Document:

Exhibit
10.11 

 

EXECUTION
VERSION

 

Eridanus
Capital, LLC

 

(the
“Lender”)

 

-
and -

 

RISE
GRASS VALLEY INC.

 

(the
“Borrower”)

 

 

 

	LOAN
    AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

LOAN
AGREEMENT

 

THIS
AGREEMENT dated for reference the 30th day of August, 2019 (the “Effective
Date”) and made,

 

BETWEEN:

 

RISE
GRASS VALLEY INC., a corporation incorporated under the laws of Nevada, having an office at 333
Crown Point Circle, Ste 215, Grass Valley, CA 95945

 

(the
“Borrower”)

 

AND:

 

Eridanus
Capital, LLC, a
limited liability company incorporated under laws of Wyoming, having an office at 201 East 5th Street,
Suite 1200, Sheridan, WY 82801

 

(the
“Lender”)

 

WITNESSES
THAT WHEREAS:

 

A.
       The Lender has agreed to make a term loan of up to $1,000,000 (the “Loan”)
available to the Borrower to provide working capital to the Borrower for the Project (as defined herein); and

 

B.
       The parties wish to provide for the terms and conditions upon which the Loan shall be
made available to the Borrower;

 

THEREFORE
in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Lender and the Borrower
warrant and represent to and covenant and agree with each other as set forth below.

 

ARTICLE
ONE

INTERPRETATION

 

		1.1	Definitions.

 

As
used in this Agreement, including the schedules hereto (if any), unless otherwise defined or unless the context otherwise requires
the following terms have the following respective meanings:

 

		(a)	“Accredited
                                         Investor” means an “accredited investor” as that term is defined
                                         in NI 45-106 and “U.S. Accredited Investor”
                                         means an “accredited investor” as that term is defined in Rule 501(a) of
                                         Regulation D.

     

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		(b)	“Acquisition”
                                         means any transaction, or any series of related transactions by which the Borrower directly
                                         or indirectly, by any means:

 

		(i)	acquires
                                         any business (including any division of a business) or all or substantially all of the
                                         assets of any Person engaged in any business; or

 

		(ii)	acquires
                                         Control of a Person engaged in a business.

 

		(c)	“Advance”
                                         means an advance on account of the Loan.

 

		(d)	“Affiliate”
                                         means, with respect to any Person, another Person that, directly or indirectly through
                                         one or more intermediaries, Controls or is Controlled by or is under common Control with,
                                         such Person.

 

		(e)	“Applicable
                                         Law” means (a) any domestic or foreign statute, law (including common and civil
                                         law), treaty, code, ordinance, rule, regulation or by-law (zoning or otherwise); (b)
                                         any judgement, order, writ, injunction, decision, ruling, decree or award; (c) any regulatory
                                         policy, practice, protocol, guideline or directive; or (d) any franchise, licence, qualification,
                                         Authorization, consent, exemption, waiver, right, permit or other approval, in each case,
                                         of any Governmental Authority and having the force of law, binding on or affecting the
                                         Person referred to in the context in which the term is used or binding on or affecting
                                         the property of such Person, all of the foregoing as may exist as of the Effective Date
                                         or as may be implemented, revised or modified from time to time after the Effective Date.

 

		(f)	“Applicable
                                         Securities Laws” means the securities legislation and regulation of, and the
                                         instruments, policies, rules, orders, and notices of, the applicable securities regulatory
                                         authority or authorities of the applicable jurisdiction or jurisdictions, as the case
                                         may be, including the U.S. Securities Act, the U.S. Exchange Act and the rules and regulations
                                         of the SEC promulgated thereunder, the securities legislation of the Reporting Jurisdictions,
                                         and all rules and policies of the CSE.

 

		(g)	“Associate”
                                         has the meaning ascribed to such term in the Securities Act (British Columbia),
                                         as in effect on the date of this Agreement.

 

		(h)	“Authorization”
                                         means, with respect to any Person, any order, permit, approval, consent, waiver, licence
                                         or similar authorization of any Governmental Authority having jurisdiction over the Person.

 

		(i)	“Borrower”
                                         means Rise Grass Valley Inc., a corporation formed under the laws of Nevada, and its
                                         successors and permitted assigns (by amalgamation, merger or otherwise).

 

		(j)	“Business”
                                         means the current business and operations of the Borrower and the anticipated exploration,
                                         development and mining operations of the Borrower.

     

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		(k)	“Business
                                         Day” means any day of the year, other than a Saturday, Sunday, legal holiday
                                         or any day on which banking institutions are closed in Vancouver, British Columbia or
                                         Sheridan, Wyoming.

 

		(l)	“Collateral”
                                         means the property described in and subject to the Encumbrances, privileges, priorities
                                         and security interests purported to be created by the Security Agreements.

 

		(m)	“Control”
                                         means, in respect of a particular Person, the possession, directly or indirectly, of
                                         the power to direct or cause the direction of the management or policies of such Person,
                                         whether through the ability to exercise voting power, by contract or otherwise (other
                                         than by way of security). “Controlling” and “Controlled”
                                         have meanings correlative thereto.

 

		(n)	“Contract”
                                         means any agreement, contract, licence, lease, undertaking, engagement or commitment
                                         of any nature, written or oral.

 

		(o)	“Corporation”
                                         means Rise Gold Corp., a corporation formed under the laws of Nevada, and its successors
                                         and permitted assigns (by amalgamation, merger or otherwise).

 

		(p)	“CSE”
                                         means the Canadian Securities Exchange.

 

		(q)	“Default”
                                         means any event which is or which, with the passage of time, the giving of notice or
                                         both, would be an Event of Default.

 

		(r)	“Disclosure
                                         Schedule” means the disclosure schedule of the Borrower attached as Exhibit
                                         B (Disclosure Schedule).

 

		(s)	“Effective
                                         Date” has the meaning ascribed to such term on page 1 herein.

 

		(t)	“Encumbrance”
                                         means any lien, charge, hypothec, pledge, mortgage, title retention agreement, covenant,
                                         condition, lease, license, security interest of any nature, claim, exception, reservation,
                                         easement, encroachment, right of occupation, right-of-way, right-of-entry, matter capable
                                         of registration against title, option, preferential right, offer for sale or purchase,
                                         listing agreement, assignment, right of pre-emption, royalty, right, pledge, privilege
                                         or any other encumbrance or title defect of any nature whatsoever, and any other right
                                         of third parties relating to, attaching to or affecting any asset, regardless of form
                                         (excluding Ordinary Course payables), whether or not registered or registrable and whether
                                         or not consensual or arising by any Applicable Law, and includes any contract to create
                                         any of the foregoing.

 

		(u)	“Environmental
                                         Laws” means all Applicable Laws relating to the protection of human health
                                         and the environment, including all Applicable Laws pertaining to the reporting, licensing,
                                         permitting, transportation, storage, disposal, investigation or remediation of Releases,
                                         or threatened Releases, of Hazardous Substance into the air, surface water, groundwater,
                                         or land, or relating to the manufacture, processing, distribution, use, treatment, storage,
                                         disposal, transportation or handling of Hazardous Substance.

     

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		(v)	“Event
                                         of Default” has the meaning ascribed to such term in Section 0 hereof.

 

		(w)	“GAAP”
                                         means generally accepted accounting principles in effect in the United States from time
                                         to time consistently applied, or, after notice thereof has been provided by the Corporation
                                         to the Lender, such other principles as may be approved
                                         by a significant segment of the accounting profession in the United States, that are
                                         applicable to the circumstances as of the date of determination, consistently applied.

 

		(x)	“Governmental
                                         Authority” means (a) the government of the United States, Canada or any other
                                         nation, whether federal, provincial, state, municipal, local, or other government or
                                         public department, (b) any central bank, court, tribunal, arbitral body, regulatory body
                                         (including any stock exchange), commission (including any securities commission), board,
                                         bureau, agency, authority, or other entity exercising executive, legislative, judicial,
                                         taxing, regulatory, or administrative powers or functions of, or pertaining to, any of
                                         the foregoing, (c) any subdivision of any of the foregoing, and (d) the CSE.

 

		(y)	“Hazardous
                                         Substance” means any substance, product, liquid, waste, pollutant, chemical,
                                         contaminant, insecticide, pesticide, gaseous or solid matter, organic or inorganic matter,
                                         fuel, micro-organism, ray, odour, radiation, energy, vector, plasma, constituent or other
                                         material which is or becomes listed, regulated or addressed under any Environmental Laws
                                         (including asbestos, cyanide, petroleum and polychlorinated biphenyls).

 

		(z)	“Interest
                                         Rate” has the meaning set out in Section  0 hereof.

 

		(aa)	“Lender”
                                         means Eridanus Capital, LLC, a Wyoming limited liability company, and its successors
                                         and assigns.

 

		(bb)	“Loan”
                                         has the meaning set out on page 1 herein.

 

		(cc)	“Loan
                                         Extension Option” has the meaning set out in section  0 of this Agreement.

 

		(dd)	“Material
                                         Adverse Change” means any material adverse change in (i) the Business, operations,
                                         affairs, assets, properties, financial condition or prospects of the Corporation and
                                         its subsidiaries, taken as a whole, (ii) the ability of the Borrower to observe, perform
                                         and or comply with its obligations under any of the Transaction Documents; or (iii) the
                                         rights and remedies of, as applicable, the Lender under any of the Transaction Documents.

 

		(ee)	“Material
                                         Contract” means any contract, licence or agreement (i) to which the Borrower
                                         is a party or bound, (ii) which is material to, or necessary in, the operation of
                                         the Business, (iii) which the Borrower cannot promptly replace by an alternative
                                         and comparable contract with comparable commercial terms and (iv) the absence of which
                                         would result in a Material Adverse Change.

 

		(ff)	“Maturity
                                         Date” means the earlier of (i) the later of (A) the date which is two years
                                         from the date of the Advance and (B) if the Loan Extension Option has been exercised
                                         the date

     

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which
is four years from the date of the Advance; and (ii) the date that all Obligations may become due and payable in accordance with
the terms hereof.

 

		(gg)	“Mineral
                                         Rights” has the meaning set out in Section 3.3(i) hereof.

 

		(hh)	“NI
                                         43-101” means National Instrument 43-101 – Standards of Disclosure
                                         for Mineral Projects.

 

		(ii)	“NI
                                         45-106” means National Instrument 45-106 – Prospectus Exemptions.

 

		(jj)	“Obligations”
                                         means all present and future indebtedness, liabilities and obligations of any and every
                                         kind, nature and description (whether direct or indirect, joint or several, absolute
                                         or contingent, mature or unmatured) of the Borrower to the Lender under, in connection
                                         with or with respect to the Transaction Documents.

 

		(kk)	“Ordinary
                                         Course” means, with respect to an action taken by a Person, that such action
                                         is consistent with the past practices of the Person and is taken in the Ordinary Course
                                         of the normal day-to-day operations of the Person.

 

		(ll)	“Permitted
                                         Encumbrances” means:

 

		(i)	Encumbrances
                                         in favour of the Lender for the Obligations;

 

		(ii)	Encumbrances
                                         for taxes, duties and assessments which may be overdue but the validity of which is being
                                         contested in good faith and in respect of which appropriate reserves have been established;

 

		(iii)	Encumbrances
                                         to secure workers’ compensation, unemployment insurance or other social security
                                         obligations, surety or appeal bonds, costs of litigation when required by law, public
                                         and statutory obligations, warehousemen’s, carriers’ and other similar Encumbrances;

 

		(iv)	Encumbrances
                                         given to a public utility or Governmental Authority to secure obligations incurred to
                                         such utility, municipality, government or other authority in the Ordinary Course in connection
                                         with the supply of services or utilities to the Borrower;

 

		(v)	Encumbrances
                                         and privileges arising out of judgments or awards in respect of which an appeal or proceeding
                                         for review has been commenced, a stay of execution pending such appeal or proceedings
                                         for review has been obtained and appropriate reserves have been established;

 

		(vi)	any
                                         mechanic’s, labourer’s, materialman’s statutory or other similar Encumbrance
                                         arising in the Ordinary Course, the action to enforce which has not proceeded to a final
                                         judgment;

 

		(vii)	undetermined
                                         or inchoate Encumbrances incidental to the normal business operations of a company not
                                         at the time overdue, or which are overdue but have

     

    - 7 -

    

not
been filed against the Borrower or any of its properties pursuant to Applicable Law and the validity of which is being contested
in good faith and appropriate reserves have been established;

 

		(viii)	Encumbrances
                                         set out in the Disclosure Schedule; and

 

		(ix)	Encumbrances
                                         consented to in writing by the Lender;

 

provided
that the use of the term “Permitted Encumbrances” to describe such interests and Encumbrances shall mean that they
are permitted to exist, and shall not be interpreted as meaning that such interests and Encumbrances are entitled to priority
over the Lender’s security.

 

		(mm)	“Person”
                                         means a natural person, partnership, limited partnership, limited liability partnership,
                                         corporation, limited liability company, unlimited liability company, joint stock company,
                                         trust, unincorporated association, joint venture or other entity or Governmental Authority,
                                         and pronouns have a similarly extended meaning.

 

		(nn)	“Project”
                                         means, collectively, the Idaho-Maryland Gold Mine located near Grass Valley, California,
                                         and all assets, property and undertakings used, intended for use in, or forming part
                                         of the Borrower’s operations at the Idaho-Maryland Gold Mine, and all associated
                                         mineral rights, surface rights and processing facilities and associated infrastructure,
                                         that may be acquired, developed or constructed with respect to such operations from time
                                         to time.

 

		(oo)	“Properties”
                                         means the facilities or properties currently or formerly owned, leased or operated by
                                         the Borrower and “Property” shall mean any one of the Properties as
                                         the context requires.

 

		(pp)	“Public
                                         Record” refers to all public information which has been filed by the Corporation
                                         pursuant to Applicable Securities Laws.

 

		(qq)	“Regulation
                                         D” means Regulation D promulgated under the U.S. Securities Act.

 

		(rr)	“Release”
                                         means any release, spill, leak, discharge, abandonment, disposal, pumping, pouring, emitting,
                                         emptying, injecting, leaching, dumping, depositing, dispersing, passive migration, allowing
                                         to escape or migrate into or through the environment (including within any building,
                                         structure, facility or fixture) of any Hazardous Substance, including the abandonment
                                         or discarding of Hazardous Substances in barrels, drums, tanks or other containers, regardless
                                         of when discovered.

 

		(ss)	“Reporting
                                         Jurisdictions” means, collectively, British Columbia, Alberta and Ontario.

 

		(tt)	“Rise
                                         Group” means the Corporation and the Borrower, collectively.

 

		(uu)	“SEC”
                                         means the United States Securities and Exchange Commission.

 

		(vv)	“Securities”
                                         means, collectively, the Warrants and Warrant Shares.

     

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		(ww)	“Securities
                                         Regulators” means, collectively, the securities regulators or other securities
                                         regulatory authorities in the Reporting Jurisdictions.

 

		(xx)	“Security
                                         Agreements” has
                                         the meaning ascribed to such term in Section 0.

 

		(yy)	“Security
                                         Interest” means the pledges, assignments, mortgages, charges, and hypothecations
                                         of and the security interests in the Collateral created in favour of the Lender under
                                         the Security Agreements.

 

		(zz)	“Shares”
                                         means the shares of common stock of the Corporation, as such shares exist at the close
                                         of business on the date of execution and delivery of this Agreement; provided that, in
                                         the event of a subdivision, redivision, reduction, combination, consolidation or reclassification
                                         of the capital of the Corporation or such successive subdivisions, redivisions, reductions,
                                         combinations, consolidations or reclassifications, “Shares” shall thereafter
                                         mean the shares corresponding to the Shares resulting from such subdivision, redivision,
                                         reduction, combination, consolidation or reclassification.

 

		(aaa)	“Taxes”
                                         means all taxes, charges, fees, levies, imposts, rates, dues and assessments, including
                                         all income, sales, use, goods and services, value added, capital, capital gains, alternative,
                                         net worth, transfer, profits, withholding, payroll, employer health, excise, real property
                                         and personal property taxes, and any other taxes, customs duties, fees, assessments,
                                         or similar charges in the nature of a tax including government pension plan contributions,
                                         unemployment insurance payments and workers’ compensation premiums, together with
                                         any instalments with respect thereto, and any interest, fines and penalties with respect
                                         thereto, imposed, levied, collected, withheld or assessed by any Governmental Authority
                                         (including federal, state, provincial, municipal and foreign Governmental
                                         Authorities), and whether disputed or not.

 

		(bbb)	“Tax
                                         Return” means any return, report, declaration,
                                         designation, election, notice, filing, form, claim for refund, information return or
                                         other document (including any related or supporting schedule, statement or information)
                                         filed or required to be filed in connection with the determination, assessment or collection
                                         of any Tax or the administration of any Applicable Law, regulations or administrative
                                         requirements relating to any Tax.

 

		(ccc)	“Technical
                                         Report” means the technical report
                                         prepared by Greg Kulla, PGeo., of Amec Foster Wheeler Americas Limited, in accordance
                                         with NI 43-101 entitled “Technical Report on the Idaho-Maryland Project, Grass
                                         Valley, California, USA” dated effective June 1, 2017.

 

		(ddd)	“Transaction
                                         Documents” includes this Agreement and each of the Security Agreements.

 

		(eee)	“U.S.
                                         Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 

		(fff)	“U.S.
                                         Securities Act” means the United States Securities Act of 1933, as amended.

 

		(ggg)	“Warrant
                                         Shares” means the Shares issuable upon due exercise of the Warrants.

 

		(hhh)	“Warrants”
                                         has the meaning set out in Section 0.

     

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		1.2	Gender
                                         and Number.

 

Any
reference in this Agreement to gender shall include all genders, and words importing the singular number only shall include the
plural and vice versa.

 

		1.3	Headings,
                                         Etc.

 

The
division of this Agreement into Articles, Sections, Subsections, and other subdivisions and the insertion of headings are for
convenience of reference only and shall not affect or be utilized in the construction or interpretation of this Agreement.

 

		1.4	Currency.

 

All
references in this Agreement to “dollars” or “$”, unless otherwise specifically indicated, are expressed
in the currency of the United States.

 

		1.5	Severability.

 

Any
article, section, subsection or other subdivision of this Agreement or any other provision of this Agreement which is, or becomes,
illegal, invalid or unenforceable shall be severed from this Agreement and be ineffective to the extent of such illegality, invalidity
or unenforceability and shall not affect or impair the remaining provisions hereof or thereof.

 

		1.6	Governing
                                         Law.

 

This
Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of California and the federal
laws of the United States applicable therein, without reference to rules governing the choice or conflict of laws. For the purpose
of legal proceedings, this Agreement shall be deemed to have been made in the said State and to be performed therein and the federal
and state courts located in California shall have jurisdiction over all disputes which may arise under this Agreement. The Borrower
and the Lender hereby irrevocably and unconditionally submit to the non-exclusive jurisdiction of such courts.

 

		1.7	Accounting
                                         Principles.

 

Wherever
in this Agreement reference is made to “generally accepted accounting principles” or “GAAP”, such reference
shall be deemed to be to GAAP.

 

		1.8	Interpretation.

 

Unless
otherwise expressly provided in this Agreement, if any matter in this Agreement is subject to the determination, consent or approval
of the Lender or is to be acceptable to the Lender, such determination, consent, approval or determination of acceptability will
be in the sole discretion of the Lender, acting reasonably. If any provision in this Agreement refers to any action taken or to
be taken by the Borrower, or which the Borrower is prohibited from taking, such provision will be interpreted to include any and
all means, direct or indirect, of taking, or

     

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not
taking, such action. When used in the context of a general statement followed by a reference to one or more specific items or
matters, the term “including” shall mean “including, without limitation” and the use of the term “includes”
shall mean “includes, without limitation”.

 

ARTICLE
TWO

LOAN

 

		2.1	Loan.

 

Subject
to the terms and conditions of this Agreement, the Lender hereby establishes and agrees to make the Loan available to the Borrower.

 

		2.2	Purpose.

 

The
Loan will be made available to the Borrower for the purpose of providing funds for permitting, engineering and working capital
in respect of the Project in the Ordinary Course and for no other purpose without the prior written consent of the Lender.

 

		2.3	Term.

 

The
outstanding principal amount of the Loan together with all accrued and unpaid interest and all other amounts outstanding hereunder
shall become due and payable in full on the Maturity Date unless sooner as determined by the Lender due to the occurrence of an
Event of Default. The initial term of the Loan shall be two years from the date of the Advance. The Lender hereby grants to the
Borrower an option (the “Loan Extension Option”) to extend the term of the Loan to four years from the date
of the Advance. The Borrower may exercise the Loan Extension Option by giving the Lender at least 10 days written notice prior
to the expiry of the initial term.

 

		2.4	Advance.

 

Provided
the conditions in Section 0 have been met to the Lender’s sole satisfaction or waived by the Lender in writing at the
time of that Advance, the Borrower shall be entitled to drawdown the Loan available under this Agreement, being $1,000,000, by
delivering, to the Lender a written request for an Advance six (6) Business Days prior to the date of the proposed drawdown.

