Document:

Exhibit
10.7

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT is made as of ____________, 2012, by and among Lenco Mobile Inc. (the “Company”), a corporation
organized under the laws of the State of Delaware, with its principal offices at 2025 First Avenue, Suite 320, Seattle, WA 98121
the purchaser whose name and address is set forth on the signature page hereof (the “Purchaser”).

 

IN CONSIDERATION of the
mutual covenants contained in this Agreement, the Company and the Purchaser agree as follows:

 

1.Authorization
of Sale of the Shares. Subject to the terms and conditions of this Agreement, the Company has authorized the sale of up to
100,000 shares (the “Shares”) of Series A Convertible Preferred Stock, par value $0.001 per share, of
the Company having the rights, preferences and privileges set forth in the Series A Convertible Preferred Stock certificate of
designation (which was filed with the Delaware Secretary of State on September 22, 2010) (the “Certificate of Designation”)
and the certificate of amendment to the Certificate of Designation (which was filed with the Delaware Secretary of State on December
23, 2011) (the “Certificate of Amendment”), each of which are attached hereto as Exhibit A.

 

Agreement to Sell
and Purchase the Shares. At the Closing (as defined in Section 0

), the Company will sell to the Purchaser, and the Purchaser will buy from the Company, upon the terms
and conditions hereinafter set forth, the number of Shares (at the purchase price) shown below.

 

	
         

        Number of Shares

        to Be Purchased
	 	
         

        Price Per Share

        In Dollars
	 	
         

        Aggregate

        Price

	 	 	$__________	 	$________

 

The Company proposes
to enter into this same form of purchase agreement with certain other investors (the “Other Purchasers”)
and expects to complete sales of the Shares to them. The Purchaser and the Other Purchasers are hereinafter sometimes collectively
referred to as the “Purchasers,” and this Agreement and the agreements executed by the Other Purchasers
are hereinafter sometimes collectively referred to as the “Agreements.”

 

2.Closing and
Delivery of the Shares.

 

2.1Closing.
The initial purchase and sale of the Shares shall occur (the “Closing”) as soon as practicable after
the execution of the Agreements by the Company and the Purchasers purchasing Shares at the Closing at the time and date (the “Closing
Date”) and at such location as shall be determined by the Company. The Company will promptly notify the Purchasers
purchasing Shares at the Closing of the date, place and time of the Closing by facsimile transmission or otherwise.

 

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2.2Delivery
of the Shares. At the Closing, the Company shall deliver to the Purchaser (or to its designated representative) one or
more stock certificates registered in the name of the Purchaser, or in such nominee name(s) as designated by the
Purchaser in writing, representing the number of Shares set forth in Section 0 above and bearing the legend specified in
Section 4.7 hereof referring to the fact that the Shares were sold in reliance upon the exemption from registration
under the Securities Act of 1933, as amended (the “Securities Act”) provided by
Section 4(2) thereof and Rule 506 thereunder. The name(s) in which the stock certificates are to be registered
are set forth in the Stock Certificate Questionnaire attached hereto as Exhibit B.

 

2.3Conditions
to Closing.

 

2.3.1The Company’s
obligation to complete the purchase and sale of the Shares and deliver such stock certificate(s)  to the Purchaser at the
Closing shall be subject to the following conditions, any one or more of which may be waived by the Company: (i) receipt by
the Company of same-day funds in the full amount of the purchase price for the Shares being purchased hereunder; (ii) completion
of the purchases and sales under the Agreements with all of the Other Purchasers; and (iii) the accuracy of the representations
and warranties made by the Purchaser and the fulfillment of those undertakings of the Purchaser to be fulfilled prior to the Closing;
and (iv) receipt by the Company of a completed version of Exhibit B and Exhibit C-1 or C-2
(as applicable) attached hereto.

 

2.3.2The Purchaser’s
obligation to accept delivery of such stock certificate(s)  and to pay for the Shares evidenced thereby shall be subject to
the following conditions: (i) the accuracy in all material respects of the representations and warranties made by the Company
herein and the fulfillment in all material respects of those undertakings of the Company to be fulfilled prior to Closing, and
(ii) receipt of a certificate signed by the Secretary of the Company to which is attached a true, complete and correct copy
of each of the amended and restated certificate of incorporation of the Company, the amended and restated bylaws of the Company
and certain resolutions of the Board of Directors of the Company, to the effect that: (1) no document with respect to any
amendment to the certificate of incorporation of the Company has been filed in the office of the Delaware Secretary of State since,
and no action has been taken or, to the best knowledge of the Secretary of the Company, is contemplated by the Board of Directors
or the stockholders of the Company, for the purpose of effecting any such amendment or the dissolution, merger or consolidation
of the Company, (2) no proposal for any amendment, repeal or other modification to the amended and restated bylaws of the
Company has been taken or is currently pending before the Board of Directors or stockholders of the Company and (3) the resolutions
of the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated by this Agreement have not been altered, amended or superseded and remain in full force and effect
as of the date hereof and the Closing Date. The Purchaser’s obligations hereunder are expressly not conditioned on the purchase
by any or all of the Other Purchasers of the Shares that they have agreed to purchase from the Company.

 

3.Representations,
Warranties and Covenants of the Company. Except as otherwise described in the Company’s periodic reports on Forms 10-Q
and 10-K and in the Company’s current reports on Form 8-K as filed by the Company with the Securities and Exchange Commission
(the “SEC”) since December 31, 2010 (the “SEC Documents”) and the Company’s
Private Placement Memorandum dated September 21, 2011 (collectively, with the SEC Documents, including the documents incorporated
by reference therein, the “Company Information”), which qualify the following representations and warranties
in their entirety, the Company hereby represents and warrants to, and covenants with, the Purchaser, as follows:

 

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3.1Organization
and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation and the Company is qualified to do business as a foreign corporation in each jurisdiction in which
qualification is required, except where failure to so qualify would not have a Material Adverse Effect (as defined herein) on the
Company. All of the subsidiaries of the Company (the “Subsidiaries”) are listed on Exhibit 21.1
to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 (the “Form 10-K”)
along with each subsidiary’s jurisdiction of incorporation. Each Subsidiary is duly incorporated, validly existing and in
good standing under the laws of its jurisdiction of incorporation and is qualified to do business as a foreign corporation in each
jurisdiction in which qualification is required, except where failure to so qualify would not have a material adverse effect on
the condition (financial or otherwise), assets, properties, business, prospects or results of operations of the Company and the
Subsidiaries, taken as a whole on a consolidated basis, or materially and adversely impair the Company’s ability to perform
its obligations under this Agreement (a “Material Adverse Effect”).

 

3.2Authorized
Capital Stock. Except as disclosed in Schedule 4.2 hereto, the Company had authorized, issued and outstanding capital
stock as set forth in Schedule 4.2 as of the date set forth therein. The issued and outstanding shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”) have been duly authorized and validly issued,
are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and were not issued
in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities. Except as disclosed
in Schedule 4.2, the Company does not have outstanding any options to purchase, or any preemptive rights or other rights to
subscribe for or to purchase, any securities or obligations convertible into or exchangeable or exercisable for, or any contracts
or commitments to issue or sell, shares of its capital stock. Except as set forth on Schedule 4.2 hereto, and except for customary
adjustments as a result of stock dividends, stock splits, combinations of shares, reorganizations, recapitalizations, reclassifications
or other similar events, there are no anti-dilution or price adjustment provisions contained in any security issued by the Company
(or in any agreement providing rights to security holders) and the issuance and sale of Common Stock or other securities pursuant
to any provision of this Agreement will not give rise to any preemptive rights or rights of first refusal, co-sale rights or any
other similar rights on behalf of any person or result in the triggering of any anti-dilution or other similar rights. With respect
to each Subsidiary, (i) the Company owns 100% of the Subsidiary’s capital stock (except for directors’ qualifying
shares), (ii) all the issued and outstanding shares of the Subsidiary’s capital stock have been duly authorized and
validly issued, are fully paid and nonassessable, have been issued in compliance with applicable federal and state securities laws,
were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and
(iii) there are no outstanding options to purchase, or any preemptive rights or other rights to subscribe for or to purchase,
any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of the Subsidiary’s
capital stock or any such options, rights, convertible securities or obligations.

 

 

 

 

 

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3.3Issuance, Sale
and Delivery of the Shares. The Shares have been duly authorized and, when issued, delivered and paid for in the manner set
forth in this Agreement, will be duly authorized, validly issued, fully paid and nonassessable. No stockholder of the Company has
any right to require the Company to register the sale of any shares owned by such stockholder under the Securities Act in the Registration
Statement. No further approval or authority of the stockholders or the Board of Directors of the Company will be required for the
issuance and sale of the Shares to be sold by the Company as contemplated herein.

 

3.4Due Execution,
Delivery and Performance. The Company has full legal right, corporate power and authority to enter into the Agreements and
perform the transactions contemplated hereby and thereby. The Agreements have been duly authorized, executed and delivered by the
Company. The making and performance of the Agreements by the Company and the consummation of the transactions herein and therein
contemplated will not violate any provision of the organizational documents of the Company and will not result in the creation
of any lien, charge, security interest or encumbrance upon any assets of the Company pursuant to the terms or provisions of, or
will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of
time or both, a default under any agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument
to which the Company or any Subsidiary is a party or by which the Company or its properties, or any Subsidiary or such Subsidiary’s
properties, may be bound or affected and in each case which would have a Material Adverse Effect or, to the Company’s knowledge
(which, as used herein, in each instance shall mean the actual knowledge of the Company’s chief executive officer or chief
financial officer), any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory
body, administrative agency or other governmental body applicable to the Company or any Subsidiary or any of their respective properties.
No consent, approval, authorization or other order of any court, regulatory body, administrative agency or other governmental body
is required for the execution and delivery of this Agreement or the consummation of the transactions contemplated by this Agreement,
except for compliance with the Blue Sky laws and federal securities laws applicable to the offering of the Shares. Upon their execution
and delivery, and assuming the valid execution thereof by the respective Purchasers, the Agreements will constitute valid and binding
obligations of the Company, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

3.5Offering Materials.
The Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the
SEC since December 31, 2010, pursuant to the reporting requirements of the Securities Exchange Act of 1934 (the “Exchange
Act”). True and complete copies of the SEC Documents have been posted on the SEC’s EDGAR website. As of their
respective dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act or the Securities
Act, as the case may be, and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents. The SEC
Documents, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

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3.6Accountants.
Peterson Sullivan LLP are the Company’s independent accountants as reported in the Company’s Form 8-K filed March 1,
2012 and as required by the Securities Act and the rules and regulations promulgated thereunder (the “Rules and Regulations”).

 

3.7Contracts.
All agreements that were required to be filed as exhibits to the SEC Documents under Item 601 of Regulation S-K (collectively,
the “Material Agreements”) to which the Company or any Subsidiary of the Company is a party, or the property
or assets of the Company or any Subsidiary of the Company are subject, have been filed as exhibits to the SEC Documents. All Material
Agreements are valid and enforceable against the Company or one of its Subsidiaries, as the case may be, in accordance with their
respective terms, except (i) as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or moratorium
or similar laws affecting creditors’ and contracting parties’ rights generally, and (ii) as enforceability may
be subject to general principles of equity and except as rights to indemnity and contribution may be limited by state or federal
securities laws or public policy underlying such laws. Neither the Company nor any of its Subsidiaries is in breach of or default
under any of the Material Agreements, and to the Company’s knowledge, no other party to a Material Agreement is in breach
of or default under such Material Agreement, except in each case, for such breaches or defaults as would not reasonably be expected
to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received a notice of termination nor is
the Company otherwise aware of any threats to terminate any of the Material Agreements.

 

3.8No Defaults.
Except as disclosed in the Company Information as to defaults, violations and breaches which individually or in the aggregate would
not be expected to have a Material Adverse Effect, the Company is not in violation or default of any provision of its certificate
of incorporation or bylaws, or other organizational documents, or in breach of or default with respect to any provision of any
agreement, judgment, decree, order, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to
which it is a party or by which it or any of its properties are bound; and there does not exist any state of fact which, with notice
or lapse of time or both, would constitute an event of default on the part of the Company as defined in such documents, except
such defaults which individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.

 

3.9No Actions.
There are no legal or governmental actions, suits or proceedings pending or, to the Company’s knowledge, threatened to which
the Company or any Subsidiary is or may be a party or of which property owned or leased by the Company or any Subsidiary is or
may be the subject, or related to environmental or discrimination matters, or instituted by the SEC, The NASDAQ Stock Market LLC,
any state securities commission or other governmental or regulatory agency, which actions, suits or proceedings, individually or
in the aggregate, might prevent or might reasonably be expected to materially and adversely affect the transactions contemplated
by this Agreement or result in a material adverse change in the condition (financial or otherwise), assets, properties, business,
prospects or results of operations of the Company (a “Material Adverse Change”); and no labor disturbance
by the employees of the Company or any Subsidiary exists or, to the Company’s knowledge, is imminent which might reasonably
be expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary is a party to or subject to the provisions
of any material injunction, judgment, decree or order of any court, regulatory body, administrative agency or other governmental
body.

 

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3.10Properties.
Each of the Company and its Subsidiaries has good and marketable title to all the properties and assets reflected as owned by it
in the consolidated financial statements included in the SEC Documents, subject to no lien, mortgage, pledge, charge or encumbrance
of any kind except (i) those, if any, reflected in such consolidated financial statements (including the notes thereto), or
(ii) those which are not material in amount and do not adversely affect the use made and proposed to be made of such property
by the Company. Such leased properties are held under valid and binding leases, with such exceptions as are not materially significant
in relation to its business. The Company or a Subsidiary owns or leases all such properties as are necessary to its operations
as now conducted.

