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Filed by Automated Filing Services Inc. (604)609-0244 - Shoshone Silver Mining Co. - Exhibit 10.4

EXHIBIT 10.4

MINING LEASE AGREEMENT

The Mining Lease Agreement (“Agreement”) is made and entered
  into by and between Shoshone Silver Mining Co., an Idaho corporation,
  and Sterling Mining Co., an Idaho corporation.

RECITALS

	A. 	Shoshone is the owner of and in possession of certain unpatented
      mining claims situated in Shoshone County, Idaho described in Exhibit A
      attached to and by this reference incorporated in this agreement. 
	 	 
	B. 	Shoshone desires to grant to Sterling certain rights in and to a
      portion of two (2) unpatented mining claims. 
	 	 
	C. 	Sterling desires to examine the mineral potential of a portion of two
      (2) unpatented mining claims and possibly to develop commercial mines
      thereon. 

NOW, THEREFORE, in consideration of their mutual promises, the
parties agree as follows:

	1. 	Definitions: The following defined terms, wherever
      used in this Agreement, shall have the meanings described below: 
	 	 	 
		1.1. 	“Effective Date” shall mean January 19, 2004. 
	 	 	 
		1.2. 	“Shoshone” shall mean Shoshone Silver Mining Co. 
	 	 	 
		1.3. 	“Sterling” shall mean Sterling Mining Co. 
	 	 	 
		1.4. 	“Lease Year” shall mean each one (1) year period following the
      Effective Date and each anniversary of the Effective Date. 
	 	 	 
		1.5. 	“Minerals” shall mean gold, silver, platinum, antimony, mercury,
      copper, lead, zinc, and all other mineral elements and mineral compounds,
      and geothermal resources, whether the same are known to exist on the
      Property or are discovered on the Property after the Effective Date and
      regardless of the method of extraction, mining, or processing the same,
      whether known to exist or invented or developed after the Effective Date.
    
	 	 	 
		1.6. 	“Exploration and Mining Operations” shall mean every kind of work done
      on or in respect of the Property or the product derived from the same
      including, but not limited to, the work of assessment; geophysical,
      geochemical and geological surveys; studies and mapping; drilling,
      tunneling and shaft-sinking. 
	 	 	 
		1.7. 	“Net Proceeds” shall mean the net proceeds calculation as provided for
      in Exhibit B of this Agreement. 
	 	 	 
		1.8. 	“Ore” shall mean materials from the Property, the nature and
      composition of which, in the sole judgment of Sterling justifies either
      (a) mining or removing from place and shipping and selling the same, or
      delivering the same to a processing plant for physical or chemical
      treatment; or (b) leaching in place. 

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	 	 1.9. 	 “Product” shall mean: (a) all Ore shipped and sold prior to
      treatment; and (b) all concentrates, precipitates and products produced
      by or for Sterling from Ore. 
	 	 	 
	 	 1.10. 	 “Property” shall mean a portion of an unpatented mining claim
      described in Exhibit A of this Agreement. 
	 	 	 
	 	 1.11. 	 “Waste” shall mean all earth, rock or any other material mined
      or removed from the Property during the term of this Agreement, but which
      is not Ore. 

	
2. 		
Grant of Exploration Privilege, Leases, Uses and Water Rights:	
	 	 	 
		
2.1. 		
Grant of Exploration Privilege: Subject to the terms and conditions of this Agreement and to the extent permitted by applicable federal, state and local laws, regulations and ordinances, Shoshone grants to Sterling the exclusive right and
privilege to enter on the Property for the purposes of exploration and prospecting for minerals, mineral substances, metals, ore-bearing materials and rocks of every kind, including the right of ingress and egress for personnel, machinery,
equipment, supplies and products and the right to use so much of the surface and water located thereon as may be reasonable needed for such purposes.	
	 	 	 
		
2.2. 		
Lease: Subject to the terms and conditions of this Agreement and to the extent permitted by applicable federal, state and local laws, regulations and ordinances, Shoshone leases exclusively to Sterling the Property for the purposes of
development, production, removal and sale of all Minerals, mineral substances, metals, ore-bearing materials and rocks of every kind. The rights subject to this Agreement include all the right, title and interest of Shoshone in the Property, lands
and mining claims described in this Agreement, including, but not limited to, the surface and subsurface, all Ores, Minerals, mineral elements and compounds, and mineral rights; all water and water rights; geothermal resources and geothermal water,
in, upon and under the Property; all of the interests of Shoshone in all options, contracts, easements and rights-of-way reserved or granted in, upon or pertaining to the Property; and all tenements, hereditaments and appurtenances.	
	 	 	 
		
2.3. 		
Uses: Sterling is granted the right, in so far as Shoshone may lawfully grant the right, to use the Property including, but without being limited to, the full right, authority and privilege of placing and using excavations, open pit mines,
injection and production wells, openings, shafts, ditches and drains, and of constructing, erecting, maintaining, using and, at its election, removing any and all buildings, structures, plants, roadways, pumps, pipelines, electrical power lines and
facilities, stockpiles, waste piles, heap leach pads, tailings ponds and facilities, settling ponds, and all other improvements, property and fixtures for mining, removing, beneficiating, concentrating, smelting, extracting, leaching (in place or
otherwise), refining and shipping of Ores, Minerals or Product, or for any incidental activities, whether presently contemplated or known to be used in the mining, extraction, production or processing of Minerals, water or geothermal resources, or
energy resources, or to any of the rights or privileges of Sterling hereunder. Sterling is further	

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			granted the right, insofar as Shoshone lawfully may
      grant the right, to divert streams, to remove lateral and subjacent
      supports, to use, cave, subside, consume, or destroy the surface of any
      part thereof, to deposit earth, rocks, waste lean Ore and materials on any
      part of the Property, to leach the same, and to commit waste. 
	 	 	 
		2.4. 	Water Rights: Shoshone leases to Sterling all of Shoshone’s
      water rights appurtenant to the Property. Subject to the regulations of
      the state in which the Property is situated concerning the appropriation
      and taking of water, Sterling shall have the right to appropriate and use
      water, to drill wells for the water on the Property and to lay and
      maintain all necessary water lines as may be required by Sterling in its
      operations on the Property. 
	 	 	 
	3. 	Relationship of the Parties: 
	 	 	 
		3.1. 	Limitation: Sterling’s performance of its duties and
      obligations under this Agreement shall not obligate Sterling to perform
      any additional services to Shoshone. Sterling may, without notice to
      Shoshone, explore, conduct geological, geochemical and geophysical
      investigations, sample, drill or otherwise explore for, in the manner and
      to the extent that Sterling, in its sole discretion, deems advisable, to
      locate and develop Ores, Minerals and Metal in and on the Property.
      Sterling may, in its sole discretion and without notice to Shoshone
      terminate its exploration, development, mining, and processing activities
      on the Property and commence reclamation as required by applicable laws,
      regulations and the terms and conditions of any governmental plan of
      operations, permit, license or approval. Only the express duties and
      obligations described in this Agreement are binding upon Sterling. 
	 	 	 
		3.2. 	No Partnership: This Agreement shall not be deemed to
      constitute any party, in its capacity as such, the partner, agent or legal
      representative of any other party, or to create any partnership, mining
      partnership or other partnership relationship, or fiduciary relationship
      between them, for any purpose whatsoever. 
	 	 	 
		3.3. 	Competition: Except as expressly provided in this Agreement
      each party shall have the free and unrestricted right independently to
      engage in and receive the full benefits of any and all business endeavors
      of any sort whatsoever outside the Property or outside the scope of this
      Agreement whether or not competitive with the endeavors contemplated
      herein without consulting the other or inviting or allowing the other
      therein. In particular, without limiting the foregoing, neither party to
      this Agreement shall have any obligation to the other as to any
      opportunity to acquire any money, property, interest or right offered to
      it outside the scope of this Agreement. 
	 	 	 
	4. 	Term: The term of this Agreement shall be from the
      Effective Date for twenty (20) years unless terminated or canceled, and
      for so long thereafter as Sterling produces or processes minerals from the
      Property. 
	 	 	 
	5. 	Minimum Work Obligations: 

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		5.1. 	Sterling shall undertake a four (4) year Exploration and Mining
      Operation project, in such manner as Sterling in its sole discretion shall
      determine, on the Property. Such Exploration and Mining Operations shall
      begin within five (5) years of the Effective Date of this Agreement. The
      minimum amount of expenditures shall be $50,000 in the first year, $75,000
      in the second year and $100,000 in each of the third and fourth years.
      Sterling may choose to forego Exploration and Mining Operation in any or
      all years provided cash payments equal to the minimum expenditures are
      tendered to Shoshone by the end of the Lease Year in which Exploration and
      Mining Operation would have been performed. 
	 	 	 
	6. 	Payments: Sterling shall make the following payment
      to Shoshone: 
	 	 	 
		6.1. 	Production Royalty: Sterling shall pay to Shoshone a production
      royalty equal to ten percent (10%) of the Net Proceeds from the production
      of Minerals from the Property and $1,000 per year minimum Net Proceed
      Royalty. Payment of Net Proceed Royalty shall commence at the beginning of
      the fifth Lease Year. Payments of the Net Proceeds shall be made in
      accordance with the provisions of Exhibit B hereto. 
	 	 	 