 

		2.5	Interest.

 

		(a)	Interest
                                         shall accrue on the principal sum outstanding both before and after the Maturity Date,
                                         default and judgment until actual payment in full at the rates (the “Interest
                                         Rate”) set out below, calculated and compounded monthly:

 

		(i)	Years
1 and 2: 10% per annum;

 

		(ii)	If
applicable, Year 3: 20% per annum; and

 

		(iii)	If
applicable, Year 4: 25% per annum.

     

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From
and after the date of the Advance, interest shall accrue and be payable on the Maturity Date.

 

		(b)	If
                                         a court of competent jurisdiction determines that any provision of this Agreement obligates
                                         the Borrower to make any payment of interest, or other amount payable to the Lender,
                                         in an amount, or calculated at a rate, which would be prohibited by Applicable Law or
                                         would result in receipt by the Lender of interest at a rate in excess of the maximum
                                         rate permissible under Applicable Law then, notwithstanding such provision, such amount
                                         or rate shall be deemed to have been adjusted, with retroactive effect, to the maximum
                                         amount or rate of interest, as the case may be, as would not be so prohibited by Applicable
                                         Law or so result in receipt by the Lender of interest at a rate in excess of the maximum
                                         rate permissible. Any amount or rate of interest referred to in this Section shall
                                         be determined in accordance with generally accepted actuarial practices and principles
                                         as an effective annual rate of interest over the term that the Loan remains outstanding,
                                         on the assumption that any charges, fees or expenses that fall within the meaning of
                                         “interest” shall, if they relate to a specific period of time, be pro-rated
                                         over that period of time and otherwise be pro-rated over the period from the date hereof
                                         to the Maturity Date, and, in the event of a dispute, a certificate of an accredited
                                         actuary appointed by the Lender shall be conclusive for the purposes of such determination.

 

		2.6	Voluntary
                                         Prepayment.

 

Prior
to the Maturity Date, the Borrower may prepay the Loan in whole or in part provided that:

 

		(a)	together
                                         with the amount prepaid, the Borrower pays all interest which has then accrued but remains
                                         outstanding;

 

		(b)	if
                                         the interest payable pursuant to subsection (a) above is less than $200,000 (two
                                         year’s interest), the Borrower pays the difference to the Lender as prepayment
                                         compensation.

 

		2.7	Payments
                                         to be Made.

 

The
Borrower will make all payments due hereunder when due to the Lender at the address set out in Section 0 hereof, or at such address
as the Lender may advise the Borrower in writing from time to time, or by wire transfer in accordance
with the wire transfer instructions in set out in Exhibit C hereto.

 

ARTICLE
THREE

COVENANTS AND REPRESENTATIONS OF THE BORROWER

 

		3.1	Positive
                                         Covenants.

 

So
long as this Agreement remains outstanding, the Borrower covenants and agrees it will:

     

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		(a)	Payment
                                         and Performance of Obligations.

 

		(i)	Duly
                                         and punctually pay all sums of money due by it under the terms of this Agreement and
                                         each other Transaction Document at the times and places and in the manner provided for
                                         by this Agreement or such other Transaction Document, as applicable, and shall duly and
                                         punctually perform and observe all other obligations on its part to be performed or observed
                                         hereunder or thereunder at the times and in the manner provided for herein or therein.

 

		(ii)	Duly
                                         and punctually pay all indebtedness due and payable by it to any Person as and when such
                                         payments shall become due including, without limitation all Taxes.

 

		(b)	Observation
                                         of Covenants. Duly observe and perform each and every one of its covenants and agreements
                                         set forth in this Agreement and each other Transaction Document.

 

		(c)	Maintenance
                                         of Existence & Business Practices. Do or cause to be done all things necessary
                                         to preserve and keep in full force and effect its corporate existence and all Authorizations
                                         necessary or desirable in the normal conduct of its Business and ownership of its assets.
                                         Without limiting the generality of the foregoing, the Borrower shall (i) use, operate
                                         and maintain all of its property and assets in a good working order and condition, ordinary
                                         wear and tear excepted, and in accordance with good business practice and in a manner
                                         which does not impair the Security Interests of the Lender in such property and assets;
                                         and (ii) continue to collect all accounts receivable in the Ordinary Course.

 

		(d)	Compliance
                                         with Applicable Law and Contracts. Comply with all Applicable Law and orders of any
                                         Governmental Authority applicable to it or its property and maintain in good standing
                                         and observe and perform in all material respects all contracts to which it is a party
                                         and comply with all of its material contractual obligations, except where the failure
                                         to do so, individually or in the aggregate, would not reasonably be expected to result
                                         in a Material Adverse Change.

 

		(e)	Approvals.
                                         Use commercially reasonable efforts to obtain all necessary Authorizations required to
                                         be obtained by the Borrower to operate its Business, own its assets, and to complete
                                         the transactions contemplated by each of the Transaction Documents.

 

		(f)	Taxes.
                                         Pay all Taxes imposed on it, or on its income or profits or its assets, when due and
                                         payable, except for any taxes assessed against the Borrower which it is in good faith
                                         contesting pursuant to a bona fide dispute process.

 

		(g)	Insurance.
                                         Maintain insurance with respect to its property and Business (with the Lender shown as
                                         first mortgagee and loss payee and additional insured) with financially sound and reputable
                                         insurance companies, in such amounts and covering such risks as are usually insured against
                                         by similar companies engaged in the same or a similar business.

 

		(h)	Carry
                                         on Business and Maintain Books and Records. Continue to carry on and conduct its
                                         Business in a proper and efficient manner and maintain proper books and records, in which
                                         full and correct entries shall be made of all financial transactions and

     

    - 13 -

    

the
assets and its Business in accordance with GAAP, and shall make such books and records available for inspection by the Lender
upon reasonable notice during normal business hours.

 

		(i)	Inspection.
                                         Upon reasonable prior notice and during normal business hours, permit the Lender to visit
                                         and inspect any of its properties and examine and make abstracts from any of its books
                                         and records and to discuss its business operations, properties and financial and other
                                         conditions with its officers and employees and its independent certified public accountants.

 

		(j)	Provision
                                         of Further Information. Provide to the Lender:

 

		(i)	notice
                                         of the occurrence of any Default or Event of Default setting out the details of any event
                                         so disclosed and the steps (if any) taken by it to remedy or cure the same;

 

		(ii)	any
                                         material impending or current litigation, arbitration, criminal or administrative proceeding,
                                         tax claim or labour dispute or other proceeding relating to the Borrower or its property,
                                         assets or revenues, or its outstanding share capital;

 

		(iii)	any
                                         default by the Borrower under a Contract to which it is a party with a value in excess
                                         of $25,000;

 

		(iv)	a
                                         copy of (A) notice received in respect of any consent, Authorization or approval applicable
                                         to the Borrower and (B) notice of any event which may result in the termination of, or
                                         the ability of any party to terminate, any Authorization, permit or approval;

 

		(v)	the
                                         receipt of any notice given or sent to or served upon the Borrower which would constitute,
                                         or would be reasonably expected to constitute, a Material Adverse Change;

 

		(vi)	all
                                         information as may from time to time be required by the Lender under or in connection
                                         with compliance with any Applicable Law;

 

		(vii)	all
                                         correspondence received by the Borrower, the
                                         subject, form or substance of which has resulted in or would reasonably be expected
                                         to result in a Material Adverse Change; and

 

		(viii)	such
                                         other statements, reports and information, including information respecting the Business,
                                         condition (financial or otherwise), operations, performance, properties or prospects
                                         of the Borrower, as the Lender may from time to time reasonably request.

 

		(k)	Ownership.
                                         Defend its right, title and interest in and to its material property and assets against
                                         the claims of all other Persons, at its own expense.

     

    - 14 -

    

		(l)	Use
                                         of Proceeds. Use the proceeds of the funds advanced hereunder only for the purposes
                                         set out in Section 0.

 

		(m)	Security
                                         and Registrations.

 

		(i)	As
                                         general and continuing security for the payment and performance of the Obligations hereunder,
                                         execute and deliver, in each case in form and substance satisfactory to the Lender:

 

		A.	a
                                         collateral agreement in favour of the Lender creating
                                         a first-priority Encumbrance (subject only to Permitted Encumbrances) over all present
                                         and future personal property of the Borrower and the Corporation,

 

		B.	a
                                         deed of trust in favour of the Lender creating a first-priority
                                         Encumbrance (subject only to Permitted Encumbrances) over all of the real property of
                                         the Borrower,

 

together
with such supporting materials as may be required to ensure the perfection or priority of the foregoing Encumbrances. All documents
referred to in this Section 0 (as amended, amended and restated, supplemented or otherwise modified from time to time) collectively
referred to as the “Security Agreements”.

 

		(ii)	Promptly
                                         upon the Lender’s request, record, file or register, applications for registration
                                         or financing statements (and continuation or financing change statements when applicable),
                                         and make any other registrations or filings in such manner and in such jurisdictions
                                         as are necessary to protect, perfect and maintain the protection and perfection of, the
                                         Encumbrances created by the Security Agreements, and provide evidence of the foregoing
                                         to the Lender; provided that if the Borrower fails to promptly make such recordations,
                                         filings, registrations or applications, the Lender shall be entitled to make such recordations,
                                         filings, registrations and applications and the Borrower shall pay all expenses and costs
                                         incurred by the Lender in connection with the foregoing.

 

		(iii)	Use
                                         commercially reasonable efforts to have the Uniform Commercial Code financing statements
                                         in favour of Meridian Jerritt Canyon Corp. referred to in the Disclosure Schedule terminated,
                                         and shall provide the Lender with evidence of filing of the termination statement.

 

		(n)	Further
                                         Assurances.

 

		(i)	Cure
                                         promptly any defects in the execution and delivery of each Transaction Document, including
                                         this Agreement; and

 

		(ii)	Upon
                                         request, execute and deliver to the Lender, as promptly as practical and at the Borrower’s
                                         expense, all such other and further documents, agreements and instruments in compliance
                                         with or performance of the covenants and agreements of the Borrower in any of the Transaction
                                         Documents, including this Agreement,

     

    - 15 -

    

or
to further evidence and more fully describe the Collateral, or to correct any omissions in any of the Transaction Documents, or
more fully to state the security obligations set out herein or in any of the Transaction Documents, or to perfect, protect or
preserve any Encumbrances created pursuant to any of the Transaction Documents, or to make any recordings, to file any notices,
or obtain any consents, all as may be necessary or appropriate in connection therewith, in the judgment of the Lender, acting
reasonably.

 

		3.2	Negative
                                         Covenants.

 

So
long as this Agreement remains outstanding, the Borrower covenants and agrees it shall not:

 

		(a)	Amalgamations.
                                         Directly or indirectly, by operation of law or otherwise, amalgamate with, merge with,
                                         consolidate with or otherwise combine with, any Person, provided however that the Borrower
                                         may merge, consolidate, amalgamate or otherwise continue with any Person, if (i) no Default
                                         or Event of Default would result therefrom, (ii) the rights of the Lender hereunder have
                                         not been materially adversely effected by such merger, consolidation, amalgamation or
                                         other combination and (iii) the entity resulting from such merger, consolidation, amalgamation
                                         or other form of combination provides written confirmation to the Lender that it has
                                         assumed all of the obligations of the Borrower hereunder or delivers the security documents
                                         and other deliverables required to provide the Lender a first-priority Encumbrance (subject
                                         only to Permitted Encumbrances) over all present and future personal property and real
                                         property of such entity.

 

		(b)	Indebtedness.
                                         Create, incur, assume or permit to exist any indebtedness, including guarantees of indebtedness
                                         of others, except indebtedness under this Agreement and the other Transaction Documents,
                                         and any other indebtedness arising in the Ordinary Course.

 

		(c)	Encumbrances.
                                         Create, incur, assume or permit to exist any Encumbrance on or with respect to any of
                                         its properties or assets (whether now owned or hereafter acquired) except for Permitted
                                         Encumbrances.

 

		(d)	Non-Arm’s
                                         Length Transactions. Sell, lease or otherwise transfer any property or assets to,
                                         or purchase, lease or otherwise acquire any property or assets from, or otherwise engage
                                         in any other transactions with any Affiliates, except in the Ordinary Course, at prices
                                         and on terms and conditions not less favourable to the Borrower than could be obtained
                                         on an arm’s-length basis from unrelated third parties.

 

		(e)	Restricted
                                         Payments. Make any payment (whether in cash or in kind, and whether by way of actual
                                         payment, set-off, counterclaim or otherwise):

 

		(i)	of
                                         any dividend, distribution or return of capital with respect to its equity securities;

 

		(ii)	on
                                         account of the purchase, redemption, retirement or other acquisition of any of its equity
                                         securities or any warrants, options or similar rights with respect to its equity securities;

     

    - 16 -

    

		(iii)	of
                                         any principal of or interest or premium on any indebtedness of the Borrower that, by
                                         its terms or contractual postponement, ranks in right of payment subordinate to any of
                                         the Obligations;

 

		(iv)	of
                                         any management, consulting or similar fee or any bonus payment or comparable payment,
                                         or by way of gift or other gratuity, to

 

		A.	any
                                         director or officer of such Person (but excluding Ordinary Course management fees, wages,
                                         bonuses and severance paid in the Ordinary Course and consistent with industry practice);
                                         and

 

		B.	any
                                         Affiliate of such Person or director or officer thereof;

 

		(v)	for
                                         the purpose of setting apart any property for a sinking, defeasance or other analogous
                                         fund for any of the payments referenced above.

 

		(f)	Change
                                         of Corporate Name or Location. Change its corporate name or change or move its chief
                                         executive office, principal place of business, corporate offices, warehouses or other
                                         locations at which Collateral is held or stored and/or the location of its records concerning
                                         the Collateral, without:

 

		(i)	providing
                                         the Lender with at least thirty (30) days’ prior written notice of its intention
                                         to do same; and

 

		(ii)	having
                                         received the Lender’s written acknowledgement that any reasonable action requested
                                         by the Lender in connection therewith (including to continue the perfection of any Encumbrance
                                         in favour of the Lender in any Collateral) has been completed or taken.

 

		(g)	Disposition
                                         of Assets. Directly or indirectly sell, lease, assign, transfer, convey or otherwise
                                         dispose of (whether in one or a series of transactions) all or any portion of its Business,
                                         assets or property, real, personal or mixed, tangible or intangible, except for sales
                                         (i) of equipment, fixtures or materials that are worn-out or obsolete or have been replaced
                                         and are not required for the conduct by the Borrower of its Business, (ii) of inventory
                                         made in the Ordinary Course and as part of the normal operation of its Business, or (iii)
                                         otherwise with the prior written consent of the Lender.

 

		(h)	Constating
                                         Documents and Material Contracts. Amend, supplement or otherwise modify its constating
                                         documents or bylaws or the terms and conditions of any Material Contract in any manner
                                         which is reasonably likely to result in a Material Adverse Change.

 

		(i)	Dissolution.
                                         Liquidate, wind-up, dissolve (or suffer any liquidation or dissolution), reorganize,
                                         make an assignment for the benefit of its creditors or file a petition, answer or consent
                                         to seeking a reorganization.

     

    - 17 -

    

		(j)	Nature
                                         of Business. Carry on any business other than (a) mineral exploration, extraction,
                                         processing and sale, and (b) any business that is the same, similar or otherwise reasonably
                                         related, ancillary or complementary thereto.

 

		(k)	No
                                         Sale-Leasebacks. Directly, or indirectly, enter into any arrangement providing for
                                         the sale, assignment, transfer or disposition of any property used in the Ordinary Course
                                         and thereafter rent or lease such property.

 

		(l)	Investments.
                                         Make any direct or indirect investment in any Person, whether by acquisition of shares,
                                         indebtedness or other securities, or by loan, guarantee, advance, capital contribution
                                         or otherwise, except investments in cash equivalents.

 

		(m)	Acquisitions.
                                         Make or enter into any Acquisition without the prior written consent of the Lender.

 

		3.3	Representations
                                         and Warranties of the Borrower.

 

The
Borrower hereby represents and warrants to the Lender that:

 

		(a)	Incorporation
                                         and Existence. The Borrower:

 

		(i)	is
                                         duly incorporated and validly existing under the laws of its jurisdiction of incorporation;
                                         and

 

		(ii)	is
                                         duly qualified to carry on its Business in, and is in good standing in, each jurisdiction
                                         which it owns property or assets or carries on business.

 

		(b)	Power
                                         and Capacity; Authorization, Execution and Delivery; Enforceability.

 

		(i)	The
                                         Borrower has the corporate power and capacity, and the legal right, to own or lease and
                                         operate its property, and to carry on its business as now conducted and as proposed to
                                         be conducted, and to enter into, execute, deliver and perform the Transaction Documents
                                         and to obtain the Loan and Advances hereunder.

 

		(ii)	The
                                         Borrower has taken all necessary action to authorize the execution, delivery and performance
                                         of the Transaction Documents and to authorize borrowing on the terms and conditions contained
                                         herein. No consent or Authorization of, filing with, notice to or other act by, or in
                                         respect of, any Governmental Authority or any other Person is required in connection
                                         with the extension of the loan hereunder or with the execution, delivery, performance,
                                         validity or enforceability of this Agreement or any of the Transaction Documents.

 

		(iii)	Each
                                         Transaction Document has been duly executed and delivered by the Borrower and this Agreement
                                         constitutes, and each other Transaction Document when delivered by the Borrower hereunder
                                         will constitute, a valid and legally binding obligation of the Borrower, enforceable
                                         against the Borrower in accordance with its terms, except as enforceability may be limited
                                         by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or similar
                                         laws

     

    - 18 -

    

affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

		(c)	No
                                         Breach of Constating Documents, Applicable Law, Contracts or Default. The entering
                                         into, execution, delivery and performance of this Agreement and the other Transaction
                                         Documents, obtaining advances hereunder and the use of the proceeds thereof do not and
                                         will not:

 

		(i)	Conflict
                                         with, contravene, violate or result in a breach of:

 

		A.	the
                                         Borrower’s charter, by-laws or other organizational or constating documents or
                                         any resolutions of directors, shareholders, partners or similar governing body, as applicable,
                                         or the provisions of any shareholders agreement, partnership agreement or declaration
                                         of trust;

 

		B.	any
                                         Applicable Law; or

 

		C.	any
                                         contractual obligation of the Borrower.

 

		(ii)	Result
                                         in, or require or permit:

 

		A.	any
                                         consent or approval of, registration or filing with, or any other action by, any Governmental
                                         Authority;

 

		B.	the
                                         creation or imposition of any Encumbrance on any of the Borrower’s properties or
                                         assets other than Permitted Encumbrances; or

 

		C.	the
                                         acceleration of the maturity of any indebtedness under any contractual obligation.

 

		(d)	Financial
                                         Statements. The consolidated financial statements of the Corporation for the most
                                         recently completed fiscal quarter or fiscal year, as the case may be, were prepared in
                                         accordance with GAAP and no Material Adverse Change has occurred since the date of such
                                         financial statements. The consolidated balance sheets of the aforesaid financial statements
                                         presents a fair statement of the financial condition and assets and liability of the
                                         Rise Group as at the date thereof and the consolidated statements of operations and comprehensive
                                         loss, cashflows and stockholders’ equity contained in the aforesaid consolidated
                                         financial statements fairly presents the results of the operations of the Rise Group
                                         throughout the period covered thereby. Except to the extent reflected or reserved against
                                         in the aforesaid balance sheet (including the notes thereto) and except as incurred in
                                         the Ordinary Course, the Rise Group does not have any outstanding indebtedness or any
                                         liability or obligations (whether accrued, absolute, contingent or otherwise) of a material
                                         nature customarily reflected or reserved against in a balance sheet (including the notes
                                         thereto) prepared in accordance with generally accepted accounting principles.

 

		(e)	Information.
                                         All written information pertaining to the Borrower that has been or will be made
                                         available to the Lender is or will be, when furnished, complete and correct in all material
                                         respects and does not or will not, when furnished, contain any untrue statement

     

    - 19 -

    

of
a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading
in light of the circumstances under which such statements are made.

 

		(f)	No
                                         Litigation. There are no actions, suits or proceedings (including any Tax-related
                                         matter) by or before any arbitrator or Governmental Authority pending against or, to
                                         the knowledge of the Borrower, threatened against or affecting the Borrower as to which
                                         there is a reasonable possibility of an adverse determination and that, if adversely
                                         determined, would reasonably be expected, individually or in the aggregate, to result
                                         in a Material Adverse Change.

 

		(g)	No
                                         Default. No Default or Event of Default has occurred and is continuing.

 

		(h)	Ownership
                                         of Property. Except as disclosed in the Disclosure Schedule:

 

		(i)	The
                                         Borrower has title to its owned personal properties, and with respect to leased personal
                                         properties, valid leasehold interests with respect thereto, pursuant to valid and enforceable
                                         leases, free and clear of all Encumbrances (except Permitted Encumbrances) or other third-Person
                                         interests.

 

		(ii)	The
                                         Borrower has (A) indefeasible fee simple title to its owned real properties, and (B)
                                         with respect to leased real properties, valid leasehold interests with respect thereto,
                                         pursuant to valid and enforceable leases, both of which (A) and (B) are free and clear
                                         of all Encumbrances (except Permitted Encumbrances) or other third-Person interests.

