Document:

Silver Dragon Resources, Inc. - Exhibit 4.2 - Prepared By TNT Filings
Inc.

 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED, SOLD OR TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL ACCEPTABLE TO
THE COMPANY REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER. 

	 	Right to Purchase
    shares of Common Stock
	 	of Silver Dragon
    Resources, Inc. (subject to
	 	adjustment as provided
    herein)

CLASS A COMMON STOCK PURCHASE WARRANT 

	No.	Issue Date:_______ ,
    2006

SILVER DRAGON RESOURCES, INC., a
corporation organized under the laws of the State of Delaware (the "Company"),
hereby certifies that, for value received,
________________________________________, or its assigns (the "Holder"), is
entitled, subject to the terms set forth below, to purchase from the Company at
any time after the Issue Date until 5:00 p.m., E.S.T on the fifth anniversary of
such date (the "Expiration Date"), ________ fully paid and nonassessable shares
of Common Stock at a per share purchase price of  $______. The aforedescribed purchase
price per share, as adjusted from time to time as herein provided, is referred
to herein as the "Purchase Price." The number and character of such shares of
Common Stock and the Purchase Price are subject to adjustment as provided
herein. The Company may reduce the Purchase Price without the consent of the
Holder. Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in that certain Subscription Agreement (the "Subscription
Agreement"), dated _________ ___, 2006, entered into by the Company and
Holders. As used herein the following terms, unless the context otherwise
requires, have the following respective meanings: 

(a) The term "Company" shall mean
Silver Dragon Resources, Inc. and any corporation which shall succeed or assume
the obligations of Silver Dragon Resources, Inc. hereunder. 

(b) For purposes of this Warrant,
"Common Stock" means the Common Stock of the Company, and all other securities
of any class of classes (however designated) of the Company the holders of which
have the right, without limitation as to amount, after payment on any securities
entitled to a preference on dividends or other distributions upon any
dissolution or winding up, either to all or to a share of the balance of
payments upon such dissolution, liquidation or winding up. 

(c) The term "Warrant Shares" shall
mean the Common Stock issuable upon exercise of this Warrant. 

1

This Warrant is subject to the
following terms and conditions: 

1.
Exercise. This Warrant
may be exercised by the Holder hereof on a cash basis (but only on the
conditions hereinafter set forth) as to all or any increment or increments of
the Warrant Shares upon delivery of written notice of intent to exercise in the
form attached hereto as Exhibit "A" to the Company at the Company’s address set
forth below or such other address as the Company shall designate in a written
notice to the Holder hereof, together with this Warrant and cash or bank draft
payable to the Company for the aggregate Purchase Price of the Warrant Shares so
purchased. Upon exercise of this Warrant, the Company shall as promptly as
practicable, and in any event within thirty (30) days thereafter, execute and
deliver to the Holder of this Warrant a certificate or certificates for the
total number of Warrant Shares for which this Warrant is being exercised in such
names and denominations as are requested by such Holder. If this Warrant shall
be exercised with respect to less than all of the Warrant Shares, the Holder
shall be entitled to receive a new Warrant covering the number of Warrant Shares
in respect of which this Warrant shall not have been exercised. 

2.
Covenants and Conditions.
The above provisions are subject to the following: 

(a)
Neither this Warrant nor the Warrant Shares have been registered under the
Securities Act or any state securities laws ("Blue Sky Laws"). This Warrant and
the Warrant Shares have been issued in reliance on an exemption from
registration under the Securities Act provided by Rule 506 promulgated
thereunder, and an exemption from registration under applicable Blue Sky Laws,
and the Warrant and the Warrant Shares may be resold in accordance with such
provisions, in addition to any other rule or statute which may permit such
Warrant and Warrant Shares to be resold. This Warrant has been acquired for
investment purposes and not with a view to distribution or resale and may not be
pledged, hypothecated, sold, made subject to a security interest, or otherwise
transferred without (i) an effective registration statement for such Warrant
under the Securities Act and such applicable Blue Sky Laws, or (ii) an opinion
of counsel reasonably satisfactory to the Company that registration is not
required under the Securities Act or under any applicable Blue Sky Laws.
Transfer of the Warrant Shares issued upon the exercise of this Warrant shall be
restricted in the same manner and to the same extent as the Warrant and the
certificates representing such Warrant Shares shall bear substantially the
following legend: 

