Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Corporation - Exhibit 4.72

NORD RESOURCES CORPORATION 

- and - 

BLACKMONT CAPITAL INC. 

- and - 

COMPUTERSHARE TRUST COMPANY OF CANADA 

SPECIAL WARRANT INDENTURE 

Providing for the Issue of Special Warrants 

 

 

Dated as of June 5, 2007 

i 

TABLE OF CONTENTS 

	ARTICLE
      1 INTERPRETATION 	2
      
	     1.1
      	Definitions
      	2
      
	     1.2
      	Words
      Importing the Singular 	6
      
	     1.3
      	Interpretation
      Not Affected by Headings, Etc. 	7
      
	     1.4
      	Day
      Not a Business Day 	7
      
	     1.5
      	Time
      of the Essence 	7
      
	     1.6
      	Currency
      	7
      
	     1.7
      	Applicable
      Law 	7
      
	  	  	  
	ARTICLE
      2 THE SPECIAL WARRANTS 	7
      
	     2.1
      	Creation
      and Issue of Special Warrants 	7
      
	     2.2
      	Terms
      of Special Warrants 	8
      
	     2.3
      	Form
      of Special Warrant Certificates 	8
      
	     2.4
      	Signing
      of Special Warrant Certificates 	10
      
	     2.5
      	Certification
      by Trustee 	10
      
	     2.6
      	Special
      Warrants to Rank Pari Passu 	11
      
	     2.7
      	Issue
      in Substitution for Lost Certificates, Etc. 	11
      
	     2.8
      	Cancellation
      of Surrendered Special Warrants 	11
      
	     2.9
      	Special
      Warrantholder not a Shareholder 	11
      
	  	  	  
	ARTICLE 3 REGISTRATION,
      TRANSFER AND OWNERSHIP OF SPECIAL 	  
	WARRANTS
      AND EXCHANGE OF SPECIAL WARRANT CERTIFICATES 	12
      
	     3.1
      	Registration
      and Transfer of Special Warrants 	12
      
	     3.2
      	Exchange
      of Special Warrant Certificates 	13
      
	     3.3
      	Charges
      for Transfer or Exchange 	14
      
	     3.4
      	Ownership
      of Special Warrants 	14
      
	  	  	  
	ARTICLE 4 CONVERSION OF SPECIAL
      WARRANTS AND PAYMENT OF 	  
	LIQUIDITY
      INCENTIVE 	14
      
	     4.1
      	Conversion
      by Holder 	14
      
	     4.2
      	Conversion
      by Trustee 	15
      
	     4.3
      	Effect
      of Conversion 	16
      
	     4.4
      	No
      Fractional Units 	16
      
	     4.5
      	Recording
      	17
      
	     4.6
      	Securities
      Restrictions 	17
      
	     4.7
      	Adjustments
      	18
      
	     4.8
      	Payment
      of Liquidity Incentive 	24
      
	  	  	  
	ARTICLE
      5 COVENANTS 	24
      
	     5.1
      	General
      Covenants 	24
      
	     5.2
      	Remuneration
      and Expenses of Trustee 	26
      
	     5.3
      	Securities
      Qualification Requirements 	26
      
	     5.4
      	Notice
      of Issue 	27
      
	     5.5
      	Performance
      of Covenants by Trustee 	27
      
	     5.6
      	Accounting
      	27
      
	     5.7
      	Payments
      by the Trustee 	27
      

ii 

	ARTICLE
      6 ENFORCEMENT 	27
      
	     6.1
      	Suits
      by Special Warrantholder 	27
      
	     6.2
      	Limitation
      of Liability 	28
      
	  	  	  
	ARTICLE
      7 MEETINGS OF SPECIAL WARRANTHOLDERS 	28
      
	     7.1
      	Right
      to Convene Meetings 	28
      
	     7.2
      	Notice
      	28
      
	     7.3
      	Chairman
      	28
      
	     7.4
      	Quorum
      	29
      
	     7.5
      	Power
      to Adjourn 	29
      
	     7.6
      	Show
      of Hands 	29
      
	     7.7
      	Poll
      	29
      
	     7.8
      	Voting
      	29
      
	     7.9
      	Regulations
      	30
      
	     7.10
      	The
      Corporation and Trustee may be Represented 	31
      
	     7.11
      	Powers
      Exercisable by Extraordinary Resolution 	31
      
	     7.12
      	Meaning
      of "Extraordinary Resolution" 	32
      
	     7.13
      	Powers
      Cumulative 	33
      
	     7.14
      	Minutes
      	33
      
	     7.15
      	Instruments
      in Writing 	33
      
	     7.16
      	Binding
      Effect of Resolutions 	33
      
	     7.17
      	Holdings
      by the Corporation and Subsidiaries Disregarded 	33
      
	  	  	  
	ARTICLE
      8 SUPPLEMENTAL INDENTURES AND SUCCESSOR CORPORATIONS 	34
      
	     8.1
      	Provision
      for Supplemental Indentures for Certain Purposes 	34
      
	     8.2
      	Successor
      Corporations 	35
      
	  	  	  
	ARTICLE
      9 CONCERNING TRUSTEE 	35
      
	     9.1
      	Trust
      Indenture Legislation 	35
      
	     9.2
      	Rights
      and Duties of Trustee 	35
      
	     9.3
      	Evidence,
      Experts and Advisers 	36
      
	     9.4
      	Documents,
      Money, Etc. held by Trustee 	37
      
	     9.5
      	Action
      by Trustee to Protect Interests 	37
      
	     9.6
      	Trustee
      not Required to Give Security 	37
      
	     9.7
      	Protection
      of Trustee 	37
      
	     9.8
      	Replacement
      of Trustee 	38
      
	     9.9
      	Conflict
      of Interest 	39
      
	     9.10
      	Acceptance
      of Duties and Obligations 	39
      
	     9.11
      	Third
      Party Interests 	39
      
	     9.12
      	Not
      Bound to Act 	40
      
	  	  	  
	ARTICLE
      10 GENERAL 	40
      
	     10.1
      	Notice
      to the Corporation and Trustee 	40
      
	     10.2
      	Notice
      to Special Warrantholders 	42
      
	     10.3
      	Satisfaction
      and Discharge of Indenture 	42
      
	     10.4
      	Sole
      Benefit of Parties and Special Warrantholders 	43
      
	     10.5
      	Discretion
      of Directors 	43
      
	     10.6
      	Counterparts
      and Formal Date 	43
      
	  	  	  
	Schedule A – Form of Special Warrant Certificate
    	  

SPECIAL WARRANT INDENTURE 

THIS INDENTURE dated as of the 5th day of June, 2007. 

B E T W E E N : 

NORD RESOURCES CORPORATION, a
Delaware corporation; 
(hereinafter called the "Corporation") 

OF THE FIRST PART 

AND: 

BLACKMONT CAPITAL INC., a
corporation existing under the laws of the 
Province of Ontario;

(hereinafter called the "Agent") 

OF THE SECOND PART 

AND: 

COMPUTERSHARE TRUST COMPANY OF
CANADA, a trust company 
registered under the laws of Canada duly
authorized to carry on the trust business 
in each Province of Canada;
(hereinafter called the "Trustee") 

OF THE THIRD PART 

     WHEREAS the Corporation proposes
to create and issue Special Warrants (as hereinafter defined) to be constituted
and issued as herein provided; 

     AND WHEREAS the Corporation is
authorized to create and issue the Special Warrants as herein provided and to
complete the transactions contemplated herein; 

     AND WHEREAS all things necessary
have been done and performed to make the Special Warrant Certificates (as
hereinafter defined), when certified by the Trustee and issued and delivered as
herein provided, legal, valid and binding obligations of the Corporation with
the benefits of and subject to the terms of this Indenture; 

     AND WHEREAS the foregoing
recitals are made as representations by the Corporation and not by the
Trustee;

     AND WHEREAS the Trustee has
agreed to enter into this Indenture and to hold all rights, interests and
benefits contained herein for and on behalf of those persons who from time to
time become holders of Special Warrants issued pursuant to this Indenture; 

     NOW THEREFORE THIS INDENTURE
WITNESSES that for good and valuable consideration mutually given, the receipt
and sufficiency of which are hereby acknowledged, by each of the 

2. 

Corporation, the Agent and the Trustee, the Corporation hereby
appoints the Trustee as agent for the Special Warrantholder (as hereinafter
defined), to hold all rights, interests and benefits contained herein for and on
behalf of those persons who from time to time become holders of Special Warrants
issued pursuant to this Indenture, and the Corporation, the Agent and the
Trustee hereby covenant, agree and declare as follows: 

ARTICLE 1 
INTERPRETATION 

	1.1 	Definitions 

In this Indenture and in the Special
Warrant Certificates, unless there is something in the subject matter or context
inconsistent therewith: 

	 	(a) 	
      "Accredited Investor" means an "accredited
      investor" as defined in Rule 501(a) of Regulation D;

	 	 	 	 
	 	(b) 	
      "Adjustment Period" means the period commencing on
      the date hereof and ending at the Time of Expiry;

	 	 	 	 
	 	(c) 	
      "Agent" means Blackmont Capital Inc.;

	 	 	 	 
	 	(d) 	
      "Applicable Legislation" means such provisions of
      any statute of Canada or of a province thereof, and of regulations under
      any such statute, relating to trust indentures or to the rights, duties
      and obligations of corporations and of trustees under trust indentures, as
      are from time to time in force and applicable to this Indenture;

	 	 	 	 
	 	(e) 	
      "Business Day" means any day that is not a
      Saturday, Sunday or statutory holiday in Vancouver, British Columbia, or a
      day when the principal office of the Trustee in such city is not generally
      open to the public for the transaction of business;

	 	 	 	 
	 	(f) 	
      "Common Shares" means the fully paid and
      non-assessable shares of common stock, par value $0.01 per share, of the
      Corporation as constituted on the date hereof, provided that, in the event
      of any adjustment pursuant to section 4.7 hereof, Common Shares shall
      thereafter mean or include, as the case may be, the shares, other
      securities or property resulting from such adjustment;

	 	 	 	 
	 	(g) 	
      "Conversion Date" means

	 	 	 	 
	 		(i) 	
      with respect to any Special Warrant exchanged by the
      holder thereof pursuant to subsection 4.1(a) hereof, the day on which the
      Special Warrant Certificate representing such Special Warrant is
      surrendered to the Trustee in accordance with the provisions of section
      4.1 hereof, and

	 	 	 	 
	 		(ii) 	
      with respect to any Special Warrant exchanged by the
      Trustee in accordance with subsection 4.2(a) hereof, the day on which the
      Trustee is required to exchange such Special Warrant pursuant to
      subsection 4.2 hereof;

	 	 	 	 
	 	(h) 	
      "Corporation" means Nord Resources Corporation,
      the party of the first part hereunder, and includes any successor
      corporation to or of the Corporation;

3. 

	 	(i) 	
      "Corporation’s auditors" means Mayer Hoffman
      McCann P.C. or such other independent public accounting firm registered
      with the Public Company Accounting Oversight Board and appointed as the
      auditor of the Corporation;

	 	 	 	 
	 	(j) 	
      "counsel" means a barrister or solicitor or an
      attorney-at-law or a firm of barristers and solicitors or
      attorneys-at-law, who may be counsel for the Corporation, acceptable to
      the Trustee, acting reasonably;

	 	 	 	 
	 	(k) 	
      "Current Market Price" of a Common Share at any
      date means the price per share equal to the weighted average price per
      Common Share being determined by dividing the aggregate sale price of all
      Common Shares sold on the Pink Sheets for any 20 consecutive Trading Days
      immediately preceding such date by the aggregate number of Common Shares
      so sold, or, if the Common Shares are then listed on a more senior stock
      exchange, the volume weighted average price at which the Common Shares
      have traded on such stock exchange for such 20 consecutive Trading Day
      period, or, if not traded on any recognized market or exchange, as
      determined by the directors, acting reasonably;

	 	 	 	 
	 	(l) 	
      "director" means a director of the Corporation for
      the time being, and reference without more to an action by the directors
      means an action by the directors of the Corporation as a board or, to the
      extent empowered, by a committee of the board, in each case by resolution
      duly passed;

	 	 	 	 
	 	(m) 	
      "Effective Date" means the date of this
      Indenture;

	 	 	 	 
	 	(n) 	
      "Expiry Date" means the earliest of:

	 	 	 	 
	 		(i) 	
      the date which is the third Business Day following the
      Qualification Date;

	 	 	 	 
	 		(ii) 	
      the date that is four months and one day following the
      date on which the Corporation becomes a reporting issuer in a jurisdiction
      of Canada; and

	 	 	 	 
	 		(iii) 	
      the date which is two years following the date
    hereof;

	 	 	 	 
	 	(o) 	
      "Extraordinary Resolution" has the meaning
      attributed thereto in sections 7.12 and 7.15 hereof;

	 	 	 	 
	 	(p) 	
      "Final Prospectus" means the (final) prospectus of
      the Corporation which qualifies the distribution of the Units in the
      Qualifying Jurisdictions and includes any amendments or supplements
      thereto;

	 	 	 	 
	 	(q) 	
      “Liquidity Incentive” means an amount equal to 1%
      of the aggregate Purchase Price paid by the holder for the Special
      Warrants multiplied by the number of months (pro rated for partial months)
      commencing on the Penalty Deadline and expiring on the later of (a) the
      Qualification Date, and (b) the date on which the Registration Statement
      is declared effective by the SEC, subject to the limitations set out in
      section 2.2(b);

	 	 	 	 
	 	(r) 	
      “Liquidity Incentive Payment Date” has the meaning
      ascribed thereto in section 2.2(b);

4. 

	 	(s) 	
      "MRRS" means the mutual reliance review system
      established under National Policy 43-201 – Mutual Reliance Review System
      for Prospectuses and Annual Information Forms;

	 	 	 	 
	 	(t) 	
      "National Policy 43-201" means National Policy
      43-201 – Mutual Reliance Review System for Prospectuses and Annual
      Information Forms;

	 	 	 	 
	 	(u) 	
      “Non-Registered Securities” has the meaning
      ascribed thereto in section 2.2(b);

	 	 	 	 
	 	(v) 	
      "Penalty Deadline" means 5:00 p.m. (Vancouver
      time) on the first Business Day which is not less than 180 days after the
      date hereof;

	 	 	 	 
	 	(w) 	
      "Permitted Investments" means short term
      investment grade debt obligations as agreed to by the Corporation and the
      Agent;

	 	 	 	 
	 	(x) 	
      "Person" includes an individual, corporation,
      partnership, trustee, unincorporated organization or any other entity
      whatsoever, and words importing persons have a similar extended
      meaning;

	 	 	 	 
	 	(y) 	
      “Pink Sheets” means the electronic quotation and
      trading system for over the counter securities maintained by Pink Sheets
      LLC;

	 	 	 	 
	 	(z) 	
      "Proceeds" means the gross proceeds received by
      the Corporation in connection with the sale of the Special
  Warrants;

	 	 	 	 
	 	(aa) 	
      “Purchase Price” means $0.75 per Special
      Warrant;

	 	 	 	 
	 	(bb) 	
      "Qualification Date" means the date on which the
      British Columbia Securities Commission, or such other applicable
      securities commission of a Canadian Province, as principal regulator under
      National Policy 43-201 and the MRRS, issues a decision document evidencing
      that each of the Securities Commissions has issued a receipt for the Final
      Prospectus;

	 	 	 	 
	 	(cc) 	
      "Qualifying Jurisdictions" means the provinces of
      Canada where purchasers of Special Warrants are located and any other
      jurisdiction in Canada in which the Corporation is required to file the
      Final Prospectus pursuant to an agreement between the Corporation and the
      Agent, or otherwise;

	 	 	 	 
	 	(dd) 	
      “Registration Statement” means the registration
      statement of the Corporation filed with the SEC, as amended and
      supplemented, in order to register the Unit Shares and Warrant
    Shares;

	 	 	 	 
	 	(ee) 	
      "Regulation D" means Regulation D under the U.S.
      Securities Act;

	 	 	 	 
	 	(ff) 	
      "Regulation S" means Regulation S under the U.S.
      Securities Act;

	 	 	 	 
	 	(gg) 	
      "SEC" means the Securities and Exchange Commission
      in the United States;

	 	 	 	 
	 	(hh) 	
      "Securities Commissions" means, collectively, the
      securities regulatory authorities of the jurisdictions of Canada in which
      Special Warrantholders reside;

5. 

	 	(ii) 	
      "Share Rate" means the number of Units which are
      issuable upon the conversion of each Special Warrant in accordance with
      section 2.2 hereof, subject to adjustment in accordance with section 4.7
      hereof;

	 	 	 
	 	(jj) 	
      "Special Warrant Certificate" means a certificate
      representing one or more Special Warrants substantially in the form of the
      certificate attached hereto as Schedule A;

	 	 	 
	 	(kk) 	
      "Special Warrantholder" or "holders" means
      the persons for the time being entered in a register of holders described
      in section 3.1 hereof as holders of Special Warrants;

	 	 	 
	 	(ll) 	
      "Special Warrantholders’ Request" means an
      instrument, signed in one or more counterparts by Special Warrantholders
      who hold in the aggregate not less than 10% of the total number of Special
      Warrants then outstanding, requesting the Trustee to take some action or
      proceeding specified therein;

	 	 	 
	 	(mm) 	
      "Special Warrants" means the special warrants
      created and issued pursuant to subsections 2.1(a) and 2.1(b) hereof and
      authorized for issue hereunder and represented by Special Warrant
      Certificates issued and certified in accordance with the provisions hereof
      and that have not at the particular time expired, been purchased by the
      Corporation or converted into Units;

	 	 	 
	 	(nn) 	
      "Subsidiary of the Corporation" means any
      corporation or other corporate entity of which Voting Shares carrying more
      than 50% of the votes attached to all outstanding Voting Shares of such
      corporation are owned, directly or indirectly, other than by way of
      security only, by one or more of the Corporation and any Subsidiary of the
      Corporation, regardless of whether the Corporation or such Subsidiary of
      the Corporation is not contractually or otherwise prohibited or restricted
      from exercising sufficient of the voting rights attached to such Voting
      Shares to elect at least a majority of the directors of such
      corporation;

	 	 	 
	 	(oo) 	
      "this Special Warrant Indenture", "this
      Indenture", "hereto", "hereunder", "hereof", "herein", "hereby" and
      similar expressions mean or refer to this Special Warrant Indenture and
      any indenture, deed or instrument supplemental or ancillary hereto, and
      the expressions "article", "section", "subsection", "paragraph",
      "subparagraph", "clause" and "subclause" followed by a number mean the
      specified article, section, subsection, paragraph, subparagraph, clause or
      subclause of this Indenture;

	 	 	 
	 	(pp) 	
      "Time of Expiry" means 5:00 p.m. (Vancouver time)
      on the Expiry Date;

	 	 	 
	 	(qq) 	
      "Trading Day", with respect to any stock exchange
      or over-the-counter market, means a day on which shares may be traded
      through the facilities of such stock exchange or in such over-the-counter
      market and otherwise means a day on which shares may be traded in the
      over-the-counter market (or, any senior stock exchange on which the Common
      Shares are listed);

	 	 	 
	 	(rr) 	
      "Trustee" means Computershare Trust Company of
      Canada, the party of the third part are listed hereunder, including its
      successors and assigns;

6. 

	 	(ss) 	
      "Unit" means an equity unit of the Corporation to
      be issued upon exercise or deemed exercise of the Special Warrants
      consisting of one Unit Share and one Unit Half- Warrant, and
      “Units” means more than one Unit;

	 	 	 
	 	(tt) 	
      "Unit Half-Warrant" means the one-half of one
      Common Share purchase warrant forming part of each Unit, having the
      attributes described in section 2.2 to be issued under the Warrant
      Indenture upon the exercise or deemed exercise of the Special Warrants,
      and “Unit Half-Warrants” means more than one Unit
    Half-Warrant;

	 	 	 
	 	(uu) 	
      "Unit Share" means a Common Share of the
      Corporation forming part of a Unit to be issued upon exercise or deemed
      exercise of the Special Warrants, and “Unit Shares” means more than
      one Unit Share;

	 	 	 
	 	(vv) 	
      "United States" means the United States, as that
      term is defined in Rule 902(1) of Regulation S;

	 	 	 
	 	(ww) 	
      "U.S. Person" means a U.S. person, as that term is
      defined in Rule 902(k) Regulation S;

	 	 	 
	 	(xx) 	
      "U.S. Purchaser" means (i) a person in the United
      States, or (ii) a U.S. Person or (iii) person purchasing on behalf, or for
      the benefit or account, of any U.S. Person or person in the United
      States;

	 	 	 
	 	(yy) 	
      "U.S. Securities Act" means the United States
      Securities Act of 1933, as amended;

	 	 	 
	 	(zz) 	
      "Voting Shares" of any corporation means shares of
      one or more classes or series of a class of shares of such corporation
      carrying voting rights under all circumstances (and not by reason of the
      happening of a contingency) sufficient if exercised to elect all of the
      directors of such corporation, irrespective of whether or not shares of
      any other class or classes shall have or may have the right to vote for
      directors by reason of the happening of any contingency;

	 	 	 
	 	(aaa) 	
      “Warrant Indenture” means the warrant indenture to
      be entered into between the Corporation and Computershare Trust Company of
      Canada governing the Warrants and dated as of the date hereof;

	 	 	 
	 	(bbb) 	
      “Warrant Share” means a Common Share issuable upon
      the exercise of two Unit Half-Warrants, and “Warrant Shares” means
      more than one Warrant Share; and

	 	 	 
	 	(ccc) 	
      "Written Order of the Corporation", "Written
      Request of the Corporation", "Written Consent of the
      Corporation", "Written Direction of the Corporation" and
      "Certificate of the Corporation" mean a written order, request,
      consent, direction and certificate, respectively, signed in the name of
      the Corporation by any director or officer of the Corporation or by any
      other individual to whom such signing authority is delegated by the
      directors from time to time, and may consist of one or more instruments so
      executed respectively.

	1.2 	Words Importing the Singular
  

Words importing the singular include the plural and vice
versa and words importing a particular gender or neuter include both genders
and neuter. 

7. 

	1.3 	Interpretation Not Affected by Headings,
      Etc. 

The division of this Indenture into articles, sections,
subsections, paragraphs, subparagraphs, clauses and subclauses, 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
Indenture. 

	1.4 	Day Not a Business Day

If the day on or before which any action which would otherwise
be required to be taken hereunder is not a Business Day in the place where the
action is required to be taken, that action will be required to be taken on or
before the requisite time on the next succeeding day that is a Business Day.

	1.5 	Time of the Essence 

Time will be of the essence in all respects in this Indenture
and the Special Warrant Certificates. 

	1.6 	Currency 

Except as otherwise stated, all dollar amounts herein and in
the Special Warrant Certificates are expressed in U.S. dollars. 

	1.7 	Applicable Law 

This Indenture and the Special Warrant Certificates will be
construed and enforced in accordance with the laws prevailing in the Province of
British Columbia and the federal laws of Canada applicable therein and will be
treated in all respects as British Columbia contracts. 

ARTICLE 2 
THE SPECIAL WARRANTS 

	2.1 	Creation and Issue of Special Warrants
    

	 	(a) 	
      Creation of Special Warrants: 30,666,700 Special
      Warrants entitling the holders thereof to be issued, subject to adjustment
      in accordance with the provisions of this Indenture, an aggregate of no
      more than 30,666,700 Units together with such additional indeterminate
      number of Units as may be required to be issued pursuant to any adjustment
      required to be made by the provisions of section 4.7 hereof on the terms
      and subject to the conditions herein provided, are hereby created and
      authorized for issue at a price of $0.75 for each Special
  Warrant.

	 	 	 
	 	(b) 	
      Certification of Special Warrants: Upon the issue
      of the Special Warrants and upon receipt of the issue price therefor,
      Special Warrant Certificates shall be executed by the Corporation and
      delivered to the Trustee, certified by the Trustee upon the Written Order
      of the Corporation and delivered by the Trustee to the Corporation or to
      the order of the Corporation pursuant to a Written Direction of the
      Corporation, without any further act of or formality on the part of the
      Corporation and without the Trustee receiving any consideration
      therefor.

8. 

	2.2 	
      Terms of Special Warrants

	 	 	 	 
		(a) 	
      Conversion Terms: Subject to subsection 2.2(c) and
      section 4.7 hereof, each Special Warrant issued hereunder will entitle the
      holder thereof, upon the conversion thereof in accordance with the
      provisions of Article Four hereof, and without payment of any additional
      consideration, to be issued:

	 	 	 	 
			(i) 	
      one Unit, each Unit consisting of one Unit Share and one
      Unit Half-Warrant, with each two Unit Half-Warrants entitling the holder
      to purchase one Warrant Share at the price of $1.10 for a period of 60
      months from the date of issuance of the Special Warrants, subject to
      adjustment in accordance with the provisions of the Warrant Indenture;
      or

	 	 	 	 
			(ii) 	
      if the Qualification Date has not occurred prior to the
      Penalty Deadline, one Unit and the Liquidity Incentive.

	 	 	 	 
		(b) 	
      Liquidity Incentive: Notwithstanding anything to
      the contrary contained herein (i) the total Liquidity Incentive payable to
      the holder shall not exceed: (a) in any given month, 1% of the aggregate
      Purchase Price paid by the holder for the Special Warrants; and (b) an
      aggregate amount equal to 12% of the aggregate Purchase Price paid by the
      holder for the Special Warrants; the Liquidity Incentive shall be payable
      at the end of each month (each a “Liquidity Incentive Payment
      Date”), and shall be subject to “gross up” to compensate for the
      impact of withholding taxes, if applicable, and (ii) to the extent that
      the registration by the Corporation of any or all of the Registerable
      Securities pursuant to the Registration Statement is prohibited (in this
      section, the “Non-Registered Securities”) as a result of rules,
      regulations, positions or releases issued or actions taken by the SEC
      pursuant to its authority with respect to Rule 415 under the 1933 Act and
      the Corporation has registered at such time the maximum number of
      Registerable Securities permissible upon consultation with the SEC, then
      the Liquidity Incentive described herein shall not be applicable to such
      Non-Registered Securities. The above-mentioned “gross up” amount, which
      may become payable to the holder pursuant to this subsection 2.2, shall be
      returned to the Corporation to the extent of any tax credit or other form
      of refund or credit received by or credited to the holder subsequent to
      the date of any such payment in connection with the Liquidity Incentive,
      provided that such tax credit or refund was directly connected to the
      payment representing such “gross up”.

	 	 	 	 
		(c) 	
      Purchase by Corporation: The Corporation may from
      time to time purchase Special Warrants by private agreement or otherwise,
      any such purchase may be made in such manner, from such persons, at such
      prices and on such terms as the Corporation in its sole discretion may
      determine. Special Warrant Certificates representing Special Warrants
      purchased by the Corporation pursuant to this subsection 2.2(c) shall be
      surrendered to the Trustee for cancellation and shall be accompanied by a
      Written Direction of the Corporation to cancel the Special Warrants
      represented thereby.

	 	 	 	 
	2.3 	
      Form of Special Warrant Certificates

	 	 	 	 
		(a) 	
      Form: The Special Warrant Certificates (including
      the certificate of the Trustee endorsed thereon) will be substantially in
      the form of the certificate attached hereto as Schedule A, will be dated
      as of the date hereof (regardless of the actual dates of their issue),
      will bear such distinguishing letters and numbers as the
    Corporation,

9. 

	 		
      with the approval of the Trustee, may prescribe and such
      legends as permitted under this Indenture and will be issuable in any
      whole number denomination.

	 	 	 
	 	(b) 	
      Production: The Special Warrant Certificates may
      be engraved, lithographed or printed (the expression "printed" including
      for purposes hereof both original typewritten material as well as
      mimeographed, mechanically, photographically, photostatically or
      electronically reproduced, typewritten or other written material), or
      partly in one form and partly in another, as the Corporation may
      determine.

	 	 	 
	 	(c) 	
      Legends: Certificates representing Special
      Warrants, as well as all certificates issued in exchange for or in
      substitution of such certificates representing Special Warrants, shall
      bear the following legends

	 	 	 
	 		
      "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT
      IS FOUR MONTHS AND A DAY AFTER THE LATER OF (I) JUNE 5, 2007, AND (II) THE
      DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF
      CANADA.";

	 	 	 
	 	(d) 	
      Additional United States Legend (U.S. Persons and
      Persons in the United States): Certificates representing Special
      Warrants originally issued to a U.S. Purchaser, as well as all
      certificates issued in exchange for or in substitution of such
      certificates representing Special Warrants, shall bear the following
      additional legend:

	 	 	 
	 		
      “THIS SPECIAL WARRANT AND THE SECURITIES ISSUABLE UPON
      CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY
      STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
      OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY
      APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION
      FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS.”;

	 	 	 
	 	(e) 	
      Additional United States Legend (Non-U.S. Persons and
      Persons Outside the United States): Certificates representing Special
      Warrants originally issued to a Person other than a Person described in
      subsection 2.3(d), as well as all certificates issued in exchange for or
      in substitution of such certificates representing Special Warrants, shall
      bear the following additional legend:

	 	 	 
	 		
      “THIS SPECIAL WARRANT AND THE SECURITIES ISSUABLE UPON
      CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY
      STATE SECURITIES LAWS, AND HAVE BEEN OFFERED AND SOLD IN AN OFFSHORE
      TRANSACTION PURSUANT TO REGULATION S PROMULGATED UNDER THE U.S. SECURITIES
      ACT. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE
      SECURITIES LAWS, OR

10. 

			PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION
      UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
      HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS
      IN COMPLIANCE WITH THE U.S. SECURITIES ACT.”;
	 	 	 
		(f) 	
      The Trustee agrees to use its reasonable best efforts to
      remove the U.S. legend within three Business Days (excluding weekends and
      holidays) of receipt of documentation acceptable to the Corporation in
      respect thereof.

	 	 	 
		(g) 	
      Rights: Each Special Warrant shall entitle the
      holder thereof to such other rights and privileges which are set forth in
      this Indenture.

	 	 	 
	2.4 	
      Signing of Special Warrant Certificates

	 	 	 
		(a) 	
      Signing Officers: The Special Warrant Certificates
      shall be signed by any one officer of the Corporation or any one director
      or by any other individual to whom such signing authority is delegated by
      the directors from time to time.

	 	 	 
		(b) 	
      Signatures: The signature of any officer of the
      Corporation or director or any individual referred to in subsection 2.4(a)
      hereof may be a manual signature, engraved, lithographed or printed in
      facsimile and Special Warrant Certificates bearing such facsimile
      signature will, subject to section 2.5 hereof, be binding on the
      Corporation as if they had been manually signed by such officer of the
      Corporation or director or individual.

	 	 	 
		(c) 	
      No Longer Officer: Notwithstanding that any
      individual whose manual or facsimile signature appears on a Special
      Warrant Certificate as one of the officers of the Corporation or directors
      referred to in subsection 2.4(a) hereof no longer holds the same or any
      other office with, or is no longer a director of, the Corporation at the
      date of issue of any Special Warrant Certificate or at the date of
      certification or delivery thereof, such Special Warrant Certificate will,
      subject to section 2.5 hereof, be valid and binding on the
    Corporation.

	 	 	 
	2.5 	
      Certification by Trustee

	 	 	 
		(a) 	
      Certification: No Special Warrant Certificate will
      be issued or, if issued, will be valid or entitle the holder to the
      benefits hereof until it has been certified by manual signature by or on
      behalf of the Trustee substantially in the form of the certificate
      attached hereto as Schedule A or in such other form as may be approved by
      the Trustee. The certification by the Trustee on a Special Warrant
      Certificate will be conclusive evidence as against the Corporation that
      such Special Warrant Certificate has been issued hereunder and that the
      holder thereof is entitled to the benefits hereof.

	 	 	 
		(b) 	
      Certification No Representation: The certification
      by the Trustee on any Special Warrant Certificate issued hereunder will
      not be construed as a representation or warranty by the Trustee as to the
      validity of this Indenture or such Special Warrant Certificate (except the
      due certification thereof) or as to the performance by the Corporation of
      the obligations thereof under this Indenture, and the Trustee shall
    in

11. 

no respect be liable or answerable for
the use made of any Special Warrant Certificate or of the consideration
therefor, except as otherwise specified herein. 

	2.6 	Special Warrants to Rank Pari Passu
  

All Special Warrants will rank pari passu, whatever may
be the actual dates of issue of the Special Warrant Certificates by which they
are represented. 

	2.7 	
      Issue in Substitution for Lost Certificates,
      Etc.

	 	 	 	 
		(a) 	
      Substitution: If any Special Warrant Certificate
      becomes mutilated or is lost, destroyed or stolen, the Corporation,
      subject to applicable law and to subsection 2.7(b) hereof, will issue, and
      thereupon the Trustee will certify and deliver, a new Special Warrant
      Certificate of like denomination and tenor and bearing the applicable
      legends as the one mutilated, lost, destroyed or stolen in exchange for
      and in place of and on surrender and cancellation of such mutilated
      certificate or in lieu of and in substitution for such lost, destroyed or
      stolen certificate and the Special Warrants evidenced thereby shall be
      entitled to the benefits hereof and shall rank equally in accordance with
      its terms with all other Special Warrants issued or to be issued
      hereunder.

	 	 	 	 
		(b) 	
      Cost of Substitution: The applicant for the issue
      of a new Special Warrant Certificate pursuant to this section 2.7 shall
      bear the reasonable cost of the issue thereof and, in the case of loss,
      destruction or theft, shall as a condition precedent to the issue
      thereof:

	 	 	 	 
			(i) 	
      furnish to the Corporation and to the Trustee such
      evidence of ownership and of the loss, destruction or theft of the Special
      Warrant Certificate to be replaced as is satisfactory to the Corporation
      and to the Trustee in their discretion, acting reasonably;

	 	 	 	 
			(ii) 	
      if so requested, furnish an indemnity and surety bond in
      amount and form satisfactory to the Corporation and to the Trustee in
      their discretion, acting reasonably; and

	 	 	 	 
			(iii) 	
      if so requested, pay the reasonable charges of the
      Corporation and the Trustee in connection therewith.

	 	 	 	 
	2.8 	
      Cancellation of Surrendered Special
  Warrants

All Special Warrant Certificates surrendered to the Trustee in
accordance with the provisions of this Indenture will be cancelled by the
Trustee and, if requested in writing by the Corporation, the Trustee will
furnish the Corporation with a cancellation certificate identifying each Special
Warrant Certificate so cancelled, the number of Special Warrants represented
thereby and the number of Common Shares, if any, issued pursuant to such
Special Warrants.

	2.9 	Special Warrantholder not a Shareholder
    

Except as provided in sections 4.7 and 5.1(m), nothing in this
Indenture or in the holding of a Special Warrant represented by a Special
Warrant Certificate, or otherwise, shall, in itself, be construed as conferring
on any Special Warrantholder any right or interest whatsoever as a shareholder
of the 

12. 

Corporation, including but not limited to any right to vote at,
to receive notice of, or to attend, any meeting of shareholders. 

ARTICLE 3 
REGISTRATION, TRANSFER AND OWNERSHIP OF
SPECIAL WARRANTS AND 
EXCHANGE OF SPECIAL WARRANT CERTIFICATES 

	3.1 	
      Registration and Transfer of Special
    Warrants

	 	 	 	 
		(a) 	
      Register: The Corporation will cause to be kept by
      the Trustee at the principal office in Vancouver, British Columbia of the
      Trustee:

	 	 	 	 
			(i) 	
      a register of holders in which shall be entered the names
      and addresses of the holders of Special Warrants and particulars of the
      Special Warrants held by them; and

	 	 	 	 
			(ii) 	
      register of transfers in which all transfers of Special
      Warrants and the date and other particulars of each transfer shall be
      entered.

	 	 	 	 
		(b) 	
      Transfer: Subject to subsection 3.1(c) no transfer
      of any Special Warrant will be valid unless entered on the register of
      transfers referred to in subsection 3.1(a) hereof, or on any branch
      register maintained pursuant to subsection 3.1(h) hereof, upon surrender
      to the Trustee of the Special Warrant Certificate representing such
      Special Warrant, with a properly completed transfer form in substantially
      the form attached to the Special Warrant Certificate executed by the
      registered holder or the executors, administrators or other legal
      representatives thereof or the attorney thereof duly appointed by an
      instrument in writing in form and executed in a manner satisfactory to the
      Trustee, acting reasonably, and, upon compliance with such requirements
      and such other reasonable requirements as the Trustee may prescribe, such
      transfer will be duly noted on one of such registers by the
  Trustee.

