thereunder or which could have a Material Adverse Effect;

	
 
	
(yy)
	
no Credit Party has committed or commenced any act of bankruptcy, administration, liquidation, receivership, dissolution, winding-up, adjustment of debt, relief of debtors, is otherwise insolvent, has proposed a compromise or arrangement to its respective creditors generally, has had a petition or receiving order in bankruptcy filed against it, has made a voluntary assignment in bankruptcy, has taken any proceedings with respect to a compromise or arrangement, has taken any proceedings to have a receiver appointed for any of its property or has had any execution or distress become enforceable or become levied against it or upon any of its property or assets;

	
 
	
(zz)
	
except as disclosed in the Disclosure Letter, there are no legal actions, suits, proceedings, inquiries or investigations of any kind existing, pending or threatened against or affecting any Credit Party or to which any properties or assets of any Credit Party are subject, at law or equity, or before or by any Governmental Authority, and no Credit Party is subject to any judgment, order, writ, injunction, decree, declaration or award;

	
 
	
(aaa)
	
no Credit Party and no director or officer, and to the best of the knowledge of the Credit Parties after all due inquiry, no agent, employee or other Person acting on behalf of any Credit Party has, in the course of its actions for, or on behalf of, any Credit Party (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to 

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any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the Corruption of Foreign Public Officials Act (Canada), the US Foreign Corrupt Practices Act of 1977, or any other similar laws; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official, employee or other Person;

	
 
	
(bbb)
	
no Credit Party enjoys immunity from suit or execution in relation to its obligations under any Facility Document to which it is a party;

	
 
	
(ccc)
	
the most recent Model delivered by the Borrower to the Lender has been prepared in good faith by the Borrower based upon (i) the assumptions stated therein (which assumptions are believed by the Borrower on the date of delivery of such Model, to be reasonable), and (ii) the best information available to the Borrower as of the date of delivery of such Model; as of the date of delivery of the most recent Model, no fact, occurrence, circumstance or effect has occurred that could result in or require any change to such Model; the development of the Project has not deviated from the Model; the intended use of proceeds of each Advance is in accordance and consistent with the Model; for the work completed to date, construction is progressing in all respects in accordance with the construction schedule and budget (and failing which all cost overruns have been settled and paid from sources other than the Facility proceeds);

	
 
	
(ddd)
	
as of the date of delivery to the Lender of the most recent Model, no fact, occurrence, circumstance or effect has occurred that could result in or require any change to such Model; and

	
 
	
(eee)
	
no Credit Party has any liability or obligation whatsoever (whether accrued, absolute, contingent or otherwise, matured or unmatured) to Macquarie Bank Limited, whether pursuant to or in respect of any agreement with Macquarie Bank Limited (including any security agreement or other document perfected by the Macquarie Bank UCC Registration), or otherwise.

Acknowledgement

	
 
	
7.2
	
The Credit Parties acknowledge that the Lender is relying upon the representations and warranties in this Article 7 in discharging its obligations under this Agreement and that such representations and warranties shall be deemed to be restated in every respect effective on the date each Advance is made and the first day of each calendar month.

Survival and Inclusion

	
 
	
7.3
	
The representations and warranties in this Article 7 will survive the termination of this Agreement.  All statements, representations and warranties contained in any other Facility Document or in any instruments delivered by or on behalf of the Credit Parties or the Lender pursuant to this Agreement or any other Facility Document will be deemed to constitute statements, representations and warranties made by the Credit Parties to the Lender under this Agreement.

Article 8
COVENANTS OF THE CREDIT PARTIES

General Covenants

	
 
	
8.1
	
While any Facility Indebtedness is outstanding or the Facility remains available to the Borrower, each Credit Party covenants and agrees with the Lender as follows:

	
 
	
(a)
	
the Borrower will duly and punctually pay or cause to be paid to the Lender each Amount Payable, on the dates, at the places, in the currency and in the manner mentioned herein, 

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including, without limitation, upon the occurrence of any Event of Default, the outstanding balance of the Facility;

	
 
	
(b)
	
it will at all times maintain its corporate existence, obtain and maintain all Authorizations required or necessary in connection with its business, the Project and/or all of the Secured Assets, observe and perform in all respect all their obligations under all Authorizations and to carry on and conduct its business and exploit the Project in accordance with prudent mining industry standards;

	
 
	
(c)
	
it will keep or cause to be kept proper books of account and make or cause to be made therein true and complete entries of all of its dealings and transactions in relation to its businesses in accordance with IFRS, and at all times it will furnish or cause to be furnished to the Lender or its duly authorized representative, agent or attorney such information relating to its operations as the Lender may request and such books of account shall be open for inspection by the Lender or such representative, agent or attorney, upon reasonable prior notice (unless a Default is continuing, in which case no prior notice shall be required) and during regular business hours in the location of the requested information (unless a Default is continuing, in which case the Lender will be entitled to conduct such inspection at any time);

	
 
	
(d)
	
it will (at the Borrower’s cost and expense) provide the Lender and its representatives or any agent or attorney thereof access to all of its properties (including the Project), assets and books and records, upon reasonable prior notice and during regular business hours (unless a Default exists and is continuing in which case no prior notice is required and the Lender will have access at any time);

	
 
	
(e)
	
the Borrower will diligently pursue, in all respects, all mining and related activities in respect of the Project, as contemplated by the most recent Model delivered by the Borrower to the Lender;

	
 
	
(f)
	
the Borrower will diligently pursue all requisite Authorizations and regulatory approvals to the transactions contemplated herein;

	
 
	
(g)
	
it will at all times comply with all reclamation obligations applicable to the Project as required under Applicable Law or pursuant to the written directive of any relevant Government Authority, maintain a mine closure plan and maintain all bonding, security and other financial commitments which is required under Applicable Law or pursuant to the written directive of any relevant Government Authority in connection therewith;

	
 
	
(h)
	
it will ensure that each of the Security Documents will at all times constitute valid and perfected first ranking security on all of the Secured Assets, in accordance with their terms, subject only to Permitted Encumbrances, and at all times take all actions necessary or requested by the Lender to create, perfect and maintain the Encumbrances granted pursuant to the Security Documents as perfected first ranking security over the Secured Assets, subject only to Permitted Encumbrances;

	
 
	
(i)
	
it will duly and punctually perform and carry out all of the covenants and acts or things to be done by it as provided in this Agreement and each of the other Facility Documents;

	
 
	
(j)
	
it will comply, and conduct its business in such a manner so as to comply with all Applicable Law, including all Applicable Securities Legislation, ERISA and all Environmental Law (including, without limitation, laws relating to the release or threatened release of Hazardous Materials and the manufacture, processing distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials) and Authorizations;

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(k)
	
the Borrower shall promptly, and in any event no later than five Business Days after the Borrower obtains knowledge thereof, deliver written notice to the Lender of the occurrence of: (i) any environmental accident or spill affecting any Credit Party or the Project or (ii) any other condition, event or circumstance that results in non-compliance by any Credit Party or the Project with any Environmental Law or Authorizations that could result in a Material Adverse Effect;

	
 
	
(l)
	
it will: (i) maintain policies of insurance with carriers and in such amounts and covering such risks as are usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Credit Parties operate and otherwise on terms and in such amounts as may be acceptable to the Lender, and add and maintain the Lender as first loss payee and as an additional insured under all such policies to the extent of its interest; and (ii) on an annual basis and/or at any other time, promptly at the request of the Lender, deliver to the Lender evidence of and all certificates and reports prepared in connection with such insurance;

	
 
	
(m)
	
it will immediately notify the Lender in writing upon becoming aware of: (i) any Default, (ii) any suit, proceeding or governmental investigation pending or threatened or any notification of any challenge to the validity of any Authorization, relating to the Credit Parties or any of the Secured Assets, or (iii) the occurrence of any ERISA Event;

	
 
	
(n)
	
it will maintain, preserve and protect or cause to be maintained, preserved and protected the Secured Assets and the Project in accordance with prudent mining industry standards (and in the case of tangible Secured Assets, in good condition subject to normal wear and tear);

	
 
	
(o)
	
no later than 45 days following the end of each Fiscal Quarter, the Borrower shall deliver to the Lender a Compliance Certificate executed by a senior financial officer of the Borrower dated as at the end of the last completed Fiscal Quarter;

	
 
	
(p)
	
no later than the 20th day after the last day of each calendar month, it will provide the Lender with monthly financial and operational reports in respect of such calendar month, consisting of each Credit Party’s consolidated and unconsolidated balance sheet, income statement, statement of accounts payables and accrued liabilities, together with standard monthly costs and operating reports provided to management or the board of directors, in the form agreed with the Lender from time to time, and such other information with respect to the Credit Parties as the Lender may request;

	
 
	
(q)
	
the Borrower will, on a consolidated basis and as determined by reference to the previously filed (or, if applicable pursuant to Section 8.5, delivered) reports and the unconsolidated monthly reports referred to in Section 8.1(p), ensure at all times that:

	
 
	
(i)
	
the amount of its Working Capital Ratio is in excess of 1.15 to 1.00; and

	
 
	
(ii)
	
the amount of its Unrestricted Cash is greater than $3,000,000;

	
 
	
(r)
	
commencing on December 31, 2019 and every three months thereafter (and within 30 days after any material adverse change to the mine plan or inputs to the Model, or upon receipt of any written request of the Lender), the Borrower will deliver an updated Model applying Bloomberg consensus gold and applicable foreign exchange forward prices, stress tested by less/greater than 5%, demonstrating the capacity to meet all future Facility Indebtedness as it comes due (the “Facility Repayment Test”).  The Borrower covenants and agrees to update the Model on a quarterly basis to reflect all revised projections, including mine plans, recoveries, production forecasts, capital expenditures, operating costs and other inputs, as appropriate.  The Borrower shall remedy any breach or deficiency in meeting the 

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Facility Repayment Test, to the satisfaction of the Lender in its sole discretion, within 30 days after the required delivery date of the Model; 

	
 
	
(s)
	
it will timely file all Tax returns as and when required pursuant to Applicable Law and pay and discharge or cause to be paid and discharged, promptly when due, all Taxes imposed upon it or in respect of any of the Secured Assets or upon the income or profits therefrom as well as all claims of any kind (including claims for labour, materials, supplies and rent) which, if unpaid, might become an Encumbrance thereupon; provided however, that it shall not be required to pay or cause to be paid any such Tax if the amount, applicability or validity thereof shall concurrently be contested in good faith by appropriate proceedings diligently conducted;

	
 
	
(t)
	
it will cause all necessary and proper steps to be taken diligently to protect and defend the Secured Assets and the proceeds thereof against any adverse claim or demand, including without limitation, the employment or use of counsel for the prosecution or defence of litigation and the contest, settlement, release or discharge of any such claim or demand;

	
 
	
(u)
	
if and to the extent that it holds or is granted any Encumbrances, it will take all steps necessary to ensure that such Encumbrance is attached, enforceable and continuously perfected under the PPSA (or such similar legislation pursuant to which such Encumbrance is granted) until the obligations it secures are satisfied or it is released for value; and

	
 
	
(v)
	
at all times after the Closing Date, if any existing or future Subsidiary of the Credit Party, other than a Subsidiary of the Credit Party formed under the laws of Mexico, has earnings before interest, tax, depreciation and amortization representing 5% or more of the earnings before interest, tax, depreciation and amortization of the Borrower on a consolidated basis or has gross assets or turnover (excluding turnover relating to items from any Credit Parties or other Subsidiaries of any Credit Parties) representing 5% or more of the gross assets or turnover of the Borrower on a consolidated basis, such Subsidiary shall (and the Borrower will ensure that such Subsidiary shall):

	
 
	
(i)
	
promptly (and in any event within 10 Business Days following demand by the Lender) accede to this Agreement as a Guarantor pursuant to an accession agreement to be agreed between the Lender and the Borrower and such Subsidiary, which accession shall include the delivery of customary conditions precedent documentation, including that Subsidiary’s Constating Documents, appropriate authorizations and confirmations and a legal opinion of counsel to the Credit Parties in the jurisdiction of that Subsidiary in a form satisfactory to the Lender, and grant to the Lender an unlimited guarantee substantially similar to the Guarantees; and

	
 
	
(ii)
	
promptly (and in any event within 10 Business Days following demand by the Lender) arrange for a share pledge, in a form satisfactory to the Lender, granting a first priority Encumbrance over all of the issued and outstanding shares in its capital to and in favour of the Lender to be delivered by the holders of such shares, together with any necessary or desired registration, perfection, filing, opinions and further assurance steps as the Lender may determine, and together with any other documents reasonably requested by the Lender in order to evidence the validity and enforceability of such share pledge;

	
 
	
(w)
	
if, after the date hereof, the Lender, through information received from any Governmental Authority or any other Person as a result of a request for information delivered by or on behalf of the Lender or otherwise, identifies any adverse condition or circumstance relating to any Credit Party or the Project which could result in a Material Adverse Effect, it shall take all steps as may be required by the Lender to remedy any such adverse condition or circumstance to the satisfaction of the Lender;

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(x)
	
on or before the date which is 60 days after the Closing Date, it will use commercially reasonable efforts to deliver to the Lender a fully executed original Hall Lease Consent, in recordable form, together with all such other documents and instruments as the Lender or its counsel may reasonably require to effect the recordation of same against the properties referred to therein;

	
 
	
(y)
	
on or before the date which is 60 days after the Closing Date, it will use commercially reasonable efforts to deliver to the Lender a fully executed original Caterpillar Consent;

	
 
	
(z)
	
on or before the date which is 45 days after the Closing Date, the Borrower will deliver to the Lender evidence of the full and final release and discharge of the UCC financing statement filed with the Delaware Secretary of State on July 29, 2016 under registration number 2016 4613798 in favour of Macquarie Bank Limited (the “Macquarie Bank UCC Registration”); and

	
 
	
(aa)
	
until the Borrower shall have delivered to the Lender evidence of the full and final release and discharge of the Macquarie Bank UCC Registration, no Credit Party shall incur any indebtedness or obligation whatsoever to Macquarie Bank Limited.

