Document:

Exhibit 4.1

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
NOVEMBER 17,, 2007.

WITHOUT
PRIOR WRITTEN APPROVAL OF THE TORONTO STOCK EXCHANGE AND COMPLIANCE WITH ALL
APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE AND THE SECURITIES ISSUABLE UPON THE EXERCISE THEREOF MAY NOT BE
SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE
FACILITIES OF THE TORONTO STOCK EXCHANGE “(TSX”) OR OTHERWISE IN CANADA OR TO
OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL NOVEMBER 14, 2007.

THIS WARRANT AND THE SECURITIES DELIVERABLE UPON
EXERCISE HEREOF NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES
LAWS.  THESE SECURITIES MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY, (A) TO THE COMPANY, (B)
OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE
U.S. SECURITIES ACT, (C) INSIDE THE UNITED STATES PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE U.S. SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES
ACT ON THE CONDITION THAT THE HOLDER HAS. PRIOR TO SUCH SALE, FURNISHED TO THE
COMPANY AN OPTION OF COUNSEL AS TO THE AVAILIBILITY OF THE EXEMPTION REASONABLY
SATISFACTORY TO THE COMPANY, OR (D) PURSANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE U.S. SECURITIES ACT, AND IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE STATE SECURITIES LAWS IN THE UNITED STATES OR SECRUTIES LAWS OF
ANY OTHER APPLICABLE JURISDICTIONS. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH
TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.

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

COMMON
STOCK PURCHASE WARRANT

ALLIED
NEVADA GOLD CORP.

	
  Warrants: 

  	
   

  	
   

  	
  Issuance Date: July 16, 2007

  

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received,                         
(the “Holder”), is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time
on or after the Issuance Date (as indicated above) and on or prior to 5:00 p.m.
(Nevada time) (“Expiry Time”) on July 16, 2009 (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Allied Nevada Gold
Corp., a Delaware corporation (the “Company”), up to 

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shares (the “Warrant Shares”) of common stock, par value $0.001
per share, of the Company (the “Common Stock”).  The purchase price of one share of Common
Stock under this Warrant shall be equal to the Exercise Price, as defined in
Section 2(c).

Section 1.                                            Definitions.  Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Subscription
Agreement (the “Subscription Agreement”), dated July 5th, 2007, among the Company and the
purchasers signatory thereto.

Section 2.                                            Exercise.

a)                                      Exercise
of Warrant.  Exercise of the purchase
rights represented by this Warrant may be made, in whole or in part, at any
time or times on or before the Termination Date by delivery to the Company of a
duly executed facsimile copy of the Notice of Exercise Form annexed  hereto (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at
the address of such Holder appearing on the books of the Company); and, within
three Business Days of the date said Notice of Exercise is delivered to the
Company, the Company shall have received 
payment of the aggregate Exercise Price of the shares thereby purchased
by wire transfer or cashier’s check drawn on a United States or Canadian
bank.  Notwithstanding anything herein to
the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within
three Business Days of the date the final Notice of Exercise is delivered to
the Company.  Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. 
The Holder and the Company shall maintain records showing the number of
Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to
any Notice of Exercise Form within one Business Day of receipt of such
notice.  In the event of any dispute or
discrepancy, the records of the Company shall be controlling and determinative
in the absence of manifest error.  The
Holder and any assignee, by acceptance of this Warrant, acknowledge and agree
that, by reason of the provisions of this paragraph, following the purchase of
a portion of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than the amount
stated on the face hereof.

b)                                     Acceleration
of Expiry.  In the event the closing
price of the Common Shares exceeds CDN$11.50 for twenty (20) consecutive
trading days at any time on the TSX, the Company may, by written notice to the
Holder, accelerate the Expiry Time to the date which is thirty (30) days from
delivery of such notice, following which the Warrants will be of no further
force and effect.

c)                                      Exercise
Price.  The exercise price per share
of the Common Stock under this Warrant shall be Cdn.$5.75, subject to
adjustment hereunder (the “Exercise Price”).

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d)                                     Exercise
Limitations.  The Company shall not
effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise,
such Holder (together with such Holder’s Affiliates (as such term is defined
under Rule 144 of the U.S. Securities Act), and any other person or entity
acting as a group together with such Holder or any of such Holder’s
Affiliates), as set forth on the applicable Notice of Exercise, would
beneficially own in excess of the Beneficial Ownership Limitation (as defined
below).  For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by such
Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which
would be issuable upon (A) exercise of the remaining, nonexercised portion of
this Warrant beneficially owned by such Holder or any of its Affiliates and (B)
exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other Warrants)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by such Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for purposes
of this Section 2(c)(i), beneficial ownership shall be calculated in accordance
with Section 13(d) of the United States Securities Exchange Act of 1934 (the “U.S.
Exchange Act”) and the rules and regulations promulgated thereunder, it being
acknowledged by a Holder that the Company is not representing to such Holder
that such calculation is in compliance with Section 13(d) of the U.S. Exchange
Act and such Holder is solely responsible for any schedules required to be
filed in accordance therewith.  To the
extent that the limitation contained in this Section 2(c) applies, the
determination of whether this Warrant is exercisable (in relation to other
securities owned by such Holder together with any Affiliates) and of which a
portion of this Warrant is exercisable shall be in the sole discretion of a
Holder, and the submission of a Notice of Exercise shall be deemed to be each
Holder’s determination of whether this Warrant is exercisable (in relation to
other securities owned by such Holder together with any Affiliates) and of which
portion of this Warrant is exercisable, in each case subject to such aggregate
percentage limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. 
In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the U.S. Exchange
Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(c), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more
recent public announcement by the Company or (z) any other notice by the
Company or the Company’s transfer agent setting forth the number of shares of
Common Stock outstanding.  Upon the
written or oral request of a Holder, the Company shall within two Business Days
confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding.  In any case, the
number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including
this Warrant, by such Holder or its Affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation”
shall be 4.99% of 

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the number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock issuable upon exercise
of this Warrant.  The Beneficial
Ownership Limitation provisions of this Section 2(c)(i) may be waived by such
Holder, at the election of such Holder, upon not less than 61 days’ prior
notice to the Company to change the Beneficial Ownership Limitation to 9.99% of
the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon exercise of this Warrant,
and the provisions of this Section 2(c) shall continue to apply.  Upon such a change by a Holder of the
Beneficial Ownership Limitation from such 4.99% limitation to such 9.99%
limitation, the Beneficial Ownership Limitation may not be further waived by
such Holder.  The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(c)(i) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation herein contained or to make
changes or supplements necessary or desirable to properly give effect to such
limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.

e)                                      Mechanics
of Exercise.

i.                  Authorization
of Warrant Shares.  The Company
covenants that all Warrant Shares which may be issued upon the exercise of the
purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant, be duly authorized, validly issued, fully
paid and nonassessable and free from all taxes, liens and charges created by
the Company in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue).

ii.               Delivery
of Certificates Upon Exercise. 
Certificates for shares purchased hereunder shall be delivered by the
transfer agent of the Company to the Holder to the address specified by the
Holder in the Notice of Exercise within 3 Business Days from the delivery to
the Company of the Notice of Exercise Form, surrender of this Warrant (if
required) and payment of the aggregate Exercise Price as set forth above (“Warrant
Share Delivery Date”).  This Warrant
shall be deemed to have been exercised on the date the Exercise Price is
received by the Company.  The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of
record of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price and all taxes required to be
paid by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance
of such shares, have been paid.

