Document:

exv4w10

 

Exhibit 4.10

THIS OPTION HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
MAY NOT BE TRANSFERRED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OR OTHER COMPLIANCE
UNDER THE ACT OR THE LAWS OF THE APPLICABLE STATE OR A “NO ACTION” OR INTERPRETIVE LETTER FROM THE
SECURITIES AND EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER,
AND ITS COUNSEL, TO THE EFFECT THAT THE SALE OR TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT
AND SUCH STATE STATUTES.

STOCK OPTION AGREEMENT

     White Mountain Titanium Corporation, a Nevada corporation (the “Company”), desiring to afford
an opportunity to Proteus Capital Corp. (the “Grantee”) to purchase certain shares of the Company’s
common stock (the “Common Stock”), to provide the Grantee with an added incentive pursuant to a
consulting agreement to the Company, hereby grants to the Grantee, and the Grantee hereby accepts,
an option to purchase the number of such shares specified below, during the term ending at midnight
(prevailing local time at the Company’s principal offices) on the expiration date of this option
specified below, at the option exercise price specified below, subject to and upon the following
terms and conditions:

     1. Grant of Option. The Company hereby irrevocable grants to Grantee the right and
option to purchase all or any part of an aggregate of 100,000 shares of Common Stock on the terms
and conditions hereof (the “Option”). This Option is not intended to be and shall not be treated
as an incentive stock option under Section 422 of the Internal Revenue Code.

     2. Exercise Price. The exercise price of this Option shall be $2.00 per share.

     3. Expiration Date. Except otherwise provided herein, any unexercised options granted
pursuant to this Option shall expire on August 13, 2009.

     4. Termination Provisions. The right to exercise this Option is subject to the
following additional restrictions and limitations:

          Death of Grantee. If the Grantee shall die while this Option remains exercisable, the
Grantee’s legal representative or representatives or the persons entitled to do so under the
Grantee’s last will and testament or under applicable intestate laws shall have the right to
exercise this Option, provided that such right shall expire and this Option shall terminate one
year after the date of Grantee’s death or on the expiration of this Option, whichever date is
earlier. In all other respects, this Option shall terminate upon such death.

 

     5. Method of Exercise. This Option may be exercised by delivery of a notice of
exercise, a form of which is attached hereto as Exhibit “A” and incorporated herein by this
reference, setting forth the number of Options to be exercised together with a certified check or
bank check payable to the order of the Company in the amount of the full exercise price of the
Common Stock being purchased.

          As soon as practicable after receipt by the Company of such notice, a certificate or
certificates representing such shares of Common Stock shall be issued in the name of the Grantee,
or, if the Grantee shall so request in the notice exercising the Option, in the name of the Grantee
and another person jointly, with right of survivorship, and shall be delivered to the Grantee. If
this Option is not exercised with respect to all Common Stock subject hereto, Grantee shall be
entitled to receive a similar Option of like tenor covering the number of shares of Common Stock
with respect to which this Option shall not have been exercised.

     6. Shareholder’s Rights. The Grantee shall have the rights of a shareholder only with
respect to Common Stock fully paid for by Grantee under this Option.

     7. Transferability. During Grantee’s lifetime this Option may not be transferred, in
whole or in part, except upon the prior written consent of the Company.

     8. Registration Rights

     The Grantee shall have the following “piggy-back” registration rights:

          (a) Whenever the Company shall propose to file a new registration statement under the
Securities Act on a form which permits the inclusion of the shares underlying the options for
resale (the “Registration Statement”), it will give written notice to Grantee at least fifteen (15)
business days prior to the anticipated filing thereof, specifying the approximate date on which the
Company proposes to file the Registration Statement and the intended method of distribution in
connection therewith, and advising the Grantee of its right to have any or all of the shares then
held included among the securities to be covered by such registration statement (the “Piggy-Back
Rights”).

          (b) Subject to Section (d) and Section (e) hereof, in the event that the Grantee has and shall
elect to utilize the Piggy-Back Rights, the Company shall include in the Registration Statement the
number of the shares identified by the Grantee in a written request (the “Piggy-Back Request”)
given to the Company not later than ten (10) Business Days prior to the proposed filing date of the
Registration Statement. The shares identified in the Piggy-Back Request shall be included in the
Registration Statement on the same terms and conditions as the other shares of Common Stock
included in the Registration Statement.

          (c) Notwithstanding anything in this Term Sheet to the contrary, the Grantee shall not have
Piggy-Back Rights with respect to (i) a registration statement on Form S-4 or Form S-8 or Form S-3
(with respect to dividend reinvestment plans and similar plans) or any successor

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forms thereto, (ii) a registration statement filed in connection with an exchange offer or an
offering of securities solely to existing stockholders or employees of the Company, (iii) a
registration statement filed in connection with an offering by the Company of securities
convertible into or exchangeable for Common Stock, and (iv) a registration statement filed in
connection with private placement of securities of the Company (whether for cash or in connection
with an acquisition by the Company or one of its subsidiaries).