  
    THE SHARES REPRESENTED BY THIS CERTIFICATE
    HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
    "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
    OFFERED, SOLD OR TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE
    SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
    EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL ACCEPTABLE
    TO THE COMPANY, REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE
    SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.
    

  

(b) The Company
covenants and agrees that all Warrant Shares that may be issued upon exercise of
this Warrant will, upon issuance and payment therefor, be legally and validly
issued and outstanding, fully paid and nonassessable. The Company shall at all
times reserve and keep available for issuance upon the exercise of this Warrant
such number of authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of this Warrant. 

2

(c)
The Holder hereof and the Company agree to execute such other documents and
instruments as counsel for the Company reasonably deems necessary to effect the
compliance of the issuance of this Warrant and any Warrant Shares issued upon
exercise of this Warrant with applicable federal and state securities laws. In
furtherance of the foregoing, the Holder represents and warrants: 

(i)
The Holder has substantial experience in evaluating and investing in private
placement transactions of securities in companies similar to the Company so that
the Holder is capable of evaluating the merits and risks of its investment in
the Company and has the capacity to protect its own interests; 

(ii)
The Holder is acquiring this Warrant, and will acquire the Warrant Shares, for
investment for its own account and not with a view to, or for resale in
connection with, any distribution thereof. The Holder understands that this
Warrant has not been, and the Warrant Shares will not be, registered under the
Securities Act or any Blue Sky Laws by reason of exemptions from the
registration provisions of the Securities Act and such Blue Sky Laws that depend
upon, among other things, the bona fide nature of the investment intent and the
accuracy of the Holder’s representations; 

(iii)
The Holder is familiar with the provisions of Rule 144 under the Act which
permits the limited resale of restricted securities, subject to the satisfaction
of certain conditions; 

(iv)
The Holder has had an opportunity to discuss the Company’s business, management
and financial affairs with the Company’s management and the opportunity to
review the Company’s facilities, financial statements and any other documents
requested by the Holder. The Holder has also had an opportunity to ask questions
of officers of the Company, which were answered to its satisfaction. 

3.
Adjustment. 

(a) The number of
Warrant Shares purchasable hereunder are subject to adjustment from time to
time, as follows: 

(i)
If the Company at any time subdivides its Common Stock, the number of Warrant
Shares issuable pursuant to this Warrant will be proportionately increased. If
the Company at any time combines its Common Stock, the number of Warrant Shares
issuable pursuant to this Warrant will be proportionately decreased. 

(ii)
If the Company at any time pays a dividend payable in, or make any other
distribution (except any distribution specifically provided for in the foregoing
subsections (i)) of Common Stock, then the number of Warrant Shares issuable
pursuant to this Warrant will be adjusted, from and after the date of
determination of stockholders entitled to receive such dividend or distribution
of stockholders to that number of Warrant Shares determined by multiplying the
number of Warrant Shares issuable immediately prior to such date of
determination by a fraction (i) the numerator of which will be the total number
of shares of Common Stock outstanding immediately after such dividend or
distribution, calculated on a fully diluted basis, and (ii) the denominator of
which will be the total number of shares of Common Stock outstanding immediately
prior to such dividend or distribution, calculated on a fully diluted basis.

3

(iii)
The number of shares reserved for issuance pursuant to this Warrant will
automatically be adjusted without further action by the Company in the event of
any adjustment of the number of Warrant Shares issuable pursuant to this
Warrant. 