Negative Covenants of the Credit Parties

	
 
	
8.2
	
Each Credit Party hereby covenants and agrees with the Lender that, except with prior written consent of the Lender, it will not:

	
 
	
(a)
	
directly or indirectly issue, incur, assume or otherwise become liable for or in respect of any Indebtedness other than Permitted Indebtedness;

	
 
	
(b)
	
directly or indirectly create, incur, assume, permit or suffer to exist any Encumbrance against any of their properties or assets, including, without limitation, any of the Secured Assets or the Material Contracts, other than Permitted Encumbrances;

	
 
	
(c)
	
convey, sell, lease, assign, transfer or otherwise dispose of (i) any of its properties or assets other than pursuant to a Permitted Disposal or (ii) directly or indirectly, any interest in the Borrower or any other Credit Party;

	
 
	
(d)
	
enter into or materially amend, modify, vary or terminate any Material Contract, license, permit or other Authorization now or hereafter held by any of the Credit Parties;

	
 
	
(e)
	
enter into any scheme for the reconstruction or reorganization of it or any of its Subsidiaries or for the consolidation, amalgamation, merger, arrangement or similar transaction of it or any of its Subsidiaries with or into any other Person (a “Reorganization Transaction”); provided however, that the Lender agrees to act reasonably in connection with any request of a Credit Party for the Lender’s consent to such Credit Party entering into a Reorganization Transaction, and further provided that, it shall not be unreasonable for the Lender to withhold its consent to such Reorganization Transaction if in the Lender’s sole opinion the Reorganization Transaction would have any adverse effect on any Credit Party, its creditworthiness, the ability of the Credit Parties to pay and discharge all Facility Indebtedness and all obligations under the Facility Documents or the Lender’s security which secures all Facility Indebtedness and all obligations under the Facility Documents;

	
 
	
(f)
	
make any payment, repayment, prepayment on, purchase, redeem, or otherwise acquire or retire for value, prior to any scheduled final maturity, any Indebtedness other than the Facility Indebtedness or the Existing Caterpillar Indebtedness up to a maximum amount equal to the amount permitted under Subsection (i) of the definition of Permitted Indebtedness; 

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(g)
	
purchase, redeem, retire, repurchase and cancel or otherwise acquire for cash any Equity Interest;

	
 
	
(h)
	
make any change to its Constating Documents in a manner that adversely affects the interests of the Lender or any Encumbrance granted to the Lender under the Security Documents;

	
 
	
(i)
	
change its name without at least 15 days’ prior written notice to the Lender;

	
 
	
(j)
	
continue from its jurisdiction of incorporation into any other jurisdiction;

	
 
	
(k)
	
transfer or permit the transfer of any Equity Interests of the Credit Party or otherwise allow the Credit Party to cease to be direct or indirect wholly-owned Subsidiary of the Borrower;

	
 
	
(l)
	
except for the Permitted Royalty Payments, pay any royalties or other similar obligations;

	
 
	
(m)
	
declare, make, provide for or pay any Distribution;

	
 
	
(n)
	
advance or make any payment in relation to any shareholder loan or other indebtedness to any non-arm's-length party (excluding (i) any inter-company Indebtedness between any Credit Parties and (ii) up to $400,000 per calendar year paid to Rye Patch Gold US Inc., to be used by Rye Patch Gold US Inc. to pay certain leasehold and other expenses incurred in the ordinary course of business, as such business was conducted on the date of this Agreement) or enter into any transaction with any non-arm's-length party; 

	
 
	
(o)
	
make any payment to any shareholder or Affiliate of the Credit Party unless such payment is permitted hereunder and, in each case, provided no Default has occurred;

	
 
	
(p)
	
provide any Financial Assistance to any Person other than Financial Assistance which constitutes Permitted Indebtedness; 

	
 
	
(q)
	
incur any Contingent Liability for the obligations of any other Person, directly or indirectly, other than any Contingent Liability which constitutes Permitted Indebtedness;

	
 
	
(r)
	
enter into or become party or subject to any dissolution, winding-up, reorganization, arrangement or similar transaction or proceeding; 

	
 
	
(s)
	
engage in the conduct of any business other than the business of the Credit Party as existing on the date of this Agreement or in businesses reasonably related thereto on a basis consistent with the conduct of such business as conducted on the date of this Agreement; 

	
 
	
(t)
	
create or acquire any Subsidiary except in compliance with Section 8.1(v); or

	
 
	
(u)
	
maintain, or have any obligation or liability in relation to, any Pension Plan.

Continued Listing

	
 
	
8.3
	
The Borrower shall take all reasonable steps and actions as may be required to maintain the listing and posting for trading of the Common Shares on the Exchanges and to maintain its status as a “reporting issuer” (or the equivalent thereof) not in default of the requirements of the Applicable Securities Legislation.

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To Pay Lender’s Fees and Expenses

	
 
	
8.4
	
The Borrower will pay for the Lender's reasonable legal fees (on a solicitor and own-client basis) and all other reasonable costs, charges and expenses (including all due diligence expenses) of and incidental to the preparation, execution and completion of this Agreement and the other Facility Documents (including notaries’ and translator’s fees where such notarial and translation services are customarily required), and all amendments thereto, and as may be required by the Lender or the Lender’s Counsel to complete or facilitate the transactions contemplated herein and to administer the Facility, including but not limited to technical consulting and other due diligence and ongoing compliance and monitoring costs.  The Borrower further covenants and agrees to pay all of the Lender's legal fees (on a solicitor and own-client basis) and all other costs, charges and expenses of and incidental to the recovery of all amounts owing hereunder, including but not limited to those incurred in connection with any enforcement or realization proceedings under or in connection with this Agreement and/or any of the other Facility Documents, including the Security Documents.  All amounts referred to herein will be payable upon demand.  If not paid within three Business Days of demand, all such amounts shall accrue interest at the rate set forth in Section 2.5 from the date of demand.  On or subsequent to the date of execution of the Term Sheet, the Borrower deposited with the Lender a retainer of $100,000, which amount shall be credited against the Borrower’s obligation to pay the Lender’s legal fees pursuant this Section 8.4.

Comply with Continuous Disclosure Obligations

	
 
	
8.5
	
The Borrower shall timely file all documents that must be publicly filed or sent to its shareholders pursuant to Applicable Securities Legislation within the time prescribed by such Applicable Securities Legislation and make such documents available on SEDAR within such prescribed time period.  If the Borrower is not at any time subject to Applicable Securities Legislation, the Borrower shall deliver to the Lender: (i) within 90 days after the end of each fiscal year, copies of its annual report and audited annual financial statements, and (ii) within 45 days after the end of each of the first three Fiscal Quarters of each fiscal year, interim financial statements which shall, at a minimum, contain such information required to be provided in quarterly reports by a “reporting issuer” (as such term is defined in such Applicable Securities Legislation) under the Applicable Securities Legislation.  Each of such reports will be prepared in accordance with the disclosure requirements of Applicable Securities Legislation.

To Pay Additional Amounts

	
 
	
8.6
	
Each Credit Party will, from time to time, promptly pay or make provisions satisfactory to the Lender for the payment of any additional amounts, including Taxes, which may be imposed on such Credit Party by any Applicable Law (except income tax or security transfer tax, if any) which shall be payable with respect to the Facility.

	
 
	
8.7
	
Any and all payments by or on account of any obligation of the Credit Parties hereunder or under any other Facility Document shall be made free and clear of and without deduction or withholding for any Taxes except as required by Applicable Law. If any Credit Party is required by Applicable Law to deduct or withhold any Taxes from such payments, then:

	
 
	
(a)
	
the amount payable by the applicable Credit Party shall be increased so that after all such required deductions or withholdings are made (including deductions or withholdings applicable to additional amounts payable under this Section), the Lender receives an amount equal to the amount it would have received had no such deduction or withholding been made, and

	
 
	
(b)
	
such Credit Party shall make such deductions or withholdings and pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law.

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8.8
	
The Lender shall (within three Business Days of demand by the Lender) pay to the Lender an amount equal to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered for or on account of Tax by the Lender in respect of any Facility Document.

Further Assurances

	
 
	
8.9
	
Each of the Credit Parties shall, from time to time, as may be required by the Lender, execute and deliver such further and other documents and do all matters and things which are necessary to carry out the intention and provisions of this Agreement. 

Lender May Perform Covenants

	
 
	
8.10
	
If any of the Credit Parties shall fail to perform any of its respective covenants contained in this Agreement or any of the other Facility Documents, the Lender may, upon becoming aware of such failure, in its discretion, but need not, itself perform any of such covenants capable of being performed by it, but is under no obligation to do so.  All sums so required to be paid in connection with the Lender’s performance of any covenant will be paid by the Credit Parties and all sums so paid shall be payable by the Credit Parties in accordance with the provisions of Section 8.4.  No such performance by the Lender of any such covenant or payment or expenditure by any Credit Party of any sums advanced or borrowed by the Lender pursuant to the foregoing provisions shall be deemed to relieve any of the Credit Parties from any default hereunder or their respective continuing obligations hereunder.

