Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 10.6

 FUNDING PLEDGE AGREEMENT 

THIS AGREEMENT dated the 29th day of September, 2004. 

AMONG: 

  
    
       WILSHIRE FINANCIAL SERVICES INC., a corporation incorporated
        pursuant to the laws of the Province of Alberta

       (“Wilshire”)

       -and- 

       GIBRALTAR MINES LTD., a corporation incorporated pursuant
        to the laws of the Province of British Columbia 

       (“Resource Company”)

       -and- 

       ALBERTA CAPITAL TRUST CORPORATION, a corporation incorporated
        pursuant to the laws of Alberta 

       (“Alberta Trust”) 

    

  

	 A.      	 Pursuant to loan applications (the “Unit
        Loan Agreements”) accepted by Alberta Trust and the related
        investment loan agreements, Alberta Trust has agreed to advance loans
        (the “Investor Loans”) to investors of Red Mile Resources
        Fund Limited Partnership (the “Offering Partnership”)
        in connection with their subscription for limited partnership units (the
        “Units”) in the capital of the Offering Partnership
        (the Investor Loans, together with all interest and other sums accrued
        thereon, shall be hereinafter referred to as the “Investor Loan
        Indebtedness”). 

	 
	 B.      	 Pursuant to an interim loan agreement dated September
        29, 2004 between Alberta Trust and Offering Partnership, Alberta Trust
        agreed to establish an interim credit facility in favour of the Offering
        Partnership (the “Interim Loan”) which is to be repaid
        by proceeds of the advance of the Investor Loans (the Interim Loan together
        with all interest all interest and other sums accrued thereon, shall hereinafter
        be referred to as the Interim Loan Indebtedness). 

	 
	 C.      	 Pursuant to the terms of a put/call option agreement
        (the “Put/Call Agreement”), dated as of June 15, 2004,
        between Alberta Trust and Wilshire, as amended September 29, 2004, Alberta
        Trust is entitled, under certain circumstances, to cause Wilshire to acquire
        the Investor Loan Indebtedness and the Interim Loan Indebtedness (the
        “Indebtedness”) in exchange for which Wilshire will
        be required to pay the Acquisition Price or the Accelerated Put Acquisition
        Price, as such terms are defined in the Put/Call Agreement. 

 

	 D.      	 Alberta Trust has agreed to provide the Investor
        Loans and enter into the Put/Call Agreement on the condition that any
        resource company that becomes involved in a resource program would agree
        to provide funds under a funding agreement and provide security for that
        obligation or as permitted under the pledge, priorities and direction
        agreement dated September 29, 2004 among Alberta Trust, Resource Company
        and Wilshire among others (the “Pledge, Priorities and Direction
        Agreement”). 

	 
	 E.      	 Pursuant to the terms of a funding agreement (the
        “Funding Agreement”), dated as of the date hereof between
        Resource Company and Wilshire, Resource Company has agreed to advance
        funds (the “Funding Advance”) to Wilshire up to the
        Loan Maximum (as defined in the Funding Agreement) if and when required
        by Wilshire to assist in the payment of the Acquisition Price or the Accelerated
        Put Acquisition Price under the Put/Call Agreement. 

	 
	 F.      	 Pursuant to the terms of the Put/Call Agreement,
        Wilshire has agreed to provide security to Alberta Trust to secure its
        obligations thereunder. 

	 
	 G.      	 As security for its obligations to make the Funding
        Advance, Resource Company hereby advances the sum of $68,172,380 (the
        “Advance”) to Alberta Trust, in exchange for a promissory
        note in the form attached as Schedule “A” hereto,
        to be issued by Alberta Trust (the “Promissory Note”)
        and agrees to grant a security interest in the Promissory Note to Alberta
        Trust and Wilshire. 

	 
	 	 NOW THEREFORE, in consideration of the mutual
        covenants contained herein and other good and valuable consideration,
        the receipt and sufficiency of which are hereby acknowledged, the parties
        hereto agree as follows: 

 1.            Preamble
  and Paragraph References. The preamble to this Agreement shall form an integral
  part hereof. All references in this Agreement to paragraphs and subparagraphs
  refer to paragraphs and subparagraphs of this Agreement unless otherwise specified.

 2.            Obligation
  to Make Funding Advance. Resource Company hereby acknowledges its obligations
  under the Funding Agreement to pay the Funding Advance to Wilshire on the date
  (the “Exercise Date”) on which Wilshire is obligated to pay
  the Acquisition Price or the Accelerated Put Acquisition Price, as the case
  may be, to Alberta Trust pursuant to the Put/Call Agreement and in accordance
  with the Funding Agreement, and acknowledges that the Funding Advance will be
  used by Wilshire to make payments on account of the Acquisition Price or the
  Accelerated Put Acquisition Price, as the case may be, to Alberta Trust. Wilshire
  hereby irrevocably authorizes and directs Resource Company to pay the Funding
  Advance, if and when made, to Alberta Trust and Resource Company hereby acknowledges
  and irrevocably accepts such authorization and direction, hereby irrevocably
  obligating itself in favour of Alberta Trust to pay the Funding Advance to Alberta
  Trust in accordance with the terms of this Agreement and the Funding Agreement;
  provided that such authorization and direction shall not be valid and effective
  unless and until Wilshire is obligated to pay the Acquisition Price or the Accelerated
  Put Acquisition Price, as the case may be, to Alberta Trust. 