 

		(iii)	The
                                         Security Agreements recorded and registered with respect to the real and personal property
                                         of Borrower shall constitute the prime lien upon such property.

 

		(i)	Mineral
                                         Rights.

 

		(i)	The
                                         Technical Report and the Public Record describe all mineral interests, mining concessions,
                                         mining tenements or other mineral rights owned by or subject to any license, option or
                                         similar agreement in favour of the Borrower that are material to the Business (the “Mineral
                                         Rights”). The Borrower does not hold, license or have any other material interest
                                         in any mineral interests, mining concessions, mining tenements or other mineral rights
                                         other than the Mineral Rights.

 

		(ii)	The
                                         Mineral Rights have been properly located and recorded in compliance with Applicable
                                         Law and are comprised of valid and subsisting mineral claims.

 

		(iii)	The
                                         Borrower is the recorded and beneficial owner of the Mineral Rights with good and marketable
                                         title thereto, free and clear of any title defect or Encumbrance.

 

		(iv)	The
                                         Mineral Rights constitute all of the right, title and interest necessary or appropriate
                                         to authorize and enable the Borrower to carry on the Business.

     

    - 20 -

    

		(v)	The
                                         Borrower has the exclusive right to deal with the Mineral Rights, and there are no restrictions
                                         on the ability of the Borrower to use, transfer or exploit the Mineral Rights except
                                         pursuant to Applicable Law.

 

		(vi)	No
                                         person other than the Borrower has any interest in the production or profits to be obtained
                                         in the future from the Mineral Rights or any royalty in respect thereof or any right
                                         to acquire any such interest.

 

		(vii)	There
                                         are no farm-in or earn-in rights, rights of first refusal, preferential, or other similar
                                         rights or provisions which could affect the Mineral Rights.

 

		(viii)	The
                                         Borrower has not received any notice, whether written or oral, from any Governmental
                                         Authority or any person with jurisdiction or applicable authority of any revocation or
                                         intention to revoke the interest of the Borrower in any Mineral Right.

 

		(ix)	The
                                         Mineral Rights are in good standing under Applicable Law; all work required to be performed
                                         thereon has been performed and all Taxes, rentals, fees, expenditures and other payments
                                         in respect thereof have been paid or incurred and all filings in respect thereof have
                                         been made.

 

		(x)	All
                                         exploration activities in respect of the Mineral Rights have been conducted in all material
                                         respects in accordance with good mining and engineering practices and all material workers’
                                         compensation and health and safety regulations have been complied with.

 

		(xi)	There
                                         are no adverse claims, actions, suits or proceedings that have been commenced, and to
                                         the knowledge of the Borrower none are pending or threatened and there are no state of
                                         facts or events that may give rise thereto or which could affect the title to or right
                                         to explore or develop the Mineral Rights which involves the possibility of any judgment
                                         or liability affecting the Mineral Rights.

 

		(j)	Expropriation.
                                         No asset of the Borrower and none of the Mineral Rights have been taken or expropriated
                                         by any Governmental Authority or person, nor has any notice or proceeding in respect
                                         thereof been given or commenced nor, to the knowledge of the Borrower, is there any intent
                                         or proposal to give any such notice or commence any such proceeding.

 

		(k)	No
                                         Options, etc. No person has any contract (including an option or any right or
                                         privilege capable of becoming same) for the purchase from the Borrower of any of its
                                         material assets (including without limitation the Mineral Rights). Borrower has not and
                                         is not marketing its real property, the Mineral Rights, or any portion thereof, for sale
                                         or for lease.

     

    - 21 -

    

		(l)	Environmental.
                                         Except as disclosed in the Disclosure Schedule:

 

		(i)	To
                                         the knowledge of the Borrower, the Business, and the Mineral Rights and all operations
                                         thereon have been and are in material compliance with Environmental Laws.

 

		(ii)	The
                                         Borrower has not used or permitted to be used, except in compliance with all Environmental
                                         Laws, any property of the Borrower to release, generate, manufacture, process, distribute,
                                         use, treat, store, transport or handle any Hazardous Substance.

 

		(iii)	None
                                         of the Borrower, the Business nor the Mineral Rights is subject to any pending, nor,
                                         to the knowledge of the Borrower, any threatened:

 

		A.	claim,
                                         action, notice, demand, allegation, investigation, proceeding, application, order, judgment,
                                         requirement or directive which relates to environmental, Hazardous Substances, human
                                         health or safety matters, and which may require or result in any work, repairs, rehabilitation,
                                         reclamation, remediation, construction, obligations, liabilities or expenditures (and
                                         there is no basis for such a claim, action, notice, demand, allegation, investigation,
                                         proceeding, application, order, judgment, requirement or directive); or

 

		B.	allegation,
                                         demand, direction, order, notice or prosecution with respect to any Environmental Law
                                         applicable thereto including any Environmental Law respecting the use, storage, treatment,
                                         transportation, rehabilitation, reclamation, remediation or disposition of any Hazardous
                                         Substance (including without limitation tailings, waste rock, sediment from erosion,
                                         wastewater and surface water run-off) from the Business or the Mineral Rights and the
                                         Borrower has not settled any allegation of non-compliance with Environmental Laws prior
                                         to prosecution.

 

		(iv)	To
                                         the knowledge of the Borrower, there are no pending or proposed changes to Environmental
                                         Laws that would render illegal or materially restrict, the Business.

 

		(m)	Taxes
                                         and Filings. All Taxes due and payable by the Borrower, have been paid except where
                                         the failure to pay such Taxes would not reasonably be expected to result in a Material
                                         Adverse Change. All Tax Returns, declarations, remittances and filings required to be
                                         filed by the Borrower have been filed with all appropriate Governmental Authorities and
                                         all such returns, declarations, remittances and filings did not contain a misrepresentation
                                         as at the respective dates thereof except where the failure to file such documents or
                                         such misrepresentation would not reasonably be expected to have a Material Adverse Change.
                                         To the knowledge of the Borrower, no examination of any Tax Return of the Borrower is
                                         currently in progress and there are no issues or disputes outstanding with or threatened
                                         by any Governmental Authority respecting any Taxes that have been paid, or may be payable,
                                         by the Borrower.

     

    - 22 -

    

		(n)	Compliance
                                         with Contracts. Except for matters that would not, individually or in the aggregate,
                                         reasonably be expected to result in a Material Adverse Change, (i) the Borrower is not
                                         and, to the knowledge of the Borrower, no third party is in breach or default of any
                                         contract, instrument or other agreement to which it is a party and (ii) no event has
                                         occurred which, with notice or lapse of time or both, would constitute such a default
                                         or breach.

 

		(o)	Compliance
                                         with Applicable Laws, Licenses and Authorization. The Borrower (i) has conducted
                                         and is conducting its Business in compliance in all material respects with all Applicable
                                         Laws of each jurisdiction in which it carries on business and (ii) possesses or will
                                         possess all Authorizations necessary to carry on its Business as currently conducted
                                         and the Borrower expects any additional Permits that are required to carry out its planned
                                         business activities, including without limitation the re-commencement of exploration
                                         activities at the Project, to be obtained, except where the failure to possess or obtain
                                         such Permits would not reasonably be expected to result in a Material Adverse Change.
                                         The Borrower is in compliance in all material respects with the terms and conditions
                                         of all such Authorizations and the Borrower has not received any notice of the material
                                         modification, revocation or cancellation of, or any intention to materially modify, revoke
                                         or cancel or any proceeding relating to the modification, revocation or cancellation
                                         of any such Authorization.

 

		(p)	Insolvency.
                                         The Borrower has not admitted in writing that it is, or has been declared to be,
                                         insolvent or unable to pay its debts as they become due. The Borrower has not committed
                                         an act of bankruptcy or sought protection from its creditors before any court or pursuant
                                         to any legislation, proposed a compromise or arrangement to its creditors generally,
                                         taken any proceeding with respect to a compromise or arrangement, taken any proceeding
                                         to be declared bankrupt or wound up, taken any proceeding to have a receiver appointed
                                         over any of its assets, had any Person holding any Encumbrance, charge, hypothec, pledge,
                                         mortgage, title retention agreement or other security interest or receiver take possession
                                         of any of its Property, had an execution or distress become enforceable or levied upon
                                         any portion of its Property or had any petition for a receiving order in bankruptcy filed
                                         against it.

 

		(q)	Insurance.
                                         The assets, Business and operations of the Borrower are insured against loss or damage
                                         with financially sound and reputable insurers on a basis consistent with insurance obtained
                                         by reasonably prudent participants in a comparable business in comparable circumstances
                                         and such coverage is in full force and effect and all premiums in respect thereof that
                                         are due and payable have been paid.

 

		(r)	Material
                                         Contracts. Each of the Material Contracts is in full force and effect. The Borrower
                                         is not in default under or in breach of any term or condition of any Material Contract
                                         to which it is a party that would result in, either individually or in the aggregate,
                                         a Material Adverse Change, nor is the Borrower aware of any default under or breach of
                                         any term or condition of any Material Contract by any other party thereto that would
                                         result in a Material Adverse Change.

     

    - 23 -

    

		3.4	Reliance
                                         and Survival of Representations and Warranties of the Borrower.

 

The
representations and warranties of the Borrower contained in this Agreement and in all certificates delivered pursuant to or contemplated
by this Agreement will survive the execution of this Agreement. Each representation and warranty will be deemed to repeat on the
date of each Advance hereunder. The Borrower acknowledges that the representations, warranties, covenants and acknowledgements
contained in this Agreement are made by the Borrower with the intent that they may be relied upon by the Lender and its legal
counsel. The Borrower covenants with the Lender that such representations, warranties, covenants and acknowledgements will be
true at the time of execution of this Agreement, and at the time of each Advance.

 

ARTICLE
FOUR

COVENANTS AND REPRESENTATIONS OF THE LENDER

 

		4.1	General
                                         Representations, Warranties, Covenants and Acknowledgements of the Lender.

 

The
Lender acknowledges, represents and warrants to, and covenants with the Borrower that:

 

		(a)	The
                                         Lender has been duly incorporated and validly exists under the Applicable Laws of its
                                         jurisdiction of incorporation or continuance and this Agreement has been duly authorized
                                         by all necessary corporate action and constitutes a legal and binding agreement of the
                                         Lender;

 

		(b)	This
                                         Agreement has been duly and validly authorized, executed and delivered by and constitutes
                                         a legal, valid, binding and enforceable obligation of the Lender except that the enforceability
                                         of this Agreement may be subject to bankruptcy, insolvency, reorganization, fraudulent
                                         conveyance or transfer, moratorium and similar Applicable Laws affecting creditors’
                                         rights generally and subject to general principles of equity (regardless of whether enforceability
                                         is considered in a proceeding in equity or at law) and will not violate or conflict with
                                         the terms of any restriction, agreement or undertaking to which the Lender is a party;

 

		(c)	The
                                         entering into of this Agreement and the transactions contemplated hereby will not result
                                         in the violation of any of the terms and provisions of any Applicable Law, or the constating
                                         documents of, the Lender or of any agreement, written or oral, to which the Lender may
                                         be a party or by which it is or may be bound or the termination of any such agreement;
                                         and

 

		(d)	The
                                         Borrower’s legal counsel is acting solely for the Borrower in connection with this
                                         Agreement. The Lender is solely responsible for obtaining such tax, investment and legal
                                         advice from its own advisors as it considers appropriate in connection with the execution,
                                         delivery and performance by it of this Agreement and the transactions contemplated hereunder.

     

    - 24 -

    

		4.2	Reliance
                                         Upon Representations, Warranties, Covenants and Acknowledgements of the Lender.

 

The
Lender acknowledges that the representations, warranties, covenants and acknowledgements contained in this Agreement are made
by the Lender with the intent that they may be relied upon by the Borrower and its legal counsel.

 

ARTICLE
FIVE

CONDITIONS PRECEDENT TO EACH ADVANCE UNDER THE LOAN

 

		5.1	Conditions
                                         Precedent to Advance.

 

The
Lender’s obligation to make any Advance is subject to the following conditions precedent having been met to the Lender’s
sole satisfaction or waived by the Lender in writing at the time of that Advance, namely:

 

		(a)	the
                                         Lender shall have received, in each case duly executed and delivered and in form and
                                         substance satisfactory to the Lender, (i) this Agreement and (ii) each other Transaction
                                         Document;

 

		(b)	all
                                         required recordings, filings and registrations shall have been made which, in the reasonable
                                         opinion of the Lender or its counsel, are desirable or required to make effective the
                                         Security Interest in favour of the Lender created or intended to be created by the Security
                                         Agreements and to ensure the perfection and priority of the Security Interest;

 

		(c)	the
                                         Lender shall have received and be satisfied with the results of all personal property,
                                         real property, pending litigation, judgment, bankruptcy, bulk sale, execution and other
                                         searches conducted by the Lender and its counsel with respect to the Borrower in all
                                         jurisdictions selected by the Lender, including, but not limited to, an updated title
                                         opinion on the Project real property and Mineral Rights; and

 

		(d)	the
                                         Lender shall have received such other documents, information and deliveries as may be
                                         reasonably required by the Lender.

 

ARTICLE
SIX

ISSUANCE OF WARRANTS

 

		6.1	Warrants.

 

On
the date of the Advance, provided the representations and warranties of the Lender are true and correct on such date, the Borrower
shall cause the Corporation to issue 11,500,000 share purchase warrants (the “Warrants”) to the Lender and
to deliver a certificate representing the Warrants, substantially in the form attached hereto as Exhibit A. Each warrant
shall entitle the Lender to purchase one Share at a price of CDN$0.10 per share for a period of 3 years from the date of issuance
of the Warrants. The issuance of Warrants and any Shares issued upon the due exercise of any Warrants shall not constitute security
for or payment of the Loan.

     

    - 25 -

    

		6.2	Representations,
                                         Warranties, Covenants and Acknowledgements of the Lender.

 

The
Lender acknowledges, represents and warrants to, and covenants with the Borrower that:

 

		(a)	No
                                         agency, Governmental Authority, regulatory body, stock exchange or other entity has made
                                         any finding or determination as to the merit for investment of, nor has any such agency,
                                         Governmental Authority, regulatory body, stock exchange or other entity made any recommendation
                                         or endorsement with respect to the Securities;

 

		(b)	It
                                         is intended that the distribution of the Securities be exempt from the registration and
                                         prospectus filing requirements under Applicable Securities Laws of Canada and, therefore,
                                         the Lender must satisfy the criteria for reliance by the Corporation on such exemption.
                                         The Lender acknowledges and agrees that as a consequence of acquiring the Securities
                                         pursuant to such an exemption, certain protections, rights and remedies provided by such
                                         Applicable Securities Laws, including statutory rights of rescission or damages, will
                                         not be available to the Lender;

 

		(c)	The
                                         Lender has not been created and is not being used primarily to permit the acquisition
                                         of the Securities without a prospectus in reliance on an exemption from the prospectus
                                         requirements of Applicable Securities Laws or other Applicable Laws;

 

		(d)	No
                                         prospectus or offering memorandum within the meaning of Applicable Securities Laws has
                                         been delivered to or summarized for or seen by the Lender in connection with the issuance
                                         of the Warrants and the Securities, and the Lender is not aware of any such prospectus
                                         or offering memorandum having been prepared by the Corporation for such purpose;

 

		(e)	The
                                         Lender is an Accredited Investor by virtue of being a Person in respect of which all
                                         of the owners of interests, direct, indirect or beneficial, except the voting securities
                                         required by law to be owned by directors, are Persons that are Accredited Investors;

 

		(f)	No
                                         Person has made to the Lender any written or oral representations:

 

		(i)	that
                                         any Person will resell or repurchase the Securities;

 

		(ii)	as
                                         to the future price or value of any of the Securities;

 

		(g)	The
                                         Lender has no contract, undertaking, agreement or arrangement with any Person to sell,
                                         transfer or pledge to such Person, or anyone else, the Securities or any part thereof,
                                         or any interest therein other than a pro rata in-kind distribution of Securities by the
                                         Lender to its members, and has no present plans to enter into any such contract, undertaking,
                                         agreement or arrangement;

 

		(h)	The
                                         Lender is resident in the State of Wyoming, in the United States of America, and:

 

		(i)	is
                                         a U.S. Accredited Investor by virtue of being an entity in which all of the equity owners
                                         are U.S. Accredited Investors and shall be a U.S. Accredited Investor on the date of
                                         the Advance;

     

    - 26 -

    

		(ii)	acknowledges
                                         that it is acquiring the Securities as an investment for its own account and not for
                                         the benefit of any other Person and not with a view to any resale, distribution or other
                                         disposition of all or any of the Securities in violation of U.S. federal or state Applicable
                                         Securities Laws;

 

		(iii)	understands
                                         and acknowledges that the Securities have not been registered under the U.S. Securities
                                         Act or any state securities laws and that the distribution of the Securities contemplated
                                         hereby is being made solely to the Lender, as a U.S. Accredited Investor in a transaction
                                         not requiring registration under the U.S. Securities Act; accordingly the Securities
                                         are “restricted securities” within the meaning of Rule 144(a)(3) under the
                                         U.S. Securities Act;

 

		(iv)	acknowledges
                                         that the Corporation has not registered the issuance of any of the Securities under the
                                         U.S. Securities Act, and that there are substantial restrictions on the transferability
                                         of, including without limitation those set out in Section 0 hereof, and that it may not
                                         readily be possible for the Lender to liquidate, its investment in the Securities; and

 

		(v)	acknowledges
                                         and confirms that the acquisition of the Warrants has not been made through or as a result
                                         of any general solicitation or general advertising (as such terms are defined in Rule
                                         502(c) of Regulation D);

 

		(i)	Hedging
                                         transactions involving the Securities may not be conducted unless such transactions are
                                         in compliance with the provisions of the U.S. Securities Act and in each case only in
                                         accordance with Applicable Securities Laws;

 

		(j)	To
                                         the best of the Lender’s knowledge none of the funds advanced (i) have been or
                                         will be derived from or related to any activity that is deemed criminal under the Applicable
                                         Laws the United States of America or any other jurisdiction, or (ii) are being tendered
                                         on behalf of a Person or entity who has not been identified to the Lender. The Lender
                                         will promptly notify the Borrower if the Lender discovers that any of such representations
                                         ceases to be true, and will provide the Borrower with appropriate information in connection
                                         therewith;

 

		(k)	The
                                         Lender acknowledges and consents to the fact that the Corporation is collecting the Lender’s
                                         personal information for the purpose of fulfilling this Agreement. The Lender agrees
                                         that such personal information may be disclosed by the Corporation to (a) stock exchanges
                                         or securities regulatory authorities, (b) the Corporation’s registrar and transfer
                                         agent, (c) Canadian and U.S. tax authorities, (d) authorities pursuant to the Proceeds
                                         of Crime (Money Laundering) and Terrorist Financing Act (Canada) and the Uniting
                                         and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
                                         Terrorism Act of 2001 and (e) any of the other parties involved in the issuance of
                                         any of the Securities, including the Corporation’s legal counsel, and may be included
                                         in record books in connection with the issuance of the Securities. By executing this
                                         Agreement, the Lender is deemed to be consenting to the foregoing collection, use and
                                         disclosure of the Lender’s personal information and to the retention of such personal
                                         information for as long as permitted or required by Applicable Law or business practice.

     

    - 27 -

    

Notwithstanding
that the Lender may be acquiring the Securities as trustee or agent on behalf of an undisclosed principal, the Lender agrees to
provide, on request, particulars as to the identity of such undisclosed principal as may be required by the Corporation in order
to comply with the foregoing;

 

		(l)	If
                                         required by Applicable Securities Laws or other Applicable Laws the Lender will execute,
                                         deliver, file and otherwise assist the Corporation in filing such reports, undertakings
                                         and other documents with respect to the issuance of the Securities as may be required;

 

		(m)	The
                                         Lender is solely responsible for any lost certificates representing the Securities issued
                                         with respect to this Agreement delivered to the address set forth in Section 0
                                         hereof, and all costs relating to any future permitted
                                         removal of any legends affixed to the certificates representing the Securities issued
                                         pursuant to this Agreement; and

 

		(n)	In
                                         issuing the Warrants, the Corporation is relying upon the representations, warranties,
                                         covenants and acknowledgements of the Lender set out herein. The Lender hereby agrees
                                         to notify the Corporation immediately of any change in any representation, warranty,
                                         covenant, acknowledgement or other information relating to the Lender contained in this
                                         Agreement that takes place prior to the date of the Advance.

 

		6.3	Representations,
                                         Warranties, and Covenants of the Borrower.

 

The
Borrower represents and warrants to, and covenants with the Lender that:

 

		(a)	The
                                         Warrants have been or will be prior to their date of issuance duly created and authorized
                                         for issuance and, when issued and delivered by the Corporation, will be validly issued.

 

		(b)	For
                                         so long as the Warrants remain outstanding, the Borrower will cause the Corporation to
                                         reserve and keep available a sufficient number of Warrant Shares to satisfy its obligations
                                         under the Warrants.