Article 9
DEFAULT AND ENFORCEMENT

Events of Default

	
 
	
9.1
	
The occurrence of any one or more of the following events shall constitute an “Event of Default” hereunder: 

	
 
	
(a)
	
if the Borrower fails to make any payment of any principal amount of the Facility or interest payable hereunder, when due;

	
 
	
(b)
	
if the Borrower fails to pay any fees, costs, expenses or other amounts or charges payable hereunder when due and such failure shall continue unremedied for a period of three (3) Business Days thereafter;

	
 
	
(c)
	
if any Credit Party defaults in observing or performing any covenant or condition set out in Sections 8.1(o), 8.1(p), 8.1(q) or 8.1(r) or Section 8.2;

	
 
	
(d)
	
if any Credit Party defaults in observing or performing any covenant or condition of this Agreement or any other Facility Document  (other than any covenant or condition referred to in Section 9.1(a), 9.1(b) or 9.1(c)) on its part to be observed or performed and, with respect to such covenants or conditions which are capable of being cured, if such default continues for a period of fifteen (15) Business Days, after the earlier of knowledge thereof by the relevant Credit Party or notice thereof from the Lender;

	
 
	
(e)
	
any Facility Document ceases to be in full force and effect or any Security Document ceases to constitute a valid and perfected first priority Encumbrance (subject only to Permitted Encumbrances) upon all the Secured Assets it purports to charge or encumber, in favour of the Lender;

	
 
	
(f)
	
the institution by any Credit Party of proceedings to be adjudicated a bankrupt or insolvent or any similar proceedings or the seeking by it of liquidation, reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) or relief under any applicable 

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federal, provincial, state or other law relating to bankruptcy, insolvency, reorganization or relief of debtors, or the filing by it of any such petition or to the appointment under any such law of a receiver, administrator, receiver-manager, liquidator, assignee, trustee or other similar official of any Credit Party of all or substantially all of its property, or the making by it of a general assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due;

	
 
	
(g)
	
any proceedings are commenced by a Person other than a Credit Party for the bankruptcy, insolvency, administration, reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise), winding-up, liquidation or dissolution or any similar proceedings of such Credit Party;

	
 
	
(h)
	
the entry of a decree or order by a court having jurisdiction adjudging any Credit Party to be bankrupt or insolvent or approving as properly filed an application or a petition seeking liquidation, administration, reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise), arrangement or adjustment of or in respect of such Credit Party under any Applicable Law relating to bankruptcy, insolvency, reorganization or relief of debtors, or appointing under any such law a receiver, receiver-manager, liquidator, administrator, assignee, trustee or other similar official of such Credit Party or of all or substantially all of its property, or ordering pursuant to any such law the winding-up or liquidation of its affairs; 

	
 
	
(i)
	
an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect;

	
 
	
(j)
	
this Agreement or any other Facility Document is claimed by any Credit Party to cease in whole or in any part to be a legal, valid, binding and enforceable obligation of such Credit Party;

	
 
	
(k)
	
this Agreement or any other Facility Document shall for any reason cease in whole or in any part to be a legal, valid, binding and enforceable obligation of the Credit Party;

	
 
	
(l)
	
any Credit Party fails to pay the principal of, premium, if any, interest on, or any other amount owing in respect of any of its Indebtedness or obligation which is outstanding in an aggregate principal amount exceeding $1,000,000 when such amount becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such failure continues after the applicable grace or cure period, if any, specified in the agreement or instrument relating to such Indebtedness or obligation; or any other event occurs or condition exists and continues after the expiry of the applicable grace or cure period, if any, specified in any agreement or instrument relating to any such Indebtedness or obligation, if its effect is to accelerate or permit the acceleration of, such Indebtedness or obligation; or any such Indebtedness or obligation shall be, or may be, declared to be due and payable prior to its stated maturity, in each case in respect of any of its Indebtedness or obligation which is outstanding in an aggregate principal amount exceeding $1,000,000; 

	
 
	
(m)
	
any representation or warranty given by any Credit Party in this Agreement or any other Facility Document shall prove to be incorrect or misleading; 

	
 
	
(n)
	
the occurrence or existence of any event or circumstance which has or could have a Material Adverse Effect, in the opinion of the Lender, in its sole discretion;

	
 
	
(o)
	
any destruction, suspension or abandonment of the Project or any part thereof;

	
 
	
(p)
	
if any of the Credit Parties or their Subsidiaries cease or threatened to cease to carry on business;

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(q)
	
upon the occurrence of a Change of Control; provided that, such Change of Control shall not constitute an Event of Default if (i) not less than 10 days’ prior to any proposed Change of Control the Borrower shall have delivered to the Lender an updated Model reflecting such Change of Control, demonstrating (A) the ability of the Borrower or the surviving corporation to satisfy the Facility Repayment Test and (B) the Borrower’s or the surviving corporation’s compliance with Section 8.1(q) and (ii) on or before the date of such Change of Control, the Lender shall have confirmed to the Borrower in writing its satisfaction with the Model, the ability of the Borrower or the surviving corporation to satisfy the Facility Repayment Test and the Borrower’s or the surviving corporation’s compliance with Section 8.1(q); 

	
 
	
(r)
	
final non-appealable judgments or decrees for the payment of money in excess of $1,000,000 in the aggregate, are rendered against any Credit Party by any courts having jurisdiction, and such judgments or decrees have not been paid in full by any Credit Party within 30 days after such judgments or decrees have become final non-appealable judgments or decrees; 

	
 
	
(s)
	
if the Borrower ceases to own, directly or indirectly, 100% of the shares and other Equity Interests in the capital of any other Credit Party; or

	
 
	
(t)
	
(i) the Borrower is in default of any material provision under any Material Contract and that default continues unremedied after the relevant cure period provided for under such Material Contract or (ii) if any Material Contract is terminated or cancelled, or is amended in any material respect, without the prior written consent of the Lender.

Acceleration on Default

	
 
	
9.2
	
If any Event of Default shall occur and be continuing, the Lender may, by notice to the Borrower, declare its commitment to advance the Facility or any portion thereof to be terminated, whereupon the same shall forthwith terminate, and may declare the entire unpaid principal amount of the Facility, all interest accrued and unpaid thereon and all other fees, charges, costs and other amounts hereunder to be forthwith due and payable, whereupon the principal amount of the Facility, all such accrued interest and all other fees, charges, costs and other amounts hereunder shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower, provided that upon the occurrence of any Event of Default under Section 9.1(f), Section 9.1(g) or Section 9.1(h), the Lender’s commitment to make the Advance or any portion thereof shall  immediately terminate and the Facility Indebtedness, including the entire unpaid principal amount of the Facility, all interest accrued and unpaid thereon and all other fees, charges, costs and other amounts owing under any of the Facility Documents shall be immediately due and payable, without presentment, demand, protest or notice of any kind, automatically without the giving of any such notice by the Lender; and thereupon, the Lender may exercise any or all of the Lender’s rights and remedies under the Security Documents, and proceed to enforce all other rights and remedies available to the Lender under this Agreement, the Security Documents, any other Facility Documents and Applicable Law.

Waiver of Default

	
 
	
9.3
	
If an Event of Default shall have occurred, the Lender shall have the power to waive such Event of Default if, in the Lender’s opinion, the same shall have been cured or adequate provision made therefor, upon such terms and conditions as the Lender may consider advisable, provided that no delay or omission of the Lender to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or acquiescence therein and provided further that no act or omission of the Lender shall extend to or be taken in any manner whatsoever to affect any subsequent Event of Default hereunder or the rights resulting therefrom.

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Enforcement by the Lender

	
 
	
9.4
	
If an Event of Default shall have occurred, but subject to Section 9.3:

	
 
	
(a)
	
the Lender may in its sole discretion proceed to enforce, and to instruct any other Person to enforce, the rights of the Lender by any action, suit, remedy or proceeding authorized or permitted by this Agreement or any of the Security Documents or any other Facility Document or by law or equity; and may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Lender lodged, filed or otherwise recorded in any bankruptcy, administration, insolvency, winding-up or other judicial proceedings relating to any Credit Party; and

	
 
	
(b)
	
no such remedy for the enforcement of the rights of the Lender shall be exclusive of or dependent on any other such remedy but any one or more of such remedies may from time to time be exercised independently or in combination. 

Application of Moneys

	
 
	
9.5
	
Except as otherwise provided herein, any moneys arising from any enforcement by the Lender under any of the Facility Documents or other proceedings against any Credit Party pursuant to any of the Facility Documents or from any trustee in bankruptcy or liquidation of any of the Credit Parties, shall be held by the Lender and applied by it, together with any moneys then or thereafter in the hands of the Lender available for the purpose of distribution to the Lender, as follows:

	
 
	
(a)
	
first, in payment or reimbursement to the Lender of the remuneration, expenses, disbursements, and advances of the Lender earned, incurred or made in the administration or enforcement any of the Facility Documents or otherwise in relation to any of the Facility Documents with interest thereon as herein provided;

	
 
	
(b)
	
second (but subject to Section 8.4 and this Section 9.5), in or towards payment of all Amounts Payable; and 

	
 
	
(c)
	
third, the surplus (if any) of such moneys shall be paid to the Borrower or as it may direct.

Persons Dealing with Lender

	
 
	
9.6
	
No Person dealing with the Lender or any of its agents shall be required to enquire whether an Event of Default has occurred, or whether the powers which the Lender is purporting to exercise have become exercisable, or whether any moneys remain due under this Agreement, or to see to the application of any moneys paid to the Lender, and in the absence of fraud on the part of such Person, such dealing shall be deemed to be within the powers hereby conferred and to be valid and effective accordingly.

Lender Appointed Attorney

	
 
	
9.7
	
The Credit Parties irrevocably appoint the Lender to be the attorney of the Credit Parties in the name and on behalf of the Credit Parties to execute any instruments and do any things which the Credit Parties ought to execute and do, and has not executed or done, under the covenants and provisions contained in this Agreement and generally to use the name of the Credit Parties in the exercise of all or any of the powers hereby conferred on the Lender with full powers of substitution and revocation.  Such power of attorney, being coupled with an interest, is irrevocable.

Remedies Cumulative

	
 
	
9.8
	
No remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to 

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every other remedy given hereunder or under any Facility Document or now or hereafter existing by law or by statute.

Set-Off

	
 
	
9.9
	
In addition to any rights now or hereafter granted under Applicable Law, and not by way of limitation of any such rights, the Lender is authorized, at any time that an Event of Default has occurred and is continuing without notice to the Borrower or to any other Person, any such notice being expressly waived by the Borrower, to set-off, appropriate and apply any and all deposits, matured or unmatured, general or special, and any other indebtedness at any time held by or owing by the Lender to or for the credit of or the account of the Borrower against and on account of the obligations and liabilities of the Borrower which are due and payable to the under the Facility Documents.

Article 10
NOTICES

Notice to the Borrower

	
 
	
10.1
	
Any notice to the Credit Parties under the provisions of this Agreement or any other Facility Document shall be valid and effective if delivered personally, by email, courier or facsimile transmission to or, if given by registered mail, postage prepaid, addressed to, the relevant Credit Party at  Suite 507 - 700 West Pender Street, Vancouver, British Columbia, Canada, V6C 1G8, [Redacted: Confidential fax number and email address], Attention: Mark Backens, CEO and President and shall be deemed to have been given on the date of personal delivery if on a Business Day and otherwise on the next Business Day, on the date of sending if by courier or by email or facsimile transmission if so delivered or sent prior to 5:00 p.m. (Toronto time) on a Business Day and otherwise on the next Business Day, or on the fifth Business Day after such letter has been mailed, as the case may be.  Any Credit Party may from time to time notify the Lender of a change in address which thereafter, until changed by further notice, shall be the address of the Credit Party for all purposes of this Agreement.

Notice to the Lender

	
 
	
10.2
	
Any notice to the Lender under the provisions of this Agreement shall be valid and effective if delivered personally, by email, courier or facsimile transmission to or, if given by registered mail, postage prepaid, addressed to the Lender at its principal office at Suite 2600, 200 Bay Street, Toronto, ON  M5J 2J2, [Redacted: Confidential telephone number, fax number and email address], Attention: Chief Financial Officer, and shall be deemed to have been given on the date of personal delivery if on a Business Day and otherwise on the next Business Day, on the date of sending if by courier or by email or facsimile transmission if so delivered prior to 5:00 p.m. (Toronto time) on a Business Day and otherwise on the next Business Day or on the fifth Business Day after such letter has been mailed, as the case may be.  The Lender may from time to time notify the Borrower of a change in address which thereafter, until changed by further notice, shall be the address of the Lender for all purposes of this Agreement.

Waiver of Notice

	
 
	
10.3
	
Any notice provided for in this Agreement may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. 

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Article 11
indemnities

General Indemnity

	
 
	
11.1
	
Each of the Credit Parties expressly declares and agrees as follows:

	
 
	
(a)
	
the Lender, its partners and its and their directors, officers, employees, and agents, and all of their respective representatives, heirs, successors and assigns (collectively the “Indemnified Parties”) will at all times be indemnified and saved harmless by the Credit Parties from and against all claims, demands, losses, actions, causes of action, costs, charges, expenses, damages and liabilities whatsoever arising in connection with this Agreement and the other Facility Documents, including, without limitation, those arising out of or related to actions taken or omitted to be taken by the Lender contemplated hereby, legal fees and disbursements on a solicitor and own client basis and all costs and expenses incurred in connection with the enforcement of this indemnity, which the Lender may suffer or incur, whether at law or in equity, in any way caused by or arising, directly or indirectly, in respect of any act, deed, matter or thing whatsoever made, done, acquiesced in or omitted in or about or in relation to the execution of its duties as Lender and including any act, deed, matter or thing in relation to the registration, perfection, release or discharge of security.  The foregoing provisions of this subsection do not apply in any circumstances where any Indemnified Party was grossly negligent or acted with wilful misconduct in relation to their obligations hereunder. This indemnity shall survive the termination of this Agreement and any transfer and/or assignment by the Lender of any of its rights and/or obligations; and

	
 
	
(b)
	
the Lender may act and rely and shall be protected in acting and relying upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, letter, telegram, cable, facsimile or other paper or electronic document reasonably believed by it to be genuine and to have been signed, sent or presented by or on behalf of the proper party or parties.