	 	 	 	 
		(c) 	
      Certain Transfers: If the Special Warrant
      Certificate surrendered pursuant to subsection 3.1(b) hereof bears the
      legend set forth in subsection 2.3(d) or subsection 2.3(e) hereof and the
      holder thereof is selling Special Warrants represented thereby in
      compliance with the requirements of Rule 144 under the U.S. Securities
      Act, such legend may be removed by delivery to the Trustee and the
      Corporation of an opinion of counsel, of recognized standing reasonably
      satisfactory to the Corporation, that such legend is no longer required
      under applicable requirements of the U.S. Securities Act or state
      securities laws. A Special Warrant may also be transferred otherwise than
      pursuant to Rule 144 under the U.S. Securities Act absent registration
      under the U.S. Securities Act or applicable state securities laws pursuant
      to an available exemption from such registration requirements, if the
      Trustee and the Corporation are provided with an opinion of counsel, of
      recognized standing reasonably satisfactory to the Corporation, to such
      effect; provided that the Special Warrant Certificate issued to the
      transferee shall bear such legend or legends as the Corporation may, on
      the advice of counsel, direct.

	 	 	 	 
		(d) 	
      Register of Transfers: The transferee of any
      Special Warrant will, after surrender to the Trustee of the Special
      Warrant Certificate representing such Special Warrant as required by
      subsection 3.1(b) hereof and upon compliance with all other conditions in
      respect thereof required by this Indenture or by law, be entitled to be
      entered on the

13. 

			
      register of holders referred to in subsection 3.1(a)
      hereof, or on any branch register of holders maintained pursuant to
      subsection 3.1(h) hereof, as the owner of such Special Warrant free from
      all equities or rights of set-off or counterclaim between the Corporation
      and the transferor or any previous holder of such Special Warrant, except
      in respect of equities of which the Corporation is required to take notice
      by statute or by order of a court of competent jurisdiction.

	 	 	 
		(e) 	
      Refusal of Registration: The Corporation shall be
      entitled, and may direct the Trustee, to refuse to recognize any transfer,
      or enter the name of any transferee, of any Special Warrant on the
      registers referred to in subsection 3.1(a) hereof or on any branch
      register maintained pursuant to subsection 3.1(h) hereof if such transfer
      would constitute a violation of the securities laws of any jurisdiction or
      the instruments, rules, regulations or policies of any regulatory
      authority (including any stock exchange upon which the Common Shares may
      listed and posted for trading) having jurisdiction.

	 	 	 
		(f) 	
      No Notice of Trusts: Subject to applicable law,
      neither the Corporation nor the Trustee will be bound to take notice of or
      see to the execution of any trust, whether express, implied or
      constructive, in respect of any Special Warrant, and may transfer any
      Special Warrant on the direction of the person registered as the holder
      thereof, whether named as trustee or otherwise, as though that person were
      the beneficial owner thereof.

	 	 	 
		(g) 	
      Inspection: The registers referred to in
      subsection 3.1(a) hereof, and any branch register maintained pursuant to
      subsection 3.1(h) hereof, will at all reasonable times be open for
      inspection by the Corporation, the Agent and any Special Warrantholder.
      The Trustee will from time to time when requested to do so in writing by
      the Corporation or any Special Warrantholder (upon payment of the
      reasonable charges of the Trustee) furnish the Corporation or such Special
      Warrantholder with a list of the names and addresses of holders of Special
      Warrants entered on such registers and showing the number of Special
      Warrants held by each such holder.

	 	 	 
		(h) 	
      Location of Registers: The Corporation may at any
      time and from time to time change the place at which the registers
      referred to in subsection 3.1(a) hereof are kept, cause branch registers
      of holders or transfers to be kept, in each case subject to the approval
      of the Trustee, at other places and close such branch registers or change
      the place at which such branch registers are kept. Notice of all such
      changes or closures shall be given by the Corporation to the Trustee, the
      Agent and to the holders of Special Warrants in accordance with section
      10.2 hereof.

	 	 	 
	3.2 	
      Exchange of Special Warrant Certificates

	 	 	 
		(a) 	
      Exchange: One or more Special Warrant Certificates
      may at any time prior to the Time of Expiry, on compliance with the
      reasonable requirements of the Trustee, be exchanged for one or more
      Special Warrant Certificates of different denominations representing in
      the aggregate the same number of Special Warrants as the Special Warrant
      Certificate or Special Warrant Certificates being exchanged.

	 	 	 
		(b) 	
      Place of Exchange: Special Warrant Certificates
      may be exchanged only at the principal office in Vancouver, British
      Columbia of the Trustee or at any other place designated by the
      Corporation with the approval of the Trustee.

14. 

	 	(c) 	
      Cancellation: Any Special Warrant Certificate
      tendered for exchange pursuant to this section 3.2 shall be surrendered to
      the Trustee and cancelled.

	 	 	 
	 	(d) 	
      Execution: The Corporation will sign all Special
      Warrant Certificates in accordance with section 2.4 hereof necessary to
      carry out exchanges pursuant to this section 3.2 and such Special Warrant
      Certificates will be certified by the Trustee.

	 	 	 
	 	(e) 	
      Special Warrant Certificates: Special Warrant
      Certificates exchanged for Special Warrant Certificates that bear any of
      the legends set forth in section 2.3 hereof shall bear the same
      legends.

	3.3 	Charges for Transfer or Exchange
  

A charge will be levied on a presenter of a Special Warrant
Certificate pursuant to this Indenture for the transfer of any Special Warrant
or the exchange of any Special Warrant Certificate. 

	3.4 	
      Ownership of Special Warrants

	 	 	 
		(a) 	
      Owner: The Corporation and the Trustee may deem
      and treat the person in whose name any Special Warrant is registered as
      the absolute owner of such Special Warrant for all purposes, and such
      person will for all purposes of this Indenture be and be deemed to be the
      absolute owner thereof, and the Corporation and the Trustee will not be
      affected by any notice or knowledge to the contrary, except as may
      otherwise be set forth herein or as required by statute or by order of a
      court of competent jurisdiction.

	 	 	 
		(b) 	
      Rights of Registered Holder: The registered holder
      of any Special Warrant will be entitled to the rights represented thereby
      free from all equities and rights of set-off or counterclaim between the
      Corporation and the original or any intermediate holder thereof and all
      persons may act accordingly, and the issue and delivery to any such
      registered holder of the Units issuable pursuant thereto and the payment
      of the Liquidity Incentive, if applicable, will be a good discharge to the
      Corporation and the Trustee therefor, and neither the Corporation nor the
      Trustee will be bound to inquire into the title of any such registered
      holder.

ARTICLE 4 
CONVERSION OF SPECIAL WARRANTS AND
PAYMENT OF LIQUIDITY INCENTIVE 

	4.1 	
      Conversion by Holder

	 	 	 
		(a) 	
      Conversion: Subject to the limitation set forth in
      subsection 4.1(b) hereof and section 4.7 hereof, the holder of any Special
      Warrant may at any time after the Penalty Deadline but prior to the Time
      of Expiry exercise the right thereby conferred to be issued Units by
      surrendering to the Trustee at the principal office in Vancouver, British
      Columbia, of the Trustee, or to any other person or at any other place
      designated by the Corporation with the approval of the Trustee, during
      normal business hours on a Business Day at such place, the Special Warrant
      Certificate representing such Special Warrant, with a completed and
      executed notice of conversion substantially in the form attached to such
      Special Warrant Certificate.

15. 

		(b) 	
      Surrender: Any Special Warrant Certificate with a
      completed and executed notice of conversion referred to in subsection
      4.1(a) hereof will be deemed to have been surrendered to the Trustee only
      on personal delivery thereof to, or, if sent by mail or other means of
      transmission, on actual receipt thereof by, the Trustee or one of the
      other persons at the office or one of the other places specified in
      subsection 4.1(a) hereof.

	 	 	 
		(c) 	
      Notice of Conversion: Any notice of conversion
      referred to in subsection 4.1(a) hereof must be signed by the Special
      Warrantholder, or the executors, administrators or other legal
      representatives thereof or the attorney thereof duly appointed by an
      instrument in writing in form and executed in a manner satisfactory to the
      Trustee, acting reasonably, and, if any Units thereby issuable are to be
      issued to a person or persons other than the Special Warrantholder, must
      specify the name or names and the address or addresses of each such person
      or persons and the number of Units to be issued to each such person if
      more than one is so specified (and, in this case, the signature appearing
      on the notice of conversion must be signature guaranteed by a Schedule 1
      Canadian chartered bank or a member of a recognized securities transfer
      agents medallion program, with the stamp affixed thereon bearing the
      actual words "signature guarantee" or "signature medallion guaranteed" and
      otherwise be in accordance with industry standards).

	 	 	 
		(d) 	
      Conversion of Less than All: The holder of any
      Special Warrants may exercise his right to acquire a number of Units less
      than the aggregate number which the holder is entitled to acquire pursuant
      to the surrendered Special Warrant Certificate(s). In the event of any
      conversion of a number of Special Warrants less than the number which the
      holder is entitled to convert, the holder of the Special Warrants upon
      such conversion shall, in addition, be entitled to receive, without charge
      therefor, a new Special Warrant Certificate(s) in respect of the balance
      of the Special Warrants represented by the surrendered Special Warrant
      Certificate(s) and which were not then converted.

	 	 	 
	4.2 	
      Conversion by Trustee

	 	 	 
		(a) 	
      Conversion by Trustee: If any Special Warrant has
      not been converted pursuant to section 4.1 hereof prior to the Time of
      Expiry, such Special Warrant will be converted by the Trustee for and on
      behalf of the holder thereof and, without any action on the part of the
      holder thereof (including the surrender of any Special Warrant
      Certificate), the Special Warrants shall be deemed to have been converted
      into Units immediately prior to the Time of Expiry in accordance with
      section 4.1 hereof.

	 	 	 
		(b) 	
      Rights on Conversion by Trustee: The holder of any
      Special Warrant converted pursuant to subsection 4.2(a) hereof shall have
      no further rights as a Special Warrantholder except to receive the
      certificates representing the Unit Shares and Unit Half-Warrants issued
      upon the conversion thereof to such holder in accordance with sections 4.3
      and 4.4 hereof.

	 	 	 
		(c) 	
      Direction of Trustee: The holders of Special
      Warrants hereby irrevocably authorize and direct the Trustee to convert
      the Special Warrants thereof pursuant to subsection 4.2(a)
  hereof.

16. 

	4.3 	
      Effect of Conversion

	 	 	 
		(a) 	
      Effect of Conversion: Upon the conversion of any
      Special Warrants in accordance with section 4.1 or 4.2 hereof, the Unit
      Shares and Unit Half-Warrants thereby issuable will be deemed to have been
      issued, and the person or persons to whom such Unit Shares and Unit
      Half-Warrants are to be issued will be deemed to have become the holder or
      holders of record thereof, on the Conversion Date, unless the transfer
      registers maintained by or on behalf of the Corporation for the Unit
      Shares and Unit Half-Warrants are closed on that date, in which case such
      Unit Shares and Unit Half- Warrants will be deemed to have been issued,
      and such person or persons will be deemed to have become the holder or
      holders of record thereof, on the date on which such transfer registers
      are reopened, but such Unit Shares and Unit Half-Warrants will be issued
      on the basis of the number of Unit Shares and Unit Half-Warrants to which
      such person or persons were entitled on the Conversion Date. The
      certificates representing the Unit Shares and Unit Half-Warrants which are
      issued to a holder of Special Warrants upon the conversion of Special
      Warrants by the Trustee pursuant to subsection 4.2(a) hereof shall be
      issued in the name of such holder.

	 	 	 
		(b) 	
      Mailing of Certificates: Within three Business
      Days after the Conversion Date, the Trustee shall mail to the person or
      persons in whose name or names the Unit Shares and Unit Half-Warrants
      thereby issued have been issued, at the respective addresses thereof, or,
      if so specified, deliver to such person or persons at the place where a
      Special Warrant Certificate representing Special Warrants was surrendered,
      certificates representing the Unit Shares and Unit Half-Warrants so
      issued.

	 	 	 
		(c) 	
      Issue to Other than Holder: If any Unit Shares and
      Unit Half-Warrants issuable pursuant to any Special Warrants are to be
      issued to a person or persons other than the Special Warrantholder, the
      Special Warrantholder must pay to the Corporation an amount equal to all
      exigible transfer taxes or other government charges, and neither the
      Corporation nor the Trustee shall be required to issue or deliver any
      certificates representing any such Unit Shares and Unit Half-Warrants
      unless or until such amount has been so paid or the Special Warrantholder
      has established to the satisfaction of the Corporation in its discretion,
      acting reasonably, that such taxes and charges have been paid or that no
      such taxes or charges are owing.

	 	 	 
	4.4 	
      No Fractional Units

	 	 	 
		(a) 	
      The Corporation will not, whether pursuant to an
      adjustment in accordance with section 4.7 hereof or under any other
      circumstance, be obligated after the aggregation of the number of Unit
      Shares and Unit Half-Warrants to be issued to each holder of Special
      Warrants to issue any fraction of a Unit Share or Unit Half-Warrant on the
      conversion of Special Warrants. If a holder of Special Warrant would
      otherwise be entitled to a fractional Unit Share or Unit Half-Warrant
      pursuant to the Special Warrants, the number of Unit Shares and Unit
      Half-Warrants to be issued shall be rounded down to the next whole number,
      and the holder of such Special Warrants shall not be entitled to any cash
      compensation in respect of such fraction.

	 	 	 
		(b) 	
      For the purpose of subsection 4.4(a), in the case of a
      holder of Special Warrants exercising Special Warrants represented by more
      than one Special Warrant Certificate, the fractional interest of such
      holder shall be the fractional interest of a Unit Share and Unit
      Half-Warrant such Special Warrantholder would otherwise
  be

17. 

entitled to receive if the Special
Warrants being exercised were represented by one Special Warrant Certificate.

	4.5 	Recording 

The Trustee will record the particulars of each Special Warrant
converted, which particulars will include the name and address of each person to
whom Units are thereby issued, the number of Units so issued and the Conversion
Date in respect thereof. Within three Business Days after each Conversion Date,
the Trustee will provide such particulars in writing to the Corporation. 

	4.6 	
      Securities Restrictions

	 	 	 
		(a) 	
      General: No Units will be issued pursuant to the
      conversion of any Special Warrant if the issue of such Units would
      constitute a violation of the securities laws of the applicable
      jurisdiction and, without limiting the generality of the foregoing, the
      certificates representing the Unit Shares, Unit Half-Warrants and Warrant
      Shares thereby issued will bear such legend or legends as may, in the
      opinion of counsel to the Corporation, be necessary or advisable in order
      to avoid a violation of any securities laws of any jurisdiction or to
      comply with the requirements of any stock exchange on which the Common
      Shares are then listed, provided that if, at any time, in the opinion of
      counsel to the Corporation, such legend or legends are no longer necessary
      or advisable in order to avoid a violation of any such laws or
      requirements, or the holder of any such legended certificate, at the
      expense thereof, provides the Corporation with evidence satisfactory in
      form and substance to the Corporation (which may include an opinion of
      counsel satisfactory to the Corporation) to the effect that such holder is
      entitled to sell or otherwise transfer such Unit Half- Warrants, if
      transferable, Unit Shares and Warrant Shares in a transaction in which
      such legend or legends are not required, such legended certificate may
      thereafter be surrendered to the Corporation in exchange for a certificate
      which does not bear such legend or legends.

	 	 	 
		(b) 	
      Canadian Legends: Certificates representing Unit
      Shares and Unit Half-Warrants issued upon the conversion of Special
      Warrants and without the British Columbia Securities Commission, as the
      principal regulator under National Policy 43-201 and the MRRS, having
      issued a decision document evidencing that each of the Securities
      Commissions has issued a receipt for the Final Prospectus, shall bear the
      following legend:

	 	 	 
			
      "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT
      IS FOUR MONTHS AND A DAY AFTER THE LATER OF (I) JUNE 5, 2007 AND (II) THE
      DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF
      CANADA.".

	 	 	 
		(c) 	
      U.S. Legends (U.S. Persons and Persons in the United
      States): If the Special Warrant Certificate representing the Special
      Warrants converted in accordance with this article four bears the legend
      set forth in subsection 2.3(d) hereof, then any certificate representing
      Unit Shares and Unit Half-Warrants issued upon the conversion thereof,
      shall bear the following legend:

18. 

			
      “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE
      SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND
      IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
      EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND
      ANY APPLICABLE STATE SECURITIES LAWS.”

	 	 	
       

			
      provided that, if any such Unit Shares or Unit
      Half-Warrants are being sold pursuant to Rule 144 under the U.S.
      Securities Act, the legend may be removed by delivery to the registrar and
      transfer agent for the Unit Shares or Unit Half-Warrants and the
      Corporation of any opinion of counsel, of recognized standing reasonably
      satisfactory to the Corporation, that such legend is no longer required
      under applicable requirements of the U.S. Securities Act or state
      securities laws.

	 	 	 
		(d) 	
      U.S. Legends (Non-U.S. Persons and Persons Outside the
      United States): If the Special Warrant Certificate representing the
      Special Warrants converted in accordance with this article four bears the
      legend set forth in subsection 2.3(e) hereof, then any certificate
      representing Unit Shares and Unit Half-Warrants issued upon the conversion
      thereof, shall bear the following legend:

	 	 	 
			
      “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE BEEN
      OFFERED AND SOLD IN AN OFFSHORE TRANSACTION PURSUANT TO REGULATION S
      PROMULGATED UNDER THE U.S. SECURITIES ACT. THEY MAY NOT BE SOLD, OFFERED
      FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE
      WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR
      EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S.
      SECURITIES ACT.”

	 	 	 
			
      provided that, if any such Unit Shares or Unit
      Half-Warrants are being sold pursuant to Rule 144 under the U.S.
      Securities Act, the legend may be removed by delivery to the registrar and
      transfer agent for the Unit Shares or Unit Half-Warrants and the
      Corporation of any opinion of counsel, of recognized standing reasonably
      satisfactory to the Corporation, that such legend is no longer required
      under applicable requirements of the U.S. Securities Act or state
      securities laws.

	 	 	 
	4.7 	
      Adjustments

	 	 	 
		(a) 	
      Adjustment: The rights of the holder of any
      Special Warrant, including the number of Units issuable upon the
      conversion or deemed conversion of such Special Warrant, will be adjusted
      from time to time in the events and in the manner provided in, and in
      accordance with the provisions of, this
section.

19. 

	 	(b) 	
      The Share Rate in effect at any date will be subject to
      adjustment from time to time as follows:

	 	 	 	 
	 		(i) 	
      Share Reorganization: If, and whenever at any time
      during the Adjustment Period, the Corporation shall (A) subdivide,
      redivide or change the outstanding Common Shares into a greater number of
      shares, (B) reduce, consolidate or combine the outstanding Common Shares
      into a lesser number of shares, or (C) issue Common Shares (or securities
      convertible or exchangeable into Common Shares) to all or substantially
      all of the holders of Common Shares by way of a stock dividend or other
      distribution, then, in each such event, the Share Rate will, on the record
      date for such event or, if no record date is fixed, the effective date of
      such event, be adjusted so that it will equal the rate determined by
      multiplying the Share Rate in effect immediately prior to such date by a
      fraction, of which the denominator shall be the total number of Common
      Shares outstanding on such date before giving effect to such event, and of
      which the numerator shall be the total number of Common Shares outstanding
      on such date after giving effect to such event (including Common Shares
      into which such convertible or exchangeable securities by way of stock
      dividend may be issued). Such adjustment will be made successively
      whenever any such event shall occur. Any such issue of Common Shares by
      way of a stock dividend shall be deemed to have been made on the record
      date for such stock dividend for the purpose of calculating the number of
      outstanding Common Shares under this section 4.7.

	 	 	 	 
	 		(ii) 	
      Rights Offering: If, and whenever at any time
      during the Adjustment Period, the Corporation shall fix a record date for
      the issue of rights, options or warrants to all or substantially all of
      the holders of Common Shares entitling the holders thereof, within a
      period expiring not more than 45 days after the record date for such
      issue, to subscribe for or purchase Common Shares (or securities
      convertible into or exchangeable for Common Shares) at a price per share
      (or having a conversion or exchange price per share) less than 95% of the
      Current Market Price on the earlier of such record date and the date on
      which the Corporation announces its intention to make such issue, then, in
      each such case, the Share Rate will be adjusted immediately after such
      record date so that it will equal the rate determined by multiplying the
      Share Rate in effect on such record date by a fraction, of which the
      denominator shall be the total number of Common Shares outstanding on such
      record date plus the number arrived at when (A) either the product of (1)
      the number of Common Shares offered for subscription and (2) the price at
      which those Common Shares are offered, or the product of (3) the
      conversion price thereof and (4) the maximum number of Common Shares for
      or into which the convertible or exchangeable securities so offered
      pursuant to the rights offering may be converted or exchanged, as the case
      may be, is divided by (B) the Current Market Price on the record date, and
      of which the numerator shall be the total number of Common Shares
      outstanding on such record date plus the total number of additional Common
      Shares so offered for subscription or purchase (or into or for which the
      convertible or exchangeable securities so offered are convertible or
      exchangeable). Any Common Shares owned by or held for the account of the
      Corporation or any Subsidiary of the Corporation shall be deemed not to be
      outstanding for the purpose of any such computation. Such adjustment will
      be made successively whenever such a record date is fixed, provided that
      if two or

20. 

	 		
      more such record dates or record dates referred to in
      clause 4.7(b)(iii) hereof are fixed within a period of 25 Trading Days,
      such adjustment will be made successively as if each of such record dates
      occurred on the earliest of such record dates. To the extent that any such
      rights, options or warrants are not exercised prior to the expiration
      thereof, the Share Rate will then be readjusted to the Share Rate which
      would then be in effect based upon the number of Common Shares (or
      securities convertible into or exchangeable for Common Shares) actually
      issued upon the exercise of such rights, options or warrants, as the case
      may be.

	 	 	 
	 	(iii) 	
      Distribution: If, and whenever at any time during
      the Adjustment Period, the Corporation shall fix a record date for the
      making of a distribution to all or substantially all of the holders of
      Common Shares of (A) shares of any class other than Common Shares whether
      of the Corporation or any other corporation, (B) rights, options or
      warrants to acquire Common Shares or securities exchangeable for or
      convertible into Common Shares or property or other assets or the
      Corporation (other than rights, options or warrants exercisable by the
      holders thereof within a period expiring not more than 45 days after the
      record date for such issue or distribution to acquire Common Shares or
      securities exchangeable for or convertible into Common Shares at a price
      per share, or at an exchange or conversion price per share in the case of
      securities exchangeable for or convertible into Common Shares, of at least
      95% of the Current Market Price of the Common Shares on such record date),
      (C) evidences of indebtedness, or (D) cash, securities or other property
      or assets then, in each such case, the Share Rate will be adjusted
      immediately after such record date so that it will equal the rate
      determined by multiplying the Share Rate in effect on such record date by
      a fraction, of which the denominator shall be the total number of Common
      Shares outstanding on such record date multiplied by the Current Market
      Price on the earlier of such record date and the date on which the
      Corporation announces its intention to make such distribution, less the
      aggregate fair market value (as determined by the directors, acting
      reasonably, at the time such distribution is authorized) of such shares or
      rights, options or warrants or evidences of indebtedness or cash,
      securities or other property or assets so distributed, and of which the
      numerator shall be the total number of Common Shares outstanding on such
      record date multiplied by such Current Market Price. Any Common Shares
      owned by or held for the account of the Corporation or any Subsidiary of
      the Corporation shall be deemed not to be outstanding for the purpose of
      any such computation. Such adjustment will be made successively whenever
      such a record date is fixed, provided that if two or more such record
      dates or record dates referred to in clause 4.7(b)(ii) hereof are fixed
      within a period of 25 Trading Days, such adjustment will be made
      successively as if each of such record dates occurred on the earliest of
      such record dates. To the extent that any such rights, options or warrants
      so distributed are not exercised prior to the expiration thereof, the
      Share Rate will then be readjusted to the Share Rate which would then be
      in effect based upon such rights, options or warrants or evidences of
      indebtedness or cash, securities or other property or assets actually
      distributed or based upon the number or amount of securities or the
      property or assets actually issued or distributed upon the exercise of
      such rights, options or warrants, as the case may
be.

21. 

	 	(c) 	
      Reclassifications: If and whenever at any time
      during the Adjustment Period, there is (A) any reclassification of the
      outstanding Common Shares, any change of the Common Shares into other
      shares or any other reorganization of the Corporation (other than as
      described in subsection 4.7(b) hereof), (B) any consolidation,
      amalgamation, arrangement, merger or other form of business combination of
      the Corporation with or into any other corporation, trust, partnership or
      other entity resulting in any reclassification of the outstanding Common
      Shares, any change of the Common Shares into other shares or any other
      reorganization of the Corporation, or (C) any sale, conveyance, lease,
      exchange or transfer of the undertaking or assets of the Corporation as an
      entirety or substantially as an entirety to another corporation or entity,
      then, in each such event, each holder of any Special Warrant which is
      thereafter exchanged will be entitled to receive, and shall accept, in
      lieu of the number of Units to which such holder was theretofor entitled
      upon such exchange, the kind and number or amount of shares or other
      securities or property which such holder would have been entitled to
      receive as a result of such event if, on the effective date of such event
      in (A), (B) or (C), such holder had been the registered holder of the
      number of Units to which such holder was theretofor entitled upon such
      conversion or exchange. If necessary as a result of any such event,
      appropriate adjustments will be made in the application of the provisions
      set forth in this subsection 4.7(c) with respect to the rights and
      interests thereafter of the holders of Special Warrants to the end that
      the provisions set forth in this subsection 4.7(c) will thereafter
      correspondingly be made applicable, as nearly as may reasonably be, in the
      relation to any shares or other securities or property thereafter
      deliverable upon the exercise of any Special Warrant. Any such adjustments
      will be set forth in an indenture supplemental hereto with the successor
      to the Corporation or such corporation or other entity, as applicable,
      contemporaneously with such reclassification, consolidation, amalgamation,
      arrangement, merger, other form of business combination or other event and
      which supplemental indenture shall be approved by the directors, acting
      reasonably, and shall for all purposes be conclusively deemed to be an
      appropriate adjustment and such supplemental indenture shall provide for
      adjustments which shall be as nearly equivalent as may be practicable to
      the adjustments provided in this section 4.7 and which shall apply to
      successive reclassifications, reorganizations, amalgamations, mergers,
      other forms of business combination or other events. The Corporation, its
      successor or such corporation or other entity, as the case may be, shall
      also, prior to or contemporaneously with any such event, enter into a
      supplemental indenture substantially in the form of the Warrant Indenture
      with respect to the rights and interest thereafter of the holders of the
      Warrants such that the provisions set forth in the Warrant Indenture shall
      thereafter correspondingly be made applicable, as nearly as may reasonably
      be, with any shares or other securities or property to which the holders
      of the Warrants would be entitled on exercise of acquisition rights
      thereunder.

	 	 	 
	 	(d) 	
      Deferral of Adjustment: In any case in which
      section 4.7(b) shall require that an adjustment shall become effective
      immediately after a record date for or an effective date of an event
      referred to herein, the Corporation may defer, until the occurrence and
      consummation of such event, issuing to the holder of any Special Warrant
      exchanged after such record date or effective date and before the
      occurrence and consummation of such event the additional Units or other
      securities or property issuable upon such exchange by reason of the
      adjustment required by such event, provided, however, that the Corporation
      will deliver to such holder an appropriate

22. 

	 		
      instrument evidencing such holder’s right to receive such
      additional Units or other securities or property upon the occurrence and
      consummation of such event and the right to receive any dividend or other
      distribution in respect of such additional Units or other securities or
      property declared in favour of the holders of record of Common Shares or
      of such other securities or property on or after the Conversion Date or
      such later date as such holder would, but for the provisions of this
      subsection, have become the holder of record of such additional Units or
      of such other securities or property pursuant to subsection 4.3(a)
      hereof.

	 	 	 
	 	(e) 	
      Adjustments Cumulative: The adjustments provided
      for in this section 4.7 (in both the number of Common Shares and of
      securities to be received on an exercise of the Special Warrants) are
      cumulative, shall, in the case of any adjustment to the Share Rate, be
      computed to the nearest one one-hundredth of a Unit and will apply
      (without duplication) to successive subdivisions, consolidations,
      distributions, issues or other events resulting in any adjustment under
      the provisions of this section 4.7, provided that, notwithstanding any
      other provision of this section, no adjustment of the Share Rate will be
      required (i) unless such adjustment would require an increase or decrease
      of at least 1% in the Share Rate then in effect (provided, however, that
      any adjustment which by reason of this subsection 4.7(e) is not required
      to be made will be carried forward and taken into account in any
      subsequent adjustment), (ii) if, in respect of any event described in this
      section 4.7 (other than the events referred to in clauses (A) and (B) of
      clause 4.7(b)(i) hereof and in subsection 4.7(c) hereof), the holders of
      Special Warrants are entitled to participate in such event, or are
      entitled to participate within 45 days in a comparable event, on the same
      terms, with the necessary changes, as if the Special Warrants had been
      exercised prior to or on the effective date of or record date for such
      event, (iii) in respect of any Common Shares issuable or issued pursuant
      to any stock option or any stock option or stock purchase plan in force
      from time to time for directors, officers or employees of the Corporation
      or of Subsidiaries of the Corporation, or (iv) in respect of any Units
      issuable or issued pursuant to the conversion of Special Warrants. After
      any adjustment pursuant to this section 4.7, the term "Units” where
      used in this Indenture shall be interpreted to mean securities of any
      class or classes which, as a result of such adjustment and all prior
      adjustments pursuant to this Section, the Special Warrantholder is
      entitled to receive upon the exercise of its Special Warrant, and the
      number of Units indicated by any exercise made pursuant to a Special
      Warrant shall be interpreted to mean the number of Units or other property
      or securities a Special Warrantholder is entitled to receive, as a result
      of such adjustment and all prior adjustments pursuant to this Section,
      upon the full exercise of a Special Warrant;

	 	 	 
	 	(f) 	
      Resolution of Questions: If any question arises
      with respect to the adjustments provided in this section 4.7, such
      question shall be conclusively determined by the Corporation’s auditors
      or, if they are unable or unwilling to act, by such firm of chartered
      accountants as is appointed by the Corporation and is acceptable to the
      Trustee. Such accountants shall have access to all necessary records of
      the Corporation and such determination shall be binding upon the
      Corporation, the Trustee and the Special Warrantholders.

	 	 	 
	 	(g) 	
      Other Actions: If, and whenever at any time during
      the Adjustment Period, the Corporation shall take any action affecting or
      relating to the Common Shares, other than any action described in this
      section 4.7, which in the opinion of the directors would prejudicially
      affect the rights of holders of Special Warrants, the Share
  Rate

23. 

	 		
      will be adjusted by the directors in such manner, if any,
      and at such time, as the directors may reasonably determine to be
      equitable in the circumstances to such holders.

	 	 	 	 
	 	(h) 	
      Additional Actions: As a condition precedent to
      the taking of any action which would require an adjustment in any of the
      rights under the Special Warrants, the Corporation will take any action
      which may, in the opinion of counsel to the Corporation, be necessary in
      order that the Corporation, or any successor to the Corporation or
      successor to the undertaking or assets of the Corporation, will have
      unissued and reserved in its authorized capital and will be obligated to
      and may validly and legally issue all the Unit Shares, Unit Half-Warrants,
      Warrant Shares or other securities or property which the holders of
      Special Warrants would be entitled to receive thereafter on the exercise
      thereof in accordance with the provisions hereof.

	 	 	 	 
	 	(i) 	
      Notice to Trustee: The Corporation covenants with
      the Trustee that at least ten Business Days before the earlier of the
      effective date of or record date for any event referred to in this section
      4.7 that requires or might require an adjustment in any of the rights
      under the Special Warrants, the Corporation shall:

	 	 	 	 
	 		(i) 	
      file with the Trustee a Certificate of the Corporation
      specifying the particulars of such event and, to the extent determinable,
      any adjustment required and the computation of such adjustment;
  and

	 	 	 	 
	 		(ii) 	
      give notice to the Special Warrantholders of the
      particulars of such event and, to the extent determinable, any adjustment
      required, in accordance with subsection 10.2(a) hereof.

	 	 	 	 
	 		
      Such notice shall set forth such particulars as have been
      determined at the date such notice is given. If any adjustment for which
      such notice is given is not then determinable, promptly after such
      adjustment is determinable the Corporation will:

	 	 	 	 
	 		(iii) 	
      file with the Trustee a Certificate of the Corporation
      showing the computation of such adjustment; and

	 	 	 	 
	 		(iv) 	
      give notice to the Special Warrantholders of such
      adjustment in accordance with subsection 10.2(a) hereof.

	 	 	 	 
	 		
      Where a notice pursuant to this subsection 4.7(i) has
      been given, the Trustee shall be entitled to act and rely on any
      adjustment calculation of the Corporation or of the Corporation’s
      auditors.

	 	 	 	 
	 	(j) 	
      Duty of Trustee: The Trustee shall not:

	 	 	 	 
	 		(i) 	
      at any time be under any duty or responsibility to any
      Special Warrantholder to determine whether any facts exist which may
      require any adjustment in the Share Rate, or with respect to the nature or
      extent of any such adjustment when made, or with respect to the method
      employed in making such adjustment;

	 	 	 	 
	 		(ii) 	
      be accountable with respect to the validity or value (or
      the kind or amount) of any Unit Shares, Unit Half-Warrants, Warrant Shares
      or of any shares or other

24. 

			
       
	securities or property which may at any time be issued
      or delivered upon the exercise of any Special Warrant; or
	 	 	 	
       

			
      (iii) 
	
      be responsible for any failure of the Corporation to make
      any cash payment or to issue, transfer or deliver Unit Shares, Unit
      Half-Warrants, Warrant Shares or share or warrant certificates upon the
      surrender of any Special Warrants for the purpose of exercise, or to
      comply with any of the covenants contained in this section.

	 	 	 	 
			(k) 	
      Adjustments in Respect of Warrants: In the event
      that, at any time prior to the issue of Warrants in accordance with the
      Warrant Indenture in the circumstances required under this Indenture,
      there shall have occurred one or more events which, if any Warrant was
      outstanding, would require an adjustment or adjustments thereto or to the
      exercise price thereof in accordance with the provisions of the Warrant
      Indenture, then, notwithstanding anything to the contrary herein and
      notwithstanding that no Warrants may be outstanding at the applicable time
      under the Warrant Indenture, at the time of the issue of Warrants upon the
      conversion of Subscription Receipts, the same adjustment or adjustments in
      accordance with the adjustment provisions of the Warrant Indenture shall
      be made to the Warrants issuable upon the conversion of Subscription
      Receipts, mutatis mutandis, as if such Warrants were outstanding
      and governed by the Warrant Indenture upon the occurrence of such event or
      events.

	 	 	 	 
	4.8 	
      Payment of Liquidity Incentive

	 	 	 	 
		(a) 	
      Upon the occurrence of the Liquidity Incentive becoming
      payable pursuant to section 2.2(b), the Corporation will on the applicable
      Liquidity Incentive Payment Date, deliver to the Trustee a certified
      cheque or wire transfer in the amount of Liquidity Incentive so due and
      payable.

	 	 	 	 
		(b) 	
      Upon receipt from the Corporation funds representing the
      payment of all or a portion of the Liquidity Incentive which may become
      payable pursuant to section 2.2(a)(ii), the Trustee shall, within five
      Business Days deliver by cheque to each registered holder of Special
      Warrants at the registered address thereof, the Liquidity Incentive
      payable to the holder of the Special Warrants.

ARTICLE 5 
COVENANTS 

	5.1 	General Covenants 

The Corporation represents, warrants and covenants with the
Trustee that so long as any Special Warrants remain outstanding: 

	 	(a) 	
      the Corporation is duly authorized to create and issue
      the Special Warrants and, when issued and countersigned as herein
      provided, they will be valid and enforceable against the Corporation in
      accordance with the terms herein;

	 	 	 
	 	(b) 	
      Maintenance: The Corporation will use its
      commercially reasonable efforts to at all times maintain its corporate
      existence and keep or cause to be kept proper books
of

25. 

	 		
      account in accordance with generally accepted accounting
      principles in the United States or Canada.

	 	 	 	 
	 	(c) 	
      Reservation of Common Shares: The Corporation will
      reserve and conditionally allot for the purpose and keep available
      sufficient unissued Common Shares to enable it to satisfy its obligations
      on the conversion of the Special Warrants and the exercise of the Unit
      Half-Warrants.