 

3.11No Material
Change. Since September 30, 2011 and except as contemplated by or disclosed in the Company Information, neither the Company
nor any Subsidiary has incurred any material liabilities or obligations, indirect, or contingent, or entered into any material
verbal or written agreement or other transaction which is not in the ordinary course of business or which could reasonably be expected
to result in a material reduction in the future earnings of the Company; (ii) neither the Company nor any Subsidiary has sustained
any material loss or interference with its respective businesses or properties from fire, flood, windstorm, accident or other calamity
not covered by insurance; (iii) the Company has not paid or declared any dividends or other distributions with respect to
its capital stock and neither the Company nor any Subsidiary is in default in the payment of principal or interest on any outstanding
debt obligations; (iv) there has not been any change in the capital stock of the Company other than the sale of the Shares
hereunder and shares or options issued pursuant to employee equity incentive plans or purchase plans approved by the Company’s
Board of Directors, or indebtedness material to the Company (other than in the ordinary course of business); and (v) there
has not been any Material Adverse Change.

 

3.12Intellectual
Property. The Company or a Subsidiary owns or possesses adequate rights to use the inventions, patent applications, patents,
patent rights, trademarks (both registered and unregistered), service marks, tradenames, copyrights, trade secrets and know-how
necessary for the conduct of the Company’s and its Subsidiaries’ businesses as currently conducted (collectively, the
“Intellectual Property”), except where the failure to currently own or possess such Intellectual Property
would not have a Material Adverse Effect. Neither the Company nor any Subsidiary has received any notice of, and has no knowledge
of, any infringement of or conflict with asserted rights of others with respect to any Intellectual Property which, singly or in
the aggregate, if the subject of an unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse
Effect. To the Company’s knowledge, none of the patent rights owned or licensed by the Company or any Subsidiary are unenforceable
or invalid.

 

3.13Compliance.
The Company has not been advised, and has no reason to believe, that it is not conducting its business in compliance with all applicable
laws, rules and regulations of the jurisdictions in which it is conducting business, including, without limitation, all applicable
local, state and federal environmental laws and regulations; except where failure to be so in compliance would not have a Material
Adverse Effect.

 

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3.14Taxes.
The Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and the Company has no knowledge of a tax deficiency which has been or might be asserted or threatened against
it which could have a Material Adverse Effect.

 

3.15Transfer Taxes.
On the Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with
the sale and transfer of the Shares to be sold to the Purchaser hereunder will be, or will have been, fully paid or provided for
by the Company and all laws imposing such taxes will be or will have been fully complied with.

 

3.16Accounting
Controls. Except as disclosed in the Company Information, the Company maintains a system of accounting controls sufficient
to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific
authorization, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles as applied in the United States and to maintain accountability for assets, (iii) access
to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

 

3.17Investment
Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as
amended.

 

3.18No General
Solicitation; Offering Materials. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the
Securities Act) in connection with the offer or sale of the Shares. The Company has not distributed and will not distribute prior
to the Closing Date any offering material in connection with the offering and sale of the Shares other than the Private Placement
Memorandum or any amendment or supplement thereto. The Company has not in the past nor will it hereafter take any action to sell,
offer for sale or solicit offers to buy any securities of the Company which would bring the offer, issuance or sale of the Shares,
as contemplated by this Agreement, within the provisions of Section 5 of the Securities Act, unless such offer, issuance or
sale was or shall be within the exemptions of Section 4 of the Securities Act.

 

3.19Insurance.
The Company maintains insurance of the types and in the amounts that the Company reasonably believes is adequate for its business,
including, but not limited to, insurance covering all real and personal property owned or leased by the Company against theft,
damage, destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies, all of
which insurance is in full force and effect.

 

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3.20Corrupt Practices.
Neither the Company nor, to the knowledge of the Company, any agent or other person acting on behalf of the Company, have (i) directly
or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees
or to foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution
made by the Company or made by any person acting on its behalf and of which the Company is aware in violation of law, or (iv) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

3.21Transactions
with Affiliates. Except as disclosed in the Company Information, none of the officers or directors of the Company and, to the
Company’s knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any
Subsidiary (other than as holders of stock options and/or warrants, and for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Company’s
knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner.

 

3.22Employee Relations.
The Company is not involved in any union labor dispute, nor, to the Company’s knowledge, is any such dispute threatened.
The Company is not a party to a collective bargaining agreement, and the Company believes that its relations with its employees
are good. No executive officer (as defined in Rule 501(1) of the Securities Act) of the Company has notified the Company that
such officer intends to leave the employ of the Company or otherwise terminate such officer’s employment with the Company.
To the Company’s knowledge, no employee of the Company, as a consequence of his employment by the Company is, or is now expected
to be, in violation of any material term of any agreement, covenant or contract (including any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive
covenant with any previous employer), and the continued employment of each such employee by the Company will not subject the Company
to any liability with respect to any of the foregoing matters.

 

3.23Application
of Takeover Protection. The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby will not impose any restriction on any Purchaser, or create in any party (including any current stockholder of the Company)
any rights, under any share acquisition, business combination, poison pill (including any distribution under a rights agreement),
or other similar anti-takeover provisions under the Company’s charter documents or the laws of its state of incorporation.

 

3.24No Integrated
or Aggregated Offering. Neither the Company, nor any person acting on its behalf, has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offering of Shares
contemplated by this Agreement to be integrated with prior offerings by the Company for purposes of the Securities Act.

 

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4.Representations,
Warranties and Covenants of the Purchaser. The Purchaser hereby represents and warrants to, and covenants with, the Company,
effective as of the Closing Date, as follows:

 

4.1Investment
Representations and Covenants. The Purchaser represents and warrants to, and covenants with, the Company that:
(i) the Purchaser is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with
respect to investments in securities representing an investment decision like that involved in the purchase of the Shares,
including investments in securities issued by the Company, and has requested, received, reviewed and considered all
information it deems relevant in making an informed decision to purchase the Shares; (ii) the Purchaser is acquiring the
number of Shares set forth in Section 0 above in the ordinary course of its business and for its own account for investment
only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other
persons regarding the distribution of such Shares within the meaning of Section 2(11) of the Securities Act;
(iii) the Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares except in compliance with the
Securities Act and the Rules and Regulations promulgated thereunder; (iv) the Purchaser has completed or caused to be
completed the Stock Certificate Questionnaire attached hereto as Exhibit B and the Certificate attached hereto as
Exhibit C-1 or C-2, as applicable, and the answers thereto are true and correct as of the date hereof; (v) the
Purchaser has, in connection with its decision to purchase the number of Shares set forth in Section 0 above, relied solely
upon the Company Information and the representations and warranties of the Company contained herein; (vi) the Purchaser
understands that neither the Company nor any other person is under any obligation to register the resale of the Shares under
the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder; and
(vii) the Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D
promulgated under the Securities Act.

 

4.2No General
Solicitation. The Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over the television or radio or presented
at any seminar or any other general solicitation or general advertisement. Prior to the time that the Purchaser was first contacted
by the Company, such Purchaser had a pre-existing and substantial relationship with the Company.

 

4.3Authorization;
Validity of Agreement. The Purchaser further represents and warrants to, and covenants with, the Company that (i) the
Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (ii) upon
the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation of the Purchaser enforceable
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be
subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

 

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4.4Requirements
of Foreign Jurisdictions. The Purchaser acknowledges, represents and agrees that no action has been or will be taken in any
jurisdiction outside the United States by the Company that would permit an offering of the Shares, or possession or distribution
of offering materials in connection with the issue of the Shares, in any jurisdiction outside the United States where action for
that purpose is required. Each Purchaser outside the United States will comply with all applicable laws and regulations in each
foreign jurisdiction in which it purchases, offers, sells or delivers the Shares or has in its possession or distributes any offering
material, in all cases at its own expense.

 

4.5Restriction
on Short Sales and Hedging. Neither the Purchaser, directly or indirectly, nor any person acting on behalf of or pursuant to
any understanding with the Purchaser, has engaged in any transactions in the securities of the Company (including, without limitation,
any Short Sales involving any of the Company’s securities) since the time that such Purchaser was first contacted by the
Company or any other person regarding an investment in the Company. The Purchaser covenants that neither it nor any person acting
on its behalf or pursuant to any understanding with the Purchaser will engage, directly or indirectly, in any transactions in the
securities of the Company (including Short Sales) prior to the time the transactions contemplated by this Agreement are publicly
disclosed. “Short Sales” include, without limitation, all “short sales” as defined in Rule
200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts,
options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and
other transactions through non-U.S. broker-dealers or foreign regulated brokers.

 

4.6Compliance
with Non-Disclosure Agreement. The Purchaser has fully complied with and has not breached any of its covenants or representations
in any non-disclosure agreement, confidentiality agreement or like agreement (collectively, an “NDA”) entered
into between the Purchaser and the Company or any of the Company’s affiliates. Purchaser acknowledges and agrees that any
such NDA shall continue in full force and effect following the date of this Agreement and the Closing in accordance with the terms
of such NDA.

 

4.7No Legal, Tax
or Investment Advice. The Purchaser understands that nothing in this Agreement or any other materials presented to the Purchaser
in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Purchaser has consulted
such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its
purchase of Shares.

 

4.8Restrictive
Legend. The Purchaser understands that the Shares and any shares of Common Stock into which the Shares are convertible may
bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the
certificates for the Shares and shares of Common Stock into which the Shares are convertible):

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL OR
OTHER EVIDENCE, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY AND ITS COUNSEL, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT.” 

 

    	10

    	 

    

5.Survival of
Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all covenants,
agreements, representations and warranties made by the Company and the Purchaser herein and in the certificates for the Shares
delivered pursuant hereto shall survive the execution of this Agreement, the delivery to the Purchaser of the Shares being purchased
and the payment therefor.

 

6.Broker’s
Fee. Each of the parties hereto hereby represents that, on the basis of any actions and agreements by it, there are no brokers
or finders entitled to compensation in connection with the sale of the Shares to the Purchaser.

 

7.Notices.
All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed by first-class registered
or certified airmail, facsimile (with receipt confirmed by telephone) or nationally recognized overnight express courier postage
prepaid, and shall be deemed given when so mailed and shall be delivered as addressed as follows:

 

7.1.1if to the
Company, to:

 

	 	Lenco Mobile Inc.
	 	2025 First Avenue, Suite 320
	 	Seattle, WA 98121
	 	Attention: CFO
	 	 
	 	With copy to:
	 	Lenco Mobile Inc.
	 	25 Metro Drive, Suite 210
	 	San Jose, CA 95110
	 	Attention: General Counsel

 

or to such other person at such
other place as the Company shall designate to the Purchaser in writing; and

 

7.1.2if to the
Purchaser, at its address as set forth on the signature page of this Agreement, or at such other address or addresses as may have
been furnished to the Company in writing.

 

8.Changes.
This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and Purchaser.

 

9.Headings.
The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement.

 

    	11

    	 

    

10.Severability.
In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

11.Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving
effect to the principles of conflicts of laws.

 

12.Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed
by each party hereto and delivered to the other parties.

 

13.Independent
Nature of Purchasers’ Obligations and Rights. No Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under the Agreements. Nothing contained herein and no action taken by any Purchaser pursuant
to the Agreements shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group, or are deemed affiliates
(as such term is defined under the Exchange Act) with respect to such obligations or the transactions contemplated by this Agreement
or the other Agreements. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation
the rights arising out of the Agreements, and it shall not be necessary for any other Purchaser to be joined as an additional party
in any proceeding for such purpose.

 

14.Fees and
Expenses. Except as expressly set forth herein to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes
and duties levied in connection with the sale and issuance of their applicable Shares.

 

[SIGNATURES FOLLOW ON THE NEXT PAGE]

 

 

 

 

    	12

    	 

    

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first
above written.

 

	 	LENCO MOBILE INC.	 
	 	 	 	 
	 	By:	/s/ 	 
	 	 	Name: Matthew Harris	 
	 	 	Title: CEO	 
	 	 	 	 

 

	Print or Type:	 
	 	Name of Purchaser
	 	(Individual or Institution):
	 	
         

         

	 	Name of Individual representing
	 	Purchaser (if an Institution):
	 	 
	 	Title of Individual representing
	 	Purchaser (if an Institution):
		
         

	 	Signature by:
	 	Individual Purchaser or Individual
	 	representing Purchaser:
	 	
         

	 	 	 
	 	Address:	 
	 	 	 
	 	Telephone:	 
	 	 	 
	 	Telecopier:	 

 

 

    	13

    	 

    

SCHEDULE 4.2

 

The following is a
summary of Lenco Mobile Inc.’s issued and outstanding equity securities and derivatives outstanding as of the date of the
Agreement:

 

	
        Class
        of Securities
	
        Issued
        and Outstanding
	
        Authorized

	Common Stock	80,478,647	250,000,000
	Series A Convertible Preferred Stock (1)	171,220	207,500
	Series B1 Convertible Preferred Stock (1)	87,715	93,140
	Series B2 Convertible Preferred Stock (1)	58,131	58,131
	Stock Options	57,455,981	N/A
	Common Stock Warrants	2,794,166	N/A
	Promissory Notes Convertible into Common Stock (2)	86,667	N/A

 

		(1)	Each of the Series A Convertible Preferred Stock, Series B1 Convertible Preferred Stock and Series
B2 Convertible Preferred Stock is convertible into the Company’s common stock in accordance with such preferred stock’s
certificate of designation. The total amount of preferred stock that is authorized pursuant to Lenco Mobile Inc.’s certificate
of incorporation is 1,000,000 shares.

 

		(2)	Face value of convertible note is $260,000 and converts at $3.00. Amount is presently in litigation.

 

    	14

    	 

    

SUMMARY INSTRUCTION SHEET FOR PURCHASER

 

(to be read in conjunction with the entire
Securities Purchase Agreement)

 

		A.	Complete the following items ON EACH OF THE TWO COPIES of the Securities Purchase Agreement:

 

		1.	Signature Page: Provide the information regarding the Purchaser requested on the signature page.
The agreement must be executed by an individual authorized to bind the Purchaser.