Environmental Indemnity

	
 
	
11.2
	
Each of the Credit Parties hereby indemnifies and holds harmless the Indemnified Parties against any loss, expense, claim, proceeding, judgment, liability or asserted liability (including strict liability and including costs and expenses of abatement and remediation of spills or releases of any Hazardous Substance and including liabilities of the Indemnified Parties to third parties (including Governmental Authorities) in respect of bodily injuries, property damage, damage to or impairment of the environment or any other injury or damage and including liabilities of the Indemnified Parties to third parties for the third parties' foreseeable and unforeseeable consequential damages) incurred as a result of or in connection with the administration or enforcement of this Agreement or any other Facility Document, including the exercise by the Lender of any rights hereunder or under any other Facility Document, which result from or relate, directly or indirectly, to:

	
 
	
(a)
	
the presence or release of any Hazardous Substance, by any means or for any reason, on the Secured Assets, whether or not the release or presence of such Hazardous Substance was under the control, care or management of any Credit Party or of a previous owner, or of a tenant or any other Person; or

	
 
	
(b)
	
the breach or alleged breach of any Environmental Laws by the Credit Party.

The foregoing provisions of this Section do not apply in any circumstances where any Indemnified Party was grossly negligent or acted with wilful misconduct in relation to their obligations hereunder. For purposes of this Section, “liability” shall include (a) liability of an Indemnified Party for costs 

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and expenses of abatement and remediation of spills and releases of any Hazardous Substance, (b) liability of an Indemnified Party to a third party to reimburse the third party for bodily injuries, property damages and other injuries or damages which the third party suffers, including (to the extent, if any, that the Indemnified Party is liable therefor) foreseeable and unforeseeable consequential damages suffered by the third party, (c) liability of the Indemnified Party for damage suffered by the third party, (d) liability of an Indemnified Party for damage to or impairment of the environment and (e) liability of an Indemnified Party for court costs, expenses of alternative dispute resolution proceedings, and fees and disbursements of expert consultants and legal counsel on a solicitor and client basis.

Action by Lender to Protect Interests

	
 
	
11.3
	
The Lender shall have the power to institute and maintain all and any such actions, suits or proceedings and to take any other action as it may consider necessary or expedient to preserve, protect or enforce its interests. 

Article 12
miscellaneous

Amendments and Waivers

	
 
	
12.1
	
No amendment to any provision of the Facility Documents shall be effective unless it is in writing and has been signed by the Lender and the Credit Parties who are party to that Facility Document, and no waiver of any provision of any Facility Document, or consent to any departure by the relevant Credit Party therefrom, shall be effective unless it is in writing and has been signed by the Lender.  Any such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

No Waiver; Remedies Cumulative

	
 
	
12.2
	
No failure on the part of the Lender to exercise, and no delay in exercising, any right, remedy, power or privilege under any Facility Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights and remedies under the Facility Documents are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Lender.

Survival

	
 
	
12.3
	
All covenants, agreements, representations and warranties made in any of the Facility Documents shall, except to the extent otherwise provided therein, survive the execution and delivery of this Agreement and the Advance, and shall continue in full force and effect so long as any part of the Facility Indebtedness remains outstanding or any other obligation remains unpaid or any obligation to perform any other act hereunder or under any other Facility Document remains unsatisfied.

Benefits of Agreement

	
 
	
12.4
	
The Facility Documents are entered into for the sole protection and benefit of the parties hereto and their successors and assigns, and no other Person (other than the Indemnified Parties) shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection with, any Facility Document.

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Binding Effect; Assignment; Syndication

	
 
	
12.5
	
This Agreement shall become effective when it shall have been executed by the parties hereto and thereafter shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns.  The Credit Parties shall not have the right to transfer and/or assign their rights and obligations hereunder or under the other Facility Documents or any interest herein or therein without the prior written consent of the Lender, which may be withheld in the Lender’s sole discretion.  The Lender reserves the right to sell, assign, transfer or grant participations in all or any portion of the Lender’s interests, rights and obligations hereunder and under the other Facility Documents to any other Person other than a regulated Canadian or US based bank or financial institution, upon notice to, but without the consent of, the Borrower.  The Lender shall not sell, assign, transfer or grant participations in all or any portion of the Lender’s Interests, rights and obligations hereunder or under the other Facility Documents to any regulated Canadian or US based bank or financial institution, except (i) prior to any Event of Default which is continuing, with the prior written consent of the Borrower, such consent not to be unreasonably withheld and (ii) after any Event of Default which is continuing, upon notice to, but without the consent of, the Borrower.  In the event of any sale, assignment or transfer by the Lender of all of its interests, rights and obligations hereunder and under the other Facility Documents, upon notice thereof to the Borrower, the purchaser, assignee or transferee (as the case may be) shall be deemed the “Lender” for all purposes of the Facility Documents with respect to the rights and obligations sold, assigned or transferred (as the case may be) to it, the obligations of the Lender so sold, assigned or transferred (as the case may be) shall thereupon terminate and the selling, assigning or transferring (as the case may be) Lender shall be released from all obligations to the Credit Parties in respect thereof.  The Credit Parties shall, from time to time upon request of the Lender at the Lender’s expense, enter into such amendments to the Facility Documents and execute and deliver such other documents as shall be necessary to effect any such sales, assignments or transfers and maintain the first priority perfected Encumbrance created by the Security Documents.  The Credit Parties acknowledge and agree that the Lender is authorized to disclose to any purchaser, assignee, transferee or participant and any prospective purchaser, assignee, transferee or participant any and all financial and other information concerning the Credit Parties, their respective properties and assets and the Facility and any other transactions contemplated herein, whether received by the Lender or derivative thereof, in connection with the Lender’s credit evaluation, internal reporting, or other activities reasonably incidental to the management or administration of the Facility, including in connection with the enforcement thereof, provided always that such disclosure is made to recipients on a confidential basis.  The Credit Parties acknowledge that the Lender may grant Encumbrances over all of its rights, interests and entitlements under this Agreement and/or any other Facility Document to any Person (including any Person lending funds to the Lender or any of its Affiliates).

Maximum Return

	
 
	
12.6
	
Notwithstanding any other provision of this Agreement or any other Facility Document:

	
 
	
(a)
	
in this Section 12.6, “interest” and “credit advanced” have the meanings ascribed to them in section 347 of the Criminal Code (Canada), and “Maximum Rate” means the highest effective annual rate of interest calculated in accordance with generally accepted actuarial practices and principles, on the credit advanced under an agreement or arrangement, which is lawfully permitted under section 347 of the Criminal Code (Canada);

	
 
	
(b)
	
if, by entering into this Agreement and the other Facility Documents, the Lender has entered into an agreement or arrangement to receive interest, on the credit advanced under this Agreement, in an amount which exceeds the Maximum Rate, then the interest will be reduced to the extent required to eliminate such excess (in the manner specified below);

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(c)
	
if interest in the aggregate, on the credit advanced under this Agreement, is or is about to be received in an amount which exceeds the Maximum Rate, then the interest will be reduced, with retroactive effect, to the extent required to eliminate such excess (in the manner specified below), and if and to the extent so reduced the Lender will return the same; and

	
 
	
(d)
	
any reduction of interest pursuant to Section 12.6(b) or Section 12.6(c) will be made in the following order (in each case, only to the extent required): firstly, a reduction of the amount or rate of interest payable under Section 2.5; secondly, a reduction of the amounts to be paid on account of the Lender’s legal fees and other out-of-pocket expenses; and lastly, a reduction of any other amounts which constitute interest, as the Lender may determine.

In the event of a dispute in relation to this Section 12.6, a certificate of a Fellow of the Canadian Institute of Actuaries qualified for a period of at least ten (10) years and appointed by the Lender will be conclusive for the purposes of such determination.  A certificate of an authorized signing officer of the Lender as to each amount, rate and/or other component of interest payable hereunder or in connection herewith from time to time shall be conclusive evidence of such amount, rate and/or other component, absent manifest error.

Judgment Currency

	
 
	
12.7
	
If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent permitted by Applicable Law, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Lender could purchase Dollars with such other currency at the buying spot rate of exchange in the foreign exchange markets on the Business Day immediately preceding that on which any such judgment, or any relevant part thereof, is given.

	
 
	
12.8
	
The obligations of the Credit Parties in respect of any sum due to the Lender hereunder and under the other Facility Documents shall, notwithstanding any judgment in a currency other than Dollars, be discharged only to the extent that on the Business Day following receipt by the Lender of any sum adjudged to be so due in such other currency the Lender may, in accordance with normal banking procedures, purchase Dollars with such other currency. If the amount of Dollars so purchased is less than the sum originally due to the Lender in Dollars, each of the Credit Parties agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify the Lender against such loss.

Entire Agreement

	
 
	
12.9
	
The Facility Documents reflect the entire agreement between the parties hereto with respect to the matters set forth herein and therein and supersede any prior agreements, commitments, drafts, communication, discussions and understandings, oral or written, with respect thereto, including but not limited to the Term Sheet.

Joint and Several

	
 
	
12.10
	
The covenants, agreements, representations, warranties, acknowledgments of the Credit Parties in this Agreement shall constitute the joint and several covenants, agreements, representations, warranties, acknowledgments of the Credit Parties and shall be read and construed accordingly.

Payments Set Aside

	
 
	
12.11
	
To the extent that any payment by or on behalf of the Borrower is made to the Lender, or the Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Lender in its discretion) to be repaid to 

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a trustee, receiver or any other Person, in connection with any proceeding under the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada), the Winding-up and Restructuring Act (Canada) or other Applicable Law, or otherwise, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such set-off had not occurred.

Severability

	
 
	
12.12
	
Whenever possible, each provision of the Facility Documents shall be interpreted in such manner as to be effective and valid under all Applicable Laws. If, however, any provision of any of the Facility Documents shall be prohibited by or invalid under any such Applicable Law in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such Applicable Law, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of such Facility Document, or the validity or effectiveness of such provision in any other jurisdiction.

Counterparts and facsimile

	
 
	
12.13
	
This Agreement may be executed in counterparts and such executed counterparts may be delivered by electronic transmission of an authorized signature (including in pdf) and each such counterpart shall be deemed to form part of one and the same document.

[signature pages follow]

 

 

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-  -

 

IN WITNESS WHEREOF the parties hereto have executed this Agreement under the hands of their proper officers duly authorized in that behalf.

ALIO GOLD INC.

Per:(signed) “Mark Backens” 
Authorized Signatory

ALIO GOLD (US) INC.

Per:(signed) “Mark Backens”
Authorized Signatory

RYE PATCH MINING US INC.

Per:(signed) “Mark Backens”
Authorized Signatory

FLORIDA CANYON MINING INC.

Per:(signed) “Mark Backens”
Authorized Signatory

 

 

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-  -

 

 

SPROTT PRIVATE RESOURCE LENDING II (COLLECTOR), LP,
by its general partner, SPROTT RESOURCE LENDING CORP.