(b)
In the event of a merger, consolidation, recapitalization, combination or
exchange of Common Stock occurring after the date hereof pursuant to which the
Company is not the surviving entity (an "Acquisition"), the Company covenants
that it will obtain from the acquiring entity, as a condition to the closing of
such transaction or event, the right for the Holder to exchange this Warrant, at
its sole option and in lieu of exercise hereof, for a warrant to purchase the
equivalent number of shares of the equivalent class of shares of the acquiring
entity on a fully diluted basis. The period of exercise of such new warrant
shall be equal to the remaining duration of the exercise period of this Warrant.
If, as a result of such Acquisition, the shareholders of the Company immediately
prior to such Acquisition own at least a majority of the shares of voting
capital stock, assuming full exercise or conversion of all securities
exercisable for or convertible into such voting capital stock, outstanding after
such Acquisition and are entitled upon liquidation to receive a majority of the
assets of the surviving entity, then the method of calculating the number of
Warrant Shares set forth in the first Paragraph hereof shall remain unaffected;
otherwise, this Warrant shall, after such Acquisition, permit the Holder to
purchase that percentage of Warrant Shares or other consideration of the
acquiring entity which the Holder would be entitled to receive as a result of
such merger, consolidation, recapitalization, combination or exchange of shares
if this Warrant had been exercised in full immediately prior to such merger,
consolidation, recapitalization, combination or exchange of shares (or the
record date, if any, for such transaction or event) for the same aggregate
exercise price as provided for in this Warrant. 

4.
Transfer of Warrant.
Subject to the provisions of Section 2, this Warrant or the Warrant Shares may
be transferred, in whole or in part, to any person or business entity, by
presentation of the Warrant or the Warrant Shares to the Company with written
instructions for such transfer in the form attached hereto as Exhibit "B". Upon
such presentation for transfer, the Company shall promptly execute and deliver a
new Warrant or Warrants in the form hereof in the name of the assignee or
assignees and in the denominations specified in such instructions. The Company
shall pay all expenses in connection with the preparation, issuance and delivery
of Warrants under this Section 4. 

4

5.
Notices. Any and all
notices, elections or demands permitted or required to be made under this
Warrant shall be in writing, signed by the party giving such notice, election or
demand and shall be delivered personally, telecopied, telexed, or sent by
certified mail or nationally recognized courier service (such as Federal
Express), to the other party at the address set forth below, or at such other
address as may be supplied in writing and of which receipt has been acknowledged
in writing. The date of personal delivery, telecopy or telex or one business day
after delivery to such courier service or five business days after mailing, as
the case may be, shall be the date of such notice, election or demand. For the
purposes of this Warrant: 

	 	The address of	 
	 	Holder is:	 
	 	 	 
	 	The address of	 
	 	the Company is:	1121 Steeles Avenue West, Suite 803
	 	 	Toronto, Ontario, M2R 3W7

6.
Amendment and Waiver.
Except as otherwise provided herein, the provisions of this Warrant may be
amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company has
obtained the prior written consent of the Holder. 

7.
Descriptive Headings;
Governing Law. The descriptive headings of the several Sections of this
Warrant are inserted for convenience only and do not constitute a part of this
Warrant. ALL QUESTIONS CONCERNING THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE
OF DELAWARE WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW
PROVISIONS OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION)
THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE
STATE OF DELAWARE. 

5

IN WITNESS WHEREOF, the parties hereto have set their hands as of the
date first above written. 

	 	"COMPANY":
	 	SILVER DRAGON
    RESOURCES INC.
	 	
    Per:_____________________
	 	        
    Marc Hazout – President and C.E.O.
	 	"HOLDER":
	 	
    By:_______________________
	 	       
    Name:

6

Exhibit A 

FORM OF SUBSCRIPTION 

(to be signed only on exercise of Warrant) 

TO: Silver Dragon Resources, Inc. 

The undersigned, pursuant to the provisions set forth in the attached
Warrant, hereby irrevocably elects to purchase (check applicable box): 

___ ________ shares of the Common Stock covered by such Warrant; or 

___ the maximum number of shares of Common Stock covered by such Warrant. 

The undersigned herewith makes payment of the full purchase
price for such shares at the price per share provided for in such Warrant, which
is $___________. Such payment takes the form of a bank draft in th sum of
$__________ in lawful money of the United States. 