		6.2. 	Method of Payment: All payments made by Sterling to Shoshone
      shall be paid in accordance with the provisions of Exhibit B hereto.

	 	 	 
		6.3. 	Audit: Shoshone or its authorized agents shall have a right to
      audit and inspect Sterling’s accounts and records used in calculating
      production royalty payments, which right may be exercised as to each
      payment at any reasonable time during a period of ninety (90) days from
      the date on which the payment was made by Sterling. If no such audit is
      performed during such period, such accounts, records and payments shall be
      conclusively deemed to be true, accurate and correct. 
	 	 	 
	7. 	Compliance with the Law: The exercise by Sterling of
      any rights, privileges, grants and uses under this Agreement shall confirm
      at all times with the applicable laws and regulations of the state in
      which the Property is situated and the United States of America. Sterling
      shall be fully responsible for compliance with all applicable federal,
      state and local reclamation statutes, regulations and ordinances relating
      to such work, all at Sterling’s cost, and Sterling shall indemnify and
      hold harmless Shoshone from any and all claims, assessments, fines and
      actions arising from Sterling’s failure to perform the foregoing
      obligations. Shoshone agrees to cooperate with Sterling in Sterling’s
      application for governmental licenses, permits and approvals, the costs of
      which shall be borne by Sterling. 
	 	 	 
	8. 	Mining Practices; Inspection of Data: Reports: 
	 	 	 
		8.1. 	Inspection of Data: During the term of this Agreement, Sterling
      shall have the right to examine non-interpretive factual data regarding
      the Property in Sterling’s possession during reasonable business hours and
      upon prior notice, provided, however, that the rights of Shoshone to
      examine such data shall be exercised in a manner such that such inspection
      does not unreasonable interfere with the operations of Sterling.
  

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		8.2. 	Reports: Sterling shall deliver to Shoshone, on or before the
      nineteenth (19th ) day after the end of each calendar year, a
      summary report of all exploration or development work conducted by
      Sterling on the Property for the previous year. Notwithstanding the
      foregoing, Sterling shall not be required in its reports to disclose
      proprietary information or information concerning, or which might tend to
      reveal, processes, techniques or equipment which Sterling is under a
      contractual obligation not to reveal. 
	 	 	 
		8.3. 	Measurement Analysis: Sterling shall measure Ore and grade and
      take and analyze samples in accordance with industry practice, and shall
      keep accurate records thereof as a basis for computing the production
      royalty payments. These records shall be available for inspection and copy
      by Shoshone at all reasonable times subject to the provisions of this
      Agreement regarding accounts, records and payments. 
	 	 	 
	9. 	Measurement Analysis: Sterling shall keep accurate
      records of the sale or shipment of Product from the Property, and these
      records shall be available for inspection and copy by Shoshone at all
      reasonable times. 
	 	 	 
	10. 	Consolidation of Operations: 
	 	 	 
		10.1. 	Cross Mining: Sterling is granted the right to mine and remove
      Ore, Minerals, Product and materials from the Property through or by means
      of shafts, openings or pits which may be in or upon adjoining or nearby
      lands owned or controlled by Sterling. Sterling may use the Property and
      any shafts, openings and pits on the Property for the mining, removal,
      treatment and transportation of ores and materials from adjoining or
      nearby lands, or for any purpose connected with such activities. Sterling
      shall have the right to treat or process, in any manner (including in situ
      or solution mining), any Ore, Minerals, material and products mined or
      produced from the Property and from other lands. Such treatment may be
      conducted wholly or in part at facilities established or maintained on the
      Property of on other lands. The tailings and residue from such treatments
      shall be deemed waste and may be deposited on the property or on other
      lands and Sterling shall have no obligation to remove such waste from the
      property, nor to return to the property waste resulting from the
      processing of ores or materials from the property. 
	 	 	 
		10.2. 	Unitization: Sterling’s operations on the Property and its
      operations on other lands may be conducted upon the Property and upon any
      and all such other lands as a single mining operation, to the same extent
      as if all such properties constituted a single tract of land. 
	 	 	 
		10.3. 	Boundary Areas: Shoshone waives all rights, statutory and
      otherwise, to require Sterling to maintain adjacent support for the
      Property and any contiguous property owned, leased, or controlled by
      Sterling or any other party. Shoshone waives its right to prohibit
      Sterling from mining within any minimum distance of any boundary line of
      the Property and contiguous lands and grants to Sterling the authority to
      enter agreements with the owners of contiguous properties so as to allow
      mining of all ores located on or under the boundary of the Property.
      Sterling shall secure the necessary consents and 

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		agreements from the owners of contiguous properties and the
      requisite approvals of any governmental authorities. 
	 	 	 
	11. 	Stockpiling: 
	 	 	 
		11.1. 	Stockpiling: To the extent permitted by applicable federal,
      state and local laws, regulations and ordinances, Sterling shall have the
      right to stockpile on the Property or on other lands any Ore, Minerals,
      Materials or Waste mined or produced from the Property at such place or
      places as Sterling may elect, without the obligation to remove them from
      where stockpiled or to return them to the Property. The stockpiling of Ore
      or materials from the Property on other lands shall not be deemed a
      removal or shipment thereof requiring payment in respect of Shoshone
      interest. Shoshone agrees to recognize the rights and interests of others
      in such ores, materials and waste stockpiled on the Property and to permit
      their removal by Sterling or the owner of such ores and materials. 
	 	 	 
		11.2. 	Waste: Waste, overburden, surface stripping and other materials
      from the Property may be deposited on or of the Property. Nothing in this
      Section shall limit the provisions of this Agreement concerning
      stockpiling Product on or off the Property. 
	 	 	 
	12. 	Mixing: Sterling shall have the right to commingle
      Ore from the Property or from other properties. Before commingling, the
      Ore from the Property and other ore shall be measured and sampled by
      Sterling in accordance with sound mining and metallurgical practice for
      mineral content. Representative samples of Ore and other ores shall be
      retained by Sterling, and assays of these samples shall be made before
      commingling to determine the mineral content of each ore. Detailed records
      shall be kept by Sterling showing measurements, assays of mineral content
      and gross mineral content of the Ore and other ore and such records shall
      be made available to Shoshone at all reasonable times for examination and
      copy. 
	 	 	 
	13. 	Treatment: Sterling shall have the right, but shall
      not be required, to beneficiate, concentrate, smelt, refine, leach and
      otherwise treat, in any manner, any Ore, Product and materials mined or
      produced from the Property and from other lands. Such treatment may be
      conducted wholly or in part at a plant or plants established or maintained
      on the Property or on other lands. The tailings and residue from such
      treatment may be deposited on the property or on other lands. Shoshone
      shall have no right, title or interest in said tailings or residue. 
	 	 	 
	14. 	Scope of Agreement: This Agreement shall extend to
      and include only the Property described in this Agreement, and the
      Exhibits of this Agreement and all covenants, obligations, representations
      and warranties as herein provided for. 
	 	 	 
	15. 	Compliance with Federal Land Policy and Management Act,
      Annual Assessment Work, Patent Application, and Conversion of Claims:
    
	 	 	 
		15.1. 	Compliance with Federal Land Policy and Management Act:
      Shoshone represents and warrants that (a) all of the mining claims have
      bee posted in accordance with the mining laws of the United States and the
      State of Idaho and in accordance with local customs, rules and
      regulations; and (b) none of 

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		the mining claims are subject to invalidation or forfeiture as a
      result of any failure to comply with the Federal Land Policy and
      Management Act of October 21, 1976 (as amended) (“FLPMA”) and the
      regulations promulgated there under or a result of any other act or
      omission of Shoshone. 
	 	 
	15.2. 	Annual Assessment Work: Beginning with the annual assessment
      work period ending September 1, and for each annual assessment work period
      commencing during the term of this Agreement, Sterling shall perform for
      the benefit of the Property work of a type customarily deemed applicable
      as assessment work and of sufficient value to satisfy the annual
      assessment work requirements of all applicable federal, state and local
      laws, regulations and ordinances, and shall prepare evidence of the same
      in a form proper for recordation and filing, and shall timely record
      and/or file such evidence in the appropriate federal, state and local
      office as required by applicable federal, state and local laws,
      regulations and ordinances, provided that if Sterling elects to terminate
      this Agreement before July 1 of any year, it shall have no further
      obligation hereunder to perform annual assessment work no to prepare,
      record and/or file evidence of the same with respect to that year. 
	 	 
	15.3. 	Patent Application: Sterling may, at its expense, seek to
      patent, in Shoshone’s name, any and all of the unpatented mining claims
      part of the Property. Shoshone pledges full cooperation to Sterling in
      executing any documents necessary to accomplish patenting if so desired by
      Sterling. If Sterling begins patent proceedings and Sterling desires to
      discontinue them, or if this Agreement is terminated while patent
      proceedings are pending, Sterling shall have no further obligation with
      respect thereto, except to pay any unpaid expenses accrued in such
      proceedings prior to its request to discontinue, or prior to termination,
      whichever occurs first. If the patent application results in cancellation
      of any unpatented claims, Sterling shall not be liable for any claims,
      losses or damages resulting from such cancellation. Shoshone appoints
      Sterling as Shoshone’s lawful attorney-in-fact for the purpose of patent
      applications. All patents shall be part of the Property and the parties
      will promptly after issuance of each patent execute and deliver an
      addendum to this Agreement and a memorandum of this Agreement to such
      effect. 
	 	 