	 	 	 	 
	 	(d) 	
      Issue of Units: The Corporation will cause the
      Unit Shares, Unit Half-Warrants and Warrant Shares from time to time
      issued pursuant to the conversion of the Special Warrants, and the
      certificates representing such Unit Shares, Unit Half-Warrants and Warrant
      Shares, to be issued and delivered in accordance with the provisions of
      this Indenture and the terms hereof and all Unit Shares that are issued on
      the conversion of the Special Warrants and Warrant Shares that are issued
      upon the exercise of the Unit Half-Warrants will be fully paid and
      non-assessable shares.

	 	 	 	 
	 	(e) 	
      Open Registers: The Corporation will cause the
      Trustee to keep open the registers of holders and registers of transfers
      referred to in section 3.1 hereof as required by such section and will not
      take any action or omit to take any action which would have the effect of
      preventing the Special Warrantholders from converting any of the Special
      Warrants or receiving any of the Units issued upon such
  conversion.

	 	 	 	 
	 	(f) 	
      Filings: The Corporation will make all requisite
      filings, including filings with appropriate securities commissions and
      stock exchanges, in connection with the conversion of the Special Warrants
      and the issue of the Units in connection therewith.

	 	 	 	 
	 	(g) 	
      Reporting: The Corporation shall file within the
      time required by the United States Securities and Exchange Act of
      1934, as amended, and the rules and regulations thereunder:

	 	 	 	 
	 		(i) 	
      annual reports on Form 10-K or Form 10-KSB, as
      applicable;

	 	 	 	 
	 		(ii) 	
      quarterly reports on Form 10-Q or Form 10-QSB, as
      applicable;

	 	 	 	 
	 		(iii) 	
      current reports on Form 8-K; and

	 	 	 	 
	 		(iv) 	
      such other reports and documents as may be required
      thereunder.

	 	 	 	 
	 	(h) 	
      Notice of Receipt: Upon the issuance of a receipt
      therefor, the Corporation will send or cause to be sent to each Special
      Warrantholder a commercial copy of the Final Prospectus and written notice
      specifying the date that the Special Warrants expire and such notice shall
      be sent within three Business Days after the date on which the receipt is
      issued by the last of the Securities Commissions.

	 	 	 	 
	 	(i) 	
      Notice of Penalty Deadline: If the Qualification
      Date has not occurred on or prior to the Penalty Deadline, the Corporation
      shall send or cause to be sent to the Trustee and to each registered
      holder of Special Warrants a written notice advising that such holder has
      the right to receive, upon the subsequent conversion thereof, one Unit and
      the Liquidity Incentive pursuant to each Special Warrant and such notice
      shall be sent within three Business Days after the Penalty
  Deadline.

26. 

	 	(j) 	
      General Performance: Generally, the Corporation,
      using reasonable commercial efforts, will well and truly perform and carry
      out all acts and things to be done by it as provided in this Indenture or
      in order to consummate the transactions contemplated hereby and it will
      do, execute, acknowledge and deliver or cause to be done, executed,
      acknowledged and delivered, all other acts, deeds and assurances in law as
      the Trustee may reasonably require for the better accomplishing and
      effecting of the intentions and provisions of this Indenture.

	 	 	 
	 	(k) 	
      Reporting Issuer Status: It will use its
      commercially reasonable efforts to maintain its status as a reporting
      issuer or equivalent not in default, and not be in default in any material
      respect of the applicable requirements of, the applicable securities laws
      of the applicable jurisdiction of Canada, provided that the foregoing
      shall apply from the date that the Corporation becomes a reporting issuer
      in a jurisdiction of Canada.

	 	 	 
	 	(l) 	
      Filing Final Prospectus: The Corporation shall use
      its commercially reasonable best efforts to file and cause the British
      Columbia Securities Commission, as the principal regulator under National
      Policy 43-201 and the MRRS, to issue a decision document evidencing that
      each of the Securities Commissions has issued a receipt for the Final
      Prospectus as soon as practicable and, in any event, prior to the Penalty
      Deadline.

	 	 	 
	 	(m) 	
      It will provide to Special Warrantholders copies of all
      documentation required to be provided by applicable law to registered
      holders of Common Shares, as if such Special Warrantholders were
      registered shareholders of the Corporation.

	 	 	 
	 	(n) 	
      It will give written notice to the Trustee and each
      Special Warrantholder specifying the particulars of each payment or
      distribution made in accordance with section 4.7 within three Business
      Days of such payment or distribution.

Any notices or deliveries required to be provided to holders of
Special Warrants hereunder shall be sent by prepaid mail or delivery to each
holder of Special Warrants at the address of such holder appearing on the
register of Special Warrants maintained hereunder. 

	5.2 	Remuneration and Expenses of Trustee
  

The Corporation will pay to the Trustee from time to time
reasonable remuneration for the services of the Trustee hereunder and will, on
the request of the Trustee, pay to or reimburse the Trustee for all reasonable
expenses, disbursements and advances made or incurred by the Trustee in the
administration or execution of the duties and obligations hereof (including
reasonable compensation and disbursements of its counsel and other advisers and
assistants not regularly in the employment thereof), both before any default
hereunder and thereafter until all duties of the Trustee hereunder have been
finally and fully performed, except any such expense, disbursement or advance
that arises out of or results from gross negligence, wilful misconduct or bad
faith of the Trustee. 

	5.3 	Securities Qualification Requirements
  

	 	(a) 	
      If, in the opinion of counsel, any instrument is required
      to be filed with, or any permission is required to be obtained from any
      governmental authority in Canada or any other step is required under any
      federal or provincial law of Canada before any Units which a Special
      Warrantholder is entitled to acquire pursuant to the conversion of any
      Special Warrant may properly and legally be issued upon due
    conversion

27. 

	 		
      thereof, the Corporation covenants that, using its
      commercially reasonable best efforts, it will promptly take such required
      action.

	 	 	 
	 	(b) 	
      Notice of Qualification Date: The Corporation
      will, no later than one Business Day after the Qualification Date, give
      notice of the Qualification Date, together with a copy of the MRRS receipt
      for the Final Prospectus and confirmation of any adjustments pursuant to
      section 4.7, to the Trustee and the Agent and the Corporation will give,
      or cause the Trustee to give, notice of the Qualification Date to the
      holders of Special Warrants no later than three Business Days after
      receipt by the Trustee of such notice from the
  Corporation.

	5.4 	Notice of Issue 

The Corporation will give written notice of and make all
requisite filings respecting the issue of securities pursuant to the exercise of
any Special Warrants, in such detail as may be required, to each securities
commission, stock exchange, or similar regulatory authority in each jurisdiction
in Canada and the United States in which there is legislation or regulations
requiring the giving of any such notice in order that such issue of securities
and the subsequent disposition of the securities so issued will not be subject
to the prospectus requirements, if any, of such legislation or regulations. 

	5.5 	Performance of Covenants by Trustee
  

If the Corporation fails to perform any of the obligations
thereof under this Indenture, the Trustee may notify the Special Warrantholders
of such failure or may itself perform any of such obligations capable of being
performed by the Trustee, but will not be bound to do so or to notify the
Special Warrantholders that it is so doing. All amounts expended or advanced by
the Trustee in so doing will be repayable as provided in section 5.2 hereof. No
such performance, expenditure or advance by the Trustee will relieve the
Corporation of any default or of its continuing obligations hereunder. 

	5.6 	Accounting 

The Trustee shall maintain accurate books, records and accounts
of the transactions effected or controlled by the Trustee hereunder and the
receipt and disbursement of the Liquidity Incentive and shall provide to the
Corporation and the Agent records and statements thereof periodically upon
request. 

	5.7 	Payments by the Trustee

In the event that any funds to be disbursed by the Trustee in
accordance herewith are received by the Trustee in the form of an uncertified
cheque, the Trustee shall be entitled to delay the time for disbursement of such
funds hereunder until such uncertified cheque has cleared in the ordinary course
the financial institution upon which the same are drawn. The Trustee will
disburse monies according to this Indenture only to the extent that monies have
been deposited with it. 

ARTICLE 6 
ENFORCEMENT 

	6.1 	Suits by Special Warrantholder
  

All or any of the rights conferred on the holder of any Special
Warrant by the terms of the Special Warrant Certificate representing such
Special Warrant or of this Indenture may be enforced by such holder by
appropriate legal proceedings but without prejudice to the right which is hereby
conferred on 

28. 

the Trustee to proceed in the name thereof or on behalf of the
holders of Special Warrants to enforce each and every provision herein contained
for the benefit of the Special Warrantholders. 

	6.2 	Limitation of Liability

The obligations hereunder are not personally binding on, nor
will resort hereunder be had to the private property of, any past, present or
future director, shareholder, officer, employee or agent of the Corporation, but
only the property of the Corporation or any successor entity shall be bound in
respect hereof. 

ARTICLE 7 
MEETINGS OF SPECIAL WARRANTHOLDERS

	7.1 	
      Right to Convene Meetings

	 	 	 
		(a) 	
      Convening of Meeting: The Trustee may at any time
      and from time to time convene a meeting of Special Warrantholders, and
      shall do so on receipt of a Written Request of the Corporation or a
      Special Warrantholders’ Request and on being funded and indemnified to its
      reasonable satisfaction by the Corporation or by one or more of the
      Special Warrantholders signing such Special Warrantholders’ Request
      against the costs which it may incur in connection with calling and
      holding such meeting.

	 	 	 
		(b) 	
      Failure to Convene: If the Trustee fails, within
      ten days after receipt of such written request of the Corporation or
      Special Warrantholders’ Request, funding and indemnification, to give
      notice convening a meeting, the Corporation or any of such Special
      Warrantholders, as the case may be, may convene such meeting.

	 	 	 
		(c) 	
      Place of Meeting: Every such meeting will be held
      in Vancouver, British Columbia, or such other place as is approved or
      determined by the Trustee and the Corporation.

	 	 	 
	7.2 	
      Notice

	 	 	 
		(a) 	
      Notice: At least 21 days’ notice of any meeting
      must be given to the Special Warrantholders in the manner provided for in
      section 10.2, to the Trustee (unless the meeting has been called by it)
      and to the Corporation (unless the meeting has been called by
  it).

	 	 	 
		(b) 	
      Contents: The notice of the meeting must state the
      time when and the place where the meeting is to be held and must state
      briefly the general nature of the business to be transacted thereat, and
      shall contain such information as is reasonably necessary to enable the
      Warrantholders to make a reasoned decision on the matter, but it will not
      be necessary for the notice to set out the terms of any resolution to be
      proposed or any of the provisions of this
article.

	7.3 	Chairman 

Some person (who need not be a Special Warrantholder)
designated in writing by the Trustee, or by the Corporation in the case of a
meeting called by the Corporation, will be chairman of the meeting or, if no
person is so designated or the person so designated is not present within 15
minutes after the time fixed for the holding of the meeting, the Special
Warrantholders present in person or by proxy may choose some person present to
be chairman. 

29. 

	7.4 	Quorum 

	 	(a) 	
      Quorum: Subject to the provisions of section 7.12
      hereof, at any meeting of Special Warrantholders a quorum will consist of
      Special Warrantholders, present in person or represented by proxy at the
      commencement of the meeting, who hold in the aggregate not less than 25%
      of the total number of Special Warrants then outstanding.

	 	 	 
	 	(b) 	
      No Quorum: If a quorum of Special Warrantholders
      is not present within 30 minutes after the time appointed for holding a
      meeting, the meeting, if convened by Special Warrantholders or on a
      Special Warrantholders’ Request, will be dissolved, but, subject to
      section 7.12 hereof, in any other case will stand adjourned to the same
      day in the next week (unless such day is not a Business Day, in which case
      it shall be adjourned to the next following Business Day) at the same time
      and place and no notice of the adjournment need be given.

	 	 	 
	 	(c) 	
      Adjourned Meeting: At the adjourned meeting the
      Special Warrantholders present in person or by proxy will form a quorum
      and may transact any business for which the meeting was originally
      convened notwithstanding the number of Special Warrants that they
    hold.

	7.5 	Power to Adjourn 

The chairman of a meeting at which a quorum of Special
Warrantholders is present may, with the consent of the meeting, adjourn the
meeting, and no notice of such adjournment need be given except as the meeting
prescribes. 

	7.6 	Show of Hands 

Every question submitted to a meeting, other than an
Extraordinary Resolution, will be decided in the first place by a majority of
the votes given on a show of hands and, unless a poll is duly demanded as herein
provided, a declaration by the chairman that a resolution has been carried or
carried unanimously or by a particular majority or lost or not carried by a
particular majority will be conclusive evidence of the fact. 

	7.7 	
      Poll

	 	 	 
		(a) 	
      Extraordinary Resolution: On every Extraordinary
      Resolution, and on every other question submitted to a meeting on which a
      poll is directed by the chairman or requested by one or more Special
      Warrantholders acting in person or by proxy and holding in the aggregate
      not less than 5% of the total number of Special Warrants then outstanding,
      a poll will be taken in such manner as the chairman directs.

	 	 	 
		(b) 	
      Other: Questions other than those required to be
      determined by Extraordinary Resolution will be decided by a majority of
      the votes cast on the poll.

	 	 	 
	7.8 	
      Voting

On a show of hands each person present and entitled to vote,
whether as a Special Warrantholder or as proxy for one or more absent Special
Warrantholder, or both, will have one vote, and on a poll each Special
Warrantholder present in person or represented by a proxy duly appointed by
instrument in 

30. 

writing will be entitled to one vote in respect of each Special
Warrant held by such holder. A proxy need not be a Special Warrantholder. 

	7.9 	
      Regulations

	 	 	 	 
		(a) 	
      Ability to Make: The Trustee, or the Corporation
      with the approval of the Trustee, may from time to time make or vary such
      regulations as it thinks fit:

	 	 	 	 
			(i) 	
      for the form of instrument appointing a proxy, the manner
      in which it must be executed and verification of the authority of a person
      who executes it on behalf of a Special Warrantholder;

	 	 	 	 
			(ii) 	
      governing the places at which and the times by which
      voting certificates or instruments appointing proxies must be
      deposited;

	 	 	 	 
			(iii) 	
      generally for the calling of meetings of Special
      Warrantholders and the conduct of business thereof;

	 	 	 	 
			(iv) 	
      the issue of voting certificates by any bank, trust
      company or other depositary satisfactory to the Trustee stating that the
      Special Warrant Certificates specified therein have been deposited with it
      by a named person and will remain on deposit until after the meeting,
      which voting certificate shall entitle the persons named therein to be
      present and vote at any such meeting and at any adjournment thereof or to
      appoint a proxy or proxies to represent them and vote for them at any such
      meeting and at any adjournment thereof in the same manner and with the
      same effect as though the persons so named in such voting certificates
      were the actual bearers of the Special Warrant Certificates specified
      therein; and

	 	 	 	 
			(v) 	
      for the deposit of voting certificates and instruments
      appointing proxies at some approved place or places other than the place
      at which the meeting is to be held and enabling particulars of such
      instruments appointing proxies to be sent by mail, telecopier or other
      means of prepaid, transmitted, recorded communication before the meeting
      to the Corporation or to the Trustee at the place where the meeting is to
      be held and for voting pursuant to instruments appointing proxies so
      deposited as though the instruments themselves were produced at the
      meeting.

	 	 	 	 
			
      Any regulations so made will be binding and effective and
      the votes given in accordance therewith will be valid and will be
      counted.

	 	 	 	 
		(b) 	
      Recognition: Except as such regulations provide,
      the only persons who will be recognized at a meeting as the holders of any
      Special Warrants, or as entitled to vote or, subject to section 7.10
      hereof, to be present at the meeting in respect thereof, will be the
      registered holders of such Special Warrants or their counsel or persons
      holding proxies on their behalf.

31. 

	7.10 	The Corporation and Trustee may be
      Represented 

The Corporation and the Trustee by their respective employees,
officers or directors, and the counsel of the Corporation and the Trustee, may
attend any meeting of Special Warrantholders, but shall not be entitled to vote
thereat, whether in respect of any Special Warrants held by them or otherwise.

	7.11 	Powers Exercisable by Extraordinary
      Resolution 

In addition to all other powers conferred on them by the other
provisions of this Indenture or by law, the Special Warrantholders at a meeting
shall, subject to section 7.12 have the power, exercisable from time to time by
Extraordinary Resolution: 

	 	(a) 	
      to assent to or sanction any amendment, modification,
      abrogation, alteration, compromise or arrangement of any right of the
      Special Warrantholders or, with the reasonable consent of the Trustee, of
      the Trustee in its capacity as trustee hereunder or on behalf of the
      Special Warrantholders against the Corporation, whether such right arises
      under this Indenture, the Special Warrant Certificates or otherwise, which
      shall be agreed to by the Corporation, and to authorize the Trustee to
      concur in and execute any indenture supplemental hereto in connection
      therewith;

	 	 	 
	 	(b) 	
      to amend, alter or repeal any Extraordinary Resolution
      previously passed;

	 	 	 
	 	(c) 	
      subject to arrangements as to financing and indemnity
      satisfactory to the Trustee, to direct or authorize the Trustee to enforce
      any obligation of the Corporation under this Indenture or to enforce any
      right of the Special Warrantholders in any manner specified in the
      Extraordinary Resolution;

	 	 	 
	 	(d) 	
      to direct or authorize the Trustee to refrain from
      enforcing any obligation or right referred to in subsection 7.11(c)
      hereof;

	 	 	 
	 	(e) 	
      to waive and direct the Trustee to waive any default by
      the Corporation in complying with any provision of this Indenture, either
      unconditionally or on any condition specified in the Extraordinary
      Resolution;

	 	 	 
	 	(f) 	
      to appoint a committee with power and authority to
      exercise, and to direct the Trustee to exercise, on behalf of the Special
      Warrantholders, such of the powers of the Special Warrantholders as are
      exercisable by Extraordinary Resolution;

	 	 	 
	 	(g) 	
      to restrain any Special Warrantholder from taking or
      instituting any suit, action or proceeding against the Corporation for the
      enforcement of any obligation of the Corporation under this Indenture or
      to enforce any rights of the Special Warrantholders;

	 	 	 
	 	(h) 	
      to direct any Special Warrantholder who, as such, has
      brought any suit, action or proceeding, to stay or discontinue or
      otherwise deal therewith on payment of the costs, charges and expenses
      reasonably and properly incurred by him in connection therewith;

	 	 	 
	 	(i) 	
      to assent to any change in or omission from the
      provisions contained in the Special Warrant Certificates and this
      Indenture or any ancillary or supplemental instrument which may be agreed
      to by the Corporation, and to authorize the
Special

32. 

			
      Warrantholders to concur in and execute any ancillary or
      supplemental indenture embodying the change or omission;

	 	 	 
		(j) 	
      to assent to any compromise or arrangement with any
      creditor or creditors or any class or classes of creditors, whether
      secured or otherwise, and with holders of any shares or other securities
      of the Corporation; and

	 	 	 
		(k) 	
      from time to time and at any time to remove the Trustee
      and appoint a successor, agent or trustee.

	 	 	 
	7.12 	
      Meaning of "Extraordinary Resolution"

	 	 	 
		(a) 	
      Meaning: The expression "Extraordinary
      Resolution" when used in this Indenture means, subject to the
      provisions of this section and of sections 7.15 and 7.16 hereof, a motion
      proposed at a meeting of Special Warrantholders duly convened for that
      purpose and held in accordance with the provisions of this Article Seven
      at which there are present in person or by proxy Special Warrantholders
      holding in the aggregate at least 25% of the total number of Special
      Warrants then outstanding and passed by the affirmative votes of Special
      Warrantholders who hold in the aggregate not less than 66 2/3% of the
      total number of Special Warrants represented at the meeting and voted on
      the motion.

	 	 	 
		(b) 	
      Quorum: If, at a meeting called for the purpose of
      considering an Extraordinary Resolution, the quorum required by subsection
      7.12(a) hereof is not present within 30 minutes after the time appointed
      for the meeting, the meeting, if convened by Special Warrantholders or on
      a Special Warrantholders’ Request, will be dissolved, but in any other
      case will stand adjourned to such day, being not less than ten Business
      Days or more than thirty Business Days later, and to such place and time,
      as is appointed by the chairman.

	 	 	 
		(c) 	
      Notice: Not less than seven Business Days’ notice
      must be given to the Special Warrantholders of the time and place of such
      adjourned meeting.

	 	 	 
		(d) 	
      Form of Notice: The notice must state that at the
      adjourned meeting the Special Warrantholders present in person or by proxy
      will form a quorum but it will not be necessary to set forth the purposes
      for which the meeting was originally called or any other
    particulars.

	 	 	 
		(e) 	
      Quorum at Adjourned Meeting: At the adjourned
      meeting the Special Warrantholders present in person or by proxy will form
      a quorum and may transact any business for which the meeting was
      originally convened, and a motion proposed at such adjourned meeting and
      passed by the requisite vote as provided in subsection 7.12(a) hereof will
      be an Extraordinary Resolution within the meaning of this Indenture
      notwithstanding that Special Warrantholders holding in the aggregate 25%
      of the total number of Special Warrants outstanding may not be present in
      person or by proxy.

	 	 	 
		(f) 	
      Poll: Votes on an Extraordinary Resolution must
      always be given on a poll and no demand for a poll on an Extraordinary
      Resolution will be necessary.

33. 

	7.13 	Powers Cumulative 

Any one or more of the powers, and any combination of the
powers, in this Indenture stated to be exercisable by the Special Warrantholders
by Extraordinary Resolution or otherwise, may be exercised from time to time,
and the exercise of any one or more of such powers or any combination of such
powers from time to time will not prevent the Special Warrantholders from
exercising such power or powers or combination of powers thereafter from time to
time. 

	7.14 	Minutes 

Minutes of all resolutions passed and proceedings taken at
every meeting of Special Warrantholders will be made and duly entered in books
from time to time provided for such purpose by the Trustee at the expense of the
Corporation, and any such minutes, if signed by the chairman of the meeting at
which such resolutions were passed or such proceedings were taken, will be
prima facie evidence of the matters therein stated, and, until the
contrary is proved, every such meeting in respect of the proceedings of which
minutes have been so made, entered and signed will be deemed to have been duly
convened and held, and all resolutions passed and proceedings taken thereat to
have been duly passed and taken. 

	7.15 	Instruments in Writing

Any action that may be taken and any power that may be
exercised by Special Warrantholders at a meeting held as provided in this
Article 7 may also be taken and exercised by Special Warrantholders who hold in
the aggregate not less than 50% of the total number of Special Warrants at the
time outstanding or in the case of an Extraordinary Resolution, Special
Warrantholders who hold in the aggregate not less than 66 2/3% of the total
number of Special Warrants at the time outstanding, by their signing, each in
person or by attorney duly appointed in writing, an instrument in writing in one
or more counterparts, and the expression "Extraordinary Resolution" when
used in this Indenture includes a resolution embodied in an instrument so
signed. 

	7.16 	Binding Effect of Resolutions
  

Every resolution and every Extraordinary Resolution passed in
accordance with the provisions of this Article 7 at a meeting of Special
Warrantholders will be binding on all Special Warrantholders, whether present at
or absent from the meeting and whether voting for or against the resolution or
abstaining, and every instrument in writing signed by Special Warrantholders in
accordance with section 7.15 hereof will be binding on all Special
Warrantholders, whether signatories thereto or not, and every Special
Warrantholder and the Trustee (subject to the provisions for its indemnity
herein contained) will be bound to give effect accordingly to every such
resolution and instrument in writing. 

	7.17 	Holdings by the Corporation and Subsidiaries
      Disregarded 

In determining whether Special Warrantholders holding the
required total number of Special Warrants are present in person or by proxy for
the purpose of constituting a quorum, or have voted or consented to a
resolution, Extraordinary Resolution, consent, waiver, Special Warrantholders’
Request or other action under this Indenture, a Special Warrant held by the
Corporation or by a Subsidiary of the Corporation will be deemed to be not
outstanding. The Corporation shall provide the Trustee with a certificate of the
Corporation providing details of any Special Warrants held by the Corporation or
by a Subsidiary of the Corporation upon the written request of the Trustee. 

34. 

ARTICLE 8 
SUPPLEMENTAL INDENTURES AND SUCCESSOR
CORPORATIONS 

	8.1 	Provision for Supplemental Indentures for
      Certain Purposes 

From time to time the Corporation (when authorized by the
directors) and the Trustee may, subject to the provisions hereof, and will when
so directed hereby, execute and deliver by their proper officers indentures or
instruments supplemental hereto, which thereafter will form part hereof, for any
or all of the following purposes: 

	 	(a) 	
      increasing the number of Special Warrants authorized for
      issue hereunder and the corresponding number of Units to which Special
      Warrantholders are entitled;

	 	 	 
	 	(b) 	
      setting forth any adjustments resulting from the
      application of the provisions of section 4.7 hereof;

	 	 	 
	 	(c) 	
      adding hereto such additional covenants and enforcement
      provisions as in the opinion of counsel are necessary or advisable, and
      are not in the opinion of the Trustee relying on the advice of counsel
      prejudicial to the interests of the Special Warrantholders or any of
      them;

	 	 	 
	 	(d) 	
      giving effect to any Extraordinary Resolution
    passed;

	 	 	 
	 	(e) 	
      making such provisions not inconsistent with this
      Indenture as are necessary or desirable with respect to matters or
      questions arising hereunder or for the purpose of obtaining a listing or
      quotation of the Common Shares on a stock exchange or over- the-counter
      market, and are not in the opinion of counsel prejudicial to the interests
      of the Special Warrantholders;

	 	 	 
	 	(f) 	
      adding to, deleting or altering the provisions hereof in
      respect of the transfer of Special Warrants or the conversion of Special
      Warrant Certificates, and making any modification in the form of the
      Special Warrant Certificates that does not affect the substance
      thereof;

	 	 	 
	 	(g) 	
      modifying any provision of this Indenture (including,
      without limitation, making any modification which increases the number or
      amount of Units issuable pursuant to the Special Warrants) or relieving
      the Corporation from any obligation, condition or restriction herein
      contained, except that no such modification or relief will be or become
      operative or effective if in the opinion of counsel it would impair any
      right of the Special Warrantholders or of the Trustee, and the Trustee may
      in its uncontrolled discretion decline to enter into any such supplemental
      indenture which in its opinion will not afford adequate protection to the
      Trustee when it becomes operative; and

	 	 	 
	 	(h) 	
      for any other purpose not inconsistent with the terms of
      this Indenture, including the correction or rectification of any
      ambiguity, defective or inconsistent provision, error or omission herein,
      if in the opinion of counsel, the rights of the Trustee and of the Special
      Warrantholders are not prejudiced thereby.

35. 

	8.2 	Successor Corporations

In the case of the consolidation, amalgamation, arrangement,
merger, other form of business combination or transfer of the undertaking or
assets of the Corporation as an entirety, or substantially as an entirety, to
another corporation or other entity, the successor corporation or other entity
resulting from such consolidation, amalgamation, arrangement, merger, other form
of business combination or transfer (if not the Corporation) will be bound by
the provisions hereof and for the due and punctual performance and observance of
each and every covenant and obligation contained in this Indenture to be
performed by the Corporation and will execute and deliver to the Trustee a
supplemental indenture and such other instruments as are satisfactory in form to
the Trustee and in the opinion of counsel are necessary or advisable to evidence
the express assumption by the successor corporation of such obligations. 

ARTICLE 9 
CONCERNING TRUSTEE 

	9.1 	Trust Indenture Legislation
  

If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with a mandatory requirement of Applicable
Legislation, the mandatory requirement will prevail. The Corporation and the
Trustee each will at all times in relation to this Indenture and any action to
be taken hereunder observe and comply with and be entitled to the benefits of
Applicable Legislation. 

	9.2 	
      Rights and Duties of Trustee

	 	 	 
		(a) 	
      Duty of Trustee: In the exercise of the rights and
      duties prescribed or conferred by the terms of this Indenture, the Trustee
      will act honestly and in good faith and will exercise that degree of care,
      diligence and skill that a reasonably prudent Special Warrant agent would
      exercise in comparable circumstances. The Trustee shall not be bound to
      give any notice or do or take any act, action or proceeding by virtue of
      the powers conferred on it hereby unless and until it shall have been
      required so to do under the terms hereof; nor shall the Trustee be
      required to take notice of any default hereunder, unless and until
      notified in writing of such default, which notice shall distinctly specify
      the default desired to be brought to the attention of the Trustee and, in
      the absence of any such notice, the Trustee may for all purposes of this
      Indenture conclusively assume that no default has been made in the
      observance or performance of any of the representations, warranties,
      covenants, agreements or conditions contained therein. Any such notice
      shall in no way limit any discretion herein given to the Trustee to
      determine whether or not the Trustee shall take action with respect to any
      default.

	 	 	 
		(b) 	
      No Relief From Liability: No provision of this
      Indenture will be construed to relieve the Trustee from liability for its
      own grossly negligent act, grossly negligent failure to act, wilful
      misconduct or bad faith.

	 	 	 
		(c) 	
      Actions: The obligation of the Trustee to commence
      or continue any act, action or proceeding in connection herewith,
      including without limitation, for the purpose of enforcing any right of
      the Trustee or the Special Warrantholders hereunder is on the condition
      that the Trustee shall have received a Special Warrantholders’ Request
      specifying the act, action or proceeding which the Trustee is requested to
      take and, when required by notice to the Special Warrantholders by the
      Trustee, the Trustee is furnished by one or more Special Warrantholders
      with sufficient funds to commence

36. 

			or continue such act, action or proceeding and an
      indemnity reasonably satisfactory to the Trustee to protect and hold it
      harmless against the costs, charges, expenses and liabilities to be
      incurred thereby and any loss and damage it may suffer by reason
    thereof.
	 	 	 
		(d) 	
      Funding: No provision of this Indenture will
      require the Trustee to expend or risk its own funds or otherwise incur
      financial liability in the performance of any of its duties or in the
      exercise of any of its rights or powers unless it is so indemnified and
      funded.

	 	 	 
		(e) 	
      Deposit of Special Warrants: The Trustee may,
      before commencing or at any time during the continuance of any such act,
      action or proceeding, require the Special Warrantholder at whose instance
      it is acting to deposit with the Trustee the Special Warrant Certificates
      held by them, for which certificates the Trustee will issue
    receipts.

	 	 	 
		(f) 	
      Restriction: Every provision of this Indenture
      that relieves the Trustee of liability or entitles it to rely on any
      evidence submitted to it is subject to the provisions of Applicable
      Legislation, of this section and of section 9.3 hereof.

	 	 	 
	9.3 	
      Evidence, Experts and Advisers

	 	 	 
		(a) 	
      Evidence: In addition to the reports,
      certificates, opinions and other evidence required by this Indenture, the
      Corporation will furnish to the Trustee such additional evidence of
      compliance with any provision hereof, and in such form, as is prescribed
      by Applicable Legislation or as the Trustee reasonably requires by written
      notice to the Corporation.

	 	 	 
		(b) 	
      Reliance by Trustee: In the exercise of any right
      or duty hereunder the Trustee, if it is acting in good faith, may act and
      rely, as to the truth of any statement or the accuracy of any opinion
      expressed therein, on any statutory declaration, opinion, report,
      certificate or other evidence furnished to the Trustee pursuant to the
      provisions hereof or of Applicable Legislation or pursuant to a request of
      the Trustee, if such evidence complies with Applicable Legislation and the
      Trustee examines such evidence and determines that it complies with the
      applicable requirements of this Indenture.

	 	 	 
		(c) 	
      Statutory Declaration: Whenever Applicable
      Legislation requires that evidence referred to in subsection 9.3(a) hereof
      be in the form of a statutory declaration, the Trustee may accept such
      statutory declaration in lieu of a Certificate of the Corporation required
      by any provision hereof. Any such statutory declaration may be made by any
      one or more of the Chairman, President, Chief Financial Officer or
      Secretary of the Corporation or by any other officer(s) or director(s) of
      the Corporation to whom such authority is delegated by the directors from
      time to time. In addition, the Trustee may act and rely and shall be
      protected in acting and relying upon any resolution, certificate,
      direction, instruction, statement, instrument, opinion, report, notice,
      request, consent, order, letter, telegram, cablegram or other paper or
      document believed by it to be genuine and to have been signed, sent or
      presented by or on behalf of the proper party or parties.

	 	 	 
		(d) 	
      Experts: The Trustee may employ or retain such
      counsel, accountants, appraisers, or other experts or advisers as it
      reasonably requires for the purpose of determining
and

37. 

discharging its rights and duties hereunder and may pay the
reasonable remuneration and disbursements for all services so performed by any
of them, without taxation of costs of any counsel, and will not be responsible
for any misconduct or negligence on the part of any of them who has been
selected with due care by the Trustee. The Trustee may act and rely and shall be
protected in acting or not acting and relying in good faith on the opinion or
advice of or information obtained from any counsel, accountant or other expert
or advisor, whether retained or employed by the Corporation or by the Trustee,
in relation to any matter arising in the administration of the duties and
obligations hereof. 

	9.4 	Documents, Money, Etc. held by Trustee
    

Any security, document of title or other instrument that may at
any time be held by the Trustee subject to the provisions of this indenture
hereof may be placed in the deposit vaults of the Trustee or of any Canadian
chartered bank or deposited for safekeeping with any such bank. 

	9.5 	Action by Trustee to Protect Interests
    

The Trustee will have power to institute and to maintain such
actions and proceedings as it considers necessary or expedient to protect or
enforce its interests and the interests of the Special Warrantholders. 

	9.6 	Trustee not Required to Give Security
  

The Trustee will not be required to give any bond or security
in respect of the execution of the duties and obligations and powers of this
Indenture. 

	9.7 	
      Protection of Trustee

	 	 	 	 
		(a) 	
      Protection: By way of supplement to the provisions
      of any law for the time being relating to agents, it is expressly declared
      and agreed that:

	 	 	 	 
			(i) 	
      the Trustee will not be liable for or by reason of, or
      required to substantiate, any statement of fact, representation or recital
      in this Indenture or in the Special Warrant Certificates (except the
      representation contained in section 9.9 hereof or in the certificate of
      the Trustee on the Special Warrant Certificates or other representation of
      the Trustee made herein or therein), but all such statements or recitals
      are and will be deemed to be made by the Corporation;

	 	 	 	 
			(ii) 	
      nothing herein contained will impose on the Trustee any
      obligation to see to, or to require evidence of, the registration or
      filing (or renewal thereof) of this Indenture or any instrument ancillary
      or supplemental hereto;

	 	 	 	 
			(iii) 	
      the Trustee will not be bound to give notice to any
      person of the execution hereof;

	 	 	 	 
			(iv) 	
      the Trustee will not incur any liability or
      responsibility whatever or be in any way responsible for the consequence
      of any breach by the Corporation of any obligation or warranty herein
      contained or of any act of any director, officer, employee or agent of the
      Corporation;

38. 

	 	(v) 	
      the Trustee, in its personal or any other capacity, may
      buy, lend upon and deal in securities of the Corporation and in the
      Special Warrants and generally may contract and enter into financial
      transactions with the Corporation or any related corporation without being
      liable to account for any profit made thereby;

	 	 	 
	 	(vi) 	
      the Trustee shall incur no liability with respect to the
      delivery or non-delivery of any certificate or certificates whether
      delivered by hand, mail or any other means provided that they are sent in
      accordance with the provisions hereof;

	 	 	 
	 	(vii) 	
      if the Trustee delivers any cheque as required hereunder,
      the Trustee shall have no further obligation or liability for the amount
      represented thereby, unless any such cheque is not honoured on
      presentation, provided that in the event of the non-receipt of such cheque
      by the payee, or the loss or destruction thereof, the Trustee, upon being
      furnished with reasonable evidence of such non-receipt, loss or
      destruction and, if required by the Trustee, an indemnity reasonably
      satisfactory to it, shall issue to such payee a replacement cheque for the
      amount of such cheque; and

	 	 	 
	 	(viii) 	
      the Trustee will disburse funds in accordance with the
      provisions hereof only to the extent that funds have been deposited with
      it.

	 	(b) 	
      Indemnity: In addition to and without limiting any
      protection of the Trustee hereunder or otherwise by law, the Corporation
      agrees to indemnify the Trustee, its agents, employees, directors and
      officers (each an "Indemnified Person"), and save each Indemnified
      Person harmless from all liabilities, suits, damages, costs, expenses and
      actions which may be brought against or suffered by it arising out of or
      connected with the performance by the Trustee of its duties hereunder,
      except to the extent that such liabilities, suits, damages, costs and
      actions are attributable to the gross negligence, wilful misconduct or bad
      faith of the Trustee or an Indemnified Person. Notwithstanding any other
      provision hereof, this indemnity shall survive any removal or resignation
      of the Trustee, discharge of this Indenture and termination of any duties
      and obligations hereunder.