 3.            The
  Advance. 

 2 

 

	 	 (a)      	 Alberta Trust hereby acknowledges receipt of the
        Advance from Resource Company and issues the Promissory Note to Resource
        Company; 

	 
	 	 (b)      	 Subject to section 8 hereof and the terms of the
        Pledge, Priorities and Direction Agreement dated the date hereof among
        the Offering Partnership, Red Mile Resources No. 2 Limited Partnership,
        Resource Company, Wilshire and Alberta Trust, among others, the outstanding
        principal amount of the Promissory Note, together with any accrued and
        unpaid interest thereon, shall be repayable by Alberta Trust on or by
        December 10, 2014 (the “Maturity Date”) together with
        accrued interest thereon at an annual interest rate of six percent (6%)
        calculated daily and compounded on December 30, 2004 and on February 15th
        of each year thereafter. 

	 
	 	 (c)      	 Alberta Trust may not make any pre-payments on account
        of any amounts owing (principal or interest) under the Promissory Note
        prior to the Maturity Date, other than as permitted hereunder or under
        the Pledge, Priorities and Direction Agreement. 

 4.            Resource
  Company Grant of Security Interest.

	 	 (a)      	 Resource Company grants a security interest in all
        of its right and title to and interest in the Promissory Note in favour
        of: (i) Alberta Trust, as general and continuing collateral security (the
        “First RC Security Interest”) for the performance of
        Resource Company’s obligations and/or Wilshire’s obligations
        under this Agreement; and (ii) Wilshire, as general and continuing collateral
        security (the “Second RC Security Interest” collectively
        with the First RC Security Interest, the “RC Security Interests”)
        for the performance of Resource Company’s obligations under the
        Funding Agreement; 

	 
	 	 (b)      	 Resource Company hereby remits the Promissory Note
        to Alberta Trust and Alberta Trust agrees to hold the Promissory Note
        solely in accordance with the terms set out herein; 

	 
	 	 (c)      	 The RC Security Interests created hereby shall be
        effective immediately upon Alberta Trust’s receipt of the Advance
        and the issuance of the Promissory Note. 

	 
	 	 	 Attachment of the RC Security Interests shall not
        be postponed. Resource Company shall sign such further documentation which
        may be reasonably required by Alberta Trust and/or Wilshire to give effect
        to the RC Security Interests in the Promissory Note; 

	 
	 	 (d)      	 Wilshire hereby acknowledges that the First RC Security
        Interest shall rank prior to and not pari passu with the Second
        RC Security Interest, it being understood that Alberta Trust shall have
        the benefit of such security interest free and clear of any security interest
        in same of Wilshire that would otherwise rank prior to or pari passu
        with that of Alberta Trust; and 

	 
	 	 (e)      	 Resource Company hereby irrevocably makes, constitutes
        and appoints Alberta Trust and each of its officers, agents or designees
        (with full right and power of 

 3 

 

	 	    
	 substitution, resubstitution and delegation
        but without obligation to Wilshire or Resource Company), as its true and
        lawful attorney-in fact (Resource Company hereby acknowledging that such
        appointment is a power coupled with an interest) with full power to take
        all actions and sign, execute, acknowledge, record and file: 

	 
	 	 	(i)
	 in Alberta Trust’s name and/or in the name
        of Resource Company but for Alberta Trust’s use and benefit, all
        financing statements required; and/or 

	 
	 	 	(ii)
	 in Wilshire’s name and/or in the name of Resource
        Company but for Wilshire’s use and benefit, all financing statements
        required; 

	 
	 	 	
and to execute in the name of Resource Company all
        endorsements necessary to perfect Alberta Trust’s First Security
        Interest or Wilshire’s Second Security Interest. 

	 
	 5.           Wilshire
      Grant of Security Interest. 
	 
	 	(a)
	 Wilshire hereby grants and
        assigns a security interest in the Second RC Security Interest to Alberta
        Trust (the “Wilshire Security Interest”) in the Promissory
        Note to Alberta Trust as general and continuing collateral security for
        the performance of Wilshire’s obligations under paragraph 11 hereof
        and under the Put/Call Agreement; 

	 
	 	(b) 
	 The Wilshire Security Interest
        shall be effective immediately upon the creation of the RC Security Interests.
        Attachment of the Wilshire Security Interest shall not be postponed. Wilshire
        shall sign such further documentation which may be reasonably required
        to give effect to the Wilshire Security Interest. Wilshire acknowledges
        and consents to the remittance by the Resource Company to Alberta Trust
        of the Promissory Note. 

	 
	 6.           Appointment
      of Alberta Trust. Resource Company and Wilshire hereby jointly appoint
      Alberta Trust to: 
	 
	 	(a)
	 hold the Promissory Note
        as pledgee hereunder to the extent of Alberta Trust’s entitlement
        thereto; 

	 
	 	(b) 
	 hold the Promissory Note
        as an agent for and on behalf of Wilshire, to the extent of its entitlement
        thereto; and 

	 
	 	(c)
	 pay amounts owing under the
        Promissory Note or endorse and transfer the Promissory Note (the amounts
        paid or the amount owing under the Promissory Note at the time of the
        endorsement or transfer, including any accrued but unpaid interest or
        the Promissory Note itself, being hereinafter referred to as “Note
        Proceeds”), in accordance with the terms of this Agreement.
      

	 
	 	 Alberta Trust hereby accepts such appointment,
        all on and subject to the terms and conditions of this Agreement. 

 4 

 7.            Acknowledgement
  and Acquiescence. The parties hereto acknowledge that Alberta Trust shall
  hold the Promissory Note and will receive the Advance subject to the interests
  of the parties hereto as set out herein, but without derogation from the rights
  of Alberta Trust hereunder as pledgee of the Promissory Note. Alberta Trust
  acknowledges that it holds, and shall continue to hold the Promissory Note,
  without interruption. Alberta Trust, as obligor in respect of the Promissory
  Note, acknowledges and acquiesces in the grant of the RC Security Interests
  and the Wilshire Security Interest. Resource Company further acknowledges that,
  pursuant to section 2.4 of the Put/Call Agreement, Alberta Trust shall be entitled,
  in certain circumstances set out therein, to cause Wilshire to acquire a portion
  of the Indebtedness. 