The undersigned requests that the certificates for such shares be issued in
the name of, and delivered to
_____________________________________________________ whose address is
_____________________________________________________________________________________
_____________________________________________________________________________________

The undersigned represents and warrants that the representations and
warranties of the undersigned in this Warrant are true and accurate with respect
to the undersigned on the date hereof. 

The undersigned represents and warrants that all offers and
sales by the undersigned of the securities issuable upon exercise of the within
Warrant shall be made pursuant to registration of the Common Stock under the
Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an
exemption from registration under the Securities Act. 

	Dated:___________	_________________________
	 	(Signature must
    conform to name of holder as
	 	specified on the face
    of the Warrant)
	 	 
	 	 
	 	 
	 	(Address)

7

Exhibit B 

FORM OF TRANSFEROR ENDORSEMENT 

(To be signed only on transfer of Warrant) 

For value received, the undersigned
hereby sells, assigns, and transfers unto the person(s) named below under the
heading "Transferees" the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of Silver Dragon Resources,
Inc. to which the within Warrant relates specified under the headings
"Percentage Transferred" and "Number Transferred," respectively, opposite the
name(s) of such person(s) and appoints each such person Attorney to transfer its
respective right on the books of Silver Dragon Resources, Inc. with full power
of substitution in the premises. 

	
    
    Transferees
	
    
    Percentage Transferred
	
    
    Number Transferred

	
     
	
     
	
     

	
     
	
     
	
     

 

 

 

	 	 
	Dated:_________________,________________	______________________________
	 	(Signature must conform to name of holder as
    specified
	 	on the face of the warrant)
	 	 
	Signed in the presence of:	 
	 	 
	______________________________	______________________________
	(Name)	______________________________
	 	(address)
	 	 
	ACCEPTED AND AGREED:	______________________________
	[TRANSFEREE]	______________________________
	 	(address)
	 	 
	______________________________	 
	(Name)Silver Dragon Resources Inc.: Exhibit 4.3 - Prepared by TNT Filings Inc.

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED, SOLD OR TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL ACCEPTABLE TO
THE COMPANY REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER. 

	 	Right to Purchase
    _______ shares of Common Stock of Silver Dragon Resources, Inc. (subject to
    adjustment as provided herein) 

CLASS B COMMON STOCK PURCHASE WARRANT 

	No.                
    	Issue Date:                 
    , 2006

SILVER DRAGON RESOURCES, INC., a
corporation organized under the laws of the State of Delaware (the "Company"),
hereby certifies that, for value received,
________________________________________, or its assigns (the "Holder"), is
entitled, subject to the terms set forth below, to purchase from the Company at
any time after the Issue Date until 5:00 p.m., E.S.T on the fifth anniversary of
such date (the "Expiration Date"), ________ fully paid and nonassessable shares
of Common Stock at a per share purchase price of  $______. The
aforedescribed purchase price per share, as adjusted from time to time as herein
provided, is referred to herein as the "Purchase Price." The number and
character of such shares of Common Stock and the Purchase Price are subject to
adjustment as provided herein. The Company may reduce the Purchase Price without
the consent of the Holder. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Subscription Agreement
(the "Subscription Agreement"), dated
_________ ___, 2006, entered into by the Company and Holders. As used herein the
following terms, unless the context otherwise requires, have the following
respective meanings: 

(a)      
The term "Company" shall mean Silver Dragon Resources, Inc. and any corporation
which shall succeed or assume the obligations of Silver Dragon Resources, Inc.
hereunder. 

(b)      
For purposes of this Warrant, "Common Stock" means the Common Stock of the
Company, and all other securities of any class of classes (however designated)
of the Company the holders of which have the right, without limitation as to
amount, after payment on any securities entitled to a preference on dividends or
other distributions upon any dissolution or winding up, either to all or to a
share of the balance of payments upon such dissolution, liquidation or winding
up. 