iii.            Delivery
of New Warrants Upon Exercise.  If
this Warrant shall have been exercised in part, the Company shall, at the
request of a Holder and upon surrender of this Warrant certificate, at the time
of 

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delivery of the certificate or certificates representing Warrant
Shares, deliver to Holder a new Warrant evidencing the rights of Holder to
purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

iv.           Rescission
Rights.  If the Company fails to
cause its transfer agent to transmit to the Holder a certificate or
certificates representing the Warrant Shares pursuant to this Section 2(d)(iv)
by the Warrant Share Delivery Date, then the Holder will have the right to
rescind such exercise.

v.              No
Fractional Shares or Scrip.  No fractional
shares or scrip representing fractional shares shall be issued upon the
exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

vi.           Charges,
Taxes and Expenses.  Issuance of
certificates for Warrant Shares shall be made without charge to the Holder for
any issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be paid by
the Company, and such certificates shall be issued in the name of the Holder or
in such name or names as may be directed by the Holder; provided, however,
that in the event certificates for Warrant Shares are to be issued in a name
other than the name of the Holder, this Warrant when surrendered for exercise
shall be accompanied by the Assignment Form attached hereto duly executed by
the Holder; and the Company may require, as a condition thereto, the payment of
a sum sufficient to reimburse it for any transfer tax incidental thereto.

vii.        Closing
of Books.  The Company will not close
its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

viii.     Exercise
Mechanics:  The Warrants and the Warrant Shares issuable upon exercise
thereof have not been registered under the U.S. Securities Act or the
securities laws of any state of the United States, and a holder of any Warrant
may only exercise the right to purchase Warrant Shares issuable upon the
exercise of the Warrants the circumstances noted below:

A.                                   exercise
such Warrants, if the holder is a purchaser who is not (A) a resident of the
United States or (B)  a U.S. Person (a “U.S.
Purchaser”) and the holder delivers a duly completed and executed Notice of
Exercise certifying that 

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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 under the U.S. Securities
Act (“Regulation S”); (5) acknowledges that the Warrant Shares issuable upon
exercise of the Warrants are “restricted securities” as defined in Rule 144 of
the U.S. Securities Act and upon the issuance thereof, and until such time as
the same is no longer required under the applicable requirements of the
Securities Act or applicable U.S. state laws and regulations, the certificates
representing the Warrant Shares will bear a restrictive legend; and (6)
acknowledges that the Company shall refuse to register any transfer of the
Warrant Shares not made 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 under the U.S. Securities Act; and (7)
neither the Company nor the holder has engaged in any “directed selling efforts”
(as defined in Regulation S) in the United States; or

B.                                     exercise
such Warrants in a transaction that does not require registration under the
U.S. Securities Act or any applicable U.S. state laws and regulations and the
holder has (A) delivered a duly completed and executed Notice of Exercise
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 or

C.                                     exercise
such Warrants, if the holder has delivered a duly completed and executed Notice
of Exercise certifying that the holder is the original subscriber for the
Warrants in the United States and, (i) is an “accredited investor” (as such
term is defined in Rule 501(a) of Regulation D under the U. S Securities act (
an “Accredited Investor”), exercising the Warrant for its own account of the
account of an Accredited Investor over which I exercises sole investment
discretion, and (ii) agrees to the restrictions or transfer and resale more
fully described in the Warrant.

ix.             And in
the case of any of A-C above, the holder certifies in accordance with the
Notice of Exercise that such holder (i) has had access to such current public
information concerning the Company as it 

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considered public information the Company as it considered necessary in
connection with its investment registered under the U. S. Securities Act Leg
ending of Certificates Evidencing Warrant Shares: The Company shall issue
certificates evidencing Warrant Shares free of restrictive legends, as
applicable, if there is an effective registration statement (“Registration
Statement”) under the U.S. Securities Act registered such Warrant Shares for resale
and holder presents to the Company that such exercise is in connection with a
sale and the holder has complied or will comply with the applicable prospectus
delivery requirements and applicable securities laws.  Except as otherwise provided in this subsection
2(d) (ix), certificates representing Warrant Shares issued pursuant to the
exercise of this Warrant shall bear the following legends as long as required
pursuant to applicable law;

“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES
LAWS.  THESE SECURITIES MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY, (A) TO THE COMPANY, (B) OUTSIDE
THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S.
SECURITIES ACT, (C) INSIDE THE UNITED STATES PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE U.S. SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES
ACT ON THE CONDITION THAT THE HOLDER HAS. PRIOR TO SUCH SALE, FURNISHED TO THE
COMPANY AN OPTION OF COUNSEL AS TO THE AVAILIBILITY OF THE EXEMPTION REASONABLY
SATISFACTORY TO THE COMPANY, OR (D) PURSANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE U.S. SECURITIES ACT, AND IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE STATE SECURITIES LAWS IN THE UNITED STATES OR SECRUTIES LAWS OF ANY
OTHER APPLICABLE JURISDICTIONS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE
CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE
CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.THE SECURITIES REPRESENTED
BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH
TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.”

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If the Common
Shares are also then listed on the Toronto Stock Exchange certificates
representing the Warrant Shares will also bear the following legend

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE [TORONTO STOCK EXCHANGE (“TSX”)];
HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF TSX
SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE
REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF
TRANSACTIONS ON TSX.”

Section 3.                                            Certain
Adjustments.

a)                                      Stock
Dividends and Splits.  If the
Company, at any time while this Warrant is outstanding: (A) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its
Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock (which, for avoidance of doubt, shall not include any
shares of Common Stock issued by the Company upon exercise of this Warrant),
(B) subdivides outstanding shares of Common Stock into a larger number of
shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted.  Any adjustment made pursuant to this Section
3(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification.

b)                                     INTENTIONALLY DELETED.

c)                                      Pro
Rata Distributions.  If the Company,
at any time prior to the Termination Date, shall distribute to all holders of
Common Stock (and not to Holders of the Warrants) evidences of its indebtedness
or assets (including cash and cash dividends and, excluding dividend offered in
the ordinary course) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to Section 3(a)),
then in each such case the Exercise Price shall be adjusted by multiplying the
Exercise Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution by a
fraction of which the denominator shall be the Volume Wieghted Average Price (“VWAP”)
as of the Business Day immediately prior to the record date mentioned above,
and of which the numerator shall be such VWAP as of the Business Day
immediately prior to such record date less 

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the then per share fair market value at such record date of the portion
of such assets or evidence of indebtedness so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors
in good faith subject to TSX approval. 
In either case the adjustments shall be described in a statement
provided to the Holder of the portion of assets or evidences of indebtedness so
distributed or such subscription rights applicable to one share of Common
Stock.  Such adjustment shall be made
whenever any such distribution is made and shall become effective immediately
after the record date mentioned above.

d)                                     Fundamental
Transaction.  If, at any time while
this Warrant is outstanding, (A) the Company effects any merger or
consolidation of the Company with or into another Person, (B) the Company effects
any sale of all or substantially all of its assets in one or a series of
related transactions, (C) any tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities,
cash or property, or (D) the Company effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a “Fundamental Transaction”), then, upon any
subsequent exercise of this Warrant, the Holder shall have the right to
receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction,
at the option of the Holder, (a) upon exercise of this Warrant, the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of
assets by a Holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such event or (b) if the Company is
acquired in an all cash transaction, cash equal to the value of this Warrant as
determined in accordance with the Black-Scholes option pricing formula.  For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction.  To the extent
necessary to effectuate the foregoing provisions, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to exercise such warrant into Alternate Consideration. The terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include
terms requiring any such successor or surviving entity to comply with the
provisions of this Section 3(e) and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction.