 8.            Transfer
  and/or Disbursement of Note Proceeds. Notwithstanding any other provisions
  hereof, in the event that, under the Put/Call Agreement, (i) Alberta Trust delivers
  a Put Notice pursuant to Section 2.1 thereof, (ii) Wilshire delivers a Call
  Notice pursuant to Section 2.2 thereof, or (iii) Alberta Trust exercises its
  rights pursuant to Section 2.4 thereof, the parties to this Agreement hereby
  irrevocably authorize Alberta Trust to transfer the Note Proceeds on the Exercise
  Date in the manner, and to satisfy the obligations, set forth in paragraph 10
  hereof and such transfer of the Note Proceeds shall be attributed on account
  of the payments set forth in paragraph 9 hereof.

 9.            Attribution
  of Payments. It is hereby acknowledged by the parties hereto that the payments
  made pursuant to paragraph 8 shall be attributed to and deemed paid on account
  of the following payments in the following order of priority and shall satisfy
  each of the obligations incurred thereby: 

	 	 (a)      	 payment by Resource Company to Wilshire of the Funding
        Advance to the extent of amounts required to be advanced under the Funding
        Agreement; and 

	 
	 	 (b)      	 payment by Wilshire to Alberta Trust of the Acquisition
        Price or the Accelerated Put Acquisition Price, as the case may be, under
        paragraph 10 below and under the Put/Call Agreement, 

 and each of Resource Company and Wilshire irrevocably authorize
  Alberta Trust to do all things and take all steps necessary to transfer or endorse,
  on their behalf, their interest in the Note Proceeds to satisfy the foregoing
  obligations. 

 10.           Satisfaction
  of Obligations. To the extent that the Note Proceeds are transferred and/or
  disbursed by Alberta Trust in accordance with the provisions of paragraph 8
  or otherwise, it is acknowledged by the parties hereto that Resource Company
  shall be deemed to have satisfied its obligations under the Funding Agreement
  to the extent of the Note Proceeds and Wilshire shall be deemed to have satisfied
  its obligations under the Put/Call Agreement to such extent. For greater certainty,
  any transfer or endorsement of the Promissory Note shall be without any representation
  and warranty whatsoever as to the value, validity, enforceability or perfection
  of the Promissory Note or the security interest created therein and the attributed
  obligations set out herein shall be considered satisfied in an amount equal
  to the face value of the Promissory Note and all interest accrued thereon. 

 5 

 11.           Notification
  of Claims. Each of Resource Company and Wilshire shall notify Alberta Trust
  in writing upon becoming aware of any claim or cause of action (in the case
  of Resource Company, related to Resource Company) referred to in paragraph 2.4
  of the Put/Call Agreement within five business days of receipt of notice of
  such claim, proceeding or cause of action and provide to Alberta Trust full
  particulars thereof provided that failure to do so shall not constitute a breach
  hereunder. 

 12.           Release.
  Upon the disbursement of all of the Note Proceeds, Alberta Trust shall be fully
  released by all of the parties hereto from any and all liability or obligation
  which Alberta Trust may have assumed or incurred pursuant to the Promissory
  Note and this Agreement. 

 13.           Other
  Claims. Each of the parties hereto, other than Alberta Trust, on its own
  behalf, hereby covenants not to assert any lien, encumbrance or other claim
  with respect to the Promissory Note except as expressly provided herein. 

 14.           Right
  to Retain Promissory Note. So long as Alberta Trust shall retain an interest
  in the Promissory Note pursuant to paragraphs 4 or 5, the Promissory Note or
  the applicable portion thereof, as the case may be, shall continue to be governed
  by this Agreement. 

 15.           Limitation
  of Liability. Alberta Trust shall not be liable for any error of judgement
  or for any act done or step taken or omitted by it in good faith or for any
  mistake of fact or law or for anything which it may do or refrain from doing
  in connection herewith, except its own or its employees’ wilful misconduct,
  gross negligence or fraud, including, without limitation, in acting upon any
  written notice, request, waiver, consent, receipt or other paper or document
  signed by a party or parties purporting to be the proper party or parties. For
  greater certainty, the parties hereby confirm and agree that Alberta Trust shall
  not be held liable for any inaccuracy or error contained in any Put Notice or
  Call Notice and shall not be held liable for any amounts released and distributed
  in reliance thereon. 

 16.           Indemnity.
  The parties shall jointly and severally indemnify and hold Alberta Trust harmless
  against any loss, liability or expense incurred by Alberta Trust as a consequence
  of its acting pursuant to the terms of this Agreement and, except for the gross
  negligence, fraud or bad faith of Alberta Trust or its servants or agents in
  connection with the administration of its duties hereunder, such indemnification
  shall include, without limitation, the costs and expenses of its defence against
  any claim or liability in connection therewith, including all reasonable legal
  costs. For greater certainty, the foregoing shall not extend to any obligations
  of Alberta Trust as debtor under the Promissory Note. This indemnity shall survive
  the termination of this Agreement. 

 17.           Disputes.
  With the exception of paragraph 8, in the event of any disagreement between
  any of the parties to this Agreement, or between them or any of them and any
  other person, resulting in demands or claims being made in connection with or
  for any asset involved herein or affected hereby, Alberta Trust shall be entitled,
  at its discretion, to refuse to comply with any demands or claims on it, as
  long as such disagreement shall continue, and in so refusing Alberta Trust may
  make no delivery or other disposition of any asset involved herein or affected
  hereby, and in so doing Alberta Trust shall not be or become liable in any way
  or to any person or party for its failure or refusal to comply with such conflicting
  demands or claims, and it shall be 

 6 

 entitled to continue so to refrain from acting and so to refuse
  to act until the right of the person or party shall have been finally adjudicated
  in a court assuming and having jurisdiction over the asset involved herein or
  affected hereby, or all differences shall have been adjusted by agreement and
  Alberta Trust shall have been notified thereof in writing signed by all persons
  and parties interested. For greater certainty, the foregoing shall not extend
  to any obligations of Alberta Trust as debtor under the Promissory Note. 