	15.4. 	Conversion of Claims: If the mining laws applicable to the
      unpatented mining claims subject to this Agreement are amended or
      repealed, and in either case the interests of Shoshone in the unpatented
      mining claims are converted or authorized to be converted, the interest of
      Sterling in the unpatented mining claims, as amended or converted, shall
      be subject to and shall constitute the Property subject to this Agreement.
      If pursuant to any amendment of the mining laws Shoshone is granted the
      right to convert its interest in the unpatented mining claims comprising
      the Property to a permit, license, lease, or other right or interest,
      Sterling may, in Sterling’s discretion and in Shoshone’s name, elect such
      conversion. Shoshone shall bear the cost of the application for such
      conversion, however, Sterling shall, during the term of this Agreement,
      pay all periodic payments required to preserve or maintain such converted
      interest, including, without limitation, permit, license, lease,
  

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		holding fees, or other periodic payments. Any and all production
      royalties or fees based on or assessed against production of Minerals from
      the Property which are paid by Sterling to the United States shall be credited
      in Sterling’s favor against Sterling’s production royalty payment
      obligations owed to Shoshone. On the grant or issuance of such converted
      interest or rights the parties shall execute and deliver an addendum to
      this Agreement by which such converted interest or rights are expressly
      made subject to this Agreement. 
	 	 	 
	16. 	Liens and Notices of Non-Responsibility: Shoshone and
      Sterling agree to keep the Property at all times free and clear of all liens,
      charges and encumbrances of any and every nature and description done, made
      or caused by them, and to pay all indebtedness and liabilities incurred
      by or for them which may or might become a lien, charge or encumbrance against
      the Property before such indebtedness and liabilities shall become a lien,
      charge or encumbrance; except that Sterling need not discharge or release
      any such lien, charge or encumbrance so long as Sterling is contesting the
      same. The parties agree that Shoshone shall be informed immediately of the
      execution of this Agreement by Sterling in order that Shoshone can property
      and timely record a notice of non-responsibility in the office of the county
      recorder of the county in which the Property is located. Nothing herein
      shall be construed to prevent Sterling from Assigning, pledging, encumbering
      or otherwise transferring its interest in this Agreement or the Property
      for the purpose of acquiring financing for its activities or operations
      on the Property, or for any other purpose, which acts are expressly authorized.
    
	 	 	 
	17. 	Taxes: 
	 	 	 
		17.1. 	Claim Fees: Sterling shall pay all claim fees associated with the
      Property. 
	 	 	 
		17.2. 	Personal Property Taxes: Each party shall pay all taxes assessed
      against such party’s personal property, improvements or structures
      placed or used on the Property. 
	 	 	 
		17.3. 	Income Taxes: Sterling shall not be liable for any taxes levied
      on or measured by income, or other taxes applicable to Shoshone, based upon
      payments under this Agreement or based upon the production of Minerals,
      Ore or Product from the Property. 
	 	 	 
		17.4. 	Delivery of Tax Notices: If Shoshone receives tax bills or claims
      which are Sterling’s responsibility, Shoshone shall promptly forward
      them to Sterling for appropriate action, and if they are not received by
      Sterling at least ten (10) business days before any payment is due, Sterling
      shall not be responsible for any interest, penalty, charge, expense, or
      other liability arising from late payment. Shoshone agrees to indemnify
      and save harmless Sterling from all of the interests, penalties, charges,
      expense or liabilities that may be incurred by Sterling from time to time
      as a result of Shoshone failure to promptly forward tax bills or claims
      to Sterling. 
	 	 	 
	18. 	Inspection: Shoshone or Shoshone’s duly authorized
      representatives shall be permitted to enter on the Property, and the workings
      of Sterling thereon at all reasonable times for the purpose of inspection
      and Shoshone shall have the right to 

8

		take samples of material from the Property for the purpose
      of assuring property and accurate determination and payment of the
      production royalty, but they shall enter on the Property at their own risk
      and in such a manner as no to unreasonably hinder, delay or interfere with
      the operations of Sterling. Shoshone shall indemnify and hold Sterling
      harmless from any and all damages, claims or demands arising out of injury
      to Shoshone, Shoshone’s agents or representatives, or any of them, on the
      Property or on the approaches thereto. 
	 	 	 
	19. 	Title Information and Data: At any time during the
      term hereof, upon written request by Sterling, Shoshone forthwith shall
      obtain and deliver to Sterling copies of all title documents affecting the
      Property which Shoshone has in its possession or available to it,
      including copies of any plats and field notes of surveys of the Property.
      Shoshone agrees to make available to Sterling copies of any exploration
      data, assays, logs, maps, geological, geochemical and geophysical surveys
      and reports that Shoshone may have in its possession, without charge.
  
	 	 	 
	20. 	Representation of Title: 
	 	 	 
		20.1. 	Unpatented Mining Claims: With respect to the Property,
      Shoshone covenants, represents and warrants, which covenants,
      representations and warranties shall survive termination of this
      Agreement, that: (a) Shoshone holds the entire and undivided legal and
      equitable interest in the Property, subject to the paramount title of the
      United States and other matters of title disclosed in this Agreement; (b)
      Shoshone has good right and full power to lease and to convey the
      interests described in this Agreement; (c) the Property is free and clear
      of all liens, claims and encumbrances except as otherwise provided in the
      Agreement; (d) Shoshone shall not commit any act or acts which will
      encumber or cause a lien to be placed on the Property. 
	 	 	 
		20.2. 	Escrow of Patents Pending Dispute: If at any time while this
      Agreement is in force and effect a third party asserts a claim of
      ownership in the Property or the Minerals which is adverse to the interest
      of Shoshone or if Sterling is advised by legal counsel for Sterling that
      it appears that a third party may have such a claim, Sterling may deposit
      any payments which would otherwise be due to Shoshone hereunder into
      escrow and give notice of such deposit to Shoshone. In the event of a
      dispute as to ownership of the Property, the Minerals, the surface of the
      Property, or the production royalties, payment of production royalties may
      be deferred until twenty (20) days after Sterling is furnished
      satisfactory evidence that such dispute has been finally settled and all
      provisions as to keeping this Agreement in force shall relate to such
      extended time for payment. 
	 	 	 
	21. 	Covenant, Warranties and Representations: Each of the
      parties covenants, warrants and represents for itself as follows: 
	 	 	 
		21.1. 	Compliance with Laws: That it has complied with all applicable
      laws and regulations of any governmental body, Federal, state or local
      regarding the terms of this Agreement and the performance thereof.
  

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		21.2. 	No Pending Proceedings: That there are no lawsuits or
      proceedings pending or threatened which affect its ability to perform the
      terms of this Agreement. 
	 	 	 
		21.3. 	Authority: That it has the full right, title and authority to
      enter into this Agreement and to perform the same in accordance with
      terms, and neither this Agreement, nor its performance, violates or
      constitutes a default under the provisions of any other agreement to which
      it is a party or to which it is bound. 
	 	 	 
		21.4. 	Commissions: Finder’s Fees: That it has not utilized the
      services of a broker or a finder in the negotiation and/or execution of
      this Agreement, and that it has not incurred any obligation to pay a
      broker’s commission or finder’s fee upon the execution and consummation
      hereof. 
	 	 	 
		21.5. 	Costs: That it shall pay all costs and expenses incurred or to
      be incurred by it in negotiating and preparing this Agreement and in
      closing and carrying out the transactions contemplated by this Agreement.
    
	 	 	 
	22. 	Shoshone’s Covenants, Representations and Warranties:
      Shoshone covenants, represents and warrants as follows: 
	 	 	 
		22.1. 	Noninterference: Shoshone hereby covenants that Shoshone will
      not do or permit to be done any act, which would or might hinder or impair
      the rights of Sterling to exercise any right granted to Sterling under
      this Agreement or to acquire all right, title and interest in and to the
      Property. 
	 	 	 
		22.2. 	Estoppel Certificate: On written request from Sterling, and so
      long as Sterling is not in default under this Agreement, Shoshone will
      execute and deliver to Sterling an estoppel certificate, in form
      acceptable to Sterling, whereby Shoshone confirms that the Agreement is in
      full force and effect and that there are no defaults by Shoshone or
      Sterling under the lease. 
	 	 	 
		22.3. 	Environmental Conditions: Shoshone is not aware of nor has it
      received notice from any governmental agency of any condition existing on
      the Property or created by Shoshone which is or might be a violation of
      any applicable law, regulation or ordinance. 
	 	 	 
		22.4. 	Non-Foreign Status: Shoshone is not a “foreign person” as
      defined under Section 1445(f) of the Internal Revenue Code. 
	 	 	 
	23. 	Termination by Shoshone: In the event of any default
      or failure by Sterling to comply with any of the covenants, terms or
      conditions of this Agreement, Shoshone shall be entitled to give Sterling
      written notice of the default, specifying details of the same. If such
      default is not remedied within sixty (60) days after receipt of the notice
      provided the same can reasonably be done within that time, or, if not, if
      Sterling has not within that time commenced action to cure the same or
      does not after such commencement diligently prosecute such action to
      completion, then this Agreement shall be deemed canceled and terminated
      effective on the sixtieth (60th ) day after the receipt of the
      notice, provided, that Shoshone, prior to the expiration of said sixty
      (60) day notice period, has re-conveyed the Property to the original
      owners, their heirs or assigns. Termination shall not be based on default
      or on a failure to remedy the same, 

10

		which results from any cause beyond the reasonable control of
      Sterling, including, without limitation, the force major provisions of
      this Agreement. 
	 	 
