Document:

<PAGE>

                                                                    Exhibit 4.30

                             SUBSCRIPTION AGREEMENT

ISSUER: Pine Valley Mining Corporation (TSXV: PVM)
        (the "Company" or "Pine Valley")

ISSUE:  Common shares ($0.90 per Share)

NUMBER OF SHARES SUBSCRIBED FOR:    3,333,334

TOTAL PURCHASE PRICE:               $3,000,000.60

NAME AND ADDRESS OF PURCHASER:

Name:                                  Address:
      ------------------------------            --------------------------------
                                                (Street Address)

                                                --------------------------------
                                                (City and Province or Country)

                                                --------------------------------
                                                (Postal Code)

ALTERNATE REGISTRATION INSTRUCTIONS FOR CERTIFICATES: If other than in the name
of the Purchaser:

Name:                                  Address:
      ------------------------------            --------------------------------
                                                (Street Address)

                                                --------------------------------
                                                (City and Province or Country)

                                                --------------------------------
                                                (Postal Code)

DELIVERY INSTRUCTIONS: The name and address (including contact name and
telephone number) of the person to whom the certificate representing the Shares
is to be delivered, if other than the Purchaser:

Name:                                  Address:
      ------------------------------            --------------------------------
                                                (Street Address)

                                                --------------------------------
                                                (City and Province or Country)

                                                --------------------------------
                                                (Postal Code)

PLACE A "O"OR "X" IN THE SPACES PROVIDED BELOW TO INDICATE IF THE SUBSCRIBER IS
AN 'INSIDER' OF PINE VALLEY OR A MEMBER OF THE 'PRO GROUP' AS SUCH TERMS ARE
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE.

Insider of Pine Valley   [ ]          Pro Group member  [ ]

DISCLOSE HERE THE PURCHASER'S CURRENT DIRECT AND INDIRECT HOLDINGS OF SHARES IN
THE CAPITAL OF THE COMPANY BEFORE GIVE EFFECT TO THE PRESENT SUBSCRIPTION:
_____________________ SHARES.

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                                       2

                            SUBSCRIPTION INSTRUCTIONS

1.    Carefully review and consider the terms and conditions of this
      Subscription Agreement.

2.    If you wish to proceed with a subscription for Shares, then you must
      complete all applicable portions of the Subscription Agreement, and
      deliver a completed and executed copy of this Subscription Agreement to:

                         PINE VALLEY MINING CORPORATION
                                 c/o Suite 3000
                            1055 West Georgia Street
                       Vancouver, British Columbia V6E 3R3
               ATTENTION: G. MACKENZIE, PRESIDENT (Fax: 604.682.4698)

      no later than noon (Vancouver time) on May 5, 2004.

3.    Complete the face page of this Subscription Agreement, including the
      sections requiring you to disclosed Insider and Pro Group Status, and your
      current holdings of shares of the Company.

4.    The Purchaser must complete, sign, and return with this Subscription
      Agreement: (i) a completed accredited investor certificate in the form
      attached as Schedule A to this Subscription Agreement;(ii) a
      Representation Letter in the form attached as Schedule C to this
      Subscription Agreement; and Exhibit 1 to Schedule C.

5.    Corporate (non-individual) purchasers must either complete and return with
      their Subscription Agreement a completed Form 4C TSX Venture Exchange
      Corporate Placee Registration, a copy of which is attached as Schedule B
      to this Subscription Agreement, or confirm to the Company that they
      already have a current Form 4C on file with the TSX Venture Exchange and
      provide a copy of such previously filed form.

6.    Retain copies of all documents for your records.

  WARNING: YOUR SUBSCRIPTION AGREEMENT MAY BE REJECTED AND YOU MAY BE EXCLUDED
  FROM THIS PRIVATE PLACEMENT IF YOU FAIL TO PROPERLY COMPLETE AND RETURN YOUR
SUBSCRIPTION AGREEMENT AND ANY SUPPORTING DOCUMENTS REQUIRED IN CONNECTION WITH
                               YOUR SUBSCRIPTION.

<PAGE>
                                       3

TO:        PINE VALLEY MINING CORPORATION

AND TO:    THE DIRECTORS THEREOF

1. SUBSCRIPTION. The undersigned (the "Purchaser") hereby tenders to Pine Valley
Mining Corporation (the "Company") this subscription offer which, upon
acceptance by the Company, will constitute an agreement of the Purchaser to
subscribe for, take up, purchase and pay for and, on the part of the Company, to
issue and sell to the Purchaser, the number of Shares (as defined below) set out
on page 1 hereof (the "Purchaser's Shares") at the price (the "Purchase Price")
of $0.90 per Share all on the terms and subject to the conditions set forth in
this Subscription Agreement (as defined below).

2. DEFINITIONS. In this Subscription Agreement, unless the context otherwise
requires:

   (a)   "Applicable Securities Laws" means, with respect to any jurisdiction or
         person, the securities legislation, rules, policies, instruments,
         notices and orders of such jurisdiction or applicable to that person,
         as the case may be;

   (b)   "B.C. Accredited Investor" means a person who qualifies as an
         "accredited investor" within the meaning of and as defined in
         Multilateral Instrument 45-103 - Capital Raising Exemptions in effect
         in British Columbia, and has signed and returned the certificate set
         out at Schedule A to this Subscription Agreement;

   (c)   "business day" means a day on which the Exchange is open for trading;

   (d)   "Closing" means the completion of the Private Placement;

   (e)   "Closing Date" means May 11, 2004 or such other date as the Company may
         determine provided such date is not prior to, or more than ten days
         after, receipt by the Company of TSXV Conditional Acceptance, and
         provided that such date must be no later than May 31, 2004;

   (f)   "Exchange" means the TSX Venture Exchange;

   (g)   "Exemptions" means the exemptions from the registration and prospectus
         or equivalent requirements under Applicable Securities Laws;

   (h)   "Private Placement" means the offering and sale of the Shares pursuant
         to the terms and conditions of this Subscription Agreement;

   (i)   "Purchaser" means the purchaser of Shares offered by the Company as
         identified on the first page hereof;

   (j)   "Shares" means Common shares without par value in the capital of the
         Company (and each one is referred to herein as a "Share");

   (k)   "Subscription Agreement" means this subscription agreement between the
         Purchaser and the Company in respect of the purchase and sale of Shares
         and includes all schedules attached hereto, as they may be amended or
         supplemented from time to time; and

   (l)   "TSXV Conditional Acceptance" means acceptance by the Exchange of the
         Private Placement, subject to filing copies of relevant documents and
         paying applicable fees.

3. PURCHASER'S REPRESENTATIONS AND WARRANTIES. The Purchaser represents and
warrants to the Company, as representations and warranties that are true as of
the date of this offer and will be true as of the date of this Subscription
Agreement and as of the Closing Date, that:

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                                       4

   (a)   if an individual, the Purchaser is of the age of majority and has the
         capacity and competence to enter into and be bound by this Subscription
         Agreement and all other agreements contemplated hereby and this
         Subscription Agreement constitutes a legal, valid and binding agreement
         enforceable against the Purchaser;

   (b)   if the Purchaser is not an individual, then:

         (i)    the Purchaser is a valid and subsisting corporation and is in
                good standing under the laws of the jurisdiction of its
                incorporation;

         (ii)   the Purchaser has the capacity and authority to execute and
                deliver this Subscription Agreement and to observe and perform
                its obligations hereunder;

         (iii)  this Subscription Agreement has been duly authorized, executed
                and delivered by the Purchaser and is a legal, valid and binding
                obligation of the Purchaser, enforceable against the Purchaser;
                and

         (iv)   the execution and delivery of this Subscription Agreement by the
                Purchaser will not result in the violation of, or constitute a
                default under, or conflict with or cause the acceleration of any
                obligation of the Purchaser under (A) any contract to which the
                Purchaser is a party or by which it is bound; (B) any provision
                of the constating documents of the Purchaser; or (C) any
                judgment, decree, order or award of any court, government body
                or arbitrator having jurisdiction over the Purchaser;

   (c)   RESIDENCE. The Purchaser is a resident of the Province of Ontario.