 18.           Right
  of Set-Off. Alberta Trust accepts the First RC Security Interest and Wilshire
  Security Interest granted to it hereunder free and clear of all equities or
  rights of set-off or compensation which may otherwise arise for the benefit
  of any of the other parties hereto in connection with the Promissory Note. The
  remedies available to Alberta Trust pursuant hereto may, for the purposes of
  the section 97(3) of the Bankruptcy and Insolvency Act (Canada), R.S.C.
  1985 c.B-3, as amended, be treated as a set-off; provided that Alberta Trust
  acknowledges that it has no right to set-off against any party hereto where
  such set-off or compensation involves a debt which is unrelated to the Put/Call
  Agreement, the Funding Agreement, this Agreement, the Investor Loan Agreements
  or the Interim Loan Agreement. 

 19.           Other
  Agreements and Waiver. 

	 	 (a)      	 Alberta Trust is not a party to, and is not bound
        by, any agreement which may be evidenced by, or arise out of, the appointments,
        directions and authorizations contained herein other than as expressly
        set forth herein; 

	 
	 	 (b)      	 Alberta Trust is not a party to, and is not bound
        by, the Funding Agreement. 

 20.           Notices.
  All notices given hereunder must be in writing and may delivered by personal
  delivery or by pre-paid, registered or certified mail, or by telecopier or facsimile
  to the following address or to such other address or addresses as the parties
  hereto advise the other parties in writing from time to time and shall be deemed
  received three days after mailing by registered or certified mail, and 24 hours
  after delivery by telecopier or facsimile transmission: 

 7 

 

	 To Gibraltar Mines Ltd.:  	 To Wilshire Financial Services Inc.  
	  	 
	 1020 – 800 W. Pender St.  	 Suite 920 – 1040 West Georgia Street  
	 Vancouver, British Columbia  	 Vancouver, British Columbia  
	 V6V 2V6  	 V6E 4H1  
	  	 
	 Attention: President  	 Attention: Robert C. Strother  
	 Fax: (604) 681-2741  	 Fax:  (604) 669-9485  
	  	 
	 With a copy to:  	 and:  
	  	 
	 Lang Michener LLP  	 Michael Simonetta  
	 1500 Royal Centre  	 Fax:  (416) 920-1947  
	 P.O. Box 11117  	  
	 1055 West Georgia Street  	  
	 Vancouver, British Columbia  	  
	 V6e 4N7  	  
	  	 
	 Attention:  Bernard J. Zinkhofer  	  
	 Fax: (604) 893-2395  	  
	  	 
	 To Alberta Capital Trust Corporation 
    	  
	  	 
	 1300, 10665 Jasper Avenue  	  
	 Edmonton, Alberta  	  
	 T5J 3S9  	  
	  	 
	 Attention: President  	  
	 Facsimile:  (780) 424-3631  	  
	  	 
	 With a copy to:  	  
	  	 
	 Gowling Lafleur Henderson LLP  	  
	 1400 Scotia Centre  	  
	 700 – 2nd Street S.W.  	  
	 Calgary, Alberta T2P 4V5  	  
	  	 
	 Attention:  Richard Myers  	  
	 Fascimile:  (403) 263-9193  	  

 21.           Assignment.
  This Agreement shall not be assigned by any of the parties hereto. This Agreement
  shall enure to the benefit of and be binding upon each of the parties hereto
  and their respective successors and legal assigns. 

 8 

 22.           Governing
  Law. This Agreement shall be governed by and construed and in force in accordance
  with the law of the Province of Alberta and the law of Canada applicable therein.

 23.           Counterparts.
  This Agreement may be executed in counterparts, each of which shall be deemed
  an original and all of which, taken together, shall constitute one and the same
  instrument. Delivery of an executed counterpart of this Agreement by facsimile
  shall be equally effective as delivery of a manually executed counterpart thereof.
  Any party delivering an executed counterpart by facsimile shall also deliver
  a manually executed counterpart of this Agreement, but failure to do so shall
  not affect the validity, enforceability, or binding effect hereof. 

 24.           Severability.
  Any provision of this Agreement which is invalid, illegal or unenforceable in
  any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
  of such invalidity or illegality or unenforceability, without affecting in any
  way the remaining provisions hereof in such jurisdiction or rendering that or
  any other provision of this Agreement invalid, illegal or unenforceable in any
  other jurisdiction. 

 25.           Choice
  of Jurisdiction. Each of the parties hereto irrevocably consents and agrees
  that any legal action or proceedings against it or any of its property with
  respect to this Agreement or any other agreement executed in connection herewith
  may be brought in Alberta and by the execution and delivery of this Agreement,
  each party hereto hereby accepts with regard to any such action or proceeding
  for itself or with respect to its property, generally and unconditionally, the
  jurisdiction of the applicable jurisdiction. Nothing herein shall affect the
  right of any party to serve process in any other manner permitted by law or
  to commence legal proceedings or otherwise proceed against any other party in
  any other jurisdiction. 

 26.           Time
  of Essence. Time shall be of the essence in this Agreement. 

 27.           Gender.
  In this Agreement, the masculine gender shall include the feminine and the singular
  shall include the plural and vice-versa. 

 28.           Currency.
  Unless otherwise expressly stated, any reference herein to any sum of money
  shall be construed as a reference to lawful currency of Canada. 