	24. 	Termination by Sterling: Sterling may terminate this Agreement
      at any time, for any reason by giving written notice to Shoshone. Sterling
      agrees that upon termination it shall make any and all required payments
      and remunerations to Shoshone based on a full Lease Year and not on a
      pro-rated basis. 
	 	 
	25. 	Removal of Equipment: Sterling shall have six (6) months after
      termination of this Agreement to remove from the Property all buildings,
      structures, and equipment, and to restore or diligently act to restore the
      property to an environmentally acceptable state as may be required by
      local, state or Federal authorities. Any buildings, structures or
      equipment, including personal property, remaining on the Property after
      the time described in this Section shall be deemed to be owned by Shoshone
      with no further action on part of the parties. 
	 	 
	26. 	Data: Upon termination of this Agreement Shoshone shall have
      the right to request a copy of all non-interpretive factual data regarding
      the Property in Sterling’s possession at the time of termination. Sterling
      agrees that it will within thirty (30) days after receipt of a timely
      written demand by Shoshone deliver to Shoshone a copy of all such
      non-interpretive factual data. Sterling shall have no liability on account
      of any such information received or acted on by Shoshone or any other
      party to whom Shoshone delivers such information. Shoshone must exercise
      its right to request the information referred to herein in writing and
      must give such written request within thirty (30) days after termination
      of this Agreement, and absent such timely written demand, Sterling shall
      have no obligation under this Section to provide such information. 
	 	 
	27. 	Confidentiality: The data and information, including the terms
      of this Agreement, coming into the possession of Shoshone by virtue of
      this Agreement, shall be deemed confidential and shall not be disclosed to
      outside third parties except as may be required to publicly record or
      protect title to the Property or to publicly announce and disclose
      information under the laws and regulations of the United States or any
      state or local government or any country, or under the rules land
      regulations of any stock exchange on which stock of any party, or the
      parent or affiliates of any party, is listed. Shoshone agrees with respect
      to any public announcements (other than those exceptions set forth in the
      preceding sentence) including the announcement of the execution of this
      Agreement, if any, to inform Sterling of the content of the announcement
      or disclosure if the other parties so desire, except that in the event any
      party anticipates selling or assigning all or a portion of its interest or
      negotiations to procure loans from third parties are undertaken, such
      party shall have the right to furnish information-nation to the party to
      which such conveyance or assignment is anticipated or with whom such
      negotiations for loans are undertaken, upon obtaining from such party an
      agreement to hold confidential any information so furnished. Nothing in
      this Agreement shall limit or restrict the right of Sterling to provide,
      deliver or release to parent companies, companies with a common parent,
      subsidiary companies, affiliated or related companies and/or co-venturers
      the data and information, including the terms of this Agreement, coming
      into the possession of Sterling by virtue of this Agreement.

11

	28. 	Force Majeure: The respective obligations of either party,
      except Sterling’s obligation to maintain the insurance and perform the
      annual assessment work required under this Agreement, shall be suspended
      during the time and to the extent that such party is prevented from
      compliance, in whole or in part, by war or war conditions, actual or
      potential, earthquake, fire, flood, strike, labor stoppage, accident,
      riot, unavoidable casualty, act or restraint, present or future, of any
      lawful authority, statute, governmental regulation or ordinance,
      environmental restrictions or conditions, permit or license approvals, act
      of God, act of public enemy, delays in transportation, or other cause of
      the same or other character beyond the reasonable control of such party.
    
	 	 
	29. 	Disputes not to Interrupt Operations: Disputes or differences
      between the parties shall not interrupt performance of this Agreement or
      the continuation of Sterling’s operations. In the event of any dispute or
      difference, operations may be continued, and settlements and payments may
      be made in the same manner as before such dispute or difference. 
	 	 
	30. 	Memorandum Agreement: Upon execution of this Agreement, the
      parties shall execute and cause to be delivered a short form of this
      Agreement which shall be recorded in the office of the recorder of each
      county wherein all or part of the Property is located. The execution and
      recording of the memorandum of agreement shall not limit, increase or in
      any manner affect any of the terms of this Agreement, or any rights,
      interest or obligations of the parties. 
	 	 
	31. 	Notices: Any notices required or authorized to be given by this
      Agreement shall be in written form. Any notices required or authorized to
      be given by this Agreement may be sent by registered or certified
      delivery, postage prepaid and return receipt requested, addressed to the
      property party at the following address or such address as the party shall
      have designated to the other parties in accordance with this Section. Any
      notice required or authorized to be given by this Agreement shall be
      deemed to have been sufficiently given or served in written form if mailed
      as provided herein, personally delivered to the proper party, or sent by
      telex, telegraph, facsimile or other wire service, and actually received
      by such party. Such notice shall be effective on the date of receipt by
      the addressee party. 

If to Shoshone:

Shoshone Silver Mining Co. 
P.O. Box
686 
Wallace, ID 83873

 If to Sterling:

Sterling Mining Co.
P.O. Box
2838
Coeur d’Alene, ID 83816

	32. 	Binding Effect of Obligations: This Agreement shall be binding
      upon and insure to the benefit of the respected parties and their heirs,
      successors and assigns. 
	 	 
	33. 	Whole Agreement: The parties agree that the whole agreement
      between them is written in this Agreement and in a memorandum of agreement
      of even date which is 

12

		intended to be recorded. There are no terms or conditions, express or
      implied, other than expressly stated in this Agreement. This Agreement may
      be amended or modified only by an instrument in writing, signed by the
      parties with the same formality as this Agreement. 
	 	 
	34. 	Governing Law: This Agreement shall be construed and enforced
      in accordance with the laws of the state of Idaho. 
	 	 
	35. 	Multiple Counterparts: This Agreement may be executed in any
      number of counterparts, each of which shall be deemed to be an original,
      but all of which shall constitute the same Agreement. 
	 	 
	36. 	Severability: If any part, term or provision of this Agreement
      is held by a court of competent jurisdiction to be illegal or in conflict
      with any law of the United states or any state, the validity of the
      remaining portions or provisions shall not be affected and the rights and
      obligations of the parties shall be construed and enforced as if the
      Agreement did not contain the particular part, term or provision held to
      be invalid. 
	 	 
	37. 	Bankruptcy or Insolvency Proceedings by Sterling: If Sterling
      be adjudged bankrupt or insolvent or shall make an assignment for benefit
      of creditors, this Agreement shall thereupon immediately terminate, and it
      being further understood and agreed that this Agreement shall not be
      assignable by any process of law, nor be treated as an asset of Sterling
      in any bankruptcy or insolvency proceedings, nor shall it pass under the
      control of any trustee or assignee of Sterling by virtue of any
      proceedings in bankruptcy or insolvency, or under any assignment by
      Sterling for the benefit of creditors. 
	 	 
	38. 	Assignment: Upon providing written notice to the other party in
      accordance with the terms of this Agreement, either party may assign its
      respective rights and obligations under this Agreement, provided that the
      assignee executes an assumption of all of the assignor’s obligations
      hereunder and agrees to be bound by all the terms and conditions of this
      Agreement. No such assignment shall in any way enlarge or diminish the
      right or obligations of Sterling or Shoshone hereunder. Upon the
      assumption by the assignee of the assignor’s obligations, the assigning
      party shall be fully released from and shall not be liable or responsible
      to the non-assigning party in any way or any duties, costs, payments or
      other liabilities or obligations that thereafter arise or accrue directly
      or indirectly under this Agreement. A fully executed memorandum of
      assignment in recordable form shall be provided to the non-assigning party
      by the assigning party. 

13

IN WITNESS WHEREOF, the parties have executed this Agreement
effective as of the Effective Date.

	Shoshone Silver Mining Co: 	       Sterling Mining Co.:
    
	 	 
	 	 
	 	 
	By:
                     /s/
      Lex
      Smith                                      	By:             /s/
      Raymond
      Demotte                       

STATE OF IDAHO
COUNTY OF ___________________________

On this  __________ day of ________________________, 2004,
before me, the undersigned, a Notary Public in and for the State of Idaho duly
commissioned and sworn, personally appeared ______________________ known to me
or proven to me to be the person who acknowledged to me that he executed the
above Mining Lease Agreement, as indicated above.

	 	_________________________________
	 	Notary Public 
	 	My Commission expires:
  ______________

STATE OF IDAHO
COUNTY OF ___________________________

On this ________day of __________________, 2004, before me, the
undersigned, a Notary Public in and for the State of Idaho duly commissioned and
sworn, personally appeared _______________________ known to me or proven to me
to be the person who acknowledged to me that he executed the above Mining Lease
Agreement, as indicated above.

	 	_________________________________
	 	Notary Public 
	 	My Commission expires:
  ______________

14Filed by Automated Filing Services Inc. (604) 609-0244 - Energy Metals Corporation - Exhibit4.1

ENERGY METALS CORPORATION 

AMENDED AND RESTATED STOCK OPTION PLAN 

This plan, once effective pursuant to Section 16.1 hereof,
amends and restates the Energy Metals Corporation Stock Option Plan originally
adopted by shareholders of the Corporation on December 11, 2003, with amendments
adopted by shareholders on November 22, 2004, and November 17, 2005, April 11,
2006, and amendments adopted solely by the board of directors on June 9, 2006.