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e)                                      Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of
a given date shall be the sum of the number of shares of Common Stock
(excluding treasury shares, if any) issued and outstanding.

f)                                        Notice
to Holder.

i.                  Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any
provision of this Section 3, the Company shall promptly mail to the Holder a
notice setting forth the Exercise Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

ii.               Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend
(or any other distribution in whatever form) on the Common Stock; (B) the
Company shall declare a special nonrecurring cash dividend on or a redemption
of the Common Stock; (C) the Company shall authorize the granting to all
holders of the Common Stock rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights; (D) the approval of any
stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the
assets of the Company, of any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property; (E) the Company
shall authorize the voluntary or involuntary dissolution, liquidation or winding
up of the affairs of the Company; then, in each case, the Company shall cause
to be mailed to the Holder at its last address as it shall appear upon the
Warrant Register of the Company, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be
taken, the date as of which the holders of the Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close,
and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice.  The Holder is entitled
to exercise this Warrant during the 20-day period commencing on the date of
such notice to the effective date of the event triggering such notice.

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Section 4.                                            Transfer
of Warrant.

a)                                      Transferability.  Subject to compliance with any applicable
securities laws and the conditions set forth in Section 4(d) hereof, this
Warrant and all rights hereunder (including, without limitation, any
registration rights) are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A
Warrant, if properly assigned, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

b)                                     New
Warrants. This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as
to any transfer which may be involved in such division or combination, the
Company shall execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with such notice.

c)                                      Warrant
Register. The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time.  The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual notice to the contrary.

d)                                     Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant
shall not be registered pursuant to an effective registration statement under
the U.S. Securities Act and under applicable state securities or blue sky laws,
the Company may require, as a condition of allowing such transfer, that (i) the
Holder or transferee of this Warrant, as the case may be, furnish to the
Company a written opinion of counsel (which opinion shall be in form, substance
and scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the U.S.
Securities Act and under applicable state securities or blue sky laws, and (ii)
the Holder or transferee execute and deliver to the Company an investment
letter in form and substance acceptable to the Company, including an agreement
by the transferee to comply with the restrictions on transfer and other restrictions
set forth in the Warrant, an acknowledgement by the transferee that the Warrant
so transferred shall bear restrictive legends, as applicable, substantially in
the form of those on the face of this Warrant, and (iii) the transferee be an “accredited
investor” as defined in Rule 501(a) promulgated under the U.S. Securities Act.

 11
 

Section 5.                                            Miscellaneous.

a)                                      No
Rights as Shareholder Until Exercise. 
This Warrant does not entitle the Holder to any voting rights or other
rights as a shareholder of the Company prior to the exercise hereof as set
forth in Section 2(d)(ii).

b)                                     Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that
upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and
dated as of such cancellation, in lieu of such Warrant or stock certificate.

c)                                      Saturdays,
Sundays, Holidays, etc.  If the last
or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be
taken or such right may be exercised on the next succeeding Business Day.

d)                                     Authorized
Shares.

The Company
covenants that during the period the Warrant remains outstanding it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. 
The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of executing
stock certificates to execute and issue the necessary certificates for the
Warrant Shares upon the exercise of the purchase rights under this
Warrant.  The Company will take all such
reasonable action as may be necessary to assure that such Warrant Shares may be
issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the trading market upon which the Common
Stock may be listed.

Except and to the
extent as waived or consented to by the Holder, the Company shall not by any
action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of
all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment.  Without limiting the
generality of the foregoing, the Company will (a) not increase the par value of
any Warrant Shares above the amount payable therefor upon such exercise
immediately prior to such increase in par value, (b) take all such action as
may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the exercise of
this Warrant, and (c) use commercially reasonable efforts to obtain all such 

 12
 

authorizations,
exemptions or consents from any public regulatory body having jurisdiction
thereof as may be necessary to enable the Company to perform its obligations
under this Warrant.

Before taking any
action which would result in an adjustment in the number of Warrant Shares for
which this Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

e)                                      Jurisdiction.
All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the
provisions of the Subscription Agreement.

f)                                        Restrictions.  The Holder acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state, provincial and federal securities
laws.

g)                                     Nonwaiver
and Expenses.  No course of dealing
or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights,
powers or remedies, notwithstanding the fact that all rights hereunder
terminate on the Termination Date.  If
the Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall
pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts
due pursuant hereto or in otherwise enforcing any of its rights, powers or
remedies hereunder.

h)                                     Notices.  Any notice, request or other document
required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Subscription
Agreement.

i)                                         Limitation
of Liability.  No provision hereof,
in the absence of any affirmative action by Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or privileges
of Holder, shall give rise to any liability of Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

j)                                         Remedies.  Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

k)                                      Successors
and Assigns.  Subject to applicable
securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and 

 13
 

be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The
provisions of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant and shall be enforceable by any such Holder
or holder of Warrant Shares.

l)                                         Amendment.  This Warrant may be modified or amended or
the provisions hereof waived with the written consent of the Company and the
Holder.

m)                                   Severability.  Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

n)                                     Headings.  The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

o)                                     Counterparts
and Facsimile.   This Warrant may be
executed in any number of counterparts and by facsimile, each of which so
executed shall constitute an original and all of which taken together shall
form one and the same Warrant.

********************

REMAINDER OF PAGE
LEFT INTENTIONALLY BLANK

 14
 

IN WITNESS
WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized as of the date first above indicated.

	
   

  	
  ALLIED NEVADA GOLD CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hal D. Kirby

  
	
   

  	
   

  	
  Title: Vice President and Chief Financial Officer

  

 

 15
 

NOTICE
OF EXERCISE

TO:                            ALLIED
NEVADA GOLD CORP.

The undersigned holder
of the within Warrant Certificate, hereby exercises certain Warrants (the “Exercised
Warrants”) evidenced thereby and hereby subscribes for a number of Common
Shares of Allied Nevada Gold Corp. equal to such number of Common Shares or
number or amount of other securities or property, or combination thereof, to
which such exercise entitles him under the provisions of the Warrant at an aggregate
price equal to the product of the Exercise Price and the number of Exercised
Warrants, and on the terms specified in such Warrant Certificate, and in
payment therefor, delivers herewith a bank draft, certified cheque or money
order payable to Allied Nevada Gold Corp..  in lawful money of the United
States.  Capitalized terms not defined
herein shall have the definitions set forth in the within Warrant Certificate.

The undersigned
represents that it (A) has had access to such current public information
concerning Allied Nevada Gold Corp. as it considered necessary in connection
with its investment decision and (B) understands that 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”).

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

A.                                   is not a
U.S. Purchaser and it (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
Subscription 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 U.S.
Securities Act and upon the issuance thereof, and until such time as the same
is no longer required under the applicable requirements of the U.S. Securities
Act or applicable U.S. state laws and regulations, the certificates
representing the Common Shares will bear a restrictive legend; and (6) 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 U.S. Securities Act, or pursuant to an available
exemption from registration under the U.S. Securities Act; and (7) neither the
Company nor the holder has not engaged in any “directed selling efforts” (as
defined in Regulation S) in the United States.

B.                                     the
undersigned is delivering a written opinion of United States counsel or a written
confirmation from the Company to the effect that the Common Shares to 

 16
 

be delivered upon
exercise hereof have been registered under the U.S Securities Act or are exempt
from registration thereunder.