   (d)   GENERAL PURCHASER QUALIFICATIONS. Regardless of the Purchaser's
         jurisdiction of residence, the Purchaser is a B.C. Accredited Investor
         (Note: a resident of any jurisdiction may qualify as a "B.C. Accredited
         Investor" See the definition of "B.C. Accredited Investor" above and
         the requirements in Schedule A.);

   (e)   ONTARIO PURCHASER QUALIFICATIONS. The Purchaser is resident in or
         otherwise subject to applicable securities laws of Ontario, it is an
         "accredited investor" as defined in Ontario Securities Commission Rule
         45-501 entitled "Exempt Distributions" promulgated under the Securities
         Act (Ontario), and has concurrently executed and delivered a
         Representation Letter in the form attached as Schedule C to this
         Subscription Agreement and has initialled in Exhibit 1 thereto
         indicating that the Purchaser satisfies one of the categories of
         "accredited investor" set forth in such definition;

   (f)   ABSENCE OF ADVERTISEMENT. The offer and sale to the Purchaser of the
         Purchaser's Shares was not made through an advertisement of the Shares
         in printed media of general and regular paid circulation, radio or
         television or any other form of advertisement;

   (g)   NO UNDISCLOSED INFORMATION. The Purchaser's Shares are not being
         purchased by the Purchaser as a result of any material information
         concerning the Company that has not been publicly disclosed, and the
         Purchaser's decision to tender this offer and acquire the Purchaser's
         Shares has not been made as a result of any verbal or written
         representation as to fact or otherwise made by or on behalf of the
         Company or any other person, but is based entirely upon currently
         available public information concerning the Company.

   (h)   INVESTMENT SUITABILITY. The Purchaser, and any beneficial purchaser for
         whom or which it is acting has such knowledge and experience in
         financial and business affairs as to be capable of evaluating the
         merits and risks of the investment hereunder in the Purchaser's Shares
         and is able to bear the economic risk of loss of such investment.

4. RELIANCE UPON REPRESENTATIONS AND WARRANTIES. The Purchaser acknowledges that
the foregoing representations and warranties are made by it with the intent that
they may be relied upon by the Company and its legal counsel in determining its
eligibility or (if applicable) the eligibility of others on whose behalf it is
contracting hereunder to purchase Shares under Applicable Securities Laws. The
Purchaser further agrees that, by accepting the Purchaser's Shares, at the
Closing, it will be representing and warranting that the foregoing
representations and warranties are true as at the Closing and will survive the
completion of the sale of the Purchaser's Shares. The Company and its legal
counsel will be entitled to rely on the representations and warranties of the
Purchaser contained herein.

5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. By accepting this offer the
Company represents and warrants to the Purchaser as follows:

<PAGE>
                                       5

   (a)   the Company has been duly incorporated and organized and is a valid and
         subsisting Company under the laws of the Province of British Columbia,
         and is duly qualified to carry on business in the Province of British
         Columbia and in each other jurisdiction, if any, wherein the carrying
         out of the activities contemplated makes such qualifications necessary;

   (b)   the Company is a reporting issuer under the securities laws of each of
         British Columbia and Alberta;

   (c)   the Shares will, upon issue and delivery, be validly issued as fully
         paid and non-assessable;

   (d)   the Company has filed all forms, reports, documents and information
         required to be filed by it, whether pursuant to Applicable Securities
         Laws or otherwise, with the Exchange (or one of its predecessors) or
         the applicable securities regulatory authorities (the "Disclosure
         Documents")

   (e)   as of the time the Disclosure Documents were filed with the applicable
         securities regulators and on SEDAR (System for Electronic Document
         Analysis and Retrieval) (or, if amended or superseded by a filing prior
         to the date of this Subscription Agreement, then on the date of such
         filing): (i) each of the Disclosure Documents complied in all material
         respects with the requirements of the Applicable Securities Laws; and
         (ii) none of the Disclosure Documents contained any untrue statement of
         a material fact or omitted 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;

   (f)   the financial statements of the Company contained in the Disclosure
         Documents: (i) complied as to form in all material respects with the
         published rules and regulations under the Applicable Securities Laws;
         (ii) were reported in accordance with Canadian generally accepted
         accounting principles applied on a basis consistent with that of the
         preceding periods; and (iii) present fairly the consolidated financial
         position of the Company and its subsidiaries, if any, as of the
         respective dates thereof and the consolidated results of operations of
         the Company and its subsidiaries, if any, for the periods covered
         thereby;

   (g)   the outstanding Shares are listed and posted for trading on the
         Exchange;

   (h)   the Company has the corporate capacity and authority to execute and
         deliver this Subscription Agreement and to observe and perform its
         obligations hereunder;

   (i)   the Company has taken all necessary corporate action to authorize the
         execution, delivery and performance of this Subscription Agreement,
         and, upon acceptance by the Company, this Subscription Agreement will
         be a legal, valid and binding obligation of the Company enforceable
         against the Company;

   (j)   no order to cease trading in the securities of the Company, nor
         prohibiting the sale of such securities, is in effect against the
         Company or its directors, officers or promoters, and to the best of the
         Company's knowledge no investigations or proceedings for such purposes
         are pending or threatened that might give rise to such an order;

   (k)   there is no ongoing action, suit, proceeding, or claim, nor, to the
         best of the Company's knowledge, is there any application, complaint or
         investigation pending or threatened, before any court, regulatory body,
         governmental or non-governmental body against the Company, and the
         Company is not subject to any judgment, order, writ, injunction, decree
         or award of any governmental authority to which it is subject; and

   (l)   the Company has not made an assignment in bankruptcy nor has a receiver
         been appointed in respect of the Company's assets, and, to the best of
         the Company's knowledge, no proceedings have been commenced against the
         Company or are threatened to be commenced, that could result in the
         Company making an assignment in bankruptcy or a receiver being
         appointed in respect of the Company's assets.

6. RELIANCE UPON REPRESENTATIONS, AND WARRANTIES. The Company acknowledges that
the foregoing representations and warranties are made by it with the intent that
they may be relied upon by the Purchaser. The Company further agrees that, at
the Closing, it will be representing and warranting that the foregoing
representations and warranties are true as at the Closing and will survive the
completion of the sale of the Purchaser's Shares. The Purchaser will be

<PAGE>
                                       6

entitled to rely on the representations and warranties of the Company contained
herein and the Company will indemnify and hold harmless the Purchaser and its
legal counsel for any losses, claims, costs, expenses, damages or liabilities
they may suffer or incur which are caused by or arise from, directly or
indirectly, their reliance thereon.

7. ACKNOWLEDGEMENTS AND COVENANTS OF THE PURCHASER. The Purchaser hereby
acknowledges and agrees that:

   (a)   this subscription is irrevocable, unconditional and non-transferable;

   (b)   no prospectus has been filed by the Company with any of the securities
         regulatory authorities of Canada or the United States or in any
         International Jurisdiction in connection with the issuance of the
         Purchaser's Shares, no securities commission or similar regulatory
         authority has reviewed or passed on the merits of the Shares, and there
         is no government or other insurance covering the Shares;

   (c)   the Shares are being offered in reliance on Exemptions and, as a result
         of the Purchaser acquiring the Shares pursuant to those same
         Exemptions:

         (i)    certain protections rights and remedies provided by the
                Applicable Securities Laws, including statutory rights of
                rescission or damages, will not be available to the Purchaser;

         (ii)   the Purchaser may not receive information that might otherwise
                be required to be provided to the Purchaser under Applicable
                Securities Laws; and

         (iii)  the Company is relieved from certain obligations that would
                otherwise apply under Applicable Securities Laws;

   (d)   the Purchaser will notify the Company immediately of any change in any
         representation, warranty or other information relating to the Purchaser
         set forth herein which takes place prior to the Closing;

   (e)   Bull, Housser & Tupper has acted as legal counsel to the Company in
         connection with this Subscription Agreement and has not acted for the
         Purchaser, and the Purchaser is, in no way, relying on any advice
         sought from or given by Bull, Housser & Tupper in connection with this
         Subscription Agreement;

   (f)   the Purchaser is responsible for obtaining such legal advice as the
         Purchaser considers appropriate in connection with the execution,
         delivery and performance by the Purchaser of this Subscription
         Agreement and the transactions contemplated hereby;

   (g)   the Purchaser has conducted its own investigation with respect to the
         Company and the Shares and has received all information that it
         believes is necessary or appropriate in connection with its purchase of
         the Shares;

   (h)   there are risks associated with the purchase of the Shares; and

   (i)   the Company may make a notation on its records or give instructions to
         any transfer agent of the Shares in order to implement the restrictions
         on transfer set forth and described herein.

8. COVENANTS OF THE COMPANY. The Company covenants and agrees with the Purchaser
as follows:

   (a)   the Company will take all steps reasonably necessary to obtain the
         final consent of the Exchange to the Private Placement and will comply
         with all other regulatory requirements, requirements of the Exchange
         and requirements of all Applicable Securities Laws to the offering and
         sale of Shares to the Purchaser on a "private placement" basis as
         contemplated hereby; and

   (b)   the Company will promptly comply with all filing and other requirements
         of Applicable Securities Laws.