(c)      
The term "Warrant Shares" shall mean the Common Stock issuable upon exercise of
this Warrant. 

This Warrant is subject to the
following terms and conditions: 

1.       
Exercise. This Warrant may be exercised by the Holder hereof on a cash basis
(but only on the conditions hereinafter set forth) as to all or any increment or
increments of the Warrant Shares upon delivery of written notice of intent to
exercise in the form attached hereto as Exhibit "A" to the Company at the
Company’s address set forth below or such other address as the Company shall
designate in a written notice to the Holder hereof, together with this Warrant
and cash or bank draft payable to the Company for the aggregate Purchase Price
of the Warrant Shares so purchased. Upon exercise of this Warrant, the Company
shall as promptly as practicable, and in any event within thirty (30) days
thereafter, execute and deliver to the Holder of this Warrant a certificate or
certificates for the total number of Warrant Shares for which this Warrant is
being exercised in such names and denominations as are requested by such Holder.
If this Warrant shall be exercised with respect to less than all of the Warrant
Shares, the Holder shall be entitled to receive a new Warrant covering the
number of Warrant Shares in respect of which this Warrant shall not have been
exercised. 

2.       
Covenants and Conditions. The above provisions are subject to the
following: 

(a)       
Neither this Warrant nor the Warrant Shares have been registered under the
Securities Act or any state securities laws ("Blue Sky Laws"). This Warrant and
the Warrant Shares have been issued in reliance on an exemption from
registration under the Securities Act provided by Rule 506 promulgated
thereunder, and an exemption from registration under applicable Blue Sky Laws,
and the Warrant and the Warrant Shares may be resold in accordance with such
provisions, in addition to any other rule or statute which may permit such
Warrant and Warrant Shares to be resold. This Warrant has been acquired for
investment purposes and not with a view to distribution or resale and may not be
pledged, hypothecated, sold, made subject to a security interest, or otherwise
transferred without (i) an effective registration statement for such Warrant
under the Securities Act and such applicable Blue Sky Laws, or (ii) an opinion
of counsel reasonably satisfactory to the Company that registration is not
required under the Securities Act or under any applicable Blue Sky Laws.
Transfer of the Warrant Shares issued upon the exercise of this Warrant shall be
restricted in the same manner and to the same extent as the Warrant and the
certificates representing such Warrant Shares shall bear substantially the
following legend: 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE
STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR TRANSFERRED UNTIL (i) A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH
PROPOSED TRANSFER. 

(b)       
The Company covenants and agrees that all Warrant Shares that may be issued upon
exercise of this Warrant will, upon issuance and payment therefor, be legally

2

and validly issued and
outstanding, fully paid and nonassessable. The Company shall at all times
reserve and keep available for issuance upon the exercise of this Warrant such
number of authorized but unissued shares of Common Stock as will be sufficient
to permit the exercise in full of this Warrant. 

(c)      
The Holder hereof and the Company agree to execute such other documents and
instruments as counsel for the Company reasonably deems necessary to effect the
compliance of the issuance of this Warrant and any Warrant Shares issued upon
exercise of this Warrant with applicable federal and state securities laws. In
furtherance of the foregoing, the Holder represents and warrants: 

(i)        
The Holder has substantial experience in evaluating and investing in private
placement transactions of securities in companies similar to the Company so that
the Holder is capable of evaluating the merits and risks of its investment in
the Company and has the capacity to protect its own interests; 

(ii)       
The Holder is acquiring this Warrant, and will acquire the Warrant Shares, for
investment for its own account and not with a view to, or for resale in
connection with, any distribution thereof. The Holder understands that this
Warrant has not been, and the Warrant Shares will not be, registered under the
Securities Act or any Blue Sky Laws by reason of exemptions from the
registration provisions of the Securities Act and such Blue Sky Laws that depend
upon, among other things, the bona fide nature of the investment intent and the
accuracy of the Holder’s representations; 

(iii)        The Holder is familiar with the
provisions of Rule 144 under the Act which permits the limited resale of
restricted securities, subject to the satisfaction of certain conditions; 

(iv)       
The Holder has had an opportunity to discuss the Company’s business, management
and financial affairs with the Company’s management and the opportunity to
review the Company’s facilities, financial statements and any other documents
requested by the Holder. The Holder has also had an opportunity to ask questions
of officers of the Company, which were answered to its satisfaction. 