          (d) If the lead managing underwriter selected by the Company for an underwritten offering for
which Piggy-Back Rights are requested determines that marketing or other factors require a
limitation on the number of shares of common stock to be offered and sold in such offering, then
(i) such underwriter shall provide written notice thereof to each of the Company and the
shareholders, and (ii) there shall be included in the offering, first, all shares of Common Stock
proposed by the Company to be sold for its account (or such lesser amount as shall equal the
maximum number determined by the lead managing underwriter as aforesaid) and, second, only that
number of shares requested to be included in the Registration Statement by the Grantee that such
lead managing underwriter reasonably and in good faith believes will not substantially interfere
with (including, without limitation, adversely affect the pricing of) the offering of all the
shares of common stock that the Company desires to sell for its own account.

          (e) Nothing contained in this Option Agreement shall create any liability on the part of the
Company to the Grantee if the Company for any reason should decide not to file a Registration
Statement for which Piggy-Back Rights are available or to withdraw such Registration Statement
subsequent to its filing, regardless of any action whatsoever that the Grantee may have taken,
whether as a result of the issuance by the Company of any notice hereunder or otherwise.

          (f) As a condition to providing Piggy-Back Rights, the Company may require Grantee to furnish
to the Company in writing such information regarding the proposed distribution by such Grantee as
the Company may from time to time reasonably request.

          (g) Except as set forth below, the Company shall bear all expenses of the Registration
Statement. Grantee will be responsible for payment of its own legal fees (if the Grantee retains
legal counsel separate from that of the Company), underwriting fees and brokerage discounts,
commissions and other sales expenses incident to any registration of the shares to be sold by the
Grantee.

          (h) The Company will keep the Registration Statement effective at least until the earlier of:
(i) such time as all of the shares included in the Registration Statement have been disposed of
pursuant to and in accordance with the Registration Statement; (ii) such time as all of the shares
included in the Registration Statement may be sold to the public without registration or
restriction pursuant to Rule 144 of the Securities Act; or (iii) August 13, 2009.

     9. Adjustment to Number of Shares of Common Stock. In the event that the number of
shares of Common Stock of the Company from time to time issued and outstanding is

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increased pursuant to a stock split or a stock dividend, the number of shares of Common Stock then
covered by this Option shall be increased proportionately, with no increase in the total purchase
price of the shares then so covered. In the event that the number of shares of Common Stock of the
Company from time to time issued and outstanding is reduced by a combination or consolidation of
shares, the number of shares of Common Stock then covered by this Option shall be reduced
proportionately, with no reduction in the total purchase price of the shares then so covered. In
the event that the Company should transfer assets to another corporation and distribute the stock
of such other corporation without the surrender of Common Stock of the Company, and if such
distribution is not taxable as a dividend and no gain or loss is recognized by reason of section
355 of the Internal Revenue Code, or any amendment or successor statute of like tenor, then the
total purchase price of the Common Stock then covered by each outstanding Option shall be reduced
by an amount that bears the same ratio to the total purchase price then in effect as the market
value of the stock distributed in respect of a share of the Common Stock of the Company,
immediately following the distribution, bears to the aggregate of the market value at such time of
a share of the Common Stock of the Company plus the stock distributed in respect thereof. In the
event that the Company distributes the stock of a subsidiary to its shareholders, makes a
distribution of a major portion of its assets, or otherwise distributes significant portion of the
value of its issued and outstanding Common Stock to its shareholders, the number of shares then
subject to this Option, or the exercise price of this Option, may be adjusted in the reasonable
discretion of the Board or a duly authorized committee. All such adjustments shall be made by the
Board or duly authorized committee, whose determination upon the same, absent demonstrable error,
shall be final and binding. No fractional shares shall be issued, and any fractional shares
resulting from the computations pursuant to this section shall be eliminated from this Option. No
adjustment shall be made for cash dividends, for the issuance of additional shares of Common Stock
for consideration approved by the Board, or for the issuance to stockholders of rights to subscribe
for additional Common Stock or other securities.

     10. Withholding. If the exercise of this Option is subject to withholding of federal,
state, local, or foreign taxes, such requirements may, at the discretion of the Board or a duly
authorized committee, and to the extent permitted by the then governing provisions of law, be met
(i) by the holder of this Option either delivering shares of Common Stock or canceling Options with
a fair market value equal to such requirements, such fair market value to be determined by the
Board; (ii) by the Company withholding shares of Common Stock subject to this Option with a fair
market value equal to such requirements, such fair market value to be determined by the Board;
(iii) by the Grantee delivering with the Form of Exercise funds equal to the amount of such taxes;
or (iv) by the Company making such withholding payments and the Grantee reimbursing the Company
such amount paid within 10 days after written demand therefor from the Company. In no event,
however, shall the Company be permitted to require payment from the Grantee in excess of the
maximum required tax withholding rates.