C.                                 the
undersigned is the original subscriber for the Warrants in the Unites States
and (i) as an “accredited investor” (as such term is defined in Rule 501(a) of
Regulation D under the U. S. Securities Act (an “Accredited Investor”)
exercising the Warrant for its own account or the account of an Accredited
Investor over which it exercises sole investment discretion, and (ii) agrees to
the restrictions on transfer and resale more fully described in the Warrant.

(If there is an effective Registration Statement
and holder is making such exercise in connection with a sale pursuant to the
Registration statement, check the following Box, if applicable)

o                                    The
undersigned hereby represents that if has either sold the shares of common
stock to be issued hereunder or intends to sell such common stock within 10 business
days of receipt of such common stock in compliance with the Plan of
Distribution set forth in the Registration Statement of the Company filed under
the U. S. Statements of the Company filed under the U.S. Securities Act, in
respect of the common shares and in compliance with applicable securities
laws.  The undersigned hereby requests
that the share certificate representing the common stock be issued without a
restrictive legend.

Unless
the above box above is checked, the undersigned holder understands that the
certificate representing the Company’s Common Shares issued upon exercise of
this Warrant will bear a legend restricting the transfer without registration
under the U.S. Securities Act and applicable state securities laws
substantially the form set forth in Section 2(e)(x) of the Warrant certificate.

Name:

Please print or type name
and address (including

postal code)

 

Address:

Number of Warrants being
Exercised:

 

DATED
this                       
day
of                 ,

 

	
  Signature

  guaranteed by:

  
	
   

  	
  Name of registered holder

  (please print)

  

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature
  of or on behalf of

  

 

 17
 

 

	
   

  	
  registered
  holder

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Office,
  Title or other Authorization (if

  
	
   

  	
  holder
  not an individual)

  

 

 18
 

THE WARRANT REPRESENTED
BY THIS CERTIFICATE IS SUBJECT TO TRANSFER RESTRICTIONS AND OTHER PROVISIONS
CONCERNING TRANSFER AS SET FORTH IN THE WARRANT CERTIFICATE.

ASSIGNMENT
FORM

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [         ]
all of or [            ]
shares of the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

	
  

  	
   whose address
  is

  
	
   

  	
   

  
	
   

  	
  ,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated: 

  	
   

  	
  ,

  	
   

  
	
   

  	
   

  
	
   

  	
  Holder’s
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Holder’s
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  
												

 

NOTE:  The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank or trust company.  Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 19Exhibit
4.2

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
TRADE THE SECURITY BEFORE NOVEMBER 17, 2007.

WITHOUT PRIOR WRITTEN APPROVAL OF THE TORONTO STOCK
EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE
SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON THE
EXERCISE THEREOF MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED
ON OR THROUGH THE FACILITIES OF THE TORONTO STOCK EXCHANGE (“TSX”) OR OTHERWISE
IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL NOVEMBER 17,
2007.

THIS WARRANT AND THE SECURITIES DELIVERABLE UPON
EXERCISE HEREOF NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES
LAWS.  THESE SECURITIES MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES
ACT, (C) INSIDE THE UNITED STATES PURSUANT TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE U.S. SECURITIES ACT OR ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT ON THE
CONDITION THAT THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN
OPINION OF COUNSEL AS TO THE AVAILIBILITY OF THE EXEMPTION REASONABLY
SATISFACTORY TO THE COMPANY, OR (D) PURSANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE U.S. SECURITIES ACT, AND IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE STATE SECURITIES LAWS IN THE UNITED STATES OR SECRUTIES LAWS OF
ANY OTHER APPLICABLE JURISDICTIONS. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH
TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.

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

FINDER’S
WARRANT TO PURCHASE UNITS

OF

ALLIED
NEVADA GOLD CORP.

(incorporated under the laws of Delaware)

 

	
  Number FW -     

  	
   

  	
  Number of Units represented by this 

  certificate:   114,850

  

 

THIS
CERTIFIES THAT, for value received, Quest Securities Corporation (the
“Holder”), being the registered holder of this finder’s warrant (“Finder’s
Warrant”) is entitled, at any time prior to 5:00 p.m. (Eastern time) on the
Expiry Day (as defined below) to subscribe for and purchase the number of units
(the “Units”) of Allied Nevada Gold Corp. (the “Company”) set forth above on
the basis of one Unit at a price of CDN.$4.60 (the “Exercise Price”) for each
Finder’s Warrant exercised, subject to adjustment as set out herein, by
surrendering to the Company at its principal office, 9604 Prototype Court, Reno, Nevada 89521, U.S.A., this
Finder’s Warrant certificate (the “Finder’s Warrant Certificate”), with a
completed and executed subscription form, and payment in full for the Units
being purchased.

Each Unit shall
consist of one Common Share (as hereinafter defined) in the capital of the
Company (a “Share”) and one Common Share purchase warrant (a “UnitWarrant”).  Each whole UnitWarrant will entitle the
holder thereof to purchase one Common Share (a “UnitWarrant Share) at a price
of CDN.$5.75 in accordance with and pursuant to the terms of the Warrant
Certificate (as defined below) for 24 months following the Closing Date (as
defined herein).

The Company shall
treat the Holder as the absolute owner of this Finder’s Warrant for all
purposes and the Company shall not be affected by any notice or knowledge to
the contrary.  The Holder shall be
entitled to the rights evidenced by this Finder’s Warrant free from all
equities and rights of set-off or counterclaim between the Company and the
original or any intermediate holder and all persons may act accordingly and the
receipt by the Holder of the Units issuable upon exercise hereof shall be a
good discharge to the Company and the Company shall not be bound to inquire
into the title of any such Holder.

1.                                       Definitions:  In this Finder’s Warrant Certificate,
unless there is something in the subject matter or context inconsistent
therewith, the following expressions shall have the following meanings namely:

(a)                                “Adjustment
Period” means the period commencing on the date hereof and ending at the Expiry
Time;

(b)                               “Share”
means the Common Shares issuable upon the exercise of the Finder’s Warrants and
comprising part of the Units;

(c)                                “Business
Day” means any day other than a Saturday, Sunday, legal holiday or a day on
which banking institutions are closed in Toronto, Ontario;

(d)                               “Closing
Date” means July 16,
2007;

(e)                                “Common
Shares” means the common shares of the Company as such shares are constituted
on the date hereof, as the same may be reorganized, reclassified or otherwise
changed pursuant to any of the events set out in Section 11 hereof;

(f)                                  “Company”
means Allied Nevada Gold Corp., a company incorporated under the laws of
Delaware and its successors and assigns;

(g)                               “Current
Market Price” of the Common Shares shall be the weighted average sale price per
share for the Common Shares for the 20 consecutive trading days immediately
before such date on such principal stock exchange or over-the-counter market as
the Common 

 2
 

Shares may then be listed or quoted (as the
case may be).  The weighted average price
shall be determined by dividing the aggregate sale price of all such Common
Shares sold on the said exchange during the said 20 consecutive trading days by
the total number of such Common Shares so sold;

(h)                               “Dividends
Paid in the Ordinary Course” means dividends paid in any financial year of the
Company, whether in (i) cash, (ii) shares of the Company, (iii) warrants or
similar rights to purchase any shares of the Company or property or other
assets of the Company provided that the value of such dividends does not in
such financial year exceed the greater of

(i)                                   150%
of the aggregate amount of dividends paid by the Company on the Common Shares
in the 12-month period ending immediately prior to the first day of such
financial year, and