3.       
Adjustment. 

(a)        
The number of Warrant Shares purchasable hereunder are subject to adjustment
from time to time, as follows: 

(i)         
If the Company at any time subdivides its Common Stock, the number of Warrant
Shares issuable pursuant to this Warrant will be proportionately increased. If
the Company at any time combines its Common Stock, the number of Warrant Shares
issuable pursuant to this Warrant will be proportionately decreased. 

(ii)        
If the Company at any time pays a dividend payable in, or make any other
distribution (except any distribution specifically provided for in the foregoing
subsections (i)) of Common Stock, then the number of Warrant Shares 

3

issuable pursuant to
this Warrant will be adjusted, from and after the date of determination of
stockholders entitled to receive such dividend or distribution of stockholders
to that number of Warrant Shares determined by multiplying the number of Warrant
Shares issuable immediately prior to such date of determination by a fraction (i)
the numerator of which will be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution, calculated on a
fully diluted basis, and (ii) the denominator of which will be the total number
of shares of Common Stock outstanding immediately prior to such dividend or
distribution, calculated on a fully diluted basis. 

(iii)       
The number of shares reserved for issuance pursuant to this Warrant will
automatically be adjusted without further action by the Company in the event of
any adjustment of the number of Warrant Shares issuable pursuant to this
Warrant. 

(b)     
In the event of a merger, consolidation, recapitalization, combination or
exchange of Common Stock occurring after the date hereof pursuant to which the
Company is not the surviving entity (an "Acquisition"), the Company covenants
that it will obtain from the acquiring entity, as a condition to the closing of
such transaction or event, the right for the Holder to exchange this Warrant, at
its sole option and in lieu of exercise hereof, for a warrant to purchase the
equivalent number of shares of the equivalent class of shares of the acquiring
entity on a fully diluted basis. The period of exercise of such new warrant
shall be equal to the remaining duration of the exercise period of this Warrant.
If, as a result of such Acquisition, the shareholders of the Company immediately
prior to such Acquisition own at least a majority of the shares of voting
capital stock, assuming full exercise or conversion of all securities
exercisable for or convertible into such voting capital stock, outstanding after
such Acquisition and are entitled upon liquidation to receive a majority of the
assets of the surviving entity, then the method of calculating the number of
Warrant Shares set forth in the first Paragraph hereof shall remain unaffected;
otherwise, this Warrant shall, after such Acquisition, permit the Holder to
purchase that percentage of Warrant Shares or other consideration of the
acquiring entity which the Holder would be entitled to receive as a result of
such merger, consolidation, recapitalization, combination or exchange of shares
if this Warrant had been exercised in full immediately prior to such merger,
consolidation, recapitalization, combination or exchange of shares (or the
record date, if any, for such transaction or event) for the same aggregate
exercise price as provided for in this Warrant. 

4.       
Transfer of Warrant. Subject to the provisions of Section 2, this Warrant
or the Warrant Shares may be transferred, in whole or in part, to any person or
business entity, by presentation of the Warrant or the Warrant Shares to the
Company with written instructions for such transfer in the form attached hereto
as Exhibit "B". Upon such presentation for transfer, the Company shall promptly
execute and deliver a new Warrant or Warrants in the form hereof in the name of
the assignee or assignees and in the denominations specified in such
instructions. The Company shall pay all expenses in connection with the
preparation, issuance and delivery of Warrants under this Section 4. 