9. RESALE RESTRICTIONS. The Purchaser understands and acknowledges that the
Purchaser's Shares will be subject to certain resale restrictions under
Applicable Securities Laws, and that certificates representing the Shares will
bear certain legends to that effect. The Purchaser also acknowledges that it has
been advised to consult its own legal advisors with

<PAGE>
                                       7

respect to applicable resale restrictions and that it is solely responsible (and
the Company is not in any manner responsible) for complying with such
restrictions.

10. PAYMENT OF PURCHASE PRICE. Concurrent with the delivery of the certificates
representing the Purchaser's Shares, the Purchaser will deliver to the Company
or its agent, in Canadian funds, the aggregate Purchase Price for the
Purchaser's Shares in the form of a bank draft or certified cheque.

11. EXPENSES. The Purchaser will be responsible for its own expenses incurred in
connection with the issue and sale of the Purchaser's Shares.

12. CLOSING OF PURCHASE. The Closing will be completed by the Purchaser paying
the aggregate Purchase Price in accordance with Section 10. Coincident with
receipt of the aggregate Purchase Price delivered in accordance with this
Subscription Agreement, the Company will deliver to the Purchaser the
certificates representing the Purchaser's Shares registered in accordance with
the Purchaser's written instructions. The Purchaser acknowledges that
participation in the offering is subject to the acceptance of this Subscription
Agreement by the Company, the bank draft or certified cheque, as applicable,
representing payment of the Purchase Price for the Purchaser's Shares being
honoured upon presentation for payment, and TSXV Conditional Acceptance.

13. FURTHER ASSURANCES. The Purchaser will, promptly upon request by the
Company, provide the Company with such information and execute and deliver to
the Company such additional undertakings, questionnaires and other documents as
the Company may request in connection with the issue and sale of the Shares. The
Purchaser acknowledges and agrees that such undertakings, questionnaires and
other documents, when executed and delivered by the Purchaser, will form part of
and will be incorporated into this Subscription Agreement with the same effect
as if each constituted a representation and warranty or covenant of the
Purchaser hereunder in favour of the Company. The Purchaser consents to the
filing of such undertakings, questionnaires and other documents as may be
required to be filed with any stock exchange or securities regulatory authority
in connection with the transactions contemplated hereby.

14. INDEMNITY. The Purchaser agrees to indemnify and hold harmless the Company
and its respective directors, officers, employees, advisers and shareholders
from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all fees, costs and expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any claim, law suit, administrative proceeding or investigation whether
commenced or threatened) arising out of or based upon any representation or
warranty of the Purchaser contained herein or in any document furnished by the
Purchaser to the Company in connection herewith being untrue in any material
respect or any breach or failure by the Purchaser to comply with any covenant or
agreement made by the Purchaser herein or in any document furnished by the
Purchaser to the Company in connection herewith.

15. MODIFICATION. Neither this Subscription Agreement, nor any provision hereof,
will be modified, changed, discharged or terminated except by an instrument in
writing signed by the party against whom any waiver, change, discharge or
termination is sought.

16. ASSIGNMENT. Neither party will be permitted to assign this Subscription
Agreement, nor any rights or obligations hereunder, without the prior written
consent of the other party hereto. Any purported assignment without such consent
is not binding or enforceable against any party hereto.

17. TIME OF THE ESSENCE. Time will be of the essence of each provision of this
Subscription Agreement. If TSXV Conditional Acceptance has not been received
from the Exchange within 10 days from the date of acceptance hereof by the
Company, notwithstanding the other provisions of this Subscription Agreement, or
the Closing does not occur by the latest Closing Date permitted by the terms of
this Subscription Agreement, then this Subscription Agreement will be deemed to
have terminated and will be of no further force and effect.

18. MISCELLANEOUS. The agreement resulting from the acceptance of this offer by
the Company contains the whole agreement between the Company and the Purchaser
in respect of the subject matter hereof and there are no warranties,
representations, terms, conditions or collateral agreements, express, implied or
statutory, other than as expressly set forth herein and in any amendments
hereto. This Subscription Agreement may be executed in any number of
counterparts, each of which when delivered, either in original or facsimile
form, will be deemed to be an original and all of which together will constitute
one and the same document.

<PAGE>
                                       8

19. ENUREMENT. This Subscription Agreement enures to the benefit of and binds
the parties and their respective heirs, executors, administrators, successors
and permitted assigns.

20. CURRENCY. Except as otherwise specifically provided, all references in this
Subscription Agreement to amounts of money are expressed in Canadian dollars.

21. DELIVERY BY FAX. Any party may deliver an executed copy of this Subscription
Agreement by fax but that party will immediately dispatch by delivery in person
to the other parties an originally executed copy of this Subscription Agreement.

22. SEVERABILITY. Each provision of this Subscription Agreement is several. If
any provision of this Subscription Agreement is or becomes illegal, invalid or
unenforceable in any jurisdiction, the illegality, invalidity or
unenforceability of that provision will not affect: (a) the legality, validity
or enforceability of the remaining provisions of this Subscription Agreement, or
(b) the legality, validity or enforceability of that provision in any other
jurisdiction, except that if: (c) on the reasonable construction of this
Subscription Agreement as a whole, the applicability of the other provision
presumes the validity and enforceability of the particular provision, the other
provision will be deemed also to be invalid or unenforceable, and (d) as a
result of the determination by a court of competent jurisdiction that any part
of this Subscription Agreement is unenforceable or invalid and, as a result of
this Section, the basic intentions of the parties in this Subscription Agreement
are entirely frustrated, the Company and the Purchaser will use all reasonable
efforts to amend, supplement or otherwise vary this Subscription Agreement to
confirm their mutual intention in entering into this Subscription Agreement.

23. GOVERNING LAW AND VENUE. This Subscription Agreement, any amendment,
addendum or supplement hereto, and all other documents relating hereto will be
governed by and construed in accordance with the laws of the Province of British
Columbia, and the federal laws of Canada applicable therein, governing contracts
made and to be performed wholly therein, and without reference to its principles
governing the choice or conflict of laws. The parties hereto irrevocably attorn
and submit to the exclusive jurisdiction of the courts of the Province of
British Columbia, sitting in the City of Vancouver, with respect to any dispute
related to or arising from this Subscription Agreement.

IN WITNESS WHEREOF the undersigned has executed this Subscription Agreement on
this ______ day of _________________________, 2004.

-------------------------------------    ---------------------------------------
Signature of Purchaser                   Name of Purchaser
(if an individual)                       (if not an individual)

                                         Per:
-------------------------------------         ----------------------------------
Name of Purchaser (if an individual)          Authorized Signatory

                                              ----------------------------------
                                              Title

<PAGE>
                                       9

                                   ACCEPTANCE

The Company hereby accepts the above subscription and the Company warrants and
covenants to the Purchaser that the representations and warranties made by the
Company in this Subscription Agreement are true and correct in all material
respects as of this date and that the Purchaser will have the benefit of and be
entitled to rely on such representations and warranties.

DATED this ____ day of _____________, 2004.

PINE VALLEY MINING CORPORATION

Per:
     ------------------------------------
         Authorized Signing Officer

<PAGE>

                                   SCHEDULE A

         CERTIFICATE OF ACCREDITED INVESTOR (BRITISH COLUMBIA / ALBERTA)

In connection with the purchase of Shares of Pine Valley Mining Corporation (the
"Company"), the undersigned Purchaser hereby represents, warrants and certifies
to the Company that the Purchaser is an accredited investor within the meaning
of Multilateral Instrument 45-103 - Capital Raising Exemptions in effect in
British Columbia and Alberta in the category indicated below:

       [Mark appropriate box]

[  ]   (a)  a Canadian financial institution, or an authorized foreign bank
            listed in Schedule III of the Bank Act (Canada);

[  ]   (b)  the Business Development Bank of Canada incorporated under the
            Business Development Bank of Canada Act (Canada);

[  ]   (c)  an association under the Cooperative Credit Associations Act
            (Canada) located in Canada;

[  ]   (d)  a subsidiary of any person or company referred to in paragraphs (a)
            to (c), if the person or company owns all of the voting securities
            of the subsidiary, except the voting securities required by law to
            be owned by directors of that subsidiary;

[  ]   (e)  a person or company registered under the securities legislation of a
            jurisdiction of Canada as an adviser or dealer, other than a limited
            market dealer registered under the Securities Act (Ontario) or the
            Securities Act (Newfoundland and Labrador);

[  ]   (f)  an individual registered or formerly registered under the securities
            legislation, or under the securities legislation of another
            jurisdiction of Canada, as a representative of a person or company
            referred to in paragraph (e);

[  ]   (g)  the government or Canada or a province, or any crown corporation or
            agency of the government of Canada or a province;

[  ]   (h)  a municipality, public board or commission in Canada;