 

		2.	Exhibit B – Stock Certificate Questionnaire: Provide the information requested by the
Stock Certificate Questionnaire.

 

		3.	Exhibits C-1 and C-2 – Purchaser Certificate: Provide the information requested by the
Certificate for Individual Purchasers or the Certificate for Corporate, Partnership, Trust, Foundation and Joint Purchasers, as
applicable.

 

		B.	Return the properly completed and signed Securities Purchase Agreement signature pages and Exhibits B
and C-1 or C-2 (as applicable) to:

 

Lenco Mobile Inc. 

25 Metro Drive, Suite 210 

San Jose, CA 95110 

Attention: General Counsel 

Facsimile: (408) 824-1398 

Email: rick.ballard@iloopmobile.com

 

		C.	Wire the funds according to the following wiring instructions:

 

Bank Name: Bridge Bank 

Bank Address: 55 Almaden Blvd.,
Suite 100 

ABA number: 121143260 

Account Name: iLoop Mobile, Inc. 

Account Number: 0101082139 

SWIFT: BBFXUS6S

 

 

    	15

    	 

    

 

 

EXHIBIT A

 

CERTIFICATE
OF DESIGNATION AND CERTIFICATE OF AMENDMENT

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	A-1

    	 

    

 

EXHIBIT B

 

STOCK CERTIFICATE QUESTIONNAIRE

 

Pursuant to
Section 2.2 of the Securities Purchase Agreement, please provide us with the following information:

 

	 	1.	
        The exact name that your
        Shares are to be Registered in (this is the name that will appear on your stock certificate(s)). You may use a nominee name if
        appropriate:

         

	 	 	 
	 	2.	
        The relationship between
        the Purchaser of the Shares and the Registered Holder listed in response to item 1 above:

         

	 	 	 
	 	3.	
        The mailing address of
        the Registered Holder listed in response to item 1 above:

         

	 	 	 
	 	4.	
        The Social Security Number
        or Tax Identification Number of the Registered Holder listed in response to item 1 above:

         

 

 

 

 

 

 

 

 

 

    	B-1

    	 

    

 

EXHIBIT C-1

 

CERTIFICATE FOR INDIVIDUAL PURCHASERS

 

If the investor is
an individual Purchaser (or married couple) the Purchaser must complete, date and sign this Certificate.

 

CERTIFICATE

 

I certify that the
representations and responses below are true and accurate:

 

In order for the Company
to offer and sell the Securities in conformance with state and federal securities laws, the following information must be obtained
regarding your investor status. Please initial each category applicable to you as an investor in the Company.

 

____(1)A natural
person whose net worth (excluding the value of any equity in such person’s primary residence), either individually or jointly
with such person’s spouse exceeds $1,000,000.

 

____(2)A natural
person who had an income in excess of $200,000, or joint income with the person’s spouse in excess of $300,000, in 2009 and
2010, and reasonably expects to have individual income reaching the same level in 2011.

 

____(3)An executive
officer or director of the Company.

 

Dated: ___________________

 

Name(s) of Purchaser

 

	 	 
	Signature	 
	 	 
	 	 
	Signature	 

 

EXHIBIT C-1

    	1

    	 

    

 

EXHIBIT C-2

 

CERTIFICATE FOR CORPORATE, PARTNERSHIP,

 

TRUST, FOUNDATION AND JOINT PURCHASERS

 

If the investor is
a corporation, partnership, trust, pension plan, foundation, joint purchasers (other than a married couple) or other entity, an
authorized officer, partner, or trustee must complete, date and sign this Certificate.

 

CERTIFICATE

 

The undersigned certifies
that the representations and responses below are true and accurate.

 

(a)The person signing
on behalf of the undersigned has the authority to exercise and deliver the Securities Purchase Agreement on behalf of the Purchaser,
and to take other sections with respect thereto.

 

(b)Indicate the
form of entity of the undersigned:

 

________ Limited Partnership

 

________ General Partnership

 

________ Corporation

 

________ Revocable Trust (identify
each grantor and indicate under what circumstances the trust is revocable by the grantor: _______________________

 

 

 

 

 

 

 

 

____________ (Continue on a separate
piece of paper, if necessary.)

 

________ Other Type of Trust
(indicate type of trust and, for trusts other than pension trust, name the guarantors and beneficiaries:__________

 

 

 

 

 

 

 

 

EXHIBIT C-2

    	1

    	 

    

_________. (Continue on a separate
piece of paper, if necessary.)

 

________ Other form of organization
(indicate form of organization (_______)

 

(c)In order for
the Company to offer and sell the Securities in conformance with state and federal securities laws, the following information must
be obtained regarding your investor sums. Please initial each category applicable to you as an investor in the Company.

 

____ 1. A bank as defined
in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A)
of the Securities Act whether acting in its individual or fiduciary capacity;

 

____ 2. A broker or
dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;

 

____ 3. An insurance
company as defined in Section 2(13) of the Securities Act;

 

____ 4. As investment
company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48)
of that Act;

 

____ 5. A Small Business
Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958;

 

____ 6. A plan established
and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions,
for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

____ 7. An employee
benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a
plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company,
or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons that are accredited investors;

 

____ 8. A private business
development company as defined in Section 202(a)(23) of the Investment Advisers Act of 1940;

 

____ 9. An organization
described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts or similar business trust,
or partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

 

____ 10. A trust, with
total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by
a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable of evaluating
the merits and risks of investing in the Company;

 

EXHIBIT C-2

    	2

    	 

    

 

____ 11. An entity
in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category
only, list the equity owners of the undersigned, and the investor category which each such equity owner satisfies:

 

 

 

 

 

 

 

 

(Combine on a separate piece of
paper, if necessary.)

 

 

	 	Dated: ______________________, 20__ 
	 	 
	 	 
	 	Name of investor
	 	 
	 	Signature and title of authorized
	 	officer, partner or trustee

 

 

 

 

 

 

 

EXHIBIT C-2

 

3Chrystal Capital Partners LLP
                New Broad Street House, 35 New Broad Street,
                           London EC2M 1NH
              Telephone +44(0)20 7850 4760 www.chrystalcapital.com

STRICTLY  PRIVATE  AND  CONFIDENTIAL

Discovery Energy Corp.
One Riverway, Suite 1700
Houston, TX 77056
USA

30 September 2012

FOR THE ATTENTION OF KEITH SPICKELMIER, EXECUTIVE CHAIRMAN & KEITH MCKENZIE, CEO

Dear  Sirs

ENGAGEMENT  LETTER

DISCOVERY  ENERGY  CORP.  ("DISCOVERY",  "COMPANY",  "CLIENT",  "YOU" OR "YOUR")

This  letter  refers to our recent discussions concerning your proposed plans to
raise  up to USD $20m of financing, potentially in multiple phases and including
potential  farm-in  arrangements,  to  develop  your assets in the Cooper Basin,
Australia  (the  "FUND  RAISE(S)"  or  "OBJECTIVES").

This  letter,  together with the attached terms and conditions in Appendix 1 and
other  Appendices  below,  which are intended to be legally binding, set out the
basis of the engagement of Chrystal Capital Partners LLP ("CHRYSTAL CAPITAL") to
act  as financial adviser to you. Accordingly we set out below the nature of the
responsibilities  and conditions which Chrystal Capital and the Client undertake
in  relation  to  the  Objectives.

Based  on information provided by you and pursuant to the rules of the Financial
Services  Authority  (the  "FSA"),  which  requires  all  of  our  clients to be
classified  into  one  of  three  regulatory  categories, we have classified the
Company  as  a  "Retail  Client".

1.     CHRYSTAL  CAPITAL'S  SCOPE  OF  ENGAGEMENT

The  services we expect to be providing to you comprise the following (together,
the  "SERVICES")  which  can  be  broken  down  into the following broad phases:
<PAGE>
Initial  Preparation

In  advance  of  commencing the first round of Fund Raises Chrystal Capital will
provide  you  with  advisory services in relation to your intent to progress the
Company  through multiple rounds of Fund Raises. This will include, but will not
be  limited  to:

1.1     Advising  on how to structure the Company to be attractive to investors;
1.2     Advising on the type of reports needed and the level of detail required;
1.3     Introducing you to companies qualified to provide these resource
        reports;
1.4     Advising and supporting on any financing rounds that you intend to lead
        and complete, (whether initiated by Chrystal or the Company) and;
1.5     Providing on-going analysis of the resource and consulting advice on
        best practice in the capital markets.

Fund  Raising  Phases

1.6     Advising generally with regard to the raising of funds from Prospects
        (as defined in Appendix 1) interested in participating in a financing
        round. The round size is likely to be determined by the structure of the
        financing with dilution and valuation being the key considerations;
1.7     Working alongside you to gather and organise the necessary information
        needed to allow Prospects to properly assess the investment opportunity.
        Advice on the population of the electronic data room and UK regulatory
        know your client files;
1.8     Corporate governance and management reporting framework issues that are
        consistent with both the Company's and Chrystal Capital's regulatory
        obligations;
1.9     Reviewing and providing guidance on financial modelling and projections
        and drafting or repositioning the power point presentation of the
        results in accordance to the particular requirements of Prospects and in
        a manner consistent with the Company's regulatory obligations;
1.10    Selecting appropriate Prospects to introduce you to with a particular
        emphasis on Prospects that can add skills and value to the Objectives
        and development of the Company in addition to the provision of capital;
1.11    Producing pre-financing documentation to lend credibility and stimulate
        the interest of Prospects;
1.12    Organising, booking and attending the road show and providing advice in
        advance of the road show;
1.13    Providing support and guidance throughout the Objectives including
        Prospect selection and assistance with negotiation of terms and
        conditions and;
1.14    Liaising with the Company's directors, legal advisers, accountants,
        brokers, auditors, financial public relations advisers and registrars as
        necessary through to completion of the Objectives.
<PAGE>
Post  Financing  Services  Phase

1.15    Advising  generally  with regard to the raising of funds from Prospects
        post  financing  through  defined  secondary  placements  alongside  the
        engaged Placement  Agent(s);
1.16    Coordinating advisers such as legal advisers, accountants, brokers,
        auditors, financial public relations advisers and registrars on an on-
        going basis through the financial calendar events;
1.17    Driving a PR marketing programme to ensure maximum Prospects exposure
        and retail liquidity;
1.18    Marketing the Company to a wider selection of brokers to increase the
        number of analysts covering the stock with high quality research
        reports;
1.19    Advising on drafting RNS releases to the market; and
1.20    Providing on-going help with the solicitation of potential partners,
        clients and ultimately likely bidders for the Company.

This  is  not  an  exhaustive  list of the Services we will perform but merely a
broad  guidance  of  the  critical  role  that  we will perform as the Company's
financial  advisor.

In  connection  with  the  provision  of its services hereunder, Chrystal hereby
agrees  to  comply  with  all  laws,  regulations  and  rules applicable to such
services.

2.     YOUR  OBLIGATIONS

       In  consideration  of our agreeing to act for you in relation to the
       Objectives, you  agree and represent that, for so long as we act for you,
       you will (and will procure  that  your  Related  Companies  will):

2.1    comply  at  all  times (to the extent applicable) without delay with the
       FSA  Handbook  of  Rules  and  Guidance,  including  those  rules made
       under the Financial  Services  and  Markets Act 2000 ("FSMA") (the "FSA
       RULES"), which for the  avoidance  of  doubt  includes  the  Listing
       Rules,  the  Disclosure  and Transparency Rules, the Prospectus Rules,
       the Criminal Justice Act 1993, the AIM Rules  for  Companies  published
       by the London Stock Exchange from time to time, the  PLUS  Rules  for
       Issuers  and the PLUS Trading Rules published by the PLUS Markets  Group
       Plc,  any  Admission  and Disclosure Standards, the City Code on
       Takeovers  and  Mergers  (the "CODE") (and any rulings and instructions
       given by the  Takeover  Panel),  the  rules  and requirements of the Bank
       of England, the Companies  Act  2006  and  such  other  rules,
       regulations  and  laws  in  any jurisdiction that may apply from time to
       time (collectively the "RULES") and all directions  given  by  ourselves
       in  relation to compliance with the applicable Rules;

2.2    comply at all times with section 21 of FSMA which restricts persons who
       are not authorised by the FSA from communicating invitations or
       inducements to engage in investment activity during the course of
       business;
<PAGE>
2.3    register transfers of securities in the Company in in a manner
       consistent with the Company's regulatory obligations and despatch share
       certificates as applicable, without delay;

2.4    forward to us for our prior perusal and written approval proofs of all
       documents and press announcements (other than routine press
       announcements) to be communicated that relate to, or have an effect on,
       the Objectives;

2.5    ensure that the contents of all statements or financial promotions
       approved by us at your request, and the contents of all documents or
       announcements published or otherwise issued by you, are true, complete,
       accurate and not misleading and that any expressions of opinion or belief
       are made on reasonable grounds;

2.6    if required by the Rules, ensure that an appropriate dealing regime is
       in place in respect of your directors' and relevant employees' dealings;

2.7     notify us immediately upon becoming aware of any breach or alleged
        breach of the Rules and any other legal or regulatory issues that you
        are aware of or which may arise;

2.8     notify us in a timely manner before the engagement of any professional
        advisers and provide us with the details of any other professional
        advisers or other corporate finance advisers engaged by you within the
        last 24 months; and

2.9     Ensure that all Prospects pay their investments directly to the legal
        advisor who is nominated by the Company to receive the proceeds of the
        Fund Raise (the "Legal Advisor") and use reasonable endeavours to ensure
        that a term substantially in the form set out in Appendix 6 is detailed
        in any agreement between a Prospect and the Company in connection with
        the Objectives.

2.10    The company shall be entitled to reject any Prospect or proposed
        transaction presented by Chrystal Capital for any reason that the
        Company believes appropriate.