     11. Availability of Shares. During the term of this Option, the Company shall at all
times reserve for issuance the number of shares of Common Stock subject to this Option.

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     12. Requirements of Law. By accepting this Option, the Grantee represents and agrees
for himself and his transferees that, unless a registration statement under the Securities Act of
1933 is in effect as to shares purchased upon any exercise of this Option, (a) any and all shares
so purchased shall be acquired for his personal account and not with a view to or for sale in
connection with any distribution, and (b) each notice of the exercise of any portion of this Option
shall be accompanied by a representation and warranty in writing, signed by the person entitled to
exercise the same, that the shares are being so acquired in good faith for his personal account and
not with a view to or for sale in connection with any distribution. No certificate or certificates
for shares of stock purchased upon exercise of this Option shall be issued and delivered unless and
until, in the opinion of legal counsel for the Company, such securities may be issued and delivered
without causing the Company to be in violation of or incur any liability under any federal, state,
or other securities law or any other requirement of law or of any regulatory body having
jurisdiction over the Company. The Grantee, for himself and his transferees, agrees to provide
information reasonably requested by the Company in order to satisfy the requirements of any
exemption from the registration provisions of federal or state securities laws.

     13. No Right of Employment. Nothing contained in this Option shall be construed as
conferring on the Grantee any right to continue or remain as a consultant of the Company or its
subsidiaries.

     14. Miscellaneous

          a. Notices. All communications provided for herein shall be in writing and shall be
deemed to be given or made when served personally or when deposited in the United States mail,
certified return receipt requested, addressed as follows, or at such other address as shall be
designated by any party hereto in written notice to the other party hereto delivered pursuant to
this subsection:

	 	 	 	 	 
	 

	 	Grantee:
	 	At the address set forth on the signature page.
	 
	 	 	 	 
	 

	 	Company:
	 	Brian Flower, Secretary
	 

	 	 	 	1188 West Georgia Street
	 

	 	 	 	Suite 2150
	 

	 	 	 	Vancouver, BC
	 

	 	 	 	V6E 4A2
	 
	 	 	 	 
	 

	 	with copy to:
	 	Ronald N. Vance
	 

	 	 	 	Attorney at Law
	 

	 	 	 	57 West 200 South
	 

	 	 	 	Suite 310
	 

	 	 	 	Salt Lake City, UT 84101

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          b. Default. Should any party to this Agreement default in any of the covenants,
conditions, or promises contained herein, the defaulting party shall pay all costs and expenses,
including a reasonable attorney’s fee, which may arise or accrue from enforcing this Agreement, or
in pursuing any remedy provided hereunder or by statute.

          c. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto, their heirs, executors, administrators, successors and assigns.

          d. Partial Invalidity. If any term, covenant, condition, or provision of this
Agreement or the application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, the remainder of this Agreement or application of such term or provision to
persons or circumstances other than those as to which it is held to be invalid or unenforceable
shall not be affected thereby and each term, covenant, condition, or provision of this Agreement
shall be valid and shall be enforceable to the fullest extent permitted by law.

          e. Entire Agreement. This Agreement constitutes the entire understanding between the
parties hereto with respect to the subject matter hereof and supersedes all negotiations,
representations, prior discussions, and preliminary agreements between the parties hereto relating
to the subject matter of this Agreement.

          f. Interpretation of Agreement. This Agreement shall be interpreted and construed as
if equally drafted by all parties hereto.

          g. Survival of Covenants, Etc. All covenants, representations, and warranties made
herein to any party, or in any statement or document delivered to any party hereto, shall survive
the making of this Agreement and shall remain in full force and effect until the obligations of
such party hereunder have been fully satisfied.

          h. Further Action. The parties hereto agree to execute and deliver such additional
documents and to take such other and further action as may be required to carry out fully the
transactions contemplated herein.

          i. Amendment. This Agreement or any provision hereof may not be changed, waived,
terminated, or discharged except by means of a written supplemental instrument signed by the party
or parties against whom enforcement of the change, waiver, termination, or discharge is sought.

          j. Full Knowledge. By their signatures, the parties acknowledge that they have
carefully read and fully understand the terms and conditions of this Agreement, that each party has
had the benefit of counsel, or has been advised to obtain counsel, and that each party has freely
agreed to be bound by the terms and conditions of this Agreement.

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          k. Headings. The descriptive headings of the various sections or parts of this
Agreement are for convenience only and shall not affect the meaning or construction of any of the
provisions hereof.

          l. Counterparts. This Agreement may be executed in two or more partially or fully
executed counterparts, each of which shall be deemed an original and shall bind the signatory, but
all of which together shall constitute but one and the same instrument.

          m. Governing Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of New Mexico without regard to conflict of law principles
and will be binding upon and shall inure to the benefit of the parties hereto and their successors
and assigns. Any action to enforce the provision of this Agreement shall be brought in a court of
competent jurisdiction in Bernalillo County, State of New Mexico, and no other place.