	1. 	INTERPRETATION 

1.1 Defined Terms - For the purposes of
this Plan, the following terms shall have the following meanings: 

	 	(a) 	
      "Associate" shall have the meaning ascribed to
      such term in section 1(1) of the British Columbia Securities Act,
      as amended from time to time;

	 	 	 
	 	(b) 	
      “Blackout Period” means a Corporation imposed
      period of time preventing officers, directors and employees from
      exercising options.

	 	 	 
	 	(c) 	
      "Board" means the Board of Directors of the
      Corporation;

	 	 	 
	 	(d) 	
      “Certificate” means an Option certificate in the
      form attached as Schedule “A” hereto;

	 	 	 
	 	(e) 	
      "Change in Control" means the acquisition,
      directly or indirectly, through one transaction or a number of
      transactions, by any Person, of an aggregate of more than fifty percent of
      the outstanding Shares;

	 	 	 
	 	(f) 	
      "Committee" means a committee of the Board
      appointed in accordance with this Plan, or if no such committee is
      appointed, the Board itself;

	 	 	 
	 	(g) 	
      "Corporation" means Energy Metals Corporation, a
      company incorporated under the laws of British Columbia;

	 	 	 
	 	(h) 	
      "Date of Grant" means the date on which a grant of
      an Option is effective;

	 	 	 
	 	(i) 	
      "Disability" means a medically determinable
      physical or mental impairment expected to result in death or to last for a
      continuous period of not less than 12 months which causes an individual to
      be unable to engage in any substantial gainful activity;

	 	 	 
	 	(j) 	
      "Effective Date" means the effective date of this
      Plan, which is the day of its approval by the shareholders of the
      Corporation;

	 	 	 
	 	(k) 	
      "Exchange Act" means the United States
      Securities Exchange Act of 1934, as amended;

	 	 	 
	 	(l) 	
      "Guardian" means the guardian, if any, appointed
      for an Optionee;

	 	 	 
	 	(m) 	
      “Insider” has the meaning ascribed to it in the
      British Columbia Securities Act.

	 	 	 
	 	(n) 	
      “Market Price” means the closing trading price at
      the time of grant on TSX or another stock exchange where the majority of
      the trading volume and value of the listed securities
  occurs;

- 2 - 

	 	(o) 	
      "Option" means an option to purchase Shares
      granted pursuant to the terms of this Plan (and for certainty, includes
      options granted under earlier versions of this Plan);

	 	 	 	 
	 	(p) 	
      "Option Price" means the exercise per Share for an
      Option which shall be expressed in Canadian funds or in the United States
      dollar equivalent thereof;

	 	 	 	 
	 	(q) 	
      "Optionee" means a person to whom an Option has
      been granted;

	 	 	 	 
	 	(r) 	
      "Person” means a natural person, company,
      government, or political subdivision or agency of a government; and where
      two or more Persons act as a partnership, limited partnership, syndicate
      or other group for the purpose of acquiring, holding or disposing of
      securities of an issuer, such syndicate or group shall be deemed to be a
      Person;

	 	 	 	 
	 	(s) 	
      "Plan" means the Stock Option Plan of the
      Corporation as amended and restated;

	 	 	 	 
	 	(t) 	
      "Qualified Successor" means a person who is
      entitled to ownership of an Option upon the death of an Optionee, pursuant
      to a will or the applicable laws of descent and distribution upon
      death;

	 	 	 	 
	 	(u) 	
      "Related Company" shall mean a company which is an
      affiliate of the Corporation as the term “affiliate” is defined in Section
      1(2) of the British Columbia Securities Act, as amended from time
      to time;

	 	 	 	 
	 	(v) 	
      "Shares" means the common shares in the capital of
      the Corporation;

	 	 	 	 
	 	(w) 	
      “Subsidiary” means any corporation or company of
      which outstanding securities to which are attached more than 50% of the
      votes that may be case to elect directors thereof are held (provided that
      such votes are sufficient to elect a majority of such directors), other
      than by way of security only, by or for the benefit of the Corporation
      and/or for the benefit of any other corporation or company in like
      relation to the Corporation, and include any corporation or company in
      like relation to a Subsidiary.

	 	 	 	 
	 	(x) 	
      “TSX” means the Toronto Stock Exchange;

	 	 	 	 
	 	(y) 	
      "Term" means the period of time during which an
      Option may be exercised; and

	 	 	 	 
	 	(z) 	
      "Terminating Event" means:

	 	 	 	 
	 		(i) 	
      the dissolution or liquidation of the
  Corporation,

	 	 	 	 
	 		(ii) 	
      a merger or consolidation of the Corporation with one or
      more corporations as a result of which, immediately following such merger
      or consolidation, the shareholders of the Corporation as a group will hold
      less than a majority of the outstanding capital stock of the surviving
      corporation,

	 	 	 	 
	 		(iii) 	
      the sale or other disposition of all or substantially all
      of the assets of the Corporation, or

	 	 	 	 
	 		(iv) 	
      a material change in the capital structure of the
      Corporation that is deemed to be a Terminating Event by virtue of the last
      sentence of Section 10.1 of this Plan or by virtue of Section 10.4 of this
      Plan.

- 3 - 

1.2 Any question relating to interpretation of the Plan or any
Option shall be determined by the Board of Directors and such determination
shall be final and binding upon all persons. 

	2. 	STATEMENT OF PURPOSE

2.1 Principal Purposes - The principal
purposes of the Plan are to provide the Corporation with the advantages of the
incentive inherent in share ownership on the part of employees, officers,
directors, and consultants responsible for the continued success of the
Corporation; to create in such individuals a proprietary interest in, and a
greater concern for, the welfare and success of the Corporation; to encourage
such individuals to remain with the Corporation; and to attract new employees,
officers, directors and consultants to the Corporation. 

2.2 Benefit to Shareholders - The Plan is
expected to benefit shareholders by enabling the Corporation to attract and
retain personnel of the highest caliber by offering such personnel an
opportunity to share in any increase in value of the Shares resulting from their
efforts. 

	3. 	ADMINISTRATION 

3.1 Board or Committee - The Plan
shall be administered by the Board or by a Committee appointed in accordance
with Section 3.2 below. 

3.2 Appointment of Committee - The Board
may at any time appoint a Committee, consisting of not less than three of its
members, to administer the Plan on behalf of the Board in accordance with such
terms and conditions as the Board may prescribe, consistent with this Plan. Once
appointed, the Committee shall continue to serve until otherwise directed by the
Board. From time to time, the Board may increase the size of the Committee and
appoint additional members, remove members (with or without cause) and appoint
new members in their place, fill vacancies however caused, or remove all members
of the Committee and thereafter directly administer the Plan. 

3.3 Quorum and Voting - A majority of the
members of the Committee shall constitute a quorum, and, subject to the
limitations in this Section 3, all actions of the Committee shall require the
affirmative vote of members who constitute a majority of such quorum. No member
of the Committee who is a director to whom an Option may be granted may
participate in the decision to grant such Option (but any such member may be
counted in determining the existence of a quorum at any meeting of the Committee
in which action is taken with respect to the granting of an Option to him). 

3.4 Powers of Committee - Any Committee
appointed under Section 3.2 above shall have the authority to do the following:

	 	(a) 	
      administer the Plan in accordance with its
  terms;

	 	 	 
	 	(b) 	
      determine all questions arising in connection with the
      administration, interpretation, and application of the Plan, including all
      questions relating to the value of the Shares;

	 	 	 
	 	(c) 	
      correct any defect, supply any information or reconcile
      any inconsistency in the Plan in such manner and to such extent as shall
      be deemed necessary or advisable to carry out the purposes of the
    Plan;

	 	 	 
	 	(d) 	
      prescribe, amend and rescind rules and regulations
      relating to the administration of the Plan;

- 4 - 

	 	(e) 	
      determine the duration and purpose of leaves of absence
      from employment which may be granted to Optionees without constituting a
      termination of employment for purposes of the Plan;

	 	 	 	 
	 	(f) 	
      do the following with respect to the granting of
      Options:

	 	 	 	 
	 		(i) 	
      determine the employees, officers, directors or
      consultants to whom Options shall be granted, based on the eligibility
      criteria set out in this Plan,

	 	 	 	 
	 		(ii) 	
      determine the terms and provisions of the Option which
      shall be entered into with each Optionee (which need not be identical with
      the terms of any other Option),

	 	 	 	 
	 		(iii) 	
      amend the terms and provisions of an Option, provided the
      Committee obtains the consent of the Optionee,

	 	 	 	 
	 		(iv) 	
      determine when Options shall be granted,

	 	 	 	 
	 		(v) 	
      determine the number of Shares subject to each Option;
      and

	 	 	 	 
	 	(g) 	
      make all other determinations necessary or advisable for
      administration of the Plan.

3.5 Obtain Approvals - In administering
this Plan, the Committee will obtain any regulatory or shareholder approvals
which may be required pursuant to applicable securities laws or the rules of any
stock exchange or over the counter market on which the Shares are listed. 

3.6 Administration by Committee - All
determinations made by the Committee in good faith on matters referred to in
Section 3.4 shall be final, conclusive and binding upon all Persons. The
Committee shall have all powers necessary or appropriate to accomplish its
duties under this Plan. In addition, the Committee's administration of the Plan
shall in all respects be consistent with the policies and rules of any stock
exchange or over the counter market on which the Shares are listed. 