(ii)                                100%
of the consolidated net earnings from continuing operations of the Company,
before any extraordinary items, for the 12-month period ending immediately
prior to the first day of such financial year (such consolidated net earnings
from continuing operations to be computed in accordance with generally accepted
accounting principles in Canada);

(i)                                   “Exercise
Price” means CDN$4.60 per Unit, subject to adjustment in accordance with
Section 11 hereof;

(j)                                   “Expiry
Day” means that date which is 24 months following the Closing Date;

(k)                                “Expiry
Time” means 5:00 p.m., Toronto time, on the Expiry Day;

(l)                                   “Finder’s
Warrant” means an option exercisable to purchase one Unit at the Exercise Price
until the Expiry Time;

(m)                             “Holder”
means the holder set forth on the first page hereof;

(n)                               “person”
means an individual, corporation, partnership, unincorporated syndicate,
unincorporated organization, trust, trustee, executor, administrator, or other
legal representative, or any group or combination thereof or any other entity
whatsoever;

(o)                               “Trading
Day” with respect to a stock exchange, market or over-the-counter market means
a day on which such stock exchange or over-the-counter market is open for
business;

(p)                               “Unit”
means the unit comprised of the Shares and the Warrants issuable upon the
exercise of the Finder’s Warrants; and

(q)                               “Warrant”
means a Common Share purchase warrant containing the terms and conditions set
forth in the certificate in the form attached hereto as Schedule “A” to be
dated as at the date hereof and comprising part of the Units.

2.                                       Expiry Time:  At the Expiry Time, all rights under the
Finder’s Warrants evidenced hereby, in respect of which the right of
subscription and purchase herein provided for shall not theretofore have been
exercised, shall expire and be of no further force and effect.

 3
 

3.                                       Exercise Procedure:

(a)                                The
Holder may exercise the right to subscribe and purchase the number of Units
herein provided for by delivering to the Company prior to the Expiry Time at
its principal office this Finder’s Warrant Certificate, with the subscription
form attached hereto duly completed and executed by the Holder or its legal
representative or attorney, duly appointed by an instrument in writing in form
and manner satisfactory to the Company, together with a certified cheque or
bank draft payable to or to the order of the Company in an amount equal to the
aggregate Exercise Price in respect of the Finder’s Warrants so exercised.  Any Finder’s Warrant Certificate so
surrendered shall be deemed to be surrendered only upon delivery thereof to the
Company at its principal office set forth herein (or to such other address as
the Company may notify the Holder).

(b)                               Upon
such delivery as aforesaid, the Company shall cause to be issued to the Holder
hereof the Units subscribed for not exceeding those which such Holder is
entitled to purchase pursuant to this Finder’s Warrant Certificate and the
Holder hereof shall become a shareholder of the Company in respect of the
Shares comprising part of the Units subscribed for with effect from the date of
such delivery and shall be entitled to delivery of certificate(s) evidencing
the Shares and Warrants comprising the Units and the Company shall cause such
certificates to be mailed to the Holder hereof at the address or addresses
specified in such subscription as soon as practicable, and in any event within
five Business Days of such delivery.

(c)                                The
certificate(s) representing the Shares and Warrants issued upon such exercise
of the Finder’s Warrants shall bear the following legends, or such other
legend(s) as may be deemed appropriate at the time of such issuance:

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE NOVEMBER 17, 2007.

WITHOUT PRIOR WRITTEN APPROVAL OF THE TORONTO STOCK EXCHANGE
AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON THE EXERCISE
THEREOF MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR
THROUGH THE FACILITIES OF THE TORONTO STOCK EXCHANGE (“TSX”) OR OTHERWISE IN
CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL NOVEMBER 17,
2007.

THE SECURITIES REPRESENTED HEREBY [IF A WARRANT INCLUDE: “AND
THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF”] HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S.
SECURITIES ACT, (C) INSIDE THE UNITED STATES PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE U.S. SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT
ON THE CONDITION THAT THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE
COMPANY AN OPINION OF COUNSEL AS TO THE AVAILIBILITY OF THE EXEMPTION
REASONABLY SATISFACTORY TO THE COMPANY, OR (D) PURSANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, AND IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS IN THE UNITED STATES OR
SECRUTIES LAWS OF ANY OTHER APPLICABLE JURISDICTIONS. THE SECURITIES
REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS
UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES
ACT.

 4
 

[FOR WARRANT CERTIFICATES ONLY] THIS WARRANT AND THE
SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITES ACT OR APPLICABLE STATE SECURITIES LAWS. THIS WARRANT MAY NOT BE
EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED
STATES OR A U.S PERSON UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE
BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES
LEGISLATION OR ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIRMENTS IS AVAILABLE. UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY
REGUALTIONS UNDER THE U.S SECURITIES ACT.

provided that, if at any time, in the opinion of counsel to the
Company, such legends are no longer necessary or advisable under any such
securities laws, or the holder of any such legended certificate, provides the
Company with evidence satisfactory in form and substance to the Company (which
may include an opinion of counsel satisfactory to the Company) to the effect
that such legends are not required, such legended certificate may thereafter be
surrendered to the Company in exchange for a certificate which does not bear
such legend; and, provided, further, that the Company shall issue certificates
evidencing Shares free of restrictive legends, as applicable, if there is an
effective registration statement (“Registration Statement”) under the U.S.
Securities Act registering such Shares for resale and the holder represents to
the Company that such exercise is in connection with a sale and the holder has
complied or will comply with the applicable prospectus delivery requirements
and applicable securities laws.

(d)                               This
Finder’s Warrant may not be exercised in the United States or by or on behalf
of a U.S. Person unless an exemption is available from the registration
requirements of the U.S. Securities Act and applicable state securities laws
and the holder of this Finder’s Warrant has furnished an opinion of counsel of
recognized standing in form and substance satisfactory to the Company to such
effect, or the Company has otherwise satisfied itself as to the availability of
an exemption from such registration requirements.

4.                                      Partial Exercise:  The Holder may subscribe for and purchase a
number of Units less than the number the Holder is entitled to purchase
pursuant to this Finder’s Warrant Certificate. In the event of any such
subscription prior to the Expiry Time, the Holder shall in addition be entitled
to receive, without charge, a new Finder’s Warrant Certificate in respect of
the balance of the Units which the Holder was entitled to subscribe for
pursuant to this Finder’s Warrant Certificate and which were then not
purchased.

5.                                      No Fractional Shares:  Notwithstanding any adjustments provided for
in Section 11 hereof or otherwise, the Company shall not be required upon the
exercise of any Finder’s Warrants to issue fractional Shares or Warrants
comprising the Units in satisfaction of its obligations hereunder and, in any
such case, the number of Shares and Warrants issuable upon the exercise of any
Finder’s Warrants shall be rounded down to the nearest whole number.

6.                                      Exchange of Finder’s Warrant Certificates:  This Finder’s Warrant Certificate may be exchanged
for Finder’s Warrant Certificates representing in the aggregate the same number
of Finder’s Warrants and entitling the Holder thereof to subscribe for and
purchase an equal aggregate number of Units at the same Exercise Price and on
the same terms as this Finder’s Warrant Certificate (with or without legends as
may be appropriate).

7.                                      Transfer of Finder’s Warrants:  Subject to applicable law, the Holder may not
transfer the within Finder’s Warrants except to a subsidiary or to an entity of
which the Holder is a subsidiary. Subject to the foregoing, the Company shall
issue and mail as soon as practicable, and 

 5
 

in any event
within five Business Days of such delivery, a new Finder’s Warrant Certificate
(with or without legends as may be appropriate) registered in the name of the
transferee or as the transferee may direct and shall take all other necessary
actions to effect the transfer as directed.