	9.8 	
      Replacement of Trustee

	 	 	 
		(a) 	
      Resignation: The Trustee may resign and be
      discharged from all further duties and liabilities hereunder, except as
      provided in this section, by giving to the Corporation and the Special
      Warrantholders not less than 60 Business Days notice in writing or, if a
      new Trustee has been appointed, such shorter notice as the Corporation
      accepts as sufficient, provided that such resignation and discharge shall
      be subject to the appointment of a successor thereto in accordance with
      the provisions hereof.

	 	 	 
		(b) 	
      Removal: The Special Warrantholders by
      Extraordinary Resolution may at any time remove the Trustee and appoint a
      new Trustee.

	 	 	 
		(c) 	
      Appointment of New Trustee: If the Trustee so
      resigns or is so removed or is dissolved, becomes bankrupt, goes into
      liquidation or otherwise becomes incapable of acting hereunder, the
      Corporation will forthwith appoint a new Trustee, unless a new Trustee has
      already been appointed by the Special
Warrantholders.

39. 

	 	(d) 	
      Failure to Appoint: Failing such appointment by
      the Corporation, the retiring Trustee or any Special Warrantholder may
      apply at the expense of the Corporation to the Supreme Court of British
      Columbia, on such notice as the Court directs, for the appointment of a
      new Trustee.

	 	 	 
	 	(e) 	
      New Trustee: Any new Trustee appointed under this
      section must be a corporation authorized to carry on the business of a
      transfer agent or trust company in the Province of British Columbia and,
      if required by the Applicable Legislation of any other province, in such
      other province. On any such appointment, the new Trustee will be vested
      with the same powers, rights, duties and responsibilities as if it had
      been originally named herein as Trustee without any further assurance,
      conveyance, act or deed, but there will be immediately executed, at the
      expense of the Corporation, all such conveyances or other instruments as,
      in the opinion of counsel, are necessary or advisable for the purpose of
      assuring the transfer of such powers, rights, duties and responsibilities
      to the new Trustee. Any new Trustee so appointed by the Corporation or by
      the Court will be subject to removal as aforesaid by the Special
      Warrantholders and by the Corporation.

	 	 	 
	 	(f) 	
      Notice of New Trustee: On the appointment of a new
      Trustee, the Corporation will promptly give notice thereof to the Special
      Warrantholders in accordance with subsection 10.2(a) hereof.

	 	 	 
	 	(g) 	
      Successor Trustee: A corporation into or with
      which the Trustee is merged or consolidated or amalgamated, or a
      corporation succeeding to the business of the Trustee, will be the
      successor to the Trustee hereunder without any further act on its part or
      on the part of any party hereto if such corporation would be eligible for
      appointment as a new Trustee under subsection 9.8(e) hereof.

	 	 	 
	 	(h) 	
      Certificates: A Special Warrant Certificate
      certified but not delivered by a predecessor Trustee may be delivered by
      the new or successor Trustee in the name of the predecessor Trustee or
      successor Trustee.

	9.9 	Conflict of Interest

The Trustee represents to the Corporation that, at the time of
the execution and delivery hereof, no material conflict of interest exists
between its role as Trustee hereunder and its role in any other capacity and if
a material conflict of interest arises hereafter it will, within 30 days after
ascertaining that it has such material conflict of interest, either eliminate
the conflict of interest or resign its duties and obligations hereunder. 

	9.10 	Acceptance of Duties and Obligations
  

The Trustee hereby accepts the duties and obligations in this
Indenture declared and provided for and agrees to perform them on the terms and
conditions herein set forth. The Trustee accepts the duties and responsibilities
under this Indenture solely as custodian, bailee and agent. No trust is intended
to be or will be created hereby and the Trustee shall owe no duties hereunder as
a trustee. 

	9.11 	Third Party Interests

Each party to this Indenture hereby represents to the Trustee
that any account to be opened by, or interest to held by the Trustee in
connection with this Indenture, for or to the credit of such party, either (i)
is not 

40. 

intended to be used by or on behalf of any third party; or (ii)
is intended to be used by or on behalf of a third party, in which case such
party hereto agrees to complete and execute forthwith a declaration in the
Trustee's prescribed form as to the particulars of such third party. 

	9.12 	Not Bound to Act 

The Trustee shall retain the right not to act and shall not be
liable for refusing to act if, due to a lack of information or for any other
reason whatsoever, the Trustee, in its sole judgment, determines that such act
might cause it to be in non-compliance with any applicable anti-money laundering
or anti-terrorist legislation, regulation or guideline. Further, should the
Trustee, in its sole judgment, determine at any time that its acting under this
Indenture has resulted in its being in non-compliance with any applicable
anti-money laundering or anti-terrorist legislation, regulation or guideline,
then it shall have the right to resign on 10 days written notice to the Company,
provided (i) that the Trustee's written notice shall describe the circumstances
of such non-compliance; and (ii) that if such circumstances are rectified to the
Trustee's satisfaction within such 10-day period, then such resignation shall
not be effective. 

ARTICLE 10 
GENERAL 

	10.1 	
      Notice to the Corporation and Trustee

	 	 	 	 
		(a) 	
      Corporation: Unless herein otherwise expressly
      provided, a notice to be given hereunder to the Corporation or the Trustee
      will be validly given if delivered or if sent by registered letter,
      postage prepaid, or if sent by facsimile transmission (if receipt of such
      transmission is confirmed):

	 	 	 	 
			(i) 	
      If to the Corporation:

	 	 	 	 
				
      Nord Resources Corporation 

	 	 	 	Suite 203, 1 West Wetmore Road 
	 	 	 	Tucson, Arizona 
	 	 	 	United States of America 85705
	 	 	 	 
				
      Attention: John Perry, President and Chief Financial
      Officer 

	 	 	 	Facsimile: (520) 292-2068
	 	 	 	 
				
      with a copy to (with such delivery or sending not to be a
      delivery or sending to the Corporation for purposes of this
    Indenture):

	 	 	 	 
				
      Lang Michener LLP 

	 	 	 	1500-1055 West Georgia Street 
	 	 	 	Vancouver, British Columbia 
	 	 	 	Canada V6E 4N7
	 	 	 	 
				
      Attention: Stephen Wortley 

	 	 	 	Facsimile: (604) 685-7084
	 	 	 	 
			(ii) 	
      If to the Agent:

	 	 	 	 
				
      Blackmont Capital Inc.

	 	 	 	BCE Place, P.O. Box 779, Suite 2800

41. 

	 		181 Bay Street
	 	 	Toronto, Ontario 
	 		
      Canada M5J 2T3

	 	 	 
	 		
      Attention: Chad Williams 

	 	 	Facsimile: (416) 864-9151
	 	 	 
	 		
      with a copy to (with such delivery or sending not to be a
      delivery or sending to the Agent for the purpose of this
  Indenture):

	 	 	 
	 		
      Fraser Milner Casgrain LLP 

	 	 	3900-100 King Street West 
	 	 	Toronto, Ontario 
	 	 	Canada M5X 1B2
	 	 	 
	 		
      Attention: James Clare 

	 	 	Facsimile: (416) 863-4592
	 	 	 
	 		
      and to (with such delivery or sending not to be a
      delivery or sending to the Agent for the purpose of this
  Indenture):

	 	 	 
	 		
      Dorsey & Whitney LLP

	 	 	161 Bay Street
	 		Suite 4310 
	 	 	Toronto, Ontario 
	 		
      M5J 2S1

	 	 	 
	 		
      Attention: Gil Cornblum 

	 	 	Facsimile: (416) 367-7371
	 	 	 
	 	(iii) 	
      If to the Trustee:

	 	 	 
	 		
      Computershare Trust Company of Canada

	 	 	510 Burrard Street, 2nd Floor
	 		Vancouver, British Columbia 
	 	 	Canada V6C 3B9
	 		
	 	 	Attention: Manager, Corporate Trust 
	 		
      Facsimile: (604) 661-9549

and any such notice delivered or sent
in accordance with the foregoing will be deemed to have been received on the
date of delivery or facsimile transmission or, if mailed, on the second Business
Day following the day of the mailing of the notice. The original of any document
sent by facsimile transmission to the Trustee shall be subsequently mailed to
the Trustee. 

	 	(b) 	
      Change of Address: The Corporation or the Trustee,
      as the case may be, may from time to time notify the other in the manner
      provided in subsection 10.1(a) hereof of a change of address which, from
      the effective date of such notice and until changed by like notice, will
      be the address of the Corporation or the Trustee, as the case may be, for
      all purposes of this Indenture.

42. 

		(c) 	
      Postal Interruption: If, by reason of a strike,
      lockout or other work stoppage, actual or threatened, involving Canadian
      postal employees, a notice to be given to the Trustee or to the
      Corporation hereunder could reasonably be considered unlikely to reach or
      likely to be delayed in reaching its destination, the notice will be valid
      and effective only if it is delivered to an officer of the party to which
      it is addressed. Any notice delivered in accordance with the foregoing
      will be deemed to have been received on the date of delivery to such
      officer.

	 	 	 
		(d) 	
      Governing Law: This Special Warrant Indenture
      shall be governed by and construed in accordance with the laws of the
      Province of British Columbia and the laws of Canada applicable therein and
      the parties hereto irrevocably attorn to the jurisdiction of the courts of
      the Province of British Columbia.

	 	 	 
	10.2 	
      Notice to Special Warrantholders

	 	 	 
		(a) 	
      Notice: Unless herein otherwise expressly
      provided, a notice to be given hereunder to Special Warrantholders will be
      deemed to be validly given if the notice is sent by ordinary surface or
      air mail, postage prepaid, addressed to the Special Warrantholders or
      delivered (or so mailed to certain Special Warrantholders and so delivered
      to the other Special Warrantholders) at their respective addresses
      appearing on any of the registers of holders described in section 3.1
      hereof, provided, however, that if, by reason of a strike, lockout or
      other work stoppage, actual or threatened, involving Canadian postal
      employees, the notice could reasonably be considered unlikely to reach or
      likely to be delayed in reaching its destination, the notice will be valid
      and effective only if it is so delivered.

	 	 	 
		(b) 	
      Date of Notice: A notice so given by mail or so
      delivered will be deemed to have been given on the fifth Business Day
      after it has been mailed or on the day on which it has been delivered, as
      the case may be, and a notice so given by publication will be deemed to
      have been given on the day on which it has been published as required. In
      determining under any provision hereof the date when notice of a meeting
      or other event must be given, the date of giving notice will be included
      and the date of the meeting or other event will be excluded. Accidental
      error or omission in giving notice or accidental failure to mail notice to
      any Special Warrantholder will not invalidate any action or proceeding
      founded thereon.

	 	 	 
	10.3 	
      Satisfaction and Discharge of
  Indenture

If all certificates representing Unit Shares and Unit
Half-Warrants required to be issued in compliance with the provisions hereof
have been issued hereunder in accordance with such provisions, if all payments
required to be made in compliance with the provisions of this Indenture have
been made in accordance with such provisions and payment to the Trustee of the
fees and other remuneration payable to the Trustee have been made, this
Indenture will cease to be of further effect and, on demand of and at the cost
and expense of the Corporation and on delivery to the Trustee of a Certificate
of the Corporation stating that all conditions precedent to the satisfaction and
discharge of this Indenture have been complied with and on payment to the
Trustee of the fees and other remuneration payable to the Trustee, the Trustee
will execute proper instruments acknowledging the satisfaction of and
discharging this Indenture. 

43. 

	10.4 	Sole Benefit of Parties and Special
      Warrantholders 

Nothing in this Indenture or the Special Warrant Certificates,
expressed or implied, will give or be construed to give to any person other than
the parties hereto and the Special Warrantholders, as the case may be, any legal
or equitable right, remedy or claim under this Indenture or the Special Warrant
Certificates, or under any covenant or provision herein or therein contained,
all such covenants and provisions being for the sole benefit of the parties
hereto and the Special Warrantholders. 

	10.5 	Discretion of Directors

Any matter provided herein to be determined by the directors
will be determined by the directors in their sole discretion, acting reasonably,
and a determination so made will be conclusive. 

	10.6 	Counterparts and Formal Date
  

This Indenture may be executed in several counterparts, each of
which when so executed will be deemed to be an original and such counterparts
together will constitute one and the same instrument and notwithstanding the
date of their execution will be deemed to be dated as of this indenture. 

44. 

     IN WITNESS WHEREOF the parties
hereto have executed this Special Warrant Indenture as of the day and year first
above written. 

	 	NORD RESOURCES CORPORATION
  
	 	  	  	  
	 	By: 	/s/ John T. Perry
	 	  	Name: 	John T. Perry 
	 	  	Title: 	Chief Financial Officer 
	 	  	  	  
	 	BLACKMONT CAPITAL INC. 
	 	  	  	  
	 	By: 	/s/ Chad Williams
	 	  	Name: 	Chad Williams 
	 	  	Title: 	Director 
	 	  	  	  
	 	COMPUTERSHARE TRUST COMPANY OF
      CANADA 
	 	  	  	  
	 	By: 	/s/ Neil Carnell
	 	Title: 	Authorized Signatory 
	 	  	  	  
	 	By: 	/s/ Nicole Clement
	 	  	Title: 	Authorized Signatory 

SCHEDULE A TO THE SPECIAL WARRANT INDENTURE DATED AS OF

JUNE 5, 2007 BETWEEN NORD RESOURCES CORPORATION, 
BLACKMONT CAPITAL INC.
AND COMPUTERSHARE TRUST COMPANY OF CANADA 

SPECIAL WARRANT CERTIFICATE 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS
AND A DAY AFTER THE LATER OF (I) JUNE 5, 2007, AND (II) THE DATE THE ISSUER
BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA. 

[INSERT THE U.S. LEGEND PRESCRIBED BY SUBSECTION 2.3(d) OR
SUBSECTION 2.3(e) OF THE SPECIAL WARRANT INDENTURE, AS APPLICABLE.] 

	Certificate Number: __________	Number of Special Warrants:
  __________

SPECIAL WARRANTS 

convertible for Units of 

NORD RESOURCES CORPORATION 

     THIS IS TO CERTIFY THAT, for
value received, ___________________(the "holder") is the registered
holder of the number of Special Warrants ("Special Warrants") specified
above of Nord Resources Corporation (the "Corporation") and is thereby
entitled, without payment of any additional consideration, to be issued units
(each a “Unit”) immediately prior to the Time of Expiry (as defined in
the Special Warrant Indenture hereinafter referred to) on the basis of one Unit
for each Special Warrant, or, if the Qualification Date (as defined in the
Special Warrant Indenture) has not occurred prior to the Penalty Deadline (as
defined in the Special Warrant Indenture), the holder shall be entitled, upon
the conversion of the Special Warrants, to one Unit and the applicable Liquidity
Incentive (as defined in the Special Warrant Indenture) for each Special
Warrant, all subject to adjustment in accordance with the provisions of the
Special Warrant Indenture, and subject to the limitation referred to below. Each
Unit consists of one Common Share of the Corporation (a “Unit Share”) and
one-half share purchase warrant (a “Unit Half-Warrant”). Each two Unit
Half-Warrants will entitle the holder to purchase one Common Share (a
“Warrant Share”) of the Corporation at an exercise price of $1.10 for a
period of 60 months from the date of issuance of this Special Warrant.

     This Special Warrant Certificate
represents Special Warrants of the Corporation issued under the provisions of a
special warrant indenture (which indenture, together with all instruments
supplemental or ancillary thereto, is herein referred to as the "Special
Warrant Indenture") dated as of June 5, 2007 between the Corporation,
Blackmont Capital Inc. and Computershare Trust Company of Canada (the
"Trustee"). Reference is hereby made for particulars of the rights of the
holders of the Special Warrants, the Corporation and the Trustee in respect
thereof and of the terms and conditions upon which the Special Warrants are
issued and held, all to the same effect as if the provisions of the Special
Warrant Indenture were herein set forth in full, to all of which the holder, by
acceptance hereof, assents. In the event of a conflict between the provisions of
this Special Warrant Certificate and the Special Warrant Indenture, the terms of
the Special Warrant Indenture shall govern. The Corporation will furnish to the
holder, on request, a copy of the Special Warrant Indenture. 

     The Special Warrants represented
by this Special Warrant Certificate may be converted by the holder at any time
after the Effective Date (as defined in the Special Warrant Indenture) and prior
to the 

2. 

Time of Expiry; provided that if such Special Warrants have not
been converted as hereinafter provided prior to the Time of Expiry, such Special
Warrants will be deemed to be converted into Units by the Trustee for and on
behalf of the holder immediately prior to the Time of Expiry without the taking
of any action by the holder, including the surrender of this Special Warrant
Certificate, which will thereupon be cancelled by the Special Warrant Agent.

     The holder of this Special
Warrant and any transferee hereof are cautioned that in the event that the
Special Warrants are deemed to be converted, certificates representing the Unit
Shares and Unit Half-Warrants, will be mailed or delivered to the latest address
of record of the registered holder or to the direction of the registered holder,
and the Corporation and the Trustee are not bound to take notice of any
transfers or assignments unless the transferee is a duly registered holder of
the Special Warrant prior to such mailing or delivery. 

     On and after the date of any
conversion of the Special Warrants represented by this Special Warrant
Certificate, the holder will have no rights as a Special Warrantholder except to
receive certificates representing the Unit Shares and Unit Half-Warrants issued
upon the conversion thereof to such holder and as set forth in the Indenture.

     The Corporation will not be
obligated after the aggregation of the number of Units to be issued to a holder
of Special Warrants to issue any fraction of a Unit Share or Unit Half-Warrant
on the conversion of Special Warrants. If a holder of Special Warrant would
otherwise be entitled to a fractional Unit pursuant to the Special Warrants, the
number of Units to be issued shall be rounded down to the next whole number, and
the holder of such Special Warrants shall not be entitled to any cash
compensation in respect of such fraction. 

     The Special Warrants represented
by this Special Warrant Certificate, and the Units to be issued upon conversion
thereof have not been registered under the United States Securities Act of
1933, as amended, (the "U.S. Securities Act") and the Special Warrants have
been, and upon conversion thereof, the Units, will be issued pursuant to
exemptions from the registration requirements of the U.S. Securities Act.
Neither this Special Warrant nor any of the Unit Shares, Unit Half-Warrants or
Warrant Shares may be sold, transferred, pledged or hypothecated in the absence
of (a) an effective registration statement under the U.S. Securities Act
relating to such security or (b) an exemption from the registration requirements
of the U.S. Securities Act and all applicable state securities laws, after
providing a legal opinion satisfactory to the Corporation confirming that such
transfer is not subject to registration under the U.S. Securities Act and all
applicable state securities laws. Each Special Warrant Certificate, and the
certificates representing any Unit Shares, Unit Half-Warrants and Warrant Shares
shall contain a legend on the face thereof, in the appropriate form prescribed
under the Special Warrant Indenture, setting forth the restrictions on transfer
referred to in this Section. The holder acknowledges and agrees that the Special
Warrants represented by this Special Warrant Certificate constitutes, and any
Unit Shares, Unit Half-Warrants and Warrant Shares issued upon conversion
thereof, will constitute “restricted securities” under the U.S. Securities
Act.

     [Add the following to
certificates not representing securities issued for the account or benefit of a
person in the United States or a U.S. Person: Further, the holder acknowledges
and agrees that hedging transactions involving the securities may not be
conducted unless in compliance with the U.S. Securities Act. The holder of this
Special Warrant may not, during a one-year distribution compliance period, act
as a distributor, either directly or indirectly, or sell, transfer, hypothecate
or otherwise convey the Special Warrants, the Unit Shares, Unit Half-Warrants or
the Warrant Shares other than to or for the account or benefit of a non-U.S.
Person, and in the event the Special Warrants, the Unit Shares, Unit
Half-Warrants or the Warrant Shares are offered, sold or otherwise transferred
by the holder to or for the account or benefit of a non-U.S. Person, prior to
the expiration of a one-year distribution compliance period, unless 

3. 

pursuant to an effective registration statement under the U.S.
Securities Act, the purchaser or transferee must agree not to resell such
securities except in accordance with the provisions of Regulation S, pursuant to
registration under the U.S. Securities Act, or pursuant to an available
exemption from registration, and must further agree not to engage in hedging
transactions with regard to such securities unless in compliance with the U.S.
Securities Act.] 

     Any certificate issued at any
time in exchange or substitution for any certificate bearing a restrictive
legend shall also bear such legend unless in the opinion of counsel for the
holder thereof (which counsel shall be reasonably satisfactory to the
Corporation), the securities represented thereby are not, at such time, required
by law to bear such legend. 

     No Units will be issued pursuant
to any conversion of any Special Warrant if the issue of such security would
constitute a violation of the securities laws of the applicable jurisdiction.

     The Special Warrant Indenture
provides for adjustments to the rights of the holders of Special Warrants on the
happening of certain stated events, including the subdivision or consolidation
of the outstanding Common Shares, certain distributions of Common Shares or of
securities convertible into or exchangeable for Common Shares or of other
securities or assets of the Corporation, certain offerings of rights, warrants
or options and certain capital reorganizations. 

     The Special Warrant Indenture
contains provisions making binding on all holders of Special Warrants
outstanding thereunder resolutions passed at meetings of such holders held in
accordance with such provisions and instruments in writing signed by holders of
a specified majority of all outstanding Special Warrants. 

     On presentation at the principal
office of the Trustee in Vancouver, British Columbia, subject to the provisions
of the Special Warrant Indenture and on compliance with the reasonable
requirements of the Trustee, one or more Special Warrant Certificates may be
exchanged at no cost to the holder for one or more Special Warrant Certificates
of different denominations representing in the aggregate the same number of
Special Warrants as the Special Warrant Certificate or Special Warrant
Certificates being exchanged. 

     The Special Warrants represented
by this Special Warrant Certificate may only be transferred, upon compliance
with the conditions prescribed in the Special Warrant Indenture, on the register
of transfers to be kept at the principal office of the Trustee in Vancouver,
British Columbia, by the holder or the executors, administrators or other legal
representatives thereof or the attorney thereof appointed by an instrument in
writing in form and executed in a manner satisfactory to the Trustee and, upon
compliance with such requirements and such other reasonable requirements as the
Trustee may prescribe, such transfer will be duly recorded on such register of
transfers by the Trustee. Notwithstanding the foregoing, the Corporation will be
entitled, and may direct the Trustee, to refuse to record any transfer of any
Special Warrant on such register if such transfer would constitute a violation
of the securities laws of any jurisdiction. 

     The holding of this Special
Warrant Certificate will not constitute the holder a shareholder of the
Corporation or entitle such holder to any right or interest in respect thereof
except as otherwise provided in the Special Warrant Indenture. 

     This Special Warrant Certificate
will not be valid for any purpose until it has been certified by or on behalf of
the Trustee for the time being under the Special Warrant Indenture.

     Time is of the essence hereof. 

4. 

     The Special Warrant Certificate
will be construed and enforced in accordance with the laws prevailing in the
Province of British Columbia and the federal laws of Canada applicable therein
and will be treated in all respects as a British Columbia contract. 

     IN WITNESS WHEREOF THE
CORPORATION has caused this Special Warrant Certificate to be signed by its
officers or other individuals duly authorized in that behalf as of June 5, 2007.

	 	NORD RESOURCES
      CORPORATION 
	 	 	 
	 	 By: 	

     This Special Warrant Certificate
is one of the Special Warrant Certificates referred to in the Special Warrant
Indenture. 

	 	COMPUTERSHARE TRUST
      COMPANY OF CANADA 
	 	 	 
	 	 By: 	

Countersigned by the Trustee as of this 5th day of June, 2007.

	TO: 	NORD RESOURCES CORPORATION 
	AND TO: 	COMPUTERSHARE TRUST COMPANY OF CANADA
  

NOTICE OF CONVERSION 

     The undersigned holder of the
Special Warrants represented by this Special Warrant Certificate hereby
exercises the right thereof to be issued the Units which are issuable pursuant
to the conversion of such Special Warrants on the terms specified in such
Special Warrant Certificate and in the Special Warrant Indenture. 

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

	 Name(s) in
      Full 	 	 Address(es)        	 	 Number of Units 
	 	 	                                     
    	 	 
	 	 	                                                                                 	 	 

(Please print full name in which certificates representing the
Units are to be issued. If any Units are to be issued to a person or persons
other than the holder, the holder must pay to the Special Warrant Agent all
exigible transfer taxes or other government charges. 

DATED this ____ day of _________________, 200__. 

	  	) 	  
	  	) 	 
    
	  	) 	Signature of Registered Holder 
	  	) 	  
	  	) 	 
    
	Signature Guaranteed 	) 	Name of Registered Holder 
	  	) 	  

	[ ] 	
      Please check if the certificates representing the Units
      are to be delivered at the office where this Special 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 Special Warrant Certificate to the
      Special Warrant Agent. 

Instructions: 

	1. 	
      The registered holder may exercise its right to receive
      Units on exercise hereof by completing this form and surrendering this
      form and the Special Warrant Certificate representing the Special Warrants
      being exercised to Computershare Trust Company of Canada, 510 Burrard
      Street, 2nd Floor, Vancouver, British Columbia V6C
  3B9.

	 	 
		
      If the Notice of Conversion indicates that the Units are
      to be issued to a person or persons other than the registered holder of
      the Special Warrant Certificate, the signature of such registered holder
      on the Notice of Conversion must be guaranteed by a Schedule 1 Canadian
      chartered bank or a member of a recognized securities transfer agents
      medallion program (STAMP). The stamp affixed thereon by the guarantor must
      bear the actual words "signature guaranteed" or "signature medallion
      guaranteed" and otherwise be in accordance with industry
  standards.

FORM OF TRANSFER 

Computershare Trust Company of Canada 
510 Burrard Street,
2nd Floor 
Vancouver, British Columbia 
V6C 3B9 

     FOR VALUE RECEIVED the
undersigned hereby sells, assigns and transfers to
___________________________________________________________________________________________________________
(print name and address) the Special Warrants represented by this Special
Warrant Certificate and hereby appoints ______________________________as its
attorney with full power of substitution to transfer the Special Warrants on the
appropriate register of the Trustee. 

     DATED this ____ day of
_________________, 200__. 

	  	) 	  
	  	) 	 
    
	  	) 	Signature of Transferor 
	  	) 	  
	  	) 	 
    
	Signature Guaranteed 	) 	Name of Transferor 
	  	) 	  

CERTAIN REQUIREMENTS RELATING TO TRANSFERS 

	1. 	
      In the case of any transfer of Special Warrants to a
      Person resident in, or otherwise subject to the securities laws of, any
      province or territory of Canada, either the transferee must be an
      "accredited investor" within the meaning of such applicable securities
      laws in Canada or the transfer must otherwise be exempt from the
      prospectus and registration requirements of applicable securities laws in
      Canada.

	 	 
	2. 	
      The Special Warrant Indenture and the Special Warrant
      Certificate contain certain other requirements relating to the transfer of
      Special Warrants, including, among other things, a requirement in certain
      cases that a written opinion of U.S. counsel of recognized standing be
      delivered in connection with the transfer of Special Warrants.

	 	 
	3. 	
      The signature of the transferor must correspond in every
      particular with the surname and the first name(s) or initials shown on the
      face of this certificate and the endorsement must be signature guaranteed,
      in either case, by a Canadian chartered bank, a major trust company in
      Canada, a firm which is a member of a recognized stock exchange in Canada,
      a national securities exchange in the United States, or the National
      Association of Securities dealers or a member of a recognized securities
      transfer agents medallion program (STAMP). The stamp affixed thereon by
      the guarantor must bear the actual words "signature guarantee", or
      "signature medallion guaranteed" and otherwise be in accordance with
      industry standards.Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Corporation - Exhibit 4.73

SHARE PURCHASE WARRANT INDENTURE 

NORD RESOURCES CORPORATION 

- AND - 

COMPUTERSHARE TRUST COMPANY OF CANADA 

 

Providing for the issue 
of up to 15,333,350 Common Share
Purchase Warrants 

 

 

June 5, 2007

TABLE OF CONTENTS

	ARTICLE 1 INTERPRETATION
      	2 
	  	  	  
	1.1 	Definitions 	2 
	1.2 	Meaning of
      “outstanding” for Certain Purposes 	5
      
	1.3 	Day not a Business Day 	6 
	1.4 	Words Importing
      the Singular 	6
      
	1.5 	Time of the Essence 	6 
	1.6 	Interpretation not Affected by Headings, etc 	7
      
	1.7 	Applicable Law 	7 
	1.8 	Trust Indenture
      Legislation 	7
      
	1.9 	Severability 	7 
	1.10 	Entire Agreement
      	7
      
	1.11 	Currency 	7 
	  	  	  
	ARTICLE 2 ISSUE
      OF WARRANTS 	7 
	  	  	  
	2.1 	Creation and Issue of Warrants 	7 
	2.2 	Form and
      Terms of Warrant Certificates 	8
      
	2.3 	Issue of Warrant Certificates 	8 
	2.4 	Warrantholder not a Shareholder 	8
      
	2.5 	Execution of Warrant Certificates 	8 
	2.6 	Certification by Warrant Agent 	9
      
	2.7 	Exchange of Warrant Certificates 	9 
	2.8 	Issue in
      Substitution for Lost Certificates 	9
      
	2.9 	Registration and Transfer of Warrants 	10 
	2.10 	Enforcement of Rights of Warrantholders 	11 
	2.11 	Warrants to Rank Pari Passu 	12 
	2.12 	Notice to
      Warrantholders 	12 
	2.13 	Notice to the Company or the Warrant Agent 	13 
	2.14 	Transfer
      Restrictions and Legends 	15 
	2.15 	Reliance by the Warrant Agent 	17 
	  	  	  
	ARTICLE 3 EXERCISE
      OF WARRANTS 	17 
	  	  	  
	3.1 	Method of Exercise of Warrants 	17 
	3.2 	Effect of
      the Exercise of Warrants 	19 
	3.3 	Partial Exercise of Warrants 	19 
	3.4 	Cancellation of Warrants 	20 
	3.5 	Expiration of Warrants 	20 
	3.6 	Adjustment of the Exercise Price and Subscription Rights
      	20 
	3.7 	Adjustment Rules for Exercise Price 	25 
	3.8 	Postponement of Issue of Shares, etc. 	27 
	3.9 	Notice of Certain Events 	27 
	3.10 	No Fractional
      Shares 	28 
	3.11 	Reclassification, Reorganizations, etc 	28 
	  	  	  
	ARTICLE 4 COVENANTS
      OF THE COMPANY 	29 
	  	  	  
	4.1 	General Covenants 	29 
	4.2 	Securities Qualification Requirements 	31 
	4.3 	Warrant Agent’s Remuneration and Expenses 	31 
	4.4 	Notice to
      Warrantholders of Certain Events 	32 
	4.5 	Closure of Share Transfer Books 	33 
	4.6 	Performance of Covenants by Warrant Agent 	33 

- ii -

	ARTICLE 5 MEETINGS OF WARRANTHOLDERS 	33 
	  	  	  
	5.1 	Right to Convene Meeting 	33 
	5.2 	Notice 	34 
	5.3 	Chairman 	34 
	5.4 	Quorum 	34 
	5.5 	Power to Adjourn 	34 
	5.6 	Show of Hands 	34 
	5.7 	Poll 	35 
	5.8 	Voting 	35 
	5.9 	Persons Entitled to be Present 	35 
	5.10 	Regulations 	35 
	5.11 	Certain Powers Exercisable by Extraordinary Resolution
      	36 
	5.12 	Definition of “Extraordinary Resolution”
      	37 
	5.13 	Resolutions Binding on all Warrantholders 	38 
	5.14 	Holdings by Company Disregarded 	38 
	5.15 	Minutes 	38 
	5.16 	Powers Cumulative 	38 
	5.17 	Instruments in Writing 	38 
	  	  	  
	ARTICLE 6 SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES
      	39 
	  	  	  
	6.1 	Provision for Supplemental Indenture for Certain Purposes
      	39 
	6.2 	Successor Companies 	40 
	6.3 	Successor Body Corporate Substituted 	40 
	  	  	  
	ARTICLE 7 CONCERNING THE WARRANT AGENT 	40 
	  	  	  
	7.1 	Rights and Duties of Warrant Agent 	40 
	7.2 	Evidence, Experts and Advisors 	41 
	7.3 	Documents, Moneys, etc. Held by Warrant Agent 	42 
	7.4 	Action by Warrant Agent to Protect Interests 	42 
	7.5 	Warrant Agent not Required to give Security 	43 
	7.6 	Protection of Warrant Agent 	43 
	7.7 	Replacement of Warrant Agent 	44 
	7.8 	Conflict of Interest 	45 
	7.9 	Acceptance of Trust 	45 
	7.10 	Accounts 	45 
	  	  	  
	ARTICLE 8 GENERAL 	46 
	  	  	  
	8.1 	Satisfaction and Discharge of Indenture 	46 
	8.2 	Sole Benefit of Parties and Warrantholders 	46 
	8.3 	Discretion of Directors 	47 
	8.4 	Privacy 	47 
	8.5 	Counterparts and Formal Date 	48 

SCHEDULE “A”

  FORM OF WARRANT CERTIFICATE TO BE ISSUED TO (A) U.S. PERSONS, (B) PERSONS IN
  THE UNITED STATES, OR (C) PERSONS ACTING FOR THE ACCOUNT OR BENEFIT OF A U.S.
  PERSON OR A PERSON IN THE UNITED STATES

SCHEDULE “B”

  FORM OF WARRANT CERTIFICATE TO BE ISSUED TO PERSONS OTHER THAN (A) U.S. PERSONS,
  (B) PERSONS IN THE UNITED STATES OR (C) PERSONS ACTING FOR THE ACCOUNT OR BENEFIT
  OF A U.S. PERSON OR A PERSON IN THE UNITED STATES

THIS COMMON SHARE PURCHASE WARRANT INDENTURE is made as
of the 5th day of June, 2007. 

BETWEEN: 

NORD RESOURCES CORPORATION, a
company existing under the 
laws of the State of Delaware 

(hereinafter the “Company”) 

AND: 

COMPUTERSHARE TRUST COMPANY OF
CANADA, a trust 
company registered under the laws of Canada and duly
authorized to carry 
on the trust business in each Province of Canada 

(hereinafter called the “Warrant
Agent”).

RECITALS 

     WHEREAS: 

A. The Company may issue up to 15,333,350 Warrants under this
Indenture pursuant to the Offering of Special Warrants; 

B. Each whole Warrant shall be exercisable to acquire, subject
to adjustment in stated circumstances, one Share at the Exercise Price at any
time before the Warrant Expiry Time on the Warrant Expiry Date on the terms and
conditions set forth herein; 

C. The Company is duly authorized to create and issue the
Warrants to be issued as herein provided; 

D. The Warrant Agent has agreed to enter into this Indenture
and to hold all rights, interests and benefits contained herein for and on
behalf of the persons who become Warrantholders; and 

E. The foregoing recitals A, B and C are made as
representations and statements of fact by the Company and not by the Warrant
Agent. 