     IN
WITNESS WHEREOF, the parties hereto have executed this document this
29th day of October
2005, to be effective August 13, 2004.

	 	 	 	 	 	 	 
	Company:	 	White Mountain Titanium Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ BRIAN FLOWER	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Brian Flower, Secretary	 	 
	 
	 	 	 	 	 	 
	Grantee:

	 	 	 	Proteus Capital Corp.	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ DOUGLAS NEWBY	 	 
	 	 	 	 	 
	 	 	Douglas Newby, President	 	 
	 
	 	 	 	 	 	 
	 
	 	P.O. Box 3230 Sag Harbor	 	 
	 	 	 	 	 
	 	 	Address	 	 
	 
	 	 	 	 	 	 
	 
	 	New York, NY 11963	 	 
	 	 	 	 	 

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EXHIBIT “A”

FORM OF EXERCISE

(To be signed only upon exercise of Option)

To: White Mountain Titanium Corporation (the “Company”)

     The undersigned, the owner of the attached Option, hereby irrevocable elects to exercise the
purchase rights represented by the Option for, and to purchase thereunder, ___
shares of Common Stock of the Company.

     1. Payment. Enclosed is payment of the exercise price of the Common Stock to be
acquired in the following form of payment:

          a. A certified check or bank check in the amount of $___;

     2. Certificate Information. Please have the certificate(s) registered in the name of
___and delivered to ___. If this exercise
does not include all of the Common Stock covered by the attached Option, please deliver a new
Option of like tenor for the balance of the Common Stock to the undersigned at the foregoing
address.

     3. Restricted Securities. The shares of Common Stock issued pursuant to this exercise have
not been registered under the Securities Act and are being issued to the undersigned in reliance
upon the exemption from such registration as noted below. The undersigned hereby confirms that he
has been informed that the shares are restricted securities under the Securities Act and may not be
resold or transferred unless they are first registered under the Federal securities laws or unless
an exemption from such registration is available. Accordingly, the undersigned acknowledges that
he is prepared to hold the shares for an indefinite period

     4. Restrictions on Disposition of Shares. The undersigned shall make no disposition
of the shares unless and until the undersigned shall have:

          (a) provided the Company with a written summary of the terms and conditions of the proposed
disposition.

          (b) complied with all requirements of this Agreement applicable to the disposition of the
shares.

          (c) provided the Company with written assurances, in form and substance satisfactory to the
Company, that (i) the proposed disposition does not require registration of the shares under the
Securities Act, or (ii) all appropriate action necessary for compliance with the registration
requirements of the Securities Act or any exemption from registration available under the
Securities Act (including Rule 144) has been taken.

 

     The Company shall not be required (i) to transfer on its books any shares which have
been sold or transferred in violation of the provisions of this Agreement, or, (ii) to
treat as the owner of the shares, or otherwise to accord voting, dividend or liquidation rights to,
any transferee to whom the shares have been transferred in contravention of this Agreement.

     5. The stock certificates for the shares shall be endorsed with restrictive legends
substantially similar to the following:

	 	 	THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED, OR
HYPOTHECATED UNLESS OR UNTIL REGISTERED UNDER THE SECURITIES ACT OR, IN THE OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THE SECURITIES SUCH OFFER, SALE,
TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.
	 
	 	 	DATED this ___day of ___200___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature of Grantee	 	 

9exv10w1

 

Exhibit 10.1

Transfer of Contract and Mortgage Credit

Compañía Contractual Minera Ojos del Salado

And

Minera Royal Silver Limitada

In Santiago, Chile, on September 5, 2003, before me, Maria Gloria Acharan Toledo, Chilean,
attorney, ID 5.575.365-2, 22nd Notary Public of Santiago, with offices at Matias
Cousino154, there appear: Compañía Contractual Minera Ojos del Salado, Tax ID 96.635170-5, duly
represented by Mr. Jorge Riquelme Bravo, Chilean, married, businessman, ID 4.318.424-5, both
domiciled at Avda. Apoquindo 4499, 4th Floor, Las Condes, Santiago, hereinafter also,
the “transferor” or “CCMO”, and Minera Royal Silver Limitada, tax ID 77.300.410-8, duly represented
by Cesar Andres Lopez, Chilean, married, attorney, ID 9.581.126-4 all domiciled for these purposes
at Enrique Foster Sur 20, 19th Floor, Las Condes, Santiago, hereinafter also the
“transferee”; all appearing are of legal age, and have evidenced their identities and state:

First: Background Information. One) By public deed dated march 17, 2000, a purchase sale
contract was signed before the Santiago Notary Public, Antonieta Mendoza, between CCMO and Dorado
Mineral Resources NL, both duly represented, whereby the former sold, ceded and transferred to the
latter the following mining concessions located in the sector of Freirina, Province of Huasco,
Third Region of Atacama: a) Carol Dos Uno Uno to Carol Dos Dos Sesenta, whose survey minutes and
final award are registered on page 200 number 46, of the Property Registry of the Register of Mines
of Freirina, for the year 1997, and registered in the name of the purchaser on page 3 number 2 of
the Property Registry of the Register of Mines of Freirina; b) Carol Dos Dos Uno to Carol Dos Uno
Sesenta, whose survey minutes and final award are registered on page 207 number 47, of the Property
Registry of the Register of Mines of Freirina, for the year 1997, and registered in the name of the
purchaser on page 5 number 3 of the Property Registry of the Register of Mines of Freirina; c)
Carol Dos Seis Uno to Carol Dos Seis Sesenta, whose survey minutes and final award are registered
on page 222 number 49, of the Property Registry of the Register of Mines of Freirina, for the year
1997, and registered in the name of the purchaser on page 7 number 4 of the Property Registry of
the Register of Mines of Freirina; d) Carol Dos Tres Uno to Carol Dos Tres Sesenta, whose survey
minutes and final award are registered on page 214 number 48, of the Property Registry of the
Register of Mines of Freirina, for the year 1997, and registered in the name of the purchaser on
page 9 number 5 of the Property Registry of the Register of Mines of Freirina; e) Carolina Seis Uno
to Carolina Seis Treinta, whose survey minutes and final award are registered on page 164 number
44, of the Property Registry of the Register of Mines of Freirina, for the year 1996, and
registered in the name of the purchaser on page 13 number 7 of the Property Registry of the
Register of Mines of Freirina; f) Carolina Tres Once to Carolina Tres Treinta, whose survey minutes
and final award are registered on page 157 number 43, of the Property Registry of the Register of
Mines of Freirina, for the year 1996, and registered in the name of the purchaser on page 11 number
6 of the Property Registry of the Register of Mines of Freirina; g) Carolina Dos Once to Carolina
Dos Treinta, whose survey minutes and final award are registered on page 151 number 42, of the

 

 

Property Registry of the Register of Mines of Freirina, for the year 1996, and registered in the
name of the purchaser on page 15 number 8 of the Property Registry of the Register of Mines of
Freirina; h) Carolina Uno Once to Carolina Uno Treinta, whose survey minutes and final award are
registered on page 145 number 41, of the Property Registry of the Register of Mines of Freirina,
for the year 1996, and registered in the name of the purchaser on page 17 number 9 of the Property
Registry of the Register of Mines of Freirina, and; i) Enrique Uno al Treinta, whose survey minutes
and final award are registered on page 50 number 6, of the Property Registry of the Register of
Mines of Freirina, for the year 1994, and registered in the name of the purchaser on page 1 number
1 of the Property Registry of the Register of Mines of Freirina; Two) The price of said
purchase/sale contract was the amount of US$1,000,000, which were to be paid in the following
manner: a) US$50,000 upon signing the purchase/sale contract; b) US$100,000 on March 14, 2001; c)
US$200,000 on March 14, 2002; d) US$650,000 on March 14, 2003. The payments of the amounts
indicated in letters b) to d) should be paid in Chilean pesos in the offices of the CCMO, based on
the exchange rate at the time of payment, in accordance with number 6 of Title One of Chapter One
of the Compendium of Norms for International Exchange issued by the Central Bank of Chile. In the
event of a delay in payment of any of the indicated amounts, then the maximum interest allowed by
law would be applied. Three) In order to guarantee compliance with all of their payment
obligations, Dorado Mineral Resources NL established a first grade mortgage in favor of CCMO, and a
prohibition to encumber and/or enter into acts or contracts, without the prior written consent of
CCMO with regard to the mining concessions detailed in the First Clause of the purchase/sale
contract signed between the parties. However, Dorado Mineral Resources NL, was expressly
authorized to sell, cede or transfer the mining concessions or to dispose of all or part of them,
as long as they complied with the following cumulative requirements: a) that the concessionaire of
said rights were a company related to Dorado Mineral Resources NL, or in which it has an ownership
interest, and b) that in the contact that would serve as acquisition title, the concessionaire
would state: i) its consent regarding the purchase/sale contract signed on March 17, 2000; ii) its
promise to comply with each and every of the contractual obligations of Dorado Mineral Resources NL
in that contract in the same terms and conditions set forth therein; iii) that any subsequent sale,
transfer or other disposal of all or part of said terms and rights, would also be subject to the
same restrictions, which must be stated in a clause to that effect. If the above is complied with,
then Dorado Mineral Resources NL would be free of any obligation regarding the rights sold or
transferred, unless the concessionaire were to fail to comply with the obligations, in which case,
Dorado Mineral Resources NL, would continue to be wholly responsible for the obligations towards
CCMO. The mortgage referred to above was registered on page 4 number 2 of the Mortgage Registry of
the Registrar of Mines of Freirina, for the year 2000. Four) By public deed dated November 3,
2000, signed before the Santiago Notary Public, Fernando Alzate, alternate of Antonieta Mendoza,
Dorado Mineral Resources NL sold and transferred to KINRADE HOLDINGS LIMITED, the mining
concessions described in number One) of this clause. Five) By public deed dated October 3, 2001,
before the Santiago Notary Public Ivan Torrealba, CCMO, Dorado Mineral Resources NL and Comrade
Holdings Limited: a) Modified the fourth clause of the purchase/sale contract which is recounted
in number One) of this clause, adding that as long as there remains an unpaid balance, then CCMO
must grant its consent in writing for any sale or transfer of the mining concessions; b) they
stated that Dorado Mineral Resources NL would continue to be ultimately liable for the payments
should Kinrade Holdings Limited fail to meet its obligations to CCMO; c) Kinrade Holdings Limited
stated it knew and accepted the