 

		(c)	The
                                         Warrant Shares have been or will be prior to their date of issuance duly reserved and
                                         authorized for issuance and, upon receipt by the Corporation of the exercise price for
                                         the Warrants in full in accordance with the terms thereof, will be validly issued as
                                         fully paid and non-assessable shares in the capital stock of the Corporation, free and
                                         clear of any and all Encumbrances.

 

		(d)	The
                                         Borrower will cause the Corporation, for a period of three years from the date of issuance
                                         of the Warrants, to use reasonable commercial efforts to ensure that all Shares outstanding
                                         or issuable from time to time (including without limitation the Warrant Shares) continue
                                         to be or are listed and posted for trading on the CSE (or such other Canadian stock exchange
                                         acceptable to the Corporation), provided that this clause shall not be construed as limiting
                                         or restricting the Corporation from completing a consolidation, amalgamation, arrangement,
                                         takeover bid or merger that would result in the Shares ceasing to be listed and posted
                                         for trading on the CSE, so long as the holders of Shares receive securities of an entity
                                         which is listed on a stock exchange in Canada, or

     

    - 28 -

    

cash,
or the holders of the Shares have approved the transaction in accordance with the requirements of applicable corporate and securities
laws and the policies of the CSE.

 

		(e)	The
                                         Borrower will cause the Corporation to use its reasonable commercial efforts to maintain
                                         its status as a reporting issuer in the Reporting Jurisdictions and under the U.S. Exchange
                                         Act and make all requisite filings under Applicable Securities Laws including those necessary
                                         to remain a reporting issuer not in default in each of the provinces and other jurisdictions
                                         where it is or becomes a reporting issuer.

 

		6.4	Restrictions
                                         on Transfer.

 

		(a)	The
                                         Securities are subject to resale restrictions under Applicable Securities Laws and the
                                         Lender will comply with all Applicable Laws concerning any resale of the Securities and
                                         the Lender will consult with its legal advisors with respect to complying with any restrictions
                                         applying to such resale.

 

		(b)	The
                                         Lender consents to the Corporation making a notation on its records or giving instructions
                                         to any registrar or transfer agent of the Corporation in order to implement the restrictions
                                         on transfer set forth and described in this Agreement, and the Corporation will refuse
                                         to register any transfer of the Securities not made in accordance with Regulation S,
                                         pursuant to an effective registration statement under the U.S. Securities Act or pursuant
                                         to an exemption from the registration requirements of the U.S. Securities Act and in
                                         accordance with Applicable Securities Laws of the applicable state.

 

		(c)	Upon
                                         the issuance thereof, and until such time as the same is no longer required under Applicable
                                         Securities Laws, any certificates representing the Securities, and all securities issued
                                         in exchange therefor or in substitution thereof, will bear legends in substantially the
                                         following form:

 

“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE ●,
2019.”

 

“THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT
IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO RISE GOLD CORP. (THE “ISSUER”);
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT) THAT IS PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); (D) OUTSIDE THE UNITED STATES IN A TRANSACTION
MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT; OR (E) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY, FURNISH TO THE ISSUER AND/OR

     

    - 29 -

    

TRANSFER
AGENT FOR THIS SECURITY, AS APPLICABLE, SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO CONFIRM
THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS.”

 

		(d)	The
                                         Lender will only offer, sell or otherwise transfer the Securities pursuant to an effective
                                         registration statement under the U.S. Securities Act or pursuant to an exemption from
                                         the registration requirements imposed by the U.S. Securities Act and in compliance with
                                         state Applicable Securities Laws (and, in each case where there is no effective registration
                                         statement, only if an opinion of counsel of recognized standing reasonably satisfactory
                                         to the Corporation or other certifications reasonably satisfactory to the Corporation,
                                         have been provided to the Corporation to that effect).

 

		(e)	The
                                         Lender has no intention to, and will not, distribute (either directly or indirectly)
                                         any of the Securities in the United States, except in compliance with the U.S. Securities
                                         Act and the Applicable Securities Laws of all applicable states of the United States
                                         or if an exemption from such requirements is available.

 

ARTICLE
SEVEN

EVENTS OF DEFAULT

 

		7.1	Events
                                         of Default.

 

The
occurrence of any one or more of the following events or conditions shall constitute an “Event of Default” under this
Agreement:

 

		(a)	the
                                         Borrower fails to pay any principal amount owing under this Agreement or any other Transaction
                                         Document when due or any interest, fee or other amount payable hereunder or such other
                                         Transaction Document when due and payable;

 

		(b)	any
                                         material representation, warranty, certification or other statement of fact made or deemed
                                         made by or on behalf of the Borrower herein or in any other Transaction Document or any
                                         amendment or modification hereof or thereof or waiver hereunder or thereunder or in any
                                         certificate, document, report, financial statement or other document furnished by or
                                         on behalf of the Borrower under or in connection with this Agreement or any other Transaction
                                         Document, proves to have been false or misleading in any material respect on or as of
                                         the date made or deemed made;

 

		(c)	the
                                         Borrower fails to perform or observe any material covenant, term, condition or agreement
                                         contained in this Agreement or fails to perform or observe any other material covenant,
                                         term, condition or agreement contained in any other Transaction Document;

 

		(d)	any
                                         event or condition occurs that results in any indebtedness of the Borrower becoming due
                                         prior to its scheduled maturity or that enables or permits (with or without the giving
                                         of notice, the lapse of time or both) the holder of such indebtedness or any trustee
                                         or agent on the holder’s behalf, to cause any such indebtedness to become due,
                                         or to require

     

    - 30 -

    

the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;

 

		(e)	the
                                         Borrower fails to perform or observe any material covenant, term, condition or agreement
                                         under any Material Contract to which it is a party;

 

		(f)	the
                                         Borrower shall commence a voluntary case or other proceeding seeking a stay, liquidation,
                                         reorganization, compromise, arrangement or other relief with respect to the Borrower
                                         or its debts under any bankruptcy, insolvency, arrangement or other similar law now or
                                         hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian
                                         or other similar official of the Borrower or any substantial part of its property, or
                                         shall consent to any such relief or to the appointment of or taking possession by any
                                         such official in an involuntary case or other proceeding commenced against it, or shall
                                         make a general assignment for the benefit of creditors, or shall fail generally to pay
                                         its debts as they become due;

 

		(g)	an
                                         involuntary case or other proceeding shall be commenced against the Borrower seeking
                                         a stay, liquidation, reorganization, compromise, arrangement or other relief with respect
                                         to the Borrower or its debts under any bankruptcy, insolvency or other similar law now
                                         or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator,
                                         custodian or other similar official of the Borrower or any substantial part of its property,
                                         and such involuntary case or other proceeding shall remain undismissed and unstayed for
                                         a period of 30 consecutive days;

 

		(h)	if
                                         any proceedings are taken to enforce any Encumbrance affecting the assets of the Borrower
                                         or if a distress or any similar process be levied or enforced against such assets and
                                         such proceedings are not dismissed or stayed within 30 days after the commencement thereof;

 

		(i)	if
                                         a writ, execution, attachment or similar process is issued or levied against all or any
                                         portion of the property of the Borrower in connection with any judgment against it in
                                         an aggregate amount of at least $25,000 and such writ, execution, attachment or similar
                                         process is not released, bonded, satisfied, discharged, vacated or stayed within thirty
                                         days after its entry, commencement or levy;

 

		(j)	if
                                         one or more encumbrancers, liens or landlords take possession of any part of the Property
                                         of the Borrower or attempt to enforce their security or other remedies against such Property
                                         and their claims remain unsatisfied for such period as would permit such Property to
                                         be sold thereunder and such Property which has been repossessed or is capable of being
                                         sold has an aggregate fair market value of at least $25,000;

 

		(k)	this
                                         Agreement, any other Transaction Document or any material obligation or other material
                                         provision hereof or thereof at any time for any reason terminates or ceases to be in
                                         full force and effect and a legally valid, binding and enforceable obligation of the
                                         Borrower thereto, or is declared to be void or voidable or is repudiated by the Borrower,
                                         or the validity, legality or enforceability hereof or thereof is at any time contested
                                         by the Borrower, or the Borrower denies that it has any or any further liability or obligation

     

    - 31 -

    

hereunder
or thereunder, or at any time it is unlawful for the Borrower to perform any of its material obligations hereunder or thereunder;

 

		(l)	the
                                         Borrower shall abandon or suspend all or any material portion of its interest in the
                                         Project or surrender, cancel or release, or suffer any termination or cancellation of
                                         its licence, any of its material right or interest in the Project; and

 

		(m)	any
                                         Governmental Authority:

 

		(i)	condemns,
                                         nationalises, seizes or otherwise expropriates all or any material portion of the Project;
                                         or

 

		(ii)	assumes
                                         custody or control of all or any material portion of the Project.

 

		7.2	Rights
                                         of the Lender.

 

		(a)	Upon
                                         the occurrence and during the continuance of an Event of Default, following written notice
                                         from the Lender, all Obligations shall become forthwith due and payable.

 

		(b)	The
                                         Lender, without exonerating in whole or in part the Borrower, or forfeiting any rights
                                         hereunder may grant time, renewals, extensions, indulgences, releases and discharges
                                         to, may take securities from and give the same and any or all existing securities up
                                         to, may abstain from taking securities from or from perfecting securities of, may accept
                                         compositions from, and may otherwise deal with the Borrower and all other Persons and
                                         securities as the Lender may see fit.

 

		(c)	Following
                                         the occurrence of an Event of Default, and for so long as such event shall persist, the
                                         Lender may exercise all rights and remedies at law and in equity, including but not limited
                                         to foreclosure (whether judicial or non judicial) upon the real and personal property
                                         of Borrower in accordance with Applicable Law and the Security Agreements.

 

		(d)	Following
                                         the occurrence of an Event of Default, and for so long as such event shall persist, if
                                         the Borrower shall fail to perform any of its covenants or agreements in this Agreement
                                         or any other applicable Transaction Document, the Lender may (but shall have no obligation
                                         to) perform any or all such covenants or agreements in any manner deemed fit by the Lender
                                         without thereby waiving any rights to enforce the applicable Transaction Documents.

 

		(e)	Nothing
                                         herein shall obligate the Lender to extend or amend any credit to the Borrower or to
                                         any other Person.

 

		(f)	No
                                         failure to exercise and no delay in exercising, on the part of the Lender, any right,
                                         remedy, power or privilege hereunder or under the other Transaction Documents shall operate
                                         as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power
                                         or privilege hereunder preclude any other or further exercise thereof or the exercise
                                         of any other right, remedy, power or privilege.

     

    - 32 -

    

ARTICLE
EIGHT

GENERAL

 

		8.1	Indemnities.

 

The
Lender agrees to indemnify and hold harmless the Borrower and its directors, officers, employees, agents, advisors and legal counsel,
and their respective Associates and Affiliates, from and against any and all loss, liability, claim, damage and expense whatsoever
including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing
or defending against any litigation, administrative proceeding or investigation commenced or threatened or any claim whatsoever
arising out of or based upon any representation or warranty of the Lender contained herein or in any document furnished by the
Lender to the Borrower in connection herewith being untrue in any material respect or any breach or failure by the Lender to comply
with any covenant, acknowledgement or agreement made by the Lender herein or in any document furnished by the Lender to the Borrower
in connection herewith. The Borrower agrees to indemnify and hold harmless the Lender and its directors, officers, employees,
agents, advisors and legal counsel, and their respective Associates and Affiliates, from and against any and all loss, liability,
claim, damage and expense whatsoever including, but not limited to, any and all fees, costs and expenses whatsoever reasonably
incurred in investigating, preparing or defending against any litigation, administrative proceeding or investigation commenced
or threatened or any claim whatsoever arising out of or based upon any representation or warranty of the Borrower contained herein
or in any document furnished by the Borrower to the Lender in connection herewith being untrue in any material respect or any
breach or failure by the Borrower to comply with any covenant, acknowledgement or agreement made by the Borrower herein or in
any document furnished by the Borrower to the Lender in connection herewith.

 

		8.2	Waiver.

 

No
act or omission by the Lender in any manner whatever shall extend to or be taken to affect any provision hereof or any subsequent
breach or default or the rights resulting therefrom save only an express waiver in writing. No waiver of any of the provisions
of this Agreement shall be deemed to constitute a waiver of any other provisions (whether or not similar), nor shall such waiver
constitute a waiver or continuing waiver unless expressly provided in writing duly executed by the party to be bound thereby.
A waiver of default shall not extend to, or be taken in any manner whatsoever to affect the rights of the Lender with respect
to any subsequent default, whether similar or not. The Borrower waives every defence based upon any or all indulgences that may
be granted to the Lender.

 

		8.3	No
                                         Merger or Novation.

 

Neither
the taking of any judgment nor the exercise of any power of seizure or sale shall operate to extinguish the liability of the Borrower
to pay the moneys owing under the Transaction Documents nor shall the same operate as a merger of any covenant herein contained
or of any other Obligation, nor shall the acceptance of any payment or security constitute or create any novation.

     

    - 33 -

    

		8.4	Amalgamation.

 

The
Borrower acknowledges that if it amalgamates with any other corporation or corporations (a) the term “Corporation”
or “Borrower”, as applicable, and “Rise Group” where used herein shall extend to and include each of the
amalgamating corporations and the amalgamated corporation, and (b) the term, “Obligations”, where used herein shall
extend to and include the Obligations of each of the amalgamating corporations and the amalgamated corporation.

 

		8.5	Lender
                                         May Remedy Default.

 

If
the Borrower fails to do anything hereby required to be done by it, the Lender may, but shall not be obliged to, do all or any
such things, and all sums thereby expended by the Lender shall be payable forthwith the Borrower, shall be secured by the Security
Agreements and shall have the benefit of the lien created thereby, but no such performance by the Lender shall be deemed to relieve
the Borrower from any default or Event of Default hereunder.

 

		8.6	Notices.

 

All
notices, requests, demands or other communications (collectively, “Notices”) by the terms hereof required or
permitted to be given by one party hereto to the other parties hereto, or to any other Person shall be given by e-mail as the
primary and required form of notice with return receipt confirmed and, as a supplemental form of notice only, in writing by personal
delivery or by registered mail, postage prepaid, or by facsimile transmission or by electronic mail to such other party at:

 

	(a)	to
    the Lender at:
	 	 
	 	Eridanus
    Capital, LLC
	 	201
    East 5th Street, Suite 1200
	 	Sheridan,
    WY 82801
	 	 	 
	 	Attention:	Daniel
    Oliver Jr.
	 	Email:	doliver@myrmikan.com
	 	Fax
    No.:	307-222-1646
	 	 	 
	(b)	to
    the Borrower at:
	 	 
	 	Rise
    Grass Valley Inc.
	 	333
    Crown Point Circle, Ste 215
	 	Grass
    Valley, CA 95945
	 	 	 
	 	Attention:	Benjamin
    W. Mossman 
	 	Email:	ceo@risegoldcorp.com
    
	 	Fax
    No.:	604-428-1124
	 	 

or
at such other address as may be given by any party hereto to the other party hereto in writing from time to time. All such Notices
shall be deemed to have been received when delivered or transmitted, or, if mailed, seventy-two (72) hours after 12:01 a.m. on
the day following the day

     

    - 34 -

    

of
the mailing thereof. If any Notice shall have been mailed and if regular mail service shall be interrupted by strikes or other
irregularities, such Notice shall be deemed to have been received seventy-two (72) hours after 12:01 a.m. on the day following
the resumption of normal mail service, provided that during the period that regular mail service shall be interrupted, all Notices
shall be given by personal delivery, by facsimile transmission or by electronic mail.

 

		8.7	Invalidity
                                         of any Provisions.

 

Any
provision of this Agreement which is prohibited by the laws of any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition without invalidating the remaining terms and provisions hereof or thereof and no such invalidity
shall affect the obligation of the Borrower to repay the Obligations. This Agreement and all its provisions shall enure to the
benefit of the Lender, its successors and assigns and shall be binding upon the the Borrower, its successors and assigns. Presentment,
notice of dishonour, protest and notice of protest hereof are hereby waived.

 

		8.8	Amendments.

 

This
Agreement may only be amended by written agreement signed by each of the parties hereto.

 

		8.9	Entire
                                         Agreement.

 

This
Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all
existing agreements between them concerning such subject matter.

 

		8.10	Assignments.

 

The
Borrower may not assign, transfer or deliver all or any part of its rights or obligations hereunder without the prior written
consent of the Lender. The Lender may, without the Borrower’s consent, assign, transfer or deliver all or any part of its
rights and obligations hereunder.

 

		8.11	Further
                                         Assurances.

 

The
Borrower shall, at the Borrower’s expense and upon request of the Lender, duly execute and deliver, or cause to be duly
executed and delivered, to the Lender such further instruments and do and cause to be done such further acts as may be necessary
or proper in the reasonable opinion of the Lender to carry out more effectively the provisions and purposes of this Agreement.

 

		8.12	Payments
                                         without Deduction.

 

All
payments to be made by the Borrower under this Agreement or any other Transaction Document (whether on account of principal, interest,
fees, costs or any other amount) shall be made in United States dollars and shall be made in freely transferable, immediately
available funds and without set-off, withholding or deduction of any kind whatsoever, except to the extent required by Applicable
Law; provided that if the Borrower shall be required to deduct or

     

    - 35 -

    

withhold
any Taxes from such payments, then the sum payable shall be increased as necessary so that, after making all required deductions
or withholdings, the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been
made.

 

[Signature
page follows]

     

     

    

This
Agreement has been executed by the parties.

 

	 	RISE
    GRASS VALLEY INC.
	 	 
	 	By:	 
	 	 	  Name: 	Benjamin W.
    Mossman
	 	 	  Title:	President
    and Chief Executive Officer
	 	 	 	 
	 	ERIDANUS
    CAPITAL, LLC 
	 	 	 	 
	 	By
    its Manager:
	 	 
	 	Myrmikan
    Capital, LLC
	 	a
    Delaware limited liability company
	 	 	 	 
	 	By:	 
	 	 	  Name:	Daniel
    Oliver Jr.
	 	 	  Title:	Manager
	 	 	 	 

[Signature
Page to Agreement]

     

     

    

EXHIBIT
A

FORM OF WARRANT CERTIFICATE

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY, OR ANY SECURITIES THAT ARE ISSUABLE
UPON ITS EXERCISE, BEFORE ●, 2019.

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT
IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO RISE GOLD CORP. (THE “ISSUER”);
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT) THAT IS PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); (D) OUTSIDE THE UNITED STATES IN A TRANSACTION
MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT; OR (E) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY, FURNISH TO THE ISSUER AND/OR
TRANSFER AGENT FOR THIS SECURITY, AS APPLICABLE, SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO
CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS.

 

WARRANT
CERTIFICATE

 

RISE
GOLD CORP.

(incorporated under the laws of the State of Nevada)

 

	Certificate
    No. ●	Warrants
    to Purchase 

    ● Shares of Common Stock
	 	 

THIS
IS TO CERTIFY THAT, for value received, ●, (the “Holder”) is entitled
to purchase up to ● fully paid and non-assessable shares of the common stock (the “Warrant
Shares”) of Rise Gold Corp. (the “Corporation”) at a price of $0.10 per Warrant Share at any time
up to 5:00 PM (Vancouver time) on ●, 2022 (the “Expiry Time”), upon
and subject to the terms and conditions contained in this warrant certificate (this “Warrant Certificate”).

     

     

    

The
securities represented hereby will be void and of no value unless exercised prior to the Expiry Time.

 

The
rights represented by this Warrant Certificate may only be exercised by the Holder, in whole or in part (but not as to any fractional
Warrant Shares), by:

 

		(a)	duly
                                         completing, in the manner indicated, and executing the exercise form attached as Schedule
                                         “A” hereto (the “Exercise Form”); and

 

		(b)	surrendering
                                         this Warrant Certificate to the Corporation during normal business hours at Suite 650
                                         – 669 Howe Street, Vancouver, British Columbia, V6C 0B4, Attention: Chief Financial
                                         Officer, together with cash, a certified cheque, bank draft or money order payable to
                                         or to the order of the Corporation, or evidence of a wire transfer sent to a bank account
                                         designated in writing by the Corporation, in the amount of the aggregate Exercise Price
                                         for the number of Warrant Shares subscribed.

 

Upon
the exercise of the rights represented by this Warrant Certificate and payment of such aggregate Exercise Price in accordance
with the terms hereof, the Warrant Shares for which the Holder has subscribed shall be deemed to have been issued and the Holder
shall be deemed to have become the holder of record of the applicable number of Warrant Shares on the date of such exercise and
payment.

 

In
the event of any exercise of the Warrants represented by this Warrant Certificate, certificates representing the Warrant Shares
so purchased shall be delivered to the Holder within a reasonable time, not exceeding five business days after such exercise and,
unless this Warrant Certificate has expired, a new warrant certificate representing the number of Warrants, if any, with respect
to which this Warrant Certificate has not then been exercised, shall also be issued and delivered to the Holder within such time.