     NOW THEREFORE, in
consideration of the premises and for other good and valuable consideration, the
receipt and sufficiency whereof is hereby acknowledged, the Company hereby
appoints the Warrant Agent as trustee, for the Warrantholders, to hold all
rights, interests and benefits contained herein for and on behalf of those
persons who become holders of Warrants from time to time issued pursuant to this
Indenture and the parties hereto agree as follows: 

- 2 - 

ARTICLE 1 
INTERPRETATION 

	1.1 	Definitions 

In this Indenture and in the Warrant
Certificates: 

“1933 Act” means the United
States Securities Act of 1933, as amended, and the rules and regulations
thereunder; 

“1934 Act” the United States
Securities and Exchange Act of 1934, as amended, and the rules and
regulations thereunder; 

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

“Agents” means Blackmont Capital
Inc. and Salman Partners Inc.; 

“Applicable Legislation” means
the provisions of General Corporation Law of the State of Delaware, as from time
to time amended, and any statute of Canada or a province thereof, and the
regulations and rules under any such named or other statute relating to trust
indentures or the rights, duties or obligations of corporations and trustees
under trust indentures as are from time to time in force and applicable to this
Indenture; 

“auditors” of the Company means
Mayer Hoffman McCann P.C. or such other independent public accounting firm
registered with the Public Company Accounting Oversight Board as may be duly
appointed as auditor of the Company from time to time; 

“business day” means a day that
is not a Saturday, Sunday or civic or statutory holiday in the City of
Vancouver, British Columbia; 

“Closing Date” means the date of
closing of the Offering as confirmed in writing by the Company; 

“Common Shares” means the shares
of common stock, par value $0.01 per share, which the Corporation is authorized
to issue as constituted on the date hereof, provided that in the event of any
adjustment pursuant to Article 3, “Common Shares” shall thereafter
mean the shares or other securities or property resulting from such adjustment
that a Warrantholder is entitled to acquire on exercise of a Warrant after the
adjustment; 

“Convertible Securities” means
securities of the Company or any other issuer that are convertible into or
exchangeable or exercisable for or otherwise carry the right to acquire Common
Shares, and “Convertible Security” means any one of them; 

“Corporate Reorganization” has
the meaning ascribed thereto in section 3.6(7); 

“Current Market Price” of a
Share at any date means the price per share equal to the weighted average price
per Share being determined by dividing the aggregate sale price 

- 3 - 

of all Common Shares sold on the Pink
Sheets for any 20 consecutive trading days immediately preceding such date by
the aggregate number of Common Shares so sold, or, if the Common Shares are then
listed on a more senior stock exchange, the volume weighted average price at
which the Common Shares have traded on such stock exchange for such 20
consecutive trading day period, or, if not traded on any recognized market or
exchange, as determined by the directors, acting reasonably; 

“Date of Issue” means the date
hereof, notwithstanding that Warrants may be issued and countersigned later than
the date hereof; 

“Directors” means the board of
directors of the Company for the time being and reference without more to action
by the Directors shall mean action by the Directors as a board or by any
authorized committee thereof; 

“dividends” means dividends
(payable in cash or in securities, property or assets of equivalent value)
declared payable on the Common Shares; 

“Exercise Price” means $1.10 per
Share, as adjusted in accordance with the terms of this Indenture, from time to
time; 

“Extraordinary Resolution” means
an extraordinary resolution of Warrantholders as defined in section 5.12 and
includes a written instrument signed by Warrantholders pursuant to the
provisions of section 5.12; 

"Final Prospectus" means the
(final) prospectus of the Corporation which qualifies the distribution of the
Units in the Qualifying Jurisdictions and includes any amendments or supplements
thereto; 

“MRRS” means the mutual reliance
review system established under National Policy 43-201; 

“Offering” means the public
offering of up to 30,666,750 Special Warrants of the Company by way of private
placement; 

“person” means an individual, a
corporation, a partnership, a government or any department or agency thereof, a
joint venture, a trust, an estate, an unincorporated organization and the heirs,
executors, administrators or other legal representatives of an individual; and
pronouns and other words importing persons have a similarly extended meaning;

“Pink Sheets” means the
electronic quotation and trading system for over the counter securities
maintained by Pink Sheets LLC; 

“Qualifying Jurisdictions” means
the provinces of Canada where holders of Warrants are located and any other
jurisdiction in Canada in which the Company is required to file a Final
Prospectus; 

- 4 - 

“Registration Statement” means
the resale registration statement of the Company to be filed with the SEC, as
amended and supplemented in order to register the Common Shares; 

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

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

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

“Securities Commissions” means,
collectively, the securities commissions or other securities regulatory
authorities under the applicable Securities Laws of each of the Qualifying
Jurisdictions; 

“Securities Laws” means,
collectively, the applicable securities laws of each of the Qualifying
Jurisdictions and the respective regulations made and forms prescribed
thereunder together with all applicable published policy statements, rules,
instruments, blanket orders and rulings of the Securities Commissions; 

“Shareholder” means an owner of
record of one or more Common Shares or shares of any other class or series of
the Company; 

“Share Reorganization” has the
meaning ascribed thereto in subsection 3.6(2); 

“Special Warrants” means the
special warrants issued pursuant to the Offering at a purchase price of $0.75
per Special Warrant, each exercisable for one Share and one-half of one Warrant
for no additional consideration in accordance with the terms of the Special
Warrant Indenture; 

“Special Warrant Indenture”
means the agreement dated the date hereof among the Company, Computershare Trust
Company of Canada, as agent for the holders of Special Warrants, and Blackmont
Capital Inc. on behalf of the Agents, providing for the terms and conditions
governing the Special Warrants; 

“Subsidiary” means a
corporation, a majority of the outstanding voting shares of which is owned,
directly or indirectly, by the Company, or by one or more Subsidiaries of the
Company and, as used in this definition, “voting shares” means shares of
a class or classes ordinarily entitled to vote for the election of a majority of
the directors of a corporation irrespective of whether or not shares of any
other class or classes shall have or might have the right to vote for directors
by reason of the happening of any contingency, whether or not such contingency
shall have happened; 

“this Indenture”,
“hereto”, “herein”, “hereby”, “hereunder”,
“hereof” and similar expressions refer to this instrument and not to any
particular Article, section, paragraph, clause, subdivision or other portion
hereof, and include any and every instrument supplemental or ancillary hereto or
in implementation hereof; 

- 5 - 

“Time of Exercise” means the
time that surrender of the Warrant Certificate, delivery of a duly completed
Warrant Exercise Form and payment of the Exercise Price is effected by a
Warrantholder according to the provisions of section 3.1 hereof; 

“trading day”, with respect to
any stock exchange or over-the-counter market, means a day on which shares may
be traded through the facilities of such stock exchange or in such
over-the-counter market and otherwise means a day on which shares may be traded
in the over-the-counter market (or, any senior stock exchange through which the
Common Shares are listed); 

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

“U.S. Person” means a “U.S.
person” as defined in Regulation S; 

“Warrant Agent” means
Computershare Trust Company of Canada or any lawful successor thereto from time
to time under this Indenture; 

“Warrant Certificate” means a
certificate evidencing one or more Warrants, and shall be substantially in the
form: (a) specified in Schedule “A” if issued to (i) U.S. Persons, (ii) persons
in the United States, or (iii) persons acting for the account or benefit of a
U.S. Person or a person in the United States; or (b) specified in Schedule “B”
if issued to persons other than (i) U.S. Persons, (ii) persons in the United
States or (iii) persons acting for the account or benefit of a U.S. Person or a
person in the United States; 

“Warrant Exercise Form” means
the exercise form forming part of each Warrant Certificate as more particularly
described in section 3.1(3) hereof;

“Warrant Expiry Date” means the
date that is 60 months after the Closing Date; 

“Warrant Expiry Time” means 5:00
p.m. (Vancouver time) on the Warrant Expiry Date; and 

“Warrantholder”, “holder”
or “holder of Warrants” means with respect to the Warrants, a person
entered on the register to be maintained under section 2.9 as the registered
holder of a Warrant for the time being; and 

“Warrants” means the share
purchase warrants of the Company issued and certified hereunder and for the time
being outstanding, each exercisable into one Share upon due exercise and payment
of the Exercise Price. 

	1.2 	Meaning of “outstanding” for Certain
      Purposes 

     Every Warrant Certificate
certified and delivered by the Warrant Agent hereunder shall be deemed to be
outstanding until the Warrant Expiry Time, or until it shall be surrendered to
the Warrant Agent upon the exercise thereof pursuant to Article 3, provided
however that: 

- 6 - 

	 	(a) 	
      a Warrant which has been partially exercised shall be
      deemed to be outstanding only to the extent of the unexercised part of the
      Warrant;

	 	 	 	 
	 	(b) 	
      where a Warrant Certificate has been issued in
      substitution for a Warrant Certificate which has been lost, stolen or
      destroyed, only one of them shall be counted for the purpose of
      determining the number of Warrants outstanding; and

	 	 	 	 
	 	(c) 	
      for the purpose of any provision of this Indenture
      entitling holders of outstanding Warrants to vote, sign consents, requests
      or other instruments or take any other action under this Indenture,
      Warrants owned legally or equitably by the Company or any Subsidiary
      thereof shall be disregarded, except that:

	 	 	 	 
	 		(i) 	
      for the purpose of determining whether the Warrant Agent
      shall be protected in relying on any such vote, consent, request or other
      instrument or other action, only the Warrants of which the Warrant Agent
      has notice that they are so owned by the Company or any Subsidiary shall
      be so disregarded; and

	 	 	 	 
	 		(ii) 	
      Warrants so owned which have been pledged in good faith
      other than to the Company or any Subsidiary thereof shall not be so
      disregarded if the pledgee shall establish to the satisfaction of the
      Warrant Agent the pledgee’s right to vote the Warrants in his discretion
      free from the control of the Company or any Subsidiary thereof, as the
      case may be, and the terms of the pledge thereof as to the right to vote
      shall govern.

	1.3 	Day not a Business Day

     If the day on or before which any
action (other than the exercise of a Warrant) would otherwise be required to be
taken or is contemplated to commence hereunder is not a business day, that
action shall be required to be taken and such procedure shall commence on or
before the requisite time on the next succeeding day that is a business day.

	1.4 	Words Importing the Singular
  

     Words importing the singular
include the plural and vice versa and words importing a particular gender
include all genders. 

	1.5 	Time of the Essence 

     Time shall be of the essence in this
Indenture and in the Warrant Certificates. 

- 7 - 

	1.6 	Interpretation not Affected by Headings,
      etc. 

     The division of this Indenture
into Articles, and sections and subsections, 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 hereof. 

	1.7 	Applicable Law 

     This Indenture and the Warrant
Certificates 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 treated in all respects as British Columbia contracts. 

	1.8 	Trust Indenture Legislation
  

	 	(1) 	
      If and to the extent that any provision of this Indenture
      limits, qualifies or conflicts with a mandatory requirement of Applicable
      Legislation, the mandatory requirement shall prevail.

	 	 	 
	 	(2) 	
      Each of the Company and the Warrant Agent shall at all
      times in relation to this Indenture and any action to be taken hereunder
      observe and comply with and be entitled to the benefits of Applicable
      Legislation.

	1.9 	Severability 

     In the event that any provision
hereof shall be determined to be invalid or unenforceable in any respect, such
determination shall not affect such provision in any other respect or any other
provision hereof, all of which shall remain in full force and effect. 

	1.10 	Entire Agreement 

     This Indenture and the agreements
referred to herein constitutes the entire agreement between the parties hereto
relating to the subject matter hereof and supersedes all prior and
contemporaneous agreements, understandings, negotiations and discussions,
whether oral or written, of the parties and there are no general or specific
warranties, representations or other agreement by or among the parties in
connection with the entering into of this Indenture or the subject matter hereof
except as specifically set forth herein. 

	1.11 	Currency 

     Unless otherwise stated, all
dollar amounts referred to in this Indenture are references to United States
dollars. 

ARTICLE 2 
ISSUE OF WARRANTS 

	2.1 	Creation and Issue of Warrants
  

	 	(1) 	
      A total of 15,333,350 Warrants are hereby created and
      authorized to be issued.

- 8 - 

	 	(2) 	
      Subject to adjustment as provided in this Indenture, each
      Warrant issued hereunder shall entitle the holder thereof to purchase one
      Share at any time from and after the Date of Issue of the Warrant to and
      including the Warrant Expiry Time upon the surrender of the Warrant
      Certificate representing the Warrants being exercised and the payment of
      the Exercise Price.

	2.2 	
       
	Form and Terms of Warrant Certificates
	 	 	 
		
      Warrant Certificates shall be substantially in the form
      set out in:

	 	 	 
		(1) 	
      Schedule “A” if issued to (a) U.S. Persons, (b) persons
      in the United States, or (c) persons acting for the account or benefit of
      a U.S. Person or a person in the United States; or

	 	 	 
		(2) 	
      Schedule “B” if issued to persons other than (a) U.S.
      Persons, (b) persons in the United States or (c) persons acting for the
      account or benefit of a U.S. Person or a person in the United
    States;

with such additions, variations or omissions as may be
permitted by the provisions of this Indenture or may from time to time be agreed
upon between the Company and the Warrant Agent and shall be numbered in the
manner as the Company, with the approval of the Warrant Agent, may prescribe. No
Warrant Certificates representing fractional Warrants shall be issued under this
Indenture, and any fractional Warrants shall be rounded down to the nearest
whole Warrant. 

	2.3 	Issue of Warrant Certificates
  

     Warrant Certificates to be issued
and delivered from time to time under this Indenture shall be executed by the
Company and certified by the Warrant Agent pursuant to or upon the written order
of the Company, without the Warrant Agent receiving any consideration therefor.

	2.4 	Warrantholder not a Shareholder
  

     Nothing in this Indenture or in
the ownership of a Warrant evidenced by a Warrant Certificate, or otherwise,
shall be construed as conferring on a Warrantholder any right or interest
whatsoever as a Shareholder of the Company, including but not limited to any
right to vote at, to receive notice of, or to attend, any meeting of
Shareholders or any other proceeding of the Company or any right to receive any
dividend or other distribution. 

	2.5 	Execution of Warrant Certificates
  

     Warrant Certificates may be
signed by any one director or officer of the Company manually or may be
engraved, lithographed or printed in facsimile and shall be dated the Date of
Issue. Notwithstanding that any of the persons whose signature appears on any
Warrant Certificates as one of the officers or directors may no longer, before
the certification and delivery of the Warrant Certificate, hold the official
capacity in which he signed, any Warrant Certificate signed as aforesaid shall
be valid and binding upon the Company when the Warrant Certificate 

- 9 - 

has been certified by the Warrant Agent in accordance with
section 2.6 and the registered holder thereof shall be entitled to the benefits
of this Indenture. 

	2.6 	Certification by Warrant Agent
  

	 	(1) 	
      No Warrant Certificate shall be issued, or if issued,
      shall be valid or entitle the holder to the benefit hereof until it has
      been certified by the Warrant Agent by being countersigned by or on behalf
      of the Warrant Agent and the countersignature upon any Warrant Certificate
      shall be conclusive evidence as against the Company that the Warrant
      Certificate so countersigned has been duly issued hereunder and is a valid
      obligation of the Company, and that the holder is entitled to the benefit
      hereof.

	 	 	 
	 	(2) 	
      The countersigning by or on behalf of the Warrant Agent
      on any Warrant Certificate issued hereunder shall not be construed as a
      representation or warranty by the Warrant Agent as to the validity of this
      Indenture or of the Warrants and the Warrant Agent shall in no respect be
      liable or answerable for the use made of any Warrant Certificate or of the
      consideration therefor, except as otherwise specified herein. The
      countersignature of or on behalf of the Warrant Agent shall, however, be a
      representation and warranty by the Warrant Agent that the Warrant
      Certificate has been duly countersigned by or on behalf of the Warrant
      Agent pursuant to the provisions of this
Indenture.

	2.7 	Exchange of Warrant Certificates
  

     The holder of a Warrant
Certificate may at any time after the date of issue thereof and before the
Warrant Expiry Time, upon surrender thereof to the Warrant Agent at its
principal transfer offices in the City of Vancouver or at any other place that
is designated by the Company with the approval of the Warrant Agent, exchange
the same for Warrant Certificates entitling the holder to subscribe in the
aggregate for the same number of Common Shares for which the holder may
subscribe under the surrendered Warrant Certificate. On each exchange the
Warrant Agent may levy a charge sufficient to reimburse it for any tax or other
governmental charge required to be paid, which shall be paid by the party
requesting the exchange, and, in addition, a reasonable charge for every Warrant
Certificate issued upon the exchange and such additional charge shall be made by
the Company, as a condition precedent thereto. The Company shall execute and the
Warrant Agent shall certify in accordance with sections 2.5 and 2.6 all Warrant
Certificates necessary to carry out exchanges contemplated herein. 

	2.8 	Issue in Substitution for Lost
      Certificates 

	 	(1) 	
      If a Warrant Certificate becomes mutilated or is lost,
      destroyed or stolen, the Company, subject to applicable law and subject to
      subsection (2), shall issue and thereupon the Warrant Agent shall
      countersign or certify and deliver a new certificate of like denomination,
      date and tenor as the one mutilated, lost, destroyed or stolen in exchange
      for and in place of and on surrender and cancellation of the mutilated
      certificate or in lieu of and in substitution for the lost, destroyed or
      stolen certificate, and the substituted Warrant Certificate
  shall

- 10 - 

	 		
      entitle the holder thereof to the same rights and
      benefits and shall bear the same legends, if any, as the certificate being
      replaced and shall rank equally in accordance with its terms with all
      other Warrant Certificates issued or to be issued hereunder.

	 	 	 	 
	 	(2) 	
      The applicant for the issue of a new certificate pursuant
      to this section shall bear the cost of the issue thereof and in case of
      loss, destruction or theft shall, as a condition precedent to the issue
      thereof:

	 	 	 	 
	 		(a) 	
      furnish to the Company and the Warrant Agent such
      evidence of ownership and of the loss, destruction or theft of the
      certificate to be replaced as is satisfactory to the Company and to the
      Warrant Agent in their discretion;

	 	 	 	 
	 		(b) 	
      furnish an indemnity and surety bond in amount and form
      satisfactory to the Company and to the Warrant Agent, in their discretion;
      and

	 	 	 	 
	 		(c) 	
      pay the reasonable charges of the Company and the Warrant
      Agent in connection therewith.

	2.9 	Registration and Transfer of Warrants
  

	 	(1) 	
      The Company shall cause to be kept by and at the
      principal offices of the Warrant Agent in the City of Vancouver and by the
      Warrant Agent or such other registrar as the Company, with the approval of
      the Warrant Agent, may appoint, at such other place or places, if any, as
      the Company may designate with the approval of the Warrant Agent,
      registers in which shall be entered in alphabetical order the names and
      addresses (including street and number, if any) of the holders of Warrants
      and particulars of the Warrants held by them respectively. Such
      registration shall be noted on the Warrant Certificates by the Warrant
      Agent or other registrar.

	 	 	 
	 	(2) 	
      No transfer of a Warrant shall be valid unless made on
      any one of the registers upon surrender of the Warrant Certificate to the
      Warrant Agent or other registrar accompanied by a written instrument of
      transfer in form satisfactory to the Warrant Agent or other registrar
      executed by the registered holder or his executors, administrators or
      other legal representatives or his or their attorney duly appointed by an
      instrument in writing in form and execution satisfactory to the Warrant
      Agent or other registrar and upon compliance with such reasonable
      requirements, including those set forth in section 2.14 hereof, if
      applicable, as the Warrant Agent or other registrar may prescribe, nor,
      except in the case where a new Warrant Certificate is issued upon a
      transfer, unless the transfer shall have been noted by the Warrant Agent
      or other registrar.

	 	 	 
	 	(3) 	
      The registered holder of Warrants may at any time and
      from time to time have the registration of the Warrants transferred from
      the register in which the registration

- 11 - 

	 		
      thereof appears to another authorized register upon
      compliance with such reasonable requirements as the Warrant Agent or other
      registrar may prescribe.

	 	 	 
	 	(4) 	
      The Company shall also cause to be kept by and at the
      principal offices of the Warrant Agent in the City of Vancouver and by the
      Warrant Agent or such other registrar as the Company may appoint, with the
      approval of the Warrant Agent, at such other place or places, if any, as
      the Company may designate with the approval of the Warrant Agent,
      registers in which all transfers of Warrants and the date and other
      particulars of each transfer shall be set out.

	 	 	 
	 	(5) 	
      The transferee of Warrants shall, after the Warrant
      Certificate and the appropriate form of transfer are lodged with the
      Warrant Agent or other registrar and upon compliance with all other
      conditions in that behalf required by this Indenture or by law, be
      entitled to be entered on one of the registers as the owner of the
      Warrants free from all equities or rights of set-off or counterclaim
      between the Company and his transferor or any previous holder of the
      Warrants, save in respect of the equities of which the Company is required
      to take notice by statute or by order of a court of competent jurisdiction
      or by applicable law. The receipt by the registered holder of Warrants of
      the Common Shares purchasable pursuant thereto shall be a good discharge
      to the Company and the Warrant Agent therefor and neither the Company nor
      the Warrant Agent shall be bound to inquire into the title of the holder
      except as aforesaid.

	 	 	 
	 	(6) 	
      Subject to applicable law, neither the Company nor the
      Warrant Agent nor any registrar shall be bound to take notice of or see to
      the execution of any trust, whether express, implied or constructive, in
      respect of any Warrant or Warrant Certificate, and may transfer the same
      on the direction of the person registered as the holder thereof, as though
      that person were the beneficial owner thereof.

	 	 	 
	 	(7) 	
      The registers required to be kept in the City of
      Vancouver shall at all reasonable times be open for inspection by the
      Company or any Warrantholder. The Warrant Agent and every registrar shall
      from time to time when requested to do so by the Company, by the Warrant
      Agent or by a Warrantholder, furnish the Warrant Agent or upon payment by
      the Company or Warrantholder of a reasonable fee, the Company or the
      Warrantholder, as the case may be, with a list of names and addresses of
      holders of Warrants entered on the registers kept by them and showing the
      number of Warrants held by each such holder.

	2.10 	Enforcement of Rights of Warrantholders
    

	 	(1) 	
      All or any of the rights conferred upon a Warrantholder
      by the terms of the Warrants held by him and/or by the terms of this
      Indenture may be enforced by such Warrantholder by appropriate legal
      proceedings, but subject to the rights which are hereby conferred upon the
      Warrant Agent and subject to the provisions of section 7.1. The Warrant
      Agent shall also have the power at any time and from time to time to
      institute and to maintain such suits and proceedings as it
  may

- 12 - 

	 		
      reasonably be advised shall be necessary or advisable to
      preserve and protect the interests of the Warrantholder.

	 	 	 
	 	(2) 	
      No one or more Warrantholders shall have any right in any
      manner whatsoever to affect, disturb or prejudice the rights hereby
      created by his or their action, or to enforce any right hereunder or under
      any Warrant Certificate, except subject to the conditions and in the
      manner herein provided and all powers and trusts hereunder shall be
      exercised and all proceedings at law shall be instituted, had and
      maintained by the Warrant Agent, except only as herein provided, and in
      any event for the equal benefit of all Warrantholders.

	 	 	 
	 	(3) 	
      No recourse under or upon any obligation, covenant or
      agreement contained in this Indenture or in the Warrant Certificates shall
      be had against any shareholder, officer or director, past, present or
      future, of the Company or of any of its Subsidiaries or of any successor
      corporation or any subsidiary, either directly or through the Company, or
      the Subsidiaries or otherwise, by any legal or equitable proceeding by
      virtue of any statute or otherwise.

	 	 	 
	 	(4) 	
      This Indenture and the Warrants issued hereunder are
      solely obligations of the Company and no personal liability whatsoever
      shall attach to or be incurred by the shareholders, officers or directors,
      past, present or future, of the Company, or of any of its Subsidiaries, or
      any successor corporations, under or by reason of the obligations,
      covenants or agreements contained in this Indenture or in the Warrant
      Certificates; and any personal liability of any nature whatsoever either
      at common law, in equity or by statute, and any right or claim against any
      such shareholder, officer or director are hereby expressly waived as a
      condition of and as consideration for the execution of this Indenture and
      the issue of the Warrants.

	2.11 	Warrants to Rank Pari Passu
  

     Except as otherwise provided
herein, all Warrants shall rank pari passu, whatever may be the actual
dates of issue thereof. 

	2.12 	Notice to Warrantholders

	 	(1) 	
      Unless herein otherwise expressly provided, a notice to
      be given hereunder to Warrantholders shall be deemed to be validly given
      if the notice is sent by ordinary mail or air mail, postage prepaid,
      addressed to the holders or delivered by hand or prepaid courier (or so
      mailed to certain holders and so delivered to the other holders) at their
      respective addresses appearing on any of the registers above mentioned;
      and if in the case of joint holders of any Warrant more than one address
      appears on the register in respect of the joint holding, the notice shall
      be addressed or delivered, as the case may be, only to the first address
      so appearing. The Warrant Agent shall give, in the same manner as for
      Warrantholders set out above, a copy of each such notice to Blackmont
      Capital Inc., Attention: Chad Williams (Facsimile No. 416-864-9024), with
      a copy to Fraser Milner Casgrain, Attention: James Clare (Facsimile No.
      416-863-4592). Any notice so given by

- 13 - 

	 		
      mail or so delivered by hand shall be deemed to have been
      given on the fifth business day after it has been mailed or on the day
      upon which it has been delivered, or if sent by facsimile on the first
      business day following the transmission, as the case may be. In
      determining under any provision hereof the date when notice of any meeting
      or other event must be given, the date of giving the notice shall be
      included and the date of the meeting or other event shall be excluded.
      Accidental error or omission in giving notice or accidental failure to
      mail notice to any Warrantholder shall not invalidate any action or
      proceeding founded thereon.

	 	 	 
	 	(2) 	
      If, by reason of a strike, lockout or other work
      stoppage, actual or threatened, involving postal employees, a notice to be
      given to the Warrantholders hereunder could reasonably be considered
      unlikely to reach or to be delayed in reaching its destination, the notice
      shall be valid and effective only if it is published once in the Report on
      Business section in the national edition of The Globe and Mail
      newspaper, or, if there is a disruption of circulation of that
      newspaper, once in an English language newspaper of general circulation
      and approved by the Warrant Agent in the City of Vancouver and, in the
      case of notice convening a meeting of Warrantholders, with such additional
      publications, in the same or in other cities or both, as the Warrant Agent
      deems necessary for the reasonable protection of the Warrantholders or to
      comply with any applicable requirement of law or a stock exchange on which
      the Common Shares are listed and if a daily newspaper of general
      circulation is not, for any reason, published at the time in the English
      language in any city, the notice may be published in any other publication
      available in that city as is acceptable to the Warrant Agent. A notice so
      given shall be deemed to have been given on the day on which it has been
      published in all of the cities in which publication was required (or first
      published in all the cities if more than one publication in any of them is
      required).

	 	 	 
	 	(3) 	
      Any mailings to or from outside of Canada shall be made
      by postage prepaid mail or by prepaid courier.

	2.13 	Notice to the Company or the Warrant
      Agent 

	 	(1) 	Unless herein otherwise expressly
      provided, a notice to be given hereunder to the Company or the Warrant
      Agent shall be validly given if delivered or if sent by postage prepaid
      mail or if transmitted by facsimile: 
	 	  	  	  	  
	 	  	(a) 	if to the Company: 
	 	  	  	  	  
	 	  	  	Nord Resources Corporation 
	 	  	  	1 West Wetmore Road, Suite 203 
	 	  	  	Tucson, Arizona 85705 
	 	  	  	  	  
	 	  	  	Attention: 	John Perry 
	 	  	  	Facsimile: 	520-292-0268 

- 14 - 

	 	  	With a copy, which shall not
      constitute notice to the Company, to: 
	 	  	  	  
	 	  	Lang Michener LLP 
	 	  	Barristers and Solicitors 
	 	  	PO Box 11117, Royal Centre 
	 	  	#1500 – 1055 West Georgia Street
  
	 	  	Vancouver, British Columbia V6E 4N7
    
	 	  	  	  
	 	  	Attention: 	Stephen Wortley 
	 	  	Facsimile: 	604-893-2378 
	 	  	  	  
	 	(b) 	if to the Warrant Agent: 
	 	  	  	  
	 	  	Computershare Trust Company of Canada
    
	 	  	510 Burrard Street, 3rd
      Floor 
	 	  	Vancouver, British Columbia V6C 3B9
    
	 	  	  	  
	 	  	Attention: 	Manager, Corporate Trust 
	 	  	Facsimile: 	604-661-9403 

	 		
      and any notice delivered in accordance with the foregoing
      shall be deemed to have been received on the date of delivery or, if
      mailed, on the fifth business day following the day of the mailing of the
      notice, or if transmitted by facsimile, on the first business day
      following the transmission.

	 	 	 
	 	(2) 	
      The Company or the Warrant Agent, as the case may be, may
      from time to time notify the other in the manner provided in subsection
      2.13(1)of a change of address which, from the effective date of the notice
      and until changed by like notice, shall be the address of the Company or
      the Warrant Agent, as the case may be, for all purposes of this
      Indenture.

	 	 	 
	 	(3) 	
      If, by reason of a strike, lockout or other work
      stoppage, actual or threatened, involving postal employees, a notice to be
      given to the Warrant Agent or to the Company hereunder by registered mail
      could reasonably be considered unlikely to reach or to be delayed in
      reaching its destination, the notice shall be valid and effective only if
      it is delivered to an officer of the party to which it is addressed or if
      it is delivered to that party at the appropriate address provided in
      subsection 2.13(1) by cable, facsimile, telegram, or other means of
      prepaid transmitted, recorded communication, and any notice delivered in
      accordance with the foregoing shall be deemed to have been received on the
      date of delivery to the officer or if delivered by cable, facsimile,
      telegram, telex or other means of prepaid, transmitted, recorded
      communication, on the first business day following the date of the sending
      of the notice.

	 	 	 
	 	(4) 	
      Any mailings to or from outside of Canada shall be made
      by registered airmail, postage prepaid or by prepaid
  courier.

- 15 - 

	2.14 	Transfer Restrictions and Legends
  

	 	(1) 	
      Unless a MRRS decision document has been issued for the
      Final Prospectus, or the Company has been a reporting issuer in a
      jurisdiction of Canada for at least four months and one day, certificates
      representing the Warrants, or Common Shares issued upon exercise of the
      Warrants, as well as all certificates issued in exchange for or in
      substitution of such certificates shall bear the following legend:
  

	 	 	
       

	 	  	
      "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT
      IS FOUR MONTHS AND A DAY AFTER THE LATER OF (I) JUNE 5, 2007, AND (II) THE
      DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF
      CANADA." 

	 	 	
       

	 	(2) 	
      Warrant Certificates representing Warrants issued to U.S.
      Persons, to persons in the United States or to persons for the account or
      benefit of a U.S. Person or a person in the United States, as well as all
      certificates issued in exchange for or in substitution of such
      certificates representing Warrants shall bear the following legend:
  

	 	 	
       

	 	  	
      “THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
      HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES
      LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE
      SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM
      REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS. 

	 	 	
       

	 	  	
      THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A
      U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND
      SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
      UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF
      ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS
      AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION
      S UNDER THE U.S. SECURITIES ACT.” 

	 	 	
       

	 	(3) 	
      Warrant Certificates representing Warrants issued to a
      person other than a person described in subsection 2.14(2), as well as all
      certificates issued in exchange for or in substitution of such
      certificates representing Warrants, shall bear the following additional
      legend: 

	 	 	
       

	 	  	
      “THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
      HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES
      LAWS, AND HAVE BEEN OFFERED AND SOLD IN AN OFFSHORE TRANSACTION PURSUANT
      TO REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT. THEY MAY NOT BE
      SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND
      IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
      EXEMPTION OR EXCLUSION FROM 

- 16 - 

	 	  	
      REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S.
      SECURITIES ACT. 

	 	 	
       

	 	  	
      THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A
      U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND
      SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
      UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF
      ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS
      AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION
      S UNDER THE U.S. SECURITIES ACT.” 

	 	 	
       

	 	(4) 	
      Certificates representing Common Shares issued to a
      person described in subsection 2.14(2) upon exercise of the Warrants, as
      well as all certificates issued in exchange for or in substitution of such
      certificates shall bear the following legend: 

	 	 	
       

	 	  	
      “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE
      SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND
      IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
      EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND
      ANY APPLICABLE STATE SECURITIES LAWS.” 

	 	 	
       

	 	(5) 	
      Certificates representing Common Shares issued to a
      person other than a person described in subsection 2.14(2) upon exercise
      of the Warrants, as well as all certificates issued in exchange for or in
      substitution of such certificates shall bear the following legend:
  

	 	 	
       

	 	  	
      “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE BEEN
      OFFERED AND SOLD IN AN OFFSHORE TRANSACTION PURSUANT TO REGULATION S
      PROMULGATED UNDER THE U.S. SECURITIES ACT. THEY MAY NOT BE SOLD, OFFERED
      FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE
      WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR
      EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S.
      SECURITIES ACT.” 

	 	 	
       

	 	(6) 	
      In connection with the issuance of certificates
      representing Common Shares in the circumstances described subsections
      2.14(4) or 2.14(5), if the Registration Statement has been declared
      effective and has not ceased to be effective, the Company shall cause
      legal counsel to issue a legal opinion to facilitate the issuance of such
      certificates without the legends set forth in subsections 2.14(4) or
      2.14(5), provided that the Common Shares represented by such certificates
      are being distributed in accordance with the plan of distribution as set
      forth in the Registration Statement. 

- 17 - 

	2.15 	Reliance by the Warrant Agent
  

     The Warrant Agent shall have no
obligation to ensure or verify compliance with any applicable laws or regulatory
requirements on the issue, exercise or transfer of any Warrants or any Common
Shares issuable upon the exercise thereof, provided such issue, exercise or
transfer, as the case may be, is effected in accordance with the terms of this
Agreement. The Warrant Agent shall be entitled to process all transfers and
exercises of Warrants upon the presumption that such transfers or exercises are
permissible pursuant to all applicable laws and regulatory requirements. The
Warrant Agent may assume for the purposes of this Agreement that any address on
the register of the Warrantholders is the holder’s actual address and is also
determinative as to residency and that the address of any transferee to whom any
Common Shares or Warrants are to be registered, as shown on the transfer
document, is the transferee’s residency. The Warrant Agent shall have no
obligation to ensure that legends appearing on the Share certificates or Warrant
Certificates comply with regulatory requirements or securities laws of any
applicable jurisdiction, but shall ensure that the applicable legends required
to be placed on the certificates evidencing the Common Shares and Warrants
pursuant to this Agreement are placed thereon. 

	ARTICLE 3 
	EXERCISE OF WARRANTS 

	3.1 	Method of Exercise of Warrants
  

	 	(1) 	
      Each Warrant may be exercised by the holder thereof at
      any time on or after the Date of Issue, but not after the Warrant Expiry
      Time, upon the terms and subject to the conditions set forth
  herein.

	 	 	 
	 	(2) 	
      Subject to and upon compliance with the provisions of
      this Article, the holder of any Warrant Certificate may exercise the right
      of purchase therein provided for by surrendering the Warrant Certificate
      to the Warrant Agent at its principal transfer office in the City of
      Vancouver or at such additional place or places as may be designated by
      the Company from time to time with the approval of the Warrant Agent
      during normal business hours on a business day at that place before the
      Warrant Expiry Time, together with the Warrant Exercise Form duly
      completed and executed by the holder for the number of Common Shares which
      the holder desires to purchase and payment of the aggregate Exercise Price
      applicable at the time of the surrender calculated in accordance with the
      provisions of this Indenture. The aggregate Exercise Price for Common
      Shares subscribed for under the Warrants shall be paid by certified
      cheque, bank draft or money order payable to or to the order of the
      Company at par at the city where the Warrant Certificate is surrendered.
      Surrender of a Warrant Certificate with the Warrant Exercise Form duly
      completed and payment of the aggregate Exercise Price shall be deemed to
      have been effected, and Warrants shall be deemed to have been exercised,
      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 one of the
      offices specified in this section.

- 18 - 

	 	(3) 	
      Every Warrant Exercise Form shall be signed by the holder
      of the Warrant Certificate who desires to exercise in whole or in part the
      right of purchase therein provided for; shall specify the number of Common
      Shares that the subscriber wishes to purchase (being not more than he is
      entitled to purchase under the Warrant Certificate), the person or persons
      in whose name or names the Common Shares which the subscriber desires to
      purchase are to be issued and his or their address or addresses and the
      number of Common Shares to be issued to each such person, and if more than
      one is so specified, the form shall have one of the boxes in the Warrant
      Exercise Form checked; and shall be substantially in the form set out in
      the Warrant Certificate.

	 	 	 	 
	 	(4) 	
      If any Common Shares subscribed for are to be issued to a
      person or persons other than the Warrantholder, the Warrantholder must pay
      to the Company or to the Warrant Agent on his behalf an amount equal to
      all applicable transfer taxes or other government charges, and the Company
      shall not be required to issue or deliver any certificate evidencing any
      Common Shares unless or until that amount has been so paid or the
      Warrantholder has established to the satisfaction of the Company that the
      taxes and charges have been paid or that no taxes or charges are
    owing.