[  ]   (i)  any national, federal, state, provincial, territorial or municipal
            government of or in any foreign jurisdiction, or any instrumentality
            or agency of that government;

[  ]   (j)  a pension fund that is regulated by either the Office of the
            Superintendent of Financial Institutions (Canada) or a provincial
            pension commission or similar regulatory authority;

[  ]   (k)  a registered charity under the Income Tax Act (Canada);

[  ]   (l)  an individual who, either alone or jointly with a spouse,
            beneficially owns, directly or indirectly, financial assets(1)
            having an aggregate realizable value that before taxes, but net of
            any related liabilities, exceeds $1,000,000;

[  ]   (m)  an individual whose net income before taxes exceeded $200,000 in
            each of the two most recent years or whose net income before taxes
            combined with that of a spouse exceeded $300,000 in each of the two
            most recent years and who, in either case, reasonably expects to
            exceed that net income level in the current year;

[  ]   (n)  a corporation, limited partnership, limited liability partnership,
            trust or estate, other than a mutual fund or non-redeemable
            investment fund, that had net assets of at least $5,000,000 as shown
            on its most recently prepared financial statements;

[  ]   (o)  a mutual fund or non-redeemable investment fund that, in the local
            jurisdiction, distributes its securities only to persons or
            companies that are accredited investors;

[  ]   (p)  a mutual fund or non-redeemable investment fund that, in the local
            jurisdiction, distributes its securities under a prospectus for
            which the regulator has issued a receipt;

[  ]   (q)  an entity organized in a foreign jurisdiction that is analogous to
            any of the entities referred to in paragraphs (a) through (e) and
            paragraph (j) in form and function; or

[  ]   (r)  a person or company in respect of which all of the owners of
            interests, direct or indirect, legal or beneficial, are persons or
            companies that are accredited investors.

--------
1 Financial assets means cash and securities.

<PAGE>

         The Purchaser acknowledges that the Company is relying on this
Certificate to determine its suitability as a purchaser of Shares of the
Company. The Purchaser agrees that the representations and warranties contained
herein will survive any issuance of the Shares.

         Certified this _____________ day of _______________________, 2004.

                                       Purchaser:
                                                  ------------------------------

                                       Signature:
                                                  ------------------------------

                                       Name and Title of Signatory
                                       (if applicable)

                                                  ------------------------------

                                                  ------------------------------
<PAGE>
                                   SCHEDULE B

                                                   [LOGO - TSX VENTURE EXCHANGE]

                                     FORM 4C
                       CORPORATE PLACEE REGISTRATION FORM

Where subscribers to a Private Placement are not individuals, the following
information about the placee must be provided. This Form will remain on file
with the Exchange. The corporation, trust, portfolio manager or other entity
(the "Placee") need only file it on one time basis, and it will be referenced
for all subsequent Private Placements in which it participates. If any of the
information provided in this Form changes, the Placee must notify the Exchange
prior to participating in further placements with Exchange listed companies. If
as a result of the Private Placement, the Placee becomes an Insider of the
Issuer, Insiders of the Placee are reminded that they must file a Personal
Information Form (2A) or, if applicable, Declarations, with the Exchange.

1.    Placee Information:

      (a)   Name:

              ----------------------------------------------------------

      (b)   Complete Address:

            ------------------------------------------------------------

            ------------------------------------------------------------

      (c)   Jurisdiction of Incorporation or Creation:

            ------------------------------------------------------------

2.    (a)   Is the Placee purchasing securities as a portfolio manager
            (Yes/No)? __________

      (b)   Is the Placee carrying on business as a portfolio manager outside of
            Canada (Yes/No)? __________

3.    If the answer to 2(b) above was "Yes", the undersigned certifies that:

      (a)   It is purchasing securities of an Issuer on behalf of managed
            accounts for which it is making the investment decision to purchase
            the securities and has full discretion to purchase or sell
            securities for such accounts without requiring the client's express
            consent to a transaction;

      (b)   it carries on the business of managing the investment portfolios of
            clients through discretionary authority granted by those clients (a
            "portfolio manager" business) in ____________________
            [jurisdiction], and it is permitted by law to carry on a portfolio
            manager business in that jurisdiction;

      (c)   it was not created solely or primarily for the purpose of purchasing
            securities of the Issuer;

      (d)   the total asset value of the investment portfolios it manages on
            behalf of clients is not less than $20,000,000; and

      (e)   it has no reasonable grounds to believe, that any of the directors,
            senior officers and other insiders of the Issuer, and the persons
            that carry on investor relations activities for the Issuer has a
            beneficial interest in any of the managed accounts for which it is
            purchasing

4.    If the answer to 2(a). above was "No", please provide the names and
      addresses of control persons of the Placee:

<PAGE>

<Table>
<S>                      <C>                  <C>                 <C>
NAME                     CITY                 PROVINCE OR STATE   COUNTRY

-----------------------  -------------------  ------------------  -------------

-----------------------  -------------------  ------------------  -------------

-----------------------  -------------------  ------------------  -------------

-----------------------  -------------------  ------------------  -------------

-----------------------  -------------------  ------------------  -------------

</Table>

The undersigned acknowledges that it is bound by the provisions of applicable
Securities Law, including provisions concerning the filing of insider reports
and reports of acquisitions (See for example, sections 87 and 111 of the
Securities Act (British Columbia) and sections 176 and 182 of the Securities Act
(Alberta).

<PAGE>

ACKNOWLEDGEMENT - PERSONAL INFORMATION

"Personal Information" means any information about an identifiable individual,
and includes information contained in sections 1, 2 and 4, as applicable, of
this Form.

The undersigned hereby acknowledges and agrees that it has obtained the express
written consent of each individual to:

(a)   the disclosure of Personal Information by the undersigned to the Exchange
      (as defined in Appendix 6B) pursuant to this Form; and

(b)   the collection, use and disclosure of Personal Information by the Exchange
      for the purposes described in Appendix 6B or as otherwise identified by
      the Exchange, from time to time.

Dated at                                  on                                .
         --------------------------------    -------------------------------

                                       -----------------------------------------
                                       (Name of Purchaser - please print)

                                       -----------------------------------------
                                       (Authorized Signature)

                                       -----------------------------------------
                                       (Official Capacity - please print)

                                       -----------------------------------------
                                       (please print name of individual whose
                                       signature appears above)

                          THIS IS NOT A PUBLIC DOCUMENT

<PAGE>
                                   SCHEDULE C

                              REPRESENTATION LETTER

                       (FOR ONTARIO ACCREDITED INVESTORS)

TO:   PINE VALLEY MINING CORPORATION (THE "COMPANY")

In connection with the purchase of common shares ("SHARES") of the Company by
the undersigned subscriber or, if applicable, the principal on whose behalf the
undersigned is purchasing as agent (the "SUBSCRIBER" for the purposes of this
Schedule C), the Subscriber hereby represents, warrants, covenants and certifies
to the Company that:

1. The Subscriber is resident in Ontario or is otherwise subject to applicable
securities laws of the Province of Ontario;

2. The Subscriber is purchasing the Shares as principal for its own account;

3. The Subscriber is an "accredited investor" within the meaning of Ontario
Securities Commission Rule 45-501 promulgated under the Securities Act (Ontario)
by virtue of satisfying the indicated criterion as set out in Exhibit 1 to this
Representation Letter; and

4. Upon execution of this Schedule C by the Subscriber, this Schedule C will be
incorporated into and form a part of the Subscription Agreement.

Dated:  _______________________, 2004

                                       Print name of Subscriber

                                       By:
                                           -------------------------------------
                                                      Signature

                                       -----------------------------------------
                                       Print name of Signatory (if different
                                       from Subscriber)

                                       -----------------------------------------
                                       Title

              IMPORTANT: PLEASE INITIAL THE APPLICABLE PROVISION IN
                           EXHIBIT 1 ON THE NEXT PAGES

<PAGE>
                                    EXHIBIT 1

                                  TO SCHEDULE C

NOTE: THE SUBSCRIBER MUST INITIAL BESIDE THE APPLICABLE PORTION OF THE
DEFINITION BELOW.