 29.           Further
  Assurances. Each party shall execute and deliver such other documents or
  instruments as may be necessary or desirable to evidence, give effect to or
  confirm this Agreement, and any of the terms and conditions hereof, including,
  without limitation, the provisions set out in paragraph 10 hereof. 

 30.           Other.
  The right of Alberta Trust to cause Wilshire to acquire the Acquired Indebtedness
  under the Put/Call Agreement and the obligation of Resource Company to pay the
  Funding Advance to Alberta Trust pursuant to paragraph 2 hereof, and the right
  of Alberta Trust to transfer or endorse the Promissory Note in payment and satisfaction
  of the Acquisition Price or Accelerated Put Acquisition Price, as the case may
  be, shall subsist as an independent contract for the full payment of the Advance,
  among Alberta Trust, Wilshire and Resource Company, irrespective of the terms
  or status of the other provisions of this Agreement, the Funding Agreement or
  any other agreement or instrument in connection with this transaction (but without
  prejudice thereto) and irrespective of the state of accounts otherwise among
  the parties hereto or 

 9 

 any of them. Any such Advance paid to Alberta Trust will be
  made as an advance under the Funding Agreement. 

[REST OF PAGE INTENTIONALLY LEFT BLANK] 

 10 

IN WITNESS WHEREOF the parties have executed this Agreement on the date first mentioned above. 

	 WILSHIRE FINANCIAL SERVICES INC. 
    	 
	 	 	 
	 	 	 
	 	 	 
	By:	  	 
	 	 	 
	 	 	 
	 	 	 
	By:	   	 
	 	 	 
	 	 	 
	 GIBRALTAR MINES LTD.  	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	 	 
	 	 	 
	 ALBERTA CAPITAL TRUST CORPORATION 
    	 
	 	 	 
	 	 	 
	 	 	 
	By:	 :  	 

 11 

 Schedule A

   PROMISSORY NOTE 

 Due Date: December 10, 2014 

 FOR VALUE RECEIVED, the undersigned, Alberta Capital Trust
  Corporation, a corporation incorporated pursuant to the laws of the Province
  of Alberta (“Alberta Trust”), having its offices at 10665
  Jasper Avenue, Suite 1300, First Edmonton Place, Edmonton, Alberta T5J 3S9,
  hereby acknowledges having received from Gibraltar Mines Ltd, a corporation
  incorporated pursuant to the laws of the Province of Alberta (the “Resource
  Company”), the sum of $68,172,380 (the “Advance”).
  Alberta Trust promises to pay to, or to the order of, the Resource Company at
  1020 – 800 W. Pender St., Vancouver, British Columbia,V6V 2V6 or at such
  other place as the Resource Company may designate, the principal amount of the
  Advance in accordance with and at such times as are stipulated in the funding
  pledge agreement (the “Funding Pledge Agreement”) among inter
  alia, the Resource Company and Alberta Trust, dated September 29, 2004,
  but in no event, later than December 10, 2014 (the “Maturity Date”).

                Alberta
  Trust promises to pay interest, at a rate of six percent (6%) per annum calculated
  daily and compounded on December 30 in 2004 and February 15 of every year thereafter,
  to be payable by cheque in arrears in instalments on or before February 15,
  2005 and on or before February 15th of each year thereafter, until
  and including February 15, 2014, plus one final instalment due and payable by
  cheque on the Maturity Date as specified in the Funding Pledge Agreement. 

                Alberta
  Trust hereby waives all grace periods, presentment, demand, notice of non-payment,
  protest, notices of protest and all other formalities with respect hereto. 

                This
  promissory note is the promissory note referred to in the Funding Pledge Agreement.
  All capitalized terms used herein, which are not otherwise defined, shall have
  the meanings ascribed thereto in the Funding Pledge Agreement.

                The
  promissory note may not be assigned, transferred, endorsed or otherwise negotiated,
  other than in accordance with the terms and conditions of the Funding Pledge
  Agreement, without the prior written consent of Alberta Trust. 

                The
  Funding Pledge Agreement, among other things, provides for acceleration of the
  maturity of Advance evidenced hereby upon the happening of certain stated events
  and also for prepayment on account of principal hereof prior to the maturity
  of Advance evidenced hereby upon the terms and conditions therein specified.

                This
  promissory note has been duly executed as of 29th day of September, 2004.

	 	 ALBERTA CAPITAL TRUST  
	 	 CORPORATION  
	 	 	  
	 	By:	   
	 	 	 Authorized Signing OfficerFiled by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Indemnification Agreement

 INDEMNIFICATION AGREEMENT 

THIS AGREEMENT dated September 29, 2004. 

B E T W E E N: 

  
    
      
         GIBRALTAR MINES LTD., a corporation incorporated
          pursuant to the laws of British Columbia; 

         (the “Resource Company”), 

         - and - 

         WILSHIRE FINANCIAL SERVICES INC., a corporation
          incorporated pursuant to the laws of Alberta; 

         (hereinafter referred to as “Wilshire”).
        

      

    

  

WHEREAS: 

	 A.      	 Wilshire has agreed to provide Management Services
        to the Offering Partnership pursuant to the terms of the Management Services
        Agreement, which include the making of recommendations to the Offering
        Partnership to acquire units of the Resource Partnership. 

	 
	 B.      	 Wilshire has relied upon information provided by
        the Resource Company in respect of the Project in rendering such services
        to the Offering Partnership. 

	 
	 C.      	 The Offering Partnership has agreed to subscribe
        for units of the Resource Partnership and acquire a mineral royalty interest
        in the production of ore located on mining tenures owned by the Resource
        Company. 

	 
	 D.      	 The Resource Company has agreed to indemnify Wilshire
        for any Claims on the terms and conditions set out in this Agreement.
      