	 	 	 	 
	 	(5) 	
      A holder of any Warrant may only exercise the right to
      purchase Common Shares issuable upon the exercise of the Warrants the
      circumstances noted below:

	 	 	 	 
	 		(a) 	
      if the holder is not a U.S. Person or a person in the
      United States, and the holder delivers a duly completed and executed
      Warrant Exercise Certification (in the form attached hereto as Schedule B)
      certifying that the holder: (A)(1) is not in the United States; (2) is not
      a U.S. Person and is not exercising the Warrants for, or on behalf or
      benefit of, a U.S. Person or person in the United States; (3) did not
      execute or deliver the Warrant exercise form in the United States; (4)
      agrees not to engage in hedging transactions with regard to the Common
      Shares prior to the expiration of the one-year distribution compliance
      period set forth in Rule 903(b)(3) of Regulation S; (5) acknowledges that
      the Common Shares issuable upon exercise of the Warrants are “restricted
      securities” as defined in Rule 144 of the 1933 Act and upon the issuance
      thereof, and until such time as the same is no longer required under the
      applicable requirements of the 1933 Act or applicable U.S. state laws and
      regulations, the certificates representing the Common Shares shall bear a
      restrictive legend; (6) agrees not to resell the Common Shares unless (i)
      pursuant to registration under the 1933 Act, (ii) pursuant to an available
      exemption from registration under the 1933 Act, or (iii) pursuant to the
      provisions of Regulation S of the 1933 Act; and (7) acknowledges that the
      Company shall refuse to register any transfer of the Common Shares not
      made in accordance with the provisions of Regulation S, pursuant to
      registration under the 1933 Act, or pursuant to an available exemption
      from registration under the 1933 Act; and (B) the holder has not engaged
      in any “directed selling efforts” (as defined in Regulation S) in the
      United States; or

- 19 - 

	 	 	(b) 	 if the holder is a U.S. Person or a person in the United
        States, the holder (i) purchased the Special Warrants directly from the
        Corporation pursuant to a written subscription agreement for the purchase
        of Special Warrants, (ii) is exercising the Warrants solely for its own
        account and not on behalf of any other Person; and (iii) was an "accredited
        investor", as that term is defined in Regulation D under the 1933
        Act, both on the date the Special Warrants were purchased from the Corporation
        and on the date of exercise of the Warrants; or

	 	 		  

	 	 	(c) 	 in a transaction that does not require registration
        under the 1933 Act or any applicable U.S. state laws and regulations and
        the holder has (A) delivered a duly completed and executed Warrant Exercise
        Certification (in the form attached hereto as Schedule B) certifying that
        the holder is exercising the Warrants pursuant to such exemptions and
        (B) furnished to the Company, prior to such exercise, an opinion of counsel
        of recognized standing in form and substance satisfactory to the Company
        to such effect.

	3.2 	Effect of the Exercise of Warrants
  

	 	(1) 	
      Subject to subsection (2) and section 3.8, on exercise of
      a Warrant, the Company shall cause to be issued to the person or persons
      in whose name or names the Common Shares so subscribed for are to be
      issued as specified in the Warrant Exercise Form, the number of Common
      Shares to be issued to such person or persons and such person or persons
      shall become a Shareholder or Shareholders of the Company in respect of
      those Common Shares with effect from the date on which the Warrant is
      exercised and shall be entitled to delivery of a certificate or
      certificates evidencing the Common Shares and the Company shall cause the
      certificate or certificates to be mailed by first class, insured mail or
      delivered as specified to such person or persons (or, if applicable, the
      trustee under the registered retirement savings plan which holds the
      Common Shares) at the address or addresses specified in the Warrant
      Exercise Form within five business days of the date on which the Warrant
      is exercised. A Warrant which has been so exercised shall thereafter be
      void and of no further force or effect.

	 	 	 
	 	(2) 	
      Notwithstanding any provision herein contained to the
      contrary, the Company shall not be required to deliver certificates for
      Common Shares in any period while the share transfer books of the Company
      are closed and, in the event of the exercise of any Warrant during any
      such period, the Common Shares subscribed for shall be issued and such
      person shall be deemed to have become the holder of record of such Common
      Shares on the date to which such delivery of certificates for Common
      Shares may be postponed (such period not exceeding three business days
      after the date of the re-opening of the share transfer
  books).

	3.3 	Partial Exercise of Warrants
  

     A Warrantholder may subscribe for and
purchase any lesser number of Common Shares than the number of Common Shares to
which such holder is entitled upon the exercise of 

- 20 - 

Warrants, in which case the Warrantholder shall be entitled to
receive forthwith a new Warrant Certificate in respect of the Common Shares
purchasable under the original Warrant Certificate and not then subscribed for
and purchased, and the Warrant Agent shall issue a new Warrant Certificate upon
surrender of the Warrant Certificate, if satisfied that the new Warrant
Certificate is properly issuable. 

	3.4 	Cancellation of Warrants

     All Warrants exercised as
provided in section 3.1, partially exercised as provided in section 3.3, or
exchanged for other Warrants as provided in section 2.7 or otherwise surrendered
to the Warrant Agent shall be cancelled and either held by the Warrant Agent
until termination of this Indenture or resignation of the Warrant Agent or
destroyed by the Warrant Agent at the direction of the Company and, if required
by the Company, the Warrant Agent shall furnish the Company with a certificate
as to the destruction. 

	3.5 	Expiration of Warrants

     After the Warrant Expiry Time,
all rights under this Indenture and under any Warrant that has not been
exercised shall wholly cease and terminate and the Warrant Certificate therefor
shall be wholly void and of no effect. 

	3.6 	Adjustment of the Exercise Price and
      Subscription Rights 

	 	(1) 	
      In this section, the terms “record date” and
      “effective date” where used herein, shall mean the close of
      business on the relevant date.

	 	 	 	 
	 	(2) 	
      If and whenever at any time from the date hereof until
      the Warrant Expiry Time, the Company:

	 	 	 	 
	 		(a) 	
      issues Common Shares or Convertible Securities to all or
      substantially all of the holders of Common Shares by way of stock dividend
      or other distribution, other than: the issue from time to time of Common
      Shares or Convertible Securities by way of stock dividend to Shareholders
      who elect to receive Common Shares or Convertible Securities in lieu of
      cash dividends in the ordinary course or pursuant to a dividend
      reinvestment plan;

	 	 	 	 
	 		(b) 	
      subdivides, redivides or changes the outstanding Common
      Shares into a greater number of shares, or

	 	 	 	 
	 		(c) 	
      combines, consolidates or reduces the outstanding Common
      Shares into a lesser number of shares,

(each of such events being herein
called a “Share Reorganization”), the Exercise Price shall be adjusted
effective immediately on the record date for the dividend or, in the case of a
subdivision, redivision, change, combination, consolidation or reduction,
effective immediately on the record date, or the effective date if no record
date is fixed, to the number that is the product of: 

- 21 - 

	 	(d) 	
      the Exercise Price in effect immediately before that
      effective date or record date; and

	 	 	 	 
	 	(e) 	
      the fraction of which:

	 	 	 	 
	 		(i) 	
      the numerator is the total number of Common Shares
      outstanding on that effective date or record date before giving effect to
      the Share Reorganization, and

	 	 	 	 
	 		(ii) 	
      the denominator is the total number of Common Shares that
      are or would be outstanding immediately after that effective date or
      record date after giving effect to the Share Reorganization and assuming
      all Convertible Securities issued as part of the Share Reorganization had
      then been converted into or exchanged for Common Shares or all rights to
      acquire Common Shares had then been exercised.

	 		
      For the purpose of determining the number of Common
      Shares outstanding at any particular time there shall be included that
      number of Common Shares which would have resulted from the conversion or
      exchange at that time of all Convertible Securities of the Company (other
      than any Convertible Securities issued to holders of Common Shares by way
      of a stock dividend or other distribution and otherwise included in
      computing the denominator in clause (ii) hereof). Common Shares (and
      Common Shares issuable upon conversion or exchange of Convertible
      Securities) issued or to be issued under a Share Reorganization shall be
      deemed to be outstanding on the record date or effective date for such
      Share Reorganization for the purpose of calculating the number of
      outstanding Common Shares under subsections 3.6(3) and (5). To the extent
      that any Convertible Securities issued to holders of Common Shares by way
      of a stock dividend or other distribution are not so converted or
      exchanged into or for Common Shares before the expiration of the right to
      do so, the conversion price shall then be readjusted to the conversion
      price which would then be in effect based upon the number of Common Shares
      actually issued upon the conversion or exchange of the Convertible
      Securities.

	 	 	 
	 	(3) 	
      If and whenever at any time from the date hereof to the
      Warrant Expiry Time, the Company shall fix a record date for the issuance
      or distribution of rights, options or warrants to all or substantially all
      of the holders of the outstanding Common Shares entitling them, for a
      period expiring not more than 45 days after the record date, to subscribe
      for or purchase Common Shares or Convertible Securities at a price per
      Share (or having a conversion price per Share) less than 95% of the
      Current Market Price on the record date (any such issuance being herein
      called a “Rights Offering”), the Exercise Price shall be adjusted
      on the record date for the Rights Offering to the number which is the
      product of the Exercise Price in effect immediately before the record date
      and the fraction:

- 22 - 

	 	(i) 	
      the numerator of which shall be the total of (A) the
      number of Common Shares outstanding immediately before the record date and
      (B) a number of Common Shares equal to the number arrived at by
      multiplying the total number of additional Common Shares offered for
      subscription or purchase or into or for which the total number of
      Convertible Securities so offered are convertible or exchangeable by the
      quotient obtained by dividing the purchase or subscription price for each
      Share offered for subscription or purchase or the conversion price for
      each Convertible Security so offered by such Current Market Price for the
      Common Shares, and

	 	 	 
	 	(ii) 	
      the denominator of which shall be the total number of
      Common Shares outstanding immediately before such record date plus the
      total number of additional Common Shares offered for subscription or
      purchase or into or for which the total number of Convertible Securities
      so offered are convertible or exchangeable.

	 		
      The adjustment shall be made successively whenever a
      record date is fixed, and shall become effective immediately after the
      record date for determination of shareholders entitled to receive such
      Common Shares or Convertible Securities, provided that if two or more such
      record dates or dates of announcement, as applicable, referred to in
      subsection 3.6(3) are fixed within a period of 35 trading days, the
      adjustment shall be made successively as if each of such record dates
      occurred on the earliest of such record dates. To the extent that any
      rights, options or warrants are not so issued or any of the rights,
      options or warrants so issued are not exercised before the expiration
      thereof, or any Convertible Securities are not so converted into or
      exchanged for Common Shares before the expiration of the right to do so,
      the Exercise Price shall be readjusted to the Exercise Price in effect
      immediately before the record date, and the Exercise Price shall be
      further adjusted based upon the number of additional Common Shares
      actually delivered upon the exercise of the rights, options or warrants,
      or issued upon the conversion or exchange of the Convertible Securities,
      as the case may be.

	 	 	 
	 	(4) 	
      If and whenever at any time from the date hereof to the
      Warrant Expiry Time, the Company shall fix a record date for the issue of
      rights, options or warrants to all or substantially all the holders of the
      outstanding Common Shares entitling them, for a period expiring not more
      than 45 days after such record date, to subscribe for or purchase Common
      Shares or Convertible Securities at a price per Share (or having a
      conversion price per Share) not less than 95% of the Current Market Price
      on the record date, the Exercise Price shall not be adjusted.

	 	 	 
	 	(5) 	
      If and whenever at any time from the date hereof to the
      Warrant Expiry Time the Company shall fix a record date for the making of
      an issue or distribution to all or substantially all the holders of its
      outstanding Common Shares of (a) shares or securities of any class,
      excluding Common Shares or Convertible Securities referred to in
      subsection 3.6(2)(a), whether of the Company or any other corporation, or
      (b) rights, options or warrants, excluding those referred to
  in

- 23 - 

subsection 3.6(3) or (4), or (c)
evidences of its indebtedness, or (d) property, cash or other assets, excluding
dividends in the ordinary course or property distributed in lieu thereof at the
option of the Shareholders (any of such events being herein called a “Special
Distribution”) then, in each such case, the Exercise Price shall be adjusted
on the record date to the number that is the product of the Exercise Price in
effect immediately before the record date and the fraction: 

	 	(i) 	
      the numerator of which shall be the total number of
      Common Shares outstanding immediately before the record date multiplied by
      the Current Market Price on the day immediately before such record date,
      less the aggregate fair market value (as determined by the Directors,
      subject to prior written approval of any stock exchange or other
      regulatory body, if applicable, which determination, absent manifest
      error, shall be conclusive) of the shares or rights, options or warrants
      or evidence of indebtedness or property, cash or assets so distributed
      pursuant to such Special Distribution, and

	 	 	 
	 	(ii) 	
      the denominator of which shall be the total number of
      Common Shares outstanding immediately before the record date multiplied by
      such Current Market Price.

	 		
      The adjustment shall be made successively whenever a
      record date is fixed, and shall become effective immediately after the
      record date for the determination of Shareholders entitled to receive such
      Special Distribution, provided that if two or more such record dates or
      dates of announcement, as applicable, referred to in this subsection
      3.6(5) are fixed within a period of 35 trading days, the adjustment shall
      be made successively as if each of such record dates occurred on the
      earliest of such record dates. To the extent that any Special Distribution
      is not so made, the Exercise Price shall then be readjusted to the
      Exercise Price which would then be in effect if the record date had not
      been fixed or to the Exercise Price which would then be in effect based
      upon the shares or rights, options or warrants or evidences of
      indebtedness or property, cash or assets actually distributed, as the case
      may be.

	 	 	 
	 	(6) 	
      On any adjustment of the Exercise Price pursuant to
      subsection 3.6(2), (3) or (5), including any readjustment, the number of
      Common Shares purchasable on exercise of a Warrant shall be adjusted,
      effective at the same time as the adjustment of the Exercise Price, by
      multiplying the number of Common Shares so purchasable immediately before
      the adjustment by a fraction, the numerator of which shall be the Exercise
      Price in effect immediately before the adjustment and the denominator of
      which shall be the Exercise Price resulting from such
adjustment.

	 	 	 
	 	(7) 	
      Subject to the prior written approval of any stock
      exchange or other regulatory body, if applicable, if and whenever at any
      time from the date hereof to the Warrant Expiry Time there
  is:

- 24 - 

	 	(a) 	
      a reclassification or redesignation of the Common Shares
      outstanding, a change of Common Shares into other shares or securities, or
      any other capital reorganization of the Company except as described in
      subsections 3.6(2), (3) or (5),

	 	 	 
	 	(b) 	
      a consolidation, merger, arrangement or amalgamation of
      the Company with or into another body corporate or other entity resulting
      in a reclassification or redesignation of outstanding Common Shares or a
      change of Common Shares into other shares or securities, or

	 	 	 
	 	(c) 	
      a transaction whereby all or substantially all the
      Company’s undertaking and assets become the property of another
      corporation or other entity,

	 		
      (any of those events being herein called a “Corporate
      Reorganization”), a holder who thereafter exercises Warrants shall be
      entitled to receive and shall accept, for the Exercise Price then in
      effect, in lieu of the Common Shares (and any other securities to which
      Warrantholders are then entitled on the exercise of Warrants) to which he
      would otherwise have been entitled on exercise immediately before the
      Corporate Reorganization, the kind and amount of shares or other
      securities or property (including cash) that he would have been entitled
      to receive as a result of the Corporate Reorganization if, on the
      effective date thereof, he had been the holder of the number of Common
      Shares (and any other securities to which Warrantholders are then entitled
      on the exercise of Warrants) to which he would have been entitled on the
      exercise of the Warrant or Warrants immediately before the Corporate
      Reorganization.

	 	 	 
	 	(8) 	
      As a condition precedent to taking any action that would
      require an adjustment pursuant to subsection 3.6(7), the Company shall
      take all action that, in the opinion of counsel, is necessary in order
      that the Company, any successor or any successor to its assets and
      undertaking, shall be obligated to and may validly and legally issue as
      fully paid and non-assessable all the Common Shares or other shares or
      securities or property to which Warrantholders shall be entitled on the
      exercise of Warrants thereafter.

	 	 	 
	 	(9) 	
      Subject to the prior written consent of any stock
      exchange or other regulatory body, if applicable,, if necessary as a
      result of any Corporate Reorganization, appropriate adjustments shall be
      made in the application of the provisions set forth in this Article 3 with
      respect to the rights and interests of Warrantholders to the end that the
      provisions set forth in this Article 3 shall thereafter correspondingly be
      made applicable as nearly as may reasonably be possible to any shares or
      other securities or property thereafter deliverable on the exercise of a
      Warrant. Any such adjustment shall be made by and set forth in an
      amendment hereto approved by the Directors and by the Warrant Agent, each
      acting reasonably, and shall for all purposes, absent manifest error, be
      conclusively deemed to be an appropriate
adjustment.

- 25 - 

	 	(10) 	
      Subject to the prior written consent of any stock
      exchange or other regulatory body, if applicable, if the purchase price
      provided for in any right, warrant or option issued in connection with a
      Rights Offering is decreased, or the conversion price for Convertible
      Securities issued in connection with a Share Reorganization is increased,
      the Exercise Price shall forthwith be changed to whatever Exercise Price
      would have been obtained had the adjustment made in connection with the
      issuance of all such rights, warrants, options or Convertible Securities
      been made upon the basis of the purchase price as so decreased or the
      conversion price as so increased, provided that the provisions of this
      subparagraph shall not apply to any increase or decrease resulting from
      provisions in any rights, warrants, options or securities designed to
      prevent dilution if the increase or decrease shall not have been
      proportionately greater than the change, if any, in the Exercise Price to
      be made at the same time pursuant to the provisions of this
  section.

	 	 	 
	 	(11) 	
      Subject to the prior written consent of any stock
      exchange or other regulatory body, if applicable, if and whenever at any
      time before the Warrant Expiry Time the Company shall take any action
      affecting or relating to the Warrants, other than any action described in
      this section, which in the opinion of the Warrant Agent, acting reasonably
      and in good faith, based upon the advice of counsel, would prejudicially
      affect the rights of any holders of Warrants, the Exercise Price shall be
      adjusted in such manner, if any, and at such time, as the Warrant Agent,
      may in its sole discretion determine to be equitable in the circumstances
      to such holders.

	3.7 	Adjustment Rules for Exercise Price
  

     The following rules and
procedures shall be applicable to adjustments made pursuant to section 3.6: 

	 	(a) 	
      the adjustments and readjustments provided for in section
      3.6 shall be cumulative and, subject to paragraph (b), shall apply
      (without duplication) to successive issues, subdivisions, combinations,
      consolidations, distributions and other events that require an
      adjustment;

	 	 	 
	 	(b) 	
      no adjustment in the Exercise Price, or resulting
      adjustment in the number of Common Shares issuable on exercise of
      Warrants, shall be made unless the adjustment would result in a change of
      at least 0.1% in the prevailing Exercise Price and the number of Common
      Shares purchasable upon the exercise of the Warrants would change by at
      least one one-hundredth of a Share; provided, that any adjustment that
      would have been required to be made except for the provisions of this
      paragraph shall be carried forward and taken into account in the next
      adjustment;

	 	 	 
	 	(c) 	
      no adjustment shall be made in respect of an event
      described in subsection 3.6(2)(a) or subsections 3.6(3) or Error!
      Reference source not found. if the Warrantholders are entitled to
      participate in the event on the same terms, mutatis mutandis, as if
      they had exercised their Warrants immediately before the effective date of
      or record date for the event, such

- 26 - 

	 		
      participation being subject to the prior written consent
      of any stock exchange or other regulatory body, if applicable, if so
      required;

	 	 	 	 
	 	(d) 	
      for the purposes of subsections (2), (3), (4) and (5) of
      section 3.6, there shall be deemed not to be outstanding:

	 	 	 	 
	 		(i) 	
      any Share owned by or held for the account of the
      Company,

	 	 	 	 
	 		(ii) 	
      any Share owned by or held for the account of any
      Subsidiary of the Company;

	 	 	 	 
	 	(e) 	
      subject to the prior written consent of any stock
      exchange or other applicable regulatory body, any dispute that arises at
      any time with respect to any adjustment pursuant to this Indenture shall
      be conclusively determined (as between the Company, the Warrantholders,
      the Warrant Agent and all transfer agents and shareholders of the Company)
      by the auditor of the Company or, if the auditor of the Company is unable
      or unwilling to act, by such firm of independent chartered accountants as
      is selected by the Directors and is acceptable to the Warrant Agent and
      any determination by them, absent manifest error, shall be binding on the
      Company, the Warrantholders, the Warrant Agent and all transfer agents and
      Shareholders of the Company, and the Company shall notify the
      Warrantholders thereof;

	 	 	 	 
	 	(f) 	
      in the absence of a resolution of the Directors fixing
      the record date for an event referred to in section 3.6, the Company shall
      be deemed to have fixed as the record date therefor the date on which the
      event is effected or such other date as may be required by law;

	 	 	 	 
	 	(g) 	
      subject to the prior written consent of any stock
      exchange or other applicable regulatory body, if required as a condition
      precedent to the taking of any action which would require an adjustment in
      any of the rights under the Warrants, the Company shall take any action
      which, in the opinion of counsel to the Company, may be necessary in order
      that the Company, or any successor to the Company or successor to the
      undertaking or assets of the Company shall be obligated to and may validly
      and legally issue all the Common Shares or securities which the holders of
      the Warrants would be entitled to receive thereafter and to exercise such
      Warrants in accordance with the provisions hereof;

	 	 	 	 
	 	(h) 	
      subject to sections 7.2 and 7.3, the Warrant Agent shall
      not at any time be under any duty or responsibility to any Warrantholder
      to determine whether any facts exist which may require any adjustment
      contemplated by section 3.6, or with respect to the nature or extent of
      any such adjustment made, or with respect to the method employed in making
      same. The Warrant Agent shall not be accountable for the validity or value
      of any Common Shares delivered upon the exercise or deemed exercise
    of

- 27 - 

	 		
      any Warrants and shall not be responsible for any failure
      of the Company to make any payment, or to issue or deliver any securities
      or certificates represented hereby upon the exercise or deemed exercise of
      any Warrants; and

	 	 	 
	 	(i) 	
      if the Company, after the date hereof, shall take any
      action affecting any Common Shares which in the opinion of the Directors
      acting reasonably and in good faith would materially affect the rights of
      Warrantholders, the Exercise Price and number of Common Shares issuable
      upon exercise of Warrants shall be adjusted in such manner, if any, and at
      such time, as the Directors, in their sole discretion acting reasonably
      and in good faith, may determine to be equitable in the circumstances to
      adjust the rights of the Warrantholders to protect against dilution in
      accordance with the intent and purposes of section 3.6 and section 3.7.
      Failure of the taking of action by the Directors so as to provide for an
      adjustment in the Exercise Price before the effective date of any action
      by the Company affecting the Common Shares shall be conclusive evidence
      (absent manifest error) that the Directors have determined that it is
      equitable to make no adjustment in the circumstances, subject to the prior
      written consent of any stock exchange or other regulatory body, if
      applicable.

	3.8 	Postponement of Issue of Common Shares,
      etc. 

     In any case in which section 3.6
requires an adjustment to take effect immediately after the effective date of or
record date for an event, and a Warrant is exercised after that date and before
the consummation of the event (which in the case of rights, options and warrants
shall be the date the rights, options and warrants are issued), the Company may
postpone until consummation issuing to the Warrantholder such of the Common
Shares, securities or property to which he is entitled if the Warrant had been
exercised immediately before that date, provided however, that the Company shall
deliver to the Warrantholder an appropriate instrument evidencing such holder’s
right to receive such additional Common Shares, securities or property upon the
occurrence and consummation of such event and the right to receive any dividend
or other distribution in respect of such additional Common Shares, securities or
property declared in favour of the holders of record of Common Shares or of such
securities or property on or after that date or such later date as such holder
would, but for the provisions of this section, have become the holder of record
of such additional Common Shares or of such securities or property pursuant to
section 3.6. 

	3.9 	Notice of Certain Events

	 	(1) 	
      At least 14 business days before the effective date of or
      record date for any event referred to in section 3.6, other than a
      subdivision or consolidation of the Common Shares, that requires or might
      require an adjustment in the subscription rights pursuant to a Warrant,
      including the Exercise Price and the number of Common Shares purchasable
      on exercise of a Warrant, the Company shall:

- 28 - 

	 	(a) 	
      file with the Warrant Agent a certificate of the Company
      specifying the particulars of the event and, to the extent determinable,
      any adjustment required and the computation of the adjustment,
  and

	 	 	 
	 	(b) 	
      give notice to the Warrantholders of the particulars of
      the event and, to the extent, determinable, any adjustment
  required.

The notice need only set forth
particulars as have been determined at the date that notice is given. 

	 	(2) 	
      If any adjustment for which a notice pursuant to
      subsection (1) is given is not then determinable, the Company shall
      promptly after the adjustment is determinable:

	 	 	 	 
	 		(a) 	
      file with the Warrant Agent a certificate of the Company
      showing the computation of the adjustment, and

	 	 	 	 
	 		(b) 	
      give notice to the Warrantholders of the
    adjustment.

	 	 	 	 
	 	(3) 	
      In the event of a subdivision or consolidation of the
      Common Shares, the Company shall, before giving effect thereto, file with
      the Warrant Agent a certificate of the Company specifying the particulars
      of the subdivision or consolidation and specifying the number of Common
      Shares purchasable upon exercise of a Warrant after giving effect to such
      subdivision or consolidation.

	3.10 	No Fractional Common Shares
  

     The Company shall not, pursuant
to section 3.6 or under any other circumstances, be obligated to issue any
fraction of a Share upon the exercise of a Warrant or Warrants. To the extent
that the holder of one or more Warrants would otherwise have been entitled to
receive on the exercise or partial exercise thereof a fraction of a Share, that
holder may exercise such right in respect of the fraction only in combination
with another Warrant or Warrants that in the aggregate entitle the holder to
purchase a whole number of Common Shares. If not so exercised, the Company shall
not pay any amounts to the holder in satisfaction of the right to otherwise have
received a fraction of a Share. For greater clarity, if a holder of Warrants
would be entitled to a fractional Share pursuant to the Warrants, the number of
Common Shares issued shall be rounded down to the next whole number, and the
holder of such Warrants shall not be entitled to any cash or other compensation
in respect of such fraction. 

	3.11 	Reclassification, Reorganizations, etc.
    

	 	(1) 	
      In case of:

	 	 	 	 
	 		(a) 	
      any reclassifications or change of the Common Shares
      (other than a change in par value, or from par value to no par value, or
      from no par value to par value, or as a result of a subdivision or
      consolidation);

	 	 	 	 
	 		(b) 	
      any amalgamation, consolidation or merger of the Company
      with, or amalgamation, consolidation or merger of the Company into, any
      other

- 29 - 

	 		
      corporation (other than an amalgamation, consolidation or
      merger in which the Company is the continuing corporation and which does
      not result in any reclassification or change, other than as aforesaid, of
      the Common Shares);

	 	 	 
	 	(c) 	
      a reorganization of the Company; or

	 	 	 
	 	(d) 	
      any sale, transfer or other disposition of all or
      substantially all of the assets of the
Company,

	 		
      the Company or the corporation formed by the amalgamation
      or the corporation into which the Company shall have been merged or been
      consolidated or the reorganized Company, or the corporation which shall
      have acquired such assets, as the case may be, shall execute and deliver
      to the Warrant Agent a supplemental indenture providing that the holder of
      each Warrant then outstanding shall have the right thereafter (until the
      Warrant Expiry Time) to exercise Warrants only into the kind and amount of
      shares and other securities and property (including cash) receivable upon
      such reclassification, change, amalgamation, consolidation, merger,
      reorganization, sale, transfer or other disposition by a holder of the
      number of Common Shares which were purchasable upon the exercise of the
      Warrants had the Warrants been exercised immediately before the
      reclassification, change, amalgamation, consolidation, merger,
      reorganization, sale, transfer or other disposition.

	 	 	 
	 	(2) 	
      The supplemental indenture shall provide for adjustments
      which shall be as nearly equivalent as may be practicable to the
      adjustments provided for in this Article.

	 	 	 
	 	(3) 	
      The provisions of this section shall apply to successive
      reclassifications, changes, amalgamations, consolidations, mergers,
      reorganizations, sales, transfers or other
dispositions.

ARTICLE 4 
COVENANTS OF THE COMPANY 

	4.1 	General Covenants 

     The Company represents, warrants
and covenants with the Warrant Agent for the benefit of the Warrantholders that:

	 	(a) 	
      it shall at all times maintain its existence, carry on
      and conduct its business in a proper, efficient and business-like manner
      and, in accordance with good business practice, keep or cause to be kept
      proper books of account in accordance with generally accepted accounting
      principles;

	 	 	 
	 	(b) 	
      it is duly authorized to create and issue the Warrants to
      be issued hereunder and the Warrant Certificates when issued and certified
      as herein provided shall be legal, valid, binding and enforceable
      obligations of the Company;

- 30 - 

	 	(c) 	
      subject to the provisions of this Indenture, it shall
      cause the Common Shares from time to time subscribed for and purchased
      pursuant to the exercise of Warrants and the certificates representing
      such Common Shares to be duly issued and delivered in accordance with the
      Warrants and the terms hereof;

	 	 	 	 
	 	(d) 	
      at all times while any Warrants are outstanding it shall
      reserve and there shall remain unissued and conditionally allotted out of
      its authorized capital a number of Common Shares sufficient to enable the
      Company to meet its obligations to issue Common Shares on the exercise of
      Warrants outstanding hereunder from time to time;

	 	 	 	 
	 	(e) 	
      upon the exercise by the holder of any Warrant of the
      right of purchase provided for therein and herein and upon payment of the
      Exercise Price applicable thereto for each Share in respect of which the
      right of purchase is so exercised, all Common Shares issuable upon the
      exercise shall be issued as fully paid and non-assessable;

	 	 	 	 
	 	(f) 	
      it shall use its commercial best efforts to ensure that
      the Common Shares issuable upon exercise of the Warrants shall be quoted
      or listed for trading on any over the counter marker or stock exchange on
      which the Common Shares are then quoted or listed and posted for trading
      upon their issue;

	 	 	 	 
	 	(g) 	
      it shall file within the time required by 1934
  Act:

	 	 	 	 
	 		(i) 	
      annual reports on Form 10-K or Form 10-KSB, as
      applicable;

	 	 	 	 
	 		(ii) 	
      quarterly reports on Form 10-Q or Form 10-QSB, as
      applicable;

	 	 	 	 
	 		(iii) 	
      current reports on Form 8-K; and

	 	 	 	 
	 		(iv) 	
      such other reports and documents as may be required
      thereunder.

	 	 	 	 
	 	(h) 	
      the issue of the Warrants does not and shall not result
      in a breach by the Company of, and does not and shall not create a state
      of facts which, after notice or lapse of time or both, shall result in a
      breach by the Company of any applicable laws, and does not and shall not
      conflict with any of the terms, conditions or provisions of the memorandum
      of the Company or the articles or resolutions of the Company or any trust
      indenture, loan agreement or any other agreement or instrument to which
      the Company is a party or by which it is contractually bound on the date
      of this Indenture;

	 	 	 	 
	 	(i) 	
      it shall do, execute, acknowledge and deliver or cause to
      be done, executed, acknowledged or delivered all other acts, deeds and
      assurances in law as the Warrant Agent may reasonably require for better
      accomplishing and effecting the intentions and provisions of this
      Indenture;

- 31 - 

	 	(j) 	
      it shall duly and punctually perform all of its covenants
      contained in this Indenture governing the due authorization, creation and
      issue of the Warrants and the Warrant Certificates, and the reservation,
      allotment and issuance of the Common Shares issuable on the exercise
      thereof;

	 	 	 
	 	(k) 	
      it shall make all requisite filings, including filings
      with appropriate securities commissions and stock exchanges, in connection
      with the conversion of the Warrants and the issue of the Common Shares in
      connection therewith;

	 	 	 
	 	(l) 	
      with respect to any notices to be given or other acts to
      be performed or which may be given or performed by the Warrant Agent under
      or pursuant to this Indenture, the Company shall provide to the Warrant
      Agent in a timely manner all such information and documents as the Warrant
      Agent may reasonably request and are within the knowledge or control of
      the Company in order to verify the factual circumstances relating to such
      notices or acts and, if requested, such notices or acts and, if requested,
      such information and documents shall be certified as correct by an officer
      of the Company; and

	 	 	 
	 	(m) 	
      generally, it shall well and truly perform and carry out
      all of the acts or things to be done by it as provided in this Indenture
      and shall not take any action which might reasonably be expected to
      deprive holders of Warrants of their rights to acquire Common Shares on
      the exercise thereof.

	4.2 	Securities Qualification Requirements
  

	 	(1) 	
      If, in the opinion of either counsel to the Warrant Agent
      or counsel to the Company, any instrument is required to be filed with, or
      any permission, order or ruling is required to be obtained from, any
      securities administrator or any other step is required under any federal
      or provincial law of Canada or any other Qualifying Jurisdiction before
      the Common Shares may be issued or delivered to an initial Warrantholder
      on the exercise of the Warrants or resold by such Warrantholder, the
      Company covenants that it shall use its commercial best efforts to file
      such instrument, obtain such permission, order or ruling or take all such
      other actions, at its expense, as is required or appropriate in the
      circumstances.

	 	 	 
	 	(2) 	
      The Company shall give written notice of the issue of
      Common Shares pursuant to the exercise of Warrants, in such detail as may
      be required, to each securities administrator in each jurisdiction in
      which there is legislation requiring the giving of any such
  notice.

	4.3 	Warrant Agent’s Remuneration and
      Expenses 

     The Company shall pay to the
Warrant Agent from time to time such reasonable remuneration for its services
hereunder as may be agreed upon between the Company and the 

- 32 - 

Warrant Agent and shall pay or reimburse the Warrant Agent upon
its request for all reasonable expenses, disbursements and advances properly
incurred or made by the Warrant Agent in the administration or execution of the
trusts hereby created (including the reasonable compensation and the
disbursements of its counsel and all other advisors and assistants not regularly
in its employ), both before any default hereunder and thereafter until all
duties of the Warrant Agent shall be finally and fully performed, except any
such expense, disbursement or advance as may arise from the gross negligence or
fraud of the Warrant Agent, its servants or its agents or other advisors or
assistants aforesaid. 

	4.4 	Notice to Warrantholders of Certain
      Events 

     The Company covenants with the
Warrant Agent for the benefit of the Warrant Agent and the Warrantholders that,
so long as any of the Warrants are outstanding, it shall not: 

	 	(a) 	
      pay any dividend payable in shares of any class to the
      holders of its Common Shares or make any other distribution (other than a
      cash distribution made as a dividend out of retained earnings or
      contributed surplus legally available for the payment of dividends) to the
      holders of its Common Shares;

	 	 	 
	 	(b) 	
      offer to the holders of its Common Shares rights to
      subscribe for or to purchase any Common Shares or shares of any class or
      any other securities, rights, warrants or options;

	 	 	 
	 	(c) 	
      make any repayment of capital on, or distribution of
      evidences of indebtedness on any of its assets (excluding cash dividends)
      to the holders of, its Common Shares;

	 	 	 
	 	(d) 	
      amalgamate, consolidate or merge with any other person or
      sell or lease the whole or substantially the whole of its assets or
      undertaking;

	 	 	 
	 	(e) 	
      effect any subdivision, redivision, consolidation,
      reduction or reclassification of its Common Shares; or

	 	 	 
	 	(f) 	
      liquidate, dissolve or wind-up,

unless, in each such case, the Company shall have given notice,
in the manner specified in section 2.12, to each Warrantholder, of the action
proposed to be taken and the date on which: (i) the books of the Company shall
close or a record shall be taken for such dividend, repayment, distribution,
subscription rights or other rights, warrants or securities; or (ii) such
subdivision, redivision, consolidation, reduction, reclassification,
amalgamation, merger, sale or lease, dissolution, liquidation or winding-up
shall take place, as the case may be, provided that the Company shall only be
required to specify in the notice those particulars of the action as shall have
been fixed and determined at the date on which the notice is given. The notice
shall also specify the date as of which the holders of Common Shares of record
shall participate in the dividend, repayment, distribution, subscription of
rights or other rights, warrants or securities, subdivision, redivision,
consolidation, reduction, reclassification, or shall be entitled to exchange
their Common Shares for securities or other property deliverable upon such
reclassification, 

- 33 - 

amalgamation, merger, sale or lease, other disposition,
dissolution, liquidation or winding-up, as the case may be. The notice shall be
given, with respect to the actions described above not less than 14 business
days before the record date or the date on which the Company’s transfer books
are to be closed with respect thereto. 

	4.5 	Closure of Share Transfer Books
  

     The Company further covenants and
agrees that it shall not during the period of any notice given under section 4.4
close its share transfer books or take any other corporate action which might
deprive the Warrantholders of the opportunity of exercising their Warrants;
provided that nothing contained in this section shall be deemed to affect the
right of the Company to do or take part in any of the things referred to in
section 4.4 or to pay any cash dividends on the shares of any class or classes
in its capital from time to time outstanding. 

	4.6 	Performance of Covenants by Warrant
      Agent 

     If the Company shall fail to
perform any of its covenants contained in this Indenture, the Warrant Agent may
notify the Warrantholders of the failure on the part of the Company or may
itself perform any of the said covenants capable of being performed by it, but
shall be under no obligation to do so or to notify the Warrantholders. All sums
expended or advanced by the Warrant Agent in so doing shall be repayable as
provided in section 4.3. No performance, expenditure or advance by the Warrant
Agent shall be deemed to relieve the Company of any default hereunder. 