 

Subject
to applicable securities laws, the Warrants are transferable and the term “Holder” shall mean and include any successor,
transferee or assignee of the current or any future Holder. The Warrants may be transferred by the Holder (a) completing
and delivering to the Corporation the form of transfer attached hereto as Schedule “B” and (b) delivering to
the Corporation an opinion of counsel reasonably satisfactory to the Corporation, or other certification reasonably satisfactory
to the Corporation, confirming that the transfer is being made in compliance with an available exemption from the registration
requirements of the U.S. Securities Act and applicable state laws unless such transfer is the result of a pro rata in-kind distribution
by the Lender to its members.

 

The
Corporation covenants to the Holder that, for so long as any securities represented by this Warrant Certificate remain outstanding:

 

		(a)	it
                                         will reserve and keep available a sufficient number of shares of common stock (each,
                                         a “Share”) for the purpose of enabling it to satisfy its obligations
                                         to issue any Warrant Shares upon the exercise of any Warrant represented hereby;

     

     

    

		(b)	it
                                         will cause the Warrant Shares from time to time acquired pursuant to the exercise of
                                         any Warrants represented hereby to be duly issued and delivered in accordance with this
                                         Warrant Certificate and the terms hereof;

 

		(c)	all
                                         Warrant Shares which shall be issued upon the exercise of the Warrants represented hereby
                                         shall be fully paid and non-assessable;

 

		(d)	it
                                         will use reasonable commercial efforts to maintain its existence and carry on its business
                                         in the ordinary course;

 

		(e)	it
                                         will use reasonable commercial efforts to ensure that all Shares outstanding or issuable
                                         from time to time (including, without limitation, the Warrant Shares issuable upon the
                                         exercise hereof) continue to be or are listed and posted for trading on the Canadian
                                         Securities Exchange (the “Exchange”) (or such other Canadian stock
                                         exchange acceptable to the Corporation), provided that this clause shall not be construed
                                         as limiting or restricting the Corporation from completing a consolidation, amalgamation,
                                         arrangement, takeover bid or merger that would result in the Shares ceasing to be listed
                                         and posted for trading on the Exchange, so long as the holders of Shares receive securities
                                         of an entity which is listed on a stock exchange in Canada, or cash, or the holders of
                                         Shares have approved the transaction in accordance with the requirements of applicable
                                         corporate and securities laws and the policies of the Exchange; and

 

		(f)	it
                                         will make all requisite filings under Canadian and U.S. federal and state applicable
                                         securities laws including those necessary to remain a reporting issuer not in default
                                         in the United States and each of the Canadian provinces and other Canadian jurisdictions
                                         where it is or becomes a reporting issuer.

 

The
Corporation represents and warrants to the Holder that the Corporation is duly authorized and has all corporate and lawful power
and authority to issue and create, as applicable, the Warrants represented hereby and the Warrant Shares issuable upon the exercise
thereof, to execute and deliver this Warrant Certificate and to perform its obligations hereunder and that this Warrant Certificate
represents a valid, legal and binding obligation of the Corporation enforceable in accordance with its terms.

 

IN
WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be duly executed as of ●,
2019.

 

RISE
GOLD CORP.

 

 

 

	Per:	 	 
	 	Authorized
    Signatory	 

     

     

    

TERMS
AND CONDITIONS

 

		1.	In
                                         the event of any alteration of the Shares, including any subdivision, consolidation,
                                         rights offering, reclassification or payment of any stock dividends, or in the event
                                         of any form of reorganization of the Corporation, including any amalgamation, merger
                                         or arrangement (collectively, a “Reorganization”), an adjustment will
                                         be made to the terms of the securities represented by this Warrant Certificate (including
                                         without limitation, the Exercise Price) such that the Holder, upon the exercise of any
                                         such securities following the completion of the Reorganization, will be entitled to receive
                                         the same number and kind of securities that it would have been entitled to receive as
                                         a result of the Reorganization had it exercised such securities immediately prior to
                                         the Reorganization.

 

		2.	The
                                         Corporation will not effect any Reorganization which could result in a successor to the
                                         Corporation unless prior to or simultaneously with the consummation thereof, the entity
                                         succeeding the Corporation acknowledges in writing that it is bound by and will comply
                                         with the provisions set forth in this Warrant Certificate.

 

		3.	If,
                                         at any time:

 

		(a)	the
                                         Corporation pays any dividend payable in stock or other securities upon the Shares or
                                         makes any distribution to the holders of the Shares;

 

		(b)	the
                                         Corporation offers for subscription pro rata to the holders of the Shares any additional
                                         shares of stock or other securities of any class or other rights;

 

		(c)	there
                                         is a voluntary or involuntary dissolution, liquidation or winding-up of the Corporation;
                                         or

 

		(d)	the
                                         Corporation effects any Reorganization;

 

written
notice prior to the earlier of (i) the date on which the books of the Corporation will close; and (ii) a record will be taken
for (A) such dividend, distribution or offer of subscription rights; or (B) determining rights to vote with respect to such dissolution,
liquidation or winding-up or Reorganization and, in the case of such dissolution, liquidation or winding-up or Reorganization,
at least 14 days’ prior written notice of the date when the same will take place. Such written notice will also specify,
in the case of any dividend, distribution or offer of subscription rights, the date on which the holders of the Shares will be
entitled thereto, and such notice will also specify the date on which the holders of the Shares will be entitled to exchange the
Shares for securities or other property deliverable upon any dissolution, liquidation or winding-up or Reorganization, as the
case may be.

 

		4.	In
                                         accordance with this Warrant Certificate, and in addition to the adjustments set out
                                         in Section 1, the Corporation will make any adjustments it considers necessary and
                                         equitable, acting in good faith, in the event of any reorganization, transaction, change
                                         or alteration to the Shares to ensure that, directly or indirectly, no such reorganization,

     

     

    

transaction,
change or alteration in any way limits or restricts the number of Shares which may ultimately be acquired by the Holder pursuant
to the exercise of this Warrant Certificate. If at any time a dispute arises with respect to any adjustments provided for herein,
such dispute will be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by
such other firm of independent chartered accountants as may be selected by the directors of the Corporation and any such determination,
absent manifest error, will be binding upon the Corporation, the Holder and stockholders of the Corporation. The Corporation will
provide such auditors or accountants with access to all necessary records of the Corporation and fees payable to such accountants
or auditors will be paid by the Corporation.

 

		5.	To
                                         the extent that this Warrant Certificate confers the right to purchase a fraction of
                                         a Warrant Share, such right may be exercised in respect of such fraction only in combination
                                         with one or more Warrants which in the aggregate entitle the Holder to subscribe for
                                         and purchase a whole number of Warrant Shares. The Corporation will not issue any fractional
                                         Shares or provide consideration lieu thereof.

 

		6.	The
                                         Holder may, at any time prior to the Expiry Time, upon the surrender of this Warrant
                                         Certificate to the Corporation and upon the payment of such applicable charges as may
                                         be required by the Corporation from time to time, exchange this Warrant Certificate for
                                         another warrant certificate entitling the Holder to subscribe for and purchase the same
                                         number of Warrant Shares as are purchasable under this Warrant Certificate at the time
                                         of such exchange.

 

		7.	This
                                         Warrant Certificate shall not entitle the Holder to any rights as a stockholder of the
                                         Corporation, including voting rights.

 

		8.	Any
                                         notice to be given hereunder to the Holder shall be given in writing and either sent
                                         by electronic transmission, delivered, or mailed by prepaid post to the Holder at the
                                         address indicated on the first page of this Warrant Certificate, or at such other address
                                         as the Holder may designate to the Corporation by written notice. If such notice is sent
                                         by electronic transmission or is delivered, it shall be deemed to have been given at
                                         the time of sending or delivery; if such notice is sent by mail, it shall be deemed to
                                         have been given 72 hours following the date of mailing. In the event of a mail strike
                                         or disruption in postal service at or prior to the time a notice is deemed to have been
                                         received by mail, such notice shall be delivered or sent by electronic transmission.

 

		9.	This
                                         Warrant Certificate shall be governed by and construed in accordance with the laws of
                                         the Province of British Columbia, without reference to its rules governing the choice
                                         or conflict of laws. The Parties hereto irrevocably attorn and submit to the exclusive
                                         jurisdiction of the courts of the Province of British Columbia, sitting in the city of
                                         Vancouver, with respect to any dispute to or arising out of this Warrant Certificate.

 

		10.	All
                                         references to currency in this Warrant Certificate are to Canadian dollars.

 

		11.	Time
                                         shall be of the essence hereof.

     

     

    

SCHEDULE
“A”

 

EXERCISE
FORM

 

	TO:	Rise
    Gold Corp.
	 	Suite
    650 – 669 Howe Street
	 	Vancouver,
    BC V6C 0B4
	 	Attention:
    Chief Financial Officer
	 	 

The
undersigned hereby exercises the right provided for in the Warrant Certificate to which this Exercise Form is attached to purchase
_______________ Warrant Shares according to the terms and conditions of such Warrant Certificate and herewith makes payment in
the amount of CDN$_______________ as the purchase price in full for such Warrant Shares at a price of CDN$0.10 per Warrant Share
or the adjusted dollar amount per Warrant Share at which the undersigned is entitled to purchase such Warrant Shares as provided
in the Warrant Certificate.

 

The
undersigned hereby directs that the Warrant Shares be issued and delivered as follows:

 

	Name	Address	Number
    of Shares
	 	 	 
	 	 	 
	 	 	 

 

The
undersigned represents, warrants and certifies that at the time of exercise of the rights represented by the Warrant Certificate
(CHECK one (only) of the following):

 

		o	(1)          The
                                         undersigned holder (i) is not in the United States, (ii) is not a U.S. person (“U.S.
                                         Person”), as defined in Regulation S under the United States Securities Act of
                                         1933, as amended (the “U.S. Securities Act”), (iii) is not exercising the
                                         Warrants for the account or benefit of a U.S. Person or a person in the United States,
                                         (iv) did not execute or deliver this exercise form in the United States, and (v) delivery
                                         of the underlying shares will not be to an address in the United States; OR

 

		o	(2)          The
                                         undersigned holder (a) is the original U.S. purchaser of the Warrants, (b) is exercising
                                         the Warrants for its own account, and (c) is an “accredited investor” as
                                         defined in Rule 501(a) of Regulation D under the U.S. Securities Act at the time of exercise
                                         of the Warrants; OR

     

     

    

		o	(3)          If
                                         the undersigned holder is (i) a holder in the United States, (ii) a U.S. Person, (iii)
                                         a person exercising for the account or benefit of a U.S. Person or a person in the United
                                         States, (iv) executing or delivering this exercise form in the United States or (v) requesting
                                         delivery of the underlying shares in the United States, the undersigned holder has delivered
                                         to the Corporation and the Corporation’s transfer agent an opinion of counsel (which
                                         will not be sufficient unless it is in form and substance reasonably satisfactory to
                                         the Corporation) or other certifications reasonably satisfactory to the Corporation to
                                         the effect that the offer and sale of the Warrant Shares to be delivered upon exercise
                                         of the Warrants is exempt from the registration requirements of the U.S. Securities Act
                                         and applicable state securities laws.

 

It
is understood that the Corporation and its transfer agent may require evidence to verify the foregoing representations.

 

Except
as otherwise defined, capitalized terms used in this Exercise Form have the meanings ascribed thereto in the Warrant Certificate
to which this Exercise Form is attached.

 

	 	 
	Signature	 
	 	 
	Name	 
	 	 
	Title
    (if applicable)	 
	 	 
	Date	 

     

     

    

SCHEDULE
“B”

FORM OF TRANSFER

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto __________________ (name) (the “Transferee”),
of __________________________________________________________ (residential address) _________________________ Warrants
of Rise Gold Corp. (the “Corporation”) registered in the name of the undersigned on the records of the
Corporation represented by the attached Warrant certificate, and irrevocably appoints the Secretary of the Corporation as the
attorney of the undersigned to transfer the said securities on the books or register of transfer, with full power of substitution.

 

DATED
the ___________ day of ________________________, 20__.

 

	 	 	 
	Signature
    Guaranteed	 	(Signature
    of Warrant holder, to be the same as appears on the face of this Warrant Certificate)
	 	 	 
	 	 	 
	 	 	(Print
    Name)
	 	 	 
	 	 	 
	 	 	(Print
    Address)
	 	 	 

Instructions:

 

		1.	Signature
                                         of the Warrant holder must be the signature of the person appearing on the face of this
                                         Warrant Certificate.

 

		2.	If
                                         the Transfer Form is signed by a trustee, executor, administrator, curator, guardian,
                                         attorney, officer of a corporation or any person acting in a fiduciary or representative
                                         capacity, the certificate must be accompanied by evidence of authority to sign satisfactory
                                         to the Corporation.

 

		3.	Warrants
                                         shall only be transferable in accordance with applicable laws.

     

     

    

EXHIBIT
B

DISCLOSURE SCHEDULE

 

The
following references to section numbers refer to those under the heading “Definitions” in the Agreement.

 

Section 
0 (Permitted Encumbrances).

 

The
Internal Revenue Service has assessed a penalty against the Corporation of US$10,000 for every year that it did not file a tax
return which span the years from 2007 until 2015. All filings have been made; however, as a result of failing to file returns
when they were due, Rise has accrued US$90,000 in penalties with the IRS. The Corporation has received notice from the Department
of the Treasury – Internal Revenue Service that there is a lien in favour of the United States on all property and right
to property belonging to the Corporation for the amount of these taxes, and additional penalties, interest and costs that may
accrue. On August 26, 2019 the Corporation made a payment of US$90,000 to the IRS. The Corporation will request a certificate
of release of federal tax lien.

 

The
following references to section numbers refer to those under the heading “Representations and Warranties of the Borrower”
in the Agreement.

 

Section 3.3(h)
(Ownership of Property).

 

Uniform
Commercial Code searches in Nevada for the Rise Group dated August 26, 2019 show Meridian Jerritt Canyon Corp. (“Meridian”)
as a current secured party of record. These registrations relate to the collateral agreement dated February 14, 2019 made
among the Rise Group and Meridian securing obligations under a convertible debenture dated February 14, 2019 issued by the
Corporation to Meridian. The obligations were satisfied upon the conversion of the convertible debenture in accordance with the
terms of the debenture on March 1, 2019. The Borrower is seeking to have the registrations terminated.

 

Section 
0 (Environmental).

 

There
are historic mine waste rock and tailings on the Idaho Maryland Centennial Drive property. There is also a seep of mine water
on Idaho Maryland road.

     

     

    

EXHIBIT
C

WIRE INSTRUCTIONS FOR PAYMENTS BY THE BORROWER

 

Bank:
JP Morgan Chase Bank

Account Name: Eridanus Capital, LLC

Routing Number: 021000021

Account Number: 526587370Exhibit 10.12

 

EXECUTION
VERSION

 

COLLATERAL
AGREEMENT

 

made
by

 

RISE
GOLD CORP. and RISE GRASS VALLEY INC.

 

and

 

THE
OTHER PLEDGORS FROM TIME TO TIME PARTY HERETO

 

in
favor of

ERADINUS CAPITAL, LLC,

as Secured Party

Dated as of August 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

COLLATERAL
AGREEMENT, (as amended, supplemented or otherwise modified from time to time, this “Agreement”) dated as of
August 30, 2019, made by RISE GOLD CORP., a Nevada corporation (the “Parent Party”) and RISE GRASS VALLEY INC.,
a Nevada corporation, (the “Borrower”) in favor of ERIDANUS CAPITAL, LLC, a Wyoming limited liability company,
as secured party (in such capacity, together with its successors and assigns, the “Secured Party).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to a loan agreement dated August 30, 2019 (as amended, supplemented or otherwise modified from time to time, the “Loan
Agreement”), the Secured Party has agreed to make an extension of credit to the Borrower upon the terms and subject
to the conditions set forth therein;

 

WHEREAS,
the Borrower is a member of an affiliated group of companies that includes the Parent Party (together with the Borrower, the “Pledgors”);

 

WHEREAS,
the Borrower and the other Pledgor are engaged in related businesses, and the Pledgor will derive substantial direct and indirect
benefit from the making of the extension of credit under the Loan Agreement; and

 

WHEREAS,
it is a condition precedent to the obligation of the Secured Party to make its extension of credit to the Borrower under the Loan
Agreement that the Pledgors shall have executed and delivered this Agreement to the Secured Party;

 

NOW,
THEREFORE, in consideration of the premises and to induce the Secured Party to enter into the Loan Agreement and to induce the
Secured Party to make its extension of credit to the Borrower thereunder and for other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, each Pledgor hereby agrees with the Secured Party, as follows:

 

SECTION
1

DEFINED TERMS

 

1.1         Definitions.
(a) Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them
in the Loan Agreement, and the following terms which are defined in the Uniform Commercial Code in effect in the State of California
on the date hereof are used herein as so defined: Accounts, Certificated Security, Chattel Paper, Commercial Tort Claim, Commodity
Account, Deposit Account, Documents, Electronic Chattel Paper, Equipment, General Intangibles, Instruments, Inventory, Investment
Property, Letter-of-Credit Rights, Proceeds, Promissory Note, Security, Securities Account and Supporting Obligations.

 

(b)       The
following terms shall have the following meanings:

 

“Agreement”:
as defined in the preamble hereto.

 

“Borrower”:
as defined in the preamble to this Agreement.

    - 2 -

     

    

“California
UCC”: the Uniform Commercial Code as from time to time in effect in the State of California.

 

“Collateral”:
as defined in Section 3.

 

”Collateral
Account”: any collateral account established by the Secured Party as provided in Section 6.1 or 6.4.

 

“Copyright
Licenses”: any written agreements providing for the grant by or to any Pledgor of any right under any Copyright, including,
without limitation, any of the foregoing referred to in Schedule 5.

 

“Copyrights”:
(i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished (including, without limitation, those listed in Schedule 5),
all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations,
recordings and applications in the United States Copyright Office, and (ii) the right to obtain all renewals thereof.

 

“Intellectual
Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether
arising under United States, multinational or foreign laws or otherwise, including, without limitation, the Copyrights, the Copyright
Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Issuers”:
the collective reference to each issuer of a Pledged Investment.

 

“Loan
Agreement”: as defined in the recitals to this Agreement.

 

“Material
Intellectual Property”: with respect to any Pledgor, at any time, Intellectual Property owned by or licensed to such
Pledgor that is necessary or otherwise material to the conduct of the business of the Borrower and its subsidiaries, taken as
a whole; and “Material Patents,” “Material Copyrights” and “Material Trademarks”
mean all Patents, Copyrights and Trademarks, respectively, that meet the criteria described above.

 

“Obligations”:
the collective reference to the unpaid principal of and interest under, in connection with or with respect to the Loan Agreement
and the other Transaction Documents, the Obligations (as defined in the Loan Agreement) and all other obligations and liabilities
of the Borrower or any Parent Party to the Secured Party, whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Loan Agreement, this Agreement,
the other Transaction Documents or any other document made, delivered or given in connection therewith, in each case whether on
account of principal, interest (including, without limitation, interest accruing at the then applicable rate provided in the Loan
Agreement after the maturity of the Principal Sum and interest accruing at the then applicable rate provided in the Loan Agreement
after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating
to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement
obligations, guarantee obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Secured Party that are required to be paid by the Borrower or any Parent Party pursuant to the
terms of any of the foregoing agreements).

    - 3 -

     

    

“Parent
Parties”: the collective reference to each of the parents of the Borrower who are signatories hereto and any other entity
that may become a party hereto as a Parent Party as provided herein.

 

“Patent
Licenses”: any written agreements providing for the grant by or to any Pledgor of any right to manufacture, use or sell
any invention covered in whole or in part by a Patent, including, without limitation, any of the foregoing referred to in Schedule
5.

 

“Patents”:
(i) all letters patent of the United States, any other country or any political subdivision thereof, and all reissues and extensions
thereof, including, without limitation, any of the foregoing referred to in Schedule 5, (ii) all applications for letters
patent of the United States and all divisions, continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 5, and (iii) all rights to obtain any reissues or extensions of the foregoing.

 

“Pledged
Debt”: all Promissory Notes and all debt Securities issued to or held by any Pledgor, including, without limitation,
the Promissory Notes listed in Schedule 2.

 

“Pledged
Investments”: the collective reference to the Pledged Debt and the Pledged Stock.

 

“Pledged
Stock”: all the shares of common stock together with any other shares, stock certificates, options or rights of any
nature whatsoever in respect of the Shares of any Person that may be issued or granted to, or held by, any Pledgor while this
Agreement is in effect including, without limitation, the Shares listed in Schedule 2.

 

“Pledgor”:
as defined in the recitals to this Agreement.

 

“Receivable”:
any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument
or Chattel Paper and whether or not it has been earned by performance (including, without limitation, any Account).

 

“Secured
Party”: as defined in the preamble to this Agreement.

 

“Securities
Act”: the Securities Act of 1933, as amended.

 

“Termination
Date”: means the date all Obligations have been paid in full.

 

“Trademark
Licenses”: any written agreements providing for the grant by or to any Pledgor of any right to use any Trademark, including,
without limitation, any of the foregoing referred to in Schedule 5.

 

“Trademarks”:
(i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, logos and other source or business identifiers, and all goodwill associated therewith, all registrations and recordings
thereof, and all applications in connection therewith in the United States Patent and Trademark Office or in any similar office
or agency of the United States, or any other country or any political subdivision thereof, and all common-law rights related thereto,
including, without limitation, any of the foregoing referred to in Schedule 5, and (ii) the right to obtain all renewals
thereof.