 NOW THEREFORE, in consideration of the premises and
  the mutual covenants and agreements contained herein and for other good and
  valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
  the parties hereby agree as follows: 

 ARTICLE 1 

  INTERPRETATION

	 1.1      	 Defined Terms. 

	 
	 	 In this Agreement, the following terms
        shall have the following meanings: 

	 
	 	 (a)     
      
	 “Agreement” means this indemnification
        agreement and any and all amendments made by written agreement between
        the parties hereto, and the expressions “hereby”, “herein”,
        “hereof”, “hereto”, “hereunder” and
        similar expressions refer 

 - 2 - 

	 	 	 to this Agreement and, unless otherwise indicated,
        references to Sections are references to sections of this Agreement; 

	 
	 	 (b)      	 “Claims” means any claims relating
        to a breach or default by the Resource Company under the Royalty Agreement;
      

	 
	 	 (c)      	 “Demand Notice” has the meaning
        ascribed thereto in Section 3.1 hereof; 

	 
	 	 (d)      	 “Resource Partnership” means
        Red Mile Resources No. 2 Limited Partnership, a limited partnership formed
        pursuant to the laws of the Province of British Columbia; 

	 
	 	 (e)      	 “Funding Agreement” means that
        certain agreement to be dated the date hereof between Wilshire and the
        Resource Company pursuant to which the Resource Company has established
        a credit facility in favour of Wilshire in accordance with the terms and
        conditions thereof; 

	 
	 	 (f)      	 “Indemnified Parties” means Wilshire,
        its directors, officers, employees, agents, successors or permitted assigns;
      

	 
	 	 (g)      	 “Losses” means, collectively,
        any liabilities, obligations, losses, damages, penalties, actions, judgments,
        suits, claims, costs, expenses and disbursements of any kind or nature
        whatsoever, incurred, charged to or paid by any Indemnified Party arising
        out of, as a result of or in connection with a claim, including, but not
        limited to, any loss incurred by such Indemnified Party in connection
        with the Management Services Agreement; 

	 
	 	 (h)      	 “Management Services Agreement”
        means that certain management services agreement dated as of June 15,
        2004 between Wilshire and the Offering Partnership; 

	 
	 	 (i)      	 “Management Services” has the
        meaning ascribed thereto in the Management Services Agreement; 

	 
	 	 (j)      	 “Offering Partnership” means
        Red Mile Resources Fund Limited Partnership, a limited partnership formed
        pursuant to the laws of the Province of British Columbia; 

	 
	 	 (k)      	 “Payable Obligations” has the
        meaning ascribed thereto in Section 3.1 hereof; 

	 
	 	 (l)      	 “Project” means the production
        of ore and the extraction of minerals from any and all mines located on
        mineral tenures owned by the Resource Company, in respect of which the
        Resource Partnership has purchased a mineral royalty interest pursuant
        to the Royalty Agreement; 

	 
	 	 (m)      	 “Royalty Agreement” means that
        certain mineral royalty agreement dated as of the date hereof among the
        Resource Partnership, the Offering Partnership and the 

 - 3 - 

	 	  	Resource Company whereby the Resource Partnership
        acquired a mineral royalty interest from Resource Company; 

	 
	 	 (n)      
	 “Unit” or “Units”
        means an equal and undivided limited partnership interest in and to the
        Resource Partnership; and 

	 
	 	 (o)      
	 “Wilshire Indebtedness” has the
        meaning ascribed thereto in Section 3.2 hereof. 

	 
	 1.2      	 Capitalized Terms. 

	 
	 	 Unless otherwise defined in this Agreement,
        all capitalized terms used herein shall have the meaning ascribed to them
        in the Management Services Agreement. 

	 
	 1.3      	 Currency. 

	 
	 	 All amounts referred to in this Agreement
        are intended to be in lawful currency of Canada unless otherwise specified
        herein. 

	 
	 1.4      	 Computation of Time Periods. 

	 
	 	 In this Agreement, in the computation
        of periods of time from a specified date to a later specified date, unless
        otherwise expressly stated, the word “from” means “from
        and including” and the words “to” and “until”
        each mean “to but excluding” and all references to “day”
        or “days” shall mean calendar days unless designated as “Business
        Days”. 

	 
	 1.5      	 Headings. 

	 
	 	 The captions in this Agreement are for
        convenience of reference only and shall not be used to define or interpret
        any of the terms or provisions hereof. 

	 
	 1.6      	 Invalidity of Provisions. 

	 
	 	 Nothing contained in this Agreement shall
        be construed so as to require the commission of any act contrary to law,
        and if any provision of this Agreement is held to be invalid or illegal
        under any material statute, law, ordinance, order or regulation, such
        provision shall be curtailed and limited only to the extent necessary
        to bring it within the legal requirements and such curtailment or limitation
        shall not affect the validity of the remainder of this Agreement or any
        other provisions hereof. 

	 
	 1.7      	 Applicable Law. 

	 
	 	 This Agreement and all other documents
        provided for herein and the rights and obligations of the parties thereto
        shall be governed by and construed and enforced in accordance with the
        laws of the Province of British Columbia and the laws of Canada applicable
        therein and the parties hereto attorn to the jurisdiction of the courts
        of the Province of British Columbia. 

- 4 - 

 ARTICLE 2

  INDEMNITY

	 2.1      	 Indemnity. 

	 
	 	 In consideration of the premises and the sum of
        $1,750,000.00, the receipt and sufficiency of which is hereby acknowledged,
        the Resource Company hereby indemnifies and holds harmless each of the
        Indemnified Parties from and against any and all Losses based upon, arising
        out of, or otherwise in connection with or as a result of any Claims.
      