3.     CHRYSTAL  CAPITAL  TEAM  AND  POINTS  OF  CONTACT

       Kingsley  Wilson  will be the individual in charge of providing the
       Services and your principal point of contact within Chrystal Capital.  He
       will be assisted by such other or additional members of the Chrystal
       Capital team as we may consider appropriate  from  time  to  time.
<PAGE>
4.     BASIS  OF  CHARGES

       In  consideration  of  us  providing the Services, you agree to
       remunerate us as follows:

4.1     COMMITMENT  AND  ADVISORY  FEES

(a)     A  rolling  monthly  client  commitment  fee  in  the  sum of GBP  7,500
        (Sterling)  is  payable  in  cash,  which is non-refundable. This fee is
        payable until this agreement is terminated in accordance with the
        section on termination below.

4.2     SUCCESS  FEES  -  CASH

        (a)     Upon  completion  of  each  and every successful closing of a
                Fund Raise (other  than  one  involving  a  Pre-Existing
                Exception (as  defined in 4.2(b))) during  the  Exclusivity
                Period  or  the 18-month  trailing period thereafter, a success
                fee  amounting  to  7% (seven per cent) of the gross amount of
                all such funds  raised  pursuant  to the Objectives is payable
                in cash due on completion. Any  funds  raised  under  a  farm-in
                agreement  where  the investors have been introduced  by you
                will result in a 3% (three per cent) success being payable in
                cash  due  on  completion.  For the avoidance of doubt a 7%
                (seven per cent) fee will  be  payable  in  cash  under  a
                farm-in agreement where the investors are introduced  by  us.

(b)             In the event that you complete a Fund Raise of any type or
                manner from any source in any country subject to the Pre-
                Existing Exceptions (as defined below) during the Exclusivity
                Period (as defined in clause 5 of this letter) a fee of 7%
                (seven per cent) of the gross amount of all such funds raised is
                also payable by you to us in cash on completion of the Fund
                Raise.  For the avoidance of doubt this clause applies to each
                and every Fund Raise completed during the Exclusivity Period
                subject to the Pre-Existing Exceptions. The "Pre-Existing
                Exceptions" are:

                (i)     Up  to  $2m  in  equity  funding  currently  being
                        marketed  by Company financings  with,  or facilitated
                        by, existing shareholders in this initial Fund Raise.
                        For  the  avoidance  of  doubt  this  equity funding
                        will no longer be a Pre-Existing  Exception  once
                        completed.

                (ii)    Any Fund Raise by MIGO, which is currently under review,
                        within 45 days from the signing of this Engagement
                        Letter. After 45 days from the signing of this
                        Engagement Letter MIGO will then be deemed to become a
                        Chrystal Prospect and no longer a Pre-Existing Exception
                        and any Fund Raise by MIGO will result in a 3% (three
                        per cent) success fee being payable in cash due on
                        completion.
<PAGE>
(c)             Any  fees  payable  in  cash  (other  than  the  rolling
                monthly client commitment  fees) may in our sole discretion be
                paid to us in the form of shares of your common stock equal to
                the fees due.  The subscription price shall be the share price
                as at the immediately previous fundraising completed by the
                Company.

4.3     SUCCESS  FEES  -  SHARES

               (a)     In  consideration  of  the  Services  provided  to  you
                       pursuant to this letter,  the Company hereby agrees to
                       issue and allocate us and/or our nominees, pursuant  to
                       the Restricted Share Award Agreement attached hereto as
                       Appendix 7, a  total  of  6,472,425  (six million, four
                       hundred and seventy two thousand and four  hundred  and
                       twenty five) shares of the Company's common stock
                       ("SHARES"), which is equivalent to 5% (five per cent) of
                       the total outstanding share capital of  the  Company
                       calculated  as  fully diluted (129,448,500) at the date
                       of the signing  of  this  letter.  Such  Shares  will  be
                       allotted to us nil paid or at nominal  value  and  will
                       be  sent  to us or our lawyers on the signing of this
                       letter  and  the  aforementioned Restricted Share Award
                       Agreement  to be held in escrow  pending  completion  of
                       the  Objective.

               (b)     In the event that you complete a Fund Raise of any type
                       or manner from any source in any country from Prospects
                       not introduced by us, during the Exclusivity Period (as
                       defined in clause 5 of this letter), the Shares allotted
                       to us pursuant to clause 4.3(a) of this letter will
                       become fully paid against completion of the Fund Raise
                       subject to the Company investors described in clause
                       4.2(b). In event of a Fund Raise by MIGO completing after
                       45 days of the signing of this Engagement Letter,
                       Chrystal will retain 50% of the allotted shares in 4.3(a)
                       and return the balance to Company on completion of the
                       Fund Raise.

               (c)     We acknowledge that in granting us the Exclusivity Period
                       in which to raise the capital and otherwise provide the
                       Services, you are bearing a material opportunity cost
                       risk that we fail to complete the Objectives. We
                       therefore agree that if we are unsuccessful in completing
                       the Objectives or providing the Services, defined as the
                       Company not receiving any capital from our Prospects,
                       then all of the Shares will be returned to the Company,
                       less any cash paid.
<PAGE>
               (d)     The attached Restricted Share Award Agreement shall
                       govern the share issuance provided for by this Section
                       4.3.  Accordingly, if any inconsistency arises between
                       the terms, provisions and conditions of this Agreement
                       and those of such Restricted Share Award Agreement, the
                       terms, provisions and conditions of such Restricted Share
                       Award Agreement shall control.

4.4     SUCCESS  FEES  -  OPTIONS

               (a)     On  completion  of  each  Objective,  any  Fund  Raise
                       (other  than one involving  a  Pre-Existing  Exception
                       (as  defined  in  4.2(b)))  within  the Exclusivity
                       Period (as defined in clause 5 of this letter) and on any
                       subsequent Fund  Raise, the Company hereby grants to
                       Chrystal Capital or its nominees, with immediate  effect,
                       an  option  to  acquire ordinary shares/common stock or
                       such equivalent  as  may  be  relevant  (which entitles
                       us on exercise to full voting rights  and  which  rank
                       pari passu with all other shares in the Company) in the
                       capital  of  the  Company.  The  total  number of shares
                       under option capable of being exercised on a successful
                       completion of each Objective shall be calculated in
                       accordance  with  the  provisions  of  the option
                       agreement attached to this letter  in  Appendix  3.

               (b)     None of the options to be issued pursuant to Section
                       4.4(a), and none of the shares to be issued pursuant to
                       such options, shall be covered by the Discovery Energy
                       Corp. 2012 Equity Incentive Plan.

4.5     TERMINATION  AND  FURTHER  TRANSACTION  FEES

              (a)     If  the  Services are terminated before completion of the
                      Objectives and the  Objectives  or  a  transaction
                      similar  to  one  set out in the Objectives completes
                      within  a period of 18 months after the effective date of
                      termination with  Prospects,  or  Related  Companies  of
                      the Prospects, or Placement Agents sourced  by  Chrystal
                      Capital pursuant to the Objectives, the Company shall pay
                      Chrystal  Capital  the  fees and expenses referred to in
                      paragraphs 4.1, 4.2 and 4.3 of this letter in respect of
                      the similar transaction less any amount already paid.

              (b)     If the Objectives are successfully completed pursuant to
                      the terms of this letter and a further Fund Raise of any
                      description is carried out by the Company, within a period
                      of 18 months after the effective date of the completion
                      of the Objectives, using the same Prospects, or Related
                      Companies of the Prospects, or Placement Agents sourced by
                      Chrystal Capital pursuant to the Objectives, the Company
                      shall pay Chrystal Capital the fees and expenses referred
                      to in paragraphs 4.2, and 4.3, as applicable, in respect
                      of the further Fund Raise.
<PAGE>
              (c)     You shall have the right to terminate this letter by
                      giving us notice in writing at any time within the first
                      45 (forty-five) days after the date of this agreement.
                      If the Services are terminated within:

                      (i)     15  days of the signing of this letter the Company
                              hereby agrees to pay Chrystal  a fee of $33,500
                              together with any outstanding pro rata monthly
                              client commitment  fee  and  any  outstanding
                              expenses;

                     (ii)     30 days of the signing of this letter the Company
                              hereby agrees to pay Chrystal a fee of $67,000
                              together with any outstanding pro rata monthly
                              client commitment fee and any outstanding
                              expenses;

                    (iii)     45 days of the signing of this letter the Company
                              hereby agrees to pay Chrystal a fee of $100,000
                              together with any outstanding pro rata monthly
                              client commitment fee and any outstanding
                              expenses;

                     (iv)     For the avoidance of doubt Clauses 4.5 (a) and (b)
                              would still apply, but the Company will owe no
                              further remuneration to Chrystal Capital other
                              than the preceding break-up fee and as provided in
                              Clauses 4.5 (a) and (b).

4.6     EXPENSES

        In  addition  to  the  fees  set  out  in this letter, you will you will
        also be responsible  for  all our properly and reasonably incurred
        expenses in providing the  Services.  You  agree  to  reimburse  our
        expenses properly and reasonably incurred  in  providing the Services
        within five working days of the issue of an invoice  by Chrystal
        Capital.  Invoices for expenses will be raised on a monthly basis  and
        include,  for  example, travel, subsistence, accommodation, courier,
        delivery,  photocopying  and  printer  expenses.  We  will  use  our
        reasonable endeavours  to obtain your prior approval before incurring
        any single expense in excess  of  GBP  500  (Sterling)  and  before
        overall expenses exceed GBP  1,000 (Sterling).  However,  in  the  first
        instance,  the  Company  must  provide an expenses  pre-payment  of
        5,000 to cover initial expenses.  Any balance will be returned  to  the
        Company  on  completion  or  termination  of this engagement.

        Our  fees and  expenses  due pursuant to this letter are due and payable

        (unless stated otherwise  to  the  contrary).
<PAGE>
        The  fees and expenses referred to in this letter are in addition to any
        placing or  financing fees, commissions or other separately agreed sums
        which may become payable  in  connection  with  the  Objectives.

5.     EXCLUSIVITY  PERIOD

       Our  agreement to act on your behalf is conditional upon Chrystal Capital
       having sole  and  exclusive  conduct on all matters within the scope of
       this letter and the  attached terms and conditions and the Objectives as
       set out in this letter. The  exclusivity  period  will  be for two (2)
       months (the "EXCLUSIVITY PERIOD") from  the signing this letter, and then
       on a rolling monthly basis unless you or we  terminate  this letter in
       accordance with the termination provisions set out below  or  in  Section
       4.5(c).

       In the event of a successful Fund Raise, the Exclusivity Period will be
       extended to  a  year  from  the  date  of  the  completion  of  the  Fund
       Raise and will automatically  be  renewed  every year, unless terminated
       in accordance with the termination  provisions  set  out  below.

       For  the  avoidance  of  doubt,  if you terminate this letter in the
       Exclusivity Period  (other  than  in accordance with Section 4.5(c) or
       Section 6 below), you will:

       (a)     pay  us the due retainer and fees set out in clause 4.1(a) and
               4.2(b) of this  letter;  and

       (b)     allot us the Shares set out in clause 4.3 of this letter; and

       (c)     pay us the expenses set out in clause 4.6 of this letter.

      Any  other  services  to  be  provided by us to you at your request shall
      be the subject  of  separate  terms  of  engagement  between  Chrystal
      Capital and you.

6.     TERMINATION

      You  shall  have  the  right  to  terminate this letter by giving us one
      month's notice  in writing at any time 60 (sixty) days after the date of
      this agreement, or  at  any  time  that;

      (a)     Kingsley  Wilson  becomes  incapacitated  and  unable  to  serve
              as your primary  contact  under  this  letter.

      (b)     Chrystal or any of its principals become the subject of an
              investigation with respect to misconduct of any nature with
              respect to securities dealings or financial schemes.

      We  reserve  the  right to terminate this letter immediately by giving
      notice in writing  in  the  event  that:
<PAGE>
     (c)     we  become aware of facts or circumstances of which we were unaware
            (and of which we could not have been expected to have been aware) at
            the commencement of  this  letter  which,  in  our  reasonable
            opinion,  would  preclude us from completing  the  Objectives;

    (d)     fundamentally damaging information comes to our attention which had
            not been fully disclosed to us before the date of this letter and
            which, in our reasonable opinion, would preclude us from completing
            this letter (including but not limited to any serious litigation
            against you, any form of actual or threatened insolvency procedure
            against you, your shareholders or director(s), and any form of
            criminal act, past or present, committed by a member of your
            management team);

    (e)     material information is unavailable to us, or any information which
            it had been agreed at the outset of this letter would be provided by
            you is unavailable or not produced in a timely fashion (including
            but not limited to a request for information over the course of
            several weeks, and if it has not been provided, this would be deemed
            to fall within this category);

    (f)     we decide not to continue our relationship with you under paragraph
            H below;

    (g)     any fee or expense amount due in relation to this letter becomes
            overdue by more than four weeks;

    (h)     you fail to comply with the 'sole and exclusive conduct' clause in
            paragraph 5 of this letter; or

    (i)     you are in breach of any of the terms or provisions of this letter.

      Termination,  howsoever  caused,  will  not  affect  our rights of
      remuneration, indemnification  and  non-circumvention  as  set  out  in
      this  letter  or  the Appendices,  or  any other accrued rights which we
      may have upon termination and shall  be without prejudice to the
      completion of transactions already initiated.

7.    GENERAL

      You agree that any advice, including (without limitation) any valuation,
      written report  or  material prepared by us, is provided solely for your
      use and benefit for the purpose of the Objectives and may not be used or
      relied on for any other purpose  or  disclosed  to  any  other person
      (excluding your other professional advisers,  who  may  place no reliance
      on such advice) without our prior written consent.

      Save  as  required by the Rules, no advice that we give nor any
      communication we make in  connection  with  the  Objectives  may be quoted
      or referred to in any public  statement,  report,  document,  release  or
      other communication whether written,  electronic  or oral by you or by any
      Related Company without our prior written  consent.
<PAGE>
      You acknowledge that we act solely for you in connection with the
      Objectives and no one else and accordingly that we will not be responsible
      to anyone other than you  for  providing  the  protections afforded to our
      customers or for providing advice  in  relation  to  or  in  connection
      with  the  Objectives.