ACCREDITED INVESTOR - (defined in Ontario Securities Commission Rule 45-501)
means:

______ (a)  a bank listed in Schedule I or II of the Bank Act (Canada), or an
            authorized foreign bank listed in Schedule III of the Bank Act
            (Canada);

______ (b)  the Business Development Bank incorporated under the Business
            Development Bank Act (Canada);

______ (c)  a loan corporation or trust corporation registered under the Loan
            and Trust Corporations Act (Ontario) or under the Trust and Loan
            Companies Act (Canada), or under comparable legislation in any other
            jurisdiction;

______ (d)  a co-operative credit society, credit union central, federation of
            caisses populaires, credit union or league, or regional caisse
            populaire, or an association under the Cooperative Credit
            Associations Act (Canada), in each case, located in Canada;

______ (e)  a company licensed to do business as an insurance company in any
            jurisdiction;

______ (f)  a subsidiary entity of any person or company referred to in
            paragraph (a), (b), (c), (d) or (e), where the person or company
            owns all of the voting shares of the subsidiary entity;

______ (g)  a person or company registered under the Securities Act (Ontario) or
            securities legislation in another jurisdiction as an adviser or
            dealer, other than a limited market dealer;

______ (h)  the government of Canada or of any jurisdiction, or any crown
            corporation, instrumentality or agency of a Canadian federal,
            provincial or territorial government;

______ (i)  any Canadian municipality or any Canadian provincial or territorial
            capital city;

______ (j)  any national, federal, state, provincial, territorial or municipal
            government of or in any foreign jurisdiction, or any instrumentality
            or agency thereof;

______ (k)  a pension fund that is regulated by either the Office of the
            Superintendent of Financial Institutions (Canada) or a provincial
            pension commission or similar regulatory authority;

______ (l)  a registered charity under the Income Tax Act (Canada);

______ (m)  an individual who beneficially owns, or who together with a spouse
            beneficially own, financial assets having an aggregate realizable
            value that, before taxes but net of any related liabilities, exceeds
            $1,000,000;

______ (n)  an individual whose net income before taxes exceeded $200,000 in
            each of the two most recent years or whose net income before taxes
            combined with that of a spouse exceeded $300,000 in each of those
            years and who, in either case, has a reasonable expectation of
            exceeding the same net income level in the current year;

<PAGE>

______ (o)  an individual who has been granted registration under the Securities
            Act (Ontario) or securities legislation in another jurisdiction as a
            representative of a person or company referred to in paragraph (g),
            whether or not the individual's registration is still in effect;

______ (p)  a promoter of the issuer or an affiliated entity of a promoter of
            the issuer;

______ (q)  a spouse, parent, brother, sister, grandparent or child of an
            officer, director or promoter of the issuer;

______ (r)  a person or company that, in relation to the issuer, is an
            affiliated entity or a person or company referred to in clause (c)
            of the definition of distribution in subsection 1(1) of the
            Securities Act (Ontario);

______ (s)  an issuer that is acquiring securities of its own issue;

______ (t)  a company, limited liability company, limited partnership, limited
            liability partnership, trust or estate, other than a mutual fund or
            non-redeemable investment fund, that had net assets of at least
            $5,000,000 as reflected in its most recently prepared financial
            statements;

______ (u)  a person or company that is recognized by the Ontario Securities
            Commission as an accredited investor;

______ (v)  a mutual fund or non-redeemable investment fund that, in Ontario,
            distributes its securities only to persons or companies that are
            accredited investors;

______ (w)  a mutual fund or non-redeemable investment fund that, in Ontario,
            distributes its securities under a prospectus for which a receipt
            has been granted by the Director (as defined in the Securities Act
            (Ontario)), or, if it has ceased distribution of its securities, has
            previously distributed its securities in this manner;

______ (x)  a fully managed account if it is acquiring a security that is not a
            security of a mutual fund or non-redeemable investment fund;

______ (y)  an account that is fully managed by a trust corporation registered
            under the Loan and Trust Corporations Act (Ontario) or under the
            Trust and Loan Companies Act (Canada), or under comparable
            legislation in any other jurisdiction;

______ (z)  an entity organized outside of Canada that is analogous to any of
            the entities referred to in paragraphs (a) through (g) and paragraph
            (k) in form and function; or

______ (aa) a person or company in respect of which all of the owners of
            interests, direct or indirect, legal or beneficial, are persons or
            companies that are accredited investors.

NOTE: THE SUBSCRIBER MUST INITIAL BESIDE THE APPLICABLE PORTION OF THE ABOVE
DEFINITION.

FOR THE PURPOSES OF THIS SCHEDULE C (INCLUDING EXHIBIT 1):

(a) "COMPANY" means any corporation, incorporated association, incorporated
syndicate or other incorporated organization;

(b) "CONTROL PERSON" means any person, company or combination of persons or
companies holding a sufficient number of any securities of the issuer to affect
materially the control of the issuer, but any holding of any person, company or
combination of persons or companies holding more than 20% of the outstanding
voting securities of the issuer, in the absence of evidence to the contrary,
will be deemed to affect materially the control of the issuer;

<PAGE>

(c) "DIRECTOR" where used in relation to a person, includes a person acting in a
capacity similar to that of a director of a company;

(d) "ENTITY" means a company, syndicate, partnership, trust or unincorporated
organization;

(e) "FINANCIAL ASSETS" means cash, securities, or any contract of insurance or
deposit or evidence thereof that is not a security for the purposes of the
Securities Act (Ontario);

(f) "FOREIGN JURISDICTION" means a country other than Canada or a political
subdivision of a country other than Canada;

(g) "FULLY MANAGED ACCOUNT" means an investment portfolio account of a client
established in writing with a portfolio advisor who makes investment decisions
for the account and has full discretion to trade in securities of the account
without requiring the client's express consent to a transaction;

(h) "INDIVIDUAL" means a natural person, but does not include a partnership,
unincorporated association, unincorporated syndicate, unincorporated
organization, trust, or a natural person in his or her capacity as trustee,
executor, administrator or other legal personal representative;

(i) "JURISDICTION" means a province or territory of Canada except where used in
the term "foreign jurisdiction";

(j) "MUTUAL FUND" includes (i) an issuer, (x) whose primary purpose is to invest
money provided by its security holders, and (y) whose securities entitle the
holder to receive on demand, or within a specified period after demand, an
amount computed by reference to the value of a proportionate interest in the
whole or in a part of the net assets, including a separate fund or trust
account, of the issuer, or (ii) an issuer or class of issuers that is designated
as a mutual fund by an order of the Ontario Securities Commission in the case of
a single issuer or otherwise in a regulation which is made for the purposes of
this definition, but does not include an issuer or a class of issuer that is
designated not to be a mutual fund by an order of the Ontario Securities
Commission in the case of a single issuer or otherwise in a regulation which is
made for the purposes of the definition of "mutual fund" under the Securities
Act (Ontario);

(k) "NON-REDEEMABLE INVESTMENT FUND" means an issuer:

      (i) whose primary purpose is to invest money provided by its
      securityholders;

      (ii) that does not invest for the purpose of exercising effective control,
      seeking to exercise effective control, or being actively involved in the
      management of the issuers in which it invests, other than other mutual
      funds or non-redeemable investment funds; and

      (iii) that is not a mutual fund;

(l) "OFFICER" means the chair, any vice-chair of the board of directors, the
president, any vice president, the secretary, the assistant secretary, the
treasurer, the assistant treasurer, and the general manager of a company, and
any other person designated an officer of a company by by-law or similar
authority, or any individual acting in a similar capacity on behalf of an issuer
or registrant;

(m) "PERSON" means an individual, partnership, unincorporated association,
unincorporated syndicate, unincorporated organization, trust, trustee, executor,
administrator, or other legal representative;

(n) "PORTFOLIO ADVISER" means

      (i) a portfolio manager; or

<PAGE>

      (ii) a broker or investment dealer exempted from registration as an
      adviser under subsection 148(1) of the Regulation made under the
      Securities Act (Ontario) if that broker or investment dealer is not exempt
      from the by-laws or regulations of the Toronto Stock Exchange or the
      Investment Dealers' Association of Canada referred to in that subsection;

(o) "PORTFOLIO MANAGER" means an adviser registered for the purpose of managing
the investment portfolio of clients through discretionary authority granted by
the clients;

(p) "PROMOTER" means (i) a person or company who, acting alone or in conjunction
with one or more other persons, companies or a combination thereof, directly or
indirectly, has taken the initiative in founding, organizing or substantially
reorganizing the business of the issuer, or (ii) a person or company who, in
connection with the founding, organizing or substantial reorganizing of the
business of the issuer, directly or indirectly, receives in consideration of
services or property, or both services and property, 10% or more of any class of
securities of the issuer or 10% or more of the proceeds from the sale of any
class of securities of a particular issue, but a person or company who receives
such securities or proceeds either solely as underwriting commissions or solely
in consideration of property will not be deemed a promoter within the meaning of
the definition of "promoter" under the Securities Act (Ontario) if such person
or company does not otherwise take part in founding, organizing or substantially
reorganizing the business;

(q) "RELATED LIABILITIES" means liabilities incurred or assumed for the purpose
of financing the acquisition or ownership of financial assets and liabilities
that are secured by financial assets; and

(r) "SPOUSE", in relation to an individual, means another individual to whom
that individual is married, or another individual of the opposite sex or the
same sex with whom that individual is living in a conjugal relationship outside
marriage.