Per:(signed) “Jim Grosdanis” 
Authorized Signatory

Per:(signed) “Narinder Nagra” 
Authorized Signatory

 

 

 

 

CAN: 31475467.16

 

Schedule A
Project

 

Part 1 - Legal Description of Owned Land

The following real property interests located in Pershing County, Nevada:

 

Pershing County, Nevada APN Nos.:

 

008-170-10

008-170-13

008-170-25

008-200-09

008-210-10

008-210-18

008-210-19

008-690-02

008-690-04

008-690-19

008-690-20

008-690-21

008-690-26

008-690-27

008-690-29

008-690-55

008-690-24

008-690-03

008-700-17

 

Owned Real Property

 

Fee ownership in the following lands:

 

APN 008-170-10

 

Township 32 North, Range 33 East, MDB&M

Section 13:All lying southeasterly of HWY 80

Acres:90.540

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-170-13

 

Township 32 North, Range 33 East, MDB&M

Section 23:Portion lying south & southeasterly of HWY 80

Acres:147.150

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-170-25

 

Township 32 North, Range 33 East, MDB&M

Section 35:ALL (Surface Only)

Acres:640.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-200-09

CAN: 31475467.16

- 2 -

 

 

Township 32 North, Range 33 East, MDB&M

Section 27:Portion in E1/2SW1/4 lying northerly of I-80

Acres:5.390

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-210-10

 

Township 32 North, Range 33 East, MDB&M

Section 34:Parcel located in S1/2NW1/4 – at Humboldt Interchange

Acres:3.950

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-210-18

 

Township 32 North, Range 33 East, MDB&M

Section 34:W1/2SW1/4 (lying southerly & easterly of I-80 R/W)

Acres:61.670

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-210-19

 

Township 32 North, Range 33 East, MDB&M

Section: 33:Portion of E1/2E1/2 (lying southerly of I-80 R/W)

Acres:3.330

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-02

 

Township 31 North, Range 33 East, MDB&M

Section 1:SW1/4; SW1/4SE1/4; LOT 5 of SE1/4

Acres:235.130

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-04

 

Township 31 North, Range 33 East, MDB&M

	
Section 3:
	
All less .76 acres SPRR R/W; less 51.42 acres across W1/2 of NW1/4 & Lot 2 of NW1/4 for I-80 R/W; less 13.67 acres RR R/W

Acres:578.500

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-19

 

Township 31 North, Range 33 East, MDB&M

Section 9:Portion of E1/2 (lying Easterly of I-80)

Acres:160.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-20

 

Township 31 North, Range 33 East, MDB&M

Section 11:NE1/4; NW1/4NW1/4; S1/2NW1/4; S1/2

Acres:596.100

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-21

CAN: 31475467.16

- 3 -

 

 

Township 31 North, Range 33 East, MDB&M

Section 11:NE1/4NW1/4

Acres:40.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-26

 

Township 31 North, Range 33 East, MDB&M

Section 13:W1/2

Acres:320.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-27

 

Township 31 North, Range 33 East, MDB&M

Section 15:ALL

Acres:640.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN 008-690-29

 

Township 31 North, Range 33 East, MDB&M

Section 17:SE1/4NE1/4

Acres:40.000

Assessed Ownership:Florida Canyon Mining, Inc.

 

APN008-690-55

 

Township 31 North, Range 33 East

Section 34:SE1/4SE1/4, except SE1/4SE1/4SE1/4

50% mineral interest reserved to Donna Campbell in

Quitclaim Deed dated March 3, 1995

Pershing County Assessed Ownership: Florida Canyon Mining, Inc.

 

Owned Patented Mining Claims

 

				
	
Name of Claim
	
Survey Nos.
	
        Patent Nos.
	
Pershing County APN

	
 
	
 
	
 
	
 

	
Humboldt No. 2
	
4195
	
494192
	
008-690-24

	
Humboldt No. 3
	
4195
	
494192
	
008-690-24

	
North Florida
	
4195
	
494192
	
008-690-24

	
Nevada King No. 3
	
4195
	
494192
	
008-690-24

	
Nevada
	
4195
	
494192
	
008-690-24

	
Nevhum
	
4195
	
494192
	
008-690-24

	
Florida
	
4195
	
494192
	
008-690-24

	
South Florida
	
4195
	
494192
	
008-690-24

	
Nevada King No. 2
	
4195
	
494192
	
008-690-24

	
Nevada King
	
4195
	
494192
	
008-690-24

	
Ada Boldt
	
4195
	
494192
	
008-690-24

	
Humboldt
	
4195
	
494192
	
008-690-24

CAN: 31475467.16

- 4 -

 

				
	
Name of Claim
	
Survey Nos.
	
        Patent Nos.
	
Pershing County APN

	
Nevada No. 2
	
3634
	
347764
	
008-690-24

	
Nevada No. 3
	
3634
	
347764
	
008-690-24

	
Nevada Queen
	
3634
	
347764
	
008-690-24

	
Nevada King No. 4
	
3634
	
347764
	
008-690-24

	
Nevada King No. 5
	
3634
	
347764
	
008-690-24

	
Nevada King No. 6
	
3634
	
347764
	
008-690-24

	
Starlight Lode
	
 
	
 
	
008-690-24

 

 

Part 2 – Owned Unpatented Mining Claims

The following 360 unpatented mining claims:

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
 
	
 
	
 
	
 
	
 
	
 

	
1
	
INGE #1
	
01/04/1983
	
141
	
375
	
261360

	
2
	
INGE #2
	
01/04/1983
	
141
	
375
	
261361

	
3
	
INGE #3
	
01/04/1983
	
141
	
376
	
261362

	
4
	
INGE #4
	
01/04/1983
	
141
	
377
	
261363

	
5
	
INGE #5
	
01/04/1983
	
141
	
378
	
261364

	
6
	
INGE #6
	
01/04/1983
	
141
	
379
	
261365

	
7
	
INGE #7
	
01/04/1983
	
141
	
380
	
261366

	
8
	
INGE #8
	
01/04/1983
	
141
	
381
	
261367

	
 
	
 
	
 
	
 
	
 
	
 

	
9
	
INGE #9
	
02/20/1983
	
142
	
434-A
	
262619

	
 
	
 
	
 
	
 
	
 
	
 

	
10
	
INGE #10
	
02/17/1983
	
142
	
363
	
262620

	
 
	
 
	
 
	
 
	
 
	
 

	
11
	
INGE #10-A
	
02/20/1983
	
142
	
435
	
262621

	
 
	
 
	
 
	
 
	
 
	
 

	
12
	
INGE #11
	
02/17/1983
	
142
	
364
	
262622

	
13
	
INGE #12
	
02/17/1983
	
142
	
365
	
262623

	
14
	
INGE #13
	
02/17/1983
	
142
	
366
	
262624

	
15
	
INGE #14
	
02/17/1983
	
142
	
367
	
262625

	
16
	
INGE #15
	
02/17/1983
	
142
	
368
	
262626

	
17
	
INGE #16
	
02/17/1983
	
142
	
369
	
262627

	
18
	
INGE #17
	
02/17/1983
	
142
	
370
	
262628

	
19
	
INGE #18
	
02/17/1983
	
142
	
371
	
262629

	
20
	
INGE #19
	
02/17/1983
	
195
	
1
	
415036

	
21
	
INGE #20
	
02/17/1983
	
142
	
373
	
262631

	
 
	
 
	
 
	
 
	
 
	
 

	
22
	
INGE #21
	
06/23/1987
	
195
	
2
	
415037

	
23
	
INGE #22
	
06/23/1987
	
195
	
3
	
415038

CAN: 31475467.16

- 5 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
24
	
INGE #23
	
06/23/1987
	
195
	
4
	
415039

	
25
	
INGE #24
	
06/23/1987
	
195
	
5
	
415040

	
26
	
INGE #25
	
06/23/1987
	
195
	
6
	
415041

	
 
	
 
	
 
	
 
	
 
	
 

	
27
	
INGE #26
	
06/25/1987
	
195
	
7
	
415042

	
28
	
INGE #27
	
06/25/1987
	
195
	
8
	
415043

	
 
	
 
	
 
	
 
	
 
	
 

	
29
	
INGE #28
	
02/17/1983
	
142
	
381
	
262639

	
30
	
INGE #29
	
02/17/1983
	
142
	
382
	
262640

	
 
	
 
	
 
	
 
	
 
	
 

	
31
	
INGE #30
	
06/23/1987
	
195
	
9
	
415044

	
32
	
INGE #31
	
06/23/1987
	
195
	
10
	
415045

	
33
	
INGE #32
	
06/23/1987
	
195
	
11
	
415046

	
34
	
INGE #33
	
06/23/1987
	
195
	
12
	
415047

	
35
	
INGE #34
	
06/23/1987
	
195
	
13
	
415048

	
36
	
INGE #35
	
06/23/1987
	
195
	
14
	
415049

	
 
	
 
	
 
	
 
	
 
	
 

	
37
	
INGE #36
	
06/25/1987
	
195
	
15
	
415050

	
 
	
 
	
 
	
 
	
 
	
 

	
38
	
INGE #37
	
02/17/1983
	
142
	
390
	
262648

	
39
	
INGE #38
	
02/17/1983
	
142
	
391
	
262649

	
 
	
 
	
 
	
 
	
 
	
 

	
40
	
INGE #39
	
06/23/1987
	
195
	
16
	
415051

	
41
	
INGE #40
	
06/23/1987
	
195
	
17
	
415052

	
42
	
INGE #41
	
06/23/1987
	
195
	
18
	
415053

	
43
	
INGE #42
	
06/23/1987
	
195
	
19
	
415054

	
44
	
INGE #43
	
06/23/1987
	
195
	
20
	
415055

	
45
	
INGE #44
	
06/23/1987
	
195
	
21
	
415056

	
 
	
 
	
 
	
 
	
 
	
 

	
46
	
INGE #45
	
06/25/1987
	
195
	
22
	
415057

	
 
	
 
	
 
	
 
	
 
	
 

	
47
	
INGE #46
	
02/17/1983
	
142
	
399
	
262657

	
48
	
INGE #47
	
02/17/1983
	
142
	
400
	
262658

	
 
	
 
	
 
	
 
	
 
	
 

	
49
	
INGE #48
	
02/20/1983
	
142
	
436
	
262659

	
50
	
INGE #49
	
02/20/1983
	
142
	
437
	
262660

	
 
	
 
	
 
	
 
	
 
	
 

	
51
	
BONNIE #1
	
02/20/1983
	
142
	
432
	
262661

	
52
	
BONNIE #2
	
02/20/1983
	
142
	
433
	
262662

	
 
	
 
	
 
	
 
	
 
	
 

	
53
	
BONNIE #3
	
05/03/1983
	
146
	
564
	
270187

	
54
	
BONNIE #4
	
05/03/1983
	
146
	
565
	
270188

	
55
	
BONNIE #5
	
05/03/1983
	
146
	
566
	
270189

	
56
	
BONNIE #6
	
05/03/1983
	
146
	
567
	
270190

CAN: 31475467.16

- 6 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
57
	
BONNIE #7
	
05/03/1983
	
146
	
568
	
270191

	
58
	
BONNIE #8
	
05/03/1983
	
146
	
569
	
270192

	
59
	
BONNIE #9
	
05/03/1983
	
146
	
570
	
270193

	
60
	
BONNIE #10
	
05/03/1983
	
146
	
571
	
270194

	
 
	
 
	
 
	
 
	
 
	
 

	
61
	
BONNIE #11R
	
12/17/1994
	
286
	
553
	
713282

	
62
	
BONNIE #12R
	
12/17/1994
	
286
	
554
	
713283

	
63
	
BONNIE #13R
	
12/17/1994
	
286
	
555
	
713284

	
64
	
BONNIE #14R
	
12/17/1994
	
286
	
556
	
713285

	
65
	
BONNIE #15R
	
12/17/1994
	
286
	
557
	
713286

	
66
	
BONNIE #16R
	
12/17/1994
	
286
	
558
	
713287

	
67
	
BONNIE #17
	
12/17/1994
	
286
	
559
	
713288

	
 
	
 
	
 
	
 
	
 
	
 

	
68
	
S #56
	
06/30/1983
	
150
	
7
	
279926

	
69
	
S #57
	
06/30/1983
	
150
	
8
	
279927

	
70
	
S #58
	
06/30/1983
	
150
	
9
	
279928

	
71
	
S #59
	
06/30/1983
	
150
	
10
	
279929

	
72
	
S #60
	
06/30/1983
	
150
	
11
	
279930

	
73
	
S #61
	
06/30/1983
	
150
	
12
	
279931

	
74
	
S #62
	
06/20/1983
	
150
	
1
	
279932

	
75
	
S #63
	
06/20/1983
	
150
	
3
	
279933

	
76
	
S #64
	
06/30/1983
	
150
	
13
	
279934

	
77
	
S #65
	
06/30/1983
	
150
	
14
	
279935

	
 
	
 
	
 
	
 
	
 
	
 