      You  and  each  of  the  directors  of  the  Company acknowledge that we
      are not responsible  for  providing  you  or  them  with  legal advice in
      respect of any applicable  laws  and  regulations in connection with the
      Objectives and you and each  of  the  directors of  the  Company undertake
      to obtain appropriate legal advice  and  to  communicate to us such advice
      whenever relevant or necessary to the  proper  performance  of  our
      services  in  connection with the Objectives.

8.    CLIENT  DUE  DILIGENCE

      As we have not conducted corporate finance business with you before, this
      letter is subject to the satisfactory completion of our statutory Anti-
      Money Laundering and  Know  Your  Client  formalities.

      The Company hereby authorises Chrystal Capital to make such enquiries and
      obtain such  references  as  it  may consider necessary to fulfil its
      legal obligations (including  without  limitation  instructing  third
      party investigatory agencies where  appropriate).  This  letter also
      authorises Chrystal Capital to make such further  enquiries and references
      as it may from time to time consider necessary to  enable it to continue
      to comply with those obligations. Any fees or expenses incurred  by
      Chrystal  Capital  in  making  such  enquiries  or  obtaining such
      references  shall  promptly  be  reimbursed  by  the  Company.

9.    CLIENT  ACKNOWLEDGEMENT

      We  should be grateful if you would signify your understanding and
      acceptance of the  engagement,  including this letter and the attached
      terms and conditions in Appendix  1  and  the  matters  set  out in the
      other Appendices, by signing and returning  the  enclosed  duplicate.

Yours  faithfully,

Kingsley Wilson
For  and  on  behalf  of  CHRYSTAL  CAPITAL  PARTNERS  LLP

<PAGE>
To:     CHRYSTAL  CAPITAL  PARTNERS  LLP

I  agree with the terms and conditions of the arrangements set out in the letter
and  the terms and conditions in Appendix 1 and the matters set out in the other
Appendices  as  evidenced  by  my  signature  below:

Agreed  &  Acknowledged

Print  Name:

Printed  Title:

For  and  on  behalf  of:

Date:

<PAGE>
                                   APPENDIX 1
                              TERMS AND CONDITIONS

(A)     INTRODUCTION

These  terms  and conditions are supplemental to the provisions contained in the
letter  to  which  they  are  attached  and,  together with the letter, form the
agreement.  In  the  event of any conflict between the express provisions of the
letter  and  these  terms  and  conditions,  the  provisions in the letter shall
prevail.  This agreement sets out the entire agreement and understanding between
Chrystal  Capital  and  the  Company  in  connection  with the Objectives.  This
agreement  supersedes  and  terminates  any  prior  agreement,  arrangement  or
understanding,  whether  written  or  oral,  between  the  parties and any prior
representation  by  Chrystal Capital relating to the engagement pursuant to this
agreement.
(B)     DEFINITIONS

The  following  words  shall  have  the  following  meanings (unless the context
otherwise  requires):

"FUND  RAISE"  means  the  raising  of  funds  or capital of any type and in any
manner,  including  but  not  limited  to equity, mezzanine, hybrid/convertible,
debt,  or  in any other such structure, through a Placement Agent or a Prospect;

"INTRODUCE" OR "INTRODUCTION" means where we are the effective cause directly or
indirectly,  and  regardless of whether effected orally or in writing (including
for  the  avoidance  of  doubt,  by  email),  of initiating with a Prospect or a
Placement  Agent,  a  meaningful  contact  (being a meeting or phone call with a
Prospect  or  a  Placement Agent during which you have an opportunity to present
your  Company)  notwithstanding  that  you  obtain  the  Prospect's  details
subsequently, whether as a result of your own initiatives or otherwise; or where
a Prospect or a Placement Agent we introduce you to introduces you to some other
person  or  entity  capable  of  being  a  Prospect  or  a  Placement  Agent;
<PAGE>
"PLACEMENT  AGENT"  means  any  person  or  entity  to whom we Introduce you who
subsequently  completes  a  transaction for the Company, directly or indirectly;

"PROSPECT(S)"  means a variety of potential investors capable of providing funds
or  capital  in  any manner, to whom you are introduced, directly or indirectly,
such  potential  investors  being,  without  limit  any one or more of financial
institutions,  brokers,  banks,  hedge  funds,  family  offices, debt providers,
private  equity,  operational  companies, corporate investors, farm-in investors
and  operators  and  high  net  worth  individuals  including any successor to a
Prospect or successor to a business of a Prospect. Where you are introduced to a
Prospect  that  does  not  participate  in  an  initial  Fund  Raise,  but  you
subsequently  obtain  funding from such Prospect, at any time during the term of
this agreement and for eighteen (18) months after its termination, such Prospect
shall  be  deemed  to  be a Prospect for the purposes of this definition, except
where  you  can  show  that  you  had  an established relationship or meaningful
contact  with  such  person  prior  to  the  date  of  this  agreement;  and

"RELATED  COMPANY"

(a)     in  respect  of  Chrystal  Capital,  any  parent undertaking of Chrystal
Capital  and any subsidiary undertaking or subsidiary undertaking of that parent
undertaking  (except  Chrystal  Capital);

(b)     in respect of the Company, any parent undertaking of the Company and any
subsidiary  undertaking  or  subsidiary  undertaking  of that parent undertaking
(except  the  Company);  and

(c)     in  respect  of a Prospect, any parent undertaking of a Prospect and any
subsidiary  undertaking  or  subsidiary  undertaking  of that parent undertaking
(except  a  Prospect)

and  for  these  purposes  "PARENT  UNDERTAKING",  "SUBSIDIARY  UNDERTAKING" and
"SUBSIDIARY" shall bear the meanings respectively given to them in the Companies
Act  2006  and  "RELATED  COMPANIES"  shall  be  construed  accordingly.

(C)     ANTI-DILUTION

Standard  anti-dilution  protection  rights will apply i.e. we have the right to
maintain  our  percentage  share  ownership  in  the  Company and the ability to
purchase  a  proportional number of shares of any future issue of shares, common
stock,  options  or  warrants issued/agreed with existing shareholders, proposed
shareholders  or third parties, at the price at which they are issued, excluding
management  performance  options  or  warrants. The share figures quoted in this
agreement  will  also  need  to  be  adjusted proportionally in the event of any
changes  in  the  capital  structure  including but not limited to stock splits.
<PAGE>
(D)     PAYMENT

All  payments  to  be  made  under  this  agreement should be made by electronic
transfer  to  the  following  account,  unless  otherwise  agreed:

Bank:          NatWest  Bank  Plc

Address:     1  Princes  Street,  London,  EC2R  8PA

Account  name:     Chrystal  Capital  Partners  LLP

Sort  code:     60-00-01

Account  number:     39529746

Swift:          NWBK  GB  2L

IBAN:     GB42  NWBK  6000  0139  5297  46

We  reserve the right to charge interest on overdue amounts at an annual rate of
13.5%  (thirteen point five per cent) from the day payments are due, as per this
agreement,  under  UK statutory late payment legislation. Late payment fees will
be  calculated  on  a  daily  basis.

(E)     ACCESS  AND  INFORMATION

The  Company  agrees  to  provide Chrystal Capital with all data and information
concerning  its  business and affairs, or those of any of its Related Companies,
which  is relevant to the provision of the Services by Chrystal Capital pursuant
to  this  agreement from time to time and all such other information as Chrystal
Capital  may reasonably request and the Company shall update such information as
necessary.  Chrystal  Capital  shall  be  granted  full access to the directors,
employees  and  advisers  of  the  Company  and  those of its Related Companies.

The  Company  undertakes that all information provided to Chrystal Capital shall
be  true,  accurate  and  complete  in  all  material  respects and shall not be
misleading.  There  shall not be any material omissions from the information and
every  statement of opinion or intention in the information provided to Chrystal
Capital  shall  be honestly and fairly based.  The Company shall promptly notify
Chrystal  Capital  and take all steps as Chrystal Capital may reasonably require
correcting  any  statement,  announcement  or  publication  which is found to be
untrue,  inaccurate  or  misleading.

Chrystal  Capital  shall  be entitled to rely for all purposes upon the accuracy
and  completeness of all information provided to it by the Company or any of its
advisers  without  any  obligation  to  verify  or  confirm  the  same.

The  Company  undertakes  that  it shall have or obtain the right to supply such
information  free of restriction and that the supply of such information and its
receipt  and use by Chrystal Capital for the purposes of the Objectives shall be
permitted.
<PAGE>
(F)     CLIENT  AUTHORISATION

Our understanding is that we may communicate with you and your fellow directors.
Notwithstanding  the  above,  you  authorise  us to rely on the authority of any
instructions,  notices  or  requests  (whether  in  writing  or  not and however
communicated to us) from any person nominated by you or such other persons as we
may  reasonably  assume are intended to have such authority.  Instructions given
to  us  shall  not take effect until actually received by us.  Communications by
you  to  us  under this agreement may be made by facsimile or email and shall be
deemed  effective  on  the  working  day  next  following  transmission  of  the
communication.

The  engagement  by  the  Company  of  Chrystal  Capital  in connection with the
Objectives  confers on Chrystal Capital all powers, authorities, permissions and
discretions  on  the  Company's  behalf  which  are  necessary  for,  reasonably
incidental  to  or  customary  in  the provision of, the Services to be provided
pursuant  to  the  Objectives.  The  Company hereby agrees to ratify and confirm
everything which Chrystal Capital shall reasonably and lawfully do in the proper
exercise  of  such  powers,  authorities  and  discretions  in  relation  to the
Objectives.

It  is  expressly  agreed  between Chrystal Capital and you that in all dealings
with  third  parties  we  will  be  acting  as  agent  on your behalf and not as
principal,  and  that  we  shall  be  entitled  to  make  this  clear  in  all
communications  with  such  third  parties.

Chrystal  Capital will not have any responsibility for due diligence in relation
to  the  Objectives  which  would normally be carried out by your other advisors
such  as  legal, accountancy, tax advisers and other consultants notwithstanding
that  Chrystal Capital may be in possession of advice provided by such advisers.
It  is  your  responsibility  to  ensure that the advice received from its other
advisers in connection with completing the Objectives is considered adequate for
the  purpose.  Chrystal  Capital  reserves  the  right to request additional due
diligence  and  verification  as  required  through  the  process.

(G)     CLIENT  MONIES

We are not registered to hold third party monies and consequently any cheques or
payments  receivable  by  us  in  respect of third parties must be appropriately
addressed.  Any  monies to be received by the Company under a Fund Raise will be
channelled through the Company's lawyers, with such lawyers being instructed and
entitled  to  withhold and pay to us all our fees due under this agreement prior
to  transmission  of  proceeds  of  the  Fund  Raise  to  the  Company.

(H)     CONFLICTS  OF  INTEREST

Chrystal  Capital  and  its  Related  Companies are involved in the provision of
corporate  finance  advisory  services  and  may  have  a  financial interest in
transactions  involving  or relating to the Company and/or its Related Companies
or  other  material  interest,  relationship  or arrangement which may involve a
potential  conflict  with Chrystal Capital's duties under the Objectives.  These
situations may include, without limitation, Chrystal Capital acquiring shares or
options,  warrants  or  other  rights  in  shares  in  the  Company  (together
"SECURITIES")  in  lieu  of  fees  or  Related  Companies engaging in investment
management  business and dealing in, holding or otherwise effecting transactions
in  relation  to  Securities.
<PAGE>
The  Company  agrees  that  Chrystal  Capital  shall  be entitled to perform the
Services  in connection with the Objectives notwithstanding any such interest or
conflict  of  interest or duty; and nothing in this agreement or otherwise shall
give  rise  to  any  fiduciary or equitable duty which would prevent or restrict
Chrystal  Capital  or  any  Related Company from doing so. Chrystal Capital will
take  reasonable  steps  to identify and manage any such conflict to ensure fair
treatment  of  the  Company,  in  accordance  with  the  FSA  Rules.

Subject  to  the  FSA  Rules and to any contrary prior instructions given by the
Company  in  writing,  Chrystal  Capital  shall  be  entitled,  in the course of
providing  corporate  finance  services, to deal with or use the services of any
Related  Company.

Subject  to  the  FSA Rules and to any such contrary prior written instructions,
Chrystal  Capital  and  its  Related  Companies  shall, without any liability to
account to the Company, remain entitled to retain any profits, benefits or other
advantages  arising  from:  (a) being interested in any transaction involving or
relating  to  the  Company  (including  the  acquisition, holding or disposal of
Securities);  and (b) any dealings with, or the provision of services by Related
Companies,  notwithstanding  this  agreement.  Chrystal  Capital  shall  not  be
required  to  disclose  any  such  profit,  benefit  or advantage to the Company
(except  as  required  by  the  FSA  Rules).

(I)     CONFIDENTIALITY

Chrystal  Capital  shall  keep  confidential as provided in this paragraph I any
confidential  information  relating  to  the  Company and the Company's business
affairs  that  the  Company  discloses  to  Chrystal  Capital  ("CONFIDENTIAL
INFORMATION").

Confidential  Information  shall  however  not  include  any  information  that:

(a)     at  the  time of disclosure to Chrystal Capital is already in the public
domain;

(b)     at  any  time  after  such  disclosure  falls  into  the  public domain,
otherwise  than  as  a result of a breach by Chrystal Capital of its obligations
under  this  paragraph  I;

(c)     was lawfully in the possession of Chrystal Capital prior to such
disclosure; or

(d)     (for the avoidance of doubt) was or is received by Chrystal Capital from
any third party who at the time, so far as is known to Chrystal Capital, was or
is not bound by any restrictions on disclosure by such party.
<PAGE>
Chrystal  Capital shall not disclose Confidential Information to any third party
save:

(a)     to  any  adviser  instructed  by  the  Company or by Chrystal Capital in
connection  with  the  Objectives  and  for  the  purposes  of  the  Objectives;

(b)     where  required  by  law  or  by  any  court  or  tribunal  of competent
jurisdiction or where required by the rules of or in accordance with the request
of  any  regulatory  authority  the  jurisdiction  to  which Chrystal Capital is
subject;

(c)     in connection with legal proceedings to which Chrystal Capital is party
and which are directed to the enforcement of the Company's rights or those of
Chrystal Capital pursuant to the Objectives; or

(d)     the fact of Chrystal Capital's role in the Objectives but only if the
existence of the Objectives is in the public domain.