AFFILIATED ENTITIES

(a) A person or company is considered to be an affiliated entity of another
person or company if one is a subsidiary entity of the other, or if both are
subsidiary entities of the same person or company, or if each of them is
controlled by the same person or company.

CONTROL

(b) A person or company is considered to be controlled by a person or company
if: (i) in the case of a person or company, (x) voting securities of the first
mentioned person or company carrying more than 50% of the votes for the election
of directors are held, otherwise than by way of security only, by or for the
benefit of, the other person or company, and (y) the votes carried by the
securities are entitled, if exercised, to elect a majority of the directors of
the first-mentioned person or company, (ii) in the case of a partnership that
does not have directors, other than a limited partnership, the second-mentioned
person or company holds more than 50% of the interests in the partnership; or
(iii) in the case of a limited partnership, the general partner is the
second-mentioned person or company.

SUBSIDIARIES

(a) A person or company is considered to be a subsidiary entity of another
person or company if: (i) it is controlled by, (x) that other, or (y) that other
and one or more persons or companies each of which is controlled by that other,
or (z) two or more persons or companies, each of which is controlled by that
other, or (ii) it is a subsidiary entity of a person or company that is the
other's subsidiary entity.

                All monetary references are in Canadian Dollars.<PAGE>

                                                                    Exhibit 4.31

                         PINE VALLEY MINING CORPORATION
                                 (THE "COMPANY")

                      AMENDED & RESTATED SHARE OPTION PLAN

                        DATED FOR REFERENCE JULY 14, 2004

                                    ARTICLE 1
                           PURPOSE AND INTERPRETATION

PURPOSE

1.1 The purpose of this Plan will be to advance the interests of the Company by
encouraging equity participation in the Company through the acquisition of
Common Shares of the Company. It is the intention of the Company that this Plan
will at all times be in compliance with the rules and policies of the TSX
Venture Exchange (or "TSX Venture") (the "TSX Venture Policies") and any
inconsistencies between this Plan and the TSX Venture Policies whether due to
inadvertence or changes in TSX Venture Policies will be resolved in favour of
the latter.

DEFINITIONS

1.2 In this Plan:

AFFILIATE means a company that is a parent or subsidiary of the Company, or that
is controlled by the same entity as the Company;

ASSOCIATE has the meaning assigned by the Securities Act;

BOARD means the board of directors of the Company or any committee thereof duly
empowered or authorized to grant options under this Plan;

CHANGE OF CONTROL includes situations where after giving effect to the
contemplated transaction and as a result of such transaction:

(i) any one Person holds a sufficient number of voting shares of the Company or
resulting company to affect materially the control of the Company or resulting
company, or,

(ii) any combination of Persons, acting in concert by virtue of an agreement,
arrangement, commitment or understanding, hold in total a sufficient number of
voting shares of the Company or its successor to affect materially the control
of the Company or its successor,

where such Person or combination of Persons did not previously hold a sufficient
number of voting shares to affect materially control of the Company or its
successor. In the absence of evidence to the contrary, any Person or combination
of Persons acting in concert by virtue of an agreement, arrangement, commitment
or understanding, holding more than 20% of the voting

<PAGE>
                                       2

shares of the Company or its successor is deemed to materially affect the
control of the Company or its successor;

COMMON SHARES means common shares without par value in the capital of the
Company providing such class is listed on the TSX Venture;

COMPANY means the Corporation named at the top hereof and includes, unless the
context otherwise requires, all of its subsidiaries or affiliates and successors
according to law;

CONSULTANT means a Person or Consultant Company, other than an Employee, Officer
or Director that:

(i) provides on an ongoing bona fide basis, consulting, technical, managerial or
like services to the Company or an Affiliate of the Company, other than services
provided in relation to a Distribution;

(ii) provides the services under a written contract between the Company or an
Affiliate and the Person or the Consultant Company;

(iii) in the reasonable opinion of the Company, spends or will spend a
significant amount of time and attention on the business and affairs of the
Company or an Affiliate of the Company; and

(iv) has a relationship with the Company or an Affiliate that enables the Person
or Consultant Company to be knowledgeable about the business and affairs of the
Company;

CONSULTANT COMPANY means for a Person consultant, a company or partnership of
which the Person is an employee, shareholder or partner;

DIRECTORS means the directors of the Company as may be elected from time to
time;

DISCOUNTED MARKET PRICE has the meaning assigned by Policy 1.1 of the TSX
Venture Policies;

DISINTERESTED SHAREHOLDER APPROVAL means approval by a majority of the votes
cast by all the Company's shareholders at a duly constituted shareholders'
meeting, excluding votes attached to shares beneficially owned by Service
Providers or their Associates;

DISTRIBUTION has the meaning assigned by the Securities Act, and generally
refers to a distribution of securities by the Company from treasury;

EFFECTIVE DATE for an Option means the date of grant thereof by the Board;

EMPLOYEE means:

(i) a Person who is considered an employee under the Income Tax Act (i.e. for
whom income tax, employment insurance and CPP deductions must be made at
source);

<PAGE>
                                       3

(ii) a Person who works full-time for the Company or its subsidiary providing
services normally provided by an employee and who is subject to the same control
and direction by the Company over the details and methods of work as an employee
of the Company, but for whom income tax deductions are not made at source; or

(iii) a Person who works for the Company or its subsidiary on a continuing and
regular basis for a minimum amount of time per week providing services normally
provided by an employee and who is subject to the same control and direction by
the Company over the details and methods of work as an employee of the Company,
but for whom income tax deductions need not be made at source;

EXERCISE PRICE means the amount payable per Common Share on the exercise of an
Option, as determined in accordance with the terms hereof,

EXPIRY DATE means the day on which an Option lapses as specified in the Option
Commitment therefor or in accordance with the terms of this Plan;

INSIDER means:

(i) an insider as defined in the TSX Venture Policies or as defined in
securities legislation applicable to the Company;

(ii) an Associate of any person who is an Insider by virtue of Section (i)
above;

INVESTOR RELATIONS ACTIVITIES has the meaning assigned by Policy 1.1 of the TSX
Venture Policies, and means generally any activities or communications that can
reasonably be seen to be intended to or be primarily intended to promote the
merits or awareness of or the purchase or sale of securities of the Company;

LISTED SHARES means the number of issued and outstanding shares of the Company
that have been accepted for listing on the TSX Venture, but excluding dilutive
securities not yet converted into Listed Shares;

MANAGEMENT COMPANY EMPLOYEE means a Person employed by another person or a
corporation providing management services to the Company which are required for
the ongoing successful operation of the business enterprise of the Company, but
excluding a corporation or Person engaged primarily in Investor Relations
Activities;

OFFICER means a duly appointed senior officer of the Company;

OPTION means the right to purchase Common Shares granted hereunder to a Service
Provider;

OPTION COMMITMENT means the notice of grant of an Option delivered by the
Company hereunder to a Service Provider and substantially in the form of
Schedule A hereto;

<PAGE>
                                       4

OPTIONED SHARES means Common Shares that may be issued in the future to a
Service Provider upon the exercise of an Option;

OPTIONEE means the recipient of an Option hereunder;

OUTSTANDING SHARES means at the relevant time, the number of outstanding Common
Shares of the Company from time to time;

PARTICIPANT means a Service Provider that becomes an Optionee;

PERSON means a company or an individual;

PLAN means this Share Option Plan, the terms of which are set out herein or as
may be amended;

PLAN SHARES means the total number of Common Shares which may be reserved for
issuance as Optioned Shares under the Plan as provided in Section 2.2;

REGULATORY APPROVAL means the approval of the TSX Venture and any other
securities regulatory authority that may have lawful jurisdiction over the Plan
and any Options issued hereunder;

SECURITIES ACT means the Securities Act, R.S.B.C. 1996, c. 418, as amended from
time to time;

SERVICE PROVIDER means a Person who is a bona fide Director, Officer, Employee,
Management Company Employee or Consultant, and also includes a company, of which
100% of the share capital is beneficially owned by one or more Person Service
Providers;

SHARE COMPENSATION ARRANGEMENT means any Option under this Plan but also
includes any other stock option, stock option plan, employee stock purchase plan
or any other compensation or incentive mechanism involving the issuance or
potential issuance of Common Shares to a Service Provider;

SHAREHOLDERS APPROVAL means approval by a majority of the votes cast by eligible
shareholders at a duly constituted shareholders' meeting;

TSX VENTURE means the TSX Venture Exchange and any successor thereto; and

TSX VENTURE POLICIES means the rules and policies of the TSX Venture as amended
from time to time.