8.                                      Not a Shareholder:  Nothing in this Finder’s Warrant Certificate
or in the holding of a Finder’s Warrant evidenced hereby shall be construed as
conferring upon the Holder any right or interest whatsoever as a shareholder of
the Company.

9.                                      No Obligation to Purchase:  Nothing herein contained or done pursuant
hereto shall obligate the Holder to subscribe for or the Company to issue any
shares or warrants except those shares and warrants in respect of which the
Holder shall have exercised its right to purchase hereunder in the manner
provided herein.

10.                                Covenants:

(a)                                The
Company covenants and agrees that so long as any Finder’s Warrants evidenced
hereby remain outstanding, it shall reserve and there shall remain unissued out
of its authorized capital a sufficient number of Shares to satisfy the right of
purchase herein provided for, it will cause the Shares comprising part of the
Unit subscribed for and purchased in the manner herein provided to be issued
and delivered as directed and such Shares shall be issued as fully paid and
non-assessable Common Shares and the holders thereof shall not be liable to the
Company or to its creditors in respect thereof.

(b)                               The
Company covenants and agrees that sufficient Warrants shall be created,
allotted and reserved for issuance to satisfy the right of purchase herein
provided for, and that the Warrant Shares to be issued in accordance with and
pursuant to the terms of the Warrant Certificate shall be allotted and reserved
for issuance, and the Company will cause the Warrants comprising part of the
Units subscribed for and purchased herein provided to be issued and delivered
as directed and the holders thereof shall not be liable to the Company or its
creditors in respect thereof.

(c)                                The
Company shall use all reasonable best efforts to preserve and maintain its
corporate existence and to ensure that the Company shall make all requisite
filings under applicable securities legislation necessary to remain a reporting
issuer not in default.

(d)                               The
Company will do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered, all other acts, deeds and assurances in
law as may be reasonably required for the better accomplishing and effecting of
the intentions and provisions of this Finder’s Warrant Certificate.

11.                                Adjustments:

(a)                                The
rights of the holder of this Finder’s Warrant, including the number of Units
issuable upon the exercise of such Finder’s 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.

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

 6
 

(i)                                   Share
Reorganization:  If and whenever at
any time during the Adjustment Period, the Company shall (A) subdivide,
redivide or change the outstanding Common Shares into a greater number of
Common Shares, (B) consolidate, combine or reduce the outstanding Common Shares
into a lesser number of Common Shares, or (C) fix a record date for the issue
of Common Shares or securities convertible into or exchangeable for Common
Shares to all or substantially all of the holders of Common Shares by way of a
stock dividend or other distribution other than a Dividend Paid in the Ordinary
Course, then, in each such event, the Exercise Price shall, 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
Exercise Price in effect immediately prior to such date by a fraction, of which
the numerator shall be the total number of Common Shares outstanding on such date
before giving effect to such event, and of which the denominator shall be the
total number of Common Shares outstanding on such date after giving effect to
such event. Such adjustment shall 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 paragraphs
11(b)(i) and (ii) hereof.

(ii)                                Rights
Offering:  If and whenever at any
time during the Adjustment Period, the Company 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 such record date, then
the Exercise Price shall be adjusted immediately after such record date so that
it will equal the rate determined by multiplying the Exercise Price in effect
on such record date by a fraction, of which the numerator shall be the total
number of Common Shares outstanding on such record date plus the number of
Common Shares equal to the number arrived at by dividing the aggregate price of
the total number of additional Common Shares so offered for subscription or
purchase (or the aggregate conversion or exchange price of the convertible or
exchangeable securities so offered) by such Current Market Price, and of which
the denominator 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 Company or any subsidiary of the Company
shall be deemed not to be outstanding for the purpose of any such
computation.  Such adjustment shall be
made successively whenever such a record date is fixed, provided that if two or
more such record dates referred to in this paragraph 11(b)(ii) 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 Exercise Price shall then be readjusted to the
Exercise Price 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.

 7
 

(iii)                             Distribution:  If and whenever at any time during the
Adjustment Period, the Company 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 Company 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 of the Company (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 and if such distribution does not constitute a Dividend
Paid in the Ordinary Course, or fall under clauses (i) or (ii) above, the
Exercise Price will be adjusted immediately after such record date so that it
will equal the rate determined by multiplying the Exercise Price in effect on
such record date by a fraction, of which the numerator 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 Company 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 denominator 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 Company or any subsidiary of the
Company shall be deemed not to be outstanding for the purpose of any such
computation.  Such adjustment shall 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 this paragraph 11(b)(iii)
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 Exercise Price shall then be readjusted to the Exercise
Price 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.

(c)                                 Reclassifications:  If and whenever at any time during the
Adjustment Period, there is (A) any reclassification of or amendment to the
outstanding Common Shares, any change of the Common Shares into other shares or
any other reorganization of the Company (other than as described in subsection
11(b) hereof), (B) any consolidation, amalgamation, arrangement, merger or
other form of business combination of the Company with or into any other
corporation resulting in any reclassification of the outstanding Common Shares,
any change of the Common Shares into other shares or any other reorganization
of the Company, or (C) any sale, lease, exchange or transfer of the undertaking
or assets of the Company as an entirety or substantially as an entirety to
another corporation or entity, 

 8
 

then, in each
such event, the Holder of this Finder’s Warrant which is thereafter exercised
shall be entitled to receive, and shall accept, in lieu of the number of Common
Shares to which such Holder was theretofore entitled upon such exercise, 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 thereof, such Holder had been the registered holder of the
number of Common Shares to which such Holder was theretofore entitled upon such
exercise. 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
with respect to the rights and interests thereafter of the Holder of this
Finder’s Warrant certificate to the end that the provisions set forth in this
subsection will thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares or other securities or property
thereafter deliverable upon the exercise of this Finder’s Warrant.  Any such adjustments will be made by and set
forth in an instrument supplemental hereto approved by the directors, acting
reasonably, and shall for all purposes be conclusively deemed to be an
appropriate adjustment.

(d)                                If
at any time during the Adjustment Period any adjustment or readjustment in the
Exercise Price shall occur pursuant to the provisions of subsection 11(b)
or 11(c) of this Finder’s Warrant Certificate, then the number of Units
purchasable upon the subsequent exercise of the Finder’s Warrants shall be
simultaneously adjusted or readjusted, as the case may be, by multiplying the
number of Units purchasable upon the exercise of the Finder’s Warrants
immediately prior to such adjustment or readjustment by a fraction which shall
be the reciprocal of the fraction used in the adjustment or readjustment of the
Exercise Price.

12.                                 Rules Regarding Calculation of Adjustment of Exercise
Price:

(a)                                The
adjustments provided for in Section 11 are cumulative and will, in the case of
adjustments to the Exercise Price, be computed to the nearest whole Unit and
will be made successively whenever an event referred to therein occurs, subject
to the following subsections of this Section 12.

(b)                                No
adjustment in the Exercise Price is required to be made unless such adjustment
would result in a change of at least 1% in the prevailing Exercise Price and no
adjustment in the Exercise Price is required unless such adjustment would
result in a change of at least one one-hundredth of a Finder’s Warrant; provided,
however, that any adjustments which, except for the provisions of this
subsection, would otherwise have been required to be made, will be carried
forward and taken into account in any subsequent adjustments.