	4. 	ELIGIBILITY 

4.1 Eligibility for Options -
Options may be granted to any employee, officer, director or consultant of the
Corporation or any Related Company. 

4.2 Insider Eligibility for Options
- Notwithstanding Section 4.1 hereof, grants of Options to Insiders shall be in
accordance with the policies of the TSX.

4.3 No Violation of Securities Laws - No
Option shall be granted to any Optionee unless the Committee has determined that
the grant of such Option and the exercise thereof by the Optionee will not
violate the securities law of the jurisdiction in which the Optionee resides.

	5. 	SHARES SUBJECT TO THE PLAN

5.1 Number of Shares - The Committee, from
time to time, may grant Options to purchase Shares under the Plan, to be made
available from authorized, but unissued, Shares. The maximum number of Shares
issuable under the Plan shall be adjusted, where necessary, to take account of
the events referred to in Section 10 hereof. In no event will the maximum number
of Shares issuable under the Plan, or otherwise, exceed 10% of the issued shares
of the Corporation outstanding at the time of grant. The maximum number of
Shares which may be reserved for issuance to any one person under the Plan shall
be 5% of the issued and 

- 5 - 

outstanding Shares (on a non-diluted basis) less the aggregate
number of Shares reserved for issuance to such person under any other
outstanding options. After this Plan becomes effective all Options issued by the
Corporation must be made pursuant to the terms of this Plan until the Plan is
terminated. 

5.2 Calculation of Number of Shares -
For the purposes of calculating the maximum aggregate number of Shares which
may be reserved for issuance under the Plan pursuant to subsection 5.1, the
following will apply:

	 	(a) 	
      at the time of any grant under this Plan, all outstanding
      Options shall be treated as though they were Options granted under this
      Plan. Further, for the purposes of such calculation, Shares that have been
      issued pursuant to the exercise of Options under this Plan or any other
      options, will not be included in determining such maximum aggregate number
      of Shares reserved for issuance under the Plan pursuant to subsection
      5.1.

	 	 	 
	 	(b) 	
      Any Shares in respect of which Options have terminated or
      expired without having been exercised may be made the subject of a further
      Option or Options under this Plan.

	 	 	 
	 	(c) 	
      The number of Shares in respect of which previously
      granted Options have been exercised shall not be deducted from the number
      of Shares which may be reserved for issuance under this Plan in accordance
      with subsection 5.1.

In this subsection 5.2, the term “Option” shall include options
granted to any person who at the time of grant was in the class of persons
described in section 4.1, whether granted under this Plan or any other previous
plan or grant. 

5.3 Reservation of Shares - The
Corporation will at all times reserve for issuance and keep available such
number of Shares as shall be sufficient to satisfy the requirements of the Plan.

5.4 Restrictions on Insiders - The
Corporation shall not grant an Option under this Plan where such grant:

	 	(a) 	
      would result in the number of Shares reserved for
      issuance to Insiders under the Plan exceeding 10% of the total number of
      Shares of the Corporation which are issued and outstanding at the date of
      such grant;

	 	 	 
	 	(b) 	
      could result in the issuance to Insiders under the Plan,
      in any one year period, of an aggregate number of Shares which exceeds 10%
      of the issued and outstanding Shares of the Corporation; and

	 	 	 
	 	(c) 	
      could result in the issuance under the Plan to any one
      Insider and/or such Insider’s associates, in any one year period, of an
      aggregate number of Shares which exceeds 5% of the issued and outstanding
      Shares of the Corporation.

	6. 	OPTION TERMS 

6.1 Option With respect to each Option to
be granted to an Optionee, the Committee shall specify the following terms in
the Option between the Corporation and the Optionee: 

	 	(a) 	
      the Date of Grant;

	 	 	 
	 	(b) 	
      subject to section 9.1 the Term, provided that the length
      of the Term shall in no event be greater than five years following the
      Date of Grant;

- 6 - 

	 	(c) 	
      the Option Price, provided that the Option Price shall
      not be less than the Market Price;

	 	 	 	 
	 	(d) 	
      any vesting schedule contained in the Certificate upon
      which the exercise of an Option is contingent; provided that, subject to
      compliance with the policies of the TSX, the Committee shall have complete
      discretion with respect to the terms of any such vesting schedule,
      including, without limitation, discretion to:

	 	 	 	 
	 		(i) 	
      permit partial vesting in stated percentage amounts based
      on the Term of such Option; and

	 	 	 	 
	 		(ii) 	
      permit full vesting after a stated period of time has
      passed from the Date of Grant;

	 	 	 	 
	 	(e) 	
      if the Optionee in respect of an Option grant is an
      employee, a representation by the Corporation that the Optionee is a bona
      fide employee of the Corporation, subsidiary of the Corporation or
      management company providing services to the Corporation (other than
      investor relations); and

	 	 	 	 
	 	(f) 	
      such other terms and conditions as the Committee deems
      advisable and are consistent with the purposes of this
  Plan.

The Secretary or other authorized officer of the Corporation
will deliver to the Optionee a Stock Option Certificate in the form attached
hereto as Schedule “A” detailing the terms of his or her Option, or in such
other form as the Board or the Committee shall determine from time to time. 

6.2 Uniformity - Except as
expressly provided herein, nothing contained in this Plan shall require that the
terms and conditions of Options granted under the Plan be uniform.

	7. 	EXERCISE OF OPTION 

7.1 Method of Exercise - Subject to any
limitations or conditions imposed upon an Optionee pursuant to the Certificate
or Section 6 hereof, an Optionee may exercise an Option by giving written notice
thereof to the Corporation at its principal place of business.

7.2 Compliance with U.S. Securities
Laws - As a condition to the exercise of an Option, the Board or
Committee may require the Optionee to make representations and warranties in
writing at the time of such exercise in order to establish, to the satisfaction
of the Corporation and its legal counsel, that the Shares may legally be issued
in compliance with all applicable U.S. federal and state securities laws. If
required by applicable U.S. federal and state securities laws, a stop-transfer
order against such Shares shall be placed on the stock books and records of the
Corporation, and a legend indicating that the stock may not be pledged, sold or
otherwise transferred unless an opinion of counsel is provided stating that such
transfer is not in violation of any applicable law or regulation, shall be
stamped on the certificates representing such Shares. The Board or Committee
also may require such other documentation as they, in their sole discretion, may
from time to time determine to be necessary to comply with U.S. federal and
state securities laws. The Corporation has no obligation to undertake
registration of Options or the Shares of stock issuable upon the exercise of
Options. 

7.3 Payment of Option Price - The
notice described in Section 7.1 shall be accompanied by full payment of the
aggregate Option Price to the extent the Option is so exercised, and full
payment of any amounts the Corporation determines must be withheld for tax
purposes from the Optionee pursuant to the Option. Such payment shall be in
lawful money (Canadian funds) by cheque. The Corporation may, in the 

- 7 - 

discretion of the Committee, facilitate the exercise of options
by any Holder by providing financial assistance to such Holder on such terms and
in such manner as the Committee may determine and as permitted under the
Articles of the Corporation and in accordance with applicable corporate and
securities laws and the rules and policies of any stock exchange on which the
securities are listed. For the purposes of this section, financial assistance
may include a loan by the Corporation to such Holder, or the acceptance by the
Corporation of the proceeds of a sale of the Shares in respect of which an
Option is to be exercised at the time of delivery of such Shares to such Holder.
For the purpose of the foregoing, where financial assistance is offered by the
Corporation to the Holder in accordance with this subsection, the Committee may
waive the requirement that delivery of full payment of the aggregate Option
Price be made at the time notice described in section 7.1 is delivered provided
that full payment is received by the Corporation no later that the time of
delivery of the certificate representing the Shares. 

7.4 Issuance of Certificates - Not later
than the third business day after exercise of an Option in accordance with
Sections 7.1 and 7.3 hereof, the Corporation shall issue and deliver to the
Optionee a certificate or certificates evidencing the Shares with respect to
which the Option has been exercised. Until the issuance of such certificate or
certificates, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to such Shares, notwithstanding the
exercise of the Option. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the certificate is issued, except
as provided by Section 10 hereof. 

	8. 	TRANSFERABILITY OF OPTIONS

8.1 Non-Transferable - Except as provided
otherwise in this Section 8, Options are non-assignable and
non-transferable.

8.2 Death of Optionee - If the employment
of an Optionee as an employee or consultant of the Corporation or any Related
Company, or the position of an Optionee as a director or officer of the
Corporation or any Related Company, terminates as a result of his or her death,
any Options held by such Optionee shall pass to the Qualified Successor of the
Optionee, and shall be exercisable by the Qualified Successor for a period of 1
year following such death, provided that in no case shall the Term of the Option
extend beyond five years from the Date of Grant. 

8.3 Disability of Optionee - If the
employment of an Optionee as an employee or consultant of the Corporation or any
Related Company, or the position of an Optionee as a director or officer of the
Corporation or any Related Company, is terminated by the Corporation or any
Related Company by reason of such Optionee's Disability, any Option held by such
Optionee that could have been exercised immediately prior to such termination of
service shall be exercisable by such Optionee, or by his Guardian, for a period
of 1 year following the termination of service of such Optionee. 