<PAGE>
                                       5

                                    ARTICLE 2
                                SHARE OPTION PLAN

ESTABLISHMENT OF SHARE OPTION PLAN

2.1 There is hereby established a Share Option Plan to recognize contributions
made by Service Providers and to create an incentive for their continuing
assistance to the Company and its Affiliates. Unless otherwise agreed by the
holders thereof, any share options granted by the Company before the date of
this Plan, are not included hereunder or affected hereby.

MAXIMUM PLAN SHARES

2.2 The maximum aggregate number of Plan Shares that may be reserved for
issuance under the Plan is equal to 10% of the issued and outstanding Common
Shares at the time of the Option grant, unless this Plan is amended pursuant to
the requirements of the TSX Venture Policies.

ELIGIBILITY

2.3 Options to purchase Common Shares may be granted hereunder to Service
Providers from time to time by the Board. Service Providers that are corporate
entities will be required to undertake in writing not to effect or permit any
transfer of ownership or option of any of its shares, nor issue more of its
shares (so as to indirectly transfer the benefits of an Option), as long as such
Option remains outstanding, unless the written permission of the TSX Venture and
the Company is obtained.

OPTIONS GRANTED UNDER THE PLAN

2.4 All Options granted under the Plan will be evidenced by an Option Commitment
in the form attached as Schedule A, showing the number of Optioned Shares, the
term of the Option, a reference to vesting terms, if any, and the Exercise
Price.

2.5 Subject to specific variations approved by the Board, all terms and
conditions set out herein will be deemed to be incorporated into and form part
of an Option Commitment made hereunder.

LIMITATIONS ON ISSUE

2.6 Subject to Section 2.9, the following restrictions on issuances of Options
are applicable under the Plan:

(a) no Service Provider can be granted an Option if that Option would result in
the total number of Options, together with all other Share Compensation
Arrangements granted to such Service Provider in the previous 12 months,
exceeding 5% of the Listed Shares (unless the Company is classified as a Tier 1
Issuer by the TSX Venture and has obtained Disinterested Shareholder Approval
under Section 2.9(a)(iii) to do so);

<PAGE>
                                       6

(b) no Options can be granted under the Plan if the Company is designated
"Inactive" (as defined in TSX Venture Policies) by the TSX Venture;

(c) the aggregate number of Options granted to Service Providers conducting
Investor Relations Activities in any 12-month period must not exceed 2% of the
Listed Shares, calculated at the time of grant, without the prior consent of TSX
Venture; and

(d) the aggregate number of options granted to any one Consultant in any
12-month period must not exceed 2% of the Listed Shares, calculated at the time
of grant, without the prior consent of TSX Venture.

OPTIONS NOT EXERCISED

2.7 In the event an Option granted under the Plan expires unexercised or is
terminated by reason of dismissal of the Optionee for cause or is otherwise
lawfully cancelled prior to exercise of the Option, the Optioned Shares that
were issuable thereunder will be returned to the Plan and will be eligible for
re-issue.

POWERS OF THE BOARD

2.8 The Board will be responsible for the general administration of the Plan and
the proper execution of its provisions, the interpretation of the Plan and the
determination of all questions arising hereunder. Without limiting the
generality of the foregoing, the Board has the power to

(a) allot Common Shares for issuance in connection with the exercise of Options;

(b) grant Options hereunder;

(c) subject to Regulatory Approval, amend, suspend, terminate or discontinue the
Plan, or revoke or alter any action taken in connection therewith, except that
no general amendment or suspension of the Plan will, without the written consent
of all Optionees, alter or impair any Option previously granted under the Plan
unless as a result of a change in TSX Venture Policies or the Company's tier
classification thereunder;

(d) delegate all or such portion of its powers hereunder as it may determine to
one or more committees of the Board, either indefinitely or for such period of
time as it may specify, and thereafter each such committee may exercise the
powers and discharge the duties of the Board in respect of the Plan so delegated
to the same extent as the Board is hereby authorized so to do; and

(e) may in its sole discretion amend this Plan (except for previously granted
and outstanding Options) to reduce the benefits that may be granted to Service
Providers (before a particular Option is granted) subject to the other terms
hereof.

<PAGE>
                                       7

TERMS OR AMENDMENTS REQUIRING DISINTERESTED SHAREHOLDER APPROVAL

2.9 The Company will be required to obtain Disinterested Shareholder Approval
prior to any of the following actions becoming effective:

(a) the Plan, together with all of the Company's previously established and
outstanding stock option plans or grants, could result at any time in:

      (i) the aggregate number of shares reserved for issuance under stock
      options granted to Insiders exceeding 10% of the Listed Shares;

      (ii) the number of Optioned Shares issued to Insiders within a one-year
      period exceeding 10% of the Listed Shares; or,

      (iii) in the case of a Tier 1 Issuer only, the issuance to any one
      Optionee, within a 12-month period, of a number of shares exceeding 5% of
      Listed Shares; or

(b) any reduction in the Exercise Price of an Option previously granted to an
Insider.

                                    ARTICLE 3
                         TERMS AND CONDITIONS OF OPTIONS

EXERCISE PRICE

3.1 The Exercise Price of an Option will be set by the Board at the time such
Option is allocated under the Plan, and cannot be less than the Discounted
Market Price.

TERM OF OPTION

3.2 The term of each Option will be determined by the Board, provided that an
Option can be exercisable for a maximum of 10 years from the Effective Date for
a Tier 1 Company, or five years from the Effective Date for a Tier 2 Company.

OPTION AMENDMENT

3.3 Subject to Section 2.9(b), the Exercise Price of an Option may be amended
only if at least six (6) months have elapsed since the later of the date of
commencement of the term of the Option, the date the Company's shares commenced
trading on the TSX Venture, or the date of the last amendment of the Exercise
Price.

3.4 An Option must be outstanding for at least one year before the Company may
extend its term, subject to the limits contained in Section 3.2.

3.5 Any proposed amendment to the terms of an Option must be approved by the TSX
Venture prior to the exercise of such Option.

<PAGE>
                                       8

VESTING OF OPTIONS

3.6 Subject to Section 3.7, vesting of Options is otherwise at the discretion of
the Board, and will generally be subject to:

(a) the Service Provider remaining employed by or continuing to provide services
to the Company or any of its subsidiaries and Affiliates as well as, at the
discretion of the Board, achieving certain milestones which may be defined by
the Board from time to time or receiving a satisfactory performance review by
the Company or its subsidiary or affiliate during the vesting period; or

(b) remaining as a Director of the Company or any of its subsidiaries or
Affiliates during the vesting period.

3.7 If the Company is a Tier 2 Issuer and the Plan Shares exceed 10% of the
Listed Shares, then any Options granted under the Plan will vest in accordance
with the vesting schedule attached as Schedule B and may be exercised only after
vesting.

VESTING OF OPTIONS GRANTED FOR INVESTOR RELATIONS ACTIVITIES

3.8 Subject to Section 3.7, Options granted to Consultants conducting Investor
Relations Activities will vest:

(a) over a period of not less than 12 months as to 25% on the date that is three
months from the date of grant, and a further 25% on each successive date that is
three months from the date of the previous vesting; or

(b) such longer vesting period as the Board may determine.

VARIATION OF VESTING PERIODS

3.9 At the time an Option is granted which carries vesting provisions, the Board
may vary such vesting provisions provided in Section 3.7 and Section 3.8,
subject to Regulatory Approval.

OPTIONEE CEASING TO BE DIRECTOR, EMPLOYEE OR SERVICE PROVIDER

3.10 No Option may be exercised after the Service Provider has left the
employ/office or has been advised his services are no longer required or his
service contract has expired, except as follows:

(a) in the case of the death of an Optionee, any vested Option held by him at
the date of death will become exercisable by the Optionee's lawful personal
representatives, heirs or executors until the earlier of one year after the date
of death of such Optionee and the date of expiration of the term otherwise
applicable to such Option;

<PAGE>
                                       9

(b) Options granted to any Service Provider must expire within 30 days after the
date the Optionee ceases to be employed with or provide services to the Company,
but only to the extent that such Optionee was vested in the Option at the date
the Optionee ceased to be so employed or to provide services to the Company; and

(c) in the case of an Optionee being dismissed from employment or service for
cause, such Optionee's Options, whether or not vested at the date of dismissal
will immediately terminate without right to exercise same.

NON ASSIGNABLE

3.11 Subject to Section 3.10(a), all Options will be exercisable only by the
Optionee to whom they are granted and will not be assignable or transferable.