	 
	 2.2      	 Rights of Wilshire. 

	 
	 	 The rights, powers and remedies given to Wilshire
        in this Agreement are in lieu of any other rights, powers, defences and
        remedies given to Wilshire by virtue of any statute or rule of law or
        agreement other than as specifically set out in any other agreement between
        Wilshire and the Resource Company. Any forbearance or failure to exercise,
        and any delay by Wilshire in exercising, any right, power or remedy hereunder
        shall not impair any such right, power or remedy or be construed to be
        a waiver thereof, nor shall it preclude the further exercise of any such
        right, power or remedy. 

 ARTICLE 3 

  PAYMENT UNDER INDEMNITY

	 3.1      	 Demand by Wilshire. 
	 
	 	 In the event of any Claims against Wilshire pursuant
        to the Management Services Agreement and any Indemnified Party suffers
        or incurs any Losses, Wilshire shall provide the Resource Company with
        written notice (the “Demand Notice”) of its obligation
        to indemnify the applicable Indemnified Party for any and all such Losses
        (subject to the limitation of liability in Section 3.2), which Demand
        Notice shall specify the aggregate sum of the Losses. No Demand Notice
        shall be delivered to the Resource Company unless prior to the date of
        the Demand Notice the Resource Company has made or caused to be made the
        Advance (as defined in the Funding Agreement) pursuant to the Funding
        Agreement. Such amount shall be payable by the Resource Company to the
        applicable Indemnified Party on account of such Claims (the “Payable
        Obligations”) in accordance with the terms hereof. 

	 
	 3.2      	 Limitation of Liability. 

	 
	 	 Notwithstanding any other term hereof, the parties
        hereby acknowledge and agree that the liability of the Resource Company
        to indemnify the Indemnified Parties shall at any time be limited to the
        aggregate un-repaid amount of the Advance (as defined in the Funding Agreement
        and subject to the limitation of liability contained therein), if any,
        and interest thereon, which remains outstanding as of the date of the
        Demand Notice (the “Wilshire Indebtedness”) from Wilshire
        to the Resource Company pursuant to the terms of the Funding Agreement.
      

 - 5 - 

	 3.3      	 Payment of Payable Obligations. 

	 
	 	 Subject to Section 3.2, any amount to be paid by
        the Resource Company pursuant to a Demand Notice shall be paid by the
        Resource Company exclusively by way of applying such Payable Obligations
        against the Wilshire Indebtedness under the Funding Agreement and the
        Resource Company shall have no other liability or obligation in respect
        of or in connection with any amount to be paid to Wilshire pursuant to
        a Demand Notice or this Agreement. Upon receipt of any Demand Notice,
        the Wilshire Indebtedness to the extent of the Payable Obligations specified
        in the Demand Notice shall be due and payable in full as of the date of
        the Demand Notice and the Resource Company agrees to provide Wilshire
        with written confirmation that the Payable Obligations specified in the
        Demand Notice have been applied to reduce the Wilshire Indebtedness and
        that Wilshire shall be released from its obligations to repay any such
        amounts to the Resource Company under the Funding Agreement. Accordingly,
        the Resource Company agrees that it shall record any such payment hereunder
        on the promissory note evidencing the Wilshire Indebtedness under the
        Funding Agreement. If within ten (10) business days of confirmed receipt
        of a Demand Notice by the Resource Company, the Resource Company has not
        provided Wilshire with a written confirmation, Wilshire shall be entitled
        to rely on such Payable Obligations having been applied by the Resource
        Company and shall not be required to take any further action to evidence
        such reduction in the Wilshire Indebtedness and the Resource Company hereby
        acknowledges that the presentation of a Demand Notice shall be a full
        and complete defence to any demand being made by the Resource Company
        for payment of that portion of the Wilshire Indebtedness equal to the
        Payable Obligations. Subject to Section 3, if Wilshire shall demand payment
        by the Resource Company hereunder and there shall thereafter remain any
        amounts owing by Wilshire to the Resource Company under the Funding Agreement,
        after the Resource Company has applied the Payable Obligations to reduce
        the Wilshire Indebtedness, Wilshire shall remain liable to the Resource
        Company for such amount. 

 ARTICLE 4 

  REPRESENTATIONS AND WARRANTIES

	 4.1      	 Representations and Warranties of Resource
        Company. 

	 
	 	 The Resource Company hereby represents
        and warrants to Wilshire as follows and acknowledges that Wilshire is
        relying on such representations and warranties in entering into this Agreement
        that: 

	 
	 	 (a)     
      
	 the Resource Company is duly organized, validly
        existing and in good standing under the laws of the jurisdiction of its
        incorporation; 

	 
	 	 (b)      
	 the Resource Company has full power, authority and
        legal right to execute, deliver and perform its obligations contained
        in this Agreement and has taken all necessary corporate action to authorize
        the execution, delivery and performance of this Agreement; and 

 - 6 - 

	 	 (c)     
      
	 this Agreement has been duly executed and delivered
        by the Resource Company and this Agreement constitutes the legal, valid
        and binding obligations of the Resource Company, enforceable against the
        Resource Company in accordance with its terms, subject to bankruptcy,
        insolvency, arrangement and other laws generally affecting the enforceability
        of creditors’ rights (other than those pertaining to fraudulent
        assignments and preferences) and the availability, in the discretion of
        a court of competent jurisdiction, of equitable remedies. 

	 
	 4.2      	 Representations and Warranties of Wilshire.
      

	 
	 	 Wilshire hereby represents and warrants
        to the Resource Company as follows and acknowledges that the Resource
        Company is relying on such representations and warranties in entering
        into this Agreement that: 

	 
	 	 (a)      
	 Wilshire is duly organized, validly existing and
        in good standing under the laws of the jurisdiction of its incorporation;
      

	 
	 	 (b)      
	 Wilshire has full power, authority and legal right
        to execute, deliver and perform its obligations contained in this Agreement
        and has taken all necessary corporate action to authorize the execution,
        delivery and performance of this Agreement; and 

	 
	 	 (c)      
	 this Agreement has been duly executed and delivered
        by Wilshire and this Agreement constitutes the legal, valid and binding
        obligations of Wilshire, enforceable against Wilshire in accordance with
        its terms, subject to bankruptcy, insolvency, arrangement and other laws
        generally affecting the enforceability of creditors’ rights (other
        than those pertaining to fraudulent assignments and preferences) and the
        availability, in the discretion of a court of competent jurisdiction,
        of equitable remedies. 