8.4 Disability and Death of Optionee - If
an Optionee who has ceased to be employed by the Corporation or any Related
Company by reason of such Optionee's Disability dies within 30 days after the
termination of such employment, any Option held by such Optionee that could have
been exercised immediately prior to his or her death shall pass to the Qualified
Successor of such Optionee, and shall be exercisable by the Qualified Successor
for a period of 1 year following the death of such Optionee, provided that in no
case shall the Term of the Option extend beyond five years from the Date of
Grant. 

8.5 Vesting - Options held by a Qualified
Successor or exercisable by a Guardian shall, during the period prior to their
termination, continue to vest in accordance with any vesting schedule to which
such Options are subject. 

8.6 Deemed Non-Interruption of
Employment - Employment shall be deemed to continue intact during any
military or sick leave or other bona fide leave of absence if the period of such
leave does not exceed 90 

- 8 - 

days or, if longer, for so long as the Optionee's right to
reemployment with the Corporation or any Related Company is guaranteed either by
statute or by contract. If the period of such leave exceeds 90 days and the
Optionee's reemployment is not so guaranteed, then his or her employment shall
be deemed to have terminated on the ninety-first day of such leave. 

8.7 Retirement - In the event of
the termination of employment of an Optionee who is an Employee at any time
during the term of an Option by reason of retirement at or after the age of 60
or after 20 years of employment by the Corporation or any of its subsidiaries,
the rights to purchase Shares under the Option which have accrued to the
Optionee and remain unexercised at, or which accrue subsequent to, the date of
his retirement shall remain exercisable by the Optionee (or by the Optionee's
legal personal representative or representatives if the Optionee dies before the
last date of exercise of the Option) beyond that date in accordance with the
terms of the Option as if the Optionee had not retired. 

	9. 	TERMINATION OF OPTIONS

9.1 Termination of Options - To the extent
not earlier exercised or terminated in accordance with section 8 above, an
Option shall terminate at the earliest of the following dates:

	 	(a) 	
      the termination date specified for such Option in the
      Certificate, conditional upon the termination date occurring during a
      Blackout Period, in which case the termination date would be extended by
      the number of days between the specified termination date and the
      expiration of the Blackout Period, such extension period not to exceed ten
      (10) business days.

	 	 	 
	 	(b) 	
      where the Optionee's position as an employee, consultant
      or director of the Corporation or any Related Company is terminated for
      just cause (as hereinafter defined), the date of such termination for just
      cause. For the purpose of this subsection 9.1(b), a person may cease his
      position for “just cause” if:

	 	(i) 	
      as a result of an act or omission which constitutes a
      breach by him of his duties or obligations to the Corporation or a
      Subsidiary;

	 	 	 
	 	(ii) 	
      for committing a dishonest or fraudulent act against the
      Corporation or a Subsidiary;

	 	 	 
	 	(iii) 	
      as a result of having been subjected to penalties or
      sanctions imposed by a court relating to securities legislation or by a
      securities regulatory authority; or

	 	 	 
	 	(iv) 	
      for committing any other act or omission which is
      materially injurious to the financial condition or business reputation of
      the Corporation or a Subsidiary;

and, in the case of a director or
officer, as a result of ceasing to meet the qualifications as a director or
officer pursuant to TSX Policies or applicable securities or corporate
legislation; 

	 	(c) 	
      where the Optionee's position as an employee, consultant,
      officer or director of the Corporation or any Related Company terminates
      for a reason other than the Optionee's disability, death, or termination
      for just cause, 90 days after such date of termination, PROVIDED that if
      an Optionee’s position with the Corporation changes from one of the said
      categories to another category, such change shall not constitute
      termination for the purpose of this subsection 9.1(c);

	 	 	 
	 	(d) 	
      where the Optionee is engaged in Investor Relations
      Activities (as that term is used in the policies of the TSX) and the
      Optionee’s position terminates for a reason other than the Optionee’s
      disability, death, or termination for just cause, 30 days after such date
      of termination;

- 9 - 

	 	(e) 	
      the date of any sale, transfer, assignment or
      hypothecation, or any attempted sale, transfer, assignment or
      hypothecation, of such Option in violation of Section 8.1 above;
  and

	 	 	 
	 	(f) 	
      the date specified in Section 10.3 below for such
      termination in the event of a Terminating Event.

9.2 Lapsed Options - If Options are
surrendered, terminated or expire without being exercised in whole or in part,
new Options may be granted covering the Shares not purchased under such lapsed
Options. If an Option has been surrendered in connection with the regranting of
a new Option to the same Optionee on different terms than the original Option
granted to such Optionee, then the new Option is subject to approval of the
stock exchange on which the Shares are listed. 

	10. 	ADJUSTMENTS TO OPTIONS

10.1 Option Amendments for Insiders
– Securityholder approval (excluding the votes of securities held directly or
indirectly by Insiders benefiting from the amendment) is required for (i) a
reduction in the Option Price or (ii) an extension of the term, under the Plan
benefiting an Insider of the Corporation. 

10.2 Alteration in Capital Structure - If
there is a material alteration in the capital structure of the Corporation
resulting from a recapitalization, stock split, reverse stock split, stock
dividend, or otherwise, the Committee shall make such adjustments to this Plan
and to the Options then outstanding under this Plan as the Committee determines
to be appropriate and equitable under the circumstances, so that the
proportionate interest of the holder of each such Option shall, to the extent
practicable, be maintained as before the occurrence of such event. Such
adjustments may include, without limitation (a) a change in the number or kind
of shares of the Corporation covered by such Options, and (b) a change in the
Option Price payable per share; provided, however, that the aggregate Option
Price applicable to the unexercised portion of existing Options shall not be
altered, it being intended that any adjustments made with respect to such
Options shall apply only to the price per share and the number of shares subject
thereto. For purposes of this Section 10.2, the issuance of additional shares of
stock of the Corporation in exchange for adequate consideration (including
services), shall not be deemed to be material alterations of the capital
structure of the Corporation. If the Committee determines that the nature of a
material alteration in the capital structure of the Corporation is such that it
is not practical or feasible to make appropriate adjustments to this Plan or to
the Options granted hereunder, such event shall be deemed a Terminating Event
for the purposes of this Plan. 

10.3 Terminating Events - Subject to
Section 10.4, all Options granted under the Plan shall terminate upon the
occurrence of a Terminating Event. 

10.4 Notice of Terminating Event - The
Committee shall give notice to Optionees not less than thirty days prior to the
consummation of a Terminating Event. Upon the giving of such notice, all Options
granted under the Plan shall become immediately exercisable, notwithstanding any
contingent vesting provision to which such Options may have otherwise been
subject. 

10.5 Corporate Reorganization - In the
event of a reorganization as defined in this Section 10.4 in which the
Corporation is not the surviving or acquiring corporation, or in which the
Corporation is or becomes a wholly-owned subsidiary of another corporation after
the effective date of the reorganization, then unless provision is made by the
acquiring corporation for the assumption of each Option granted under this Plan,
or the substitution of an option therefore, all Options granted under this Plan
shall terminate and such event shall be deemed a Terminating Event. For purposes
of this Section 10.5, reorganization shall mean any statutory merger, statutory
consolidation, sale of all or substantially all of the assets of the
Corporation, or sale, pursuant to an agreement with the Corporation, of
securities of the Corporation pursuant to which the Corporation becomes a
wholly-owned subsidiary of another corporation after the effective date of the
reorganization. 

- 10 - 

10.6 Acceleration on Change of Control -
Upon a Change in Control, all Options shall become immediately exercisable,
notwithstanding any contingent vesting provisions to which such Options may have
otherwise been subject. 

10.7 Acceleration of Date of Exercise -
The Committee shall have the right to accelerate the date of vesting of any
portion of any Option which remains unvested. 

10.8 Determinations to be Made By
Committee - Adjustments and determinations under this Section 10 shall
be made by the Committee, whose decisions as to the adjustments or determination
which shall be made, and the extent thereof, shall be final, binding, and
conclusive. 

10.9 Effect of a Take-over - If a
bona fide offer (the “Offer”) for Shares is made to an Optionee or
to shareholders generally or to a class of shareholders which includes the
Optionee, which Offer constitutes a take-over bid within the meaning of section
92 of the British Columbia Securities Act, as amended from time to time,
the Corporation shall, immediately upon receipt of notice of the Offer, notify
each Optionee of full particulars of the Offer, whereupon any Option held by an
Optionee may be exercised in whole or in part by the Optionee so as to permit
the Optionee to tender the Shares received upon such exercise (the “Optioned
Shares”) to the Offer. If: 

	 	(a) 	
      the Offer is not completed within the time specified
      therein; or

	 	 	 
	 	(b) 	
      all of the Optioned Shares tendered by the Optionee
      pursuant to the Offer are not taken up and paid for by the offeror
      pursuant thereto;

the Optioned Shares or, in the case of clause (b) above, the
Optioned Shares that are not taken up and paid for, may be returned by the
Optionee to the Corporation and reinstated as authorized but unissued shares and
with respect to such returned Optioned Shares, the Option shall be reinstated as
if it had not been exercised. If any Optioned Shares are returned to the
Corporation under this Section, the Corporation shall refund the Option Price to
the Optionee for such Optioned Shares. 