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modifications make, and promised to comply. Also, it promised to include the terms of the
modification per clause four of the purchase/sale contract; d) CCMO authorized and expressly
accepted the sale and transfer of the mining concessions from Dorado Mineral Resources NL to
Kinrade Holdings Limited. Six) By virtue of that expressed above, the titles to the properties in
the name of Kinrade Holdings Limited are registered with the Property Registry of the Registrar of
Mines of Freirina; a) Carol Dos Uno Uno to Carol Dos Dos Sesenta, registered on page 79 number 25,
for the year 2000; b) Carol Dos Dos Uno to Carol Dos Uno Sesenta, registered on page 80 number 32,
for the year 2000; c) Carol Dos Seis Uno to Carol Dos Seis Sesenta, registered on page 81 number
27, for the year 2000; d) Carol Dos Tres Uno to Carol Dos Tres Sesenta, registered on page 86
number 32, for the year 2000; e) Carolina Seis Uno to Carolina Seis Treinta, registered on page 82
number 28, for the year 2000; f) Carolina Tres Once to Carolina Tres Treinta, registered on page 83
number 29, for the year 2000; g) Carolina Dos Once to Carolina Dos Treinta, registered on page 84
number 30, for the year 2000; h) Carolina Uno Once to Carolina Uno Treinta, whose registered on
page 87 number 33, for the year 2000, and; i) Enrique Uno al Treinta, registered on page 85 number
31, for the year 2000. Furthermore, the existing mortgage and prohibition described in number
Three) of this clause are current.

Second. As of today’s date, the company Dorado Mineral Resources NL owes CCMO the amount
of US$650,000, plus interest and fines given the failure to comply with the payment of the last
installment of the balance of the price which came due on March 14, 2003. Kinrade Holdings Limited
is also responsible for this debt, which acquired the concessions and assumed all of the
obligations of Dorado Mineral Resources NL, all of which were guaranteed by a first degree mortgage
and prohibition as described in the preceding clause.

Third. By this act and instrument, CCMO sells and transfers to Minera Royal Silver
Limitada, which is hereby accepted and purchased by its representative: One) The purchase/sale
contract, ,mortgage and prohibitions in a public deed signed March 17, 2000, before the Notary
Antonieta Mendoza between CCMO and Dorado Mineral Resources NL, repertory number 13,346, and of the
purchase/sale contract signed on November 3, 2000 before the Santiago Notary of Frenando Alzate
between Dorado Mineral Resources NL and Kinrade Holdings Limited, repertory number 6,168 and of the
modification, declaration, and ratification in a public deed signed October 3, 2001 before the
Santiago Notary Ivan Torrealba, between CCMO, Dorado Mineral Resources NL and Kinrade Holdings
Limited, repertory number 12,831. Two) The mortgage described in number Three) of the First Clause
of this instrument, which is contained in the public deed dated March 17, 2000, signed before the
Notary Antonieta Mendoza, repertory number 13,346 and its appendices and the mortgage action, as
well as the personnel.

Fourth. The price of this transfer is the amount of US$650,000, in its equivalent in
national currency as of the effective date of payment, which Minera Royal Silver Limitada, through
this contract, pays and shall pay to CCMO, who receives and accepts through its representative, in
the following manner: a) US$50,000 within 30 days of the date of this public deed,
notwithstanding that set forth in the Tenth Clause of this contract; b) US$50,000 in Chilean pesos
on March 5, 2004; c) US$50,000 in Chilean pesos on September 5, 2004; d) US$500,000 in Chilean
pesos on September 4, 2005. The price shall be paid based on the exchange rate at the time of
payment, in accordance with number 6 of Title One of Chapter One of the Compendium of Norms for
International Exchange issued by the Central Bank of Chile. Payment of the

3

 

installments shall be made through the office of the Santiago Notary, Mario Farren, or his
replacement, located at Avenida 11 de Septiembre, number 2655, Providencia, Santiago. The payment
of each of the installments shall be made using a sight draft in the name of CCMO. The payment
obligation shall be deemed met once the Notary receives the sight draft with the conditions set
forth above, and will deliver the sight draft to CCMO once they sign the corresponding deed of
receipt. The notary fees shall be paid by the concessionaire.