(c)                                 No
adjustment in the Exercise Price will be made in respect of any event described
in Section 11, other than the events referred to in clauses 11(1)(c), if the
Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised this Finder’s
Warrant prior to or on the effective date or record date of such event.

(d)                                No
adjustment in the Exercise Price will be made under Section 11 in respect of
the issue from time to time of Common Shares issuable from time to time as
Dividends Paid in the Ordinary Course to holders of Common Shares who exercise
an option or election to receive substantially equivalent dividends in Common
Shares in lieu of receiving a cash dividend.

 9
 

(e)                                 If
at any time a question or dispute arises with respect to adjustments provided
for in Section 11, such question or dispute will be conclusively determined by
the auditor of the Company or, if they are unable or unwilling to act, by such
other firm of independent chartered accountants as may be selected by action of
the directors of the Company and any such determination, subject to regulatory
approval and absent manifest error, will be binding upon the Company and the
Holder. The Company will provide such auditor or chartered accountant with
access to all necessary records of the Company.

(f)                                   In
case the Company after the date of issuance of this Finder’s Warrant takes any
action affecting the Common Shares, other than action described in Section 11,
which in the opinion of the board of directors of the Company would materially
affect the rights of the Holder, the Exercise Price will be adjusted in such
manner, if any, and at such time, by action of the directors of the Company in
their sole discretion, acting reasonably and in good faith, but subject in all
cases to any necessary regulatory approval. Failure of the taking of action by
the directors of the Company so as to provide for an adjustment on or prior to
the effective date of any action by the Company affecting the Common Shares
will be conclusive evidence that the board of directors of the Company has
determined that it is equitable to make no adjustment in the circumstances.

(g)                                If
the Company sets a record date to determine the holders of the Common Shares
for the purpose of entitling them to receive any dividend or distribution or
sets a record date to take any other action and, thereafter and before the
distribution to such shareholders of any such dividend or distribution or the
taking of any other action, decides not to implement its plan to pay or deliver
such dividend or distribution or take such other action, then no adjustment in
the Exercise Price will be required by reason of the setting of such record
date.

(h)                                In
the absence of a resolution of the directors of the Company fixing a record
date for any event which would require any adjustment to this Finder’s Warrant,
the Company will be deemed to have fixed as the record date therefor the date
on which the event is effected.

(i)                                    As
a condition precedent to the taking of any action which would require any
adjustment to this Finder’s Warrant, including the Exercise Price, the Company
shall take any corporate action which may be necessary in order that the
Company or any successor to the Company or successor to the undertaking or
assets of the Company have unissued and reserved in its authorized capital and
may validly and legally issue as fully paid and non-assessable all the shares
or other securities which the Holder is entitled to receive on the full
exercise thereof in accordance with the provisions hereof.

(j)                                    The
Company will from time to time, immediately after the occurrence of any event
which requires an adjustment or readjustment as provided in Section 11,
forthwith give notice to the Holder specifying the event requiring such
adjustment or readjustment and the results thereof, including the resulting
Exercise Price.

(k)                                 The
Company covenants to and in favour of the Holder that so long as this Finder’s
Warrant remains outstanding, it will give notice to the Holder of the effective
date or of its intention to fix a record date for any event referred to in
Section 11 whether or not such action would give rise to an adjustment in the
Exercise Price or the number and type of securities issuable upon the exercise
of the Finder’s Warrants, and, in each case, such notice shall specify the
particulars of such event and the record date and the effective date for such
event; provided that the Company shall only be required to specify in such 

 10
 

notice such
particulars of such event as have been fixed and determined on the date on
which such notice is given. Such notice shall be given not less than 14 days in
each case prior to such applicable record date or effective date.

(l)                                   In
any case in which this Section 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 Company may defer, until the occurrence and
consummation of such event, issuing to the Holder of this Finder’s Warrant, if
exercised after such record date or effective date and before the occurrence
and consummation of such event, the additional Shares, Warrants or other
securities or property issuable upon such exercise by reason of the adjustment
required by such event, provided, however, that the Company will deliver to the
Holder an appropriate instrument evidencing the Holder’s right to receive such
additional Shares, Warrants 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 Shares, Warrants 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 Exercise Date or such later
date as the Holder would, but for the provisions of this subsection, have
become the holder of record of such additional Shares, Warrants or of such
other securities or property.

(m)                             Any
and all adjustments in connection with the exercise price of the Warrants or
the number or type of security issuable upon the exercise of the Warrants shall
be made in accordance with the terms of the Warrant Certificate attached hereto
as Schedule “A”, whether or not those Warrants have been issued, provided that
such adjustments do not put the holder in a better position than the holder
would have been in had the holder been a holder of the Warrant at the time of
such adjustment.

13.                                Consolidation and Amalgamation:

(a)                                The
Company shall not enter into any transaction whereby all or substantially all
or its undertaking, property and assets would become the property of any other
corporation (herein called a “successor corporation”) whether by way of
reorganization, reconstruction, consolidation, amalgamation, merger, transfer,
sale, disposition or otherwise, unless prior to or contemporaneously with the
consummation of such transaction the Company and the successor corporation
shall have executed such instruments and done such things as the Company,
acting reasonably, considers necessary or advisable to establish that upon the
consummation of such transaction:

(i)                                   the
successor corporation will have assumed all the covenants and obligations of
the Company under this Finder’s Warrant Certificate, and

(ii)                                the
Finder’s Warrant and the terms set forth in this Finder’s Warrant Certificate
will be a valid and binding obligation of the successor corporation entitling
the Holder, as against the successor corporation, to all the rights of the
Holder under this Finder’s Warrant Certificate.

(b)                               Whenever
the conditions of subsection 13(a) shall have been duly observed and performed
the successor corporation shall possess, and from time to time may exercise,
each and every right and power of the Company under this Finder’s Warrant in
the name of the Company or otherwise and any act or proceeding by any provision
hereof required to be done or performed by any director or officer of the
Company may be done and

 11
 

performed with
like force and effect by the like directors or officers of the successor
corporation.

14.                               Representation and Warranty:  The Company hereby represents and warrants
with and to the Holder that the Company is duly authorized and has the
corporate and lawful power and authority to create and issue this Finder’s
Warrant and the Units issuable upon the exercise hereof and perform its
obligations hereunder and that this Finder’s Warrant represents a valid, legal
and binding obligation of the Company enforceable in accordance with its terms.

15.                               If Share Transfer Books Closed:  The Company shall not be required to
deliver certificates for Shares or Warrants while the share transfer books of
the Company are properly closed, prior to any meeting of shareholders or for
the payment of dividends or for any other purpose and in the event of the
surrender of any Finder’s Warrant in accordance with the provisions hereof and
the making of any subscription and payment for the Units called for thereby
during any such period delivery of certificates for Shares and Warrants may be
postponed for a period not exceeding five Business Days after the date of the
re-opening of said share transfer books provided that any such postponement of
delivery of certificates shall be without prejudice to the right of the Holder,
if the Holder has surrendered the same and made payment during such period, to
receive such certificates for the Shares and Warrants called for after the
share transfer books shall have been re-opened.

16.                               Lost Certificate:  If the Finder’s Warrant Certificate
evidencing the Finder’s Warrants issued hereby becomes stolen, lost, mutilated
or destroyed the Company may, on such terms as it may in its discretion, acting
reasonably, impose, issue and countersign a new Finder’s Warrant Certificate of
like denomination, tenor and date as the Finder’s Warrant Certificate so stolen,
lost mutilated or destroyed.