ARTICLE 5 
MEETINGS OF WARRANTHOLDERS 

	5.1 	Right to Convene Meeting

	 	(1) 	
      The Warrant Agent or the Company may at any time and from
      time to time, and the Warrant Agent shall on receipt of a requisition in
      writing signed by the holders of Warrants sufficient to purchase not less
      than 15% of the aggregate number of Common Shares which would be purchased
      under the Warrants then outstanding and upon being indemnified and funded
      to its reasonable satisfaction by the Company or by the Warrantholders
      signing the requisition against the costs which may be incurred in
      connection with the calling and holding of the meeting, convene a meeting
      of the Warrantholders.

	 	 	 
	 	(2) 	
      If the Warrant Agent fails to convene a meeting within
      seven days after receipt of the requisition and indemnity referred to in
      subsection 5.1(1), the Company or the Warrantholders, as the case may be,
      may convene the meeting.

	 	 	 
	 	(3) 	
      Every meeting of Warrantholders shall be held in the City
      of Vancouver, British Columbia or at such other place as the Warrant Agent
      shall determine.

- 34 - 

	5.2 	Notice 

	 	(1) 	
      At least ten business days’ prior notice specifying the
      place, day and hour of meeting and the general nature of business to be
      transacted shall be given before any meeting of Warrantholders but it
      shall not be necessary to specify in the notice the terms of any
      resolution to be proposed.

	 	 	 
	 	(2) 	
      Notice of a meeting of Warrantholders shall be given to
      the Warrantholders in the manner provided in section 2.12. Notice shall be
      given to the Company unless the meeting is convened by the Company and to
      the Warrant Agent unless the meeting is convened by the Warrant Agent. Any
      accidental omission in the notice of a meeting shall not invalidate any
      resolution passed at the meeting.

	5.3 	Chairman 

     The person, who need not be a
Warrantholder, nominated in writing by the Warrant Agent shall be entitled to
act as the chairman at any meeting of Warrantholders, but if no such person is
nominated or if the person nominated shall not be present within 15 minutes
after the time appointed for holding the meeting, the Warrantholders present in
person or by proxy shall choose a person present to be chairman. 

	5.4 	Quorum 

	 	(1) 	
      At any meeting of the Warrantholders a quorum shall
      consist of two or more Warrantholders present in person or by proxy
      holding not less than 25% of the Warrants then outstanding.

	 	 	 
	 	(2) 	
      If a quorum of the Warrantholders is not present within
      half an hour from the time fixed for holding any meeting, the meeting, if
      convened by Warrantholders or by a requisition of Warrantholders, shall be
      dissolved; but if otherwise convened, the meeting shall stand adjourned
      without notice to the same day in the next week following (unless that day
      is not a business day, in which case the meeting shall stand adjourned to
      the next business day thereafter) at the same time and place. At the
      adjourned meeting, the Warrantholders present in person or by proxy shall
      form a quorum and may transact the business for which the meeting was
      originally convened notwithstanding that they may not hold 25% of the
      Warrants then outstanding.

	5.5 	Power to Adjourn 

     The chairman of any meeting at
which a quorum of Warrantholders is present may, with the consent of the
meeting, adjourn any meeting and no notice of the adjournment need be given
except such notice, if any, as the meeting may prescribe. 

	5.6 	Show of Hands 

     Every question submitted to a meeting
other than a question to be resolved by an Extraordinary Resolution shall be
decided in the first place by a majority of the votes given on a 

- 35 - 

show of hands and unless a poll is duly demanded as herein
provided, a declaration by the chairman that a resolution has been carried or
carried unanimously or by a particular majority or lost or not carried by a
particular majority shall be conclusive evidence of that fact. 

	5.7 	Poll 

     On every Extraordinary Resolution
to be passed at a meeting and on any other question submitted to a meeting when
directed by the chairman or when demanded by one or more of the Warrantholders
acting in person or by proxy, a poll shall be taken in the manner as the
chairman shall direct. Questions other than those to be resolved by
Extraordinary Resolution shall, if a poll be taken, be decided by the votes of
the holders of a majority of the Warrants represented at the meeting and voted
on the poll. If at any meeting a poll is so demanded as aforesaid on the
election of a chairman or on a question of adjournment, it shall be taken
forthwith. If at any meeting a poll is so demanded on any other question, or an
Extraordinary Resolution is to be voted upon, a poll shall be taken in such
manner and either at once or after an adjournment as the chairman directs. The
result of a poll shall be deemed to be the decision of the meeting at which the
poll was demanded and shall be binding on all holders of Warrants. 

	5.8 	Voting 

     On a show of hands, every person
who is present and entitled to vote, whether as a Warrantholder or as proxy for
one or more absent Warrantholders or both, shall have one vote. On a poll, each
Warrantholder present in person or represented by a proxy duly appointed by
instrument in writing shall be entitled to one vote in respect of each Share
purchasable under Warrants of which he shall then be the holder. A proxy need
not be a Warrantholder. The chairman of any meeting shall be entitled both on a
show of hands and on a poll to vote in respect of the Warrants, if any, held or
represented by him but shall not be entitled to a casting vote in the case of an
equality of votes. 

	5.9 	Persons Entitled to be Present
  

     The Company and the Warrant Agent
by their respective officers and directors and the counsel of the Company and
the Warrant Agent may attend any meeting of Warrantholders but shall have no
vote as such. 

	5.10 	Regulations 

     The Warrant Agent, or the Company
with the approval of the Warrant Agent, may from time to time make or vary such
regulations as it shall think fit providing for and governing the following:

	 	(a) 	
      the issue of voting certificates:

	 	 	 	 
	 		(i) 	
      by any bank, trust company or other depository approved
      by the Warrant Agent, certifying that specified Warrants have been
      deposited with it by a named holder and shall remain on deposit until
      after the meeting; or

- 36 - 

	 	(ii) 	
      by any bank, trust company, insurance company,
      governmental department or agency approved by the Warrant Agent,
      certifying that it is the holder of specified Warrants and shall continue
      to hold the same until after the meeting,

which voting certificates shall
entitle the holders named therein to be present and vote at any meeting and at
any adjournment thereof or to appoint a proxy or proxies to represent them and
vote for them at any meeting and at any adjournment thereof, in the same manner
and with the same effect as though the holders named in the voting certificates
were the actual holders of the specified Warrants; 

	 	(b) 	
      the form of the instrument appointing a proxy (which
      shall be in writing), the manner in which the same shall be executed and
      the form of any authority under which a person executes a proxy on behalf
      of a Warrantholder;

	 	 	 
	 	(c) 	
      the deposit certificates, instruments appointing proxies
      or authorities at such place or places as the Warrant Agent (or the
      Company or Warrantholders in case the meeting is convened by the Company
      or the Warrantholders, as the case may be) may in the notice convening the
      meeting direct and the time (if any) before the holding of the meeting or
      adjourned meeting at which the same shall be deposited;

	 	 	 
	 	(d) 	
      the deposit of voting certificates or instruments
      appointing proxies at some place or places other than the place at which
      the meeting is to be held and for particulars of the voting certificates
      or instruments appointing proxies to be cabled or telegraphed or notified
      by other means of communication before the meeting to the Company or to
      the Warrant Agent and for the voting of voting certificates and proxies so
      deposited as if the voting certificates or the instruments themselves were
      produced at the meeting or deposited at any other place required pursuant
      to subsection (c); and

	 	 	 
	 	(e) 	
      generally for the calling of meetings of Warrantholders
      and the conduct of business thereat.

Any regulations so made shall be binding and effective and
votes given in accordance therewith shall be valid and shall be counted. Except
as the regulations may provide, the only persons who shall be recognized at any
meeting as the holders of any Warrants, or as entitled to vote or to be present
at the meeting in respect thereof, shall be registered Warrantholders and
persons whom registered Warrantholders have by instrument in writing duly
appointed as their proxies. 

	5.11 	Certain Powers Exercisable by Extraordinary
      Resolution 

     In addition to all other powers
conferred on them by the other provisions of this Indenture or by law, but
subject to obtaining the approval of any stock exchange or other 

- 37 - 

regulatory body, if applicable, the Warrantholders shall have
the following powers, exercisable from time to time by Extraordinary Resolution:

	 	(a) 	
      power to agree to any amendment, modification,
      abrogation, alteration, compromise or arrangement of the rights of
      Warrantholders or the Warrant Agent in that capacity or on behalf of the
      Warrantholders against the Company whether the rights arise under this
      Indenture or otherwise;

	 	 	 
	 	(b) 	
      power to agree to any change in or omission from the
      provisions of the Warrant Certificate and this Indenture or any ancillary
      or supplemental instrument which may be agreed to by the Company and to
      authorize the Warrant Agent to concur in and execute any ancillary or
      supplemental indenture embodying any change or omission;

	 	 	 
	 	(c) 	
      power to require the Warrant Agent, subject to compliance
      with section 7.3, to enforce any of the obligations of the Company under
      this Indenture or any supplemental instrument or to enforce any of the
      rights of the Warrantholders in any manner specified in an Extraordinary
      Resolution or to refrain from enforcing any such covenant or right, upon
      the Warrant Agent being furnished with such funding and indemnity as it
      may in its discretion reasonably require;

	 	 	 
	 	(d) 	
      power to remove the Warrant Agent or its successor or
      successors in office and to appoint a new Warrant Agent or Warrant Agents
      to take the place of the Warrant Agent or Warrant Agents so
  removed;

	 	 	 
	 	(e) 	
      power to waive and direct the Warrant Agent to waive any
      default on the part of the Company in complying with any provision of this
      Indenture either unconditionally or upon conditions specified in the
      Extraordinary Resolution;

	 	 	 
	 	(f) 	
      power to restrain any Warrantholder from taking or
      instituting or continuing any suit, action or proceeding against the
      Company for the enforcement of any of the obligations of the Company under
      this Indenture or to enforce any right of the Warrantholders;
and

	 	 	 
	 	(g) 	
      power to amend, alter or repeal any Extraordinary
      Resolution previously passed or consented to by
  Warrantholders.

	5.12 	Definition of “Extraordinary Resolution”
    

     The expression “Extraordinary
Resolution” when used in this Indenture means a resolution passed at a
meeting (including an adjourned meeting) of Warrantholders duly convened and
held in accordance with the provisions of this Indenture at which a quorum is
present and carried by the affirmative vote of not less than 66 2/3% of the
votes given on a poll or by the consent in writing, which may be in one or more
instruments, of the holders of not less than 66 2/3% of the Warrants then
outstanding. 

- 38 - 

	5.13 	Resolutions Binding on all
      Warrantholders 

     Every resolution and every
Extraordinary Resolution duly passed at a meeting of the Warrantholders duly
convened and held or any consent in writing having the effect of an
Extraordinary Resolution shall be binding upon all the Warrantholders (including
their successors and assigns) whether or not present or represented or voting at
the meeting or signatories to the consent, as the case may be, and each of the
Warrantholders and the Warrant Agent, subject to the provisions for its
indemnity contained in this Indenture, shall be bound to give effect thereto.

	5.14 	Holdings by Company Disregarded
  

     In determining whether the
requisite number of Warrantholders are present for the purpose of obtaining a
quorum or have voted or consented to any resolution, Extraordinary Resolution,
consent, waiver or other action under this Indenture, Warrants owned by the
Company or any Subsidiary of the Company shall be deemed to be not outstanding.

	5.15 	Minutes 

     Minutes of all resolutions and
proceedings at every meeting of Warrantholders shall be made and duly entered in
books to be provided for that purpose by the Warrant Agent at the expense of the
Company and any minutes if purporting to be signed by the chairman of the
meeting, or by the chairman of the next succeeding meeting of Warrantholders,
shall be prima facie evidence of the matters therein stated and, until
the contrary is proved, every meeting for which minutes have been made shall be
deemed to have been duly convened and held and all resolutions passed or
proceedings taken thereat to have been duly passed and taken. 

	5.16 	Powers Cumulative 

     Any one or more of the powers or
combination of the powers in this Indenture exercisable by the Warrantholders by
Extraordinary Resolution or otherwise may be exercised from time to time and the
exercise of any one or more of the powers or any combination of powers from time
to time shall not be deemed to exhaust the rights of the Warrantholders to
exercise the same or any other power or powers or combination of powers then or
any power or powers or combinations of powers thereafter. 

	5.17 	Instruments in Writing

     All actions that may be taken and
all powers that may be exercised by the Warrantholders at a meeting held as
hereinbefore in this Article provided may also be taken and exercised by
Warrantholders entitled to acquire 66 2/3% of the aggregate number of Common
Shares that can be acquired pursuant to all the then outstanding Warrants by an
instrument in writing signed in one or more counterparts by Warrantholders in
person or by attorney duly appointed in writing and the expression “resolution”
or “Extraordinary Resolution” when used in this Indenture shall include an
instrument so signed. 

- 39 - 

ARTICLE 6 
SUPPLEMENTAL INDENTURES AND SUCCESSOR
COMPANIES 

	6.1 	Provision for Supplemental Indenture for
      Certain Purposes 

     From time to time the Company and
the Warrant Agent may, subject to the provisions of this Indenture and the
obtaining of the prior written consent of any stock exchange or other regulatory
body, if applicable, and shall, when so directed by this Indenture, execute and
deliver by their proper officers or directors, as the case may be, indentures or
instruments supplemental hereto, which thereafter shall form part hereof, for
any one or more or all of the following purposes: 

	 	(a) 	
      adding hereto such additional covenants and enforcement
      provisions as in the opinion of counsel are necessary or advisable and are
      not in the opinion of the Warrant Agent, based on the advice of counsel,
      prejudicial to the interest of the Warrantholders as a group;

	 	 	 
	 	(b) 	
      giving effect to any Extraordinary Resolution passed as
      provided in Article 5;

	 	 	 
	 	(c) 	
      making any modification in the form of Warrant
      Certificate which, in the opinion of the Warrant Agent, based on the
      advice of counsel, does not affect the substance thereof;

	 	 	 
	 	(d) 	
      making any additions to, deletions from or alterations of
      the provisions of this Indenture which, in the opinion of the Warrant
      Agent based on the advice of counsel, do not materially and adversely
      affect the interests of the Warrantholders and are necessary or advisable
      in order to incorporate, reflect or comply with any Applicable
      Legislation;

	 	 	 
	 	(e) 	
      modifying any of the provisions of this Indenture or
      relieving the Company from any of the obligations, conditions or
      restrictions herein contained, provided that no such modification or
      relief shall be or become operative or effective if in the opinion of the
      Warrant Agent, based on the advice of counsel, the modification or relief
      materially impairs any of the rights of the Warrantholders, as a group, or
      of the Warrant Agent, and provided that the Warrant Agent may in its sole
      discretion decline to enter into any supplemental indenture which in its
      opinion may not afford adequate protection to the Warrant Agent when the
      same shall become operative;

	 	 	 
	 	(f) 	
      for any other purpose not inconsistent with the terms of
      this Indenture, including the correction or rectification of any
      ambiguities, defective provisions, errors or omissions herein, provided
      that in the opinion of the Warrant Agent, based on the advice of counsel,
      the rights of the Warrant Agent or of the Warrantholders, as a group, are
      in no way prejudiced thereby; and

- 40 - 

	 	(g) 	
      setting forth any adjustments resulting from the
      application of the provisions of Article 3
hereof.

	6.2 	Successor Companies 

     Subject to section 3.9, nothing
in this Indenture shall prevent any consolidation, reorganization, amalgamation,
arrangement or merger of the Company with or into any other body corporate,
bodies corporate, or person, or a conveyance or transfer of all or substantially
all the property and assets of the Company as an entirety to any body corporate
or person lawfully entitled to acquire and operate the same; provided, however,
that the body corporate formed by such consolidation, amalgamation or
arrangement or into which such merger shall have been made or the person which
acquires by conveyance or transfer all or substantially all the property and
assets of the Company as an entirety shall execute and deliver to the Warrant
Agent before or contemporaneously with such consolidation, reorganization,
amalgamation, arrangement, merger, conveyance or transfer and as a condition
precedent thereto, an agreement supplemental hereto wherein the due and punctual
performance and observance of all the covenants and conditions of this Indenture
to be performed or observed by the Company shall be assumed by such successor
body corporate or person. The Warrant Agent shall be entitled to receive and
shall be fully protected in relying upon an opinion of counsel that any such
consolidation, reorganization, amalgamation, arrangement, merger, conveyance or
transfer and any supplemental agreement executed in connection therewith,
complies with the provisions of this section. 

	6.3 	Successor Body Corporate Substituted
  

     Subject to section 3.9, in case
the Company, pursuant to section 6.2 hereof, shall be consolidated, amalgamated,
reorganized, arranged or merged with or into any other body corporate or bodies
corporate or person or shall convey or transfer all or substantially all of the
property and assets of the Company as an entirety to another body corporate or
person, the successor body corporate or person formed by such consolidation,
reorganization, arrangement or amalgamation or into which the Company shall have
been merged or which shall have received a conveyance or transfer as aforesaid
shall succeed to and be substituted for the Company hereunder with the same
effect as nearly as may be possible as if it had been named herein as the party
of the first part. Such changes may be made in the Warrants as may be
appropriate in view of such consolidation, amalgamation, reorganization,
arrangement, merger, conveyance or transfer. 

ARTICLE 7 
CONCERNING THE WARRANT AGENT 

	7.1 	Rights and Duties of Warrant Agent
  

	 	(1) 	
      In the exercise of the rights, duties and obligations
      prescribed or conferred by the terms of this Indenture, the Warrant Agent
      shall act honestly and in good faith with a view to the best interests of
      the Warrantholders and shall exercise that degree of care, diligence and
      skill that a reasonably prudent transfer agent would exercise in
      comparable circumstances.

- 41 - 

	 	(2) 	
      No provision of this Indenture shall be construed to
      relieve the Warrant Agent from liability for its own gross negligence or
      fraud.

	 	 	 
	 	(3) 	
      The obligation of the Warrant Agent to commence or
      continue any action, actions or proceeding for the purpose of enforcing
      any rights of the Warrant Agent or the Warrantholders hereunder shall be
      conditional upon the Warrantholders furnishing, when required by notice in
      writing by the Warrant Agent, sufficient funds to commence or continue
      such act, action or proceeding and an indemnity reasonably satisfactory to
      the Warrant Agent to protect and hold harmless the Warrant Agent against
      the costs, charges and expenses and liabilities to be incurred thereto and
      any loss and damage it may suffer by reason thereof.

	 	 	 
	 	(4) 	
      No provision of this Indenture shall require the Warrant
      Agent to expend or risk its own funds or otherwise incur financial
      liability in the performance of any of its duties or in the exercise of
      any of its rights or powers.

	 	 	 
	 	(5) 	
      The Warrant Agent may, before commencing or at any time
      during the continuance of such act, action or proceeding require the
      Warrantholders at whose instance it is acting to deposit with the Warrant
      Agent the Warrant Certificates held by them, for which Warrant
      Certificates the Warrant Agent shall issue
receipts.

	7.2 	Evidence, Experts and Advisors
  

	 	(1) 	
      In addition to the reports, certificates, opinions and
      other evidence required by this Indenture, the Company shall furnish to
      the Warrant Agent such additional evidence of compliance with any
      provision hereof and in such form as is prescribed by Applicable
      Legislation or as the Warrant Agent reasonably requires by written notice
      to the Company.

	 	 	 
	 	(2) 	
      In the exercise of any right or duty hereunder the
      Warrant Agent, if it is acting in good faith, may rely, as to the truth of
      any statement or the accuracy of any opinion expressed therein, on any
      statutory declaration, opinion, report, certificate or other evidence
      furnished to the Warrant Agent pursuant to a provision hereof or
      Applicable Legislation or pursuant to a request of the Warrant
    Agent.

	 	 	 
	 	(3) 	
      Whenever Applicable Legislation requires that evidence
      referred to in subsection 7.2(1) be in the form of a statutory
      declaration, the Warrant Agent may accept the statutory declaration in
      lieu of a certificate of the Company required by any provision
    hereof.

	 	 	 
	 	(4) 	
      Any statutory declaration may be made by one or more
      officers or Directors of the Company.

	 	 	 
	 	(5) 	
      Proof of the execution of an instrument in writing by a
      Warrantholder may be made by the certificate of a notary public, or other
      officer with similar powers, that the person signing the instrument
      acknowledged to him the execution thereof,

- 42 - 

	 		
      or by an affidavit of a witness to the execution, or in
      any other manner that the Warrant Agent considers adequate.

	 	 	 
	 	(6) 	
      The Warrant Agent may employ or retain such counsel,
      accountants, engineers, appraisers or other experts or advisers as it
      reasonably requires for the purpose of discharging its duties hereunder
      and may pay reasonable remuneration for all services so performed by any
      of them payable by the Company in accordance with section 4.3, without
      taxation of costs of any counsel and shall not be responsible for any
      misconduct or negligence on the part of any of them who has been selected
      with due care by the Warrant Agent.

	 	 	 
	 	(7) 	
      The Warrant Agent may as a condition precedent to any
      action to be taken by it under this Indenture require such opinions,
      statutory declarations, reports, certificates or other evidence as it,
      acting reasonably, considers necessary or advisable in the
      circumstances.

	7.3 	Documents, Moneys, etc. Held by Warrant
      Agent 

	 	(1) 	
      Any security, document of title or other instrument that
      may be at any time held by the Warrant Agent subject to the terms hereof
      may be placed in the deposit vaults of the Warrant Agent or of any
      Schedule I Canadian chartered bank or deposited for safekeeping with such
      bank.

	 	 	 	 
	 	(2) 	
      Unless herein otherwise expressly provided, any money
      held pending the application or withdrawal thereof under any provision of
      this Indenture may be deposited in the name of the Warrant Agent in any
      Schedule I Canadian chartered bank at the rate of interest (if any) then
      current on similar deposits or:

	 	 	 	 
	 		(a) 	
      deposited in the deposit department of the Warrant Agent
      or of any other loan or trust company authorized to accept deposits under
      the laws of Canada or a province thereof, or

	 	 	 	 
	 		(b) 	
      with the consent of the Company may be invested in
      securities issued or guaranteed by the Government of Canada or a province
      thereof or in obligations, maturing not more than one year from the date
      of investment, of any Schedule I Canadian chartered bank or loan or trust
      company.

	 	 	 	 
	 	(3) 	
      Unless the Company is in default hereunder, all interest
      or other income received by the Warrant Agent in respect of deposits in
      investment shall belong to the Company.

	7.4 	Action by Warrant Agent to Protect
      Interests 

     The Warrant Agent shall have
power to institute and to maintain such actions and proceedings as it may
consider necessary or expedient to preserve or protect its interests and the
interests of the Warrantholders. 

- 43 - 

	7.5 	Warrant Agent not Required to give
      Security 

     The Warrant Agent shall not be
required to give any bond or security in respect of the execution of the terms
and powers of this Indenture or otherwise in respect of the premises. 

	7.6 	Protection of Warrant Agent
  

     By way of supplement to the
provisions of any law for the time being relating to the Warrant Agent, it is
expressly declared and agreed that: 

	 	(a) 	
      the Warrant Agent shall not be liable for or by reason of
      any representations, statements of fact or recitals in this Indenture
      (except the representation contained in section 7.8 and by virtue of the
      countersignature of the Warrant Agent on the Warrant Certificates) or
      required to verify the same, but all such representations, statements or
      recitals are and shall be deemed to be made by the Company;

	 	 	 
	 	(b) 	
      the Warrant Agent shall not be obligated to see or to
      require evidence of registration (a filing or renewal thereof) of this
      Indenture or any instrument ancillary or supplemental hereto;

	 	 	 
	 	(c) 	
      the Warrant Agent shall not be bound to give notice to
      any person or persons of the execution hereof;

	 	 	 
	 	(d) 	
      the Warrant Agent shall not incur any liability or
      responsibility whatever or be in any way responsible for the consequence
      of any breach on the part of the Company of any obligation herein
      contained or of any acts of the directors, officers, employees or agents
      of the Company;

	 	 	 
	 	(e) 	
      the Company shall indemnify and hold harmless the Warrant
      Agent and its employees, directors and officers from and against any and
      all liabilities, losses, costs, claims, actions or demands whatsoever
      which may be brought against the Warrant Agent or which it may suffer or
      incur as a result of or arising out of the performance of its duties and
      obligations under this Indenture, save only in the event of the gross
      negligence or fraud of the Warrant Agent. It is understood and agreed that
      this indemnification shall survive the termination or discharge of this
      Indenture or the resignation of the Warrant Agent;

	 	 	 
	 	(f) 	
      the Warrant Agent shall not be bound to give any notice
      or to do or take any act, action or proceeding by virtue of the powers
      conferred on it hereby unless and until it shall have been required so to
      do under the terms hereof nor shall the Warrant Agent be required to take
      notice of any default of the Company hereunder unless and until notified
      in writing of the default (which notice must specify the nature of the
      default) and, in the absence of that notice, the Warrant Agent may for all
      purposes hereunder conclusively assume that no default by the Company
      hereunder has occurred. The giving of any notice shall in no way limit the
      discretion of

- 44 - 

	 		
      the Warrant Agent hereunder as to whether any action is
      required to be taken in respect of any default hereunder;

	 	 	 
	 	(g) 	
      the Warrant Agent is not at any time under any duty or
      responsibility to a Warrantholder to determine whether any facts exist
      which require any adjustment contemplated by section 3.6 or with respect
      to the nature or extent of any such adjustment when made, or with respect
      to the method employed in making the same;

	 	 	 
	 	(h) 	
      the Warrant Agent is not accountable with respect to the
      validity or value (or the kind or amount) of any Common Shares or other
      securities or property which may at any time be issued or delivered upon
      the exercise of the rights attaching to any Warrant; and

	 	 	 
	 	(i) 	
      the Warrant Agent is not responsible for any failure of
      the Company to make any cash payment or any failure of the Company to
      issue, transfer or deliver Common Shares or certificates for the same upon
      the exercise and surrender of any Warrants for the purpose of the exercise
      of such rights or to comply with any of the covenants contained in this
      section 7.

	7.7 	Replacement of Warrant Agent
  

	 	(1) 	
      The Warrant Agent may resign its agency and be discharged
      from all further duties and liabilities hereunder, except as otherwise
      provided in this Indenture, by giving to the Company and the
      Warrantholders not less than 90 days’ notice in writing or, if a new
      Warrant Agent has been appointed, such shorter notice as the Company
      accepts as sufficient.

	 	 	 
	 	(2) 	
      The Warrantholders by Extraordinary Resolution may at any
      time remove the Warrant Agent and appoint a new Warrant Agent.

	 	 	 
	 	(3) 	
      If the Warrant Agent so resigns or is so removed or is
      dissolved, becomes bankrupt, goes into liquidation or otherwise becomes
      incapable of acting hereunder, the Company shall forthwith appoint a new
      Warrant Agent unless a new Warrant Agent has already been appointed by the
      Warrantholders.

	 	 	 
	 	(4) 	
      Failing appointment by the Company, the retiring Warrant
      Agent or any Warrantholder may apply to the British Columbia Supreme Court
      for the appointment of a new Warrant Agent.

	 	 	 
	 	(5) 	
      Any new Warrant Agent so appointed by the Company or by
      the Court shall be subject to removal by Extraordinary Resolution of the
      Warrantholders.

	 	 	 
	 	(6) 	
      Any new Warrant Agent appointed under any provision of
      this section must be a corporation authorized to carry on the business of
      a trust company in the Qualifying Jurisdictions in
  Canada.

- 45 - 

	 	(7) 	
      On any appointment, the new Warrant Agent shall be vested
      with the same powers, rights, duties and responsibilities as if it had
      been originally named herein as Warrant Agent without any further
      assurance, conveyance, act or deed, but there shall be immediately
      executed, at the expense of the Company, all such conveyances or other
      instruments as, in the opinion of counsel, are necessary or advisable for
      the purpose of assuring the powers, rights, duties and responsibilities to
      the new Warrant Agent.

	 	 	 
	 	(8) 	
      On the appointment of a new Warrant Agent, the Company
      shall promptly give notice thereof to the Warrantholders.

	 	 	 
	 	(9) 	
      A corporation into or with which the Warrant Agent is
      merged or consolidated or amalgamated, or a corporation succeeding to the
      trust business of the Warrant Agent, shall be the successor to the Warrant
      Agent hereunder without any further act on its part or on the part of any
      party hereto if the corporation would be eligible for appointment as a new
      Warrant Agent under subsection 7.7(6).

	 	 	 
	 	(10) 	
      A Warrant Certificate certified but not delivered by a
      predecessor Warrant Agent may be delivered by the new or successor Warrant
      Agent in the name of the predecessor Warrant Agent or successor Warrant
      Agent.

	7.8 	Conflict of Interest

	 	(1) 	
      The Warrant Agent represents to the Company that at the
      time of the execution and delivery hereof no material conflict of interest
      exists between its role as a fiduciary hereunder and its role in any other
      capacity and if a material conflict of interest arises hereafter it shall,
      within 90 days after ascertaining that it has a material conflict of
      interest, either eliminate the conflict of interest or resign its agency
      hereunder.

	 	 	 
	 	(2) 	
      Subject to subsection 7.8(1), the Warrant Agent in its
      personal or any other capacity may buy, lend upon and deal in securities
      of the Company and generally may contract and enter into financial
      transactions with the Company or any subsidiary of the Company without
      being liable to account for any profit made
thereby.

	7.9 	Acceptance of Trust 

     The Warrant Agent hereby accepts
the agency in this Indenture declared and provided for and agrees to perform
them on the terms and conditions herein set forth and agrees to hold all rights,
interests and benefits contained herein for and on behalf of those persons who
become holders of Warrants from time to time issued pursuant to this Indenture.

	7.10 	Accounts 

	 	(1) 	
      The Company hereby represents to the Warrant Agent that
      any account to be opened by, or interest to held by, the Warrant Agent in
      connection with this Indenture, for or to the credit of the Company,
      either (i) is not intended to be used

- 46 - 

	 		
      by or on behalf of any third party; or (ii) is intended
      to be used by or on behalf of a third party, in which case the Company
      agrees to complete and execute forthwith a declaration in the form
      prescribed by the Warrant Agent as to the particulars of such third
      party.

	 	 	 
	 	(2) 	
      The Warrant Agent shall retain the right not to act and
      shall not be liable for refusing to act if, due to a lack of information
      or for any other reason whatsoever, the Warrant Agent, in its sole
      judgment, determines that such act might cause it to be in non-compliance
      with any applicable anti-money laundering or anti-terrorist legislation,
      regulation or guideline. Further, should the Warrant Agent, in its sole
      judgment, determine at any time that its acting under this Indenture has
      resulted in its being in non-compliance with any applicable anti-money
      laundering or anti- terrorist legislation, regulation or guideline, then
      it shall have the right to resign on 10 days written notice to the
      Company, provided (i) that the Warrant Agent’s written notice shall
      describe the circumstances of such non-compliance; and (ii) that if such
      circumstances are rectified to the Warrant Agent’s satisfaction within
      such 10 day period, then such resignation shall not be
  effective.

ARTICLE 8 
GENERAL 

	8.1 	Satisfaction and Discharge of Indenture
    

     This Indenture shall expire and
terminate on the earlier of: 

	 	(a) 	
      the date by which there has been delivered to the Warrant
      Agent for exercise or destruction all Warrant Certificates theretofore
      certified hereunder, or

	 	 	 
	 	(b) 	
      the 61st day following the Warrant Expiry
  Date,

and if all Common Shares required to be issued in compliance
with the provisions hereof have been issued and delivered hereunder, this
Indenture shall cease to be of further effect and the Warrant Agent, on demand
of and at the cost and expense of the Company and on delivery to the Warrant
Agent of a certificate of the Company stating that all conditions precedent to
the satisfaction and discharge of this Indenture have been complied with and on
payment to the Warrant Agent of the fees and other remuneration payable to the
Warrant Agent, shall execute proper instruments acknowledging satisfaction of
and discharging this Indenture. 

	8.2 	Sole Benefit of Parties and
      Warrantholders 

     Nothing in this Indenture
expressed or implied shall give or be construed to give to any person other than
the parties hereto and the Warrantholders, as the case may be, any legal or
equitable right, remedy or claim under this Indenture, or under any covenant or
provision herein contained, all covenants and provisions being for the sole
benefit of the parties hereto and the Warrantholders. 

- 47 - 

	8.3 	Discretion of Directors

     Any matter provided herein to be
determined by the Directors shall be determined by the Directors in their sole
discretion and a determination so made, absent manifest error, shall be
conclusive. 

	8.4 	Privacy 

     The parties acknowledge that
federal and/or provincial legislation that addresses the protection of
individuals’ personal information (collectively, “Privacy Laws”) applies
to obligations and activities under this Indenture. Despite any other provision
of this Indenture, neither party shall take or direct any action that would
contravene, or cause the other party to contravene, applicable Privacy Laws. The
Company shall, before transferring or causing to be transferred personal
information to the Warrant Agent, obtain and retain required consents of the
relevant individuals to the collection, use and disclosure of their personal
information, or shall have determined that such consents either have previously
been given upon which the parties can rely or are not required under the Privacy
Laws. The Warrant Agent shall use commercially reasonable efforts to ensure that
its services hereunder comply with Privacy Laws. Specifically, the Warrant Agent
agrees: (a) to have a designated chief privacy officer; (b) to maintain policies
and procedures to protect personal information and to receive and respond to any
privacy complaint or inquiry; (c) to use personal information solely for the
purposes of providing its services under or ancillary to this Indenture and not
to use it for any other purpose except with the consent of or direction from the
Company or the individual involved; (d) not to sell or otherwise improperly
disclose personal information to any third party; and (e) to employ
administrative, physical and technological safeguards to reasonably secure and
protect personal information against loss, theft, or unauthorized access, use or
modification. 

- 48 - 

	8.5 	Counterparts and Formal Date
  

     This Indenture may be executed in
several counterparts, each of which when so executed shall be deemed to be an
original, and the counterparts together shall constitute one and the same
instrument and notwithstanding the date of their execution shall be deemed to
bear the date set out at the top of the first page of this Indenture. 

     IN WITNESS WHEREOF the parties
hereto have executed this agreement as of the date first written above. 

	 	NORD RESOURCES 
	 	CORPORATION 
	 	  	  
	 	By: 	/s/
      John T. Perry 
	 	  	Authorized Signatory 
	 	  	  
	 	  	  
	 	COMPUTERSHARE TRUST 
	 	COMPANY OF CANADA 
	 	  	  
	 	By: 	/s/
      Nicole Clement 
	 	  	Authorized Signatory 
	 	  	  
	 	By: 	/s/
      Ritchie Po 
	 	  	Authorized Signatory 

SCHEDULE “A” TO INDENTURE 

Form of Warrant Certificate to be issued to Warrantholders
who are 
(a) U.S. Persons, (b) persons in the United States, or (c) persons
acting for the 
account or benefit of a U.S. Person or a person in the United
States 

This Certificate, and the Share Purchase Warrants evidenced
hereby, shall be void and of no value unless exercised on or before 5:00 p.m.
(Vancouver time) on June 5, 2012. 

[Insert Canadian Legend in §2.14(1) if necessary] 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS. 

THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S.
PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN
EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND
“U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.

NORD RESOURCES CORPORATION 

	 	CUSIP No.: 	<> 
	 	ISIN No.: 	<> 

	NO. __________	__________WARRANTS

SHARE PURCHASE WARRANTS 

     THIS IS TO CERTIFY THAT for value
received , the registered holder hereof is entitled for each whole Warrant
represented hereby to purchase one fully paid and non-assessable Share (“Share”)
in the capital of Nord Resources Corporation (the “Company”) at a price per
share of US$1.10, subject to adjustment as hereinafter referred to. 

     This Warrant Certificate and
other Warrant Certificates are issued under and pursuant to a certain warrant
indenture (herein referred to as the “Indenture”) dated June5 , 2007 between the
Company and the Warrant Agent, to which Indenture and any instruments
supplemental thereto reference is hereby made for a description of the terms and
conditions upon which such Warrant Certificates are issued and are to be held
all to the same effect as if the provisions of the 

- 2 - 

Indenture and all instruments supplemental thereto were herein
set forth, to all of which provisions the holder of this Warrant Certificate by
acceptance hereof assents. The Company shall furnish to the holder of this
Warrant Certificate, upon request and without charge, a copy of the Indenture.
Capitalized terms not otherwise defined herein have the meaning ascribed to them
in the Indenture. 

     The right to purchase Common
Shares represented hereby may be exercised by the registered holder hereof at
any time on the date of issue hereof up to and including 5:00 p.m. (Vancouver
time) on June 5, 2012 (the “Warrant Expiry Time”) by surrender of this Warrant
Certificate to Computershare Trust Company of Canada (the “Warrant Agent”) at
the principal transfer office of the Warrant Agent in Vancouver, British
Columbia, together with the warrant exercise form attached hereto as Appendix A
(or, in the event that the Common Shares are not registered under a Registration
Statement, as that term is used in the Warrant Indenture, the warrant exercise
certification attached to the Indenture as Schedule B) duly executed and
completed for the number of Common Shares which the holder hereof is entitled to
purchase and the purchase price of such Common Shares as herein provided. 