Fifth. The parties expressly state that the transfer of the purchase/sale contract and
mortgage and further rights referred to in the Second Clause is made on the condition that the
transferee will be obligated to request the resolution of the contract and not its compliance. If
for any reason the transferee does not become awarded the mining concessions, but are awarded to a
third party as a result of the execution of the mortgage, or should it decide to accept the
compliance by the debtor, it shall be understood that the term for paying the price in this
transfer contract has expired, and is immediately payable to CCMO. The price then payable
corresponds to the balance owed by the transferee at the time in which the above event was to
occur. Minera Royal Silver Limitada must pay CCMO within three days of receiving payment from the
debtor or the awardee of the mining concessions referred to in this contract. Once Minera Royal
Silver Limitada has paid CCMO, the latter must reimburse Minera Royal Silver Limitada all of the
reasonable costs and expenses in which it has incurred with regard to the execution of the mortgage
guarantee. Said expenses and costs must be accredited through a detailed expense report, backed up
with proper and true documentation.

Sixth. Those appearing in this act agree that the previous condition will have been met
once the mining concessions described in number One) of the First Clause of this deed are
transferred to Minera Royal Silver Limitada or to its successors, transferees, related companies,
be this the result of the exercise of the resolution action or mortgage guarantee action which
results in the transfer of the concessions.

Seventh. Should Minera Royal Silver Limitada, once the mining concessions are transferred
to it, not comply with its payment obligations of any of the installments stipulated in the Fourth
Clause of this contract, this shall be immediately obligated to transfer the mining concessions to
CCMO. In this case, the price of the transfer shall be equal to that amount that Minera Royal
Silver Limitada would owe, whereby the parties would have a zero debt at the time of the transfer.
For this purpose CCMO shall, within 30 days, sign a purchase/sale contract whereby the mining
concessions described in the first clause will be transferred to CCMO. This purchase/sale contract
shall be signed before the Santiago Notary Mr. Mario Farren, or his replacement. For these
purposes the concessionaire grants special power of attorney to Cesar Lopez, or in his absence, to
Ivan Doren, or in his absence, Miguel Troncoso, to grant and sign the purchase/sale contract on
behalf of the concessionaire and to request the pertinent registrations with the competent
Registrar of Mines. The contract will evidence that event which has occurred, per this clause,
obligating the concessionaire to transfer the mining concessions to CCMO. All costs related to the
above transaction shall be paid by the concessionaire.

Eighth. In this act, CCMO delivers the titles wherein the contracts and mortgages are
transferred, with an annotation of the transfer to Minera Royal Silver Limitada, who states to have
received these. Consequently, the concessionaire takes the legal position of the seller and

4

 

mortgage creditor in said contracts, in the same conditions and with the same rights and
obligations as those agreed upon in the contracts described in number One of the Third Clause of
this deed, without requiring the signing of a new contract.

Ninth. If for any reason this transfer is deemed imperfect, by this instrument, CCMO, duly
represented, confers a special and irrevocable power of attorney to Minera Royal Silver Limitada,
who accepts through its representative, to collect and receive directly from the companies Dorado
Mineral Resources NL and/or Kinrade Holdings Limited, what these should pay CCMO for the
transferred loan, thereby empowering Minera Royal Silver Limitada to withdraw, charge and collect
the documents extended in favor of CCMO, charge and collect their value and grant receipts and
cancellations for the same, and likewise to sign any other document that may be required for the
true compliance with the mandate conferred upon them in this clause. However, in such an event,
Minera Royal Silver Limitada shall proceed to pay CCMO the price of the transfer in the terms
indicated in the Fifth Clause of this contract. This special power of attorney includes the
collection through the courts of the debt owed, CCMO hereby granting to Minera Royal Silver
Limitada a “judicial” special power of attorney with all of the faculties enumerated in both
paragraphs of article 7 of the Civil Procedures Code, which are deemed repeated here for these
purposes, and may delegate these powers to a third party at its discretion. Furthermore, Minera
Royal Silver Limitada may request the pertinent indemnities and the resolution of the contract in
its name in order to obtain transfer of title to the mining concessions to its name.

Tenth. Those appearing in this act agree that the concessionaire shall have a term of 30
days within which to make the first payment of the price agreed upon in the Fourth Clause of this
contract, during which time, a due diligence title study may be performed regarding the purchases
made herein. Should Minera Royal Silver Limitada decide not to continue with the contract at the
end of this term, it shall be resolved ipso facto without payment of any amounts to CCMO.

Eleventh. Once Minera Royal Silver Limitada becomes owner of the mining concessions
described in the First Clause through their registration of the same in its name with the competent
Registrar of Mines, it is expressly obligated to maintain them current, to pay the annual license
fees for the mining concessions described in the First Clause, as well as protect them from
overlapping or other attempts by third parties until all of its payment obligations to CCMO are
met. Furthermore, Minera Royal Silver Limitada shall hold CCMO not liable for any damages to third
parties of any nature including liability for environmental damage.