	
78
	
S #74
	
06/30/1983
	
150
	
23
	
279944

	
79
	
S #75
	
06/30/1983
	
150
	
24
	
279945

	
80
	
S #76
	
06/30/1983
	
150
	
25
	
279946

	
81
	
S #77
	
06/30/1983
	
150
	
26
	
279947

	
82
	
S #78
	
06/30/1983
	
150
	
27
	
279948

	
83
	
S #79
	
06/30/1983
	
150
	
28
	
279949

	
84
	
S #80
	
06/30/1983
	
150
	
29
	
279950

	
85
	
S #81
	
06/30/1983
	
150
	
30
	
279951

	
86
	
S #82
	
06/30/1983
	
150
	
31
	
279952

	
87
	
S #83
	
06/30/1983
	
150
	
32
	
279953

	
 
	
 
	
 
	
 
	
 
	
 

	
88
	
S #66R
	
12/15/1994
	
286
	
560
	
713305

	
89
	
S #67R
	
12/15/1994
	
286
	
561
	
713306

	
90
	
S #68R
	
12/15/1994
	
286
	
562
	
713307

	
91
	
S #69R
	
12/15/1994
	
286
	
563
	
713308

	
92
	
S #70R
	
12/15/1994
	
286
	
564
	
713309

	
93
	
S #71R
	
12/15/1994
	
286
	
565
	
713310

	
94
	
S #72R
	
12/15/1994
	
286
	
566
	
713311

	
95
	
S #73R
	
12/15/1994
	
286
	
567
	
713312

	
 
	
 
	
 
	
 
	
 
	
 

CAN: 31475467.16

- 7 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
96
	
S #84R
	
12/15/1994
	
286
	
568
	
713313

	
97
	
S #85R
	
12/15/1994
	
286
	
569
	
713314

	
98
	
S #86R
	
12/15/1994
	
286
	
570
	
713315

	
99
	
S #87R
	
12/15/1994
	
286
	
571
	
713316

	
100
	
S #88R
	
12/15/1994
	
286
	
572
	
713317

	
101
	
S #89R
	
12/15/1994
	
286
	
573
	
713318

	
 
	
 
	
 
	
 
	
 
	
 

	
102
	
S #120R
	
12/15/1994
	
286
	
574
	
713319

	
103
	
S #121R
	
12/15/1994
	
286
	
575
	
713320

	
 
	
 
	
 
	
 
	
 
	
 

	
104
	
FCNE #5
	
10/01/1993
	
277
	
102
	
688102

	
105
	
FCNE #6
	
10/01/1993
	
277
	
103
	
688103

	
106
	
FCNE #7
	
10/01/1993
	
277
	
104
	
688104

	
107
	
FCNE #8
	
10/01/1993
	
277
	
105
	
688105

	
108
	
FCNE #9
	
10/01/1993
	
277
	
106
	
688106

	
 
	
 
	
 
	
 
	
 
	
 

	
109
	
FCNE #10
	
10/01/1993
	
277
	
107
	
688107

	
110
	
FCNE #11
	
10/01/1993
	
277
	
108
	
688108

	
111
	
FCNE #12
	
10/01/1993
	
277
	
109
	
688109

	
112
	
FCNE #13
	
10/01/1993
	
277
	
110
	
688110

	
113
	
FCNE #14
	
10/01/1993
	
277
	
111
	
688111

	
114
	
FCNE #15
	
10/01/1993
	
277
	
112
	
688112

	
 
	
 
	
 
	
 
	
 
	
 

	
115
	
FCNE #19
	
10/01/1993
	
277
	
116
	
688116

	
116
	
FCNE #20
	
10/01/1993
	
277
	
117
	
688117

	
117
	
FCNE #21
	
10/01/1993
	
277
	
118
	
688118

	
118
	
FCNE #22
	
10/01/1993
	
277
	
119
	
688119

	
119
	
FCNE #23
	
10/01/1993
	
277
	
120
	
688120

	
120
	
FCNE #25
	
10/02/1993
	
277
	
121
	
688121

	
 
	
 
	
 
	
 
	
 
	
 

	
121
	
FCNE #75
	
11/12/1993
	
277
	
532
	
689809

	
122
	
FCNE #76
	
11/12/1993
	
277
	
533
	
689810

	
 
	
 
	
 
	
 
	
 
	
 

	
123
	
FCNE #81
	
07/02/1994
	
283
	
59
	
703605

	
124
	
FCNE #82
	
07/02/1994
	
283
	
60
	
703606

	
 
	
 
	
 
	
 
	
 
	
 

	
125
	
BUD #1
	
05/02/1985
	
170
	
174
	
345416

	
126
	
BUD #2
	
05/02/1985
	
170
	
175
	
345417

	
127
	
BUD #3
	
05/02/1985
	
170
	
176
	
345418

	
128
	
BUD #4
	
05/02/1985
	
170
	
177
	
345419

	
129
	
BUD #5
	
05/02/1985
	
170
	
178
	
345420

	
130
	
BUD #6
	
05/02/1985
	
170
	
179
	
345421

	
131
	
BUD #7
	
05/02/1985
	
170
	
180
	
345422

	
132
	
BUD #8
	
05/02/1985
	
170
	
181
	
345423

CAN: 31475467.16

- 8 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
133
	
BUD #9
	
05/02/1985
	
170
	
182
	
345424

	
134
	
BUD #10
	
05/02/1985
	
170
	
183
	
345425

	
135
	
BUD #11
	
05/02/1985
	
170
	
184
	
345426

	
136
	
BUD #12
	
05/02/1985
	
170
	
185
	
345427

	
137
	
BUD #13
	
05/02/1985
	
170
	
186
	
345428

	
138
	
BUD #14
	
05/02/1985
	
170
	
187
	
345429

	
139
	
BUD #15
	
05/02/1985
	
170
	
188
	
345430

	
140
	
BUD #16
	
05/02/1985
	
170
	
189
	
345431

	
141
	
BUD #17
	
05/02/1985
	
170
	
190
	
345432

	
142
	
BUD #18
	
05/02/1985
	
170
	
191
	
345433

	
143
	
BUD #19
	
05/02/1985
	
170
	
192
	
345434

	
 
	
 
	
 
	
 
	
 
	
 

	
144
	
BUD #21
	
05/05/1985
	
170
	
194
	
345436

	
145
	
BUD #23
	
05/05/1985
	
170
	
196
	
345438

	
146
	
BUD #25
	
05/05/1985
	
170
	
198
	
345440

	
147
	
BUD #27
	
05/05/1985
	
170
	
200
	
345442

	
148
	
BUD #29
	
05/05/1985
	
170
	
202
	
345444

	
 
	
 
	
 
	
 
	
 
	
 

	
149
	
BUD #31
	
05/05/1985
	
170
	
204
	
345446

	
150
	
BUD #33
	
05/05/1985
	
170
	
206
	
345448

	
151
	
BUD #35
	
05/05/1985
	
170
	
208
	
345450

	
 
	
 
	
 
	
 
	
 
	
 

	
152
	
BUD #41
	
06/25/1987
	
195
	
23
	
415058

	
153
	
BUD #42
	
06/25/1987
	
195
	
24
	
415059

	
154
	
BUD #43
	
06/25/1987
	
195
	
25
	
415060

	
 
	
 
	
 
	
 
	
 
	
 

	
155
	
BUD #20R
	
12/15/1994
	
286
	
544
	
713321

	
156
	
BUD #22R
	
12/15/1994
	
286
	
545
	
713322

	
157
	
BUD #24R
	
12/15/1994
	
286
	
546
	
713323

	
158
	
BUD #26R
	
12/15/1994
	
286
	
547
	
713324

	
159
	
BUD #28R
	
12/15/1994
	
286
	
548
	
713325

	
160
	
BUD #30R
	
12/15/1994
	
286
	
549
	
713326

	
161
	
BUD #32R
	
12/15/1994
	
286
	
550
	
713327

	
162
	
BUD #34R
	
12/15/1994
	
286
	
551
	
713328

	
163
	
BUD #36R
	
12/15/1994
	
286
	
552
	
713329

	
 
	
 
	
 
	
 
	
 
	
 

	
164
	
BUD #37
	
01/18/1996
	
300
	
595
	
735722

	
165
	
BUD #38
	
01/18/1996
	
300
	
596
	
735723

	
166
	
BUD #39
	
01/18/1996
	
300
	
597
	
735724

	
167
	
BUD #40
	
01/18/1996
	
300
	
597A
	
735725

	
 
	
 
	
 
	
 
	
 
	
 

	
168
	
BOLDT #1R
	
12/18/1994
	
286
	
576
	
713289

	
169
	
BOLDT #2R
	
12/18/1994
	
286
	
577
	
713290

	
170
	
BOLDT #3R
	
12/18/1994
	
286
	
578
	
713291

CAN: 31475467.16

- 9 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
171
	
BOLDT #4R
	
12/18/1994
	
286
	
579
	
713292

	
 
	
 
	
 
	
 
	
 
	
 

	
172
	
BOLDT #5R
	
12/18/1994
	
286
	
580
	
713293

	
 
	
AMENDED
	
 
	
492
	
474
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
173
	
BOLDT #6R
	
12/18/1994
	
286
	
581
	
713294

	
 
	
AMENDED
	
 
	
492
	
475
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
174
	
BOLDT #7R
	
12/18/1994
	
286
	
582
	
713295

	
 
	
AMENDED
	
 
	
492
	
476
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
175
	
BOLDT #8R
	
12/18/1994
	
286
	
583
	
713296

	
 
	
AMENDED
	
 
	
492
	
477
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
176
	
BOLDT #9R
	
12/18/1994
	
286
	
584
	
713297

	
177
	
BOLDT #10R
	
12/18/1994
	
286
	
585
	
713298

	
178
	
BOLDT #11R
	
12/18/1994
	
286
	
586
	
713299

	
179
	
BOLDT #12R
	
12/18/1994
	
286
	
587
	
713300

	
180
	
BOLDT #13R
	
12/18/1994
	
286
	
588
	
713301

	
181
	
BOLDT #14R
	
12/18/1994
	
286
	
589
	
713302

	
 
	
 
	
 
	
 
	
 
	
 

	
182
	
BOLDT #15
	
12/18/1994
	
286
	
590
	
713303

	
183
	
BOLDT #16
	
12/18/1994
	
286
	
591
	
713304

	
 
	
 
	
 
	
 
	
 
	
 

	
184
	
BOB #1
	
07/12/1985
	
171
	
2
	
346684

	
185
	
BOB #2
	
07/12/1985
	
171
	
3
	
346685

	
186
	
BOB #3
	
07/12/1985
	
171
	
4
	
346686

	
 
	
 
	
 
	
 
	
 
	
 

	
187
	
BOB #8
	
12/18/1994
	
286
	
537
	
713330

	
188
	
BOB #9
	
12/18/1994
	
286
	
538
	
713331

	
189
	
BOB #10
	
12/18/1994
	
286
	
539
	
713332

	
190
	
BOB #11
	
12/18/1994
	
286
	
540
	
713333

	
 
	
 
	
 
	
 
	
 
	
 

	
191
	
BOB #4A
	
01/19/1995
	
286
	
541
	
713334

	
192
	
BOB #4B
	
01/19/1995
	
286
	
542
	
713335

	
193
	
BOB #4C
	
01/19/1995
	
286
	
543
	
713336

	
 
	
 
	
 
	
 
	
 
	
 

	
194
	
BOB #6R
	
02/08/1995
	
287
	
492
	
714426

	
195
	
BOB #7R
	
02/08/1995
	
287
	
493
	
714427

	
 
	
 
	
 
	
 
	
 
	
 

	
196
	
BOB #13
	
03/21/1995
	
288
	
282
	
715854

	
197
	
BOB #14
	
03/21/1995
	
288
	
283
	
715855

	
198
	
BOB #15
	
03/21/1995
	
288
	
284
	
715856

	
199
	
BOB #16
	
03/21/1995
	
288
	
285
	
715857

CAN: 31475467.16

- 10 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
200
	
BOB #17
	
03/21/1995
	
288
	
286
	
715858

	
201
	
BOB #18
	
03/21/1995
	
288
	
287
	
715859

	
202
	
BOB #19
	
03/21/1995
	
288
	
288
	
715860

	
203
	
BOB #20
	
03/21/1995
	
288
	
289
	
715861

	
204
	
BOB #21
	
03/21/1995
	
288
	
290
	
715862

	
205
	
BOB #22
	
03/21/1995
	
288
	
291
	
715863

	
206
	
BOB #23
	
03/21/1995
	
288
	
292
	
715864

	
207
	
BOB #24
	
03/21/1995
	
288
	
293
	
715865

	
208
	
BOB #25
	
03/21/1995
	
288
	
294
	
715866

	
209
	
BOB #26
	
03/21/1995
	
288
	
295
	
715867

	
 