 

“Vehicles”:
all vehicles covered by a certificate of title law of any state of the United States.

    - 4 -

     

    

1.2         Other
Definitional Provisions. (a) The words “hereof,” “herein,” “hereto” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

 

(b)       The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(c)       Where
the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Pledgor, shall refer to
such Pledgor’s Collateral or the relevant part thereof.

 

(d)       Unless
the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Transaction Document),
(ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any
restrictions on such amendments, supplements or modifications set forth herein or in any other Transaction Document), (iii) all
references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (iv) any reference to any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer
to such law or regulation as amended, modified or supplemented from time to time.

 

(e)       Section
headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

 

SECTION
2

 

INTENTIONALLY
OMITTED

 

SECTION
3

 

GRANT
OF SECURITY INTEREST

 

Each
Pledgor hereby pledges to the Secured Party, and hereby grants to the Secured Party a security interest in, all of the following
property now owned or at any time hereafter acquired by such Pledgor or in which such Pledgor now has or at any time in the future
may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Pledgor’s
Obligations:

 

(a)       all
Accounts;

 

(b)      all
Chattel Paper;

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(c)       all
Deposit Accounts;

 

(d)      all
Documents;

 

(e)      all
Equipment;

 

(f)       all
General Intangibles;

 

(g)      all
Instruments;

 

(h)      all
Inventory;

 

(i)       all
Investment Property;

 

(j)       all
Letter-of-Credit Rights;

 

(k)       without
limiting the generality of the foregoing, all Fixtures, all Intellectual Property, all Pledged Investments and all Receivables
and all Vehicles;

 

(l)       all
books and records pertaining to the Collateral;

 

(m)      all
other personal property not otherwise described above; and

 

(n)       to
the extent not otherwise included, all Proceeds, and products of any and all of the foregoing and all Supporting Obligations with
respect to any of the foregoing.

 

SECTION
4

 

REPRESENTATIONS
AND WARRANTIES

 

To
induce the Secured Party to enter into the Loan Agreement and to induce the Secured Party to make its extension of credit to the
Borrower thereunder, the Borrower, as to itself and the other Pledgor, as to itself, hereby represents and warrants to the Secured
Party that:

 

4.1         Basic
Representations:

 

(a)       Such
Pledgor (w) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (x)
has the corporate power and authority, and the legal right, to own and operate its property, to lease the property it operates
as lessee and to conduct the business in which it is currently engaged, (y) is duly qualified as a foreign corporation and in
good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business
requires such qualification and (z) is in compliance with all requirements of law except to the extent that the failure to comply
therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Change.

 

(b)       Such
Pledgor has the corporate power and authority, and the legal right, to make, deliver and perform the Transaction Documents to
which it is a party and has taken all necessary corporate action to authorize the execution, delivery and performance of the Transaction
Documents to which it is a party. No consent or authorization of, filing with, notice

    - 6 -

     

    

to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability
of the Transaction Documents to which such Pledgor is a party. This Agreement has been, and each other Transaction Document to
which it is a party will be, duly executed and delivered on behalf of such Pledgor. This Agreement constitutes, and each other
Transaction Document to which it is a party when executed and delivered will constitute, a legal, valid and binding obligation
of such Pledgor enforceable against such Pledgor in accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally,
general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and
fair dealing.

 

(c)       The
execution, delivery and performance of the Transaction Documents to which such Pledgor is a party will not violate any Applicable
Law or contractual obligation of such Pledgor or of any of its subsidiaries and will not result in, or require, the creation or
imposition of any Encumbrance on any of its or their respective properties or revenues pursuant to any such Applicable Law or
contractual obligation (other than pursuant to this Agreement).

 

(d)       No
litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge
of such Pledgor, threatened by or against such Pledgor or any of its subsidiaries or against any of its or their respective properties
or revenues (x) with respect to any of the Transaction Documents or any of the transactions contemplated hereby or thereby, or
(y) which could reasonably be expected to have a Material Adverse Change.

 

4.2         Title;
No Other Encumbrances. Except for the security interest granted to the Secured Party pursuant to this Agreement and the other
Encumbrances permitted to exist on the Collateral by the Loan Agreement, such Pledgor owns each item of the Collateral free and
clear of any and all Encumbrances or claims, options or rights of others. No financing statement or other public notice with respect
to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of
the Secured Party, pursuant to this Agreement.

 

4.3         Perfected
First Priority Liens. California UCC financing statements (including fixture filings, as applicable) or other appropriate
filings, recordings or registrations containing a description of the Collateral have been prepared by the Secured Party based
upon the information provided to the Secured Party by such Pledgor for filing in the office specified on Schedule 3 hereof. The
security interests granted pursuant to this Agreement (a) upon completion of the filings and other actions specified on Schedule
3 (which, in the case of all filings and other documents referred to on said Schedule, with the exception of the California UCC
financing statements, have been or will be delivered to the Secured Party in completed and, where applicable, duly executed form)
will constitute valid security interests in all of the Collateral in favor of the Secured Party, as collateral security for such
Pledgor’s Obligations, enforceable in accordance with the terms hereof against all creditors of such Pledgor and any Persons
purporting to purchase any Collateral from such Pledgor and (b) upon completion of such filings and other actions will be prior
to all other Encumbrances on the Collateral.

    - 7 -

     

    

4.4         Jurisdiction
of Organization; Location of Collateral. (a) On the date hereof, such Pledgor’s jurisdiction of organization, legal
name, organizational identification number, if any, and the location of its chief executive office or sole place of business are
specified on Schedule 4.

 

(b)       On
the date hereof, the material Inventory and the material Equipment (other than mobile goods and goods in transit) of such Pledgor
are kept at the locations listed on Schedule 4.

 

(c)       Schedule
4 also lists (i) all of such Pledgor’s jurisdictions of organization, legal names and locations of chief executive office
or sole place of business for the four months preceding the date hereof, and (ii) the locations of such Pledgor’s material
Inventory and the material Equipment (other than mobile goods and goods in transit) for the four months preceding the date hereof.

 

4.5         Pledged
Investments. (a) Schedule 2 sets forth a complete and accurate list of all Pledged Stock and Pledged Debt held by such
Pledgor as of the date hereof.

 

(b)       The
shares of Pledged Stock pledged by such Pledgor hereunder constitute all the issued and outstanding shares of all classes of the
Shares of each Issuer owned by such Pledgor. Such shares represent all of the outstanding shares of each such Issuer which is
a subsidiary except as noted on such Schedule. All the shares of the Pledged Stock have been duly and validly issued and are fully
paid and nonassessable.

 

(c)       Each
issue of Pledged Debt constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

(d)       Such
Pledgor is the record and beneficial owner of, and has good and marketable title to, the Pledged Investments pledged by it hereunder,
free of any and all Encumbrances or options in favor of, or claims of, any other Person, except the security interest created
by this Agreement.

 

4.6         Receivables.
(a) No amount payable to such Pledgor under or in connection with any Receivable in excess of $50,000, individually or in the
aggregate at any time outstanding, is evidenced by any Instrument or Chattel Paper which has not been delivered to the Secured
Party.

 

(b)       None
of Receivables in the aggregate are owed to the Pledgors by obligors that are Governmental Authorities.

 

4.7         Intellectual
Property. (a) Schedule 5 lists all applications for registration and registered Intellectual Property owned by such
Pledgor in its own name on the date hereof.

    - 8 -

     

    

(b)       On
the date hereof, all Material Intellectual Property is valid, subsisting, unexpired and enforceable, has not been abandoned and
does not, to the knowledge of such Pledgor, infringe the intellectual property rights of any other Person.

 

(c)       No
holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity
of, or such Pledgor’s rights in, any Material Intellectual Property.

 

(d)       No
action or proceeding is pending, or, to the knowledge of such Pledgor, threatened, on the date hereof (i) seeking to limit, cancel
or question the validity of any Material Intellectual Property or such Pledgor’s ownership interest therein, or (ii) which,
if adversely determined, would have a material adverse effect on the value of any Material Intellectual Property.

 

4.8         Deposit
Accounts; Securities Accounts; and Commodity Accounts. On the date hereof, such Pledgor does not have any Deposit Accounts,
Commodity Accounts or Securities Accounts that are not listed on Schedule 6.

 

4.9         Commercial
Tort Claims. On the date hereof, such Pledgor does not hold any Commercial Tort Claim which might reasonably result in awarded
damages (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Pledgor) in excess of
$50,000.

 

4.10         Letter-of-Credit
Rights. On the date hereof, such Pledgor is not the beneficiary under any letter of credit with a face amount in excess of
$50,000 issued in favor of such Pledgor.

 

4.11         Material
Collateral. Such Pledgor does not own, or have any other right or interest in, any asset or property included in the Collateral
that cannot be perfected in the manner described in Section 4.3 (collectively, “Non-Perfected Assets”), except
for Non-Perfected Assets which together with the Non-Perfected Assets of all other Pledgors in the aggregate are not material
to the Borrower and its subsidiaries taken as a whole.

 

SECTION
5

 

COVENANTS

 

The
Borrower, as to itself and each other Pledgor, and each other Pledgor, as to itself, covenants and agrees with the Secured Party
that, from and after the date of this Agreement until the Termination Date:

 

5.1         General
Covenants. Without the prior written consent of the Secured Party, unless expressly permitted by the Loan Agreement, such
Pledgor will not (i) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Collateral
or any interest therein, (ii) create, incur or permit to exist any Encumbrance or option in favor of, or any claim of any Person
with respect to, any of the Collateral or any interest therein or (iii) enter into any agreement or undertaking restricting the
right or ability of such Pledgor or the Secured Party to sell, assign or transfer or vote any of the Collateral or any interest
therein.

    - 9 -

     

    

5.2         Notices.
Such Pledgor will advise the Secured Party promptly, in reasonable detail, of:

 

(a)       any
Encumbrance (other than security interests created hereby or Encumbrances permitted under the Loan Agreement) on any of the Collateral;
and

 

(b)       of
the occurrence of any other event which could reasonably be expected to have a material adverse effect on the security interests
created hereby.

 

5.3         Reserved.

 

5.4         Payment
of Obligations. Such Pledgor will pay and discharge or otherwise satisfy at or before maturity or before they become delinquent,
as the case may be, all taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income
or profits therefrom, as well as all claims of any kind (including, without limitation, claims for labor, materials and supplies)
against or with respect to the Collateral, except that no such charge need be paid if the amount or validity thereof is currently
being contested in good faith by appropriate proceedings, reserves in conformity with GAAP with respect thereto have been provided
on the books of such Pledgor and such proceedings could not reasonably be expected to result in the sale, forfeiture or loss of
any material portion of the Collateral or any interest therein.

 

5.5         Maintenance
of Perfected Security Interest; Further Documentation. (a) Such Pledgor shall maintain the security interest created by this
Agreement as a perfected security interest having at least the priority described in Section 4.3 and shall defend such security
interest against the claims and demands of all Persons whomsoever.

 

(b)       Such
Pledgor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail.

 

(c)       At
any time and from time to time, upon the written request of the Secured Party, and at the sole expense of such Pledgor, such Pledgor
will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions
as the Secured Party may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and
of the rights and powers herein granted, including, without limitation, the filing of any financing or continuation statements
under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests
created hereby.

 

5.6         Changes
in Locations, Name, etc. Such Pledgor will not, except upon 30 days’ prior written notice to the Secured Party and delivery
to the Secured Party of all additional financing statements and other documents reasonably requested by the Secured Party to maintain
the validity, perfection and priority of the security interests provided for herein:

    - 10 -

     

    

(a)       change
its jurisdiction of organization or, in the case of any Pledgor that is not a registered organization (as defined in the California
UCC) the location of its chief executive office or sole place of business from that referred to in Section 4.4 hereof;

 

(b)       change
its name, identity or corporate structure; or

 

(c)       permit
any Inventory or Equipment to be kept at a location other than those listed on Schedule 4, except for Inventory or Equipment
in transit or Inventory and Equipment with an aggregate value at any time outstanding of less than $50,000.

 

5.7         Delivery
of Instruments and Chattel Paper. All (i) Promissory Notes issued by any subsidiary and held by a Pledgor and (ii) if any
amount payable under or in connection with any of the other Collateral in excess of $50,000, individually or in the aggregate
at any time outstanding, shall be or become evidenced by any Instrument (other than checks received in the ordinary course of
business) or Chattel Paper, such Instrument or Chattel Paper shall be immediately delivered to the Secured Party, duly indorsed
in a manner satisfactory to the Secured Party, to be held as Collateral pursuant to this Agreement.

 

5.8         Pledged
Investments; Securities Accounts; Deposit Accounts. (a) If any Pledged Investments now owned or hereafter acquired by any
Pledgor are certificated Securities and (i) are issued by any Pledgor or any subsidiary of a Pledgor or (ii) issued by any other
Person and not held in a Securities Account, such Pledgor shall immediately deliver the certificates evidencing the same to the
Secured Party in the exact form received, duly indorsed by such Pledgor to the Secured Party, if required, together with an undated
stock power covering such certificate duly executed in blank by such Pledgor and with, if the Secured Party so requests, signature
guaranteed, to be held by the Secured Party, subject to the terms hereof, as additional collateral security for such Pledgor’s
Obligations.

 

(b)       If
any Pledged Investments now owned or hereafter acquired by any Pledgor are uncertificated Securities and, in either case, (i)
are issued by any Pledgor or any subsidiary of a Pledgor or (ii) issued by any other Person and not held in a Securities Account,
such Pledgor shall immediately notify the Secured Party thereof and, at the Secured Party’s request and option, pursuant
to an agreement in form and substance reasonably satisfactory to the Secured Party, either (i) cause the Issuer to agree to comply
with instructions from the Secured Party as to such securities, without further consent of any Pledgor, or (ii) arrange for the
Secured Party to become the registered owner of the securities.

 

(c)       If
such Pledgor shall now or hereafter have rights in any Securities Account with any securities intermediary, such Pledgor shall
immediately notify the Secured Party thereof and, if such Securities Account has a value in excess of $50,000, at the Secured
Party’s request and option, pursuant to a control agreement in form and substance reasonably satisfactory to the Secured
Party, use commercially reasonable efforts to cause such securities intermediary to agree to comply with entitlement orders or
other instructions originated by the Secured Party to such securities intermediary as to the securities or other financial assets
contained therein without consent from such Pledgor. Such Pledgor agrees not to allow the value of any of its Securities Accounts
to exceed such amount unless such a control agreement is in effect with respect to such Securities Account.

    - 11 -

     

    

(d)       If
such Pledgor shall now or hereafter have rights in any Deposit Account maintained with any bank, such Pledgor shall immediately
notify the Secured Party thereof and, if such Deposit Account contains funds in excess of $50,000, at the Secured Party’s
request and option, pursuant to a control agreement in form and substance reasonably satisfactory to the Secured Party, cause
such bank to agree to comply with instructions to such bank originated by the Secured Party directing the disposition of funds
in such Deposit Account without consent from such Pledgor. Such Pledgor agrees not to allow the value of any of its Deposit Accounts
to exceed such amount unless such a control agreement is in effect with respect to such Deposit Account.

 

(e)       The
Secured Party agrees with each of the Pledgors that the Secured Party shall not give any such entitlement orders, instructions
or directions referred to in paragraph (b), (c) or (d) above to any Issuer, securities intermediary or bank, unless an Event of
Default has occurred and is continuing, or, after giving effect to any such investment and withdrawal rights, would occur. The
provisions of this paragraph shall not apply to any financial assets credited to a Securities Account for which the Secured Party
is the securities intermediary or Deposit Account as to which the Secured Party is the bank.

 

(f)       Except
as provided in Section 6.3, such Pledgor shall be entitled to receive all cash dividends and distributions paid in respect of
the Pledged Investments (except liquidating or distributing dividends). Any sums paid upon or in respect of the Pledged Investments
upon the liquidation or dissolution of any Issuer shall be paid over to the Secured Party to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of capital shall be made on or in respect of the Pledged
Investments or any property shall be distributed upon or with respect to the Pledged Investments pursuant to the recapitalization
or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall,
unless otherwise subject to a perfected security interest in favor of the Secured Party, be delivered to the Secured Party to
be held by it hereunder as additional collateral security for the Obligations. If any sums of money or property so paid or distributed
in respect of the Pledged Investments shall be received by such Pledgor, such Pledgor shall, until such money or property is paid
or delivered to the Secured Party, hold such money or property in trust for the Lenders, segregated from other funds of such Pledgor,
as additional collateral security for the Obligations.

 

(g)       In
the case of each Pledgor that is also an Issuer, such Issuer agrees that (i) it will be bound by the terms of this Agreement relating
to the Pledged Investments issued by it and will comply with such terms insofar as such terms are applicable to it including,
without limitation, complying with instructions from the Secured Party as to such Pledged Investments, without further consent
of any Pledgor, (ii) it will notify the Secured Party promptly in writing of the occurrence of any of the events described in
Section 5.8(a), (b) and (f) with respect to the Pledged Investments issued by it and (iii) the terms of Sections 6.3(c) and 6.7
shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section
6.3(c) or 6.7 with respect to the Pledged Investments issued by it.

 

5.9         Receivables.
(a) Other than in the ordinary course of business consistent with its past practice, such Pledgor will not (i) grant any extension
of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii)

    - 12 -

     

    

release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever
on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof.

 

(b)       Such
Pledgor will deliver to the Secured Party a copy of each material demand, notice or document received by it that questions or
calls into doubt the validity or enforceability of more than 5% of the aggregate amount of the then outstanding Receivables.

 

5.10         Intellectual
Property. (a) Such Pledgor (either itself or through licensees) will (i) continue to use each Material Trademark on each
and every trademark class of goods applicable to its current product or service lines in order to maintain such Trademark in full
force free from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and services offered
under such Trademark, (iii) use such Trademark with the appropriate notice of registration and all other notices and legends required
by applicable requirements of law, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such
Trademark unless the Secured Party, shall obtain a perfected security interest in such mark pursuant to this Agreement, and (v)
not do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.

 

(b)       Such
Pledgor (either itself or through licensees) will not do any act, or omit to do any act, whereby any Material Patent may become
forfeited, abandoned or dedicated to the public.

 

(c)       Such
Pledgor (either itself or through licensees) (i) will employ each Material Copyright and (ii) will not do any act or knowingly
omit to do any act whereby any material portion of the Copyrights may become invalidated or otherwise impaired or fall into the
public domain.

 

(d)       Such
Pledgor (either itself or through licensees) will not do any act that knowingly infringes the intellectual property rights of
any other Person.

 

(e)       Such
Pledgor will notify the Secured Party immediately if it knows, or has reason to know, that any application or registration relating
to any Material Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such determination or development in, any proceeding
in the United States Patent and Trademark Office or the United States Copyright Office) regarding such Pledgor’s ownership
of, or the validity of, any Material Intellectual Property or such Pledgor’s right to register the same or to own and maintain
the same.

 

(f)       Whenever
such Pledgor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration
of any Intellectual Property with the United States Patent and Trademark Office or the United States Copyright Office, such Pledgor
shall report such filing to the Secured Party within five Business Days after the last day of the fiscal quarter in which such
filing occurs. Upon request of the Secured Party, such Pledgor shall execute and deliver, and have recorded, any and all agreements,
instruments, documents,

    - 13 -

     

    

and papers as the Secured Party may request to evidence the Secured Party’s security interest in
any Intellectual Property.

 

(g)       Such
Pledgor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States
Patent and Trademark Office or the United States Copyright Office, to maintain and pursue each application (and to obtain the
relevant registration) and to maintain each registration of the Material Intellectual Property, including, without limitation,
filing of applications for renewal, affidavits of use and affidavits of incontestability.

 

(h)       In
the event that any Material Intellectual Property is infringed, misappropriated or diluted by a third party, such Pledgor shall
(i) take such actions as such Pledgor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property
and (ii) if such Intellectual Property is of material economic value, promptly notify the Secured Party after it learns thereof
and, after taking reasonable and customary measures to stop such infringement, sue for infringement, misappropriation or dilution,
to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution.

 

5.11         Electronic
Chattel Paper and Transferable Records. If any Pledgor at any time holds or acquires an interest in any Electronic Chattel
Paper or any “transferable record,” as that term is defined in Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
such Pledgor shall promptly notify the Secured Party thereof and, at the request of the Secured Party, shall take such action
as the Secured Party may reasonably request to vest in the Secured Party control under California UCC Section 9-105 of such Electronic
Chattel Paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the
case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable
record. The Secured Party agrees with such Pledgor that the Secured Party will arrange, pursuant to procedures reasonably satisfactory
to the Secured Party and so long as such procedures will not result in the Secured Party’s loss of control, for the Pledgor
to make alterations to the Electronic Chattel Paper or transferable record permitted under California UCC Section 9-105 or, as
the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform
Electronic Transactions Act for a party in control to allow without loss of control, unless an Event of Default has occurred and
is continuing or would occur after taking into account any action by such Pledgor with respect to such Electronic Chattel Paper
or transferable record.