Twelfth. Costs relating to this contract, as well as the corresponding registrations,
shall be the responsibility of Minera Royal Silver Limitada.

Thirteenth. This contract will be governed by Chilean law, as will any subsequent
modifications and complements.

Fourteenth. Communications between the parties shall be made in writing, via certified
letter, telex, telefax, or telegrams, addressed to the addresses that the parties indicated in the
preamble or any other communicated with advance notice: if to CCMO by fax, 56-2873-1209; the

5

 

concessionaire 334-8757, both in Santiago. This Contract contains the entire agreement of the
parties and substitutes any other previous agreement or negotiations.

Fifteenth. The bearer of an authorized copy of this Contract is empowered to request the
registrations and annotations which are required with the respective Registers. Furthermore, Cesar
Lopez and Ivan Doren and/or Miguel Troncoso are empowered to correct any errors that may be
contained in this Contract.

Sixteenth. For the purposes of this Contract, the parties set their domicile in the city
of Santiago and delegate jurisdiction to the Courts of Santiago. The powers to represent the
parties have been duly noted, but are not inserted as they are known to the parties and at their
request. After reading the Contract, the parties appearing sign. This public deed is noted in my
Repertory of Public Instruments on this date, I attest.

Signed,

Jorge Riquelme Bravo for CCMO

Cesar Lopez for Minera Royal Silver Limitada

NOTE:

The following payments were made in the following manner:

	 	1.	 	Oct. 7, 2003: Minera Royal Silver Limitada paid US$50,000 to CCMO recorded in a public
deed before the Santiago Notary Mario Farren, Repertory number 3918.
	 
	 	2.	 	Mar. 1, 2004: Minera Rutile Resources Chile Limitada, formerly Minera Royal Silver
Limitada, paid US$50,000 to CCMO recorded in a public deed before the Santiago Notary Maria
Gloria Acharan, Repertory number 4735.
	 
	 	3.	 	Aug. 26, 2004: Minera Rutile Resources Chile Limitada, formerly Minera Royal Silver
Limitada, paid US$50,000 to CCMO recorded in a public deed before the Santiago Notary Maria
Gloria Acharan, Repertory number 19.838.

6

 

AMENDMENT FOR EXTENSION OF PAYMENT DATE

     This
Amendment, entered into this 2nd day of September 2005, is by
and between Compañia
Minera Rutile Resources Limitada (the “Subsidiary”), a company formed under the laws of Chile and a
subsidiary of White Mountain Titanium Corporation (“WMTC”), and Compania Contractual Minera Ojos
del Salado, a company formed under the laws of the Chile (“CCMO”).

RECITALS:

     A. On or about September 5, 2003, the Subsidiary (formally known as Minera Royal Silver
Limitada) and CCMO entered into a Transfer of Contract and Mortgage Credit agreement for the
purchase by the Subsidiary of certain mining concessions located in Chile for which CCMO held a
mortgage (the “Original Agreement”).

     B. Pursuant to the Original Agreement, CCMO sold and transferred its mortgage right to the
mining concessions to the Subsidiary.

     C. Subject to the terms of the Original Agreement, the Subsidiary was obligated to pay
US$650,000 to CCMO for its transfer of the mortgage to the Subsidiary, payable US$50,000 within
thirty days of the Original Agreement, US$50,000 on March 5, 2004, and US$50,000 on September 5,
2004, and is obligated to pay US$500,000 on September 4, 2005.

     D. The Subsidiary has timely made each of the payments required to be made pursuant to the
Original Agreement, with only the remaining payment of US$500,000 to be made to CCMO on September
4, 2005.

     E. The Subsidiary has offered, and CCMO has agreed to accept, 625,000 shares of Series A
Convertible Preferred Stock and Warrants to purchase 625,000 shares common stock of WMTC under the
same terms and conditions as provided in the Stock Purchase Agreement dated July 11, 2005, between
WMTC and Rubicon Master Fund, as consideration for the final payment, subject to the completion of
the documents necessary to evidence such transaction.

     Now, Therefore, the parties hereto agree to amend the Original Agreement as follows to permit
counsel for the parties sufficient time to complete the preparation of documents for the proposed
transaction:

     1. Paragraph Fourth of the Original Agreement is amended to provide that the due date for the
final payment of $500,000 due on September 4, 2005, is hereby extended to September 9, 2005.

     2. This amendment may be executed in counterparts.

     In Witness Whereof the parties have executed this amendment the day and year first above
written.

	 	 	 	 	 
	 	 	Compañia Minera Rutile Resources Limitada
	 
	 	 	 	 
	 

	 	By
	 	/s/ Cesar Lopez Alarcón
	 

	 	 	 	 
	 

	 	 	 	Its
Legal Representative

	 
	 	 	 	 
	 	 	Compañia Contractual Minera Ojos del Salado
	 
	 	 	 	 
	 

	 	By
	 	/s/ Richard Leveille
	 

	 	 	 	 
	 

	 	 	 	Its
President, Exploration

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