	
 
	
 
	
 
	
 
	
 

	
210
	
BOB 27
	
12/26/1996
	
312
	
631
	
763761

	
211
	
BOB 28
	
12/26/1996
	
312
	
632
	
763762

	
212
	
BOB 29
	
12/26/1996
	
312
	
633
	
763763

	
213
	
BOB 30
	
12/26/1996
	
312
	
634
	
763764

	
 
	
 
	
 
	
 
	
 
	
 

	
214
	
LA #1
	
03/24/1995
	
289
	
159
	
717314

	
215
	
LA #2
	
03/24/1995
	
289
	
160
	
717315

	
216
	
LA #3
	
03/24/1995
	
289
	
161
	
717316

	
217
	
LA #4
	
03/24/1995
	
289
	
162
	
717317

	
218
	
LA #5
	
03/24/1995
	
289
	
163
	
717318

	
219
	
LA #6
	
03/24/1995
	
289
	
164
	
717319

	
220
	
LA #7
	
03/24/1995
	
289
	
165
	
717320

	
 
	
 
	
 
	
 
	
 
	
 

	
221
	
LA #8
	
03/24/1995
	
289
	
166
	
717321

	
222
	
LA #9
	
03/24/1995
	
289
	
167
	
717322

	
223
	
LA #10
	
03/24/1995
	
289
	
168
	
717323

	
224
	
LA #11
	
03/24/1995
	
289
	
169
	
717324

	
225
	
LA #12
	
03/24/1995
	
289
	
170
	
717325

	
226
	
LA #13
	
03/24/1995
	
289
	
171
	
717326

	
227
	
LA #14
	
03/24/1995
	
289
	
172
	
717327

	
228
	
LA #15
	
03/24/1995
	
289
	
173
	
717328

	
229
	
LA #16
	
03/24/1995
	
289
	
174
	
717329

	
230
	
LA #17
	
03/24/1995
	
289
	
175
	
717330

	
231
	
LA #18
	
03/24/1995
	
289
	
176
	
717331

	
232
	
LA #19
	
03/24/1995
	
289
	
177
	
717332

	
233
	
LA #20
	
03/24/1995
	
289
	
178
	
717333

	
 
	
 
	
 
	
 
	
 
	
 

	
234
	
LA #21
	
03/25/1995
	
289
	
179
	
717334

	
235
	
LA #22
	
03/25/1995
	
289
	
180
	
717335

	
 
	
 
	
 
	
 
	
 
	
 

	
236
	
LA #35
	
03/31/1995
	
289
	
181
	
717336

	
237
	
LA #36
	
03/31/1995
	
289
	
182
	
717337

	
 
	
 
	
 
	
 
	
 
	
 

CAN: 31475467.16

- 11 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
238
	
LA #37
	
03/24/1995
	
289
	
183
	
717338

	
239
	
LA #38
	
03/24/1995
	
289
	
184
	
717339

	
240
	
LA #39
	
03/24/1995
	
289
	
185
	
717340

	
241
	
LA #40
	
03/24/1995
	
289
	
186
	
717341

	
242
	
LA #41
	
03/24/1995
	
289
	
187
	
717342

	
243
	
LA #42
	
03/24/1995
	
289
	
188
	
717343

	
244
	
LA #43
	
03/24/1995
	
289
	
189
	
717344

	
245
	
LA #44
	
03/24/1995
	
289
	
190
	
717345

	
 
	
 
	
 
	
 
	
 
	
 

	
246
	
LA #45
	
03/24/1995
	
289
	
191
	
717346

	
 
	
AMENDED
	
 
	
492
	
478
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
247
	
LA #46
	
03/24/1995
	
289
	
192
	
717347

	
 
	
AMENDED
	
 
	
492
	
479
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
248
	
LA #47
	
03/24/1995
	
289
	
193
	
717348

	
 
	
 
	
 
	
 
	
 
	
 

	
249
	
LA #54
	
03/26/1995
	
289
	
193
	
717349

	
250
	
LA #55
	
03/26/1995
	
289
	
194
	
717350

	
251
	
LA #56
	
03/26/1995
	
289
	
195
	
717351

	
252
	
LA #57
	
03/26/1995
	
289
	
196
	
717352

	
253
	
LA #58
	
03/26/1995
	
289
	
197
	
717353

	
254
	
LA #59
	
03/26/1995
	
289
	
198
	
717354

	
255
	
LA #60
	
03/26/1995
	
289
	
199
	
717355

	
256
	
LA #61
	
03/26/1995
	
289
	
200
	
717356

	
257
	
LA #62
	
03/26/1995
	
289
	
201
	
717357

	
 
	
 
	
 
	
 
	
 
	
 

	
258
	
LA #63
	
03/26/1995
	
289
	
201
	
717358

	
 
	
 
	
 
	
 
	
 
	
 

	
259
	
LA #73
	
03/31/1995
	
289
	
202
	
717359

	
260
	
LA #74
	
03/31/1995
	
289
	
203
	
717360

	
261
	
LA #75
	
03/31/1995
	
289
	
204
	
717361

	
262
	
LA #76
	
03/31/1995
	
289
	
205
	
717362

	
263
	
LA #77
	
03/31/1995
	
289
	
206
	
717363

	
264
	
LA #78
	
03/31/1995
	
289
	
207
	
717364

	
265
	
LA #79
	
03/31/1995
	
289
	
208
	
717365

	
 
	
 
	
 
	
 
	
 
	
 

	
266
	
LA #80
	
04/09/1995
	
289
	
209
	
717366

	
267
	
LA #81
	
04/09/1995
	
289
	
210
	
717367

	
268
	
LA #82
	
04/09/1995
	
289
	
211
	
717368

	
269
	
LA #83
	
04/09/1995
	
289
	
212
	
717369

	
270
	
LA #84
	
04/09/1995
	
289
	
213
	
717370

	
271
	
LA #85
	
04/09/1995
	
289
	
214
	
717371

	
272
	
LA #86
	
04/09/1995
	
289
	
215
	
717372

CAN: 31475467.16

- 12 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
273
	
LA #87
	
04/09/1995
	
289
	
216
	
717373

	
274
	
LA #88
	
04/09/1995
	
289
	
217
	
717374

	
275
	
LA #89
	
04/09/1995
	
289
	
218
	
717375

	
276
	
LA #90
	
04/09/1995
	
289
	
219
	
717376

	
277
	
LA #91
	
04/09/1995
	
289
	
220
	
717377

	
278
	
LA #92
	
04/09/1995
	
289
	
221
	
717378

	
279
	
LA #93
	
04/09/1995
	
289
	
222
	
717379

	
280
	
LA #94
	
04/09/1995
	
289
	
223
	
717380

	
281
	
LA #95
	
04/09/1995
	
289
	
224
	
717381

	
282
	
LA #96
	
04/09/1995
	
289
	
225
	
717382

	
283
	
LA #97
	
04/09/1995
	
289
	
226
	
717383

	
284
	
LA #98
	
04/09/1995
	
289
	
227
	
717384

	
285
	
LA #99
	
04/09/1995
	
289
	
228
	
717385

	
286
	
LA #100
	
04/09/1995
	
289
	
229
	
717386

	
 
	
 
	
 
	
 
	
 
	
 

	
287
	
LA #101
	
04/08/1995
	
289
	
230
	
717387

	
288
	
LA #102
	
04/08/1995
	
289
	
231
	
717388

	
 
	
 
	
 
	
 
	
 
	
 

	
289
	
LA #129
	
04/07/1995
	
289
	
258
	
717415

	
290
	
LA #130
	
04/07/1995
	
289
	
259
	
717416

	
291
	
LA #131
	
04/07/1995
	
289
	
260
	
717417

	
292
	
LA #132
	
04/07/1995
	
289
	
261
	
717418

	
 
	
 
	
 
	
 
	
 
	
 

	
293
	
LA #133
	
04/12/1995
	
289
	
262
	
717419

	
294
	
LA #134
	
04/12/1995
	
289
	
263
	
717420

	
 
	
 
	
 
	
 
	
 
	
 

	
295
	
LA #135
	
09/01/1995
	
294
	
364
	
723410

	
 
	
AMENDED
	
 
	
492
	
480
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
296
	
LA #136
	
09/01/1995
	
294
	
365
	
723411

	
 
	
 
	
 
	
 
	
 
	
 

	
297
	
LA #137
	
09/01/1995
	
294
	
366
	
723412

	
 
	
AMENDED
	
 
	
492
	
481
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
298
	
LA #138
	
09/01/1995
	
294
	
367
	
723413

	
 
	
 
	
 
	
 
	
 
	
 

	
299
	
LA #139
	
09/01/1995
	
294
	
368
	
723414

	
 
	
AMENDED
	
 
	
492
	
482
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
300
	
LA #140
	
09/01/1995
	
294
	
369
	
723415

	
301
	
LA #141
	
09/01/1995
	
294
	
370
	
723416

	
302
	
LA #142
	
09/01/1995
	
294
	
371
	
723417

	
303
	
LA #143
	
09/01/1995
	
294
	
372
	
723418

	
304
	
LA #144
	
09/01/1995
	
294
	
373
	
723419

CAN: 31475467.16

- 13 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
305
	
LA #145
	
09/01/1995
	
294
	
374
	
723420

	
306
	
LA #146
	
09/01/1995
	
294
	
375
	
723421

	
307
	
LA #147
	
09/01/1995
	
294
	
376
	
723422

	
308
	
LA #148
	
09/01/1995
	
294
	
377
	
723423

	
309
	
LA #149
	
09/01/1995
	
294
	
378
	
723424

	
310
	
LA #150
	
09/01/1995
	
294
	
379
	
723425

	
311
	
LA #151
	
09/01/1995
	
294
	
380
	
723426

	
312
	
LA #152
	
09/01/1995
	
294
	
381
	
723427

	
313
	
LA #153
	
09/01/1995
	
294
	
382
	
723428

	
314
	
LA #154
	
09/01/1995
	
294
	
383
	
723429

	
315
	
LA #155
	
09/01/1995
	
294
	
384
	
723430

	
316
	
LA #156
	
09/01/1995
	
294
	
385
	
723431

	
317
	
LA #157
	
09/01/1995
	
294
	
386
	
723432

	
318
	
LA #158
	
09/01/1995
	
294
	
387
	
723433

	
319
	
LA #159
	
09/01/1995
	
294
	
388
	
723434

	
320
	
LA #160
	
09/01/1995
	
294
	
389
	
723435

	
 
	
 
	
 
	
 
	
 
	
 

	
321
	
LA #161
	
11/28/1995
	
297
	
443
	
729808

	
322
	
LA #162
	
11/28/1995
	
297
	
444
	
729809

	
323
	
LA #163
	
11/28/1995
	
297
	
445
	
729810

	
324
	
LA #164
	
11/28/1995
	
297
	
446
	
729811

	
325
	
LA #165
	
11/28/1995
	
297
	
447
	
729812

	
326
	
LA #166
	
11/28/1995
	
297
	
448
	
729813

	
327
	
LA #167
	
11/28/1995
	
297
	
449
	
729814

	
328
	
LA #168
	
11/28/1995
	
297
	
450
	
729815

	
329
	
LA #169
	
11/28/1995
	
297
	
451
	
729816

	
330
	
LA #170
	
11/28/1995
	
297
	
452
	
729817

	
331
	
LA #171
	
11/28/1995
	
297
	
453
	
729818

	
332
	
LA #172
	
11/28/1995
	
297
	
454
	
729819

	
333
	
LA #173
	
11/28/1995
	
297
	
455
	
729820

	
334
	
LA #174
	
11/28/1995
	
297
	
456
	
729821

	
 
	
 
	
 
	
 
	
 
	
 

	
335
	
LA #175
	
11/28/1995
	
297
	
457
	
729822

	
336
	
LA #176
	
11/28/1995
	
297
	
458
	
729823

	
337
	
LA #177
	
11/28/1995
	
297
	
459
	
729824

	
338
	
LA #178
	
11/28/1995
	
297
	
460
	
729825

	
339
	
LA #179
	
11/28/1995
	
297
	
462
	
729826

	
340
	
LA #180
	
11/28/1995
	
297
	
463
	
729827

	
341
	
LA #181
	
11/28/1995
	
297
	
464
	
729828

	
342
	
LA #182
	
11/28/1995
	
297
	
465
	
729829

	
343
	
LA #183
	
11/28/1995
	
297
	
466
	
729830

	
344
	
LA #184
	
11/28/1995
	
297
	
467
	
729831

	
345
	
LA #185
	
11/28/1995
	
297
	
468
	
729832

	
346
	
LA #186
	
11/28/1995
	
297
	
469
	
729833

CAN: 31475467.16

- 14 -

 

						
	
 
	
Claim Name
	
Location Date
	
Book
	
Page
	
BLM NMC Nos.