 ARTICLE 5

  NOTICE

	 5.1      	 Notice. 
	 
	 	 Except as otherwise expressly provided herein, any
        notice, request, demand or other communication provided for hereunder
        or under any of the other agreements entered into in connection herewith,
        to be given shall be in writing and shall be personally served by courier
        or messenger or sent by facsimile transmission and shall be deemed to
        have been given when, personally served, or when transmitted by facsimile
        (as verified by transmission report), as the case may be. The addresses
        of the parties hereto (until notice of a change thereof is served) shall
        be as follows: 

 - 7 - 

	 	 (a)  	 In the case of notice to the Resource Company addressed
      to it as follows:  
	 	  	 
	 	  	 Gibraltar Mines Ltd.  
	 	  	 
	 	  	 1020 – 800 W. Pender St.  
	 	  	 Vancouver, British Columbia  
	 	  	 V6V 2V6  
	 	  	 
	 	  	 Attention:  President  
	 	  	 Facsimile No.: (604) 681-2741  
	 	  	 
	 	  	 With a copy to:  
	 	  	 
	 	  	 Lang Michener LLP  
	 	  	 1500 Royal Centre  
	 	  	 P.O. Box 11117  
	 	  	 1055 West Georgia Street  
	 	  	 Vancouver, British Columbia  
	 	  	 V6E 4N7  
	 	  	 
	 	  	 Attention: Bernard J. Zinkhofer  
	 	  	 Fax: (604) 893-2395  
	 	  	 
	 	 (b)  	 In the case of notice to Wilshire, addressed to
      it as follows:  
	 	  	 
	 	  	 Wilshire Financial Services Inc.  
	 	  	 
	 	  	 Suite 920, 1040 West Georgia Street  
	 	  	 Vancouver, British Columbia  
	 	  	 V6E 4H1  
	 	  	 
	 	  	 Attention: Robert C. Strother  
	 	  	 Fax No.: (604) 669-9485  
	 	  	 
	 	  	 And:  
	 	  	 
	 	  	 Michael Simonetta  
	 	  	 Fax: (416) 920-1947  

 ARTICLE 6 

  GENERAL

	 6.1      	 Termination. 
	 
	 	 This Agreement shall automatically terminate on
        the earlier of: (i) the termination of the Management Services Agreement
        (provided that no Claims have been made on Wilshire 

 - 8 - 

	 	 in connection therewith); or (ii) repayment in full
        of all amounts outstanding under the Funding Agreement. 

	 
	 6.2      	 Further Assurances. 

	 
	 	 At any time or from time to time upon request of
        Wilshire, the Resource Company shall execute and deliver such further
        documents and do such other acts and things as Wilshire may reasonably
        request in order to effect fully the purposes of this Agreement and to
        provide for the payment and performance of the obligations of the Resource
        Company in accordance with the terms of this Agreement. 

	 
	 6.3      	 Counterparts. 

	 
	 	 This Agreement may be executed in any number of
        counterparts, each of which when so executed and delivered shall be deemed
        to be an original and all of which taken together shall constitute one
        instrument. Delivery of an executed counterpart of this Agreement by facsimile
        shall be equally effective as delivery of a manually executed counterpart
        thereof. Any party delivering an executed counterpart by facsimile shall
        also deliver a manually executed counterpart of this Agreement, but failure
        to do so shall not affect the validity, enforceability, or binding effect
        hereof. 

	 
	 6.4      	 Delays. 

	 
	 	 No failure or delay on the part of any party in
        exercising any power or right hereunder shall operate as a waiver thereof,
        nor shall any single or partial exercise of any such right or power preclude
        any other or further exercise thereof or the exercise of any other right
        or power hereunder. No modification or waiver of any provision of this
        Agreement nor consent to any departure by any party therefrom shall in
        any event be effective unless the same shall be in writing and then such
        waiver or consent shall be effective only in the specific instance and
        for the purpose for which given. No notice to or demand on any party in
        any case shall entitle any such party to any other or further notice or
        demand in similar or other circumstances. 

	 
	 6.5      	 Time. 

	 
	 	 Time shall be of the essence hereof. 

	 
	 6.6      	 Entire Agreement. 

	 
	 	 This Agreement supersedes and cancels all prior
        negotiations and understandings between the parties hereto, and contains
        all of the terms, conditions and agreements of the parties to this Agreement
        with respect to the transactions contemplated herein. No modification
        of this Agreement shall be valid or binding unless in writing and executed
        by both parties to this Agreement. 

 - 9 - 

	 6.7      	 Enurement. 

	 
	 	 This Agreement shall be binding upon and enure to
        the benefit of Wilshire and the Resource Company and their respective
        successors and assigns. 

	 
	 6.8      	 Assignment. 

	 
	 	 This Agreement may not be assigned by either party
        hereto without the prior written consent of the other party hereto, which
        consent may not be unreasonably withheld. 

 [REST OF PAGE INTENTIONALLY LEFT BLANK]

 - 10 - 

 IN WITNESS WHEREOF, the parties hereto have caused
  this Agreement to be executed by their respective officers as of the date written
  above. 

	 	 GIBRALTAR MINES LTD.  
	 	 	 
	 	 	 
	 	By:  	  
	 	 	 
	 	 	 
	 	 WILSHIRE FINANCIAL SERVICES INC. 
    
	 	 	 
	 	 	 
	 	By:

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