Any advice or opinion, written or oral, provided by Chrystal Capital pursuant to
this  agreement  shall be solely for the Company's information and assistance in
connection  with  the  Objectives  and must be kept confidential by the Company.
Such  advice  or  opinion  may  not be used for any other purpose or circulated,
quoted, referred to or publicly filed or disclosed to any third party, except in
each  case  with  the  prior  written  consent  of  Chrystal  Capital.

All original share certificates, documents of title and other documents received
from  the  Company  and held to its order will be returned on request subject to
payment  of  any  outstanding  fees  and  expenses and to Chrystal Capital being
entitled  to  retain  copies  in  order  to  comply with its regulatory or other
record-keeping  requirements.

Neither  Chrystal  Capital nor any of its Related Companies shall be required to
disclose  to  the  Company  any  information  which comes to their notice in the
course of carrying on any other business or as a result of or in connection with
the  provision  of  services  to  any  other  person.  The  Company accepts that
Chrystal  Capital  and  its  Related  Companies  may  be  prohibited  by  legal
obligations  or  otherwise  from  disclosing,  or  it  may  be inappropriate for
Chrystal  Capital  and  its  Related  Companies  to disclose, information to the
Company  even if the same relates to or would be of benefit to the Company or to
the  Objectives.

The  provisions  of  this  paragraph  shall  continue  in  full force and effect
notwithstanding  the termination of our engagement pursuant to this agreement or
the  completion  of  the  Services.
<PAGE>
(J)     DATA  PROTECTION

Any information, including personal data, that we collect in our business may be
controlled,  stored  and  processed  in,  and  transferred  among, any office of
another  Chrystal Capital entity and any such contractors as we engage to assist
us  in our business and may be transferred to and through any country, including
countries  outside  the European Economic Area (EEA), which may not have privacy
(data  protection)  legislation  and regulations comparable to those in the EEA.
The location of our offices and of such contractors may change from time to time
and  we  may  acquire  offices  and engage contractors in other countries at any
time.  In  engaging  us,  you  expressly  consent  to  such  control,  storage,
processing  and  transfers.

(K)     FINANCIAL  SERVICES  AND  MARKETS  ACT  2000

Chrystal  Capital  Partners  LLP  is  authorised  and regulated by the FSA.  All
Services  provided  by Chrystal Capital are subject to the rules and regulations
of  the  FSA.  The  address  of the FSA is 25 The North Colonnade, Canary Wharf,
London  E14  5HS  or  www.fsa.gov.uk.

In  providing  its  Services, Chrystal Capital proposes to treat you as a Retail
Client  within  the  meaning  of  the  FSA  Rules.

As  a consequence of this categorisation, you may be entitled to a certain level
of  protection  traditionally afforded to Retail Clients under the FSA Rules and
may  additionally  be  entitled  to bring an action for damages against Chrystal
Capital  under  sections  71  and  150  of  FSMA.

Please  see  the  Notice of Treatment as Retail Client section in Appendix 4 for
more  details

Chrystal  Capital  provides  its  services  subject  to the FSA Rules.  Chrystal
Capital  may take all such steps as may in its opinion be necessary or desirable
to  comply with the FSA Rules.  The Company agrees to comply with and to procure
that  its  Related  Companies  comply  at  all  times  with  the  FSA Rules.  In
particular  in  the  case  of  a  transaction  which is subject to the Code, the
Company  shall procure that its associates and any person with whom it is acting
in  concert  (the  expressions  "ASSOCIATES"  and "ACTING IN CONCERT" having the
meanings  given  in the Code) comply with the FSA Rules as the Code may require.

(L)     MONEY  LAUNDERING  REGULATIONS

We  require  a  copy of a proof of address such as a recent utility bill or bank
statement,  together  with  a  copy of photo ID such as a passport or photo card
driving  licence  for  one of the directors and the certificate of incorporation
and  latest  company  accounts  for  the  Company.  This  is  to comply with our
responsibilities  under  the  Proceeds  of  Crime Act 2002 and in particular the
Money  Laundering  Regulations  2007  and  other  legislation.
<PAGE>
(M)     APPROVAL  OF  DOCUMENTS  AND  ANNOUNCEMENTS

The Company and its directors shall provide Chrystal Capital with all assistance
and  information  which  Chrystal Capital may reasonably request to enable it to
satisfy  itself  that any announcement made in connection with the Objectives is
true,  complete  and  accurate, is not false or misleading and does not omit any
material  information.  Except where required by law or the rules of a competent
regulatory  authority,  Chrystal  Capital  shall  not  be  held  responsible for
ensuring  the  truth,  accuracy,  entirety  or  fairness  of  any  announcement,
statement,  publication or document made by the Company, on the Company's behalf
or  by  any  of  the Company's other advisers in connection with the Objectives.
Such  responsibility  shall be that of the Company and its directors alone.  The
Company warrants and represents to Chrystal Capital that all information that it
provides  to  Chrystal  Capital in connection with a document or announcement is
true,  complete,  accurate  and  not  misleading  in  any  material  respect.

If  Chrystal Capital is requested to approve, issue or communicate any financial
promotion  or  other  document  or announcement it shall, in accordance with its
compliance  procedures,  require assurances and representations from the Company
concerning  the  contents  of  them.

Chrystal  Capital  retains the right to refuse to issue, communicate or approve,
or arrange for the issue, communication or approval of, a particular document or
announcement and to require the Company to cease from distributing a document or
announcement  which,  in  Chrystal Capital's opinion, has any connection with or
potential effect on the Objectives if at any time Chrystal Capital becomes aware
of  information  which,  in  its  opinion,  renders the document or announcement
untrue,  incomplete,  inaccurate  or  misleading  in  any  material  respect.

Chrystal  Capital  will  not  approve  any  real  time  financial  promotion.

The  Company  agrees  that  it  shall  take  such action as Chrystal Capital may
reasonably  request  from  time  to  time in connection with any announcement in
relation  to  the  Objectives  or  otherwise,  including any request by Chrystal
Capital  to  make a particular announcement or a corrective announcement. If the
Company  fails  to comply with Chrystal Capital's reasonable request in relation
to  an announcement Chrystal Capital may (in addition to any other action it may
take)  terminate  this  agreement forthwith in accordance with the terms of this
agreement (but without prejudice to payment of any outstanding fees and expenses
payable  under  the  terms  of  this  agreement).

Chrystal  Capital  may  at its expense place an announcement or advertisement in
such  newspapers,  periodicals  and  publications as Chrystal Capital may choose
following  the  public announcement of this agreement, stating that it is acting
or  has  acted  as  financial  adviser  to  the  Company,  as  appropriate.

(N)     INTELLECTUAL  PROPERTY

Chrystal  Capital  copyright  subsists  in  all  Chrystal  Capital  developed
proprietary  material  provided  to  the  Company.  We  require  that  you  keep
confidential  any proprietary Chrystal Capital methodologies and technology used
to  carry  out  the  engagement  as  set  out  in  this  agreement.
<PAGE>
(O)     FORCE  MAJEURE

If  any  failure, interruption or delay in the performance of Chrystal Capital's
obligations  under  this  agreement  results  or  arises  from  acts,  events or
circumstances  not  reasonably  within Chrystal Capital's control (including but
not  limited  to  the  interruption, suspension or failure of any communications
system,  computer  system or other facility of Chrystal Capital or other persons
or any banking or money or securities settlement system), Chrystal Capital shall
not  be  liable  or  have  any responsibility of any kind for any loss or damage
incurred  or  suffered  by  the  Company  or  its  Related Companies as a result
thereof.

(P)     SEVERANCE

If all or part of this agreement is or becomes illegal, invalid or unenforceable
in  any  respect,  then  the  remainder of this agreement shall remain valid and
enforceable  and  the  parties shall negotiate in good faith to amend and modify
this  agreement  as  may  be  necessary  or  desirable  in  the  circumstances.

(Q)     NOTICES

Notices  which  may or are required to be given under this agreement shall be in
writing,  if  by  the  Company  addressed  to  the relevant director of Chrystal
Capital  in charge of the matter and if by Chrystal Capital to a director of the
Company  and  sent  by  prepaid  first  class  post to the relevant party at the
address  in the letter or to such other address, including an e-mail address, as
may  be  designated  by  such  party to the other by written notice from time to
time.

(R)     THIRD  PARTY  RIGHTS

No  provision  of  this  agreement, except as expressly provided for Indemnified
Parties  in Appendix 2 of these terms, is intended to be enforceable pursuant to
the Contracts (Rights of Third Parties) Act 1999.  Accordingly, save as provided
in  relation  to  Appendix  2, no third party shall have any right to enforce or
rely  on  any  provision  of  this  agreement.

The  parties  may  rescind,  vary,  waive,  release, assign, novate or otherwise
dispose  of  all  or  any  of  their respective rights or obligations under this
agreement  without  the  consent  of  any  person  who  is  not  a party to this
agreement.

(S)     ASSIGNMENT

Chrystal  Capital  shall  be  entitled  to assign or transfer all or part of its
rights  or  obligations  under  this  agreement  to a Related Company, from when
references  to  Chrystal  Capital  shall  be  read as references to such Related
Company.

In  order  that  Chrystal  Capital may execute and carry out its duties properly
under  this  agreement,  the Company agrees not to assign or transfer any of its
rights  and  obligations  under  this  agreement  to any party without the prior
written  consent  of  Chrystal  Capital.
<PAGE>
(T)     AMENDMENTS

This  agreement  may only be varied by mutual agreement in writing and signed by
both  parties.  No variation shall, unless both parties agree, affect any rights
or obligations which may have previously accrued to or been incurred by Chrystal
Capital  or  the  Company.

(U)     PAYMENTS,  VALUE  ADDED  TAX  AND  FSA  CLIENT  MONEY  RULES

All  sums  payable by the Company under this agreement shall be paid free of all
deductions  or  withholdings  (unless required by law in which event the Company
shall  pay  such  additional  amount as shall be required to ensure that the net
amount received by Chrystal Capital shall equal the full amount which would have
been  received  by  Chrystal  Capital  had no such deduction or withholding been
required  to  be  made).

All  sums  quoted  in this agreement are exclusive of any applicable value added
tax  (or  any  equivalent  tax  in any other jurisdiction) and the Company shall
promptly  pay to Chrystal Capital an amount equal to any value added tax (or any
equivalent tax in any other jurisdiction) chargeable in respect of payments made
to  Chrystal  Capital  or  otherwise  chargeable  in  respect  of the engagement
pursuant  to  this  agreement.

The  Company  acknowledges that Chrystal Capital is not authorised by the FSA to
hold  client  monies  and  agrees that monies of the Company held or received by
Chrystal  Capital  will not be subject to the protections conferred by the FSA's
client  money rules.  As a consequence, these monies will not be segregated from
the monies of Chrystal Capital and may be used by Chrystal Capital in the course
of  its  business.

(V)     COMPLAINTS

Any complaints about the conduct or performance of Chrystal Capital personnel or
their  advisers  should initially be addressed in writing to Chrystal Capital at
New  Broad  Street  House,  35  New  Broad  Street,  London  EC2M  1NH.

(W)     JURISDICTION

This  agreement  shall  be  governed by and construed in accordance with English
law.  The  Company hereby irrevocably submits to the jurisdiction of the English
courts.  The  parties  irrevocably  agree  that  the  English  courts shall have
exclusive  jurisdiction  to settle any dispute or claim that arises out of or in
connection with this Agreement or its subject matter or formation (including any
non-contractual  disputes  or  claims).
<PAGE>
(X)     CONDUCT  OF  CLAIMS

If:

(a)     a  third  party  makes  a  claim  or  begins  any proceedings, action or
investigation  (whether  civil, criminal or regulatory) against Chrystal Capital
or  a  Related  Company  or  threatens  to  do  so;  or

(b)     Chrystal Capital or a Related Company incurs any loss, liability, cost,
expense, charge or penalty directly or indirectly arising out of or in
connection with this agreement, the Objectives and/or a related appointment
(including for the avoidance of doubt any Losses to which Appendix 2 applies)
which enables Chrystal Capital or its Related Company to bring a claim or
proceedings against a third party,

Chrystal Capital shall have sole conduct in defending or making such claim or in
such  proceedings,  including  its settlement or compromise, in its own name, in
whatever  way  it  sees  fit.

The  Company hereby agrees on request and at its own expense to support Chrystal
Capital  in  relation  to  such  claim or proceedings, including by assisting in
investigating, preparing for or defending the same.  Chrystal Capital shall keep
the  Company  informed  of  the  progress of the claim or proceedings.  Chrystal
Capital  may  take  all  action necessary to comply with the terms of any of its
applicable  insurance  policies  or  as  its  insurers  may  require.

(Y)     LIMITATION  OF  LIABILITY

We  will  not  be  responsible  for any losses arising from the supply by you or
others  of  incorrect  or  incomplete information, or your or others' failure to
supply  any  appropriate  information or your failure to act on our advice which
leads  to  a loss or your failure to respond promptly to communications from us.

Subject to the requirements of any applicable law or regulation to the contrary,
the  liability  of  our company (including its staff and associated entities) in
respect  of  breach  of  contract  or  breach  of duty or fault or negligence or
otherwise whatsoever arising out of or in connection with the Services shall not
exceed  the  aggregate  amount  of  our  fees  earned  from  the  Objectives.