 

5.12         Letter-of-Credit
Rights. If any Pledgor is at any time a beneficiary under any letter of credit now or hereafter issued in favor of such Pledgor
in amounts in the aggregate for all Pledgors in excess of $50,000, such Pledgor shall promptly notify the Secured Party thereof
and such Pledgor shall, at the request of the Secured Party, pursuant to an agreement in form and substance reasonably satisfactory
to the Secured Party, use commercially reasonable efforts to either (i) arrange for the issuer and any confirmer of such letters
of credit to consent to an assignment to the Secured Party of the proceeds of any drawing under such letters of credit or (ii)
arrange for the Secured Party to become the transferee beneficiary of such letters of credit, with

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the Secured Party agreeing,
in each case, that the proceeds of any drawing under such letters of credit are to be applied as provided in the Loan Agreement.

 

5.13         Commercial
Tort Claims. If any Pledgor shall at any time hold or acquire any Commercial Tort Claim which might reasonably result in awarded
damages (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Pledgor) in excess of
$50,000, such Pledgor shall promptly notify the Secured Party in writing signed by such Pledgor of the brief details thereof and
grant to the Secured Party in such writing a security interest therein and in the Proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory to the Secured Party.

 

5.14         Vehicles.
Upon the reasonable request of the Secured Party, within 30 days after the date of such request and, with respect to any Vehicle
acquired by such Pledgor subsequent to the date of any such request (until such request is withdrawn by the Secured Party), within
30 days after the date of acquisition thereof, such Pledgor shall file all applications for certificates of title or ownership
indicating the Secured Party’s first priority security interest in the Vehicle covered by such certificate and any other
necessary documentation, in each office in each jurisdiction that the Secured Party shall deem advisable to perfect its security
interests in the Vehicles.

 

5.15         Notice
of Creation or Acquisition of Additional Collateral. Borrower shall, within five Business Days of any request from the Secured
Party, furnish the Secured Party with a report listing the following:

 

(a)       any
subsidiary formed or acquired by any Pledgor;

 

(b)       any
certificated Securities or uncertificated Securities not held in a Securities Account acquired by any Pledgor;

 

(c)       any
change in name, jurisdiction of organization or chief executive office of any Pledgor;

 

(d)       any
new location of Inventory or Equipment of any Pledgor;

 

(e)       all
Promissory Notes, Instruments or Chattel Paper received by any Pledgor with a value in excess of $100,000;

 

(f)       any
Securities Account, Commodities Account or Deposit Account opened by any Pledgor;

 

(g)       all
applications for and registration received by any Pledgor in respect of any Intellectual Property;

 

(h)       any
Letter of Credit Rights acquired by any Pledgor;

 

(i)       any
Commercial Tort Claims acquired by any Pledgor, and

 

(j)       any
Vehicles acquired by any Pledgor.

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5.16        Subordination.
Each Pledgor hereby agrees that any indebtedness of any other Pledgor now or hereafter owing to such Pledgor, whether heretofore,
now or hereafter created (the “Pledgor Subordinated Debt”), is hereby subordinated to all of the Obligations
to the extent set forth in this Section. From and after such time as the Secured Party has given notice to the Pledgors that (i)
a Default has occurred and continuing and (ii) that the Secured Party is exercising its rights under this Section (a “Notice
of Actionable Default”) and prior to the withdrawal of all pending Notices of Actionable Default, the Pledgor Subordinated
Debt shall not be paid in whole or in part until the Obligations have been paid in full and this Agreement is terminated and of
no further force or effect. No Pledgor shall accept any payment of or on account of any Pledgor Subordinated Debt at any time
in contravention of the foregoing or the Loan Agreement. From and after the delivery by the Secured Party of a Notice of Actionable
Default and prior to the withdrawal of all pending Notices of Actionable Default, each Pledgor shall pay to the Secured Party
any payment of all or any part of the Pledgor Subordinated Debt and any amount so paid to the Secured Party shall be applied to
payment of the Obligations in such order as the Secured Party may elect. Each payment on the Pledgor Subordinated Debt received
in violation of any of the provisions hereof shall be deemed to have been received by such Pledgor as trustee for the Secured
Party and shall be paid over to the Secured Party immediately on account of the Obligations, but without otherwise affecting in
any manner such Pledgor’s liability herein. Each Pledgor agrees to file all claims against any Pledgor in any bankruptcy
or other proceeding in which the filing of claims is required by law in respect of any Pledgor Subordinated Debt, and the Secured
Party shall be entitled to all of such Pledgor’s rights thereunder. If for any reason a Pledgor fails to file such claim
at least ten Business Days prior to the last date on which such claim should be filed, such Pledgor hereby irrevocably appoints
the Secured Party as its true and lawful attorney-in-fact and is hereby authorized to act as attorney-in-fact in such Pledgor’s
name to file such claim or, in the Secured Party’s discretion, to assign such claim to and cause proof of claim to be filed
in the name of the Secured Party or its nominee. In all such cases, whether in administration, bankruptcy or otherwise, the person
or persons authorized to pay such claim shall pay to the Secured Party the full amount payable on the claim in the proceeding,
and, to the full extent necessary for that purpose, each Pledgor hereby assigns to the Secured Party all of such Pledgor’s
rights to any payments or distributions to which such Pledgor otherwise would be entitled. If the amount so paid is greater than
such Pledgor’s liability hereunder and under the other Transaction Documents, the Secured Party shall pay the excess amount
to the party entitled thereto. In addition, each Pledgor hereby irrevocably appoints the Secured Party as its attorney in fact
to exercise all of such Pledgor’s voting rights (other than in its capacity as a debtor or a debtor in possession) in connection
with any bankruptcy proceeding or any plan for the reorganization of any Pledgor. Each Pledgor which is an obligor on any Pledgor
Subordinated Debt hereby consents to the provisions of this section and agrees to be bound by them.

 

SECTION
6

 

REMEDIAL
PROVISIONS

 

6.1         Certain
Matters Relating to Receivables. (a) The Secured Party shall have the right to make test verifications of the Receivables
in any manner and through any medium that it reasonably considers advisable, and each Pledgor shall furnish all such assistance
and information as the Secured Party may reasonably require in connection with such test

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verifications. At any time and from time
to time, upon the Secured Party’s request and at the expense of the relevant Pledgor, such Pledgor shall cause independent
public accountants or others satisfactory to the Secured Party to furnish to the Secured Party reports showing reconciliations,
aging and test verifications of, and trial balances for, the Receivables.

 

(b)       The
Secured Party hereby authorizes each Pledgor to collect such Pledgor’s Receivables, and the Secured Party may curtail or
terminate said authority at any time after the occurrence and during the continuance of an Event of Default. If required by the
Secured Party at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables,
when collected by any Pledgor, (i) shall be immediately (and, in any event, within two Business Days) deposited by such Pledgor
in the exact form received, duly indorsed by such Pledgor to the Secured Party if required, in a Collateral Account maintained
under the sole dominion and control of the Secured Party, subject to withdrawal by the Secured Party only as provided in Section
6.5, and (ii) until so turned over, shall be held by such Pledgor in trust for the Secured Party, segregated from other funds
of such Pledgor. Each such deposit of payments of Receivables shall be accompanied by a report identifying in reasonable detail
the nature and source of the payments included in the deposit.

 

(c)       After
the occurrence and during the continuance of an Event of Default, at the Secured Party’s request, each Pledgor shall deliver
to the Secured Party all original and other documents evidencing, and relating to, the agreements and transactions which gave
rise to the Receivables, including, without limitation, all original orders, invoices and shipping receipts.

 

6.2         Communications
with Obligors; Pledgors Remain Liable. (a) The Secured Party in its own name or in the name of others may at any time after
the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with
them to the Secured Party’s satisfaction the existence, amount and terms of any Receivables.

 

(b)       Upon
the request of the Secured Party at any time after the occurrence and during the continuance of an Event of Default, each Pledgor
shall notify obligors on the Receivables that the Receivables have been assigned to the Secured Party and that payments in respect
thereof shall be made directly to the Secured Party.

 

(c)       Anything
herein to the contrary notwithstanding, each Pledgor shall remain liable under each of the Receivables and all other contracts
included in the Collateral to observe and perform all the conditions and obligations to be observed and performed by it thereunder,
all in accordance with the terms of any agreement giving rise thereto. The Secured Party shall not have any obligation or liability
under any Receivable (or any agreement giving rise thereto) or other contracts by reason of or arising out of this Agreement or
the receipt by the Secured Party of any payment relating thereto, nor shall the Secured Party be obligated in any manner to perform
any of the obligations of any Pledgor under or pursuant to any Receivable (or any agreement giving rise thereto) or other contract,
to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency
of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to
collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

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6.3         Pledged
Investments. (a) Unless an Event of Default shall have occurred and be continuing and the Secured Party shall have given
notice to the relevant Pledgor of the Secured Party’s intent to exercise its rights pursuant to this Section 6.3(a), each
Pledgor shall be permitted to receive all cash dividends paid in respect of the Pledged Stock and all cash payments made in respect
of the Pledged Debt, in each case paid in the normal course of business of the relevant Issuer and consistent with past practice,
to the extent permitted in the Loan Agreement, and to exercise all voting and corporate or other rights with respect to the Pledged
Investments; provided, however, that no vote shall be cast or corporate or other right exercised or other action
taken which, in the Secured Party’s reasonable judgment, would impair the Collateral or which would be inconsistent with
or result in any violation of any provision of the Loan Agreement, this Agreement or any other Transaction Document.

 

(b)       If
an Event of Default shall occur and be continuing and the Secured Party shall give notice of its intent to exercise its rights
pursuant to this Section 6.3(b) to the relevant Pledgor or Pledgors, (i) the Secured Party shall have the right to receive any
and all cash dividends, payments or other Proceeds paid in respect of the Pledged Investments and make application thereof to
the Obligations in such order as the Secured Party may determine, and/or (ii) any or all of the Pledged Investments may be registered
in the name of the Secured Party or its nominee, and the Secured Party or its nominee may thereafter exercise (x) all voting,
corporate and other rights pertaining to such Pledged Investments at any meeting of shareholders of the relevant Issuer or Issuers
or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining
to such Pledged Investments as if it were the absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Pledged Investments upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate or other structure of any Issuer, or upon the exercise by any Pledgor or the Secured Party
of any right, privilege or option pertaining to such Pledged Investments, and in connection therewith, the right to deposit and
deliver any and all of the Pledged Investments with any committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as the Secured Party may determine), all without liability except to account for property actually
received by it, but the Secured Party shall have no duty to any Pledgor to exercise any such right, privilege or option and shall
not be responsible for any failure to do so or delay in so doing. Each Pledgor hereby appoints the Secured Party, which appointment
shall be exercisable only upon the occurrence and during the continuance of an Event of Default, such Pledgor’s true and
lawful attorney-in-fact and grants to the Secured Party an IRREVOCABLE PROXY to exercise any action contemplated by the immediately
preceding sentence in any manner the Secured Party reasonably deems advisable for or against all matters submitted or which may
be taken by the shareholders. The power-of-attorney granted hereby is coupled with an interest and shall be irrevocable.

 

(c)       Each
Pledgor hereby authorizes and instructs each Issuer of any Pledged Investments pledged by such Pledgor hereunder to (i) comply
with any instruction received by it from the Secured Party in writing that (x) states that an Event of Default has occurred and
is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from
such Pledgor, and each Pledgor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any

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dividends or other payments with respect to the Pledged Investments directly to the Secured Party.

 

6.4         Proceeds
to be Turned Over to Secured Party. In addition to the rights of the Secured Party specified in Section 6.1 with respect to
payments of Receivables, if an Event of Default shall occur and be continuing, upon request of the Secured Party, all Proceeds
received by any Pledgor consisting of cash, checks and other near-cash items shall be held by such Pledgor in trust for the Secured
Party, segregated from other funds of such Pledgor, and shall, immediately upon receipt by such Pledgor, be turned over to the
Secured Party in the exact form received by such Pledgor (duly indorsed by such Pledgor to the Secured Party, if required). All
Proceeds received by the Secured Party hereunder shall be held by the Secured Party in a Collateral Account maintained under its
sole dominion and control. All Proceeds while held by the Secured Party in a Collateral Account (or by such Pledgor in trust for
the Secured Party) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof
until applied as provided in Section 6.5 hereof.

 

6.5         Application
of Proceeds. At such intervals as may be agreed upon by the Borrower and the Secured Party, or, if an Event of Default shall
have occurred and be continuing, at any time at the Secured Party’s election, the Secured Party may apply all or any part
of Proceeds constituting Collateral, whether or not held in any Collateral Account, in payment of the Obligations in such order
as the Secured Party may elect, and any part of such funds which the Secured Party elects not so to apply shall continue to be
held as collateral security for the Obligations. Any balance of such Proceeds remaining after the Termination Date or after all
Events of Default have been cured or waived shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive
the same.

 

6.6         Code
and Other Remedies. If an Event of Default shall occur and be continuing, the Secured Party, may exercise, in addition to
all other rights and remedies granted to it in this Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under the California UCC or any other applicable law.
Without limiting the generality of the foregoing, the Secured Party, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Pledgor or any
other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract
to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board
or office of the Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may
deem best, for cash or on credit or for future delivery without assumption of any credit risk. The Secured Party shall have the
right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase
the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Pledgor, which right or equity
is hereby waived and released. Each Pledgor further agrees, at the Secured Party’s request, to assemble the Collateral and
make it available to the Secured Party at places which the Secured Party shall reasonably select, whether at such Pledgor’s
premises or elsewhere. The Secured Party shall apply the net proceeds of any action

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taken by it pursuant to this Section 6.6,
after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Party, including, without
limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in such
order as the Secured Party may elect and only after such application and after the payment by the Secured Party of any other amount
required by any provision of law, including, without limitation, Section 9-615(a)(3) and (4) of the California UCC, need the Secured
Party account for the surplus, if any, to any Pledgor. To the extent permitted by applicable law, each Pledgor waives all claims,
damages and demands it may acquire against the Secured Party arising out of the exercise by it of any rights hereunder. If any
notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable
and proper if given at least 10 days before such sale or other disposition.

 

6.7         Private
Sale; Registration Rights. (a) If the Secured Party shall determine to exercise its right to sell any or all of the Pledged
Investments pursuant to Section 6.6, and if in the opinion of the Secured Party it is necessary or advisable to have the Pledged
Investments, or that portion thereof to be sold, registered under the provisions of the Securities Act or other Applicable Laws,
the relevant Pledgor will, at any time and from time to time, upon the written request of the Secured Party, use its commercially
reasonable efforts to take or to cause the Issuer of such Pledged Investments to take such action, and prepare, distribute and/or
file such documents, as are required or advisable in the reasonable opinion of counsel for the Secured Party to permit the public
sale of such Pledged Investments including, without limitation, to (i) execute and deliver, and cause the directors and officers
of such Issuer to execute and deliver, all such agreements, instruments and documents, and do or cause to be done all such other
acts as may be, in the opinion of the Secured Party, necessary or advisable to register and sell the Pledged Investments, or that
portion thereof to be sold, under the provisions of the Securities Act, (ii) use its commercially reasonable efforts to cause
the registration statement relating thereto to become effective and to remain effective for a period of one year from the date
of the first public offering of the Pledged Investments, or that portion thereof to be sold, and (iii) make all amendments thereto
and/or to the related prospectus which, in the opinion of the Secured Party, are necessary or advisable, all in conformity with
the requirements of the Securities Act and the rules and regulations of the Securities and Exchange Commission applicable thereto
or in the opinion of any underwriters selected by Secured Party to effectuate such purchase. Each Pledgor further agrees to indemnify,
defend and hold harmless the Secured Party, any underwriter and their respective officers, directors, affiliates and controlling
persons from and against all loss, liability, expenses, costs of counsel (including, without limitation, reasonable fees and expenses
to the Secured Party of legal counsel), and claims (including the costs of investigation) that they may incur insofar as such
loss, liability, expense or claim arises out of or is based upon any alleged untrue statement of a material fact contained in
any prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or arises out of or is based
upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements in any thereof
not misleading, except insofar as the same may have been caused by any untrue statement or omission based upon information furnished
in writing to such Pledgor or the Issuer of such Pledged Investment by the Secured Party expressly for use therein. Each Pledgor
further agrees, upon written request, to use its commercially reasonable efforts to qualify, file or register, or cause the Issuer
of such Pledged Investments to (x) qualify, file or

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register, any of the Pledged Investments under the “Blue Sky”
or other securities laws of such states as may be requested by the Secured Party and keep effective, or cause to be kept effective,
all such qualifications, filings or registrations and (y) to make available to its security holders, as soon as practicable, an
earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act. Each
Pledgor will bear all costs and expenses of carrying out its obligations under this Section.

 

(a)       Each
Pledgor recognizes that the Secured Party may be unable to effect a public sale of any or all the Pledged Investments, by reason
of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled
to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other
things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.
Each Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such
sale were a public sale and, notwithstanding such circumstances, agrees that no such private sale shall be deemed to have been
made in a commercially unreasonable manner solely because it has had such a result. The Secured Party shall be under no obligation
to delay a sale of any of the Pledged Stock for the period of time necessary to permit the Issuer thereof to register such securities
for public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.

 

(b)       Each
Pledgor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of all or any portion of the Pledged Investments pursuant to this Section 6.7 valid and binding and in
compliance with any and all applicable requirements of law. Each Pledgor further agrees that a breach of any of the covenants
contained in this Section 6.7 will cause irreparable injury to the Secured Party, that the Secured Party has no adequate remedy
at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.7 shall be specifically
enforceable against such Pledgor, and such Pledgor hereby waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has occurred under the Loan Agreement.

 

6.8         Deficiency.
Each Pledgor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient
to pay its Obligations and the fees and disbursements of any attorneys employed by the Secured Party to collect such deficiency.

 

6.9        Grant
of License to Use Intellectual Property. For the purpose of enabling the Secured Party to exercise rights and remedies under
this Agreement at such time as the Secured Party shall be lawfully entitled to exercise such rights and remedies, each Pledgor
hereby grants to the Secured Party an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation
to the Pledgors) to use, license or sublicense any of the Collateral consisting of Intellectual Property now owned or hereafter
acquired by such Pledgor, and wherever the same may be located, and including in such license reasonable access to all media in
which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or
printout thereof. The license (i) shall be subject to those exclusive Copyright Licenses, Patent Licenses and Trademark Licenses
granted by the Pledgors in effect on the date hereof and those granted by any Pledgor hereafter, as permitted under the

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Transaction
Documents, to the extent conflicting, (ii) may be exercised, at the option of the Secured Party, only upon the occurrence and
during the continuation of an Event of Default, provided, that any license, sublicense or other transaction entered into
by the Secured Party in accordance herewith shall be binding upon the Pledgors notwithstanding any subsequent cure of an Event
of Default, and (iii) apply to the use of the Trademarks in connection with goods and services of similar type and quality to
those theretofore sold by such Pledgor under such Trademark.

 

SECTION
7

 

THE
SECURED PARTY

 

7.1         Secured
Party’s Appointment as Attorney-in-Fact, etc. (a) Each Pledgor hereby irrevocably constitutes and appoints the Secured
Party and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Pledgor and in the name of such Pledgor or in its own name, for the purpose
of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Pledgor hereby gives the Secured Party the power and right, on behalf of such Pledgor, without notice to or assent
by such Pledgor, to do any or all of the following:

 

(i)       in
the name of such Pledgor or its own name, or otherwise, take possession of and indorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any Receivable or with respect to any other Collateral and
file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Secured
Party for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever
payable;

 

(ii)       in
the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents
and papers as the Secured Party may reasonably request to evidence the Secured Party’s security interest in such Intellectual
Property and the goodwill and general intangibles of such Pledgor relating thereto or represented thereby;

 

(iii)       pay
or discharge taxes and Encumbrances levied or placed on or threatened against the Collateral, effect any repairs or any insurance
called for by the terms of this Agreement or any other Transaction Document and pay all or any part of the premiums therefor and
the costs thereof;

 

(iv)       execute,
in connection with any sale provided for in Section 6.6 or 6.7, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Collateral;

 

(v)       direct
any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder
directly to the Secured Party or as the Secured Party shall direct;

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(vi)       ask
or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of any Collateral;

 

(vii)       sign
and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the Collateral;

 

(viii)       commence
and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral
or any portion thereof and to enforce any other right in respect of any Collateral;

 

(ix)       defend
any suit, action or proceeding brought against such Pledgor with respect to any Collateral;

 

(x)       settle,
compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the
Secured Party may deem appropriate;

 

(xi)       assign
any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Trademark pertains), throughout
the world for such term or terms, on such conditions, and in such manner, as the Secured Party shall in its sole discretion determine;
and

 

(xii)       generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely
as though the Secured Party were the absolute owner thereof for all purposes, and do, at the Secured Party’s option and
such Pledgor’s expense (including reasonable attorneys’ fees), at any time, or from time to time, all acts and things
which the Secured Party deems necessary to protect, preserve or realize upon the Collateral and the Secured Party’s security
interests therein and to effect the intent of this Agreement, all as fully and effectively as such Pledgor might do.