4

5.       
Notices. Any and all notices, elections or demands permitted or required
to be made under this Warrant shall be in writing, signed by the party giving
such notice, election or demand and shall be delivered personally, telecopied,
telexed, or sent by certified mail or nationally recognized courier service
(such as Federal Express), to the other party at the address set forth below, or
at such other address as may be supplied in writing and of which receipt has
been acknowledged in writing. The date of personal delivery, telecopy or telex
or one business day after delivery to such courier service or five business days
after mailing, as the case may be, shall be the date of such notice, election or
demand. For the purposes of this Warrant: 

	
    The address of
	 
	
    Holder is:
	 
	
     
	 
	
    The address of
	 
	
    the Company is:
	1121 Steeles Avenue
    West, Suite 803
	
     
	Toronto, Ontario, M2R
    3W7

6.       
Amendment and Waiver. Except as otherwise provided herein, the provisions
of this Warrant may be amended and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the prior written consent of the Holder. 

7.       
Descriptive Headings; Governing Law. The descriptive headings of the
several Sections of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. 

ALL QUESTIONS CONCERNING THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF DELAWARE WITHOUT
GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISIONS OR RULE
(WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE
THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
DELAWARE. 

5

IN WITNESS WHEREOF, the parties hereto have set their hands as of the
date first above written. 

	 	"COMPANY":
	 	SILVER DRAGON
    RESOURCES INC.
	 	
    Per:_____________________
	 	         Marc Hazout –
    President and C.E.O.
	 	"HOLDER":
	 	
    By:_______________________
	 	        Name:

6

Exhibit A 

FORM OF SUBSCRIPTION 

(to be signed only on exercise of Warrant) 

TO: Silver Dragon Resources, Inc. 

The undersigned, pursuant to the provisions set forth in the attached
Warrant, hereby irrevocably elects to purchase (check applicable box): 

___         ________ shares of the
Common Stock covered by such Warrant; or 

___         the maximum number of
shares of Common Stock covered by such Warrant. 

The undersigned herewith makes payment of the full purchase
price for such shares at the price per share provided for in such Warrant, which
is $___________. Such payment takes the form of a bank draft in the sum of
$__________ in lawful money of the United States. 

The undersigned requests that the certificates for such shares be issued in
the name of, and delivered to
_____________________________________________________ whose address is
_____________________________________________________________________________________
_____________________________________________________________________________________

The undersigned represents and warrants that the representations and
warranties of the undersigned in this Warrant are true and accurate with respect
to the undersigned on the date hereof. 

The undersigned represents and warrants that all offers and
sales by the undersigned of the securities issuable upon exercise of the within
Warrant shall be made pursuant to registration of the Common Stock under the
Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an
exemption from registration under the Securities Act. 

	Dated:_________________	 
	 	
    (Signature must conform to name of
    holder as
	 	specified on the face
    of the Warrant)
	  	 
	 	 
	 	
     
	 	
    (Address)

7

Exhibit B 

FORM OF TRANSFEROR ENDORSEMENT 

(To be signed only on transfer of Warrant) 

For value received, the undersigned
hereby sells, assigns, and transfers unto the person(s) named below under the
heading "Transferees" the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of Silver Dragon Resources,
Inc. to which the within Warrant relates specified under the headings
"Percentage Transferred" and "Number Transferred," respectively, opposite the
name(s) of such person(s) and appoints each such person Attorney to transfer its
respective right on the books of Silver Dragon Resources, Inc. with full power
of substitution in the premises. 

	
    
    Transferees
	
    
    Percentage Transferred
	
    
    Number Transferred

	
     
	
     
	
     

	
     
	
     
	
     

 

 

	 	 	 
	Dated:_________________,________________	 	 
	 	 	
    (Signature must conform to name of holder as specified
	 	 	on the face of the warrant)
	 	 	 
	Signed in the presence of:	 	 
	 	 	 
	 	 	 
	
    (Name)	 	 
	 	 	
    (address)
	 	 	 
	ACCEPTED AND AGREED:	 	 
	[TRANSFEREE]	 	 
	 	 	
    (address)
	 	 	 
	 	 	 
	
    (Name)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]