The  Company undertakes that it has not accepted and will not accept any express
financial  limitation  of liability from any of its other advisers in connection
with  the  Objectives.  If the Company were to accept any such limitation, then:
(i)  the  total  liability  of  Chrystal Capital or its Related Companies to the
Company in connection with any successful claims by the Company shall be reduced
so  as  not  to  exceed  the  total amount for which such person would have been
liable but for such limitation; and (ii) the Company shall as soon as reasonably
practicable  inform  Chrystal  Capital  that it has accepted such limitation and
shall  provide  written confirmation to Chrystal Capital in a form and substance
satisfactory  to  Chrystal  Capital  to  give  effect  to the provisions of this
paragraph  Y.

In  no  event  shall Chrystal Capital be liable to or required to compensate any
other  adviser  of  the  Company  with  the  Objectives.
<PAGE>
We  will not advise on the commercial merits of any transaction and will rely on
the Company's directors' commercial assessment of the Objectives. Nothing in the
advice  provided  to the Company should be construed as advice to proceed or not
to  proceed  with  the Objectives since ultimately this is a commercial decision
for  the  Company  and  its  directors.

Our duties and responsibilities under this agreement are limited solely to those
expressly  specified  in this agreement and do not include approving any part of
any  document  other  than  in  relation  to those parts for which we have given
express  written  consent.

(Z)     NON-CIRCUMVENTION

The  Company  shall  not  seek  to  circumvent  Chrystal  Capital by directly or
indirectly  contacting  any  Prospect  or  Placement Agent that Chrystal Capital
introduces  to  the  Company  in  connection  with  the Objectives or to solicit
business  in connection with the Objectives from such introductions for a period
of  two  (2)  years  from  the  date  of  this letter, regardless of the date of
termination  of  this  letter.

<PAGE>
                                   APPENDIX 2

                                   INDEMNITY

The Company hereby agrees and undertakes to indemnify and hold harmless Chrystal
Capital  and  its  Related  Companies  and  each  of their respective directors,
employees  and  advisers  (each  an  "INDEMNIFIED  PARTY"),  against  all losses
(including  direct  or indirect losses, loss of profits and loss of reputation),
claims,  demands,  proceedings,  damages,  costs,  charges,  expenses,  taxes,
penalties  and  other  liabilities,  whether  in  tort,  contract  or  otherwise
(together  "LOSSES"),  which  an  Indemnified  Party  may  suffer or incur which
directly  or  indirectly  arise  in  connection  with  or  relate  to:

(c)     the  actions  and advice and the provision of services by an Indemnified
Party  in  connection  with  the  Objectives;

(d)     any breach or alleged breach by the Company or its directors of their
obligations set out in this agreement;

(e)     any failure or alleged failure by the Company, its Related Companies or
any of their respective directors, employees or advisers to comply with
applicable law or regulation, including without limitation the Rules; and/or

(f)     the issue or approval of any financial promotion, or the making of any
announcement or the publication of any circular or other document on behalf of
or relating to the Company or the Objectives.

The Company hereby agrees and undertakes to reimburse each Indemnified Party for
all costs, charges and expenses (including without limitation all legal or other
professional  fees and expenses) incurred by the Indemnified Party in connection
with  any  claim,  action,  demand,  arbitration,  mediation,  proceedings  or
investigation  arising  from  or  connected  with  the  matters  referred  to in
sub-paragraphs  (a)  to  (d)  above,  whether  the  same  are actual, pending or
threatened (including those incurred in investigating, preparing for, disputing,
defending,  negotiating,  settling,  counter-claiming  or  pursuing  the same or
appealing  against  any  judgment,  award  or  decision  of any court, tribunal,
arbitrator  or regulatory or other authority) to which an Indemnified Party is a
party  or  is  otherwise involved, and whether or not resulting in any Losses on
the  part  of  any  Indemnified  Party.

If HM Revenue & Customs or any other taxing authority in any jurisdiction brings
into  any  charge  to taxation (or into any computation of income or profits for
the  purposes  of  any  charge  to  taxation)  and  any  sum  payable under this
indemnity, then the amount so payable shall be grossed up by such amount as will
ensure  that  after deduction of the taxation so chargeable there shall remain a
sum  equal  to  the  amount that would otherwise be payable under such indemnity
(such additional payments as are necessary to achieve this purpose being made by
the  Company  on  demand  from  Chrystal  Capital  from  time  to  time).
<PAGE>
The  Company  agrees  that  no  Indemnified Party shall owe any liability to the
Company  or its Related Companies (whether direct or indirect, in contract, tort
or  otherwise)  arising  from or relating in any way to the Objectives except to
the  extent  that any such liability is finally judicially determined by a court
of  competent  jurisdiction  in  England to have resulted from the fraud, wilful
default  or  gross  negligence of Chrystal Capital or its Related Companies or a
material  breach  by  such  person  of  the  Rules  or  this  agreement.

The  Company  further  acknowledges that no Indemnified Party shall be liable to
the  Company  for any statements, representations, or advice made or given by it
prior  to  the  date  of  this  agreement.

The  indemnity in favour of the Indemnified Parties contained in this Appendix 2
shall  not be limited by any other term or provision of this agreement and shall
be  in  addition to and not be construed to limit, affect or prejudice any other
right  or  remedy  available  to  Chrystal  Capital  or  any  Related  Company.

<PAGE>
                                   APPENDIX 3

                           FOR USE ON EACH FUND RAISE

                                OPTION AGREEMENT

                            DATED 30 September 2012

                           DISCOVERY ENERGY CORP. (1)
                                    - and -
                       CHRYSTAL CAPITAL PARTNERS LLP (2)

                                OPTION AGREEMENT
                                ----------------

<PAGE>
THIS  AGREEMENT  is  made  on  30  September  2012

BETWEEN

(1)     DISCOVERY  ENERGY  CORP.  (Incorporated  in  the  State of Nevada) whose
registered  office  is  at  Suite 1700, One Riverway Drive, Houston, Texas 77056
(the  "COMPANY").

(2)     CHRYSTAL  CAPITAL  PARTNERS LLP (Registered No. OC349574) whose business
address  is  at  New  Broad  Street House, 35 New Broad Street, London, EC2M 1NH
("CHRYSTAL  CAPITAL"  or  the  "PARTNERSHIP").

IT  IS  AGREED  as  follows:

I.     DEFINITIONS  AND  INTERPRETATIONS

i.     In  this  Agreement  (which  expression  shall  be  deemed to include the
       Schedule  hereto)  unless  the  context  otherwise  requires:

"CONDITION"          means  the  condition  set  out  in  clause  III.(i);

"THE  DIRECTORS"     means  the  board  of directors of the Company from time to
time;

"ENGAGEMENT  LETTER" means the Engagement Letter between the Company (1) and
                     the  Partnership  (2)  dated  30  September  2012;

"EXERCISE  PRICE"    means  the  price  per  Share  at which the Prospects will
                     invest as  agreed  by  the  Company  and  the  Partnership;

"FUND  RAISE"        has  the  same  meaning  as  defined in the Engagement
                     Letter;

"OPTION"             means  the  conditional  option  to subscribe for the
                     Option Shares granted  to  the  Partnership  pursuant  to
                     clause  II  (i);

"OPTION  NOTICE"     means  a  notice  exercising  the  Option given pursuant to
                     clause  III  (iv);

"OPTION  PERIOD"     means  the  period  commencing upon satisfaction of all the
                     Conditions  and  expiring  3  years  thereafter;

"POST  FUND  RAISE   means the gross amount of the proceeds of the Fund Raise
SHARE CAPITAL"       plus  the  pre  Fund  Raise  valuation  of  the  Company;

"OPTION SHARES"     means such number of Shares as calculated in accordance with
                    the  formula  set  out  in  clause  III  (ii);  and

"SHARES"            the  fully  paid shares with a par value $0.001 each in the
                    capital of  the  Company.

<PAGE>
II.     THE  OPTION

i.     In accordance with the terms of the Engagement Letter, the Company hereby
       grants  to  the Partnership the Option to subscribe or be issued with the
       Option Shares  at  the Exercise Price per Option Share during the Option
       Period subject to  and  in  accordance  with  the  terms  of  this
       Agreement.

ii.    The  Partnership  may  assign  or transfer in whole any of its rights or
       obligations  under  this  Agreement  to  any  member  of  the
       Partnership.

III.     EXERCISE  OF  THE  OPTION

i.     The  right  to  exercise  an  Option  is  conditional  upon  a successful
       completion  of  a  Fund  Raise.

ii.    The  number  of Option Shares shall be calculated as 7% (seven per cent)
       of the shares issued in each and every Fund Raise. For the avoidance of
       doubt and example  of  this  calculation  in  the  initial  Fund  Raise
       would  be:

       If  the Fund Raise is for the amount of $10,000,000 at a price of $0.25
       per share  so  a total share issuance of 40,000,000 shares then the
       number of  Option Shares  would  be  2,800,000  at  an  Exercise  Price
       of  $0.25  per  share.

iii.   The  Option is only capable of being exercised in whole (subject to the
       terms  of  this  Agreement  and satisfaction of the Condition) during the
       Option Period  unless  it  shall  have  lapsed  in  accordance  with  the
       terms of this Agreement.

iv.    The  Option  may be exercised by the Partnership (or such assignee under
       clause  II.(ii)  giving  notice in writing to the Company in the form set
       out in the  Schedule hereto.  The Option Notice must be accompanied by a
       remittance for the aggregate of the subscription monies payable in
       respect of the Option Shares to  be  subscribed  for  or  issued,
       calculated as the Exercise Price per Option Share.

v.     If  the  Option  or  any  part  of the Option is not exercised during the
       Option  Period,  the  Option  or  such part of the Option as remains
       unexercised shall  lapse  and  cease  to  have  any  further  effect.

vi.    Neither  the  Option  issued  pursuant to this Agreement, nor any of the
       Option  Shares  to  be  issued  pursuant  to the Option, shall be covered
       by the Discovery  Energy  Corp. 2012 Equity Incentive Plan. Consequently,
       the following customary  legend  shall  be  placed  on all stock
       certificates representing the Option  Shares:

       "THESE  SHARES  HAVE  NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF
       1933, AS AMENDED,  OR  UNDER  ANY  APPLICABLE  STATE LAW, AND THEY MAY
       NOT BE OFFERED FOR SALE,  SOLD,  TRANSFERRED, PLEDGED OR OTHERWISE
       DISPOSED OF WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND ANY
       APPLICABLE STATE LAW OR DELIVERY TO THE CORPORATION  OF AN OPINION OF
       LEGAL COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH  REGISTRATION  IS
       NOT  REQUIRED."

IV.     ALLOTMENT  OF  SHARES

i.     Subject  to  satisfaction  of  all  the  Condition the relevant number of
       Option  Shares  as  specified  in  the  Option  Notice  shall be allotted
       to the Partnership,  credited  as  fully  paid.

ii.    The  Company shall at all times keep available sufficient authorised but
       unissued  Shares  to  satisfy  an  exercise  of  the  Option.

iii.   The  Option  Shares  allotted  pursuant  to  this  Agreement  shall  be
       identical  to  and  rank  pari  passu  with  the  other  issued  Shares.

V.     VARIATION  OF  SHARE  CAPITAL

i.     In  the event of any variation of the share capital of the Company by way
       of  capitalisation,  rights issue, consolidation, sub division or
       reduction, the number  of Option Shares and the Exercise Price shall be
       adjusted in such manner as  the  auditors  for the time being of the
       Company shall in writing advise the Directors  to  be  in  their  opinion
       fair  and  reasonable.

ii.    As  soon  as reasonably practicable after making any such adjustment the
       Directors  shall  give  written  notice  thereof  to  the Partnership and
       at the written  request  of the Partnership and/or upon the surrender of
       this Agreement shall  either  endorse a memorandum thereon recording such
       adjustment (under the hand  of  a  Director)  and  return  the  same to
       the Partnership or execute and deliver to the Partnership a new agreement
       reflecting such adjustment but in all other  respects  incorporating  the
       terms  hereof.

VI.    NOTICES

       Notices  or  documents  required  to be given to the Partnership shall
       either be delivered by hand, sent by first class post or by facsimile to
       the Partnership's address  as  shown  above or to such other address in
       England as the Partnership may  designate by notice given in accordance
       with the provisions of this clause. Notices  or  documents required to be
       given to the Company shall be addressed to the  Secretary  of  the
       Company  and shall either be delivered by hand, sent by first  class
       post  or  by  facsimile  to  the registered office of the Company.
       Notices shall be deemed to have been served if delivered by hand when
       delivered, if  sent  by  first  class  post  48  hours  after  posting
       and if by facsimile transmission  when  despatched.

VII.     GENERAL

i.     Any  time,  date or period mentioned in this Agreement may be extended by
       agreement  between the parties, but as regards any time, date or period
       (whether or  not  extended  as  aforesaid)  time  shall  be  of  the
       essence.

ii.    Subject to the Engagement Letter, this Agreement supersedes any previous
       agreement  between  the parties in relation to the matters dealt with
       herein and represents  the  entire  agreement  and  understanding between
       the  parties in relation thereto.  No variation, modification or waiver
       of any provision of this Agreement  shall  be  effective  unless made by
       an express written agreement and signed  by  the  parties  who  are
       affected  thereby.

iii.   The parties shall, and shall use their respective reasonable endeavours
       to  procure  that  any necessary third parties shall do, execute and
       perform all such  further  agreements,  documents, assurances, acts and
       things as any of the parties  may reasonably require by notice in writing
       to the others to carry the provisions  of  this  Agreement  into  full
       force  and  effect.

iv.    No  neglect,  delay  or  indulgence  on  the part of any party hereto in
       enforcing  any  term  or  condition  of this Agreement shall operate as a
       waiver thereof.

v.     This  Agreement  shall  be  governed  by and construed in accordance with
       English  law  and the parties hereby submit to the exclusive jurisdiction
       of the English  Courts.

vi.    Each provision of this Agreement shall be construed separately and (save
       as  otherwise expressly  provided  herein)  none of the provisions hereof
       shall limit or govern the extent, application or construction of any
       other of them and notwithstanding  that any provision of this Agreement
       may prove to be illegal or unenforceable in whole or in part the other
       provisions of this Agreement and the remainder  of the provision in
       question shall continue in full force and effect.

vii.   Nothing  in  this  Agreement  will  create or confer any right or other
       benefits  on  or  in  favour  of any person who is not a party to this
       Agreement whether  pursuant  to  the  Contracts  (Rights  of  Third
       Parties)  Act 1999 or otherwise.

viii.  This  Agreement  may  be executed in any number of counterparts all of
       which  when  taken  together  shall  constitute  a  single  instrument.