 

Anything
in this Section 7.1(a) to the contrary notwithstanding, the Secured Party agrees that it will not exercise any rights under the
power of attorney provided for in this Section 7.1(a) unless a Default shall have occurred and be continuing.

 

(b)       If
any Pledgor fails to perform or comply with any of its agreements contained herein or in any contract included in the Collateral,
the Secured Party, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

 

(c)       The
expenses of the Secured Party incurred in connection with actions undertaken as provided in this Section 7.1, together with interest
thereon at a rate per annum equal to the rate per annum at which interest would then be payable on past due amounts under the
Loan Agreement, from the date of payment by the Secured Party to the date reimbursed by the relevant Pledgor, shall be payable
by such Pledgor to the Secured Party on demand.

    - 23 -

     

    

(d)       Each
Pledgor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations
and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and
the security interests created hereby are released.

 

7.2         Duties
of Secured Parties. (a) The Secured Party’s sole duty with respect to the custody, safekeeping and physical preservation
of the Collateral in its possession, under Section 9-207 of the California UCC or otherwise, shall be to deal with it in the same
manner as the Secured Party deals with similar property for its own account.

 

(b)       Neither
the Secured Party nor any of its officers, directors, employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of any Pledgor or any other Person or to take any other action whatsoever with regard to the Collateral or any
part thereof.

 

(c)       The
powers conferred on the Secured Party hereunder are solely to protect the Secured Party’s interests in the Collateral and
shall not impose any duty upon the Secured Party to exercise any such powers. The Secured Party shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Pledgor for any act or failure to act hereunder, except for their own gross negligence
or willful misconduct.

 

7.3         Filing
of Financing Statements. Each Pledgor authorizes the Secured Party to file or record financing statements, any amendments
thereto and other filing or recording documents or instruments with respect to the Collateral without the signature of such Pledgor
in such form and in such offices as the Secured Party reasonably determines appropriate to perfect the security interests of the
Secured Party under this Agreement including, without limitation, any financing statement describing the collateral as “all
assets,” “all personal property” or any similar description. A photographic or other reproduction of this Agreement
shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any
jurisdiction.

 

SECTION
8

MISCELLANEOUS

 

8.1         Amendments
in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except
by a written instrument executed by each affected Pledgor and the Secured Party; provided that any provision of this Agreement
imposing obligations on any Pledgor may be waived by the Secured Party in a written instrument executed by the Secured Party.

 

8.2         Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by facsimile
transmission) and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made (a) in the case
of delivery by hand, when delivered, (b) in the case of delivery by mail, three days after being

    - 24 -

     

    

deposited in the mails, postage
prepaid, or (c) in the case of delivery by facsimile transmission, when sent and receipt has been confirmed, addressed as follows
in the case of the Secured Party, and as set forth in Schedule 1 in the case of the Pledgors, or to such other address as may
be hereafter notified by the respective parties hereto:

 

Eridanus
Capital, LLC

201
East 5th Street, Suite 1200

Sheridan,
WY 82801

 

Attention:         Daniel
Oliver Jr.

Email:                 doliver@myrmikan.com

Fax
No.:             307-222-1646

provided
that any notice, request or demand to or upon the Secured Party shall not be effective until received.

 

Any
party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other
parties hereto in accordance with this Section 8.2.

 

8.3         No
Waiver by Course of Conduct; Cumulative Remedies. The Secured Party shall not by any act (except by a written instrument pursuant
to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Secured Party, any
right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver
by the Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy
which the Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may
be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

8.4         Enforcement
Expenses; Indemnification. (a) Each Pledgor agrees to pay or reimburse the Secured Party for all its costs and expenses incurred
in collecting against such Pledgor its Obligations or otherwise enforcing or preserving any rights under this Agreement and the
other Transaction Documents to which such Pledgor is a party, including, without limitation, the fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) of the Secured Party.

 

(b)       Each
Pledgor agrees to pay, and to save the Secured Party harmless from, any and all liabilities with respect to, or resulting from
any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect
to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.

 

(c)       Each
Pledgor agrees to pay, indemnify, and hold the Secured Party, its officers, directors, controlling Persons, employees, agents
and advisors (collectively, the

    - 25 -

     

    

“Indemnified
Persons”) harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, and the other Transaction Documents and any such other
documents, including, without limitation, any of the foregoing relating to the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of the Pledgors, any of their subsidiaries or any of their
properties (all the foregoing in this clause (c), collectively, the “indemnified liabilities”), provided
that the Pledgors shall have no obligation hereunder to any Indemnified Person with respect to indemnified liabilities
arising solely from the gross negligence or willful misconduct of such Indemnified Person.

 

(d)       The
agreements in this Section 8.4 shall survive repayment of the Obligations and all other amounts payable under the Loan Agreement
and the other Transaction Documents.

 

8.5         Successors
and Assigns. This Agreement shall be binding upon the successors and assigns of each Pledgor and shall inure to the benefit
of the Secured Party and its successors and assigns and to the extent provided in Section 8.4(c); provided that no Pledgor
may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the
Secured Party and any purported assignment, transfer or delegation without such consent shall be null and void.

 

8.6         [Reserved].

 

8.7         Counterparts;
Binding Effect. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.
This Agreement shall become effective as to any Pledgor when a counterpart hereof executed on behalf of such Pledgor shall have
been delivered to the Secured Party and a counterpart hereof shall have been executed on behalf of the Secured Party, and thereafter
shall be binding upon such Pledgor and the Secured Party and their respective permitted successors and assigns, and shall inure
to the benefit of such Pledgor, the Secured Party and their respective permitted successors and assigns. This Agreement shall
be construed as a separate agreement with respect to each Pledgor and may be amended, modified, supplemented, waived or released
with respect to any Pledgor without the approval of any other Pledgor and without affecting the obligations of any other Pledgor
hereunder.

 

8.8         Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

8.9         Section
Headings. The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

    - 26 -

     

    

8.10       Integration.
This Agreement and the other Transaction Documents represent the agreement of the Pledgors and the Secured Party with respect
to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Secured
Party relative to the subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction
Documents.

 

8.11      GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

 

8.12       Submission
to Jurisdiction. For the purpose of any legal action or proceeding relating to this Agreement and the other Transaction Documents
to which it is a party, or for recognition and enforcement of any judgment in respect thereof the courts of California shall have
jurisdiction, each of the parties to this Agreement hereby irrevocably and unconditionally submits to the exclusive jurisdiction
of such courts. Each Pledgor hereby irrevocably and unconditionally: (a) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such Pledgor at its address referred to in Section 8.2 or at such other address of which the Secured Party
shall have been notified pursuant thereto and (b) agrees that nothing herein shall affect the right to effect service of process
in any other manner permitted by law.

 

8.13       Acknowledgments.
Each Pledgor hereby acknowledges that:

 

(a)       it
has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Transaction Documents to
which it is a party;

 

(b)       the
Secured Party has no fiduciary relationship with or duty to any Pledgor arising out of or in connection with this Agreement or
any of the other Transaction Documents, and the relationship between the Pledgors, on the one hand, and the Secured Party, on
the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)       no
joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated
hereby.

 

8.14       WAIVER
OF JURY TRIAL. EACH PLEDGOR AND THE SECURED PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.15       Additional
Pledgors. Any direct or indirect subsidiary of the Borrower created or formed on or after the date hereof shall be required
to become a Pledgor for all purposes of this Agreement, and shall execute and deliver an Assumption Agreement in the form of Annex
I hereto. Upon the execution and delivery by any subsidiary of an Assumption Agreement, the supplemental schedules attached to
such Assumption Agreement shall be incorporated into and become a part of and supplement the Schedules to this Collateral Agreement
and each reference

    - 27 -

     

    

to
such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each
Assumption Agreement.

 

8.16       Releases.
(a) On the Termination Date, the Collateral shall be released from the Encumbrances created hereby, and this Agreement and all
obligations (other than those expressly stated to survive such termination) of the Secured Party and each Pledgor hereunder shall
terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall
revert to the Pledgors. At the request and sole expense of any Pledgor following any such termination, the Secured Party shall
deliver to such Pledgor any Collateral held by the Secured Party hereunder, and execute and deliver to such Pledgor such documents
as such Pledgor shall reasonably request to evidence such termination.

 

(b)       If
any of the Collateral shall be sold, transferred or otherwise disposed of by any Pledgor in a transaction permitted by the Loan
Agreement, then the Secured Party, at the request and sole expense of such Pledgor, shall execute and deliver to such Pledgor
all releases or other documents reasonably necessary or desirable for the release of the Encumbrances created hereby on such Collateral.
At the request and sole expense of the Borrower, a Pledgor which is a subsidiary of the Borrower shall be released from its obligations
hereunder in the event that all the Shares of such Pledgor shall be sold, transferred or otherwise disposed of in a transaction
permitted by the Loan Agreement; provided that the Borrower shall have delivered to the Secured Party, at least ten Business
Days (or such shorter period reasonably acceptable to the Secured Party) prior to the date of the proposed release, a written
request for release identifying the relevant Subsidiary Party and the terms of the sale or other disposition in reasonable detail,
including the price thereof and any expenses in connection therewith, together with a certification by the Borrower stating that
such transaction is in compliance with the Loan Agreement and the other Transaction Documents.

    - 28 -

     

    

IN
WITNESS WHEREOF, each of the undersigned has caused this Collateral Agreement to be duly executed and delivered as of the date
first above written.

	 	RISE
    GOLD CORP.
	 	 
	 	By:	 
	 	 	Name: Vince Boon
	 	 	Title: CFO
	 	 
	 	RISE
    GRASS VALLEY INC.
	 	 
	 	By:	 
	 	 	Name: Benjamin W. Mossman
	 	 	Title: President and CEO

 

AGREED
AND ACCEPTED

 

ERIDANUS
CAPITAL, LLC,

a
Wyoming limited liability company

 

	 	By:	Myrmikan
    Capital, LLC	 
	 	 	a
    Delaware limited liability company	 
	 	Its:	Manager	 
	 	 	 	 
	 	 	By:	 	 
	 	 	Name:
    Daniel Oliver Jr.	 
	 	 	Title:
    Manager	 

    - 29 -

     

    

Schedule 1

 

NOTICE
ADDRESSES OF PLEDGORS

 

	Name
    	Address
    
	Rise
    Gold Corp. 	650
    – 669 Howe Street, Vancouver, BC V6C 0B4 
	 	Registered
    Office: Nevada Business Center, LLC, 701 S Carson Street, Suite 200, Carson City, NV 89701 
	Rise
    Grass Valley Inc. 	333
    Crown Point Circle, Ste 215, Grass Valley, CA 95945 
	 	Registered
    Office: Nevada Business Center, LLC, 701 S Carson Street, Suite 200, Carson City, NV 89701 

     

     

    

Schedule 2

 

PLEDGED
INVESTMENTS

 

Pledged
Stock:

 

	Registered

    Owner	

    Issuer	Stock

Certificate
No.	Number
    and Class of

    Shares	Percentage
    of

    Equity Interest
	Rise
    Gold Corp.	Rise
    Grass Valley Inc.	1	1,000
    shares of common stock with a par value of US$0.001	100%

 

Pledged
Debt: 

 

None.

     

     

    

Schedule 3

 

ACTIONS
TO PERFECT SECURITY INTERESTS

 

Uniform
Commercial Code Filings

 

Uniform
Commercial Code

P.O.
Box 942835

Sacramento,
California 94235-0001

 

Patent
and Trademark Filings

 

Not
Applicable

 

Actions
with respect to Pledged Stock

 

Share
certificate No. 1, registered in the name of the Parent Party representing 1,000 shares

of common stock of the Borrower, is to be delivered to the Secured Party along

with a stock power of attorney.

 

Deposit
Accounts/Securities Accounts/Commodities Accounts

 

If
requested by the Secured Party, a control agreement for deposit accounts containing

funds in excess of $50,000.

 

Uncertificated
Securities

 

None.

 

Other
Actions

     

     

    

Schedule 4

 

JURISDICTION
OF ORGANIZATION; LOCATION OF COLLATERAL

 

	Pledgor
    & 

Identification No.	Location
    of Chief 

Executive Office	Locations
    of Material 

Inventory & Equipment	Prior

                                         Locations

         

	Rise
                                         Gold Corp.

        NV
        Entity No.:

        E0094972007-8

        NV
        Business ID:

        NV20071152144

         

         
	650
    – 669 Howe Street, Vancouver, BC V6C 0B4	N/A	N/A
	Rise
                                         Grass Valley Inc.

        NV
        Entity No.:

        E0537812016-7

        NV
        Business ID:

        NV20161724330
	333
    Crown Point Circle, Ste 215, Grass Valley, CA 95945	12603
                                         East Bennett Rd, Grass Valley CA 95945

         

        and

         

        345
        Crown Point Circle, Unit 600, Grass Valley, CA 95945
	N/A

     

     

    

Schedule 5

 

INTELLECTUAL
PROPERTY

COPYRIGHTS
AND COPYRIGHT LICENSES OWNED BY RISE GOLD CORP.

U.S.
Copyright Registrations

 

No
U.S. copyrights are owned.

 

Pending
U.S. Copyright Applications for Registration
  

No
U.S. copyright applications are pending.

 

Non-U.S.
Copyright Registrations

 

No
non-U.S. copyrights are owned.

 

Non-U.S.
Pending Copyright Applications for Registration

 

No
non-U.S. copyright applications are pending.

 

Copyright
Licenses
 

 

No
copyright licenses.

     

     

    

PATENTS
AND PATENT LICENSES OWNED BY RISE GOLD CORP.

U.S.
Patent Registrations

 

No
U.S. patents are owned.

 

U.S. Patent Applications

 

No
U.S. patent applications are pending.

Non-U.S. Patent Registrations

 

No
non-U.S. patents are owned.

Patent Licenses

 

No
patent licenses.

     

     

    

TRADEMARK,
TRADEMARK LICENSES AND TRADE NAMES OWNED BY

RISE GOLD CORP.

 

U.S.
Trademark Registrations

 

No
U.S. trademarks are owned.

 

U.S.
Trademark Applications

 

No
U.S. trademark applications are pending.

 

State
Trademark Registrations

 

No
state trademarks are owned.

 

State
Trademark Applications

 

No
state trademark applications are pending.

 

Non-U.S.
Trademark Registrations

 

No
non-U.S. trademarks are owned.

 

Non-U.S.
Trademark Applications

 

No
non-U.S. trademark applications are pending.

 

Trademark
Licenses

 

No
trademark licenses.

 

Trade
Names

 

No
trade names owned.

     

     

    

COPYRIGHTS
AND COPYRIGHT LICENSES OWNED BY RISE GRASS

VALLEY
INC.

 

U.S.
Copyright Registrations

 

No
U.S. copyrights are owned.

 

Pending
U.S. Copyright Applications for Registration

 

No
U.S. copyright applications are pending.

 

Non-U.S.
Copyright Registrations

 

No
non-U.S. copyrights are owned.
 

 

Non-U.S.
Pending Copyright Applications for Registration 

 

No
non-U.S. copyright applications are pending.
 

 

Copyright
Licenses

 

No
copyright licenses.

     

     

    

PATENTS
AND PATENT LICENSES OWNED BY RISE GRASS VALLEY INC.

 

U.S.
Patent Registrations

 

No
U.S. patents are owned.

 

U.S.
Patent Applications

 

No
U.S. patent applications are pending.

 

Non-U.S.
Patent Registrations

 

No
non-U.S. patents are owned.

 

Patent
Licenses

 

No
patent licenses.

     

     

    

TRADEMARK,
TRADEMARK LICENSES AND TRADE NAMES OWNED BY
RISE GRASS VALLEY INC.

 

U.S.
Trademark Registrations

 

No
U.S. trademarks are owned.

 

U.S.
Trademark Applications

 

No
U.S. trademark applications are pending.

 

State
Trademark Registrations

 

No
state trademarks are owned.

 

State
Trademark Applications

 

No
state trademark applications are pending.

 

Non-U.S.
Trademark Registrations

 

No
non-U.S. trademarks are owned.

 

Non-U.S.
Trademark Applications

 

No
non-U.S. trademark applications are pending.

 

Trademark
Licenses

 

No
trademark licenses.

 

Trade
Names

 

No
trade names owned.

     

     

    

Schedule 6

 

DEPOSIT
ACCOUNTS; SECURITIES ACCOUNTS; COMMODITY ACCOUNTS

 

Rise
Gold Corp. 

 

Deposit
Accounts:

 

	Account	Account
    Name	Currency	Financial
    Institution
	00041797888	Rise
    Gold Corp.	CAD	BMO
    Bank of Montreal
	00044661547	Rise
    Gold Corp.	USD	BMO
    Bank of Montreal

 

Securities
Accounts:

None.

 

Commodity
Accounts:

None.

 

Rise
Grass Valley Inc. 

 

Deposit
Accounts:

 

	Account	Account
    Name	Currency	Financial
    Institution
	3860277	Rise
    Grass Valley	USD	BMO
    Harris

 

Securities
Accounts:

None.

 

Commodity
Accounts:

None.

     

     

    

Annex
I to

Collateral
Agreement

 

ASSUMPTION
AGREEMENT, dated as of __________________________, 201_, made by ___________________, a ___________________ (the “Additional
Pledgor”), in favor of ERIDANUS CAPITAL, LLC, a Wyoming limited liability company, as Secured Party. All capitalized
terms not defined herein shall have the meaning ascribed to them in the Collateral Agreement (as defined below).

  

W
I T N E S S E T H :

  

WHEREAS,
Rise Grass Valley, Inc. (the “Borrower”) and the Secured Party have entered into a loan agreement, dated as
of [______________] (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”);

 

WHEREAS,
in connection with the Loan Agreement, the Borrower and certain of its Affiliates (other than the Additional Pledgor) have entered
into the Collateral Agreement, dated as of even date therewith (as amended, supplemented or otherwise modified from time to time,
the “Collateral Agreement”) in favor of the Secured Party;

 

WHEREAS,
the Loan Agreement requires the Additional Pledgor to become a party to the Collateral Agreement; and

 

WHEREAS,
the Additional Pledgor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Collateral
Agreement;

 

NOW,
THEREFORE, IT IS AGREED:

 

1.       Collateral
Agreement. By executing and delivering this Assumption Agreement, the Additional Pledgor, as provided in Section 8.15 of the
Collateral Agreement, hereby becomes a party to the Collateral Agreement as a Pledgor thereunder with the same force and effect
as if originally named therein as a Pledgor and, without limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Pledgor thereunder. In furtherance of the foregoing, the Additional Pledgor, as security for
the payment and performance in full of the Obligations, does (x) hereby create and grant to the Secured Party, its successors
and assigns, a security interest in all of the Additional Pledgor’s right, title and interest in and to the Collateral of
the Additional Pledgor. Each reference to a “subsidiary” or a “Pledgor” in the Collateral Agreement shall
be deemed to include the Additional Pledgor. The Collateral Agreement is hereby incorporated herein by reference. The information
set forth in Annex 1-A hereto (a) is a true and correct schedule of all of the Collateral of the Additional Pledgor as of the
date hereof and (b) is hereby added to the information set forth in Schedules [____]1 to the Collateral Agreement.
The Additional Pledgor hereby represents and warrants that each of the representations and warranties contained in Section 4 of
the Collateral Agreement applicable to it

 

 

		1	Refer
to each Schedule which needs to be supplemented.

     

     

    

is true and correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

 

2.       Representations
of Additional Pledgor. The Additional Pledgor represents and warrants to the Secured Party that this Assumption Agreement
has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against
it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

3.       Counterparts;
Binding Effect. This Assumption Agreement may be executed in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original, but all of which, when taken together, shall constitute a single contract. This Assumption
Agreement shall become effective when (a) the Secured Party shall have received a counterpart of this Assumption Agreement that
bears the signature of the Additional Pledgor and (b) the Secured Party has executed a counterpart hereof. Delivery of an executed
counterpart of a signature page of this Assumption Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Assumption Agreement.

 

4.       Full
Force and Effect. Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect.

 

5.       Severability.
Any provision of this Assumption Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability in such jurisdiction of the remaining provisions hereof and of the Collateral Agreement; and the invalidity
of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

6.       Notices.
All communications and notices hereunder shall be in writing and given as provided in Section 8.2 of the Collateral Agreement.
All communications and notices hereunder to the Additional Pledgor shall be given to it at the address set forth under its signature
below.

 

7.       Fees
and Expenses. The Additional Pledgor agrees to reimburse the Secured Party for its reasonable out-of-pocket expenses in connection
with this Assumption Agreement, including the reasonable fees, disbursements and other charges of counsel for the Secured Party.

 

8.       Governing
Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF CALIFORNIA.

 

     

     

    

IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above
written.

 

	 	[ADDITIONAL PLEDGOR]
	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	Address for Notices:
	 	 	 
	 	 	 

 

AGREED
TO AND ACCEPTED

 

ERIDANUS
CAPITAL, LLC,

a
Wyoming limited liability company

 

	 	By:	Myrmikan Capital, LLC	 
	 	 	a Delaware limited liability company	 
	 	Its:	Manager	 
	 	 	 	 
	 	 	By: 	 	 
	 	 	Name:  Daniel Oliver Jr.	 
	 	 	Title:    Manager

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