     This Warrant Certificate and such
payment shall be deemed not to have been surrendered and made except upon
personal delivery thereof or, if sent by post or other means of transmission,
upon actual receipt thereof by the Warrant Agent at the office specified above.

     The purchase price of Common
Shares subscribed for hereunder shall be paid by certified cheque, money order
or bank draft in lawful money of the United States of America payable to the
order of the Company at par in the city where this Warrant Certificate is
delivered. 

     Certificates for the Common
Shares subscribed for shall be mailed to the persons specified in the warrant
exercise form or certification at their respective addresses specified therein
or, if so specified in such warrant exercise or certification form, delivered to
such persons at the office where the applicable Warrant Certificate was
surrendered, when the transfer registers of the Company have been open for five
business days after the due surrender of such Warrant Certificate and payment as
aforesaid. In the event of a purchase of a number of Common Shares fewer than
the number which can be purchased pursuant to this Warrant Certificate, the
holder shall be entitled to receive without charge a new Warrant Certificate in
respect of the balance of such Warrants. 

     The Warrants represented by this
Warrant Certificate have not been registered, and the Warrant Common Shares
issuable upon exercise hereof, if issued prior to the effectiveness of a
registration statement with respect thereto will not have been registered, under
the United States Securities Act of 1933, as amended, (the “1933 Act”).
The Warrants and Warrant Common Shares may not be sold, transferred, pledged or
hypothecated in the absence of (a) an effective registration statement under the
1933 Act relating thereto or (b) an exemption from the registration requirements
of the 1933 Act and all applicable state securities laws, after providing a
legal opinion satisfactory to the Company confirming that such transfer is not
subject to registration under the 1933 Act and all applicable state securities
laws. Each Warrant Certificate and certificate representing the Warrant Common
Shares shall contain a legend on the face thereof, in the appropriate form
prescribed under the Indenture, setting forth the restrictions on transfer
referred to herein. The holder acknowledges and agrees that the Warrants
represented 

- 3 - 

by this Warrant Certificate and the Warrant constitute, and the
Warrant Common Shares issuable upon exercise hereof may constitute, “restricted
securities” under the 1933 Act.

     Any certificate issued at any
time in exchange or substitution for any certificate bearing a restrictive
legend shall also bear such legend unless in the opinion of counsel for the
holder thereof (which counsel shall be reasonably satisfactory to the Company),
the securities represented thereby are not, at such time, required by law to
bear such legend. 

     Subject to the Company’s right to
purchase the Warrants under the Indenture and to any restriction under
applicable law or policy of any applicable regulatory body, the Warrants and
Warrants Certificates and the rights thereunder shall only be transferable by
the registered holder hereof in compliance with the conditions prescribed in the
Indenture and the due completion, execution and delivery of a Transfer Form (in
the form attached hereto as Appendix B) in accordance with the terms of the
Indenture. THE TRANSFER OF THE WARRANTS EVIDENCED HEREBY MAY BE RESTRICTED BY
APPLICABLE SECURITIES LAWS. HOLDERS ARE ADVISED TO CONSULT THEIR LEGAL COUNSEL
IN THIS REGARD. 

     The holding of this Warrant
Certificate shall not constitute the holder hereof a holder of Common Shares nor
entitle him to any right of interest in respect thereof. 

     The Indenture provides for
adjustment in the number of Common Shares to be delivered upon the exercise of
the right of purchase hereby granted and to the Exercise Price in certain events
therein set forth.

     The Indenture contains provisions
making binding upon all holders of Warrants outstanding thereunder resolutions
passed at meetings of such holders held in accordance with such provisions by
the warrantholders entitled to purchase a specified majority of the Common
Shares which may be purchased pursuant to all then outstanding Warrants. 

     The holder of this Warrant
Certificate may at any time up to and including the Warrant Expiry Time upon the
surrender hereof to the Warrant Agent at its principal transfer office in
Vancouver, British Columbia, and payment of any charges provided for in the
Indenture, exchange this Warrant Certificate for other Warrant Certificates
entitling the holder to subscribe in the aggregate for the same number of Common
Shares as is expressed in this Warrant Certificate. 

     This Warrant Certificate shall
not be valid for any purpose whatever unless and until it has been countersigned
by the Warrant Agent for the time being under the Indenture. 

     Nothing contained herein or in
the Indenture shall confer any right upon the holder hereof or any other person
to subscribe for or purchase any Common Shares of the Company at any time
subsequent to the Warrant Expiry Time. After the Warrant Expiry Time this
Warrant Certificate and all rights thereunder shall be void and of no value.

     Time is of the essence hereof. 

	 - 4 - 
	 
	 
	               
         IN WITNESS WHEREOF this Warrant Certificate has been
      executed on behalf of Nord Resources Corporation. as of the ______ day of
      June, 2007. 
	

	  	 	 	NORD RESOURCES CORPORATION
  
	 	 	 	 
	  	 	 	By: 	 
    
	 	 	 	 	 
	  	 	 	Countersigned: 	  
	 	 	 	 	 
	  	 	 	COMPUTERSHARE TRUST COMPANY
      OF 
	  	 	 	CANADA 	  
	 	 	 	 	 
	Dated: 	 	 	 By: 	 
    

- 5 - 

APPENDIX “A” TO WARRANT CERTIFICATE 
EXERCISE FORM

	TO: 	COMPUTERSHARE TRUST 
	  	COMPANY OF CANADA 
	  	510 Burrard Street, 2nd Floor 
	  	Vancouver, British Columbia 
	  	V6C 3B9 
	  	  
	  	NORD RESOURCES CORPORATION 
	 	1 West Wetmore Road, Suite
      203  
	  	Tucson, Arizona 85705 

     The undersigned registered holder
of the within Warrant Certificate, subject to that certain warrant indenture
(the “Indenture”) dated as of June 5, 2007 between Nord Resources Corporation
and Computershare Trust Company of Canada, as Warrant Agent, hereby: 

	 	a) 	
      subscribes for _________________ common shares (“Common
        Shares”) (or such number of Common Shares or other securities or
        property to which such subscription entitles the undersigned in lieu thereof
        or in addition thereto under the Indenture) of Nord Resources Corporation
        at the price per share of US$1.10 (or such adjusted price which may be
        in effect under the provisions of the Indenture) and in payment of the
        exercise price encloses a certified cheque, money order or bank draft,
        in any case in lawful money of the United States of America payable at
        par in the City of Vancouver to Nord Resources Corporation; and

	 	 	 
	 	b) 	
      delivers herewith the above-mentioned Warrant
      Certificate entitling the undersigned to subscribe for the above-mentioned
      number of Common Shares.

     The undersigned hereby directs that
the said Common Shares be registered as follows: 

	 	Address(es)	Number(s) of
	 	 (including Postal Code)	 Common Shares
	 Name(s) in full 	 	 
    

     The undersigned represents that
it has had access to such current public information concerning Nord Resources
Corporation as it considered necessary in connection with its investment
decision. 

- 6 - 

The undersigned acknowledges that the issuance of the Common
Shares issuable upon exercise of the Warrants has not been registered under the
United States Securities Act of 1933, as amended, (the “1933 Act”) and
the Common Shares will be issued pursuant to exemptions from the registration
requirements of the 1933 Act. The Common Shares may not be sold, transferred,
pledged or hypothecated in the absence of (a) an effective registration
statement under the 1933 Act relating thereto or (b) an exemption from the
registration requirements of the 1933 Act. Each certificate representing the
Common Shares shall contain a legend on the face thereof, in the appropriate
form prescribed under the Indenture, setting forth the restrictions on transfer
referred to herein, unless in the opinion of counsel for the holder thereof
(which counsel shall be reasonably satisfactory to the Company), the securities
represented thereby are not, at such time, required by law to bear such legend.
The holder acknowledges and agrees that the Common Shares will constitute
“restricted securities” under the 1933 Act.

Any certificate issued at any time in exchange or substitution
for any certificate bearing a restrictive legend shall also bear such legend
unless in the opinion of counsel for the holder thereof (which counsel shall be
reasonably satisfactory to the Company), the securities represented thereby are
not, at such time, required by law to bear such legend. 

The undersigned represents, warrants and covenant that it:
[CHECK ONE ONLY] 

	[ ] 	A. 	
      (1) is not in the United States; (2) is not a U.S. Person
      and is not exercising the Warrants for, or on behalf or benefit of, a U.S.
      Person or person in the United States; (3) did not execute or deliver this
      Warrant Exercise Form in the United States; (4) will not engage in hedging
      transactions with regard to the Common Shares prior to the expiration of
      the one-year distribution compliance period set forth in Rule 903(b)(3) of
      Regulation S; (5) acknowledges that the Company shall refuse to register
      any transfer of the Common Shares not made in accordance with the
      provisions of Regulation S, pursuant to registration under the 1933 Act,
      or pursuant to an available exemption from registration under the 1933
      Act; (6) agrees not to resell the Common Shares unless (i) pursuant to
      registration under the 1933 Act, (ii) pursuant to an available exemption
      from registration under the 1933 Act, or (iii) pursuant to the provisions
      of Regulation S of the 1933 Act, and (7) has not engaged in, or exercised
      warrants as a result of, any “directed selling efforts” (as defined in
      Regulation S) in the United States. 

	 	 	
       

	[ ] 	B. 	
      the undersigned (i) purchased the Special Warrants
      directly from the Corporation pursuant to a written subscription agreement
      for the purchase of Special Warrants,(ii) is exercising the Warrants
      solely for its own account and not on behalf of any other Person; and
      (iii) was an "accredited investor", as that term is defined in Regulation
      D under the 1933 Act, both on the date the Special Warrants were purchased
      from the Corporation and on the date of exercise of the Warrants.
  

	 	 	
       

	[ ] 	C. 	
      the undersigned is delivering a written opinion of United
      States counsel or a written confirmation from the Corporation to the
      effect that the Common Shares to be delivered upon exercise hereof have
      been registered under the 1933 Act or are exempt from registration
      thereunder. 

- 7 - 

DATED this _____________ day of ____________________, 20_____.

Signature of Warrantholder guaranteed by: 

	 	 	(Signature
      of Warrantholder) 
	 	 	 
	 	 	 
	 	 	(Print Name of Warrantholder)* 
	 	 	  
	 	 	 
	 	 	 
	 	 	 
	 	 	(Address of Warrantholder in full) 

(*The name of the Warrantholder must correspond with the name
upon the face of the certificate in every particular and the Company reserves
the right to require reasonable assurance that such signature is genuine and
effective.) 

Instructions 

	1. 	
      The registered holder may exercise its right to receive
      Common Shares by completing this form and surrendering this form and the
      Warrant Certificate representing the Warrants being exercised along with a
      certified cheque, money order or bank draft in lawful money of the United
      States of America payable to the order of the Company at par in an amount
      equal to the exercise price applicable at the time of such surrender in
      respect of each Common Share which the Warrantholder desires to acquire
      (being not more than those which the Warrantholder is entitled to acquire
      pursuant to the Warrants represented by the Warrant Certificate so
      surrendered) to Computershare Trust Company of Canada, at its principal
      offices at:

- 8 - 

	 	Computershare Trust Company of 
		
      Canada 

	 	510 Burrard Street, 2nd Floor 
	 	Vancouver, British Columbia 
	 	V6C 3B9
	 	 
	2. 	
      The certificates shall be mailed by registered mail to
      the address appearing in this Exercise Form.

	 	 
	3. 	
      If Common Shares are issued to a person other than the
      registered Warrantholder, the signature of that person must be signature
      guaranteed by a Schedule 1 Canadian Chartered Bank or a major trust
      company or by a medallion signature guarantee from a member of a
      recognized signature medallion guarantee program and the Transfer Form
      must be completed.

	 	 
	4. 	
      If the Exercise Form is signed by a trustee, executor,
      administrator, curator, guardian, attorney, officer of a Company or any
      person acting in a fiduciary or representative capacity, the Warrant
      Certificate must be accompanied by evidence of authority to sign
      satisfactory to the Warrant Agent and the Company.

The Warrants shall expire at 5:00 p.m. (Vancouver Time) on June
5, 2012 and must be exercised before that time, otherwise the same shall expire
and be void and of no value. 

- 9 - 

APPENDIX “B” TO THE WARRANT CERTIFICATE 

TRANSFER FORM 

FOR value received I/we (the “Transferor”) hereby sell, assign,
and transfer unto: 

	(Name of
      Transferee) 
	 
	(Address of Transferee) 
	  
	 
	  
	  
	(Social Insurance Number)    
    
		 
		 
	 	Warrants of  
	(Quantity & Class)	 

NORD RESOURCES CORPORATION (the “Company”) 

	represented by: 	 
	(List Certificate Numbers) 
	 
	and the undersigned hereby irrevocably
      constitutes and appoints: 
	 
	(Leave Blank) 

	 
	the attorney to transfer the said Warrants on the
      books of the Company with full power of substitution in the premises.
  
	

DATED this ___________ day of ___________________, 20_____.

Signature Guaranteed By: 

	 	(Signature
      of Warrantholder) 

- 10 - 

	 	 
	 	(Name of Warrantholder,
      Please Print) 
	 	 
	 	 
	 	(Capacity of Authorized Representative) 

Instructions: 

	1. 	
      The signature on this assignment must correspond with the
      name as written upon the face of the certificate, in every particular,
      without alteration or enlargement, or change whatever.

	 	 
	2. 	
      The signature must be guaranteed by a Canadian schedule 1
      chartered bank, major Trust Company or by a member firm of an acceptable
      Medallion Signature Guarantee Program (STAMP, SEMP, MSP). The stamp must
      bear the words “Signature Medallion Guaranteed”.

	 	 
	3. 	
      In the United States of America, signature guarantees
      must be done by members of a Medallion Signature Guarantee Program only.
      Signature guarantees are not accepted from Treasury Branches, Credit
      Unions or Caisses Populaires unless they are members of an acceptable
      Medallion Program.

TRANSFEREE ACKNOWLEDGMENT 

The Transferee acknowledges and agrees that the Warrants may
not be sold, transferred, pledged or hypothecated in the absence of (a) an
effective registration statement under the 1933 Act relating thereto or (b) an
exemption from the registration requirements of the 1933 Act. Each Warrant
Certificate shall contain a legend on the face thereof, in the appropriate form
prescribed under the Indenture, setting forth the restrictions on transfer
referred to herein, unless in the opinion of counsel for the holder thereof
(which counsel shall be reasonably satisfactory to the Company), the securities
represented thereby are not, at such time, required by law to bear such legend.
The holder acknowledges and agrees that the Warrants represented by this Warrant
Certificate constitute “restricted securities” under the 1933 Act.

Any certificate issued at any time in exchange or substitution
for any certificate bearing a restrictive legend shall also bear such legend
unless in the opinion of counsel for the holder thereof (which counsel shall be
reasonably satisfactory to the Company), the securities represented thereby are
not, at such time, required by law to bear such legend. 

In connection with this transfer (check one), the undersigned
transferee (the “Transferee”) certifies that (check either A or B): 

	[ ] 	(A) 	
      The Transferee hereby certifies that (i) it was not
      offered the Warrants while in the United States and did not execute this
      certificate while within the United States; and (ii) it is not a U.S.
      Person or a person within the United States and it is not acquiring any of
      the Warrants on behalf of a U.S. Person or any person within
  

- 11 - 

	  	  	the United States. The Transferee agrees not to
      engage in hedging transactions with regard to the Warrants prior to the
      expiration of the one-year distribution compliance period set forth in
      Rule 903(b)(3) of Regulation S, and acknowledges that the Company shall
      refuse to register any transfer of the Warrants not made in accordance
      with the provisions of Regulation S, pursuant to registration under the
      1933 Act, or pursuant to an available exemption from registration under
      the 1933 Act. 
	 	 	 
	[ ] 	(B) 	The Transferor or Transferee is delivering a
      written opinion of U.S. Counsel acceptable to the Company to the effect
      that this transfer of Warrants has been registered under the 1933 Act or
      is exempt from registration thereunder. 

	(Signature of Transferee)
    	 	  
	 	 	 
	 	 	 
	Date 	 	Print full name 

The Warrants and the Common Shares issuable upon exercise of
the Warrants shall only be transferable in accordance with applicable laws. The
Warrants may only be exercised in the manner required by the Warrant Certificate
and the Exercise Form attached thereto. Any securities acquired pursuant to this
exercise of Warrants shall be subject to applicable hold periods and any
certificate representing such securities may bear restrictive legends, each in
accordance with the Warrant Indenture between the Company and Computershare
Trust Company of Canada that governs the Warrants and the Warrant
Certificate. 

SCHEDULE “B” TO INDENTURE 

Form of Warrant Certificate to be issued to Warrantholders
who are persons other than 
(a) U.S. Persons, (b) persons in the United
States or (c) persons acting for the 
account or benefit of a U.S. Person or
a person in the United States; 

This Certificate, and the Share Purchase Warrants evidenced
hereby, shall be void and of no value unless exercised on or before 5:00 p.m.
(Vancouver time) on June 5, 2012. 

[Insert Canadian Legend in §2.14(1) if necessary] 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE
BEEN OFFERED AND SOLD IN AN OFFSHORE TRANSACTION PURSUANT TO REGULATION S
PROMULGATED UNDER THE U.S. SECURITIES ACT. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM
REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS
IN COMPLIANCE WITH THE U.S. SECURITIES ACT. 

THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S.
PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN
EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND
“U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.

NORD RESOURCES CORPORATION 

	 	CUSIP No.: 	<> 
	 	ISIN No.: 	<> 

	NO. __________	__________WARRANTS 

SHARE PURCHASE WARRANTS 

     THIS IS TO CERTIFY THAT for value
received , the registered holder hereof is entitled for each whole Warrant
represented hereby to purchase one fully paid and non-assessable Share (“Share”)
in the capital of Nord Resources Corporation (the “Company”) at a price per
share of US$1.10, subject to adjustment as hereinafter referred to. 

- 2 - 

     This Warrant Certificate and
other Warrant Certificates are issued under and pursuant to a certain warrant
indenture (herein referred to as the “Indenture”) dated June5 , 2007 between the
Company and the Warrant Agent, to which Indenture and any instruments
supplemental thereto reference is hereby made for a description of the terms and
conditions upon which such Warrant Certificates are issued and are to be held
all to the same effect as if the provisions of the Indenture and all instruments
supplemental thereto were herein set forth, to all of which provisions the
holder of this Warrant Certificate by acceptance hereof assents. The Company
shall furnish to the holder of this Warrant Certificate, upon request and
without charge, a copy of the Indenture. Capitalized terms not otherwise defined
herein have the meaning ascribed to them in the Indenture. 

     The right to purchase Common
Shares represented hereby may be exercised by the registered holder hereof at
any time on the date of issue hereof up to and including 5:00 p.m. (Vancouver
time) on June 5, 2012 (the “Warrant Expiry Time”) by surrender of this Warrant
Certificate to Computershare Trust Company of Canada (the “Warrant Agent”) at
the principal transfer office of the Warrant Agent in Vancouver, British
Columbia, together with the warrant exercise form attached hereto as Appendix A
(or, in the event that the Common Shares are not registered under a Registration
Statement, as that term is used in the Warrant Indenture, the warrant exercise
certification attached to the Indenture as Schedule B) duly executed and
completed for the number of Common Shares which the holder hereof is entitled to
purchase and the purchase price of such Common Shares as herein provided. 

     This Warrant Certificate and such
payment shall be deemed not to have been surrendered and made except upon
personal delivery thereof or, if sent by post or other means of transmission,
upon actual receipt thereof by the Warrant Agent at the office specified above.

     The purchase price of Common
Shares subscribed for hereunder shall be paid by certified cheque, money order
or bank draft in lawful money of the United States of America payable to the
order of the Company at par in the city where this Warrant Certificate is
delivered. 

     Certificates for the Common
Shares subscribed for shall be mailed to the persons specified in the warrant
exercise form or certification at their respective addresses specified therein
or, if so specified in such warrant exercise or certification form, delivered to
such persons at the office where the applicable Warrant Certificate was
surrendered, when the transfer registers of the Company have been open for five
business days after the due surrender of such Warrant Certificate and payment as
aforesaid. In the event of a purchase of a number of Common Shares fewer than
the number which can be purchased pursuant to this Warrant Certificate, the
holder shall be entitled to receive without charge a new Warrant Certificate in
respect of the balance of such Warrants. 

     The Warrants represented by this
Warrant Certificate have not been registered, and the Warrant Common Shares
issuable upon exercise hereof, if issued prior to the effectiveness of a
registration statement with respect thereto will not have been registered, under
the United States Securities Act of 1933, as amended, (the “1933 Act”).
The Warrants and Warrant Common Shares may not be sold, transferred, pledged or
hypothecated in the absence of (a) an effective registration statement under the
1933 Act relating thereto or (b) an exemption from the registration requirements
of the 1933 Act and all applicable state securities laws, after providing 

- 3 - 

a legal opinion satisfactory to the Company confirming that
such transfer is not subject to registration under the 1933 Act and all
applicable state securities laws. Each Warrant Certificate and certificate
representing the Warrant Common Shares shall contain a legend on the face
thereof, in the appropriate form prescribed under the Indenture, setting forth
the restrictions on transfer referred to herein. The holder acknowledges and
agrees that the Warrants represented by this Warrant Certificate and the Warrant
constitute, and the Warrant Common Shares issuable upon exercise hereof may
constitute, “restricted securities” under the 1933 Act. Further, the holder
agrees not to engage in hedging transactions with regard to the Warrants except
in compliance with the 1933 Act. 

     The holder of this Warrant may
not, during a one-year distribution compliance period, act as a distributor,
either directly or indirectly, or sell, transfer, hypothecate or otherwise
convey the Warrants or the Warrant Common Shares other than to or for the
account or benefit of a non-U.S. Person, and in the event the Warrants or the
Warrant Common Shares are offered, sold or otherwise transferred by the holder
to or for the account or benefit of a non-U.S. Person, prior to the expiration
of a one-year distribution compliance period, unless pursuant to an effective
registration statement under the 1933 Act, the purchaser or transferee must
agree not to resell such securities except in accordance with the provisions of
Regulation S, pursuant to registration under the 1933 Act, or pursuant to an
available exemption from registration, and must further agree not to engage in
hedging transactions with regard to such securities unless in compliance with
the 1933 Act. 

     Any certificate issued at any
time in exchange or substitution for any certificate bearing a restrictive
legend shall also bear such legend unless in the opinion of counsel for the
holder thereof (which counsel shall be reasonably satisfactory to the Company),
the securities represented thereby are not, at such time, required by law to
bear such legend. 

     Subject to the Company’s right to
purchase the Warrants under the Indenture and to any restriction under
applicable law or policy of any applicable regulatory body, the Warrants and
Warrants Certificates and the rights thereunder shall only be transferable by
the registered holder hereof in compliance with the conditions prescribed in the
Indenture and the due completion, execution and delivery of a Transfer Form (in
the form attached hereto as Appendix B) in accordance with the terms of the
Indenture. THE TRANSFER OF THE WARRANTS EVIDENCED HEREBY MAY BE RESTRICTED BY
APPLICABLE SECURITIES LAWS. HOLDERS ARE ADVISED TO CONSULT THEIR LEGAL COUNSEL
IN THIS REGARD. 

     The holding of this Warrant
Certificate shall not constitute the holder hereof a holder of Common Shares nor
entitle him to any right of interest in respect thereof. 

     The Indenture provides for
adjustment in the number of Common Shares to be delivered upon the exercise of
the right of purchase hereby granted and to the Exercise Price in certain events
therein set forth.

     The Indenture contains provisions
making binding upon all holders of Warrants outstanding thereunder resolutions
passed at meetings of such holders held in accordance with such provisions by
the warrantholders entitled to purchase a specified majority of the Common
Shares which may be purchased pursuant to all then outstanding Warrants. 

- 4 - 

     The holder of this Warrant
Certificate may at any time up to and including the Warrant Expiry Time upon the
surrender hereof to the Warrant Agent at its principal transfer office in
Vancouver, British Columbia, and payment of any charges provided for in the
Indenture, exchange this Warrant Certificate for other Warrant Certificates
entitling the holder to subscribe in the aggregate for the same number of Common
Shares as is expressed in this Warrant Certificate. 

     This Warrant Certificate shall
not be valid for any purpose whatever unless and until it has been countersigned
by the Warrant Agent for the time being under the Indenture. 

     Nothing contained herein or in
the Indenture shall confer any right upon the holder hereof or any other person
to subscribe for or purchase any Common Shares of the Company at any time
subsequent to the Warrant Expiry Time. After the Warrant Expiry Time this
Warrant Certificate and all rights thereunder shall be void and of no value.

     Time is of the essence hereof. 

     IN WITNESS WHEREOF this
  Warrant Certificate has been executed on behalf of Nord Resources Corporation.
  as of the __________ day of June, 2007. 

	  	 	 	NORD RESOURCES CORPORATION 
	 	 	 	 
	  	 	 	By: 	  
	 	 	 	 	 
	  	 	 	Countersigned: 
	 	 	 	 
	  	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA
    
	 	 	 	 	 
	Dated: 	 	 	 By: 	  

- 5 - 

APPENDIX “A” TO WARRANT CERTIFICATE 
EXERCISE FORM

	TO: 	COMPUTERSHARE TRUST 
	  	COMPANY OF CANADA 
	  	510 Burrard Street, 2nd Floor 
	  	Vancouver, British Columbia 
	  	V6C 3B9 
	  	  
	  	NORD RESOURCES CORPORATION 
	 	1 West Wetmore Road, Suite
      203  
	  	Tucson, Arizona 85705 

     The undersigned registered holder
of the within Warrant Certificate, subject to that certain warrant indenture
(the “Indenture”) dated as of June 5, 2007 between Nord Resources Corporation
and Computershare Trust Company of Canada, as Warrant Agent, hereby: 

	 	c) 	
      subscribes for _________ common
      shares (“Common Shares”) (or such number of Common
      Shares or other securities or property to which such
      subscription entitles the undersigned in lieu thereof or in
      addition thereto under the Indenture) of Nord
      Resources Corporation at the price per share of
      US$1.10 (or such adjusted price which may be in effect under
      the provisions of the Indenture) and in payment
      of the exercise price encloses a certified cheque,
      money order or bank draft, in any case in lawful money of the
      United States of America payable at par in the
      City of Vancouver to Nord Resources Corporation;
      and 

	 	 	
       

	 	d) 	
      delivers herewith the above-mentioned Warrant
      Certificate entitling the undersigned to subscribe for
      the above-mentioned number of Common Shares.
  

     The undersigned hereby directs that
the said Common Shares be registered as follows: 

	 	 	 
	 	Address(es)	Number(s) of
	Name(s) in full 	 (including Postal Code) 	 Common
      Shares 

     The undersigned represents that
it has had access to such current public information concerning Nord Resources
Corporation as it considered necessary in connection with its investment
decision. 

- 6 - 

The undersigned acknowledges that the issuance of the Common
Shares issuable upon exercise of the Warrants has not been registered under the
United States Securities Act of 1933, as amended, (the “1933 Act”) and
the Common Shares will be issued pursuant to exemptions from the registration
requirements of the 1933 Act. The Common Shares may not be sold, transferred,
pledged or hypothecated in the absence of (a) an effective registration
statement under the 1933 Act relating thereto or (b) an exemption from the
registration requirements of the 1933 Act. Each certificate representing the
Common Shares shall contain a legend on the face thereof, in the appropriate
form prescribed under the Indenture, setting forth the restrictions on transfer
referred to herein, unless in the opinion of counsel for the holder thereof
(which counsel shall be reasonably satisfactory to the Company), the securities
represented thereby are not, at such time, required by law to bear such legend.
The holder acknowledges and agrees that the Common Shares will constitute
“restricted securities” under the 1933 Act.

Any certificate issued at any time in exchange or substitution
for any certificate bearing a restrictive legend shall also bear such legend
unless in the opinion of counsel for the holder thereof (which counsel shall be
reasonably satisfactory to the Company), the securities represented thereby are
not, at such time, required by law to bear such legend. 

The undersigned represents, warrants and covenant that it:
[CHECK ONE ONLY] 

	[ ] 	A. 	
      (1) is not in the United States; (2) is not a U.S. Person
      and is not exercising the Warrants for, or on behalf or benefit of, a U.S.
      Person or person in the United States; (3) did not execute or deliver this
      Warrant Exercise Form in the United States; (4) will not engage in hedging
      transactions with regard to the Common Shares prior to the expiration of
      the one-year distribution compliance period set forth in Rule 903(b)(3) of
      Regulation S; (5) acknowledges that the Company shall refuse to register
      any transfer of the Common Shares not made in accordance with the
      provisions of Regulation S, pursuant to registration under the 1933 Act,
      or pursuant to an available exemption from registration under the 1933
      Act; (6) agrees not to resell the Common Shares unless (i) pursuant to
      registration under the 1933 Act, (ii) pursuant to an available exemption
      from registration under the 1933 Act, or (iii) pursuant to the provisions
      of Regulation S of the 1933 Act, and (7) has not engaged in, or exercised
      warrants as a result of, any “directed selling efforts” (as defined in
      Regulation S) in the United States. 

	 	 	
       

	[ ] 	B. 	
      the undersigned (i) purchased the Special Warrants
      directly from the Corporation pursuant to a written subscription agreement
      for the purchase of Special Warrants, (ii) is exercising the Warrants
      solely for its own account and not on behalf of any other Person; and
      (iii) was an "accredited investor", as that term is defined in Regulation
      D under the 1933 Act, both on the date the Special Warrants were purchased
      from the Corporation and on the date of exercise of the Warrants.
  

	 	 	
       

	[ ] 	C. 	
      the undersigned is delivering a written opinion of United
      States counsel or a written confirmation from the Corporation to the
      effect that the Common Shares to be delivered upon exercise hereof have
      been registered under the 1933 Act or are exempt from registration
      thereunder. 

- 7 - 

	DATED this _________ day of ____________________, 20_____.
    
	 
	Signature of Warrantholder guaranteed by:

	 	 	(Signature
      of Warrantholder) 
	 	 	 
	 	 	(Print Name of Warrantholder)* 
	 	 	  
	 	 	 
	 	 	 
	 	 	 
	 	 	(Address of Warrantholder in full)
  

(*The name of the Warrantholder must correspond with the name
upon the face of the certificate in every particular and the Company reserves
the right to require reasonable assurance that such signature is genuine and
effective.) 

Instructions 

	4. 	
      The registered holder may exercise its right to receive
      Common Shares by completing this form and surrendering this form and the
      Warrant Certificate representing the Warrants being exercised along with a
      certified cheque, money order or bank draft in lawful money of the United
      States of America payable to the order of the Company at par in an amount
      equal to the exercise price applicable at the time of such surrender in
      respect of each Common Share which the Warrantholder desires to acquire
      (being not more than those which the Warrantholder is entitled to acquire
      pursuant to the Warrants represented by the Warrant Certificate so
      surrendered) to Computershare Trust Company of Canada, at its principal
      offices at:

- 8 - 

		
      Computershare Trust Company of  

	 	Canada
	 	510 Burrard Street, 2nd Floor 
	 	Vancouver, British Columbia 
	 	V6C 3B9
	 	 
	5. 	
      The certificates shall be mailed by registered mail to
      the address appearing in this Exercise Form.

	 	 
	6. 	
      If Common Shares are issued to a person other than the
      registered Warrantholder, the signature of that person must be signature
      guaranteed by a Schedule 1 Canadian Chartered Bank or a major trust
      company or by a medallion signature guarantee from a member of a
      recognized signature medallion guarantee program and the Transfer Form
      must be completed.

	 	 
	7. 	
      If the Exercise Form is signed by a trustee, executor,
      administrator, curator, guardian, attorney, officer of a Company or any
      person acting in a fiduciary or representative capacity, the Warrant
      Certificate must be accompanied by evidence of authority to sign
      satisfactory to the Warrant Agent and the Company.

The Warrants shall expire at 5:00 p.m. (Vancouver Time) on June
5, 2012 and must be exercised before that time, otherwise the same shall expire
and be void and of no value. 

- 9 - 

APPENDIX “B” TO THE WARRANT CERTIFICATE 

TRANSFER FORM 

FOR value received I/we (the “Transferor”) hereby sell, assign,
and transfer unto: 

	(Name of
      Transferee) 
	 
	(Address of Transferee) 
	  
	  
	  
	 
	(Social Insurance Number) 
	 
		Warrants
    of  
	(Quantity & Class) 

NORD RESOURCES CORPORATION (the “Company”) 

	represented by: 	 
	(List Certificate Numbers) 
	 
	and the undersigned hereby irrevocably
      constitutes and appoints: 
	 
	(Leave Blank) 

the attorney to transfer the said Warrants on the books of the
Company with full power of substitution in the premises. 

DATED this ___________ day of ___________________, 20_____

  .

	 Signature Guaranteed By: 	 
	 	 
	 	(Signature of Warrantholder) 
	 	 

- 10 - 

	 	(Name
      of Warrantholder, Please Print) 
	 	 
	 	(Capacity of Authorized Representative)
  

Instructions: 

	8. 	
      The signature on this assignment must correspond with the
      name as written upon the face of the certificate, in every particular,
      without alteration or enlargement, or change whatever.

	 	 
	9. 	
      The signature must be guaranteed by a Canadian schedule 1
      chartered bank, major Trust Company or by a member firm of an acceptable
      Medallion Signature Guarantee Program (STAMP, SEMP, MSP). The stamp must
      bear the words “Signature Medallion Guaranteed”.

	 	 
	10. 	
      In the United States of America, signature guarantees
      must be done by members of a Medallion Signature Guarantee Program only.
      Signature guarantees are not accepted from Treasury Branches, Credit
      Unions or Caisses Populaires unless they are members of an acceptable
      Medallion Program.

TRANSFEREE ACKNOWLEDGMENT 

The Transferee acknowledges and agrees that the Warrants may
not be sold, transferred, pledged or hypothecated in the absence of (a) an
effective registration statement under the 1933 Act relating thereto or (b) an
exemption from the registration requirements of the 1933 Act. Each Warrant
Certificate shall contain a legend on the face thereof, in the appropriate form
prescribed under the Indenture, setting forth the restrictions on transfer
referred to herein, unless in the opinion of counsel for the holder thereof
(which counsel shall be reasonably satisfactory to the Company), the securities
represented thereby are not, at such time, required by law to bear such legend.
The holder acknowledges and agrees that the Warrants represented by this Warrant
Certificate constitute “restricted securities” under the 1933 Act.

Any certificate issued at any time in exchange or substitution
for any certificate bearing a restrictive legend shall also bear such legend
unless in the opinion of counsel for the holder thereof (which counsel shall be
reasonably satisfactory to the Company), the securities represented thereby are
not, at such time, required by law to bear such legend. 

In connection with this transfer (check one), the undersigned
transferee (the “Transferee”) certifies that (check either A or B): 

	[ ] 	(A) 	
      The Transferee hereby certifies that (i) it was not
      offered the Warrants while in the United States and did not execute this
      certificate while within the United States; and (ii) it is not a U.S.
      Person or a person within the United States and it is not acquiring any of
      the Warrants on behalf of a U.S. Person or any person within
  

- 11 - 

	  	  	the United States. The Transferee agrees not to
      engage in hedging transactions with regard to the Warrants prior to the
      expiration of the one-year distribution compliance period set forth in
      Rule 903(b)(3) of Regulation S, and acknowledges that the Company shall
      refuse to register any transfer of the Warrants not made in accordance
      with the provisions of Regulation S, pursuant to registration under the
      1933 Act, or pursuant to an available exemption from registration under
      the 1933 Act. 
	 	 	 
	[ ] 	(B) 	The Transferor or Transferee is delivering a
      written opinion of U.S. Counsel acceptable to the Company to the effect
      that this transfer of Warrants has been registered under the 1933 Act or
      is exempt from registration thereunder. 

	(Signature of
      Transferee) 	 	  
	 	 	 
	Date 	 	Print full name 

The Warrants and the Common Shares issuable upon exercise of
the Warrants shall only be transferable in accordance with applicable laws. The
Warrants may only be exercised in the manner required by the Warrant Certificate
and the Exercise Form attached thereto. Any securities acquired pursuant to this
exercise of Warrants shall be subject to applicable hold periods and any
certificate representing such securities may bear restrictive legends, each in
accordance with the Warrant Indenture between the Company and Computershare
Trust Company of Canada that governs the Warrants and the Warrant
Certificate.

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