	
347
	
LA #187
	
11/28/1995
	
297
	
470
	
729834

	
348
	
LA #188
	
11/28/1995
	
297
	
461
	
729835

	
 
	
 
	
 
	
 
	
 
	
 

	
349
	
MOE #1
	
02/05/1997
	
316
	
199
	
769013

	
350
	
MOE #2
	
02/05/1997
	
316
	
200
	
769014

	
351
	
MOE #3
	
02/05/1997
	
316
	
201
	
769015

	
 
	
 
	
 
	
 
	
 
	
 

	
352
	
CODY 16
	
04/04/1997
	
319
	
36
	
772506

	
353
	
CODY 18
	
04/04/1997
	
319
	
38
	
772508

	
354
	
CODY 20
	
04/04/1997
	
319
	
40
	
772510

	
355
	
CODY 21
	
04/04/1997
	
319
	
41
	
772511

	
 
	
 
	
 
	
 
	
 
	
 

	
356
	
JDL 10
	
09/21/1999
	
346
	
232
	
807757

	
357
	
JDL 11
	
09/21/1999
	
346
	
233
	
807758

	
358
	
JDL 12
	
09/21/1999
	
346
	
235
	
807759

	
359
	
JDL 13
	
09/21/1999
	
346
	
236
	
807760

	
360
	
JDL 14
	
09/21/1999
	
346
	
237
	
807761

 

Part 3 – Leased Patented Mining Claims

Assessed Owner: Hannah S. Hall 1997 Revocable Trust dated June 5, 1997, John E. Burnham, Trustee

 

Agreement and Mining Lease among Clarence H. Hall and Hannah S. Hall, lessors, and Beal Mining Company. Memorandum recorded in Pershing County in Book 182, Page 123.

 

				
	
Name of Claim
	
U.S. Mineral Survey Number
	
Patent No.
	
Pershing County APN

	
 
	
 
	
 
	
 

	
Madre
	
40
	
1787
	
008-690-03

	
Calaveras
	
38
	
57
	
008-700-17

 

Part 4 – Water Rights

							
	
Florida Canyon Mine Water Rights
	
 

	
Pershing County, Nevada
	
 

	
Permit
	
Cert. No.
	
Well ID
	
Div. Rate (cfs)
	
Duty (AFA)

	
48998
	
13238
	
PW-1
	
0.900
	
58.66

	
57097
	
 
	
0.280
	
48.03

	
48997
	
13237
	
PW-2
	
0.680
	
102.24

	
57096
	
 
	
0.100
	
32.77

	
61203
	
 
	
0.110
	
79.64

	
61707
	
 
	
PW-5
	
0.100
	
72.40

	
61643
	
 
	
PW-6
	
1.100
	
796.37

CAN: 31475467.16

- 15 -

 

							
	
61644
	
 
	
PW-7
	
0.824
	
596.37

	
50061
	
13953
	
Trailer 1
	
0.045
	
3.13

	
50248
	
14448
	
Trailer 2
	
0.190
	
4.32

	
79819-E
	
 
	
MW-16D
	
0.020
	
20.50

	
MW-I
	
0.030

	
79820-E
	
 
	
MW-16
	
0.010

	
MW-16B
	
0.020

	
MW-GA
	
0.030

	
MW-K
	
0.030

	
MW-M
	
0.020

	
MW-N
	
0.020

	
MW-O
	
0.030

	
80098-E
	
 
	
MW-V
	
0.001

	
82357-E
	
 
	
MW-29
	
0.300

	
82358-E
	
 
	
MW-31
	
0.150

	
Total Combined Duty (AFA)
	
 
	
 

	
1,814.43
	
 
	
 
	
 
	
 

 

 

 

 

 

CAN: 31475467.16

 

Schedule B
Security Documents

The Security Documents shall include the following:

	
 
	
(b)
	
security agreements of each Credit Party, pursuant to which each Credit Party shall grant to and in favour of the Lender a first priority Encumbrance over all of its present and after-acquired personal property, subject only to Permitted Encumbrances;

	
 
	
(c)
	
unlimited guarantees of each of the Guarantors;

	
 
	
(d)
	
a share pledge agreement of the Borrower governed by the laws of the Province of British Columbia, pursuant to which the Borrower will pledge and grant to and in favour of the Lender a first-priority Encumbrance over all of the issued and outstanding shares in the capital of Alio Gold (US) Inc.;

	
 
	
(e)
	
a share pledge agreement of Alio Gold (US) Inc. governed by the laws of the State of Nevada pursuant to which Alio Gold (US) Inc. will pledge and grant to and in favour of the Lender a first-priority Encumbrance over all of the issued and outstanding shares in the capital of Rye Patch Mining US Inc.; 

	
 
	
(f)
	
a share pledge agreement of Rye Patch Mining US Inc. governed by the laws of the State of Delaware pursuant to which Rye Patch Mining US Inc. will pledge and grant to and in favour of the Lender a first-priority Encumbrance over all of the issued and outstanding shares in the capital of Florida Canyon Mining, Inc.; 

	
 
	
(g)
	
an acknowledgement and consent of issuer from Florida Canyon Mining, Inc. with respect to Rye Patch Mining US Inc.’s pledge of the Florida Canyon Mining, Inc. shares;

	
 
	
(h)
	
an acknowledgement and consent of issuer from Rye Patch Mining US Inc. with respect to Alio Gold (US) Inc.’s pledge of the Rye Patch Mining US Inc. shares; and

	
 
	
(i)
	
a deed of trust, assignment of leases, rents and contracts, security agreement and fixture filing of Florida Canyon Mining, Inc.in respect of the Project, to be recorded in Nevada, pursuant to which Florida Canyon Mining, Inc. shall grant to and in favour of the Lender a first priority Encumbrance over all of its present and after-acquired property, including but not limited to all assets and interests comprising the Project, subject only to Permitted Encumbrances.

 

CAN: 31475467.16

1

 

SCHEDULE C
Shares and Ownership Interests

 

 

					
	
Record and Beneficial Owner
	
Issuer
	
Certificate No.
	
Number and Class of Shares
	
% of Shares Owned

	
Alio Gold Inc. , a British Columbia company
	
Alio Gold (US) Inc., a British Columbia company
	
C-1
	
200,000
	
100%

	
Rye Patch Mining US Inc.
	
Rye Patch Gold US Inc., a Nevada corporation
	
2
	
100
	
100%

	
Alio Gold (US) Inc.
	
Rye Patch Mining US Inc., a Nevada corporation
	
2
	
1
	
100%

	
Rye Patch Mining US Inc.
	
Florida Canyon Mining Inc., a Delaware corporation
	
5
	
1,000
	
100%

	
Rye Patch Mining US Inc.
	
Standard Gold Mining Inc., a Delaware corporation
	
4
	
1,000
	
100%

	
Rye Patch Mining US Inc.
	
RP Dirt Inc., a Delaware corporation
	
4
	
1,000
	
100%

	
Alio Gold Inc.
	
Timmins Goldcorp Mexico S.A. de C.V., a Mexican corporation
	
7 Serie A

16 Serie B

3 Serie C

4 Serie C
	
99 Fixed

728,049 Variable

136,000 Variable

980,968 Variable
	
99.99% 1

	
Timmins Goldcorp Mexico S.A. de C.V.
	
Aurea Mining Inc., a British Columbia company
	
C-2
	
116,786,781
	
99.99% 2

	
Timmins Goldcorp Mexico S.A. de C.V.
	
Molimentales del Noroeste, S.A. de C.V., a Mexican corporation
	
10 Serie A

11 Serie B
	
 499 fixed

2’015,048 variable
	
99.99% 3

	
Aurea Mining Inc.
	
Minera Aurea, S.A. de C.V., a Mexican corporation 
	
5 Serie One

3 Serie Two

1 Serie Three
	
199,999 Fixed 

200,000 Variable

7’223,213 Variable
	
99.99% 4

 

 

 

 

	
	 

	
1 
	
 the remaining 0.01% of the issued share capital owned by Mark Backens.

	
2 
	
 the remaining 0.01% of the issued share capital owned by Alio Gold Inc.

	
3 
	
 the remaining 0.01% of the issued share capital owned by Francisco Arturo Bonillas Zepeda.

	
4 
	
 the remaining 0.01% of the issued share capital owned by Molimentales del Noroeste, S.A. de C.V.

CAN: 31475467.16

 

SCHEDULE D
Material Contracts

 

None.

 

 

 

CAN: 31475467.16

 

SCHEDULE E
Authorizations to be obtained on or prior to the Closing Date

	
1.
	
TSX approval of the Credit Agreement and for the issuance of the Partner Alignment Shares; 

	
2.
	
NYSE American approval of the listing of the Partner Alignment Shares;

	
3.
	
Hall Consent (to be obtained post-closing, on a commercially reasonable basis); and 

	
4.
	
Caterpillar Consent (to be obtained post-closing, on a commercially reasonable basis). 

 

 

 

CAN: 31475467.16

 

SCHEDULE F
COMPLIANCE CERTIFICATE

 

 

TO:THE LENDER (as defined in the Credit Agreement referred to below)

 

Suite 2600, 200 Bay Street

Toronto, Ontario, M5J 2J2

 

Attention:Chief Financial Officer

Fax No. :(416) 977-9555

 

I, ______________________, the Chief Financial Officer of Alio Gold Inc. (the “Borrower”), hereby certify that:

 

1.I am the duly appointed Chief Financial Officer of the Borrower and refer to Section  of the credit agreement dated as of November 13, 2019 between the Borrower, as borrower, Alio Gold (US) Inc.,‎ Rye Patch Mining US Inc. and Florida Canyon Mining Inc., as guarantors, Sprott Private Resource Lending II (Collector), LP, as lender (as amended, modified, supplemented, restated or replaced from time to time, the “Credit Agreement”).

 

2.I am familiar with and have examined the provisions of the Credit Agreement.

 

3.To the best of my knowledge, information and belief and after due and diligent inquiry, I certify that:

 

(a)the representations and warranties made in Article 6 of the Credit Agreement, except those expressly stated to be made as of a specific date but including those made with respect to the financial statements for the Borrower's fiscal period ended ________________, 20____ (the “Period End”), are, in all respects, true on and as of the date of this Compliance Certificate with the same effect as if those representations and warranties had been made on and as of that date; 

 

(b)the Borrower has complied with and fulfilled each covenant and agreement set forth in the Credit Agreement which is by its terms required to be complied with or fulfilled on or before the date hereof;

 

(c)no Default or Event of Default has occurred and is continuing on the date of this Compliance Certificate;  [NTD: Amend and provide details if there is a Default or Event of Default]

 

(d)as of the Period End: [NTD:  Insert as applicable.]

 

(i)the Working Capital Ratio was ____________ to 1.00; and

 

(ii)its Unrestricted Cash was USD $_________________.

 

(e)The most recent Model delivered by the Borrower to the Finance Parties reflecting each Model amendment which has been approved in writing by the Lender is true and correct in all respects and accurately reflects the results of operations of the Borrower as of the date hereof.

 

CAN: 31475467.16

 

All capitalized terms used in this certificate and defined in the Credit Agreement have the meanings defined in the Credit Agreement.

 

 

DATED this ______ day of _________________, 20____.

 

 

 

 

_____________________________

(Signature)

 

_____________________________

(Name - please print)

 

_____________________________

(Title of Senior Financial Officer)

 

 

 

CAN: 31475467.16

 

SCHEDULE G
ROYALTY OBLIGATIONS

 

 

CAN: 31475467.16

 

SCHEDULE H
hall lease consent

 

 

 

CAN: 31475467.16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}]]