17.                               Governing Law:  This Finder’s Warrant shall be governed by,
and construed in accordance with, the laws of the State of Delaware without
giving effect to the principles of conflicts of laws thereof.

18.                               Severability:  If any one or more of the provisions or parts
thereof contained in this Finder’s Warrant Certificate should be or become
invalid, illegal or unenforceable in any respect in any jurisdiction, the
remaining provisions or parts thereof contained herein shall be and shall be
conclusively deemed to be, as to such jurisdiction, severable therefrom.

19.                               Headings:  The headings of the articles, sections,
subsections and clauses of this Finder’s Warrant Certificate have been inserted
for convenience and reference only and do not define, limit, alter or enlarge
the meaning of any provision of this Finder’s Warrant Certificate.

20.                               Numbering of Articles, etc.:  Unless otherwise stated, a reference herein
to a numbered or lettered article, section, subsection, clause, subclause or
schedule refers to the article, section, subsection, clause, subclause or
schedule bearing that number or letter in this Finder’s Warrant Certificate.

21.                               Gender: 
Whenever used in this Finder’s Warrant Certificate, words importing the
singular number only shall include the plural, and vice versa, and words
importing the masculine gender shall include the feminine gender.

 12
 

22.                               Day not a Business Day:  In the event that any day on or before which
any action is required to be taken hereunder is not a Business Day, then such
action shall be required to be taken on or before the requisite time on the
next succeeding day that is a Business Day.

23.                               Binding Effect:  This Finder’s Warrant Certificate and all of
its provisions shall enure to the benefit of the Holder, its successors,
assigns and legal personal representatives and shall be binding upon the
Company and its successors.

24.                               Notice: 
Unless herein otherwise expressly provided, a notice to be given
hereunder will be deemed to be validly given if the notice is sent by
telecopier or prepaid same day courier addressed as follows:

(a)                                  If
to the Holder at the latest address of the Holder as recorded on the books of
the Company; and

(b)                                 If
to the Company at:

Allied Nevada Gold Corp.

9604 Prototype Court

Reno, Nevada

89521 USA

Attention:  Scott Caldwell

Fax:  (775) 358 - 4458

24.1                         Facsimile.  This Finder’s Warrant Certificate may be
executed by facsimile, each of which so executed shall constitute an original
Finder’s Warrant Certificate.

 13
 

25.                               Time of Essence:  Time shall be of the essence hereof.

IN
WITNESS WHEREOF the Company has caused this Finder’s Warrant
Certificate to be signed by its duly authorized officer as of this       
day of July,  2007

	
  

  	
  ALLIED NEVADA GOLD CORP.

  
	
   

  	
   

  
	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Hal D. Kirby 

  
	
   

  	
   

  	
   Vice President and Chief Financial

  
	
   

  	
   

  	
   Officer

  

 

 14
 

SUBSCRIPTION
FORM

	
  TO:

  	
   

  	
  Allied Nevada
  Gold Corp.

  
	
   

  	
   

  	
  9604 Prototype Court

  
	
   

  	
   

  	
  Reno, Nevada

  
	
   

  	
   

  	
  89521 USA

  

 

The undersigned holder of the within Finder’s Warrant hereby
irrevocably subscribes for            
Units of Allied
Nevada Gold Corp (the “Company”) pursuant to the within Unit and tenders
herewith a certified cheque or bank draft for $                       
(CDN$4.60 per Unit) in full payment therefor. 
Capitalized terms not defined herein shall have the definitions set
forth in the within Finder’s Warrant Certificate.

The
undersigned represents that it (A) has had access to such current public
information concerning Allied Nevada Gold Corp. as it considered necessary in
connection with its investment decision and (B) understands that 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”).

The undersigned represents, warrants and
certifies as follows (one (only) of the following must be checked):

o                                  A                                     The undersigned holder (i) at the time of
exercise of the Finder’s Warrant is not in the United States; (ii) is not a “U.S.
person” as defined in Regulation S under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”), and is not exercising the Finder’s
Warrant on behalf of a “U.S. person”; (iii) did not execute or deliver this
exercise form in the United States; (iv) agrees not to engage in hedging
transactions with regard to the Shares prior to the expiration of the one-year
distribution compliance period set forth in Rule 903(b)(3) of Regulation S; (v)
acknowledges that the Shares, Warrants and the Warrant Shares issuable upon
exercise of the Warrants are “restricted securities” as defined in Rule 144 of
the U.S. Securities Act and upon the issuance thereof, and until such time as
the same is no longer required under the applicable requirements of the U.S.
Securities Act or applicable U.S. state laws and regulations, the certificates
representing such securities will bear restrictive legends as set forth in
Section 3(c) of the within Finder’s Warrant Certificate; and (vi) acknowledges
that the Company shall refuse to register any transfer of the Shares, Warrants
or Warrant Shares not made 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 under the U.S. Securities Act; and (vii)
neither the Company nor the holder has engaged in any “directed selling efforts”
(as defined in Regulation S) in the United States.

o                                  B                                       The undersigned holder  (i) is an “accredited investor”, as that term
is defined in Regulation D under the U.S. Securities Act (an “Accredited
Investor”), exercising the Finder’s Warrants for its own account or for the
account of an Accredited Investor over which it exercises sole investment
discretion, and (ii) agrees to the restrictions on transfer and resale more
fully described in the Finder’s Warrant Certificate.

o                                  C.                                    The undersigned holder has delivered to
the Company an opinion of counsel (which will not be sufficient unless it is
from counsel of recognized standing and in form and 

 15
 

substance satisfactory to the Company) to
the effect that an exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws is available.

(If there is an effective
Registration Statement and holder is making such exercise in connection with a
sale of Shares pursuant to the Registration Statement, check the following box,
if applicable):

o                                  The undersigned
hereby represents that it has either sold the shares of common stock to be
issued hereunder or intends to sell such common stock within 10 business days
of receipt of such common stock in compliance with the Plan of Distribution set
forth in the Registration Statement of the Company filed under the U.S.
Securities Act, in respect of the common shares and in compliance with
applicable securities laws.  The
undersigned hereby requests that the share certificate representing the common
stock be issued without a restrictive legend.

Unless
the above box is checked, the undersigned holder understands that the
certificate representing the Company’s Shares issued upon exercise of this
Finder’s Warrant will bear a legend restricting the transfer without
registration under the U.S. Securities Act and applicable state securities laws
substantially the form set forth in Section 3(c) of the Finder’s Warrant
Certificate.

DATED
this                      
day of                                        ,
200  .

	
  

  	
  NAME:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Registration 

  instructions:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

              Please
check if the certificates representing the Shares and Warrants are to be
delivered at the office where this Finder’s Warrant Certificate is surrendered,
failing which the Share Certificates and the Warrant Certificates will be
mailed to the address in the registration instructions set out above.

If any Finder’s Warrants represented by this Finder’s
Warrant Certificate are not being exercised, a new Finder’s Warrant Certificate
representing the unexercised Finder’s Warrants will be issued and delivered
with the Share Certificate and Warrant Certificate.

 16
 

Notes:

Certificates will not be registered or delivered to an address in the
United States unless Box B or C above is checked.

If Box C is to be checked, holders are
encouraged to consult with the Company in advance to determine that the legal
opinion tendered in connection with exercise will be satisfactory in form and
substance to the Company.

 17
 

SCHEDULE
“A” – Form of Warrant

(Schedule A begins
on the following page)

 18

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