ADJUSTMENT OF THE NUMBER OF OPTIONED SHARES

3.12 The number of Common Shares subject to an Option will be subject to
adjustment in the events and in the manner following:

(a) in the event of a subdivision of Common Shares as constituted on the date
hereof, at any time while an Option is in effect, into a greater number of
Common Shares, the Company will thereafter deliver at the time of purchase of
Optioned Shares hereunder, in addition to the number of Optioned Shares in
respect of which the right to purchase is then being exercised, such additional
number of Common Shares as result from the subdivision without an Optionee
making any additional payment or giving any other consideration therefor;

(b) in the event of a consolidation of the Common Shares as constituted on the
date hereof, at any time while an Option is in effect, into a lesser number of
Common Shares, the Company will thereafter deliver and an Optionee will accept,
at the time of purchase of Optioned Shares hereunder, in lieu of the number of
Optioned Shares in respect of which the right to purchase is then being
exercised, the lesser number of Common Shares as result from the consolidation;

(c) in the event of any change of the Common Shares as constituted on the date
hereof, at any time while an Option is in effect, the Company will thereafter
deliver at the time of purchase of Optioned Shares hereunder the number of
shares of the appropriate class resulting from the said change as an Optionee
would have been entitled to receive in respect of the number of Common Shares so
purchased had the right to purchase been exercised before such change;

(d) in the event of a capital reorganization, reclassification or change of
outstanding equity shares (other than a change in the par value thereof) of the
Company, a consolidation, merger or amalgamation of the Company with or into any
other company or a sale of the property of the Company as or substantially as an
entirety at any time while an Option is in effect, an Optionee will thereafter
have the right to purchase and receive, in lieu of the Optioned Shares
immediately theretofore purchasable and receivable upon the exercise of the
Option, the kind and amount of share and other securities and property
receivable upon such capital reorganization, reclassification, change,
consolidation, merger, amalgamation or sale which the

<PAGE>
                                       10

holder of a number of Common Shares equal to the number of Optioned Shares
immediately theretofore purchasable and receivable upon the exercise of the
Option would have received as a result thereof. The subdivision or consolidation
of Common Shares at any time outstanding (whether with or without par value)
will not be deemed to be a capital reorganization or a reclassification of the
capital of the Company for the purposes of this Section 3.12(d);

(e) an adjustment will take effect at the time of the event giving rise to the
adjustment, and the adjustments provided for in this Section are cumulative;

(f) the Company will not be required to issue fractional shares in satisfaction
of its obligations hereunder. Any fractional interest in a Common Share that
would except for the provisions of this Section 3.12(f), be deliverable upon the
exercise of an Option will be cancelled and not be deliverable by the Company;
and

(g) if any questions arise at any time with respect to the Exercise Price or
number of Optioned Shares deliverable upon exercise of an Option in any of the
events set out in this Section 3.12, such questions will be conclusively
determined by the Company's auditors, or, if they decline to so act, any other
firm of Chartered Accountants, in Vancouver, British Columbia (or in the city of
the Company's principal executive office) that the Company may designate and who
will have access to all appropriate records and such determination will be
binding upon the Company and all Optionees.

                                    ARTICLE 4
                       COMMITMENT AND EXERCISE PROCEDURES

OPTION COMMITMENT

4.1 Upon grant of an Option hereunder, an authorized officer of the Company will
deliver to the Optionee an Option Commitment detailing the terms of such Options
and upon such delivery the Optionee will be subject to the Plan and have the
right to purchase the Optioned Shares at the Exercise Price set out therein
subject to the terms and conditions hereof.

MANNER OF EXERCISE

4.2 An Optionee who wishes to exercise his Option may do so by delivering:

(a) a written notice to the Company specifying the number of Optioned Shares
being acquired pursuant to the Option; and

(b) cash or a certified cheque payable to the Company for the aggregate Exercise
Price for the Optioned Shares being acquired.

<PAGE>
                                       11

DELIVERY OF CERTIFICATE AND HOLD PERIODS

4.3 As soon as practicable after receipt of the notice of exercise described in
Section 4.2 and payment in full for the Optioned Shares being acquired, the
Company will direct its transfer agent to issue a certificate to the Optionee
for the appropriate number of Optioned Shares. Such certificate issued will bear
a legend stipulating any resale restrictions required under applicable
securities laws. Further, if the Company is a Tier 2 Issuer, or the Exercise
Price is set below the then current market price of the Common Shares on the TSX
Venture, the certificate will also bear a legend stipulating that the Optioned
Shares are subject to a four-month TSX Venture hold period commencing the date
of the Option Commitment.

                                    ARTICLE 5
                                     GENERAL

EMPLOYMENT AND SERVICES

5.1 Nothing contained in the Plan will confer upon or imply in favour of any
Optionee any right with respect to office, employment or provision of services
with the Company, or interfere in any way with the right of the Company to
lawfully terminate the Optionee's office, employment or service at any time
pursuant to the arrangements pertaining to same. Participation in the Plan by an
Optionee will be voluntary.

NO REPRESENTATION OR WARRANTY

5.2 The Company makes no representation or warranty as to the future market
value of Common Shares issued in accordance with the provisions of the Plan or
to the effect of the Income Tax Act (Canada) or any other taxing statute
governing the Options or the Common shares issuable thereunder or the tax
consequences to a Service Provider. Compliance with applicable securities laws
as to the disclosure and resale obligations of each Participant is the
responsibility of such Participant and not the Company.

INTERPRETATION

5.3 The Plan will be governed and construed in accordance with the laws of the
Province of British Columbia.

AMENDMENT OF THE PLAN

5.4 The Board reserves the right, in its absolute discretion, to at any time
amend, modify or terminate the Plan with respect to all Common Shares in respect
of Options which have not yet been granted hereunder. Any amendment to any
provision of the Plan will be subject to any necessary Regulatory Approvals
unless the effect of such amendment is intended to reduce (but not to increase)
the benefits of this Plan to Service Providers.

<PAGE>

                                   SCHEDULE A

                                SHARE OPTION PLAN

                                OPTION COMMITMENT

Notice is hereby given that, effective this - day of -, 200- (the "Effective
Date") Pine Valley Mining Corporation (the "Company") has granted to - (the
"Service Provider"), an Option to acquire - Common Shares ("Optioned' Shares")
up to 5:00 p.m. Vancouver Time on the - day of -, 200- (the "Expiry Date") at a
Exercise Price of Cdn$- per share.

At the date of grant of the Option, the Company is classified as a Tier -
company under TSX Venture Policies.

Optioned Shares will vest and may be exercised as follows:

- in accordance with the vesting provisions set out in Schedule B of the Plan

or

- as follows: -

The grant of the Option evidenced hereby is made subject to the terms and
conditions of the Company's Share Option Plan, the terms and conditions of which
are hereby incorporated herein.

To exercise your Option, deliver a written notice specifying the number of
Optioned Shares you wish to acquire, together with cash or a certified cheque
payable to the Company for the aggregate Exercise Price, to the Company. A
certificate for the Optioned Shares so acquired will be issued by the transfer
agent as soon as practicable thereafter and will bear a minimum four month
non-transferability legend from the date of this Option Commitment. [A Tier 1
Company may grant stock options without a hold period, provided the exercise
price of the options is set at or above the market price of the Company's shares
rather than below.]

The Company and the Service Provider represent that the Service Provider under
the terms and conditions of the Plan is a bona fide [EMPLOYEE/
CONSULTANT/MANAGEMENT COMPANY EMPLOYEE] - of the Company, entitled to receive
Options under TSX Venture Exchange Policies.

PINE VALLEY MINING CORPORATION

-------------------------------
Authorized Signatory

<PAGE>

                                   SCHEDULE B

                                SHARE OPTION PLAN

                                VESTING SCHEDULE

1. Options granted pursuant to the Plan to Directors, Officers and all Employees
employed by the Company for a period of more than six months at the time the
Option is granted will vest as follows:

(a) 1/3 of the total number of Options granted will vest six months after the
date of grant;

(b) a further 1/3 of the total number of Options granted will vest one year
after the date of grant; and

(c) the remaining 1/3 of the total number of Options granted will vest eighteen
months after the date of grant.

2. Options granted pursuant to the Plan to an Employee who has been employed by
the Company for a period of less than six months at the time the Option is
granted will vest as follows:

a) 1/3 of the total number of Options granted will vest one year after the date
of grant;

b) a further 1/3 of the total number of Options granted will vest eighteen
months after the date of grant; and

c) the remaining 1/3 of the total number of Options granted will vest two years
after the date of grant.

3. Options granted to Consultants retained by the Company pursuant to a short
term contract or for a specific project with a finite term, will be subject to
such vesting provisions determined by the Board of Directors of the Company at
the time the Option Commitment is made, subject to Regulatory Approval.

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