This  Agreement has been executed and delivered on the date first written above.

<PAGE>

                                  THE SCHEDULE

                               NOTICE OF EXERCISE

TO:     Discovery  Energy  Corp.

For  the  attention  of: Keith Spickelmier, Executive Chairman & Keith McKenzie,
CEO

FROM:

1.     We  hereby  give  notice  to  Discovery  Energy Corp. that with immediate
       effect  on  your  receipt  of  this  notice we are exercising our right,
       granted pursuant  to  an  Option Agreement dated 30 September 2012, to
       subscribe for the Option Shares (such term being defined as it is in the
       said Option Agreement) in the capital of Discovery Energy Corp. at a
       total subscription price of $[     ], subject  however  to  the  terms
       of  the  said  Option  Agreement.

2.     We  enclose  herewith  a  cheque  for  the  sum of $[      ] in favour of
       Discovery  Energy  Corp.  and  crossed  "a/c  payee"  in  payment for the
       shares referred  to  in  paragraph  I.

Dated

                              Signed  for  and  on  behalf  of

                              Chrystal  Capital  Partners  LLP

<PAGE>

EXECUTED  as  an  AGREEMENT  by          )
DISCOVERY ENERGY CORP.                   )
by the signature of two duly             )
authorised  officers:                    )

                                         Keith  Spickelmier,  Chairman
                                         -----------------------------

                                         Keith  McKenzie,  CEO/Director
                                         ------------------------------

EXECUTED  as  an  AGREEMENT  by          )
CHRYSTAL  CAPITAL  PARTNERS  LLP         )
by  the  signature  of  all  of  its     )
partners:                                )

<PAGE>
------

                                   APPENDIX 4

                      NOTICE OF TREATMENT AS RETAIL CLIENT

The  Financial  Services  Authority Market Act 2000 ("FSMA") covers, inter alia,
promotion  of  potential  investments  in unlisted UK and European (EU) funds to
certain categories of potential investors. Some of these potential investors may
be  regulated  by  the  Financial Services Authority ("FSA"); some may be listed
companies, institutions, funds, trusts, pension schemes, investment schemes etc.
Others  may  be  categorised  as "CLIENTS" for regulatory purposes, as explained
further  below.  Some  may  be individuals, some not. Some may be experienced in
investments,  some  not.

On  the  basis  of  information  you have given us, we have categorised you as a
"RETAIL  CLIENT",  by reason of your experience and understanding in relation to
investments.  A  Retail  Client may be afforded the greatest level of protection
under  the  FSA  rules in comparison to the other deemed client classifications.

As  a  consequence of this categorisation, if you are able to meet the "ELIGIBLE
COMPLAINANT" classification and are dissatisfied with our services/ products you
may be entitled to make a claim under the Financial Ombudsman Services.
Similarly,  if  you  qualify as an "ELIGIBLE CLAIMANT" you may be able to make a
claim  under  the  Financial  Services  Compensation  Scheme.

<PAGE>

                                   APPENDIX 5

                              SHAREHOLDER REGISTER

[                      ]
<PAGE>

                                   APPENDIX 6

            [TO BE PLACED ON DISCOVERY ENERGY CORP HEADED NOTEPAPER]

To:  [LEGAL  ADVISOR  OF  Discovery  Energy  Corp]

[Date]

Dear  Sirs

FUND  RAISING

Pursuant  to  an  engagement  letter  entered into between Discovery Energy Corp
("the  Company") and Chrystal Capital Partners LLP ("Chrystal Capital") dated 30
September 2012 (the "Engagement Letter"), a copy of which is enclosed, we hereby
confirm  that  we  irrevocably  authorise  and  instruct  you  to:

1.     pay to Chrystal Capital, the Cash Success Fee as defined in paragraph 4.2
       of the Engagement Letter, by way of deduction.  Such payment will be made
       by you to Chrystal Capital immediately after you have received the
       proceeds of the Fund Raise;  and

2.     insert  in any agreement between a Prospect and the Company in connection
       with  the  Fund Raise (as defined in the Engagement Letter) a term
       substantially in  the  form  of:

"On  completion  of this [Subscription Agreement], the Company shall settle with
Chrystal  Capital  (or  as  it  may direct), the Cash Success Fees as defined in
paragraph 4.2 of the Engagement Letter dated 30 September 2012 between Discovery
Energy  and  Chrystal  Capital  Partners  LLP"

Yours  faithfully

For  and  on  behalf  of

Discovery  Energy  Corp

cc.  Chrystal  Capital  Partners  LLP

<PAGE>

                                   APPENDIX 6

                        RESTRICTED SHARE AWARD AGREEMENT

     THIS  RESTRICTED  SHARE  AWARD AGREEMENT (the "Award Agreement") is between
Discovery  Energy  Corp., a Nevada corporation ("Company"), and Chrystal Capital
Partners  LLP  ("Chrystal  Capital").

                                  WITNESSETH:

     WHEREAS,  the  Company and Chrystal Capital have entered into an engagement
agreement  (the "Engagement Agreement") pursuant to which Chrystal Capital is to
provide  to  the  Company  certain  services  including  those pertaining to the
raising  of  capital for the Company (all capitalized terms that are used herein
but  not  defined  shall  have  the  meanings ascribed to them in the Engagement
Agreement);  and

     WHEREAS, the Engagement Agreement requires the Company and Chrystal Capital
to  enter  into  this  Agreement  whereby Chrystal Capital receives a grant of a
stock  award  (a  "Stock  Award");  and

     NOW,  THEREFORE,  in  consideration  of the above premises, the Company and
Chrystal  Capital  agree  as  follows:

1.     GRANT  OF  STOCK  AWARD

     Subject  to  the  terms  and  conditions  set  forth herein, and for and in
consideration  of  services  heretofore provided and hereafter to be provided by
further  consideration,  a  Stock  Award consisting of a total of 6,472,425 (six
million, four hundred and seventy two thousand and four hundred and twenty five)
shares  of  the  Company's  common  stock,  par  value  $.001 per share ("Common
Stock").  For  purposes  of this Award Agreement, the date of grant of the Stock
Award  (the  "Date  of  Grant")  shall  be  30  September  2012.

2.     VESTING

     (a)     Vesting  of  Restricted  Shares.  Immediately  upon issuance of the
shares  comprising  the  Stock  Award, all 6,472,425 shares comprising the Stock
Award  (such  shares  being  referred to hereinafter as the "Restricted Shares")
shall  be  vested,  restricted  and subject to forfeiture in accordance with the
following  terms:

     (i)     During the period during which the restrictions provided for herein
remain  in  effect  (the  "Restriction  Period"),  Chrystal Capital shall not be
permitted  to  sell,  transfer,  pledge  or  assign  any  Restricted  Shares.

     (ii)     Except  as  otherwise  provided for herein, Chrystal Capital shall
have,  with respect to the Restricted Shares, all of the rights of a stockholder
of  the Company, including the right to vote the shares and the right to receive
any  cash  dividends.

     (iii)     The  restrictions  provided  for  herein  with  respect  to  the
Restricted  Shares  shall  lapse  as  follows:

          (A)     The  restrictions  on  all  6,472,425  Restricted Shares shall
lapse  immediately  after  the Company closes on a Fund Raise (other than a Fund
Raise  constituting  or involving one of the Pre-Existing Exceptions) during the
Exclusivity  Period.

          (B)     The  restrictions  on  3,236,213 Restricted Shares shall lapse
immediately  after  the Company closes on a Fund Raise by MIGO 45 days after the
Date  of  Grant  but  during  the  Exclusivity  Period.  Upon  the  lapse of the
restrictions  on  the  preceding  3,236,213  Restricted  Shares,  the  remaining
3,236,212  Restricted  Shares  shall  be  forfeited.

     (iv)     If  a  Fund  Raise  with  respect  to  which  restrictions  on the
Restricted Shares are to lapse pursuant to subsection (iii) immediately above is
not  completed  by the end of the Exclusivity Period, then all Restricted Shares
still  subject  to  restrictions  shall  be  forfeited  by  Chrystal  Capital.

     (b)     All  stock  certificates  representing  Restricted  Shares  issued
pursuant  to  this  Award  Agreement  shall be subject to the following legends:

"THESE  SHARES  HAVE  NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  OR  UNDER  ANY  APPLICABLE  STATE LAW, AND THEY MAY NOT BE OFFERED FOR
SALE,  SOLD,  TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE LAW OR DELIVERY TO THE
CORPORATION  OF AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE CORPORATION THAT
SUCH  REGISTRATION  IS  NOT  REQUIRED.

THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER
AND  POTENTIAL  FORFEITURE  PURSUANT  TO  THE PROVISIONS OF THE RESTRICTED SHARE
AWARD  AGREEMENT,  DATED  SEPTEMBER ____, 2012, BETWEEN THE COMPANY AND CHRYSTAL
CAPITAL  PARTNERS  LLP,  WHICH WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER OF
THIS  CERTIFICATE UPON RECEIPT BY THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS
OR REGISTERED OFFICE OF A WRITTEN REQUEST FROM THE HOLDER REQUESTING SUCH COPY."

     (c)     The  Company  shall  cause  the  certificate(s)  representing  the
Restricted  Shares  to  be  delivered  to  Chrystal  Capital's  attorneys  as  a
depository  for  safekeeping until the occurrence of an event leading to vesting
or  forfeiture.  Upon  the  execution  and  delivery  of  this  Award Agreement,
Chrystal  Capital  shall deliver to the Company a stock power (endorsed in blank
and medallion guaranteed) relating to the Restricted Shares in the form attached
hereto as Exhibit A (the "Stock Power), which authorizes the Company to transfer
to  the Company any and all forfeited Restricted Shares.  Upon the occurrence of
an  event  leading  to  vesting, the Company shall cause a new certificate to be
issued  without  the  legend  referring  to  this Award Agreement in the name of
Chrystal  Capital for the Restricted Shares thereupon becoming vested.  Upon the
occurrence  of  an event leading to forfeiture, Chrystal Capital shall cause its
attorneys  to return all certificate(s) representing the Restricted Shares to be
returned  to  the  Company.

3.     MISCELLANEOUS  TERMS

     (a)     Entire  Agreement:  Governing Law.  This Award Agreement constitute
the  entire  agreement  of the parties with respect to the subject matter hereof
and  supersede  in  their  entirety all prior undertakings and agreements of the
Company and Chrystal Capital with respect to the subject matter hereof, and this
Award  Agreement  may  not be amended except by means of a writing signed by the
Company and Chrystal Capital.  In the event of conflict between the terms of the
Engagement  Agreement  and  the terms of this Award Agreement, the terms of this
Award  Agreement  shall  control.  THIS AWARD AGREEMENT IS GOVERNED BY TEXAS LAW
EXCEPT  FOR  THAT  BODY  OF  LAW  PERTAINING  TO  CONFLICT  OF  LAWS.

     (b)     Warranties,  Representations  and  Covenants.  Chrystal  Capital
acknowledges  and  agrees that nothing in this Award Agreement shall confer upon
Chrystal Capital any right with respect to continuation of its engagement by the
Company,  nor shall it interfere in any way with Chrystal Capital's right or the
Company's  right to terminate Chrystal Capital's engagement or other services at
any  time,  with  or  without  cause,  as  provided in the Engagement Agreement.

     (c)     Anti-Dilution.  The  terms, provisions and conditions of this Award
Agreement  shall  be  appropriately  adjusted  in the event that the outstanding
shares  of  the Company's common stock shall be subdivided into a greater number
of  shares  or  combined  into  a smaller number of shares, or a dividend in the
Company's  common  stock  shall  be  paid  in  respect  of  such  common  stock.

                             [SIGNATURES TO FOLLOW]

IN  WITNESS WHEREOF, the parties hereto have executed this Award Agreement as of
the  ____  day  of  September  2012.

"COMPANY"                              "CHRYSTAL  CAPITAL"

DISCOVERY  ENERGY  CORP.,              CHRYSTAL  CAPITAL  PARTNERS  LLP

a  Nevada  corporation

By:__________________________          By:________________________________

Name:__________________________        Name:______________________________

Title:___________________________      Title:_______________________________

Address:     Discovery Energy Corp.    Address:     New Broad Street House

             Houston,  Texas  77056                 35  New  Broad  Street

                                                    London  EC2M  1NH

<PAGE>

                                   EXHIBIT A

     STOCK  POWER  AND  ASSIGNMENT

     FOR VALUE RECEIVED, Chrystal Capital Partners LLP hereby sells, assigns and
transfers  unto

____________________________________________________________________

_____________________________________  Shares  of  the Common Stock of Discovery

Energy Corp., a Nevada corporation, standing in his/her/its name on the Books of
said  corporation represented by Certificate(s) No. ______________ herewith, and
does  hereby  irrevocably  constitute  and  appoint  ___________________________
attorney to transfer the said stock on the Books of the within named corporation
with  full  power  of  substitution  in  the  premises.

     Dated  ___________________  _____,  2012

                              CHRYSTAL  CAPITAL  PARTNERS  LLP

                              By:________________________________

                              Name:______________________________

                              Title:_______________________________

In  Presence  of

______________________________

______________________________

 [Affix  Medallion  Guarantee  Here]
------------------------------------

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