	11. 	TERMINATION AND AMENDMENT OF PLAN
  

11.1 Power of Committee to Terminate or Amend
Plan - Subject to the approval of any stock exchange on which the
Corporation’s securities are listed, the Committee may terminate, suspend or
amend the terms of the Plan; provided, however, that, except as provided in
Section 10 above and subsection 11.2 below, any amendment to the Plan is subject
to the approval by the affirmative votes of the holders of a majority of the
voting securities of the Corporation present, or represented, and entitled to
vote at a meeting duly held in accordance with the applicable corporate laws, or
by the written consent of the holders of a majority of the securities of the
Corporation entitled to vote (“Shareholder Approval”).

11.2 Specific Amendment Provisions - Subject to the
approval of any stock exchange on which the Corporation’s securities are listed,
the Committee may amend the terms of the Plan without Shareholder approval in
the following circumstances: 

	 	(a) 	
      to comply with the requirements of any applicable
      regulatory authority;

	 	 	 
	 	(b) 	
      to comply with the rules, policies and terms of listing
      of any stock exchange on which the Corporations securities are
    listed;

	 	 	 
	 	(c) 	
      to correct any typographical errors in this Plan,
      including the attached Stock Option Certificate, or to amend wording of
      any provision of this Plan for the purpose of clarifying the meaning of
      existing provisions of the Plan;

- 11 - 

	 	(d) 	
      to modify or extend the termination date applicable to
      any specific grant of Options pursuant to this Plan, other than Options
      held by Insiders;

	 	 	 
	 	(e) 	
      to amend the exercise price of any Options held by
      persons who are not Insiders; and

	 	 	 
	 	(f) 	
      to amend the categories of persons described in
      subsection 4.1 who are eligible to receive Options under this
  Plan.

11.2 No Grant During Suspension of Plan -
No Option may be granted during any suspension, or after termination, of the
Plan. Amendment, suspension or termination of the Plan shall not, without the
consent of the Optionee, alter or impair any rights or obligations under any
Option previously granted. 

	12. 	CONDITIONS PRECEDENT TO ISSUANCE OF
      SHARES 

12.1 Compliance with Laws - Shares shall
not be issued with respect to an Option unless the exercise of such Option and
the issuance and delivery of such shares shall comply with all relevant
provisions of law, including, without limitation, any applicable U.S. federal
and state securities laws and the requirements of any stock exchange or
automated interdealer quotation system upon which such Shares may then be
listed, and such issuance shall be further subject to the approval of counsel
for the Corporation with respect to such compliance, including the availability
of an exemption from registration for the issuance and sale of such Shares. The
inability of the Corporation to obtain from any regulatory body the authority
deemed by the Corporation to be necessary for the lawful issuance and sale of
any Shares under this Plan, or the unavailability of an exemption from
registration for the issuance and sale of any Shares under this Plan, shall
relieve the Corporation of any liability with respect to the non-issuance or
sale of such Shares. 

	13. 	USE OF PROCEEDS 

13.1 Use of Proceeds - Proceeds from the
sale of Shares pursuant to the Options granted and exercised under the Plan
shall constitute general funds of the Corporation and shall be used for general
corporate purposes. 

	14. 	NOTICES 

14.1 Notices - All notices, requests,
demands and other communications required or permitted to be given under this
Plan and the Options granted under this Plan shall be in writing and shall be
either served personally on the party to whom notice is to be given, in which
case notice shall be deemed to have been duly given on the date of such service;
telefaxed, in which case notice shall be deemed to have been duly given on the
date the telefax is sent; or mailed to the party to whom notice is to be given,
by first class mail, registered or certified, return receipt requested, postage
prepaid, and addressed to the party at his or its most recent known address, in
which case such notice shall be deemed to have been duly given on the tenth
postal delivery day following the date of such mailing. 

	15. 	MISCELLANEOUS PROVISIONS

15.1 No Obligation to Exercise - Optionees
shall be under no obligation to exercise Options granted under this Plan. 

- 12 - 

15.2 No Obligation to Retain Optionee
- Nothing contained in this Plan shall obligate the Corporation or any
Related Company to retain an Optionee as an employee, officer, director, or
consultant for any period, nor shall this Plan interfere in any way with the
right of the Corporation or any Related Company to reduce such Optionee's
compensation. 

15.3 Duration of the Plan – Subject
to the provisions of section 11 (Termination and Amendment of Plan), the Plan
shall remain in effect until all grants of Options under the Plan have been
terminated pursuant to the provisions of the Plan or satisfied by the issuance
of Shares or the payment of cash. 

15.4 Binding Agreement - The
provisions of this Plan and each Option with an Optionee shall be binding upon
such Optionee and the Qualified Successor or Guardian of such Optionee. 

15.5 Use of Terms - Where the context so
requires, references herein to the singular shall include the plural, and vice
versa, and references to a particular gender shall include either or both
genders. 

15.6 Headings - The headings used in this
Plan are for convenience of reference only and shall not in any way affect or be
used in interpreting any of the provisions of this Plan. 

15.7 No Representation or Warranty - The
Corporation makes no representation or warranty as to the future market value of
any Shares issued in accordance with the provisions of this Plan. 

	16. 	EFFECTIVE DATE OF PLAN

16.1 Effective Date of Plan - This Plan
shall be effective the day of its approval by the shareholders of the
Corporation. 

/s/ Christine
Thomson
Corporate Secretary 

	Date approved by the Board of Directors of the Corporation:
    	December 1, 2006

SCHEDULE A 

Energy Metals Corporation
Suite 1238 – 200 Granville
Street, Vancouver, British Columbia, V6C 1S4 

STOCK OPTION CERTIFICATE
(the "Certificate") 

	Date: 	•
	To: 	•

Re: Grant of Stock Option 

This Certificate certifies that Energy Metals
Corporation (the "Corporation") has granted to you an option (the "Option")
to purchase common shares in the capital of the Corporation pursuant to the
Corporation’s Stock Option Plan (the "Plan") established by the Corporation or
any successor plan thereto, as amended from time to time in accordance with its
terms. 

Your Option is subject to the terms and conditions of the Plan
which are deemed to be incorporated in this Certificate, and to the following
specific provisions: 

	Date of Grant: 	•
	 	 
	Type of Grant: 	Stock Option. 
	 	 
	Number of Options: 	•
	 	 
	Option Price: 	$ • per share. 
	 	 
	Term of Option: 	•
	 	 
	Option Vesting Schedule: 	•

THE EXERCISE OF THIS OPTION IS SUBJECT TO THE TERMS AND
RESTRICTIONS SET OUT IN THE STOCK OPTION PLAN. TERMS HAVE THE MEANING AS SET OUT
IN THE STOCK OPTION PLAN. 

Any shares issued to you as a result of the exercise of your
Option will be issued under an exemption from the prospectus requirements of the
British Columbia Securities Act and Rules thereto (the "Act"). The sale
by you of those shares is subject to the resale rules of the Act, which, in
summary, state as at the date hereof that the sale will be exempt from the
requirements to file a prospectus, provided that: 

14

	(a) 	
      if you are an Insider of the Corporation other than a
      director or senior officer of the Corporation, you have filed all records
      required to be filed under Sections 87 (Insider Reports) and 90 (Personal
      Information Form) of the Act;

	 	 
	(b) 	
      if you are a director or senior officer of the
      Corporation, you have filed all records required to be filed under Section
      87 (Insider Reports) and 90 (Personal Information Form) of the Act and the
      Corporation has filed all records required to be filed by Part 12 of the
      Act (Continuous Disclosure);

	 	 
	(c) 	
      the trade is not a distribution from the holdings of a
      control person;

	 	 
	(d) 	
      no unusual effort is made to prepare the market or create
      a demand for the shares; and

	 	 
	(e) 	
      no extraordinary commission or other consideration is
      paid in respect of the trade.

If you are a resident of the United States, you are also
reminded that this Option may not be exercised except pursuant to an effective
registration statement under the United States Securities Act of 1933, as
amended, and all applicable U.S. state securities laws, or pursuant to available
exemptions from such registration requirements. 

You may exercise the Option in whole or in part, form time to
time, by delivering to the Corporation a notice on the form attached as Exhibit
"A" to this Certificate. Such notice must be accompanied by a certified cheque
payable to the Corporation for the full amount of the Option Price for the
Options then being exercised. Upon payment, the Corporation shall issue and
deliver or cause to be issued and delivered to you share certificates in your
name for the number of Options so exercised. 

Energy Metals Corporation 

Per:

___________________________
Authorized Signatory 

This is EXHIBIT "A" to

  a Stock Option Certificate

  granted by Energy Metals Corporation

  to •

	To: 	Energy Metals Corporation 
	  	  
	Re: 	Stock Option Certificate dated •
      granted to the undersigned 
	  	by Energy Metals Corporation (the "Stock
      Option Certificate") 

The undersigned hereby gives notice under the Stock Option
Certificate of exercise of the Option (as defined in the Stock Option
Certificate) with respect to the number of Options (as defined in the Stock
Option Certificate) designated below and encloses a certified cheque in the
designated amount representing payment in full for those shares. 

	Number of Options exercised: 	 	 
	 	 	 
	Option Price: 	 	 
	 	 	 
	Total Purchase Price: 	 	 

Dated this _________day of _________________________,
20______
. 

_________________________________
Signature of Option Holder

_________________________________
Full Name - Please Print 

_________________________________
Residential Address 

_________________________________

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